REGISTERED COMPANY NUMBER: SC364744 (Scotland)

REGISTERED CHARITY NUMBER: SC40828

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

LESMAHAGOW DEVELOPMENT TRUST

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

20

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report and financial statements of the charity for the year ended 31 August 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) as amended for periods commencing on or after 1 January 2016.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Objectives of the charity as defined in the memorandum of association are to :-

(a) engage in the economic, environmental and social regeneration of the community of Lesmahagow.

(b) promote the social economy and social enterprise within Lesmahagow for the benefit of the general public.

(c) promote education, awareness and citizenship; in particular promote opportunities for learning for the benefit of the general public, including skills which will assist the participants in obtaining paid employment.

(d) improve the environment in Lesmahagow through the provision, maintenance and/or improvement of public open space, amenities and other environmental and regeneration projects (but subject to appropriate safeguards to ensure that the public benefit so arising clearly outweigh any private benefit thereby conferred on private owners).

(e) provide within Lesmahagow recreational facilities or organise activities, including the arts and/or culture, with the object of improving the conditions of life of the persons for whom the facilities or activities are primarily intended.

(f) develop and engage in anti-poverty initiatives and improve the general well-being and health of the community.

(g) preserve, for the benefit of the community, the historical, architectural and constructional heritage that may exist in or around Lesmahagow.

(h) promote, establish, operate and/or support other schemes and projects of a charitable nature for the benefit of the community.

These are a very broad set of objectives which enable the Trust to deliver activities for the benefit of the local community across a spectrum of areas including poverty, sports, culture and environment.

The Trust's Vision is to deliver sustainable community facilities and activities for the benefit of everyone living in Lesmahagow and the surrounding area, providing opportunities and reducing loneliness by improving intergenerational links. To deliver this vision, the Trust is working towards the following set of Objectives: to generate an income to be used for the benefit of the local community, to distribute grants to community groups, to address loneliness through provision of facilities and activities for older people, to maintain sufficient staff levels to effectively run facilities and services.

Significant activities

The trustees have paid due regard to guidance issued by the charity regulator in deciding what activities the Trust should undertake and/or be involved with.

During the year the Trust engaged in various activities to achieve its objectives which included the following :-

Grow A Lot Lesmahagow

The allotment project continues to be a significant project for the Trust. The site attracted new Plotholders, including families, looking for a safe place to enjoy nature and grow their own produce.

Fountain Hall

In June 2023 the Trust took a short-term lease of the Fountain Hall in the village. Following the conclusion of the lease we have been successful in obtaining the premises via a community asset transfer on a 25 year full-repairing lease basis. The Trust's office and activities will be based in the hall along with operating as a community hall for hire. With the availability of the hall, we no longer need to utilise the main street premises as an activity centre and this will now be re-purposed as a multi-unit retail facility.

Retail space

Work is ongoing to obtain the necessary funding to refurbish the premises on Abbeygreen into a multi-retail space, with plans for the return of a butcher shop to the village for the first time in over 15 years along with 3 pop-up retail spaces to be utilised on a short-term basis when required.

Netherburn West Renewable Project

The Trust's wholly owned subsidiary, Lesmahagow Limited, now owns 27% of the Netherburn West Renewable Project. This is in addition to the 25% stake in Stewart Energy.

The Trust also continues to receive income from the commercial investment in a renewable energy project.

Public benefit

The charity provides public benefit by the various activities and projects undertaken in accordance with the charitable objectives and aims set out in the governing document.

Grantmaking

In addition to the return on the investment in the wind turbine scheme, Communities Benefits monies are paid by Stewart Energy to the Trust. This money is used to provide locally constituted groups with small grants.

Volunteers

The Trust is most-appreciative of the role played by volunteers in helping to successfully operate its various activities. Work is ongoing to raise the profile of volunteering within the community and a new volunteering policy is in place to protect the rights of volunteers.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

We will continue to grow our partnerships leading to locally improved facilities, services and projects. Our current focus is running the community hall and the refurbishment of our retail premises located in Abbeygreen. Our work on upgrading the local play park in partnership with South Lanarkshire Council, Lesmahagow Community Council and local fundraisers is now complete and all designated funds have been transferred to Lesmahagow Community Council to make payments on behalf of the groups involved.

