The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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).
The principal objectives of Holm Evangelical Church are the public worship of God; the teaching of the Bible to make Christ known and to equip for whole life discipleship; the spreading of the gospel of Jesus Christ; the exercise of pastoral care and the provision of practical compassion to those in need.
Significant activities
The principal activities are public worship on Sundays, prayer meetings, discipleship courses, home Bible studies, ministries for children and youth, outreach and support for community activities. Plans for delivering these activities are implemented via a number of committees.
Review of the year and future plans
This review of the year is a summary of how the church has been able with God's help to continue our principal activities and fulfil our stated objectives.
We seek to fulfil our stated objectives by placing an equal emphasis on mission, ministry and growth into maturity. We receive a lot of new people coming to our church and there is a significant effort made to get to know them through pastoral visitation and welcome evenings. Although we are a large church we emphasise the importance of relationships: everyone having a sense of belonging in community and everyone having an opportunity to serve.
Our morning congregation is around 250-300 each week, with an evening congregation of 60-80. Approximately 90 of these are in the age range of 0-18. In our Sunday worship services and small groups we are sowing the seed of God’s Word into every age group. We are an outward looking missional church and offer many ministry programmes into our community which provide stepping stones towards our church fellowship and opportunities for us to get alongside people.
Our 5 day a week coffee shop has provided a great source of community for many. The mid-week lunch club for older members is well attended and helps to reduce isolation. Our Christians Against Poverty ministry provides vital support to those struggling with debt. Our Listening Ear service is now established and respected across the city of Inverness, and we have once again received a generous external donation in support of this work. In August 2024 our Listening Ear team hosted an open afternoon on the theme ‘bringing help and hope.” The NHS and a wide range of organisations involved in holistic care partnered with us for this event. The clients have appreciated the unconditional listening support, and some have enquired about faith and started attending our church. Most of the people who receive a 1:1 appointment at Listening Ear or attend our bereavement journey course have no previous church connection but many have testified that it has helped and has brought hope.
We were delighted to host the Blythswood Care shoe box sorting last Autumn which provides a community hub to send poverty relief to Eastern Europe. In March 2025 we raised funds and sent a team of volunteers to Romania to support a Christian charity which provides holidays for disabled children.
Over the last year we have had the privilege of seeing people embrace the faith and regularly attend church even though previously they have had no connection to church. As well as running an Alpha course we invest significant time helping people to grow through groups. Over the last year we had five baptisms and several others who have professed faith for the first time. We established three new discipleship groups over the last year.
Our goal of building long lasting relationships with families is served by a portfolio of children and family ministries. During the week in our church centre, we have three parent and toddler/ baby groups where we seek to get alongside and provide support to many community families. Through Messy Church and Good News Club we teach the Christian faith to children in creative ways. We established a new team to lead our summer holiday club in 2025. We have strong support from our local schools who use our building for school assemblies and encourage us to contribute to classes, assemblies and in the life of the school. We also organised a family fun day for the community which was very well attended by the community.
CCC is growing steadily in size of congregation, the range of ministries and the staff employed. To have sustainable growth in our church ministry we have been considering how to strengthen our leadership team. In March 2025, the church meeting unanimously agreed with the leadership recommendation that we seek to appoint a Church Manager and second Pastor. In May 2025 our new Church Manager commenced employment, and this is working very well. In the coming year the church will be prayerfully seeking to appoint a second Pastor to join our leadership team.
Membership
Church membership has increase from 166 on 31 March 2024 to 181 on 31 March 2025. The objectives as stated above have been delivered during the last financial year.
The principal source of funding for the church comes from the gift aided collections and donations from members of the congregation. The total received from these sources for general use (including tax recovered on Gift Aid offerings) in the year was £258,232, an increase of 10.8% over 2024. The general fund, which are the operational reserves of the church, showed an excess of expenditure over income of £38,598.
The general fund represents the unrestricted funds arising from past operational results. An analysis of funds is given in the notes to the accounts. The balance of the general fund at the year end is £1,179,742, £1,146,261 of which is represented by fixed assets, leaving a surplus of free reserves of £33,481. It is the policy of the church to maintain free reserves at a level which equates to 3 month's unrestricted expenditure. The current level of reserves is therefore lower than required but the trustees are confident that the congregation will meet any shortfall that may arise. At the year end, following restricted funds total £18,762 (2024 - £45,481).
The Christians Against Poverty Fund is a restricted fund and represents funds donated and provisions made specifically for the Christians Against Poverty initiative.
