Charity Registration No. 1058769
Company Registration No. 03244113 (England and Wales)
PETWORTH COTTAGE NURSING HOME
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
PETWORTH COTTAGE NURSING HOME
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr C R Hubbard, Chairman
Mr J R Atkins
Dr A J Smoker
Mr T J Barrington
Dr S Pett
Mr A W Brooke
Mr D H M Burrell
Dr G M Lyons
Mr A M Hepworth
Ms P Barton
Mrs L Bonner
(Appointed 13 June 2026)
Secretary
Dr S Pett
Patron
The Lady Egremont
Charity number
1058769
Company number
03244113
Registered office
Petworth Cottage Nursing Home
Fittleworth Road
Petworth
West Sussex
GU28 0HQ
Auditor
Anova
2 Piries Place
Horsham
West Sussex
RH12 1EH
Bankers
NatWest Bank PLC
5 East Street
Chichester
West Sussex
PO10 1HH
Solicitors
Anderson Rowntree
Wisteria House
Market Square
Petworth
West Sussex
GU28 0AJ
Investment advisors
Quilter Cheviot
Senator House
85 Queen Victoria Street
London
EC4V 4AB
PETWORTH COTTAGE NURSING HOME
CONTENTS
Page
Trustees' report
1 - 5
Statement of trustees' responsibilities
6
Independent auditor's report
7 - 9
Statement of financial activities
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
PETWORTH COTTAGE NURSING HOME
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The trustees present their report and financial statements for the year ended 31 December 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 charitable company's governing document, the Memorandum and Articles of Association dated 30 August 1996 and "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

The Charity's objectives are the relief of sickness and infirmity through the provision of nursing care, and without prejudice to the generality of the foregoing to provide a short stay nursing and convalescent home for the benefit of any disabled or sick person upon terms appropriate to their means, and to provide medical and/or nursing care of limited duration for any disabled or sick person upon terms appropriate to their means.

 

The Trustee Directors have had due regard to the Charity Commission guidance on public benefit whilst setting the objects and activities of the Charity.

 

PCNH's fees continue to reflect its Charitable status as a non-profit Organisation. Fees charged reflect the

full nursing status of the Home and are generally below that of similar Nursing Homes. Petworth Cottage

Nursing Home has assisted 5 Residents with their fees during 2025 and has cared for a total of some 74

Residents during the year.

 

It is the intention of the Trustees and Management to continue to monitor the contribution for the public benefit and, should conditions allow, to increase the number of Residents admitted who need assistance with their fees.

Achievements and performance

Throughout the year the Charity has fulfilled the objectives set out above. The Residents benefit from the

ongoing refurbishment of various areas of the Home. Residents rooms continue to be enhanced by a

team of members of staff with a very careful eye kept on expenditure, resulting in a charming and homely

atmosphere.

 

PCNH has over a period of many years integrated itself within the local community and continues to benefit

through its reputation and the activities of the Friends.

Results of Fund Raising Activities for 2025:-

 

Christmas Quiz         £29,451

Alfresco Lunch        £13,005

Blue Tins         £294

White Horse Pub         £1,155

Christmas Cards         £218

TSTS Allen Charity     £500

C Kirby donation         £2,500

The Merseys         £100

Other Donations         £16,879

 

The Board is hugely appreciative of all these contributions. These gifts and some very generous legacies allow PCNH to fulfil its responsibilities as a Charity for the benefit of the community of Petworth and beyond.

PETWORTH COTTAGE NURSING HOME
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

Investment Policy and Performance

Since July 2022, our non-property investments have been under the management of Quilter Cheviot

Investment Management (QCIM) under the following investment mandate:-

 

 

The investment director at QCIM who is responsible for managing PNCH’s investments continues to be Ms Poppy Fox and the Investment Committee had its third annual review meeting with her on 10th November 2025 (when the value of the portfolio was standing at £957,304) and, after the meeting, the Investment Committee agreed that it was satisfied that she was (i) continuing to operate within our mandate, and (ii) continuing to obtain a very respectable investment performance. The total funds under QCIM’s management as at 31 December 2024 stood at £886,342 and, a year later on 31 December 2025, this value had increased to £947,022 after all fees despite a £20,000 withdrawal on 25th March and a further £15,000 on 27th November of that year. (Had these two withdrawals totalling to £35,000 not occurred, then it would have been up about 11% during the year.)

