REGISTERED COMPANY NUMBER: SC279698 (Scotland)

REGISTERED CHARITY NUMBER: SC024123

THE INVERCLYDE TRUST

(A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28TH FEBRUARY 2025

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

13

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 28th February 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

This report of the trustees meets the requirement for a directors' report as required by company law

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objects of the trust are to relieve poverty, distress or suffering in any part of the world, to promote the extension of religious belief and to promote any charitable purpose for the benefit of the community of Great Britain, the developing world or the environment. This is undertaken by granting substantially all of the annual income generated from a portfolio of long term equities, though making donations out of capital has been the practice in recent years.The Trustees concluded that the approach as set out in the Memos and Articles of the Trust remained applicable.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

All the grants made during the year continue to be focused on the objects of the Trust, with the continued intention of providing some donees with long term multiyear support. These tend to be the largest recipients of support from the Trust. Notable amongst these are, as in recent years, Glasgow City Mission, AYDAP (school project in Liberia), Operation Mobilisation (street children project in Zambia).

In the year the Trust distributed a record amount, with two of the largest grants ever made by the trust, both though to entities that the Trust has been long term supporters of. One to Glasgow City Mission, to assist it in developing a drug rehabilitation operation. The other to Tearfund to help it respond to a number of crises around the world, including Gaza and Sudan, as a member of the Disaster Emergency Committee. Amongst the large grants was one to 1a Productions, for them to do a follow up film on the groundbreaking Neuro Electric Treatment for drug withdrawal. This has also been a project that the Trust has supported over many years, with finally it securing FDA approval in the USA for clinical use in 2024.

Grants significantly exceeded the income generated by the portfolio during the year, and the trustees considered that the grants made during the year all were in line with the Trust's objects.

Investment performance

The overall portfolio produced increased income of £97,680 in the trust's 2025 financial year, compared to £89,391 in 2024. This was possible by taking advantage of high interest rates, which competed with the equities in funds and companies, thus pushing their yields up. This is not a trend that will continue as interest rates have fallen, and are likely to continue to do so, so a small decline in the income generated by the Trust's portfolio is to be expected.

The equity markets experienced a volatile 2024, with many geopolitical impacts, not least the arrival of the Trump administration in Washington, and its fairly chaotic trade tariff plans, along with the war in Ukraine, the war in Gaza, the aerial bombardment of Iran, and conflict between India and Pakistan. Much of the S&P500 performance continued to be driven by its large technology stocks, making it, along with the NASDAQ, the stand out markets, as Asia suffered from the difficult trade negotiations between China and the USA, while the FTSE 100's lack of technology companies led it to underperform at least the US indices.

A substantial cash reserve, and the Trust's direct portfolio via investment trusts (around 50% of the direct portfolio), provided some protection in the volatility that was been observed in 2024. The portfolio is invested at a higher yield than found in most developed market indices. This, combined with the excess of grants over investment income, means that capital growth of the portfolio is constrained. Investment trusts are very useful in providing steady income growth, but their use of has been a drag on performance, for once, as the sector has remained out of favour along with many retail investor driven sectors. Retail investors turned to the high yield attractions of both savings accounts and stocks or bonds, that have risen substantially along with interest rates. This creates a great opportunity to acquire assets at a discount and now enter higher yielding bond or bond proxy investments at significant yields. The trustees continue to believe that the investment trust sector will make a recovery in due course, and propose to continue with the current investment policy.

FINANCIAL REVIEW

Financial review

The trust's net expenditure for the year to 28th February 2025 was £83,872. Included in this is the gain on investment assets of £120,519. The accumulated funds at 28th February 2025 are £1,969,055. The funds are held at this level to produce income to support the charitable activities.

Reserves policy

As part of its activities the trust sets out to be a long term supporter of certain projects or organisations that fulfil its objectives. To ensure that it can continue that support the trustees deem it appropriate to hold reserves, and primarily to use the income generated by those reserves, when invested, to support its activities. The trust does not raise funds from the public or third parties. All of its capital has been donated by the trustees and there is no certainty of that from year to year. At 28th February 2025 the trust had unrestricted reserves of £1,969,055. It is the opinion of the trustees that a minimum level of £1,000,000 in reserves is required to provide the income to support its activities for the long term. Utilisation of the reserves below that level to make grants would reduce the income generating base, and over time the ability to provide long term support. The reserves will be reviewed annually in the light of the development of the activities of the trust, but at present represent a strong buffer against market gyrations.

Going concern

The accounts have been prepared on the going concern basis. The justification for this is that the reserves held are sufficient to produce income to support the charitable activities.

