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 31st March 2026. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
New Directions (Rugby) Limited (New Directions) provides housing and support to vulnerable people, including adults with learning disabilities. The Charity provides support to people living in their own homes, residential and respite support in the Charity's own bespoke facilities, and also through day opportunities and sessional services.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
The Charity's objectives are set out in the Articles of Association but have been summarised for the benefit of the Inspection Service under the Care Standards Act and the Essential Standards of Quality and Safety, as follows:
1. The provision and facilitation of housing, social housing, supported housing and specialised supported housing to vulnerable members of society;
2. The provision of residential and day care facilities for vulnerable and learning disabled people, either on a long-term basis or on a short-term basis, and to provide respite for those who are normally cared for by their families, carers or guardians;
3. The provision of transition skills training/facilities for vulnerable and learning disabled people to enable them to learn how to live in their own homes now and in the future;
4. The provision of facilities, in the interests of social welfare, for education, volunteering, employment and for the recreation of such persons and generally such facilities and services as shall be calculated to alleviate their needs.
Our Mission and Vision is:
To make a positive difference to the lives of vulnerable people, including those with learning disabilities, by promoting their rights, independence, choices, inclusion and by providing support and opportunities for them to lead fulfilling lives.
To provide a range of quality accommodation, as well as support at home and supported living support, and services to people with learning disabilities and their families/carers to promote their self-respect, individuality, dignity and to ensure they are safe and able to achieve their goals and wishes.
We Believe:
Everyone is equal and should have the same chances and choices in life
People with learning disabilities should be listened to and supported to make choices that are right for them
That the views of families, friends, carers and staff are very important and should be heard - People should be supported and encouraged to be as independent as their potential allows
That we should always strive to improve our services and adapt them to the changing needs of the people we support whilst ensuring value for money services
We will do that:
By putting the interests of vulnerable people, including those with learning disabilities, and their families at the heart of everything we do, listening to their wishes, hopes and aspirations of their futures.
By adopting a person-centred approach, promoting individual choice, independence and by valuing and treating everyone with dignity and respect.
By providing high quality accommodation and support through a range of supported living, residential, short stay/respite, home care options, day, leisure, social activities and support towards volunteering or employment opportunities.
By ensuring our staff are well supported, trained, highly motivated, able to deliver the highest quality individually tailored support services to each person we are responsible for.
By striving to improve services, to continually raise local awareness, promoting the positive contribution and potential of people with a learning disability within their community.
New Directions is committed to enhance the rights, independence, choice and inclusion of people with disabilities and to provide opportunities for them to lead full and purposeful lives and to be involved in the community they live in.
Public Benefit
The Charity exists to support vulnerable people, including those with learning disabilities, their families and carers; their choices and wishes are at the very heart of everything we do, through our person-centred services. Our links with families, friends and carers are very important to the Charity and we aim to maintain these and offer support as far as we are able. The Charity regularly reviews the ways in which it engages with people who use the services, families, friends and carers. Current engagement methods include newsletters, emails, social media and meetings with individuals.
In setting the Charity's objectives and strategies we have given due consideration to the Charity Commission's guidance on public benefit.
The Charity currently supports over 115 people with a disability and employs over 200 people from Rugby and the surrounding areas.
We also work with local schools, colleges and businesses to improve their understanding of disability issues, facilitate opportunities for joint partnership working and more inclusion for people with disabilities, both in the community and within social networks. We work in partnership with local groups and charities to share our resources wherever we can, including offering room hire within our buildings at affordable rates.
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
Charitable activities
The Charity continues to use its financial reserves enabling it to invest in innovative new developments and services to meet the needs of its existing and future customers. In 2025/26 this took the form of completely renovating our Vicarage Road property. Vicarage Road now adds to the capacity of Milner House, increasing our number of available Respite beds from 3 to 7 in an attempt to meet the increasing demand from local families. On the 16th March 2026, CQC issued the amendment to registration enabling the charity to meet this need.
Milner House, our residential respite service saw an occupancy rate of 90%. We continue to work with our funders to meet the increasing level of demand, identifying new people to support and to maximise the income of the property to ensure that we can secure the long-term future for the service as it is so vital for so many families across Rugby and Warwickshire.