Financial review

In 2025, there was an operating deficit of £282,619 (2024: £214,915) and an overall surplus of £118,332 (2024:deficit of £33,921) leading to an increase in the total reserves held. The income received from residents rose by 2.6% (2024: 5%) with average occupancy of 26 residents.

 

Reserves Policy

The financial policy of the charity is to continue to hold reserve funds not only to cover the maintenance and renewal of the buildings and equipment of the charity but also to ensure a strong balance sheet to mitigate the impact of any weakness in the market during the current and continuing recessionary period. It is considered politic and sound management to ensure that reserves do not fall below £800,000 in order to meet many months expenditure and potential repairs to the property.

 

Total unrestricted funds were £3,079,610 (2024: £2,961,278) and after taking into account the £1,919,764 (2024: £1,935,679) tied up in tangible fixed assets and investment property, uncommitted reserves at the year end were £1,143,931 (2024: £1,025,599).

PETWORTH COTTAGE NURSING HOME
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Risk Assessment

The trustee directors are conscious of the need to review and determine the risks inherent in the management of the Home and to establish corrective actions and systems to mitigate the risks. The trustee directors continue to carry out risk assessment which is reviewed on an annual basis. Through these procedures, the trustee directors are satisfied that the major risks identified have been adequately mitigated where necessary.

 

It is categorised under:

1.    Medium likelihood/high impact

2.    Low likelihood/high impact

3.    Low likelihood/medium impact

Description of Risk

Category

Planning and strategies for managing risk

Shortage of staffing in the Nursing home sector

1

Reducing dependency on agency staff

Sudden loss of senior staff

1

Separate roles for Matron and Deputy Matron are in place so the likelihood of the sudden loss of both is reduced

 

Matron/Manager is registered with the Care Quality Commission under relevant regulations

Financial crisis

1

Bed occupancy levels have improved.

 

Sufficient invested funds, see Investment Policy and Performance Report attached.

Electricity failure

1

Secondary generator installed that cuts in automatically if main supply fails.

Natural disaster; such as fire or lightning strike

2

The Home is equipped with fire extinguishers

 

Disaster recovery plan is in place

Misbehaviour by member of staff

2

Training and checks carried out for all staff

 

Disciplinary procedure in place in case of an event arising

Failure of IT system;

3

Patient care records back up on cloud

 

Regular back ups of accounts records

Failure of cooking equipment

3

Offsite suppliers of hot food available

Injury to patient/staff from:

1.    Fall

2.    Wrongful administration of drugs

3.    Financial & Stores fraud leading to financial difficulty

3

(i)    Care staff all receive first aid training

(ii)    Drugs administered by trained nurses only in accordance to doctor's prescription

(m)    Accounts audited by professional accountants and monthly accounts and bank reconciliations prepared

In addition to the above view Document headed “Disaster and Emergency Plan 2023” dated 16/05/23 prepared by DB and YS.

The Trustee Directors and Management team will endeavour to sustain occupancy levels. A major consideration and concern continues to be recruitment of both nursing and caring staff. This is greatly exacerbated by PCNH’s geographical location which is comparatively isolated. The Budget for 2025 is based therefore upon an occupancy level of 28.

 

 

PETWORTH COTTAGE NURSING HOME
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Structure, governance and management

The charitable company is a company limited by guarantee and was set up in August 1996. It is governed by a Memorandum and Articles of Association dated 19 August 1996. It succeeds a charity with similar objects and assets set up by a Trust Deed dated 24 November 1971.

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:

Mr C R Hubbard, Chairman
Mr J R Atkins
Dr A J Smoker
Mr T J Barrington
Dr S Pett
Mr A W Brooke
Mr D H M Burrell
Dr G M Lyons
Mr A M Hepworth
Ms P Barton
Mrs L Bonner
(Appointed 13 June 2026)

The charity's Articles of Association govern the appointment of the trustee directors and the filling of vacancies. New trustee directors are recruited by personal contact, being persons known to the Chairman or other trustee directors as having knowledge and experience which will enable them to make a significant contribution to the running of the charity. They will be given informal instruction in their duties and responsibilities and encouraged to study the appropriate Charity Commission and other instructional papers.