The Small Grants Scheme continues to be accessed by local constituted groups operating for the benefits of members.

We currently have two rental properties generating income to be used to support our charitable objects.

We are working on a local community and place plan, and this should be available for circulation in late 2025. This will help guide our work for the next 5-10 years.

In this financial year we established the Lesmahagow Community Impact Award. The award seeks to highlight the work of those in the village who give their time and effort to make a difference through volunteering. The 2025 recipient was Betty McCann who has volunteered with the Lesmahagow Old Age Pensioner Association for more than 40 years. Whilst a lot of Betty's work has gone under the radar the difference she has made to individuals through her volunteering is immeasurable and represents everything we hope to highlight with the award.

FINANCIAL REVIEW

Financial position

Total income for the year was £328,264 (2024 - £205,578). Income from donations and legacies increased by £58,263 to £115,429 (2024 - £57,166) which includes a donation of £102,000 (2024 - £50,000) from wholly-owned subsidiary, Lesmahagow Ltd.

Total expenditure for the year was £328,839 (2024 - £193,534. Charitable activities at the activity centre cost £142,426 (2024 - £111,833) with these areas of activity accounting for 43% (2024 - 58%) of total expenditure for the year.

Net expenditure for 2025 was £575 (2024 - net income £12,044).

At the end of the year the Trust had total funds of £357,919 of which £201,145 was unrestricted (2024 total funds - £358,494).

Principal funding sources

During the year the Trust received a donation of £102,000 (2024 - £50,000) from its wholly owned subsidiary, Lesmahagow Ltd.

Reserves policy

It remains the policy of the Trust that unrestricted funds which have not been designated for a specific purpose should be maintained at an appropriate minimum level. The trustees consider that holding reserves at an appropriate level will ensure that in the event of a significant drop in funding, they will be able to continue the Trust's current ongoing activities whilst consideration is given to ways in which additional funding may be raised.

The trustees are satisfied with the level of reserves maintained throughout the year.

Going concern

These financial statements are prepared under the going concern basis of accounting and the trustees are not aware, at the time of approval of these financial statements, of any circumstance which bring that into question.

Users of the accounts are also directed to the Trust's going concern accounting policy on the trustees consideration of the suitability of and continued application of the going concern basis of accounting to the financial statements.

Funds in deficit

The Trust had no funds in deficit at the end of the year under review or at the end of the previous financial year.

FUTURE PLANS

The trustees intend to continue building the profile and revenue of the Fountain Hall through hires by the community and running community events.

The soon to be completed local place plan will guide much of the future work of the Trust over the next few years. By having identified community priorities through consultation a plan for what the village needs, Lesmahagow Development Trust will now work towards delivery of some of these projects.

Our recently hired youth development officer will be tasked with providing support and activities to those under 18. Whilst our Development officers will focus on over 18 activity.

Work is ongoing to refurbish Billy's as a multi retail space with a permanent butcher facility and pop up shops available for short term hire. After having some structural issued identified we are now moving forward with the strip out of the building.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Lesmahagow Development Trust's governing document is its Memorandum and Articles of Association.

Charity constitution

The charity is constituted as a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Under the Articles of Association the members may elect any member as trustee (director) at each Annual General Meeting. The Trustees (directors) may, at any time, appoint any member to be a trustee (director) and also have powers to co-opt, at any time, any non-member to be a trustee (director) on the basis that he/she has been nominated by a body with which the company has close contact in the course of its activities or on the basis that he/she has specialist experience and/or skills which could be of assistance to the directors.

Organisational structure

All staff are now based in the Fountain Community Centre. The Activities Manager runs various activities and provides administrative support to the charity. The Development Officers built partnership working opportunities and generate funds via grants and revenue streams to enable us to identify and develop community projects. The youth development officer is responsible for identifying opportunities to support under 18s and run activities for them.

Now the Fountain Community Hall is in full operation we have a number of part-time hall-keepers and occasional bar staff working with us.

The work of the employees is overseen and directed by the trustees.

