East Cheshire Housing Consortium Limited - Charities report

REGISTERED COMPANY NUMBER: 02550488 (England and Wales)

REGISTERED CHARITY NUMBER: 1001923

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2025

for

East Cheshire Housing Consortium Limited

Page

Report of the Trustees

1

to

8

Report of the Independent Auditors

9

to

12

Statement of Financial Activities

13

Balance Sheet

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

to

27

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 March 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

East Cheshire Housing Consortium exists to provide supported accommodation for people with mental health support needs and believe that those who live in supported living should do so with dignity, that they should have the respect of those who support them; should live with no reduction of their rights as citizens (except where the law so prescribes); and should be entitled to live as full and active a life as their physical and mental condition will allow.

The objective of the Charity is to promote any charitable purpose for the public benefit of persons with primarily mental health support needs, which may include neurodiversity, to obtain the most appropriate forms of housing with the necessary support to meet their individual needs.

In respect the Trustees have had regard to the Charity's Commissions guidance in "Public Benefit".

In order to achieve the above the Charity liaises with national local authorities, Social Services, the NHS and housing providers to create appropriate housing, and provides support staffing for such developments and individuals.

Key Strategies Used to Achieve Objectives

To achieve its charitable objectives, the Charity:

- Maintains strong partnerships with national local authorities, Social Services, the NHS and housing providers to identify and develop suitable accommodation opportunities;

- Delivers person-centred support services designed to meet the individual needs of service users;

- Partners with Registered Social Landlords to provide high quality supported living accommodation;

- Monitors service quality, occupancy levels and outcomes for service users to ensure resources are used effectively; and

- Works proactively with commissioners and stakeholders to identify future housing and support needs across the region.

Short-Term Objectives

During the next 12 months, the Charity aims to:

- Maintain high-quality support services across all schemes;

- Minimise property voids and maximise occupancy levels;

- Successfully embed and stabilise recently opened developments;

- Continue to strengthen financial resilience and maintain appropriate reserves;

- Ensure compliance with all regulatory, contractual and governance requirements; and

- Continue to ongoing development of staff, including training and onboarding.

Longer-Term Objectives

Over the next three to five years, the Charity aims to:

- Expand the availability of supported accommodation across Cheshire

- Develop sustainable partnerships with housing providers and commissioners;

- Increase the availability of support services to meet local demand;

- Improve outcomes for service users by promoting independence, stability and community participation;

- Maintain a financially sustainable organisation capable of responding to changing local needs and opportunities; and

- Explore grant and funding opportunities to further enhance staff training.

Linking Short-Term and Long-Term Objectives

The Charity's annual objectives are designed to support its longer-term ambition of increasing the availability of high-quality supported accommodation while ensuring the organisation remains financially resilient and able to meet the changing needs of beneficiaries.

Public benefit

The Charity is a public benefit entity. The trustees confirm that they have complied with the requirements of section 17 of the Charities act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Volunteers

The were no volunteers during either current or previous year.

ACHIEVEMENTS AND PERFORMANCE

The Charity has continued to achieve its goals throughout the year and will continue to liaise with Local authorities, Housing Associations and other Landlords in order to ensure the continuity provision of support in the future.

The Charity has continued to expand its operations, The Charity opened a new development in Handforth, comprising of 10 1-bedroom flats.

The Charity prides itself on the quality of its service provision, and standards of housing, and measures its success at achieving its objectives by the increasing number of service users it is able to accommodate.

Measuring Success

The Senior Leadership Team (SLT) report the Charity's effectiveness to the Trustees through a range of measures including occupancy levels, the number of individuals supported, service user outcomes, feedback from commissioners and service users, financial performance and compliance with regulatory requirements. During the year the Charity continued to expand its capacity through the opening of additional supported accommodation and maintained its focus on delivering high-quality support services which promote independence and wellbeing.

Key performance areas include safeguarding, compliance, health & safety, levels and handling of complaints, staffing levels & training and contractual matters.

