REGISTERED COMPANY NUMBER: SC149827 (Scotland)

REGISTERED CHARITY NUMBER: SC022440

HAYLIE HOUSE TRUSTEES LIMITED

(A COMPANY LIMITED BY GUARANTEE)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page

Report of the Trustees

1

to

6

Report of the Independent Auditors

7

to

9

Statement of Financial Activities

10

Balance Sheet

11

to

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

25

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 31 March 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The financial year 2024/2025 was a busy year for Haylie House. Our strategic Business Plan 2025-28 identifies the key areas of work which will ensure our long-term financial viability and future succession planning. Costings and plans for the refurbishment and maintenance of several areas of the home were put in place with work underway in priority areas.

The home is spread over two levels and is registered to accommodate twenty-four residents who require residential care. Current accommodation is twenty-three single rooms, with the possibility of using the large room for a couple with a pre-existing relationship in line with the Health and Social Care Standards. This continues to impact on the financial position of the home. For the majority of this year the home's occupancy level has run at a maximum of twenty-three residents in twenty-three single rooms.

Most bedrooms have en-suite toilet facilities and there are two bathrooms with assistance baths and three shower rooms. There are two shared lounge / dining areas, a garden room, a quiet lounge, a large TV lounge and a reminiscence lounge.

Our aim is to create a safe, homely environment, whilst delivering high quality services for each person we support, treating each person with compassion, dignity and respect. We are very pleased that the last inspection in March 2025 recognised how well this aim is achieved.

Maintenance and upkeep

During the year five bedrooms have been refurbished to a very high standard. We also have a programme of ongoing maintenance to the building with upgrades to the rest of the bedrooms taking place as and when funds become available.

ACHIEVEMENTS AND PERFORMANCE

Charitable Activities

Care Inspectorate Inspection

The Care Inspectorate visited in March 2025 to carry out our latest inspection. The latest inspection awarded Haylie the following overall grades:

•

How well do we support people's wellbeing? = 5 - Very Good"People were treated with compassion, dignity and respect. There were strong positive relationships across the home. The value of creating positive caring experience for people was important and was extended to relatives and visitors."

•

How good is our leadership? = 6 - Excellent"There was excellent quality assurance to monitor standards and drive change and improvement where this was needed. The staff team were led by a manager who role modelled a strong ethos and fostered a culture of learning across the home."

•

How good is our staff team? - 5 - Very Good"Haylie House has a strong and stable team of staff who are highly skilled and competent in their respective roles. The ethos of high-quality care was clear across the home. This made people feel valued. Very good staff recruitment and retention processes, coupled by no use of agency staff meant that the influential ethos was consistently upheld."

The key messages from the recent inspection were:

•

People supported and their families spoke very highly about the quality of care and support they received;

•

The home had a welcoming and inclusive atmosphere, where people felt valued, respected and empowered;

•

People experience support that promoted their identity, independence and choice, from a kind and caring and competent staff group;

•

The team at Haylie House were led by a proactive manager who role modelled a strong ethos and fostered a culture of learning across the home; and

•

Impactful quality assurances processes and a culture of continuous improvement supported positive experiences and outcomes for people and their families.

The charity is also affiliated to Scottish Care which represents the charity's interests at Government level, for example in negotiation of fees.

The Directors and Trustees consider a key performance indicator for the charity to have the ability to achieve as near to full occupancy as possible throughout the year. In order to maximise our occupancy, we have reluctantly approved the Lavender Lounge be converted to a bedroom. Planning permission and listed building approval granted. We await building warrant.

The home manager works hard to sustain capacity at twenty-four or as close to this number of residents as possible. Financial performance is also dependent on the level of fees for those residents supported by public funding. These fees are determined by the local authorities and are out-with the control of the Trustees.

Fundraising activities

Applications for grants resumed in 2024/2025. In addition, we have been fortunate to receive donations from families and local organisations as part of their charity work. Our regular coffee morning in October each year continues to be well supported and the monies raised contribute towards the wellbeing and and entertainment of our residents.