 

The day to day running of the nursing home is under the management of the Nursing Home Manager, Mrs Yvonne Stout. Financial administration and operational support is provided by Mrs. Ayelen Hayes, Finance Controller and both are salaried. Expenditure over £10,000 requires board approval. The board of trustee directors meet 6 times per year, receives reports from the Nursing Home Manager, Finance Controller and Doctor, reviews performance and considers issues as they arise.

 

None of the trustees has any beneficial interest in the company.

 

All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

Auditor

In accordance with the company's articles, a resolution proposing that Anova be reappointed as auditor of the company will be put at a General Meeting.

Key Management Personnel

The arrangements for setting the pay and remuneration of the charity's key personnel, consisting of the Nursing Home Manager, her Deputy and the Finance Controller is resolved by the Chairman with the involvement and approval of the Trustees. Subsequent enhancements for all staff members including senior management are agreed by the remuneration committee comprising the Chairman of the Trustees, the Nursing Home Manager, the Finance Controller and the lead Trustee for finance using bench marks such as inflation and the National Living Wage.

PETWORTH COTTAGE NURSING HOME
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -
Review of Year

The need to continue with successional planning is paramount. As I write this in July of 2026, I am delighted to say that a new Trustee, Mrs. Lisa Bonner, has just joined us. She brings much to the table, not least relative youth!

 

PCNH was the happy recipient of three very generous legacies during the year, totalling £243,999.This together with the activities of the Friends very much allows us to carry out our duties as a Charitable Organisation.

 

The Christmas Quiz in 2024 raised a significant sum, yielding £24,315. This allowed us to transform the outside pathways giving access to our lovely gardens and summerhouse to those Residents who use wheelchairs. Our thanks to Andrew Brooke, Anne and their team.

 

The new website continues to be a great success.

 

Finally, the Trustees are immensely grateful to Mrs. Yvonne Stout, Manager (Matron), Mrs. Ayelen Hayes, our Finance Manager, Mrs Hannah Terry, Clinical Lead, Mrs Lucy Alvarado, Operations Lead and all the nursing, caring and administrative team which Yvonne leads with great care and example. They have maintained the ethos of compassion and excellence to the highest standard, despite the rising number of much frailer Residents coming into our care, 75 during the year, which is the highest number on record.

Disclosure of information to auditor

We, the Trustee directors of the charitable company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

 

The trustees' report was approved by the Board of Trustees.

Mr C R Hubbard, Chairman
Trustee
Dated: 6 August 2026
PETWORTH COTTAGE NURSING HOME
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -

The trustees, who are also the directors of Petworth Cottage Nursing Home for the purpose of company law, are responsible for preparing the Trustees' Report 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 year.

In preparing these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities 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; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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.

PETWORTH COTTAGE NURSING HOME
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME
- 7 -

Opinion

We have audited the financial statements of Petworth Cottage Nursing Home (the ‘charitable company’) for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 December 2025 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Charities Act 2011.

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 Auditor's 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 other information comprises the information included in the annual report, including the trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

 

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 course of the audit, or otherwise appears to be materially misstated. If we identify such material this gives rise to a material misstatements 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.

PETWORTH COTTAGE NURSING HOME
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME
- 8 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an auditor's report 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and charity's performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the charitable company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

PETWORTH COTTAGE NURSING HOME
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF PETWORTH COTTAGE NURSING HOME
- 9 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the charitable company operates in. The key laws and regulations we considered in this context included the Charities Act 2011 and Companies Act 2006.

 

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty.

 

As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations.

 

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with HMRC, and;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the rationale for any significant transactions that are unusual or outside the normal course of operation.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Cleghorn FCA BSc (Senior Statutory Auditor)
For and on behalf of Anova, Statutory Auditor
Chartered Accountants
2 Piries Place
Horsham
West Sussex
RH12 1EH
7 August 2026

Anova is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

PETWORTH COTTAGE NURSING HOME
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
General
Operating
Total
General
Operating
Total
funds
funds
funds
funds
2025
2025
2025
2024
2024
2024
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
307,732
6,779
314,511
71,444
11,329
82,773
Charitable activities

