REGISTERED COMPANY NUMBER: SC074822 (Scotland)

REGISTERED CHARITY NUMBER: SC023789

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2025

for

Govan Workspace Limited

Page

Report of the Trustees

1

to

8

Report of the Independent Auditors

9

to

11

Statement of Financial Activities

12

Statement of Financial Position

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

to

28

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).

The financial statements comply with the Charities and Trustees Investments (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The primary objective of Govan Workspace is to relieve poverty among the residents of the Glasgow City Council wards of Govan and Craigton without distinction as to race, age, sex, creed or any other expression of discrimination. The charity aims to advance education, particularly among young people and the unemployed and to promote and provide training in skills of all kinds, particularly those relevant to employment or self-employment. It seeks to promote, establish and operate other schemes of a charitable nature for the benefit of the community and to promote trade and industry for the benefit of the general public.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity's principal activity, primary source of income and main expenditure has been in respect of the provision and management of lettable space to the small business community at its various sites - Six Harmony Row, Elderpark Workspace, Alexander Stephen House, Fairfield and Holmfauld Road. It has also continued to provide various facilities free of charge to the local community, such as meeting space and the garaging of community-owned vehicles, and to support community campaigns when called upon to do so. In the past 12 months, the charity has joined forces with local people to raise questions concerning radical plans by the city council to alter the Govan streetscape, which people consider damaging to the local economy and for which there had been no proper consultation.

Development work priorities

An important work priority in 2024/25 has been the charity's continuing investment of time and money in the redevelopment of the former Govan Old church, work shared with sister charity Govan Heritage Trust. The present focus is on the Phase 2 proposal to construct an extension to the A-listed former church, which will allow the Victorian building to function legitimately for the first time as a lettable, income-earning venue. After repeated, financial setbacks which were sparked by the Covid lockdowns and the rampant inflation that ensued, there was good news in 2024/25 when a number of charitable trusts visited the site and committed support. The Phase 2 contract is now expected to be on site in November 2025. The overall aim of Govan Workspace's investment in Govan Old is to create a viable community-owned enterprise that generates long-term benefits of a social, economic, educational and environmental nature.

On the environmental front, fresh progress has also been made with work to install a River Source Heat Pump that will provide heating to the Victorian building. For almost two years, efforts have been underway to solve a number of unexpected wayleave problems that were obstructing plans by Scottish Power to install a new supply to the Govan Old site. With these resolved, the heat pump is now expected to be operational before the end of 2025. The new plant will reduce Govan Old's emissions from 189 tonnes per annum to just 13.

Govan Old

After years of setbacks, it is pleasing to report that an announcement confirming the date when construction work will start on the new extension building at Govan Old is expected to be possible within weeks, following a number of fast-moving developments in 2025. A deadline of 3 October has been set for the return of tenders for the building contract, leaving the way open for an appointment later that month and an expected site start in November. The progress follows a rapidly improving situation on the funding front during the first half of the year when a number of charitable trusts visited the project and committed support. The funding package was finally completed in September.

Pat Cassidy, Managing Director of Govan Workspace and a trustee of Govan Heritage Trust recounts, below, the massive funding difficulties that were faced and how they were overcome.

"I can't help thinking back to just the start of this year when things seemed so hopeless, and the grand journey we'd embarked upon a decade earlier had run out of road. Our plan had been to construct an extension building that would rescue and breathe new life into Govan Old, but despite securing £1.5m from the Regeneration Capital Grant Fund, the project faced a massive shortfall of £650,000 that went all the way back to Covid, the lockdowns and the rampant inflation that followed. In early 2025, news then leaked out to us that RCGF, which was in its last year, was preparing plans to reallocate unspent funds which meant, suddenly, Govan Old was in a critical position. We kept that to ourselves.

At that point it would have been so easy to throw in the towel. But we made up our minds to give it one last push, because there was a conviction this would be the very last chance to build an extension. The loss of RCGF money would be catastrophic and likely terminal. To start fundraising all over again was unthinkable, especially given how difficult the community sector had become. Besides, how could we consider giving up when community activity at Govan Old was at an all-time high? Following the opening of Govan's new bridge in late 2024, visitor numbers and interest in the project had gone through the roof. The place was buzzing, all made possible by our volunteers who had turned out in numbers and done an amazing job handling unprecedented visitor traffic while delivering a customer service second to none. We were so lucky to have them, and they were already preparing for a bumper 2025 season.