FINANCIAL REVIEW

Financial position

The results for the year and the financial position of the company are shown in the financial statements attached. The financial pressures continue unabated and this has resulted in a loss for the year. Salaries have to be kept under constant review and have to take account of the market rates. They by far make up the largest item of expenditure. Government changes relating to Employer National Insurance will have a significant effect on staff costs. Essential running costs remain fairly predictable, but they also indirectly are subject to market forces. Resident fees provide the only real source of income. Like other care homes, Haylie House has a number of local authority financed residents. If it could rely on annual increases which take account of the real costs of running a home, then the Board could reasonably plan on balancing the books and look to generate small surpluses to put into reserves. The reality is that adequate public funded increases are not made every year. The Trustees continue to look carefully at expenditure, but have not been able to identify any areas of the budget where they could affect significant savings without sacrificing standards. Any unoccupied rooms are filled as soon as possible including taking respite residents to fill any gaps and so full occupancy is almost achieved. The Trustees have identified measures to avoid future losses.

Investment policy and objectives

The company's financial instruments include investments in equity based managed funds. The main purpose of these financial instruments is for capital growth for realisation for possible future projects.

The principal risk arising from the company's financial instruments is market risk.

Market risk

The investments are exposed to normal market risks associated with stock market investments. The Trustees consider that they have mitigated the risk as far as possible by taking professional advice and investing in funds with a risk profile suitable to that of a public interest body.

Investment performance

In the current climate, investment values have declined and a combined realised and unrealised loss of £200 was incurred in year 2024/2025.

Reserves policy

The Directors and Trustees keep under review the level of free reserves to ensure the charity's continuance in future years. They consider the retention of investments essential to generate a source of income. The reserves policy set by the Directors and Trustees is £250,000 which they believe provides a sufficient surplus to cover shortfalls in income equivalent to 2 months running costs.

The actual level of free reserves, being those funds not tied up in fixed assets, long term investments, designated for a specific purpose or restricted at 31 March 2025 are £32,001 (2024 - £32,186).

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees are well aware of the economic challenges which are affecting businesses at the moment and specifically in relation to the charity's own ongoing operations and have worked extremely hard to continue to operate effectively and reduce operating costs where possible. While they anticipate the next few years will be a challenge financially, the Trustees are of the opinion that there are sufficient reserves and future income to sustain the difficult period. For this reason the Trustees continue to adopt the going concern basis in preparing the financial statements.

FUTURE PLANS

The Trustees have agreed, as previously stated, to convert the Lavender Lounge to a bedroom to increase the overall capacity and increase the earning potential of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Haylie House Trustees Limited was constituted as a company limited by guarantee and not having a share capital by Memorandum and Articles of Association on 23 March 1994. The liability of the members is limited to £1 each. The Directors are appointed in accordance with the terms of the Memorandum and Articles of Association.

Haylie House was gifted to the Burgh of Largs and forms part of the Common Good Fund. The asset was administered by the local council, now taken over by North Ayrshire Council, at a commercial rent. The home is responsible for the internal and external upkeep of the property. Haylie House operates a caring and comfortable environment for elderly people mainly from the district of Largs who are unable to look after themselves. Since the home opened in 1955 it has fulfilled its aim of encouraging residents to maintain independence for as long as possible whilst being looked after in a pleasant and homely environment. It is a happy home and all who are involved in its running are justifiably proud of the excellent reputation which it enjoys.

The home enjoys a charitable status and is registered as Scottish charity no. SC022440. The Home Manager, along with the Assistant Manager are responsible for the management of the home on a day-to-day basis. A Board of Trustees, who are also Directors for the purposes of company law, work closely with the Home Manager and has responsibility for the strategic and financial management of the home. A list of Trustees and Professional Advisors is included within this report. Trustees give their time voluntarily and receive no remuneration or expenses. Trustees meet as a single Board every four weeks or so to review the operations of the home, its finances and any administrative matters which require a decision.

Recruitment and appointment of new trustees

The Board of Trustees seek individuals with skills appropriate to the running of a Care Home and a general business background. Trustees are appointed in accordance with the terms of the Articles of Association. Trustees are encouraged to take an active role in the operational aspects of the charity and are asked to review OSCR guidance for Trustees as part of the induction process and are also required to have a PVG Disclosure Scotland check.

Management

The Home Manager, supported by an Assistant Manager and a Care Supervisor is responsible for the day to day running of the home. She has the authority to take decisions in consultation with the Chair of the Board of Trustees as necessary and is also responsible for the administration of the home. She meets regularly with the Honorary Treasurer and the Chair of the Board of Trustees and with the Honorary Secretary. At the monthly Board Meetings, the Manager presents a report on the home and raises any matters which require attention of the Trustees. The Honorary Treasurer presents a statement of accounts and an update on the financial position at Board meetings.