Patients' fees

4
-
1,881,797
1,881,797
-
1,833,565
1,833,565

Investments

5
28,622
-
28,622
29,454
-
29,454
Total income
336,354
1,888,576
2,224,930
100,898
1,844,894
1,945,792
Expenditure on:

Raising funds

6
19,760
-
19,760
13,647
-
13,647
Charitable activities

Provision of a residential care home

7
-
2,159,453
2,159,453
-
2,045,550
2,045,550

Governance

7
-
11,083
11,083
-
9,283
9,283
Total charitable expenditure
-
2,170,536
2,170,536
-
2,054,833
2,054,833
Other
11
-
659
659
-
4,976
4,976
Total resources expended
19,760
2,171,195
2,190,955
13,647
2,059,809
2,073,456
Net gains/(losses) on investments
15
84,357
-
84,357
93,743
-
93,743
Net incoming/(outgoing) resources before transfers
400,951
(282,619)
118,332
180,994
(214,915)
(33,921)
Gross transfers between funds
(282,619)
282,619
-
(214,915)
214,915
-
Net movement in funds
118,332
-
118,332
(33,921)
-
(33,921)
Fund balances at 1 January 2025
2,961,278
-
2,961,278
2,995,199
-
2,995,199
Fund balances at 31 December 2025
3,079,610
-
3,079,610
2,961,278
-
2,961,278

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
PETWORTH COTTAGE NURSING HOME
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,634,764
1,650,679
Investment property
16
285,000
285,000
Investments
14
947,022
886,342
2,866,786
2,822,021
Current assets
Stocks
17
2,600
2,600
Debtors
18
173,236
182,121
Cash at bank and in hand
168,848
55,106
344,684
239,827
Creditors: amounts falling due within one year
20
(131,860)
(100,570)
Net current assets
212,824
139,257
Total assets less current liabilities
3,079,610
2,961,278
Income funds
Unrestricted funds
22
3,079,610
2,961,278
3,079,610
2,961,278

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2025, although an audit has been carried out under section 144 of the Charities Act 2011. No members have required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for ensuring the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 6 August 2026
Mr C R Hubbard, Chairman
Trustee
PETWORTH COTTAGE NURSING HOME
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
128,387
(37,534)
Investing activities
Purchase of tangible fixed assets
(66,944)
(49,051)
Proceeds from investment loans and receivables
(11,323)
(12,143)
Proceeds on disposal of  investments
35,000
25,000
Interest received
28,622
29,454
Net cash used in investing activities
(14,645)
(6,740)
Net cash used in financing activities
-
-
Net increase/(decrease) in cash and cash equivalents
113,742
(44,274)
Cash and cash equivalents at beginning of year
55,106
99,380
Cash and cash equivalents at end of year
168,848
55,106
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Charity information

Petworth Cottage Nursing Home is a private company limited by guarantee incorporated in England and Wales. The registered office is Petworth Cottage Nursing Home, Fittleworth Road, Petworth, West Sussex, GU28 0HQ.

1.1
Accounting convention

The financial statements 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) and the Companies Act 2006.

 

Petworth Cottage Nursing Home meets the definition of a public benefit entity under FRS102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

1.3
Charitable funds

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of their charitable objectives and which have not been designated for other purposes.

1.4
Income
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Patients' fees include all fees receivable for the year.

 

Legacies are recognised on a case by case basis following the granting of probate and based on when the charity has been notified in writing of both the amount and the settlement date of the gift.

 

Donations are recognised when the charity has been notified in writing of both the amount and settlement date.

 

Investment income is earned through holding assets for investment purposes such as shares and property. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established.

Grants, including government grants, are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.5
Expenditure

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. All costs have been allocated to activities on a basis consistent with the use of the resource.

 

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events,

 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs and governance costs.

 

Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

 

All expenditure is inclusive of irrecoverable VAT.

1.6
Tangible fixed assets

Tangible fixed assets costing £100 or more are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

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:

Freehold land and buildings
5, 10 or 137 years straight line
Plant and equipment
Between 10-33% per annum on cost
Fixtures and fittings
Between 10-50% per annum on cost
Motor vehicles
25% per annum reducing balance

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 balance sheet date the Trustee directors review the carrying amounts of the Charity's tangible fixed assets to determine whether there is an indication of impairment of those assets. If such an indication exists, the recoverable amount of the asset is estimated in order to assess whether any impairment loss has arisen. The recoverable amount is the higher of fair value less costs to sell and value in use as determined by the trustee directors. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.