During the year, the Charity continued to deliver high quality supported accommodation and support services for people with mental support needs. A significant achievement was the expansion of accommodation capacity through the opening of a new development in Handforth, comprising ten one-bedroom flats, enabling ECHC to support more individuals within the community. This expansion was a direct result of Cheshire East Councils identification of the requirement for enhanced, 24 hours, support available with self-contained housing units to meet the changing needs of service users. Close collaboration with Cheshire East Council, including support with planning, helped to deliver this ambitious addition to the available accommodation.

The Charity also maintained strong relationships with local authorities, housing providers and other stakeholders to meet growing demand for its services.

The year was not without challenges. The Charity experienced an increase in property voids associated with the opening of new accommodation schemes, which had a temporary impact on occupancy levels and financial performance. In addition, a detailed review of the Charity's financial records identified a number of historic accounting errors relating to previous reporting periods, resulting in significant prior year adjustments and delays in the finalisation and filing of statutory accounts. It was also necessary to urgently appoint new accountants and auditors, as the previous auditors had not complied with their regulatory obligations that were satisfactory to the new auditors. The delay caused by the previous auditors in providing the correct financial information and supporting documents, caused significant delay in the finalising of the accounts. This resulted in the late filings.

The SLT recognise the importance of maintaining the confidence of service users, commissioners, regulators and other stakeholders and report to Trustees at bi-monthly meetings. Therefore, upon identification of these matters, the Charity acted swiftly consulted to their appointed Accountant to strengthen its financial management arrangements by appointing appropriately qualified financial resources, undertaking a comprehensive review of financial controls and reporting procedures, and implementing improvements to governance and oversight arrangements. Recommendations from this audit will form a significant part of the ongoing continuous improvements of the financial processes.

The lessons learned through the review process have informed a programme of continuous improvement focused on enhancing financial reporting, improving management information, strengthening internal controls and ensuring greater resilience for the future.

Looking ahead, the proposed transition of landlord responsibilities to Sunnyvale Housing Association is expected to reduce financial and operational risk, improve cash flow management, lessen exposure to property voids and allow staff to focus more of their time on supporting service users and improving outcomes. The Trustees believe these changes will strengthen the long-term sustainability of the Charity and enhance its ability to achieve its charitable objectives.

FINANCIAL REVIEW

Financial position

The Trustees attempt to maintain free reserves at a level which covers at least two to three months of total expenditure, which is approximately £1.24m (2024: £1.21m). Free reserves, being those reserves which are readily available without requiring the sale of fixed assets, were £171,437 at the balance sheet date (2024: £300,488).

During the year, the Charity took steps to strengthen financial management by appointing appropriately qualified finance resources and undertaking a review of financial controls, reporting procedures and governance arrangements. The resulting recommendations form part of the Charity's ongoing programme of continuous improvement. Progress is reported to Trustees at bi-monthly meetings.

Looking ahead, the proposed transfer of landlord responsibilities to Sunnyvale Housing Association is expected to reduce financial and operational risk, improve cash flow management, reduce exposure to property voids and enable staff to focus time on supporting service users, improving outcomes and developing ECHC's operations. The Trustees believe these measures will strengthen the Charity's long-term sustainability and support the rebuilding of reserves over time.

Surplus funds are invested in low risk, short to medium term, investment vehicles in line with the above objectives, so that flexibility is maintained in order to ensure the Charity is capable of taking advantage of the availability of suitable properties as and when they arise.

During the preparation of the financial statements and as part of a comprehensive review of the Charity's financial reporting processes, a number of historic accounting errors relating to prior periods were identified. These primarily related to the treatment of leasehold improvements, the recognition of prepayments and accrued income, and the recoverability of aged trade debtors.

The SLT acted promptly upon identifying these matters, undertaking a detailed review of the Charity's financial records and financial controls, and appointing additional appropriately qualified professional resources to support the restatement process. As a result, prior year adjustments have been recognised within these financial statements to ensure compliance with FRS 102 and the Charities SORP.

The Trustees acknowledge that the identification and correction of these matters contributed to delays in the completion and filing of the Charity's statutory accounts. Whilst regrettable, the SLT considered it essential that sufficient time was taken to ensure that the financial statements provide a true and fair view of the Charity's financial position and are supported by robust evidence and appropriate professional review.