Decision making

The trustees are responsible for strategic decision making within the charity and the Activities Manager and Development Officer are responsible for giving effect to their direction.

Induction and training of new trustees

New trustees receive guidance and instruction from the board of trustees to make them aware of the objectives and workings of the Trust.

Wider network

The Lesmahagow Development Trust is a member of the Development Trusts Association Scotland (DTA Scotland) which aims to promote, support and represent development trusts in Scotland. It can provide information, advice and support to the development trust network in Scotland through a wide range of publications and resources and offers training and support interventions.

Related parties

Transactions with related parties are disclosed in the notes to the financial statements.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have assessed the major risks to which the Trust is exposed and are satisfied that systems are in place to mitigate exposure to those risks which primarily relate to sufficient funding being available to allow the Trust to continue to operate its charitable activities for the benefit of the local community in and around Lesmahagow.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC364744 (Scotland)

Registered Charity number

SC40828

Registered office

The Fountain Community Centre

11 Abbeygreen

Lesmahagow

South Lararkshire

ML11 0HD

Trustees

Mr David MacColl

Miss Elizabeth Montgomery

Mr Michael Taylor

Company Secretary

Miss Elizabeth Montgomery

Independent Examiner

Stewart Gilmour & Co.

3rd Floor

St George's Buildings

5 St Vincent Place

Glasgow

G1 2DH

Approved by order of the board of trustees on 28 May 2026 and signed on its behalf by:

Miss Elizabeth Montgomery - Trustee

I report on the accounts for the year ended 31 August 2025 set out on pages seven to twenty.

Respective responsibilities of trustees and examiner

The charity's trustees 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 (as amended). The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 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 the independent examiner's report

My examination was 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 accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as 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 to 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.

Kenneth C Livingstone

The Institute of Chartered Accountants of Scotland

Stewart Gilmour & Co.

3rd Floor

St George's Buildings

5 St Vincent Place

Glasgow

G1 2DH

28 May 2026

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

115,429

-

115,429

57,166

Charitable activities

Grow-a-lot

-

33,906

33,906

-

Other charitable activities

96,201

24,920

121,121

53,600

LDT

-

43,327

43,327

81,559

Investment income

2

14,481

-

14,481

13,253

Total

226,111

102,153

328,264

205,578

EXPENDITURE ON

Charitable activities

3

Grow-a-lot

-

40,092

40,092

4,395

Governance

600

-

600

540

Fountain Hall

142,426

-

142,426

111,833

Other charitable activities

120,079

6,799

126,878

66,964

Other

11,786

7,057

18,843

9,802

Total

274,891

53,948

328,839

193,534

NET INCOME/(EXPENDITURE)

(48,780

)

48,205

(575

)

12,044

RECONCILIATION OF FUNDS

Total funds brought forward

249,925

108,569

358,494

346,450

TOTAL FUNDS CARRIED FORWARD

201,145

156,774

357,919

358,494

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

9

97,549

42,981

140,530

140,570

Investments

Investments

10

100

-

100

100

Investment property

11

203,599

-

203,599

203,599

301,248

42,981

344,229

344,269

CURRENT ASSETS

Stocks

12

542

-

542

-

Debtors

13

18,492

-

18,492

8,227

Cash at bank

4,191

408,751

412,942

314,724

23,225

408,751

431,976

322,951

CREDITORS

Amounts falling due within one year

14

(54,968

)

(294,958

)

(349,926

)

(243,836

)

NET CURRENT ASSETS

(31,743

)

113,793

82,050

79,115

TOTAL ASSETS LESS CURRENT LIABILITIES

269,505

156,774

426,279

423,384

CREDITORS

Amounts falling due after more than one year

15

(68,360

)

-

(68,360

)

(64,890

)

NET ASSETS

201,145

156,774

357,919

358,494

FUNDS

17

Unrestricted funds

201,145

249,925

Restricted funds

156,774

108,569

TOTAL FUNDS

357,919

358,494

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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 28 May 2026 and were signed on its behalf by:

Mr David MacColl - Trustee

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, with the exception of investments which are included at market value.

The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a cash flow statement.

The currency in which the financial statements are prepared is Sterling which is the functional currency used by the Trust. Monetary amounts are rounded to the nearest £.

