The Trustees present their annual report and financial statements for the period ended 31 July 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 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 purpose of Inclusive Farm Scotland at MacRobert Limited (IFSAM) is to establish a working farm environment with educational facilities to offer people with diverse needs, living in Scotland, the ability to develop skills and experience to achieve long-term sustainable employment.
IFSAM became a registered charity on 15th January 2025 and changed its year end to 31st July to better match the business cycle. The principal objectives in the Articles of Association are:
The advancement of learning (including the provision of training, information and advice);
To increase opportunities and choice for gainful employment for people with disabilities, additional needs and difference;
To co-create opportunities for social interaction for people with disabilities, additional need and difference;
To empower and champion individuals with disability, additional needs and difference to take ownership of their future.
IFSAM will deliver its purpose by creating a working farm at Newton of Drummy, Tarland, Aberdeenshire, which shall include livestock for education in animal care, and welfare and polytunnels for horticultural and market garden courses. There will be facilities to provide training for cottage industry and rural crafts. The farm has been provided by the MacRobert Trust under a temporary licence, while a more permanent and long-term arrangement is agreed.
After the year end a formal licence was granted to the charity for seven years from 1st July 2025, under a rent free arrangement.
IFSAM is the brainchild of Mike Duxbury, a blind farmer, who ran a similar but smaller inclusive farm in England. He is IFSAM's Chief Executive Officer. Having relocated to Aberdeenshire, Mike Duxbury, together with the Trustees, are working to establish the charity to deliver an inclusive farm in Scotland.
The Board of Trustees recognise that the progress of the charity in 2025 from achieving charity status to having a watertight building by the autumn has only been possible by the overwhelming generosity of many donors. The project has gathered wide support from the local community. Starting with an incredible £10,000 donation from Ian McCombie and family, this has taken the charity donation and grant income to over £132,000 in the period. Aberdeenshire Council (Employability Grant Programme), Garfield Weston Foundation, Lantra, Shepherd & Wedderburn and NFU Mutual, together with many other donors have enabled IFSAM to now take in and deliver real change to students lives.
The current farm comprises a farmhouse and old traditional stone-built outbuildings. The first phase of the project is a capital phase to establish the infrastructure. The old farm steading was successfully removed, requiring specialist asbestos contractors. The time taken to grant planning permission created some delay in the project timeline, but by December 2025, the watertight shell of the combined livestock and learning centre has been constructed. Additional cost has been incurred as the hybrid livestock/learning centre is not being treated as an agricultural building. The next phase is to fit out the welfare facilities, learning spaces and final works to make the centre able to accept students in larger numbers. Further fundraising will be required to achieve this, but the Trustees in the meantime are working towards a complex that will allow restricted use.
With the charity status and a steady flow of funding, the Trustees were able to confirm the appointment of Mike Duxbury as its first employee. Up to this point, Mike Duxbury had been working unpaid to establish the charity in Scotland.
In the period to 31st July 2025, income totalled £133,130, and this enabled the first phase of the capital project to be completed. IFSAM made a surplus of £107,169 for the period.
As a newly established company, there are no reserves. As the charity grows the Trustees will approve a reserves policy that will allow the charity to have resilience against likely anticipated scenarios.
The Trustees maintain a risk register. The principal risks identified are associated with any start-up organisation. These relate to: fundraising for the capital phase; completion of the building works, and; establishing the pipeline of initial clients. As noted in the Trustees report, the costs of asbestos clearance and delays in planning mean that the charity has not been able to accept students in the volumes anticipated at this point, which as a consequence means revenues are lower than projected in the business plan. With the considerable ongoing media interest generated in the project, additional fundraising efforts are being made to take the learning centre to final completion and the Trustees are carefully managing cash-flow to this end. The project management of the new buildings will be undertaken by Mike Duxbury and Kevin Gilbert, a fellow Trustee.
Since the year end, students have been accepted onsite, but in a very restricted capacity. The first livestock has been accepted on the farm and some of the fields have been reseeded. Further work is required in some of the fields to restore fences and remove wind blown trees, and the charity is very grateful for the continued support of the MacRobert Trust.
IFSAM is a company limited by guarantee and from January 2025 has charity status. The charity is governed by its Articles of Association and a copy is available on the Companies House website.
A diverse board of Trustees have been recruited bringing a broad range of skills to the project. The Trustees may change as the charity establishes and begins trading. Regular Trustee meetings are held as the project progresses.
Since the year end there have been some Trustee changes. Ruth McGowan was appointed and Duncan Ross, Jenna Ross, Liz Barron-Majerik and Emma Robertson have resigned. The Board of Trustees remain very grateful to all those Trustees who were integral to the creation of the charity and its achievements to date.
Trustee training is provided with the use of OSCR resources and other information outlining director's duties and responsibilities.
The Trustees report was approved by the Board of Trustees.
I report on the financial statements of the charity for the period ended 31 July 2025, which are set out on pages 5 to 13.
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 period. All income and expenditure derive from continuing activities.
Inclusive Farm Scotland at MacRobert Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Newton of Drummy, Tarland, Aboyne, AB34 4YS.
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 £.
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.
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. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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 stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of employees during the period was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
There were no disclosable related party transactions during the period.