1.7
Investment properties

Investment properties are measured at fair value at each reporting date.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.8
Fixed asset investments

Fixed asset investments are initially recognised at their transaction cost and subsequently measured at fair value at each reporting date, unless the value cannot be measured reliably in which case it is measure at cost less impairment.

 

Gains and losses, whether realised or unrealised, are combined and presented as "Net gains/(losses) on investments in the Statement of Financial Activities".

1.9
Impairment of fixed assets

At each reporting end date, the charitable company 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).

1.10
Stocks

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

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.11
Cash and cash equivalents

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.

1.12
Financial instruments

The charitable company 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.

 

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

1.13
Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes.

1.14
Employee benefits

When employees have rendered service to the Charity, short term employee benefits, to which the employees are entitled, are recognised at the undiscounted amount expected to be paid in exchange for that service.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.17

Company status

The Charity is a company limited by guarantee. The members of the company are the Trustee directors named in the Trustees' report. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity.

2
Critical accounting estimates and judgements
Critical accounting estimates and assumptions:

In the application of the charitable company’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.

Critical areas of judgement:
Expected useful life and residual value of freehold land and buildings

Tangible fixed assets are depreciated over their expected useful economic lives after taking into account the estimated residual value of the asset where significant. The residual values and useful economic lives are reassessed annually and may vary depending on a number of factors such as future maintenance programmes, future market conditions and change in legislation.

Fair value of investment properties

Investment properties are measured at fair value at each reporting date. The fair value of investment properties is assessed by the Trustee directors with reference to current market values.

3
Donations and legacies
General
Operating
Total
General
Operating
Total
funds
funds
funds
funds
2025
2025
2025
2024
2024
2024
£
£
£
£
£
£
Donations and gifts
307,732
-
307,732
71,444
5,000
76,444

Government grants

-
6,779
6,779
-
6,329
6,329
307,732
6,779
314,511
71,444
11,329
82,773
Donations and gifts
Donations and legacies
76,562
-
76,562
23,777
5,000
28,777
Donations received via The Friends
47,171
-
47,171
47,667
-
47,667
Legacies
183,999
-
183,999
-
-
-
307,732
-
307,732
71,444
5,000
76,444
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Donations and legacies
(Continued)
- 17 -
Grants receivable for core activities
Government grants
-
6,779
6,779
-
6,329
6,329
-
6,779
6,779
-
6,329
6,329

During the year, a total of £6,779 (2024: £6,329) was received in government grants. These were received in relation to support for social service residents.

4
Income from charitable activities
Patients'
Patients'
fees
fees
2025
2024
£
£
Sales within charitable income
Sales within charitable income
1,881,797
1,833,565
5

Investments

General
General
funds
funds
2025
2024
£
£
Rental income
10,268
9,673
Income from listed investments
17,723
18,644
Interest receivable
631
1,137
28,622
29,454
6

Raising funds

General
General
funds
funds
2025
2024
£
£
Fundraising and publicity
Other fundraising costs
10,245
5,291
Investment management
9,515
8,356
19,760
13,647
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
7
Charitable activities

Provision of a residential care home

Governance

Total
2025

Provision of a residential care home

Governance

Total
2024
2025
2025
2024
2024
£
£
£
£
£
£
Staff costs
1,498,855
-
1,498,855
1,437,690
-
1,437,690
Depreciation and impairment
82,200
-
82,200
78,299
-
78,299

Staff agency charges

208,168
-
208,168
171,271
-
171,271

Staff training

6,940
-
6,940
6,584
-
6,584

Food

75,991
-
75,991
80,522
-
80,522

Cleaning and laundry

31,898
-
31,898
27,585
-
27,585

Surgery and medical

23,949
-
23,949
22,104
-
22,104

Incidental patient supplies

8,469
-
8,469
6,434
-
6,434

Heating oil

28,599
-
28,599
32,250
-
32,250

Electricity

25,900
-
25,900
27,130
-
27,130

Water charges

8,813
-
8,813
7,543
-
7,543

Repairs and renewals

46,450
-
46,450
48,203
-
48,203

Garden maintenance

5,717
-
5,717
5,274
-
5,274

Telephone

4,992
-
4,992
2,958
-
2,958

Television

(439)
-
(439)
(399)
-
(399)