One final almighty push had to happen, and I'm so glad it did. Because, to our surprise, bewilderment and delight, 2025 was to usher in one miracle after another. In February we got news the National Lottery Heritage Fund had approved a grant of £250,000, which turned out to be a real game-changer and such a vote of confidence in Govan Old that other funders were to take heed. The William Grant Foundation did just that and awarded us £75,000 in March. And our good fortune didn't end there. In May we received a grant of £150,000 from the Garfield Weston Foundation. In June Sir Alex Ferguson, a remarkable man who has never forgotten his Govan roots and who'd supported us in the past, donated £50,000. Then, in July we received £30,000 from the Swire Trust.

It was all breathtaking stuff and a turnaround no one could have predicted. We were almost there but not quite. The last piece of the funding jigsaw was to come from my own board, Govan Workspace, which made a decision to invest whatever was needed to bridge the final gap. The company didn't have that level of cash to hand but was prepared to borrow in order to ensure the project went ahead. A loan application was made to the Architectural Heritage Fund and was approved on 17 September 2025. For the very first time, the extension package was complete.

It would have been such a tragedy if the extension plan had been abandoned. It has always been critical to Govan Old's viability, not just by generating money to meet overheads but, more importantly, by allowing the Victorian building to function legitimately as a public venue for the first time, with new toilets, disabled access and other facilities it did not possess. The extension paves the way for Govan Old to become a proper museum rivalling any other in Glasgow.

Of all the jobs we've tackled in Govan over the past four decades, this has certainly been the most difficult nut to crack - more than a decade of highs and lows, stops and starts. It has demanded a marathon effort on the part of everyone involved - our tireless volunteers who turn out day after day, season after season to keep the doors open, the visitors happy and the building alive; the members of Govan Heritage Trust who have taken on responsibility for the property in the most difficult of circumstances; and the board of Govan Workspace which has invested time and money in a project it considers integral to the regeneration of Govan.

We're very lucky to have such people in abundance here in Govan, individuals who simply don't know when they're beaten. Collectively, their actions and resolve have rescued the dreams and aspirations associated with Govan Old that were so close to being lost. As the Govan Old project now moves forward and takes up its rightful place at the heart of regeneration and Govan's future, they will all be able to look back with immense satisfaction and pride. "

Community Heritage

As predicted in our report a year ago, the new bridge connection to the West End, which opened in September 2024, has been a game changer for the Govan town centre, increasing footfall for the benefit of local shops and services. It has had a significant impact on numbers at the heritage attractions of Govan Old and Fairfield. Govan Old was visited by 17,499 people from 1 April to 21 September 2025, already more than the 15,866 visitors in 2024. At Fairfield for the same period there were 5,551 visitors, which compared favourably to 5,997 for the whole of 2024. There is already an abundance of evidence pointing to the positive regeneration impact of the £29.5m bridge infrastructure.

Govan Workspace would draw attention to the role it played in demonstrating the need, in the first place, for a cross-river connection between Govan and Partick, which emerged from the charity's summer ferry operations between 2013 and 2019 when more than 200,000 passengers travelled on the 12-seater vessel. The ferry figures were used by Glasgow City Council to demonstrate the business case for a bridge. The Council has recently been pleased to announce that there were 1.4 million crossings in the bridge's first operating year.

FINANCIAL REVIEW

Financial position

One of the underlying challenges that is discernible from a reading of this year's accounts resonates with the claims heard from so many small businesses these days that they are battling to cope with a relentless rise in operating costs. This is not a single-year event but one that has been happening for a while and might be traced back to Covid and its aftermath when higher than average inflation increases appear to have become normalised. It is difficult to remember a time when standard items of business expenditure could suddenly soar without any reasonable explanation. Look no further than energy bills. Another shocker for Govan Workspace this year is insurance where our premiums have rocketed by 25%, though we have no idea why.