Following the review, a number of improvements have been implemented to strengthen financial governance, enhance financial oversight and improve the quality and timeliness of financial reporting. The SLT are satisfied that appropriate arrangements are now in place to support the continued effective stewardship of the Charity's resources.

Financial review for the year

At the balance sheet date the charity's reserves stood at £332,424 (2024: £563,298) following prior year corrections which resulted in a reduction to reserves of £635,110.

Income for the year was £4,750,410 (2024: £4,600,308) and expenditure was £4,981,284 (2024: £4,829,999), resulting in a deficit in the year of £230,874 (2024: deficit of £229,691).

Significant Financial Events

During the year, the Charity continued to invest in its long-term service capacity and accommodation provision. A significant development was the opening of a new supported housing scheme in Handforth, comprising ten one-bedroom flats, together with the continued operation and development of Dean House. These investments supported the Charity's strategic objective of increasing the availability of high-quality supported accommodation for people with mental health support needs inline with demand and needs as identified by local authorities.

While these developments increased the Charity's capacity to support beneficiaries, they also contributed to a temporary increase in void levels as newly available accommodation was brought into service and occupancy levels gradually increased. This impacted rental income and cash flow during the period whilst associated operating and property costs continued to be incurred.

In addition, the Charity undertook a detailed review of its financial records and reporting arrangements which resulted in the identification and correction of a number of historic accounting errors. The resulting prior year adjustments affected the reported value of leasehold improvements, prepayments and accrued income, and trade debtors. Although these adjustments did not adversely affect the Charity's ability to continue operating, they resulted in reductions to previously reported net assets and contributed to delays in the completion and filing of the statutory financial statements.

The SLT have carefully considered the impact of these matters and have taken decisive action to strengthen financial management, governance and reporting processes. Additional appropriately qualified financial resources were engaged and a review of financial controls and procedures was undertaken. The SLT believe these improvements will enhance the quality, accuracy and timeliness of financial reporting in future periods and provide greater assurance to stakeholders.

Despite these challenges, demand for the Charity's services remained strong throughout the year and the SLT remain confident that the investments made in accommodation capacity, governance and financial oversight will support the Charity's long-term sustainability and ability to deliver positive outcomes for beneficiaries.

Principal funding sources

The principal funding sources for the Charity are via contracts with national local authorities, Social Services, the NHS and housing provider. The Charity does not carry out fundraising activities.

Going concern

The Trustees have considered the Charity's ability to continue as a going concern considering its financial position, contractual arrangements, available reserves, operational performance and anticipated future developments.

During the year, a review of the Charity's financial reporting identified a number of historic accounting adjustments which have been reflected in these financial statements. Whilst the review process contributed to a delay in the finalisation of the Charity's statutory accounts, the Trustees are satisfied that these matters do not affect the Charity's ability to continue operating and delivering its charitable objectives. The Trustees have taken appropriate action to strengthen financial governance, reporting processes and financial oversight arrangements.

The Trustees have also considered the planned transition of landlord responsibilities to Sunny Vale Supported Accommodation. This development is expected to provide a number of operational and financial benefits, including improved cash flow management, reduced exposure to property void risks, reduced administrative burden associated with tenancy management, utilities, council tax administration and property maintenance activities, together with greater clarity in the separation of landlord and support provider responsibilities.

This will allow management and operational staff to focus more of their time on supporting service users, improving service outcomes and continuing the development of the Charity's systems and processes. The arrangement is also expected to reduce certain financial and operational risks currently borne by the Charity and further strengthen stakeholder confidence in ECHC's service provision.

Having considered these factors, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Equity

The Charitable company is limited by guarantee with each member being liable to contribute £1 in the event of a winding up. The trustees comprise the members of the company. All of the Charity's reserves are to be used for its charitable purpose and there is not equity, or non-equity, interested parties.

Principal risks and uncertainties

Major risks have been reviewed and systems or procedures have been established to manage these risks.

FUTURE PLANS

Demand for services provided by the Charity remains high and the Charity has operated with an increase in voids due to the opening of Dean House. The Trustees continue to monitor the requirements of Local Authorities and are updated bi-monthly by the management team on activities, they are also monitor that the provision is meeting the Charity's objectives.

