2025 has been another unprecedented year. We had hoped that things might have started to pick up again and the fear created by the so called pandemic would have worn off and that the group size might have picked up again, but this was not the case. Groups have remained small but there has been a significant increase in the blessed experienced by those who did come, perhaps because small groups means more participation and people feeling more free to share at a deeper level.
While bookings were well up the corollary of that was the rate of cancellation, which was previously unheard of, and reached 18 significant cancellations during the year. This equated to a direct loss of income of over £20k, which was the difference between profit and loss.
The ongoing inflationary pressure that continues to push prices up has increased the financial pressure on the ministry, but once again the Lord has been gracious to us and His people have been very generous in the gifts they have given to support the work here. This is also seen in people thinking twice about coming away because disposable income is reduced and times are tight for many people. Murlough is viewed as a luxury for some and therefore deemed unaffordable to many. The impact of this has been seen as a continued decline in numbers attending as groups, with weekend numbers being hit the hardest.
Weekend group number continues to be far below historical levels and the majority are now only staying for one night rather than two. This has a major impact on how the house is run since the basic workload is the same for one night as it is for two, this is causing a financial stress on the business model. The number of Alpha Groups holding their away days here has again increased.
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, 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)".
Our primary objective is the advancement of religion, specifically the Christian Faith, and as such are aims are:
An improved sense of wellbeing and the spiritual, moral and intellectual development for those attending the organised activities at Murlough House, as they enjoy fellowship with others and receive teaching from the Bible.
The promotion of Christian values for the benefit of individuals, with those using the various facilities available at Murlough House encouraged to adopt a moral framework where they are good citizens.
Murlough House as a charity offers facilities for private retreat, respite, group retreat, and conference facilities to church and para-church groups and individuals in sympathy with our Christian ethos.
Staffing
This year has seen a couple of changes in the staff team with one member moving on into full-time work in their preferred area and another joining the team part time. While our team remains very small, it is now adequate for the numbers attending, however if we had more staff we could fill in gaps in the diary, where we are presently unable to take people because we cannot expect staff to work 7 days a week. The team is very settled and everyone is here for ministry and not just a job. Our focus remains to treat everyone who comes through the door as if we were serving King Jesus, our aim in everything is to honour Him. We are still struggling with the fact that, for any one of us to have a break, we all need to stop, as the house cannot run, even with one less person. In caring for others we also need to care for the team members, if we are to keep going. Our biggest problem is still an inability to find anyone interested in cleaning as a job.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
We've had no new volunteers join us during this year, but the two who work in the garden have remained remarkably faithful, and have been of great help.
Bookings remain strong, with the majority of groups booking the same slot for next year and some wanting to book several years ahead. The problem remains that the vast majority want the same dates. July and August are sparse because many people are on vacation and December and January are very slow as everyone’s mind is on Christmas in December and they are then broke in January. For every booking we take we have to turn away more than twice the number. This we find difficult at a personal level, as we hate turning people away, and some people take it personally and think we are choosing to not accept them, which is totally unfounded.
Another notable change has been a reduction in individuals coming on private retreat. This we believe is due to the cost, even though we make it known that, for those who need to come, finance should never be a barrier. Often those in the greatest need are the least likely to request help.
We had to increase our prices following the last board meeting, on their advice. This was for two reasons. Firstly we were not covering our costs, and secondly we were well below the cost of other establishments offering similar services. On the back of this increase we then looked for excuses to make discounts to help people, such as those in ministry, seniors and a couples discount where the second person came at half price.
We are very grateful to the Lord for his provision, such that our finances remain healthy once again this year, but only due to several generous donations from Christian Trusts and several corporate supporters. The house is still not self-sufficient, primarily due to the reduced numbers attending and increased costs.
Another, less significant, reason is because those who most need to come to the house are normally those who are least able to pay, and therefore we have used the donations, kindly given, to subsidise both individuals and some members of groups. With total income this year of £195k and expenditure of £169k the business is solvent having a trading profit of circa £25k. Since our goal, as a charity, is to simply meet our costs this represents a success. However, the reality is very different, as without the external support we would have lost £35k.
Since gifts cannot be relied upon, we need to pay special attention to two main areas going forward. The first is the need to increase our income and secondly reducing costs. Earnings are limited by group size, as we have very few ‘open days’, i.e. days when the house is unoccupied. Therefore, we need to get the message out to a much wider audience and draw in more personal retreat clients when groups are in as well. This aspect has seen a decline over the last year, mainly because individuals who come are often in a distressed state and in need of quiet and solitude. This is not conducive to having groups in the house at the same time. While the groups are not doing anything untoward, the individuals concerned can often feel that they are being ostracised or ignored, simply because the groups are getting on with their work.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Once again the Lord has wonderfully provided for all the needs of the house through so many people. It has been another great year of blessing for those who have come, although we are acutely aware that a number of individuals are not coming because they do not wish to be in the house when groups are present. Even though we have set aside the servants quarters for those in real need of help, this has not been able to really compensate.
Continuing increases in costs make keeping the house running a challenge, but we keep looking up and we are still here. Numbers are up in terms of total occupancy but still need to increase if the house is to become self sustaining. Cancellations have been a major difficulty and represents a considerable loss over the year. A move to one night weekends has also reduced income significantly, as it is all the work for half the income.
Staff recruitment is still a huge issue, however we have got through another year, hand to mouth. We already know that we are going to lose another part time staff member next year, as they have been only filling in until they get a full time post in their field of expertise.
Economically the house only survives on the generosity of others, which is not a sustainable position long term. Due to the work needing done here, I have retired from my day job to enable me to focus on the future of the house and its ministry
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 30 September 2025, which are set out on pages 5 to 14.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, it is my responsibility to:
examine the financial statements under section 65 of the Charities Act (Northern Ireland) 2008;
follow the procedures laid down in the general Directions given by the Commission under section 65(9)(b) of the Charities Act (Northern Ireland) 2008; and
state whether particular matters have come to my attention.
I have examined your charity financial statements as required under section 65 of the Charities Act (Northern Ireland) 2008 and my examination was carried out in accordance with the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act. The examination included a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also included consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as charity trustees concerning any such matters.
My role is to state whether any material matters have come to my attention giving me cause to believe that:
1. Accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
2. The financial statements do not accord with those accounting records; or
3. The financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Charities Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102); or
4. There is further information needed for a proper understanding of the financial statements to be reached.
I have completed my examination and I have no concerns in respect of the matters (1) to (4) listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland, I have found no matters that require drawing to your attention.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Murlough House is a private company limited by guarantee incorporated in Northern Ireland. The registered office is .
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 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 £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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).
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
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 year (2024 - none).