REGISTERED COMPANY NUMBER: SC461601 (Scotland)

REGISTERED CHARITY NUMBER: SC46307

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 October 2025

for

Caithness Broch Project

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

16

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 October 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Caithness Broch Project aims to enrich the Caithness community by promoting education, heritage, culture, and poverty relief. Its focus includes offering educational activities about archaeological heritage, reconstructing historical structures, creating accessible archaeological records, and providing diverse heritage-related activities. The project also equips individuals to contribute to local heritage management and collaborates with various entities to further these goals

The objectives of the charity have been consistent with previous years. In summary:

1. Preparations for the construction of a replica broch

2. Local community outreach

3. Engagement with heritage and tourism

Specific activities are listed in the table below. Note the increasing activities related to the selected broch construction site known as Flygla, which is north of Latheron village.

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

The Project has again made significant progress this year towards establishing a site for the construction of the replica broch.

1. Submission of application to the Crofting Commission for de-crofting of the site at Flygla.

2. Secured planning permission for phase 1 of our project at Flygla including construction of the replica Broch plus associated infrastructure.

3. Launch of Crowdfunding campaign to raise money for the purchase of the Flygla site.

4. Signing of Memorandum of Understanding between the Caithness Broch Project, The Flow Country World Heritage Site Partnership, the University of the Highlands and Islands and the Latheron, Lybster and Clyth Community Development Company (LLCCDC) for shared use of the Flygla site once purchased by CBP. Future plans would include the site also becoming the eastern visitor gateway to the World Heritage Site.

This Year in Brief

Month

Activity

January

Submission of Planning request for replica broch

Annual General Meeting (new chairperson appointed)

April

Presentation to the Trimontium Trust in Melrose

May

Flow Country Partnership and UHI representatives visit Flygla site

Broch presentation for Brora Heritage

June

Formal presentation to Flow Country Trustees on proposed collaboration plan for Flygla

July

Broch Presentation for Wick Baptist Church

August

Launch of site purchase Crowdfunding campaign

Signing of MOU with partners for shared use of Flygla site

September

Provisional Business Plan received from consultant architects

October

Planning permission granted

De-crofting application submitted to Crofters' Commission

November

Broch Project representation at Flow Country Tourism event in Wick

December

Re-locate business address to LLCCDC office in Lybster

Annual General Meeting

FINANCIAL REVIEW

Financial position

Total income during the year was £69,342 (2024 - £34,994), expenditure was £32,790 (2024 - £18,415) leaving a surplus of £36,552 (2024 - £16,579) for the year. We carried forward reserves of £93,843 (2024 - £57,291) for the continuation of our projects and events and sustainability of the charity.

Reserves policy

The Directors have reviewed the reserves at the year end and of the opinion that they are sufficient to cover the current project work, but will need to build up over future years in the expectation of managing large value projects. The reserves include funding for site purchase and anticipated professional fees (e.g. business planning, architects, lawyer).

FUTURE PLANS

2025 has been a year of considerable progress for the Project. We have secured planning permission; had a very positive and generous community response to our site purchase crowdfunding campaign; signed an MOU with other significant organisations for shared community use of the Flygla site once purchased subject to securing the necessary de-crofting consent. We have also received our provisional business plan from our consultant architects. The Project will continue to work towards delivering the vision of a replica broch on the Flygla site, which we selected in late 2021. Care about creating a sustainable business and having the support of the community means that we would rather take longer to deliver the project than hurry into making decisions that are not easily reversed.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Charity constitution

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Recruitment and appointment of new trustees

The methods used to recruit and appoint new charity trustees are identified in the Memorandum and Articles of Association. The committee is healthy with a total number of committee members of 11 of which 8 are Trustees.

Organisational structure

The Project has a core management team of directors (also known as trustees) supported by a committee drawn largely from the membership. The full membership (composed of annually subscribed Members and life Members) forms the wider decision-making and responsible body. The Project is also supported by “Friends”, a class not requiring subscription or having any legal status.

The articles of association were changed at an Extraordinary General Meeting held in September 2023 to allow new members from outside the county of Caithness. This was a reversion to the original constitution, based on discussions held with major UK funding bodies.

Directors are appointed at general meetings. At the Annual General Meeting, all directors stand down and may stand for re-appointment.