Income and expenditure to 31 March 2025

Income

Rental income to 31 March 2025 increased marginally by £9,529 to £1,162,172. When we add donations of £20,846 and subscriptions of £31, total business income rose to £1,183,049, which is £20,809 above the total for 2024.

It is pleasing that rental income, our principal business revenue, has remained so steady for a third consecutive year - £1,157,423 in 2023, £1,152,643 in 2024 and now £1,162,172 - reflecting stable occupancy across all sites.

That our sites continue to do so well is much more than just a financial benefit. It touches at the very heart of what we seek to achieve as a social enterprise committed to social and economic regeneration. It is satisfying to reflect that, having weathered some of the worst economic circumstances of recent times, our four sites are once again operating close to full capacity, providing accommodation and services to more than 100 businesses which in turn employ some 500 people. The impact all this makes in the local economy is tangible and will serve Govan long into the future.

Expenditure

The year's accounts show operating expenditure of £956,771, loan interest of £68,450 and depreciation of £37,639, bringing total business expenditure to £1,062,860. The figure marks a substantial increase of £87,552 over the previous year and is attributable to larger than average rises in specific budgets - insurance by £8,619 (25%), refuse disposal by £5,683 (33%), electricity by £10,079 (13%), and advertising & publicity by £5,489 (58%). Our expenditure also includes a donation of £8,615 to Govan Heritage Trust to assist with operating costs at Govan Old.

Most significant of all, however, are salaries and security wages which rose respectively by £33,212 (9%) and £9,101 (10.4%). Together, these account for around half of the year's increased expenditure and make the biggest dent on profit. At the same time, we should point out that the rise in wages was planned. It forms part of a strategy agreed by the board to increase salaries in order to catch up after years when the charity's wages lagged behind the market. Wages have now risen by at least 7% in each of the past three years.

With total business revenue of £1,183,049 and expenditure of £1,062,860, the profit for 2024/25 is £120,189, a drop of £66,743 (35%) from 2024's £186,932 and a £234 fall in restricted income.

When the result for the year is added to the cumulative reserves as at 31 March 2024, the new reserves figure for 31 March 2025 rises to £7,256,866. There is an additional reserve of £20,748 in restricted funds, made up of money left in the ferry account.

Balance sheet at 31 March 2025

Turning to the balance sheet, fixed assets has risen by £34,866, made up of £72,505 of improvement works less a cumulative depreciation charge of £37,639. The charity's main property assets are:

Value

Site

Last independently valued

£2,550,000

Elderpark Workspace

October 2021

£700,000

Harmony Row

April 2012

£695,000

Alexander Stephen House

April 2012

£1,950,000

Fairfield

April 2021

£1,900,000

Land at Holmfauld Rd

June 2019

£7,795,000

sum

Current Assets drops to £203,725 from £298,933, and Creditors due within one year increases to (£428,409) from (£393,694), leaving Net Current liabilities of £224,684, poorer by £129,923 from 2024. The same pattern appears in Total Assets less Current Liabilities which falls to £7,787,936 or by £95,056.

However, the trend moves into reverse when Amounts Falling Due After More Than One Year is taken into account, where the debt falls from £725,567 to £510,322, an improvement of £215,245 because of loans that will be expiring in the near future, from November 2026.

Accordingly, the company's Net Assets for the year to 31 March 2025 has increased and now stands at £7,277,614, up by £120,189.

Principal funding sources

Govan Workspace's principal income has been generated once again from the letting of workspace to small businesses, and its main expenditure was in respect of the delivery of the charitable activities described in this report.

Reserves policy

It is the policy of the company to maintain funds at a level to meet the current and future activities of Govan Workspace Limited.

The total level of unrestricted reserves at 31 March 2025 was £7,256,866 comprising of £7,255,511 general funds and £1,355 of members subscriptions.Total restricted funds at 31 March 2025 amounted to £20,748.

Going concern

The trustees are happy to report to the members their satisfaction with the year's results and to advise that the board will continue to monitor and review income, expenditure and assets with a view to ensuring financial affairs are conducted in a prudent and effective manner. There are no concerns regarding the future of the charity which has the support of its bankers, staff, tenants and the wider community.