Motor and travelling

2,267
-
2,267
3,563
-
3,563
Other charitable expenditure
97,677
-
97,677
85,595
-
85,595
2,156,446
-
2,156,446
2,042,606
-
2,042,606
Bank charges
3,007
-
3,007
2,944
-
2,944
Governance costs
-
11,083
11,083
-
9,283
9,283
2,159,453
11,083
2,170,536
2,045,550
9,283
2,054,833
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
8
Auditor's remuneration

The analysis of auditor's remuneration is as follows:

Fees payable to the charitable company's auditors and associates:
2025
2024
£
£
Audit of the annual accounts
6,509
5,754
Other services to the charitable company
- Non-audit services provided to the charitable company
4,574
3,529
Total audit fees
11,083
9,283
9
Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2024: £Nil).

 

During the year ended 31 December 2025, no Trustee director expenses have been incurred (2024: £Nil).

10
Employees

The average monthly number of employees during the year was:

2025
2024
Number
Number
58
54
Employment costs
2025
2024
£
£
Wages and salaries
1,334,092
1,297,974
Social security costs
138,304
112,937
Other pension costs
26,459
26,779
1,498,855
1,437,690

The key management personnel of the charity comprise the financial controller, the home manager and her deputy. The total remuneration of key management personnel during the year was £199,309 (2024: £180,075).

The number of employees whose annual remuneration was more than £60,000 is as follows:
2025
2024
Number
Number
£70,001 - £80,000
1
1
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
11
Other
Operating
Operating
funds
funds
2025
2024
Net loss on disposal of tangible fixed assets
659
4,976
659
4,976
12
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
1,659,824
17,231
277,077
42,835
1,996,967
Additions
19,684
24,122
23,138
-
66,944
Disposals
-
(2,343)
(4,307)
-
(6,650)
At 31 December 2025
1,679,508
39,010
295,908
42,835
2,057,261
Depreciation and impairment
At 1 January 2025
159,253
4,364
152,149
30,522
346,288
Depreciation charged in the year
34,727
6,132
38,262
3,079
82,200
Eliminated in respect of disposals
-
(1,835)
(4,156)
-
(5,991)
At 31 December 2025
193,980
8,661
186,255
33,601
422,497
Carrying amount
At 31 December 2025
1,485,528
30,349
109,653
9,234
1,634,764
At 31 December 2024
1,500,571
12,867
124,928
12,313
1,650,679

All of the tangible fixed assets of the Charity are used directly for charitable purposes.

 

 

 

 

 

 

 

 

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
14
Fixed asset investments
Listed investments
£
Cost or valuation
At 1 January 2025
886,342
Valuation changes
84,357
Dividends/charges etc
11,323
Disposals
(35,000)
At 31 December 2025
947,022
Carrying amount
At 31 December 2025
947,022
At 31 December 2024
886,342
Fixed asset investments revalued

The historical cost of fixed asset investments at 31 December 2025 was £755,523 (2025: £772,610).

The fair value of listed investments is determined by the reference to market value. The listed investments are wholly comprised of an investment portfolio managed by Quilter Cheviot.

15
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Revaluation of investments
84,357
93,743
16
Investment property
2025
£
Fair value
At 1 January 2025 and 31 December 2025
285,000

The 2025 valuation was made by the Trustee directors, on an open market value for existing use basis.

 

The Trustee directors consider that the open market value equates for fair value.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
16
Investment property
(Continued)
- 22 -
2025
2024
£
£
Freehold
285,000
285,000
17
Stocks
2025
2024
£
£
Medical supplies and food
2,600
2,600
18
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
141,447
153,781
Other debtors
1,882
1,383
Prepayments and accrued income
29,907
26,957
173,236
182,121
19
Contingent Assets

The charitable company has been legally gifted 10% of an estate, the sum of which is dependant on the sale of property and is likely to be in the region of £64,000. An amount of £40,000 of this was received during 2025. The inflow of further economic benefits has been considered as probable, however, the expected receipt date of the legacy is unknown.

 

The charitable company has further been gifted a bequest of circa £200k, £180k of which was received in October 2022. The residual inflow of economic benefits (circa £20k) from the bequest has been considered as probable, however, the expected receipt date of the remaining legacy is unknown.