ECHC are in discussion with the agreement of the trustees that they will look into a partnership with Sunnyvale Housing Association and existing partners. This will enable ECHC to concentrate on providing support. Any new developments will be commissioned through SLG and RSL.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is governed by the by the Trustees who are also the members who meet on a regular basis. The day to day running is led by the SLT who report to the trustees at the bi-monthly meetings. Policy decisions are enacted by the Chief Executive Officer and staff members. Individuals who hold appropriate qualifications or who have the relevant experience, are invited to offer themselves as potential Trustees based on their affinity to the objectives of the Charity, and are elected by the existing Trustees.

The Charity is governed by its Memorandum and Articles of Association and is incorporated as a Limited Company. The member's liability is limited by guarantee. In the event of the company being wound up, members are required to contribute an amount not exceeding of £1.

East Cheshire Housing Consortium works with national local authorities, Social Services, the NHS and housing providers to provide suitable supported housing in accordance with their aims and objectives detailed above. All staff are remunerated and the charity has no reliance on unpaid volunteers.

The Charity holds Trustee indemnity insurance for the protection of the Trustees.

Recruitment and appointment of new trustees

The recruitment process is led by the SLT. New Trustee appointments are made by the existing members.

Induction and training of new trustees

Following the gathering of Trustee personal, relevant skill set information and vetting processing, including DBS checks. The SLT forward copies of minutes from latest AGM and Board meetings and key information required to carry out Trustee duties.

Key management remuneration

SLT are responsible for the setting of key management personnel salaries. Prior to March 2025, no new key personnel appointments had been made in many years.

CEO salary is set by the board of Trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02550488 (England and Wales)

Registered Charity number

1001923

Registered office

Anderson House

Goodall Street

Macclesfield

Cheshire

SK11 7BD

Trustees

S A Shaughnessy (Chair of the Trustees)

M A Smith

T Cresswell

J Carr (appointed 10.9.24)

J Wigmore Director (appointed 10.9.24)

M J Flanagan (appointed 19.2.25)

S E Horne (resigned 27.1.25)

A N A Dicken (resigned 10.9.24)

J V Bisset (resigned 9.9.24)

Company Secretary

B J Wright

Auditors

Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

Senior management personnel

B Wright (Chief Executive Officer)

R Jones

D Sproston

Professional Advisers and Banking Arrangements

Banking: Barclay Bank

Human Resources: Watershed Europe Limited

Industry Specific: NHS Specialised Clinical Advisors

Insurers: PIB Risk Services Ltd - Employer liability, Public liability, Professional indemnity, Legal Expenses, Cyber

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of East Cheshire Housing Consortium Limited for the purposes of company law) are responsible for preparing the Report of the Trustees 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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 period. In preparing those 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;

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

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

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Harts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 13 August 2026 and signed on its behalf by:

S A Shaughnessy - Trustee

Opinion

We have audited the financial statements of East Cheshire Housing Consortium Limited (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (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 March 2025 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.

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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

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 purposes 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.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

The primary responsibility for the prevention and detection of non-compliance with laws and regulations, including fraud, rests with both those charged with governance of the entity and management.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charitable group and considered acts by the group that were contrary to these laws and regulations, including fraud.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of an override of controls) and determined that the principle risks were related to income recognition. We also determined that there is a risk of inappropriate journal entries being included.

Appropriate procedures performed by the engagement team included:

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;

- Challenging the assumptions and judgements made by management in their significant accounting estimates;

- Reviewing the minutes of meetings of the Board of Trustees/Directors;

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Performing analytical procedures to identify and unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentation or through collusion.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations that could materially impact the financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Taylor BFP FCA (Senior Statutory Auditor)

for and on behalf of Harts Ltd Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

17 August 2026

31.3.25

31.3.24

Unrestricted

Restricted

Total

funds

fund

funds

as restated

Notes

£

INCOME AND ENDOWMENTS FROM

Charitable activities

2

Charitable activities

4,750,410

-

4,750,410

4,600,308

EXPENDITURE ON

Charitable activities

3

Charitable activities

4,981,284

-

4,981,284

4,829,999

NET INCOME/(EXPENDITURE)