FUTURE PLANS

With a view to ensuring the charity's long-term profitability and its positive impact on the local economy achieved through high occupancy levels at all sites, an important investment priority will continue to be the upgrading of premises and facilities.

Govan Workspace will also continue to invest resources in the A-listed Govan Old because it believes this particular community asset can make a significant contribution to local regeneration. The immediate priority is construction of an extension building which is considered necessary to the viability of the project.

Sucession planning

Acknowledging the advancing years of some senior staff and board members, the directors continue to address the subject of succession planning at their regular meetings. Good progress is being made. The new Administration Manager has been in post now for almost two years, replacing the previous incumbent who had held the job since the start of the charity. Earlier this year a member of property staff who was beyond retirement age made a decision finally to retire and has been replaced by a younger person.

Over the past three years, four new directors have been recruited to replace older members who have stepped down. Succession planning will continue to feature as an agenda item at board meetings during the coming year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Govan Workspace Limited, operating under its Memorandum and Articles of Association, has conducted charitable activities in the United Kingdom since 1981.

Trustees

In accordance with the company's Articles of Association, trustees are recruited from the membership of the company. Membership is open to those who subscribe to the objectives of the company; have served twelve months as a member and pay annual membership fees of £1.

Stephen Driscoll and Bill Pritchard are to retire at the forthcoming Annual General Meeting. Both, being eligible, propose to stand for re-election.

Organisation

The board of trustees has overall responsibility for the strategic direction and administration of the company. Day to day operations are managed by the managing director/chief executive officer Mr Pat Cassidy.

Induction and training of new trustees

New trustees are briefed on their legal obligations under charity and company law, the Scottish Charity Regulator's guidance on trustee duties, and informed of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the briefing they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Key management remuneration

The trustees consider that the trustees and the managing director / CEO comprise the key management personnel in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and do not receive remuneration for their role, except for the managing director / CEO who receives remuneration for his full time role in accordance with the company's Articles of Association. Details of trustees and directors' remuneration and expenses are reported at note 10 in the financial statements. The remuneration policy for all staff is to match the skills, experience and qualifications of each position with local market levels as far as possible.

Related parties

The charity and the trustees are also involved with another charity, Govan Heritage Trust, which has common trustees. Govan Workspace Limited, provide support to this charity by means of administration services and help securing lending facilities and grant funding.

Risk management

The trustees have a risk management strategy which comprises:

- an annual review of the principal risks and uncertainties that the charity faces;

- the establishment of policies, systems and procedures to mitigate those risks identified in the annual review and;

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

The main uncertainty is the short term nature of most tenants' leases, although tenants generally require such arrangements to provide the flexibility they need.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC074822 (Scotland)

Registered Charity number

SC023789

Registered office

6 Harmony Row

Glasgow

G51 3BA

Trustees

E McGowan

P Cassidy

W Pritchard

B Douglas (resigned 24.6.24)

G Wills

F Pagan

C Quigley

B Baker

S Driscoll

Miss K Bonanno

Miss E H Clark

Miss R McGeachan

Chief Executive Officer

P Cassidy

Company Secretary

P Cassidy

Auditors

O'Haras Accountants Limited (Statutory Auditor)

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

Solicitors

MacRoberts

Capella Building

60 York Street

Glasgow

G2 8JX

Bankers

Unity Trust Bank

Nine Brindleyplace

Birmingham

B1 2HB

Charity Bank

Fosse House

182 High Street

Tonbridge

TN9 1BE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Govan Workspace 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).

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;

-

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-

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, O'Haras Accountants Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

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

Approved by order of the board of trustees on 15 September 2025 and signed on its behalf by:

P Cassidy - Secretary

Opinion

We have audited the financial statements of Govan Workspace Limited (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	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; the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities and Trustees Investment (Scotland) Act 2005 requires us to report to you if, in our opinion:

-

the charitable company has not kept proper and adequate accounting records; or

-

the financial statements are not in agreement with the accounting records; 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 prepare the financial statements in accordance with the smallcompanies’ regime and take advantage of the small companies’ exemptions in preparing thedirectors’ report, included within the trustees’ annual report, and from the requirements to prepare astrategic report.

