Lochcarron Community Development Company Charity Accounts

COMPANY REGISTRATION NUMBER: SC137057

CHARITY REGISTRATION NUMBER: SC020150

Lochcarron Community Development Company

Company Limited by Guarantee

Unaudited Financial Statements

For the year ended

5 April 2025

Lochcarron Community Development Company

Company Limited by Guarantee

Financial Statements

Year ended 5 April 2025

	Page

Trustees' annual report (incorporating the director's report)	1

Independent examiner's report to the trustees	5

Statement of financial activities (including income and expenditure account)	6

Statement of financial position	7

Notes to the financial statements	8

Lochcarron Community Development Company

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 5 April 2025

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 5 April 2025 .

Reference and administrative details

Registered charity name	Lochcarron Community Development Company

Charity registration number	SC020150

Company registration number	SC137057

Principal office and registered	The Smithy Heritage Centre
office	Ribhuachan
	Lochcarron
	Strathcarron
	Ross-shire
	IV54 8YS

The trustees

	Mrs H Rooke
	Mr P Barr	(Retired 21 October 2024)
	Mr A Cormack	(Retired 30 July 2024)
	Miss A Mackay	(Retired 9 April 2024)
	Mr P Holmes
	Mrs H Murchison	(Retired 14 January 2025)

	Ms C Fisher-Campbell	(Appointed 14 January 2025)
	Ms S Murray	(Appointed 14 January 2025)
	Mr R E Wilkinson	(Appointed 17 March 2025)

Independent examiner	M J Macnab BSc, FCCA
	Tulloch Street
	Dingwall
	Ross-shire
	IV15 9JY

Structure, governance and management

Lochcarron Community Development Company incorporated on 11 March 1992 as a Company Limited by Guarantee and does not have any Share Capital. The Organisation is governed by its Memorandum and Articles of Association. The management of the Organisation is the responsibility of the Trustees who are elected under the terms of the Articles. A list of those serving is given above.

Objectives and activities

To manage community land and associated assets for the benefit of the Community and the public in general as an important part of the protection and sustainable development of Scotland's natural environment, where 'sustainable development' means development which meets the needs of the present without compromising the ability for future generations to meet their own needs. To advance the education of the Community about its environment, culture and/or history. To advance the arts, heritage, culture or science.

Achievements and performance

Tragically this financial year saw the passing of two highly influential directors of LCDC, Alec Cormack and Peter Barr, within a short period in the late summer months. The loss of their energy, diligence and skillsets dramatically reduced the capacity and capability of the LCDC Board and they are both still greatly missed.

In establishing objectives for the new financial year LCDC's board had once again planned to continue stabilising commercial activities in renting retail, exhibition and office facilities at the Smithy Hub site.

Visitor and shopper numbers there continued to grow throughout the summer months and maintenance and improvement tasks were the main focus for the company. As indicated in last year's annual report the unprofitable Kirkton Trading wood fuel business was closed early in the year and its' plant was sold. Other regular activities involved continuing support for the Community Growing Group and maintenance and development of Kirkton Community Woodlands where volunteers continued a programme of cutting back invasive species, clearing pathways and drainage improvements.

An initiative instigated by Peter Barr brought together local clubs, organisations and interest groups to meet the larger local businesses and local and national politicians under a Lochcarron United banner in the Village Hall in August. There positive discussions were held on shared issues and development or improvement priorities for the area. Sponsored by the businesses, it was professionally chaired by an independent facilitator and was very well attended. The resulting report can be used in future discussion and policy making for community activities and to form future policy for LCDC.

The proposed Kirkton Gardens affordable housing development by the Community Housing Trust, which would be enabled by the donation of land from LCDC, was reported as paused due to affordability issues at the end of last financial year. In the Autumn of 2024 however, The Highland Council recognised new housing in Lochcarron is a high priority and decided they should adopt the project themselves and use an existing "Construction Framework" delivery route.