Staff

Wages make up by far the largest item in the budget. The Trustees keep under regular review the staffing levels. The Board consider that the current level of 60 staff, equivalent to full time of 36, operating on a shift system, is the minimum required to ensure the care and security of the residents. Care staff are involved in regular in-house and external training and are encouraged and motivated to achieve S.V.Q qualifications at various levels. The Manager in charge has a B.A. in Community Health Nursing and is registered with the Nursing and Midwifery Council (NMC). The Assistant Manager has completed her S.V.Q Level 4 in Health & Social Care and is now working towards achieving the qualification in Leadership & Management in Health & Social Care. Staff turnover is in line with care industry standards, which the Board believes, reflects job satisfaction, good working conditions and competitive salary scales, although these are very much dictated by resident fee rates agreed at national and local authority levels.

Risk management

The home has an external Health and Safety and Employment Law advisor. The home employs various companies to carry out risk assessments to ensure that we keep up to date with legislation and meet required standards.

At their meetings, the Directors and Trustees monitor the general risks to which the charity is exposed. For the scale of operation this is considered appropriate as it comprises:

•

An ongoing review of the risks which the charity may face;

•

The establishment of systems and procedures to mitigate those risks identified;

•

The implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise.

We also have a Trustee appointed as a Health and Safety Convenor who supports the management team and presents his report at the monthly Board Meetings.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC149827 (Scotland)

Registered Charity number

SC022440

Registered office

4 Frazer Street

Largs

KA30 9HP

Trustees

Mr G Condron

Mr D H MacGillivray

Mr D M Boyle

Mr A W J Shedden

Mrs A Johnstone

Mr B J Bowden (resigned 24/10/2024)

Mrs I Rafferty

Mrs C Thomas

Mr G D Black (resigned 24/10/2024)

Mrs J M Golightly

Mrs K A Henderson

Mr E W McMillan

Mr E O'Brien

Mr T Williamson (appointed 24/10/2024)

Ms A E Cowgill (appointed 24/10/2024)

Company Secretaries

Mrs I Rafferty

Low Beaton Richmond LLP

Auditors

Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

Solicitors

Low Beaton Richmond LLP

NAC representative

Councillor Tom Marshall

Key Management Personnel

Mrs I Smith - Registered Home Manager

FUNDS HELD AS CUSTODIAN FOR OTHERS

In common with many care homes, Haylie House holds funds representing small amounts of residents money to provide for minor personal items. These are held separately from the assets of the home and are regularly reconciled to funds received less expenditure.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Haylie House Trustees Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Armstrong Watson Audit Limited (formerly Martin Aitken & Co Ltd), will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 25 September 2025 and signed on its behalf by:

Mrs C Thomas - Trustee

Opinion

We have audited the financial statements of Haylie House Trustees Limited (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Directors' Report, prepared for the purposes of company law and included in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Directors' Report, included in the Report of the Trustees, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-	adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the independent auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

Auditors' responsibilities for the audit of the financial statements - continued

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Gavin Curr FCCA (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

25 September 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME FROM

Donations and legacies

2

16,045

-

16,045

2,707

Charitable activities

5

Residential care

1,294,681

-

1,294,681

1,296,658

Other trading activities

3

4,848

-

4,848

7,801

Investment income

4

19,401

-

19,401

6,686

Total

1,334,975

-

1,334,975

1,313,852

EXPENDITURE ON

Direct charitable costs

6

Residential care

1,430,040

2,114

1,432,154

1,389,176

Net gains/(losses) on investments

(200

)

-

(200

)

2,359

NET INCOME/(EXPENDITURE)

(95,265

)

(2,114

)

(97,379

)

(72,965

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,096,896

10,571

1,107,467

1,180,432

TOTAL FUNDS CARRIED FORWARD

1,001,631

8,457

1,010,088

1,107,467

2025

2024

Notes

£

£

FIXED ASSETS

Tangible assets

13

576,853

560,980

Investments

14

56,374

58,519

633,227

619,499

CURRENT ASSETS

Debtors

15

67,638

29,991

Cash at bank and in hand

421,409

562,873

489,047

592,864

CREDITORS

Amounts falling due within one year

16

(112,186

)

(104,896

)

NET CURRENT ASSETS

376,861

487,968

TOTAL ASSETS LESS CURRENT LIABILITIES

1,010,088

1,107,467

NET ASSETS

1,010,088

1,107,467

FUNDS

19

Unrestricted funds:

General fund

656,771

641,114

Designated

344,860

455,782

1,001,631

1,096,896

Restricted funds

8,457

10,571

TOTAL FUNDS

1,010,088

1,107,467

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 25 September 2025 and were signed on its behalf by:

Mr E W McMillan - Trustee

Mrs C Thomas - Trustee

Cash flows from operating activities

Cash generated from operations

1

(101,888

)

(51,806

)

Net cash used in operating activities

(101,888

)

(51,806

)

Cash flows from investing activities

Purchase of property plant and equipment

(60,922

)

(69,218

)

Purchase of fixed asset investments

-

(1,690

)

Sale of fixed asset investments

1,945

-

Interest received

19,401

6,686

Net cash used in investing activities

(39,576

)

(64,222

)

Change in cash and cash equivalents in the reporting period

(141,464

)

(116,028

)

Cash and cash equivalents at the beginning of the reporting period

562,873

678,901

Cash and cash equivalents at the end of the reporting period

421,409

562,873

1.	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net expenditure for the reporting period (as per the Statement of Financial Activities)

(97,379

)

(72,965

)

Adjustments for:

Depreciation charges

45,049

62,142

Losses/(gain) on investments

200

(2,359

)

Interest received

(19,401

)

(6,686

)

Investment management costs

-

269

(Increase)/decrease in debtors

(37,647

)

3,507

Increase/(decrease) in creditors

7,290

(35,714

)

Net cash used in operations

(101,888

)

(51,806

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

562,873

(141,464

)

421,409

562,873

(141,464

)

421,409

Total

562,873

(141,464

)

421,409

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', the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are presented in Sterling (£).

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. After reviewing the charity's management accounts and while they anticipate the next few years will be a challenge financially, the Trustees are of the opinion that there are sufficient reserves and future income to sustain the forthcoming difficult trading period. For this reason, the Trustees continue to adopt the going concern basis in preparing the financial statements.

Information and key sources of estimation uncertainty

In the application of the company's accounting policies, the trustees are required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The company does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting year that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The trustees consider there are no such significant judgements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

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.

Charitable activities

Costs of charitable activities are incurred on the charity's care operations, including support costs and costs relating to the governance of the charity.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

4% straight line

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on cost

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

- 4% straight line

Fixtures and fittings

- 15% on reducing balance

Motor vehicles

- 20% on cost

Tangible fixed assets are included at cost less accumulated depreciation and accumulated impairment losses.

The capitalisation policy is that assets purchased for under £300 are not capitalised.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like property, plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Unrestricted designated funds are funds which have been placed in reserves by the trustees to meet future anticipated costs of an expansion to the premises and for retention to increase reserves.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Operating lease commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Investments

Investments are included initially at cost then subsequently at fair value, being quoted market value. Realised gains and losses (representing the difference between sale proceeds at market value at the previous financial year end or purchase cost if acquired during the financial year) and unrealised gains and losses (representing the movement in market value of the investments over the financial year or from their date of purchase if acquired during the financial year) are dealt with in the Statement of Financial Activities. In the case of a permanent diminution in the value of investments, provision is made within income and expenditure in the Statement of Financial Activities to reduce the carrying value of investments to their recoverable amount.

Dividends and interest income are included in investment income when received.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Debt instruments like trade and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

11,045

1,207

Grants

5,000

1,500

16,045

2,707

Grants received, included in the above, are as follows:

2025

2024

£

£

Kelburn Wind Farm

5,000

-

Other grants

-

1,500

5,000

1,500

3.	OTHER TRADING ACTIVITIES

2025

2024

£

£

Fundraising events

3,334

6,697

Staff meals

1,514

1,104

4,848

7,801

4.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

19,401

4,996

Other interest receivable

-

1,690

19,401

6,686

5.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Residential fees

Residential care

1,294,681

1,296,658

6.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 7)

Totals

£

£

£

Residential care

1,421,566

10,588

1,432,154

7.	SUPPORT COSTS

Governance

Other

costs

Totals

£

£

£

Residential care

115

10,473

10,588

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

2025

2024

Residential

Total

care

activities

£

£

Bank charges

115

91

Auditors' remuneration

8,300

6,510

Legal and professional fees

2,173

5,407

10,588

12,008

8.	PROJECT COSTS

2025

2024

£

£

Support costs

10,588

12,008

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2025

2024

£

£

Auditors' remuneration

8,300

6,510

Depreciation - owned assets

45,049

62,141

Hire of plant and machinery

7,742

3,217

Other operating leases

7,312

7,312