20
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Other taxation and social security
35,534
36,212
Deferred income
21
7,647
3,652
Trade creditors
54,678
32,628
Other creditors
6,427
5,347
Accruals
27,574
22,731
131,860
100,570

Income is deferred in respect of resident fees received in advance and income for fundraising events received in advance.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
21
Deferred income
2025
2024
£
£
Other deferred income
7,647
3,652

Deferred income is included in the financial statements as follows:

 

    £

 

Balance at 1 January 2025:      3,652

Released in year             (30,234)

Income deferred in year         34,229

Balance at 31 December 2025     7,647

.

22
Unrestricted funds

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.

At 1 January 2025
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2025
£
£
£
£
£
£
General funds
2,961,278
336,354
(19,760)
(282,619)
84,357
3,079,610
Previous year:
At 1 January 2024
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2024
£
£
£
£
£
£
General funds
2,995,199
100,898
(13,647)
(214,915)
93,743
2,961,278
23
Analysis of net assets between funds
Unrestricted
funds
2025
£
At 31 December 2025:
Tangible assets
1,634,764
Investment properties
285,000
Investments
947,022
Current assets/(liabilities)
212,824
3,079,610
PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
23
Analysis of net assets between funds
(Continued)
- 24 -
Unrestricted
funds
2024
£
At 31 December 2024:
Tangible assets
1,650,679
Investment properties
285,000
Investments
886,342
Current assets/(liabilities)
139,257
2,961,278
24
Events after the reporting date

Subsequent to the year end the trustees made the decision to sell the investment property which has been professionally valued and marketed at £400,000. The sale is expected to complete on 14 August 2026 at the asking price. The trustees do not consider this non-adjusting event to have a material impact on the charity's financial position at the reporting date.

25
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,459
26,779

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

Contributions totalling £6,094 were payable to the fund at the balance sheet date (2024: £5,714).

26
Related party transactions

During the year the Charity incurred property management fees of £Nil (2024: £1,510) from Barrington and Co, of which T Barrington, trustee, is a director. At the balance sheet date the amount due to Barrington and Co was £Nil (2024: £Nil).

 

There were no other related party transactions that require disclosure in 2025.

27
Controlling party

The charitable company is controlled by its trustee directors.

PETWORTH COTTAGE NURSING HOME
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
28
Analysis of changes in net funds
At 1 January 2025
Cash flows
At 31 December 2025
£
£
£
Cash at bank and in hand
55,106
113,742
168,848
55,106
113,742
168,848
29
Cash generated from/(absorbed by) operations
2025
2024
£
£
Surplus/(deficit) for the year
118,332
(33,921)
Adjustments for:
Investment income recognised in statement of financial activities
(28,622)
(29,454)
Loss on disposal of tangible fixed assets
659
4,976
Fair value gains and losses on investments
(84,357)
(93,743)
Depreciation and impairment of tangible fixed assets
82,200
78,299
Movements in working capital:
Decrease in debtors
8,885
34,774
Increase/(decrease) in creditors
27,295
(806)
Increase in deferred income
3,995
2,341
Cash generated from/(absorbed by) operations
128,387
(37,534)
2025-12-312025-01-01CCH Accounts Production 2026.200truefalsefalseCCH Software032441132025-01-012025-12-3103244113bus:Director12025-01-012025-12-3103244113bus:Director22025-01-012025-12-3103244113bus:Director32025-01-012025-12-3103244113bus:Director42025-01-012025-12-3103244113bus:CompanySecretaryDirector12025-01-012025-12-3103244113bus:Director52025-01-012025-12-3103244113bus:Director62025-01-012025-12-3103244113bus:Director72025-01-012025-12-3103244113bus:Director82025-01-012025-12-3103244113bus:Director92025-01-012025-12-3103244113bus:Director102025-01-012025-12-3103244113bus:CompanySecretary12025-01-012025-12-31032441132025-12-31032441132024-12-31032441132024-01-012024-12-3103244113bus:FRS1022025-01-012025-12-3103244113bus:Audited2025-01-012025-12-3103244113bus:FullAccounts2025-01-012025-12-31xbrli:purexbrli:sharesiso4217:GBP