(230,874

)

-

(230,874

)

(229,691

)

RECONCILIATION OF FUNDS

Total funds brought forward

As previously reported

1,199,737

-

1,199,737

1,133,690

Prior year adjustment

9

(635,110

)

-

(635,110

)

(339,372

)

As restated

564,627

-

564,627

794,318

TOTAL FUNDS CARRIED FORWARD

333,753

-

333,753

564,627

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

31.3.25

31.3.24

Unrestricted

Restricted

Total

funds

fund

funds

as restated

Notes

£

FIXED ASSETS

Tangible assets

10

160,987

-

160,987

262,810

CURRENT ASSETS

Debtors

11

528,120

-

528,120

470,853

Cash at bank and in hand

41,599

-

41,599

137,148

569,719

-

569,719

608,001

CREDITORS

Amounts falling due within one year

12

(298,651

)

-

(298,651

)

(178,710

)

NET CURRENT ASSETS

271,068

-

271,068

429,291

TOTAL ASSETS LESS CURRENT LIABILITIES

432,055

-

432,055

692,101

CREDITORS

Amounts falling due after more than one year

13

(98,302

)

-

(98,302

)

(127,474

)

NET ASSETS

333,753

-

333,753

564,627

FUNDS

16

Unrestricted funds

333,753

564,627

TOTAL FUNDS

333,753

564,627

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 13 August 2026 and were signed on its behalf by:

S A Shaughnessy - Trustee

Cash flows from operating activities

Cash generated from operations

1

(55,284

)

(96,683

)

Interest element of hire purchase payments

paid

(12,153

)

(7,522

)

Net cash used in operating activities

(67,437

)

(104,205

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(157,470

)

Sale of tangible fixed assets

17,478

28,872

Net cash provided by/(used in) investing activities

17,478

(128,598

)

Cash flows from financing activities

Capital repayments in year

(45,590

)

28,568

Net cash (used in)/provided by financing activities

(45,590

)

28,568

Change in cash and cash equivalents in

the reporting period

(95,549

)

(204,235

)

Cash and cash equivalents at the

beginning of the reporting period

137,148

341,383

Cash and cash equivalents at the end of

the reporting period

41,599

137,148

1.	RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.25

31.3.24

as restated

£

Net expenditure for the reporting period (as per the Statement of

Financial Activities)

(230,874

)

(229,691

)

Adjustments for:

Depreciation charges

78,077

60,119

Loss on disposal of fixed assets

6,268

14,275

Interest element of hire purchase and finance lease rental payments

12,153

7,522

(Increase)/decrease in debtors

(57,267

)

17,617

Increase in creditors

136,359

33,475

Net cash used in operations

(55,284

)

(96,683

)

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

Net cash

Cash at bank and in hand

137,148

(95,549

)

41,599

137,148

(95,549

)

41,599

Debt

Finance leases

(164,040

)

45,590

(118,450

)

(164,040

)

45,590

(118,450

)

Total

(26,892

)

(49,959

)

(76,851

)

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.

The financial statements are prepared in sterling which is also the functional currency of the company.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 Trustees do not consider that there are any critical judgements, apart from those involving estimates, made in applying the Charitable company's accounting policies.

The Trustees consider that there are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured reliably.

Grants receivable

Grants are recognised when the Charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably.All costs are allocated to applicable expenditure heading that aggregate similar costs to that category, Where costs cannot be directly attributed to particular heading the have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent., and depreciation charges allocated on the position of the asset's use. Other support costs are allocated based on the spread of staff costs.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

Over the period of the lease

Plant and machinery

-

20% on cost

Motor vehicles

-

25% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted income funds are general funds that are available for use at the trustees discretion on furtherance of the objectives of the Charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Hire purchase and leasing commitments

Rental paid under operating leases are charged to the SOFA on a straight line basis over the lease.

Pension costs and other post-retirement benefits

The Charity has operated a contribution based auto-enrolment pension scheme for the benefit of its employees in accordance with legislation on workplace pensions. The pension costs arising are charged to the SOFA under staff costs at the time of the liability is incurred.