The committee has meetings typically every two weeks. Given that all the committee members are volunteers and work on the Project in their own time and are not co-located, the everyday business of the Project is conducted typically on Slack, a digital communication platform designed primarily for workplace collaboration. It offers features such as direct messaging, group channels, file sharing, and integration with various third party applications. Slack enables teams to organize conversations by topics or projects, facilitating efficient information sharing and teamwork. It is widely used in professional settings to streamline communication and workflow, but also offers a non-profit free service which we take advantage of. The Project is also supported by Google Workspace and Microsoft Office for non-profits.

Any spending done by the Project is either pre-approved from allocated funds to specific projects or is approved upon request by a number of directors, depending on the amount. This includes expenses incurred by committee members in the course of project activities.

The project maintains two bank accounts, both chosen for low fee structures and appropriate security. This arrangement will be kept under review as the project requirements and fees change over time.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC461601 (Scotland)

Registered Charity number

SC46307

Registered office

Seaview House

Harbour Road

Lybster

Caithness

KW3 6AH

Trustees

R Herrick

I K Maclean Vice-chairman

K G McElroy

C Aitken

D C Mackay

P Macrae Chairman

K Lilley

J Byron (appointed 22.1.25)

Independent Examiner

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

Non-Director post holder

Sara Herrick - Treasurer

Anthea Atkins - Membership Secretary

Approved by order of the board of trustees on 1 July 2026 and signed on its behalf by:

P Macrae - Trustee

I report on the accounts for the year ended 31 October 2025 set out on pages six to sixteen.

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.

Marcus D MacIver CA

The Institute of Chartered Accountants of Scotland

Mackay & Co

Chartered Accountants

Unit 8

Golspie Business Park

Golspie

Sutherland

KW10 6UB

1 July 2026

31.10.25

31.10.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

7,153

25,399

32,552

17,565

Charitable activities

4

Other charitable activities

-

1,000

1,000

-

Flygla

-

-

-

2,000

HHJV Phases 1 & 2

500

35,000

35,500

13,300

Keiss Panel

-

-

-

210

Other trading activities

3

290

-

290

1,919

Total

7,943

61,399

69,342

34,994

EXPENDITURE ON

Raising funds

-

-

-

894

Charitable activities

Ousdale

-

-

-

680

Other charitable activities

2,068

2,184

4,252

5,293

Website design and upkeep

-

-

-

312

Flygla

6,967

-

6,967

836

HHJV Phases 1 & 2

-

21,030

21,030

10,400

Keiss Panel

-

541

541

-

Total

9,035

23,755

32,790

18,415

NET INCOME/(EXPENDITURE)

(1,092

)

37,644

36,552

16,579

Transfers between funds

11

(4,778

)

4,778

-

-

Net movement in funds

(5,870

)

42,422

36,552

16,579

RECONCILIATION OF FUNDS

Total funds brought forward

50,020

7,271

57,291

40,712

TOTAL FUNDS CARRIED FORWARD

44,150

49,693

93,843

57,291

31.10.25

31.10.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

25

4,873

4,898

2,070

CURRENT ASSETS

Stocks

9

1,000

-

1,000

1,000

Cash at bank and in hand

44,525

44,820

89,345

55,937

45,525

44,820

90,345

56,937

CREDITORS

Amounts falling due within one year

10

(1,400

)

-

(1,400

)

(1,716

)

NET CURRENT ASSETS

44,125

44,820

88,945

55,221

TOTAL ASSETS LESS CURRENT LIABILITIES

44,150

49,693

93,843

57,291

NET ASSETS

44,150

49,693

93,843

57,291

FUNDS

11

Unrestricted funds

44,150

50,020

Restricted funds

49,693

7,271

TOTAL FUNDS

93,843

57,291

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 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 1 July 2026 and were signed on its behalf by:

P Macrae - 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.

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.

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.

Tangible fixed assets

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

General Equipment

-

25% on reducing balance

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.

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

2.	DONATIONS AND LEGACIES

31.10.25

31.10.24

£

£

Donations

28,202

14,075

Subscriptions

4,350

3,490

32,552

17,565

3.	OTHER TRADING ACTIVITIES

31.10.25

31.10.24

£

£

Shop income

290

1,919

4.	INCOME FROM CHARITABLE ACTIVITIES

31.10.25

31.10.24

Activity

£

£

Grants

Other charitable activities

1,000

-

Grants

Flygla

-

2,000

Grants

HHJV Phases 1 & 2

35,500

13,300

Grants

Keiss Panel

-

210

36,500

15,510

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

31.10.25

31.10.24

£

£

The Highland Council

-

5,000

Foundation Scotland

30,500

8,300

Sinclair Bay Community Fund

-

210

Latheron Lybster & Clyth Halsary Fund

5,000

2,000

North Highland Initiative

1,000

-

36,500

15,510

5.	NET INCOME/(EXPENDITURE)

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

31.10.25

31.10.24

£

£

Depreciation - owned assets

2,191

1,645

6.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

The following expenses were paid to Trustees as reimbursement for expenses incurred on behalf of Caithness Broch Project:

TRUSTEE

31.10.25

31.10.24

I K Maclean

540.56

0

D Mackay

0

0

C Aitken

0

0

R Herrick

0

0

K McElroy

0

404.17

P Macrae

0

0

K Lilley

0

80.94

540.56

485.11

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

17,566

(1

)

17,565

Charitable activities

Flygla

-

2,000

2,000

HHJV Phases 1 & 2

-

13,300

13,300

Keiss Panel

-

210

210

Other trading activities

1,919

-

1,919

Total

19,485

15,509

34,994

EXPENDITURE ON

Raising funds

894

-

894

Charitable activities

Ousdale

-

680

680

Other charitable activities

4,339

954

5,293

Website design and upkeep

312

-

312

Flygla

-

836

836

HHJV Phases 1 & 2

-

10,400

10,400

Total

5,545

12,870

18,415

NET INCOME

13,940

2,639

16,579

Transfers between funds

7,216

(7,216

)

-

Net movement in funds

21,156

(4,577

)

16,579

RECONCILIATION OF FUNDS

Total funds brought forward

28,865

11,847

40,712

TOTAL FUNDS CARRIED FORWARD

50,021

7,270

57,291

8.	TANGIBLE FIXED ASSETS

General

Equipment

£

COST

At 1 November 2024

12,411

Additions

5,019

At 31 October 2025

17,430

DEPRECIATION

At 1 November 2024

10,341

Charge for year

2,191

At 31 October 2025

12,532

NET BOOK VALUE

At 31 October 2025

4,898

At 31 October 2024

2,070

9.

STOCKS

31.10.25

31.10.24

£

£

Stocks

1,000

1,000

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.25

31.10.24

£

£

Accrued expenses

1,400

1,716

11.	MOVEMENT IN FUNDS

Net

Transfers

At

movement

between

At

1.11.24

in funds

funds

31.10.25

£

£

£

£

Unrestricted funds

General fund

50,020

(1,092

)

(4,778

)

44,150

Restricted funds

Leaflets

-

1,000

-

1,000

Ousdale Security Camera

-

(1,673

)

5,019

3,346

Ousdale Broch

2,037

(510

)

-

1,527

Colouring Book

508

-

-

508

HHVJ Phases 1 & 2

3,021

13,970

-

16,991

Keiss Panel

541

(541

)

-

-

Flygla Community Consultation

1,164

1

(241

)

924

Flygla Site Purchase

-

25,397

-

25,397

7,271

37,644

4,778

49,693

TOTAL FUNDS

57,291

36,552

-

93,843

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

7,943

(9,035

)

(1,092

)

Restricted funds

Leaflets

1,000

-

1,000

Ousdale Security Camera

-

(1,673

)

(1,673

)

Ousdale Broch

-

(510

)

(510

)

HHVJ Phases 1 & 2

35,000

(21,030

)

13,970

Keiss Panel

-

(541

)

(541

)

Flygla Community Consultation

1

-

1

Flygla Site Purchase

25,398

(1

)

25,397

61,399

(23,755

)

37,644

TOTAL FUNDS

69,342

(32,790

)

36,552

Comparatives for movement in funds

Net

Transfers

At

movement

between

At

1.11.23

in funds

funds

31.10.24

£

£

£

£

Unrestricted funds

General fund

28,865

13,939

7,216

50,020

Restricted funds

Lyth Art & Archaeology Events

331

-

(331

)

-

Achvarasdal

19

-

(19

)

-

Leaflets

1,166

-

(1,166

)

-

Ousdale Security Camera

955

(955

)

-

-

Ousdale Broch

6,770

(679

)

(4,054

)

2,037

Colouring Book

2,606

-

(2,098

)

508

HHVJ Phases 1 & 2

-

2,900

121

3,021

Keiss Panel

-

210

331

541

Flygla Community Consultation

-

1,164

-

1,164

11,847

2,640

(7,216

)

7,271

TOTAL FUNDS

40,712

16,579

-

57,291