A revised Planning Application has been made which alters the layout and levels of the development and LCDC's directors have been updated as the scheme progresses through the statutory approvals process. The plans include the preparation of four serviced building plots which are earmarked for retention by LCDC. At our AGM, held in January, it was agreed LCDC should seek to sell these to either The Highland Council or their contractor for development in parallel with the rest of the housing. This remains a priority and is currently under discussion.

Also at the AGM, members were advised an approach had been received from someone seeking to buy the land and standing timber at the North end of Kirkton Woodland. It was agreed to pause this and seek alternative buyers for the timber. At the financial year end there was interest expressed by three separate parties and these were being explored.

Financial review

After a year of low expenditure and steady, if modest, income LCDC remains asset rich and our debt position has improved slightly. With no major maintenance expenditure planned that pattern is expected to continue next year. However, generating capital to eliminate debt is essential to allow future new activity and must be a priority for the next year, while carefully maintaining other existing assets and guaranteeing their user satisfaction.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 2 December 2025 and signed on behalf of the board of trustees by:

Mr P Holmes

Trustee

Lochcarron Community Development Company

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Lochcarron Community Development Company

Year ended 5 April 2025

I report on the financial statements for the year ended 5 April 2025, which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the related notes.

Respective responsibilities of trustees and examiner

The charity's trustees (who are also the directors of the company for the purposes of company law) 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. The charity trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 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 independent examiner's report

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 seeks 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 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 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.

M J Macnab BSc, FCCA Independent Examiner

Tulloch Street Dingwall Ross-shire IV15 9JY

2 December 2025

Lochcarron Community Development Company

Company Limited by Guarantee

Statement of Financial Activities

(including income and expenditure account)

Year ended 5 April 2025

	2025			2024
	Unrestricted funds	Restricted funds	Total funds	Total funds
Note	£	£	£	£

Income

Donations, legacies and grants	5	9,497	829	10,326	25,600
Charitable activities	6	–	–	–	315
Other trading activities	7	17,640	–	17,640	18,045
Other income	8	729	–	729	2,007
		--------	----	--------	--------
Total income		27,866	829	28,695	45,967
		--------	----	--------	--------

Expenditure

Expenditure on raising funds:

	Costs of raising donations, legacies and grants		9	31,217	–	31,217	27,947
Expenditure of restricted funds		10,11		( 432)	( 2,838)	( 3,271)	( 28,463)
				--------	-------	--------	--------
Total expenditure				31,649	2,838	34,488	56,410
				--------	-------	--------	--------

	--------	-------	--------	--------
Net income less expenditure	( 3,783)	( 2,009)	( 5,793)	( 10,443)
	--------	-------	--------	--------

Transfers between funds	(2,009)	2,009	–	–

	--------	-------	--------	--------
Net movement in funds	( 5,792)	–	( 5,793)	( 10,443)

Reconciliation of funds

Total funds brought forward	366,160	–	366,160	376,603
	---------	-------	---------	---------
Total funds carried forward	360,368	–	360,368	366,160
	---------	-------	---------	---------

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Lochcarron Community Development Company

Company Limited by Guarantee

Statement of Financial Position

5 April 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible fixed assets	16		424,687	435,003

Current assets

Stock	17	3,118	3,118
Debtors	18	1,210	9,347
Cash at bank and in hand		458	1,195
		-------	--------
		4,786	13,660

Creditors: amounts falling due within one year	19	69,106		82,503
		--------		--------
Net current liabilities			64,320	68,843
			---------	---------
Total assets less current liabilities			360,367	366,160
			---------	---------

Funds of the charity

Unrestricted funds:

	Revaluation reserve		50,000		50,000
	Other unrestricted income funds		310,368		316,160
			---------		---------
Total unrestricted funds			360,368		366,160
				---------	---------
Total charity funds		20		360,368	366,160
				---------	---------

For the year ending 5 April 2025 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