FUTURE PLANS

The Trust will continue to combine some long-term support for certain projects with one off or irregular support for new charitable activities. On the investment side, it is proposed to continue to split the portfolio between the outsourced portion with M&G Charifund and a more international selection of shares and investment trusts in the self-managed part. Given the major geo-political and economic risks the trustees still felt this represented a balanced risk approach, along with maintenance of cash reserves of around 10% normally. Once the discounts on investment trusts normalise, the trust may move more of its collective investments into Exchange Traded Funds.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 9th February, 2005. It is registered as a Scottish Charity.

Recruitment and appointment of new trustees

New trustees are recruited and appointed by the existing trustees in accordance with the Articles of Association as deemed necessary to meet the objects for which the charity was established.

Organisational structure

The trustees at 28th February, 2025 are as set out below and they have served for the full financial period.

Risk management

The annual review of the risks facing the trust was undertaken by the directors. The main risk is investment performance, and in particular income generation to support the grant making activity, as the trust does not undertake fund raising from third parties, and so relies upon the portfolio to generate the funds for making donations. The portfolio is diversified by holding both direct holdings and investment trusts (which themselves are highly diversified) in the own managed portfolio, generating an above market yield but not to the extent of hampering some capital growth. This portfolio is given an international 'tilt' given the dominance of UK holdings in the M&G Charifund portfolio, thus magnifying the diversification. The Charifund is higher yielding.

The Trust has sought to achieve income through a 100% exposure to equities either via the M&G Charifund or in the direct portfolio (though the Charifund does have some fixed coupon exposure). In an era of very low interest rates this has produced a much better total return than could be achieved via bonds or gilts. This asset allocation is kept under review, and after a torrid time for fixed interest securities, with most continuing to fall in value in 2023, the trust will seek an exposure to this asset class, probably via collective vehicles. Once interest rates peak this should provide a good yield, some capital protection, and better returns than fixed interest has produced in the last couple of years. During the year the defensive cash balance was reduced as investment opportunities arose.

Wherever possible as a matter of policy, the risk of making a donation to an entity with poor governance is mitigated by making the donations to UK registered charities. Regular contact is maintained with the key donees and reports are sought where appropriate.

The risk of personal data breaches and not meeting the requirements of the General Data Protection Regulation introduced at the end of May 2018 is minimal as the trust holds no personal data on anyone another than the trustees as it does not raise money from the public.

The Trust has substantial and largely liquid unrestricted reserves, and low operating costs, and is well positioned to manage the current global circumstances.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC279698 (Scotland)

Registered Charity number

SC024123

Registered office

Barnellan

Bardowie

Milngavie

Glasgow

G62 6EZ

Trustees

G Burns

C Burns

K Burns

P Burns

S Burns

Company Secretary

G Burns

Independent Examiner

Russell & Russell Business Advisers Limited

4 Royal Crescent

Glasgow

G3 7SL

Bankers

Bank of Scotland

Direct Business

Stockbrokers

J.M. Finn & Co

4 Coleman Street

London

EC2R 5TA

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 9th September 2025 and signed on its behalf by:

G Burns - Trustee

I report on the accounts for the year ended 28th February 2025 set out on pages six to thirteen.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under Section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of the independent examiner's report

My examination was carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention :

(1)	which gives me reasonable cause to believe that, in any material respect, the requirements

-	to keep accounting records in accordance with Section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

-	to prepare accounts which accord with the accounting records and to comply with Regulation 8 of the 2006 Accounts Regulations

have not been met; or

(2)	to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Ann McNally FCCA

The Association of Chartered Certified Accountants

Russell & Russell Business Advisers Limited

4 Royal Crescent

Glasgow

G3 7SL

9th September 2025

28.2.25

29.2.24

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

50,000

81,250

Investment income

3

97,680

89,391

Total

147,680

170,641

EXPENDITURE ON

Charitable activities

4

Grants and donations payable

166,100

107,177

Support costs

18,227

16,830

Total

184,327

124,007

Net gains/(losses) on investments

120,519

(124,368

)

NET INCOME/(EXPENDITURE)

83,872

(77,734

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,885,183

1,962,917

TOTAL FUNDS CARRIED FORWARD

1,969,055

1,885,183

28.2.25

29.2.24

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Investments

8

1,751,335

1,632,459

CURRENT ASSETS

Debtors

9

160,540

175,232

Cash at bank

75,407

94,322

235,947

269,554

CREDITORS

Amounts falling due within one year

10

(18,227

)

(16,830

)

NET CURRENT ASSETS

217,720

252,724

TOTAL ASSETS LESS CURRENT LIABILITIES

1,969,055

1,885,183

NET ASSETS

1,969,055

1,885,183

FUNDS

11

Unrestricted funds

1,969,055

1,885,183

TOTAL FUNDS

1,969,055

1,885,183

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28th February 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 28th February 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 9th September 2025 and were signed on its behalf by:

G Burns - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The presentation currency of the financial statements is the Pound Sterling (£).