Going concern

The directors have reviewed the charity's ability to continue as a going concern beyond the anniversary of the annual general meeting by reference budgets prepared for the financial year end 31st March 2025, the levels of reserves anticipated at that date, and the future planned investment. They have concluded that there are no foreseeable issues which would prevent the company preparing the financial statements on a going concern basis.

Financial instruments

Basic financial instruments are initially measured at transaction price and subsequently measured at amortised cost, with the exception of cash at bank which is held at fair value. Financial assets held at amortised cost comprise trade and other debtors and financial liabilities held at amortised cost comprise trade and other creditors, except taxation and social security.

Trade debtors

Trade debtors are amounts due from customers in relation to the carrying out of charitable activities.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and bank deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the performance of charitable activities and support services from suppliers.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.

Company status

The charitable company is limited by guarantee with each member being liable to contribute £1 in the event of a winding up. The trustees comprise the members of the company.

2.	INCOME FROM CHARITABLE ACTIVITIES

31.3.25

31.3.24

as restated

Activity

£

Supported housing income

Charitable activities

4,750,410

4,600,308

3.	CHARITABLE ACTIVITIES COSTS

All costs relate to unrestricted funds.

31.3.25

31.3.24

as restated

£

Wages costs (see note 7)

1,840,335

1,650,441

Agency staff costs

647,474

617,964

Rent

1,090,707

1,142,162

Rates and water

54,248

30,106

Insurance

15,643

12,603

Light and heat

156,261

83,587

Telephone

21,150

19,263

Postage and stationery

35,553

20,097

Repairs and maintenance

89,246

182,581

Computer and IT costs

8,331

5,213

Housekeeping and other sundries

37,653

84,367

Cleaning

40,304

39,926

Motor and travel

86,384

153,095

Lifelines

3,640

4,503

Staff training

11,110

12,869

Registrations

1,045

984

Legal, professional and consultancy costs

-

14,789

Bad debt written off

33,609

15,731

Depreciation of tangible fixed assets

78,077

60,119

Loss on disposal of fixed assets

6,268

14,275

Hire purchase interest

12,153

7,522

Support and governance costs (see note 4)

712,093

657,802

4,981,284

4,829,999

4.	SUPPORT COSTS

31.3.25

31.3.24

as restated

£

Wages costs (see note 7)

367,167

329,784

Rent, rates and water

32,372

32,150

Insurance

62,844

49,977

Light and heat

3,306

2,815

Telephone

39,834

61,175

Postage and stationery

11,271

12,259

Repairs and maintenance

5,626

9,597

Computer and IT costs

17,292

11,812

Cleaning

1,264

669

Motor and travel

98,908

71,244

Staff training

4,800

11,380

Legal, professional and consultancy costs

21,421

28,522

Sundry expenses

37,267

28,623

Bank charges

221

235

Governance costs (see below)

8,500

7,560

712,093

657,802

Governance costs

31.3.25

31.3.24

as restated

£

Auditors' remuneration

8,500

7,560

5.	NET INCOME/(EXPENDITURE)

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

31.3.25

31.3.24

as restated

£

Auditors' remuneration

8,500

7,560

Depreciation of tangible fixed assets

78,077

60,120

Operating lease costs

1,294,813

1,276,069

Hire purchase interest

12,152

7,523

Loss on disposal of fixed assets

6,268

14,275

6.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

During the year there were travel expenses paid to one Trustee of £88 (2024: £nil).

7.	STAFF COSTS

31.3.25

31.3.24

as restated

£

Wages and salaries

1,932,628

1,746,677

Social security costs

208,919

176,912

Other pension costs

65,955

56,636

2,207,502

1,980,225

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

31.3.25

31.3.24

as restated

Operational and Administrative

92

87

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

31.3.25

31.3.24

as restated

£60,001 - £70,000

2

1

£80,001 - £90,000

-

1

£90,001 - £100,000

1

-

3

2

Key Management Personnel consists of the Trustees and senior management team. The total employee benefits paid to Key Management Personnel during the year were £334,732 (2024: £312,172).