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

These financial statements were approved by the board of trustees and authorised for issue on 2 December 2025 , and are signed on behalf of the board by:

Mrs H Rooke

Director

Lochcarron Community Development Company

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 5 April 2025

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in Scotland and a registered charity in Scotland. The address of the registered office is The Smithy Heritage Centre, Ribhuachan, Lochcarron, Strathcarron, Ross-shire, IV54 8YS.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance
Treehouse	-	20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

4. Limited by guarantee

Company limited by guarantee

5. Donations, legacies and grants

Unrestricted Funds	Restricted Funds	Total Funds 2025
£	£	£

Donations

Donations	9,497	–	9,497
Ospray Energy Ltd	–	–	–

Grants

Scottish Forestry	–	–	–
Lochcarron Highland Games - Growing Group	–	–	–
Lochcarron Community Council	–	829	829
	-------	----	--------
	9,497	829	10,326
	-------	----	--------

Unrestricted Funds	Restricted Funds	Total Funds 2024
£	£	£

Donations

Donations	–	250	250
Ospray Energy Ltd	500	–	500

Grants

Scottish Forestry	–	14,933	14,933
Lochcarron Highland Games - Growing Group	–	1,250	1,250
Lochcarron Community Council	–	8,667	8,667
	----	--------	--------
	500	25,100	25,600
	----	--------	--------

6. Charitable activities

	Unrestricted Funds	Total Funds 2025	Unrestricted Funds	Total Funds 2024
	£	£	£	£
Gift Aid income	–	–	315	315
	----	----	----	----

7. Other trading activities

	Unrestricted Funds	Total Funds 2025	Unrestricted Funds	Total Funds 2024
	£	£	£	£
Membership	–	–	15	15
Rent	17,640	17,640	18,030	18,030
	--------	--------	--------	--------
	17,640	17,640	18,045	18,045
	--------	--------	--------	--------

8. Other income

	Unrestricted Funds	Total Funds 2025	Unrestricted Funds	Total Funds 2024
	£	£	£	£
Other income	–	–	1,410	1,410
Car charger income	529	529	597	597
Car Charge Point - compensation	200	200	–	–
	----	----	-------	-------
	729	729	2,007	2,007
	----	----	-------	-------

9. Costs of raising donations, legacies and grants

	Unrestricted Funds	Total Funds 2025	Unrestricted Funds	Total Funds 2024
	£	£	£	£
General administration	31,217	31,217	27,947	27,947
	--------	--------	--------	--------

10. Expenditure on charitable activities by fund type

	Unrestricted Funds	Restricted Funds	Total Funds 2025
	£	£	£
Kirkton Woodland Planting and Fencing	–	–	–
Car Park Expenditure	–	125	125
Car Charge Point	32	–	32
Digital Woodland	–	–	–
Donations Expenditure	–	–	–
Scottish Forestry Highlands & Islands Conservancy	–	465	465
Growing Group Expenditure	–	2,248	2,248
Support costs	400	–	401
	----	-------	-------
	432	2,838	3,271
	----	-------	-------

	Unrestricted Funds	Restricted Funds	Total Funds 2024
	£	£	£
Kirkton Woodland Planting and Fencing	–	554	554
Car Park Expenditure	–	2,900	2,900
Car Charge Point	–	472	472
Digital Woodland	–	2,881	2,881
Donations Expenditure	–	2,476	2,476
Scottish Forestry Highlands & Islands Conservancy	–	12,233	12,233
Growing Group Expenditure	–	6,546	6,548
Support costs	401	–	399
	----	--------	--------
	401	28,062	28,463
	----	--------	--------