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Gift aid donations include the related income tax recoverable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable grants

Grants reflect amounts paid and payable in the accounting period.

Fixed asset investments

a) Investments are initially recognised at their transaction value and subsequently measured at their market value at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

b) All investment gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Taxation

The trust has charitable status and is exempt from taxation on income and capital gains. Donations to the trust attract income tax relief for the donors. As the trust is not registered for value added tax such tax is not recoverable and is accordingly included in the expenditure.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

a) Basic debt financial assets and liabilities

Debt financial assets and liabilities which comprise debtors and creditors, are receivable and payable within one year and recognised at the transaction price.

At the end of each accounting period debt financial assets are assessed for impairment and their carrying value reduced if necessary. Any impairment charge is recognised in the statement of financial activities..

b) Fixed asset investments

As indicated above in the separate accounting policy, fixed asset investments that are equity of the issuer are measured at fair value with gains or losses recognised in the statement of financial activities.

2.	DONATIONS AND LEGACIES

28.2.25

29.2.24

£

£

Donations

50,000

81,250

3.	INVESTMENT INCOME

28.2.25

29.2.24

£

£

Income from UK listed investments

90,615

84,915

Interest receivable

7,065

4,476

97,680

89,391

4.	GRANTS AND DONATIONS

The grants paid to institutions were as follows:

28.02.25

29.02.24

£

£

1a Productions

16,000

-

Abernethy Trust

6,100

5,000

AYDAP Scotland

9,500

9,000

Association of Christian Counsellors

-

2,000

Changing Lives Malawi

4,500

4,000

Evangelical Alliance Scotland

-

8,000

Glasgow City Mission

30,000

5,000

Home for Good

8,000

7,000

Ibex Capital Trustee

4,000

4,500

Interserve Great Britain & Ireland

3,000

3,000

Junction 12 Youth Project

7,000

-

Music Education Partnership Group

3,500

3,000

Navigators UK

2,000

8,000

Operation Mobilisation

12,000

10,000

Refuel Scotland

5,000

-

SU Scotland - Soul Survivor

-

14,677

Tearfund

30,000

7,000

The Loss Foundation

7,500

-

The Preshal Trust

3,000

3,000

The Salvation Army

5,000

5,000

World Vision

10,000

9,000

166,100

107,177

5.	SUPPORT COSTS

Governance

costs

£

Support costs

18,227

Support costs, included in the above, are as follows:

28.2.25

29.2.24

Support

Total

costs

activities

£

£

Management fees

14,351

13,128

Independent examiner's fees

1,434

1,361

Accountancy and tax fees

2,442

2,341

18,227

16,830

6.	TRUSTEES' REMUNERATION AND BENEFITS

Management fees comprise an amount charged by Barnellan Equity Advice Limited for management services rendered during the year of £14,351 (2024: £13,128). G. Burns is a director in this business.

There was no trustees' remuneration paid for the year ended 28th February, 2025 nor for the year ended 29th February, 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 28th February 2025 nor for the year ended 29th February 2024.

7.	STAFF COSTS

The company had no employees during the year.

8.	FIXED ASSET INVESTMENTS

Listed

investments

£

MARKET VALUE

At 1st March 2024

1,632,459

Additions

80,877

Disposals

(44,886

)

Revaluations

82,885

At 28th February 2025

1,751,335

NET BOOK VALUE

At 28th February 2025

1,751,335

At 29th February 2024

1,632,459

There were no investment assets outside the UK.

Cost or valuation at 28th February 2025 is represented by:

Listed

investments

£

Valuation in 2025

1,751,335

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.25

29.2.24

£

£

Amount owed by stockbroker

160,540

158,897

Income tax recoverable

-

16,335

160,540

175,232

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.25

29.2.24

£

£

Trade creditors

14,351

13,128

Accruals and deferred income

3,876

3,702

18,227

16,830

11.	MOVEMENT IN FUNDS

Net

movement

At

At 1.3.24

in funds

28.2.25

£

£

£

Unrestricted funds

General fund

1,885,183

83,872

1,969,055

TOTAL FUNDS

1,885,183

83,872

1,969,055

Net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

147,680

(184,327

)

120,519

83,872

TOTAL FUNDS

147,680

(184,327

)

120,519

83,872

Comparatives for movement in funds

Net

movement

At

At 1.3.23

in funds

29.2.24

£

£

£

Unrestricted funds

General fund

1,962,917

(77,734

)

1,885,183

TOTAL FUNDS

1,962,917

(77,734

)

1,885,183

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

170,641

(124,007

)

(124,368

)

(77,734

)

TOTAL FUNDS

170,641

(124,007

)

(124,368

)

(77,734

)

12.	RELATED PARTY DISCLOSURES

As mentioned in the financial review on page 2, all capital has been donated by trustees. The donation made during the year of £50,000 was donated by the trustees.These donations have no conditions attached.