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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We gained an understanding of the legal and regulatory framework applicable to the charity and the property rental industry in which it operates. We made enquiries of management as to whether there were any known or suspected instances of non-compliance with laws and regulations or fraud, and reviewed available board minutes for any indication of such matters.

- We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations.

- We considered laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the Charities Accounts (Scotland Regulations 2006 (as amended) and the Charities and Trustees Investment (Scotland) Act 2005 and Charities SORP. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement components. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of relevant third parties.Part of these tests also included considering the regulations of the Office of Scottish Charity Regulator and other regulations like GDPR, anti money laundering, health and safety and the property rental sector.

- We considered how fraud might occur in this company and designed our tests accordingly.

- As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals, reviewing for any large or unusual transactions, looking for evidence of window dressing and any transactions outwith the charity's normal operations, focusing on any accounting estimates and judgements and any undisclosed related party transactions and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

John O'Hara (Senior Statutory Auditor)

for and on behalf of O'Haras Accountants Limited (Statutory Auditor)

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

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

26 September 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

20,877

-

20,877

20,342

Charitable activities

3

Charitable activities

1,162,172

-

1,162,172

1,152,643

Total

1,183,049

-

1,183,049

1,172,985

EXPENDITURE ON

Raising funds

4

47,346

-

47,346

43,735

Charitable activities

5

Charitable activities

1,015,514

-

1,015,514

942,238

Total

1,062,860

-

1,062,860

985,973

NET INCOME

120,189

-

120,189

187,012

RECONCILIATION OF FUNDS

Total funds brought forward

7,136,677

20,748

7,157,425

6,970,413

TOTAL FUNDS CARRIED FORWARD

7,256,866

20,748

7,277,614

7,157,425

2025

2024

Notes

£

£

FIXED ASSETS

Tangible assets

13

8,012,620

7,977,753

CURRENT ASSETS

Debtors

14

19,470

24,687

Cash at bank and in hand

184,255

274,246

203,725

298,933

CREDITORS

Amounts falling due within one year

15

(428,409

)

(393,694

)

NET CURRENT ASSETS

(224,684

)

(94,761

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,787,936

7,882,992

CREDITORS

Amounts falling due after more than one year

16

(510,322

)

(725,567

)

NET ASSETS

7,277,614

7,157,425

FUNDS

21

Unrestricted funds:

General fund

7,255,511

7,135,353

Members' subscriptions

1,355

1,324

7,256,866

7,136,677

Restricted funds

20,748

20,748

TOTAL FUNDS

7,277,614

7,157,425

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 15 September 2025 and were signed on its behalf by:

P Cassidy - Trustee

Cash flows from operating activities

Cash generated from operations

1

254,372

295,594

Interest paid

(68,450

)

(83,346

)

Finance costs paid

(843

)

(866

)

Net cash provided by operating activities

185,079

211,382

Cash flows from investing activities

Purchase of tangible fixed assets

(72,505

)

(35,571

)

Net cash used in investing activities

(72,505

)

(35,571

)

Cash flows from financing activities

Loan repayments in year

(202,565

)

(193,910

)

Net cash used in financing activities

(202,565

)

(193,910

)

Change in cash and cash equivalents in the reporting period

(89,991

)

(18,099

)

Cash and cash equivalents at the beginning of the reporting period

274,246

292,345

Cash and cash equivalents at the end of the reporting period

184,255

274,246

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

2025

2024

£

£

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

120,189

187,012

Adjustments for:

Depreciation charges

37,639

32,620

Interest paid

68,450

83,346

Finance costs

843

866

Decrease in debtors

5,217

27,985

Increase/(decrease) in creditors

22,034

(36,235

)

Net cash provided by operations

254,372

295,594

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

274,246

(89,991

)

184,255

274,246

(89,991

)

184,255

Debt

Debts falling due within 1 year

(203,517

)

(12,681

)

(216,198

)

Debts falling due after 1 year

(725,567

)

215,245

(510,322

)

(929,084

)

202,564

(726,520

)

Total

(654,838

)

112,573

(542,265

)

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The charity meets the definition of a public benefit entity under FRS102. The charity has availed itself of paragraph 3 (3) of Schedule 4 of the Companies Act 2016 and adapted the Companies Act formats to reflect the special nature of the charity's activities.