11. Expenditure on charitable activities by activity type

	Grant funding of activities	Support costs	Total funds 2025	Total fund 2024
	£	£	£	£
Kirkton Woodland Planting and Fencing	–	–	–	554
Car Park Expenditure	125	–	125	2,900
Car Charge Point	32	–	32	472
Digital Woodland	–	–	–	2,881
Donations Expenditure	–	–	–	2,476
Scottish Forestry Highlands & Islands Conservancy	465	–	465	12,233
Growing Group Expenditure	2,248	–	2,248	6,548
Governance costs	–	401	401	399
	-------	----	-------	--------
	2,870	401	3,271	28,463
	-------	----	-------	--------

12. Net income less expenditure

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

	2025	2024
	£	£
Depreciation of tangible fixed assets	10,316	10,270
Fees payable for the audit of the financial statements	401	399
	--------	--------

13. Independent examination fees

	2025	2024
	£	£

Fees payable to the independent examiner for:

Independent examination of the financial statements	400	400
	----	----

14. Staff costs

The average head count of employees during the year was Nil (2024: Nil).

No employee received employee benefits of more than £60,000 during the year (2024: Nil).

15. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

16. Tangible fixed assets

	Land and buildings	Fixtures and fittings	Equipment	Tree House	Total
	£	£	£	£	£
Cost
At 6 April 2024 and 5 April 2025	511,519	27,886	4,144	30,000	573,549
	---------	--------	-------	--------	---------
Depreciation
At 6 April 2024	80,959	23,603	3,984	30,000	138,546
Charge for the year	9,228	1,072	16	–	10,316
	---------	--------	-------	--------	---------
At 5 April 2025	90,187	24,675	4,000	30,000	148,862
	---------	--------	-------	--------	---------
Carrying amount
At 5 April 2025	421,332	3,211	144	–	424,687
	---------	--------	-------	--------	---------
At 5 April 2024	430,560	4,283	160	–	435,003
	---------	--------	-------	--------	---------

17. Stocks

	2025	2024
	£	£
Finished goods and goods for resale	3,118	3,118
	-------	-------

18. Debtors

	2025	2024
	£	£
Trade debtors	–	3,214
Amounts owed by Kirkton Trading Ltd	678	5,777
Other debtors	532	356
	-------	-------
	1,210	9,347
	-------	-------

19. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	26,610	23,459
Trade creditors	4,534	13,851
Other creditors	37,962	45,193
	--------	--------
	69,106	82,503
	--------	--------

20. Analysis of charitable funds

Unrestricted funds

	At 6 April 2024	Income	Expenditure	Transfers	At 5 April 2025
	£	£	£	£	£
General funds	(11,118)	27,866	(31,649)	(2,009)	(16,910)
Plot 1	60,000	–	–	–	60,000
Cafe Ceardach assets and improvements	267,278	–	–	–	267,278
Revaluation reserve	50,000	–	–	–	50,000
	---------	--------	--------	-------	---------
	366,160	27,866	(31,649)	(2,009)	360,368
	---------	--------	--------	-------	---------

	At 6 April 2023	Income	Expenditure	Transfers	At 5 April 2024
	£	£	£	£	£
General funds	3,621	20,867	(28,348)	(4,296)	(8,156)
Plot 1	60,000	–	–	–	60,000
Cafe Ceardach assets and improvements	264,316	–	–	–	264,316
Revaluation reserve	50,000	–	–	–	50,000
	---------	--------	--------	-------	---------
	377,937	20,867	(28,348)	(4,296)	366,160
	---------	--------	--------	-------	---------

Restricted funds

	At 6 April 2024	Income	Expenditure	Transfers	At 5 April 2025
	£	£	£	£	£
Restricted Fund	–	829	(2,838)	2,009	–
	----	----	-------	-------	----

	At 6 April 2023	Income	Expenditure	Transfers	At 5 April 2024
	£	£	£	£	£
Restricted Fund	(1,334)	25,100	(28,062)	4,296	–
	-------	--------	--------	-------	----

21. Related parties

Kirkton Trading Ltd is a subsidiary of Lochcarron Community Development Company .

Lochcarron Community Development Company owns 100% of the shares of Kirkton Trading Ltd.