The CAP cabin fund represents donations received and monies spent in the construction and supply of various items made by those involved in the project.
The CAP hamper fund represents donations received towards the filling of hampers to be distributed to those in need.
The church supports the Sliven project and this is represented by a restricted fund set up to support the development of a new church in Bulgaria.
The special collections fund represents donations received and advanced for various organisations supported by the church.
The fellowship fund is a fund set up in order that discretionary payments can be made to assist those in need.
The chair fund, land fund, and CAP cabin build fund represent donations received for the purpose of purchasing/upgrading these items for the church.
The Listening Ear funds represents funds given to offer a non judgemental and confidential place to talk in the Hilton area of Inverness and more generally.
Other funds represent small amounts donated for a number of uses.
The trustees consider the main financial risks affecting Holm Evangelical Church are gift income being insufficient to meet expenditure. The church is not reliant on any key individuals. Monthly income and expenditure is monitored and major expenditure is subject to approval by the members.
Holm Evangelical Church (also known as Culduthel Christian Centre) is an independent evangelical church affiliated to the Baptist Union of Scotland. The church is a company limited by guarantee. The government of the church is detailed in the Memorandum and Articles of Association that were registered with the Registrar of Companies in Edinburgh on 15 January 1996 and amended and adopted on 16 June 2004.
The trustees are responsible for the spiritual oversight of the congregation. The administration of the finances and property of the congregation is the responsibility of the trustees who are elected by the members of the church.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees shall consist of such minimum number of members of the church, all of whom shall be Elders, as shall be determined by the members of the church.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 5 to 18.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the 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 financial statements.
In the course of 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 Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Holm Evangelical Church is a private company limited by guarantee incorporated in Scotland, with charity number SC008681. The registered office is Culduthel Christian Centre, Culduthel Avenue, Inverness, IV2 6AS.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Remuneration of £50,400 (2024 - £48,000) and pension contributions of £5,040 (2024 - £4,800) was paid to 1 (2024 - 1) trustees during the year.
Remuneration is paid to Alasdair MacLeod for his role as Pastor to the church. The Memorandum of Association of the church provides for any person holding office as a trustee to be permitted to receive remuneration which the church authorises to be paid to him. The remuneration is not paid in recognition of their role as trustee.
Retirement benefits are accruing for 1 trustee.
Expenses of £1,145 (2024 - £3,241) were paid to Pastor Alasdair MacLeod.
The average monthly number of employees during the year was:
The trustees are the key management personnel and receive no remuneration for their role as trustee.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The church make contributions to a defined contribution pension scheme for the current Minister of the church and these are charged to the Statement of Financial Activities in the period to which they relate. The contribution made for the year to 31 March 2025 is £5,040 (2024 - £4,800).
The church also contributes to the NEST workplace pension scheme for other members of staff. Contributions made for the year to 31 March 2025 are £2,848 (2024 - £2,454).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Restricted funds
The Christians Against Poverty fund represents monies received and used in connection with this initiative.
The special collections fund represents money collected for a variety of causes throughout the year.
The Sliven project fund represents money collected to support the development of a new church in Bulgaria.
The fellowship fund represents money collected in order that discretionary payments may be made to people in need.
The CAP cabin fund represents amounts donated towards the work carried out by those attending this CAP project.
The CAP hamper fund represents amounts donated towards the cost of supplying hampers to those in need.
The Listening Ear funds represents funds given to offer a non judgemental and confidential place to talk in the Hilton area of Inverness and also more generally.
The chair fund, land fund, and CAP cabin build fund represents donations received for the purpose of purchasing/upgrading these items for the church.
Other funds represent small amounts donation for a number of uses.
Transfers between funds
Funds received for the purchase of land and for the CAP cabin build were transferred to the general fund following the purchase of the land and cabin build equipment, and the terms of the restriction having been met. This is now shown within fixed assets.
Fund in deficit
The CAP cabin fund is operating at a deficit at the moment but it is hoped that this will continue to be supported by members of the congregation and that this position can be reversed.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Amounts contracted for but not provided in the financial statements:
At 31 March 2024, the church had paid a deposit of £8,358 for the delivery of new chairs. The balance of £21,849 was paid in April 2024.
During the year the charity entered into the following transactions with related parties:
During the year, known donations of £48,861 (2024 - £55,042) were received from the trustees.
Holm Evangelical Church is a private company, limited by guarantee and registered in Scotland. The members of the company are the directors named in the trustees report. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.