8.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

as restated

£

INCOME AND ENDOWMENTS FROM

Charitable activities

4,600,308

-

4,600,308

EXPENDITURE ON

Charitable activities

4,829,999

-

4,829,999

NET INCOME/(EXPENDITURE)

(229,691

)

-

(229,691

)

RECONCILIATION OF FUNDS

Total funds brought forward

As previously reported

1,133,690

-

1,133,690

Prior year adjustment

(339,372

)

-

(339,372

)

As restated

794,318

-

794,318

TOTAL FUNDS CARRIED FORWARD

564,627

-

564,627

9.	PRIOR YEAR ADJUSTMENT

During the year, a number of material errors in the financial statements for the year ended 31 March 2024 and earlier periods were discovered. In accordance with FRS 102 and the Charities SORP, the comparative amounts have been restated to correct these errors.

The errors identified and the resulting adjustments are summarised below:

Balance sheet

Correction at 1 April

2023 (£

)

Correction for year

ended 31 March

2024 (£

)

Cumulative at 31

March 2024 (£

)

Leashold improvements

(110,601

)

(18,241

)

(128,842

)

Prepayments and accrued

income

-

(261,766

)

(261,766

)

Trade debtors

(228,771

)

(15,731

)

(244,502

)

Total balance sheet

adjustment

(339,372

)

(295,738

)

(635,110

)

Corrections to leasehold improvements relate to depreciation charges which had not been made in accordance with the charitable companies policy of depreciating over the shorter of the lease term and the useful economic life of the asset.

Corrections to prepayments and accrued income relate to the correct application of recognition criteria in accordance with FRS 102 and Charities SORP.

Corrections to trade debtors relate to a review of irrecoverable debt.

Adjustments relating to:

Statement of Financial Activities

Prior periods before 1

April 2023

Year ended 31 March

2024

Increase in income

-

41,674

(Increase) in expenditure

-

(303,440

)

(Increase) in doubtful debt expense

(228,771

)

(15,731

)

(Increase) in depreciation of tangible fixed assets

(110,601

)

(18,241

)

Net (reduction) in funds

(339,372

)

(295,738

)

In addition, a correction was made to the value of the restricted fund which stood at £1,329. This fund was all expended during the 2020/21 financial year and the financial statements have been restated to reflect this.

In the amended accounts to 31st March 2024, there was a revaluation reserve in unrestricted funds comprising historical revaluation surpluses relating to an investment property. The property was sold in 2022, therefore the revaluation reserve ceased to have a continuing purpose from the date of disposal. These financial statements now reflect the transfer of this revaluation reserve to the general fund, and therefore restates the unrestricted fund to comprise only general unrestricted funds brought forward as at 1st April 2023.

10.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Motor

property

machinery

vehicles

Totals

£

COST

At 1 April 2024

348,292

234,035

262,987

845,314

Disposals

-

(67,528

)

(67,528

)

At 31 March 2025

348,292

234,035

195,459

777,786

DEPRECIATION

At 1 April 2024

284,134

234,035

64,335

582,504

Charge for year

25,663

-

52,414

78,077

Eliminated on disposal

-

(43,782

)

(43,782

)

At 31 March 2025

309,797

234,035

72,967

616,799

NET BOOK VALUE

At 31 March 2025

38,495

-

122,492

160,987

At 31 March 2024

64,158

-

198,652

262,810

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2024

241,987

Disposals

(56,528

)

Transfer to ownership

(14,500

)

At 31 March 2025

170,959

DEPRECIATION

At 1 April 2024

50,834

Charge for year

51,804

Eliminated on disposal

(32,782

)

Transfer to ownership

(11,793

)

At 31 March 2025

58,063

NET BOOK VALUE

At 31 March 2025

112,896

At 31 March 2024

191,153

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

as restated

£

Trade debtors

345,842

289,218

Other debtors

3,944

7,518

Prepayments & accrued income

178,334

174,117

528,120

470,853

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

as restated

£

Hire purchase (see note 14)

20,148

36,566

Trade creditors

192,474

82,904

Social security and other taxes

43,095

35,946

Other creditors

13,825

9,385

Accrued expenses

29,109

13,909

298,651

178,710

13.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.25

31.3.24

as restated

£

Hire purchase (see note 14)