Going concern

At the time of approving these financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. The Trustees, therefore, continue to adopt the going concern basis of accounting in preparing the financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Lesmahagow Development Trust as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

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.

Cash donations are recognised on receipt. Other donations are recognised once the Trust 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.

Legacies are recognised on receipt or if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

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

Freehold property

-

2% on cost

Long leasehold

-

5% on cost

Plant and machinery

-

25% on cost

Fixtures and fittings

-

15% on cost

Computer equipment

-

25% on cost

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at the reporting date. Changes in fair values are recognised as income/(expenditure) for the year. Transaction costs are treated as expenditure as incurred.

A subsidiary is an entity controlled by the Trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Lesmahagow Development Trust owns 100% of the share capital of Lesmahagow Limited. All income from Lesmahagow Limited is donated to the Trust and it is, therefore, valued at cost in the financial statements.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Trust.

2.	INVESTMENT INCOME

2025

2024

£

£

Rents received

13,950

12,500

Deposit account interest

531

753

14,481

13,253

3.	CHARITABLE ACTIVITIES COSTS

Grant

Support

Direct

funding of

costs (see

Costs

activities

note 4)

Totals

£

£

£

£

Grow-a-lot

22,317

-

17,775

40,092

Governance

-

-

600

600

Fountain Hall

142,426

-

-

142,426

Other charitable activities

82,006

45,401

(529

)

126,878

246,749

45,401

17,846

309,996

4.	SUPPORT COSTS

Management

Finance

Totals

£

£

£

Grow-a-lot

17,775

-

17,775

Governance

600

-

600

Other charitable activities

(928

)

399

(529

)

17,447

399

17,846

5.	NET INCOME/(EXPENDITURE)

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

2025

2024

£

£

Depreciation - owned assets

17,102

12,726

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2025 nor for the year ended 31 August 2024.

Trustees' expenses

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

7.	STAFF COSTS

2025

2024

£

£

Wages and salaries

87,225

71,688

87,225

71,688

The average monthly number of employees during the year was as follows:

2025

2024

Development officer

1

1

Activity centre manager

1

1

Fountain hall staff

4

3

6

5

No employees received emoluments in excess of £60,000.

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

55,975

1,191

57,166

Charitable activities

Other charitable activities

53,600

-

53,600

LDT

49,676

31,883

81,559

Investment income

13,253

-

13,253

Total

172,504

33,074

205,578

EXPENDITURE ON

Charitable activities

Grow-a-lot

-

4,395

4,395

Governance

540

-

540

Fountain Hall

111,833

-

111,833

Other charitable activities

66,063

901

66,964

Other

8,656

1,146

9,802

Total

187,092

6,442

193,534

NET INCOME/(EXPENDITURE)

(14,588

)

26,632

12,044

Transfers between funds

(1,546

)

1,546

-

Net movement in funds

(16,134

)

28,178

12,044

RECONCILIATION OF FUNDS

Total funds brought forward

As previously reported

266,059

136,050

402,109

Prior year adjustment

-

(55,659

)

(55,659

)

As restated

266,059

80,391

346,450

TOTAL FUNDS CARRIED FORWARD

249,925

108,569

358,494

9.	TANGIBLE FIXED ASSETS

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 September 2024

68,715

87,900

3,326

Additions

-

-

15,620

At 31 August 2025

68,715

87,900

18,946

DEPRECIATION

At 1 September 2024

6,301

40,524

946

Charge for year

1,374

4,395

4,736

At 31 August 2025

7,675

44,919

5,682

NET BOOK VALUE

At 31 August 2025

61,040

42,981

13,264

At 31 August 2024

62,414

47,376

2,380

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 September 2024

32,711

7,028

199,680

Additions

-

1,442

17,062

At 31 August 2025

32,711

8,470

216,742

DEPRECIATION

At 1 September 2024

7,665

3,674

59,110

Charge for year

4,799

1,798

17,102

At 31 August 2025

12,464

5,472

76,212

NET BOOK VALUE

At 31 August 2025

20,247

2,998

140,530

At 31 August 2024

25,046

3,354

140,570