Going concern

The trustees continue to be satisfied that the charitable company has adequate resources to continue in operation for the next 12 months. Consequently, the trustees consider it appropriate to prepare the financial statements on a going concern basis.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements include estimation of any impairment of the property values currently included in the financial statements including the estimation of their useful life and future economic benefits.

Income

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

The charity's main source of income is from the rental of workspace at its various sites.

Grants receivable

Income from government and other grants, whether 'capital' or 'revenue' grants is also recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

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 costs 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.

- Raising funds costs comprises of one third of management staff's salaries and other benefits, being the estimated portion of time spent on such matters, as detailed at note 4.

- Charitable activities costs comprises of costs incurred by the charity in the delivery of its day to day activities and services.

- Other projects expenditure comprises of direct costs for Restricted Fund activities.

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 activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Tangible fixed assets

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, excluding land and buildings, over their estimated useful live, using the following annual rates:

Land & buildings Developed Sites

- not provided

Land & buildings For Future Development

- not provided

Improvements to property

- 15% on reducing balance

Equipment & fittings

- 15% on reducing balance

Computer equipment

- 25% on reducing balance

Land and buildings owned by the charity are accounted for as tangible fixed assets rather than investment properties, as they are held in pursuit of the charity's primary objectives, rather than for their investment potential. Such assets are initially measured at their historical cost on the Balance Sheet but then revalued to fair market value and have been divided between 'developed sites' being those workspace sites which provide the charity's rental income receipts and 'sites for future development' which are the sites at Holmfauld Road and at Greenfield, Govan.

Land and buildings are not depreciated as they are revalued annually by the directors, who consider their residual value to be equal to their fair value. Any adjustment in value from the previous year is adjusted by way of a revaluation loss/gain adjustment through the Statement of Financial Activities. In the directors' opinion, the use of a policy of revaluation provides more relevant information about the value of such assets owned by the company.

All other tangible fixed assets are included at cost less depreciation and impairment.

Impairment of other tangible fixed assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately.

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.

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

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.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Trade and other debtors are recognised at the settlement amount due less impairment losses for bad and doubtful debts.

Cash at bank and in hand

Cash at bank and cash in hand includes cash for the various projects run by the charity, together with the overdraft facility utilised for the day to day running of the charity.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

20,846

9,566

Grants

-

10,745

Subscriptions

31

31

20,877

20,342

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

2025

2024

£

£

Townscape Heritage Trust (Fairfield Gate Restoration)

-

10,745

3.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Rents and services

Charitable activities

1,149,057

1,138,492

Sundry income

Charitable activities

13,115

14,151

1,162,172

1,152,643

4.	RAISING FUNDS

Raising donations and legacies

2025

2024

£

£

Trustees' remuneration etc

20,548

19,848

Staff costs

26,798

23,887

47,346

43,735

Raising funds costs comprises of 1/3 of management staff's salaries and other benefits.

5.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 6)

note 7)

Totals

£

£

£

Charitable activities

1,006,764

8,750

1,015,514

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

Direct costs

£

Salaries and wages

491,573

Overhead & support costs

507,661

999,234

7.	SUPPORT COSTS

Governance

costs

£

Charitable activities

8,750

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

2025

2024

Charitable

Total

activities

activities

£

£

Auditors' remuneration

3,750

4,000

Auditors' remuneration for non audit work

5,000

4,750

8,750

8,750

8.	NET INCOME/(EXPENDITURE)

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

2025

2024

£

£

Depreciation - owned assets

37,638

32,620

9.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the charity's auditors for the audit of the charity's financial statements

3,750

4,000

Auditors' remuneration for non audit work

5,000

4,750

10.	TRUSTEES' REMUNERATION AND BENEFITS

2025

2024

£

£

Trustees' salaries

55,272

53,426

Trustees' social security

6,372

6,117

61,644

59,543

The trustees' salaries above reflects sums paid to Mr P Cassidy for his role as managing director / CEO. This has been paid under the authority of the charity's Articles of Association.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.