98,302

127,474

14.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.3.25

31.3.24

as restated

£

Net obligations repayable:

Within one year

20,148

36,566

Between one and five years

98,302

127,474

118,450

164,040

Non-cancellable operating

leases

31.3.25

31.3.24

as restated

£

Within one year

1,169,542

1,140,652

Between one and five years

4,376,834

4,361,692

In more than five years

14,148,778

15,223,454

19,695,154

20,725,798

The charity has entered into a number of long-term lease agreements in respect of accommodation used in the delivery of its services to the service users. The commitments arising from these agreements are significant due to the nature of the charity's activities, which require it to secure suitable accommodation for service users over the long term in order to provide continuity and stability of care and support.

The amounts disclosed above represent the minimum contractual commitments under the leases at 31 March 2025, based on the rental and other contractual charges applicable at that date. The commitments exclude the effect of future rent reviews or other charges which are not determinable at the reporting date.

The amount recognised in the Statement of Financial Activities in the year relating to costs incurred under operating leases was £1,294,813 (2024: £1,276,069).

15.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.25

31.3.24

as restated

£

Hire purchase contracts

118,450

164,040

Liabilities due under hire purchase agreements are secured on the assets to which they relate.

16.	MOVEMENT IN FUNDS

Prior

Net

Transfers

year

movement

between

At

At 1.4.24

adjustment

in funds

funds

31.3.25

£

Unrestricted funds

General fund

1,179,337

(635,110

)

(230,874

)

20,400

333,753

Designated Funds

20,400

-

(20,400

)

-

1,199,737

(635,110

)

(230,874

)

-

333,753

TOTAL FUNDS

1,199,737

(635,110

)

(230,874

)

-

333,753

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

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

4,750,410

(4,981,284

)

(230,874

)

TOTAL FUNDS

4,750,410

(4,981,284

)

(230,874

)

Comparatives for movement in funds

Prior

Net

year

movement

At

At 1.4.23

adjustment

in funds

31.3.24

£

Unrestricted funds

General fund

1,113,290

(339,372

)

(229,691

)

544,227

Designated Funds

20,400

-

20,400

1,133,690

(339,372

)

(229,691

)

564,627

TOTAL FUNDS

1,133,690

(339,372

)

(229,691

)

564,627

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

4,600,308

(4,829,999

)

(229,691

)

TOTAL FUNDS

4,600,308

(4,829,999

)

(229,691

)

A current year 12 months and prior year 12 months combined position is as follows:

Prior

Net

Transfers

year

movement

between

At

At 1.4.23

adjustment

in funds

funds

31.3.25

£

Unrestricted funds

General fund

1,113,290

(974,482

)

(460,565

)

20,400

(301,357

)

Designated Funds

20,400

-

(20,400

)

-

1,133,690

(974,482

)

(460,565

)

-

(301,357

)

TOTAL FUNDS

1,133,690

(974,482

)

(460,565

)

-

(301,357

)

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

Unrestricted funds

General fund

9,350,718

(9,811,283

)

(460,565

)

TOTAL FUNDS

9,350,718

(9,811,283

)

(460,565

)

As part of the prior year corrections, detailed in note 9, a correction was made to the value of the restricted fund, which stood at £1,329. This fund was all spent during the 2020/21 financial year and the financial statements have been restated to reflect this.

Transfers between funds

The designated fund related historically to a dilapidations fund, ringfenced to provide for the renovation of residents' rooms. The designated fund is no longer considered necessary and has therefore been transferred in full to general unrestricted funds.

17.	RELATED PARTY DISCLOSURES

Mr J Bisset, former Chairman of the Board of Trustees charged consultancy fees of £5,232 (2024: £9,871) to the charity until resignation as a Trustee on 9th September 2024.

18.	PENSIONS AND OTHER SCHEMES

During the year the charitable company operated a defined contribution pension scheme for its employees. The assets of the scheme are held independently from those of the company in an independently administered fund.

The pension costs and charge represents contributions payable by the charitable company to the fund and amount to £54,923 (2024 £45,773). At the 31st March 2025 contributions amounting to £8,359 (2024: £7,143) were owed to the fund and were included in other creditors.