Poppy Place and Daisy Court, our newly built 10 bed care home, remained our two residential homes during 2025/26 supporting a total of 16 people with disabilities with Poppy Place achieving full occupancy by the end of the financial year and Daisy Court achieving 90% occupancy by the end of the financial year.
Community Choices Network (CCN), our day opportunities facility at The Exchange, has seen a sustained level of use with a waiting-list now established.
Richmond Court, Gateway Court, Kings Court, Lennon Court and Queens Court continue to offer supported housing for up to 75 people living in their own flats, enabling them to live as independently as possible.
Training compliance levels were further improved from the 99% baseline established last year with 100% compliance being achieved by December 2025.
We have received a number of grants and donations during the year including two grants received from Rugby Benevolent Fund totalling £7,000. A grant of £5,000 was secured from the B&Q Foundation towards the redevelopment of the garden area within our Respite service. The Rotary Club of Rugby donated £1,500 and £1,250 was received from the Sir Edward Boughton Long Lawford Charity. Smaller grants were received from Warwickshire County Council’s grant for outdoor games, The Rotary Club Breakfast Club and Heart of England Co-op
We received a generous donation from the estate of Mr D Clark, whose son was supported by New Directions Rugby for many years, in excess of £17,000. We also received several smaller donations from individuals via our CAF Donation page of approx £250 during the year and received funds raised by the ‘Pantomaniacs’ who have resolved that each year funds raised from their seasonal Panto performances would be donated to New Directions Rugby.
Quality Assessments and Achievements
Care Quality Commission Assessments
All our homes and services hold a "Good" rating, under the CQC assessment regime, with very positive inspection reports with no actions to follow up.
Disability Confident Employer
New Directions maintains its status as a Disability Confident Employer; this is the successor to "Positive about Disability".
Feedback and Involvement by the People we Support
Customer and Stakeholder Satisfaction Feedback
The views of everyone involved with the Charity are very important to us. We obtain regular feedback through user-friendly questionnaires and also through group meetings. These enable customers and stakeholders to tell us what we do well and what they would like us to change. Our electronic feedback forms enabled even more people to give feedback this year with high levels of satisfaction being expressed from 191 respondents which is a great increase on the previous year’s 183 responses with each respondent being able to submit anonymously should they choose to. The percentage of respondents rating the organisation as ‘Good’ or ‘Very Good’ in all areas was 95%.
Person Centred Plans
Everyone we support has a person-centred plan, which involves placing the individual at the centre of the plan, their family and friends and support staff. These plans are reviewed annually and are a key part of our organisational philosophy. We look at what is important to the individual and how they can be supported to achieve their needs and desires.
Voices and Choices and Tenants meetings
The people we support meet on a regular basis, supported by invited staff members, in a Voices and Choices meeting. Tenants are also invited to quarterly meetings to discuss their homes and where they live. The people we support have the opportunity to make suggestions and to tell us about their ideas at these meetings. These groups continue to be involved in shaping future services and to play an active part in governance.
Developing our Communications
We continue to produce regular communications, which are formatted in an accessible, easy to read and understandable format. This newsletter highlights the achievements and adventures of our customers and staff along with future developments. We also send out email news updates, and information through our Facebook, Twitter, LinkedIn and Instagram social media pages and through updates on our website.
The "Star of the Month" award which recognises the hard work and commitment of individual staff members continues to be well received and valued alongside our Teamwork and CEO's Outstanding Contribution awards to recognise our staff in greater numbers for their contributions.
Developing our Staff
New Directions is committed to and invests in a comprehensive staff training and development programme for all its staff team, so they are knowledgeable, skilled, continually updated and to ensure they can offer the highest quality of services to people with learning disabilities. The improvements put in place and felt over the last year in terms of learning and development has seen 100% compliance in training achieved across the organisation and satisfaction and feedback from staff on their development rise accordingly.
The Board would like to thank all the staff and volunteers for their hard work and dedication over the last year.
Future Developments
Our 2026-28 strategic objectives are:
To expand our respite provision by redeveloping and repurposing Vicarage Road into a 4 bed respite care home to be run alongside Milner House
Embed our Awards ceremony held within our 2024 AGM in to every AGM going forward
Refresh the New Directions Website and branding in readiness for our 75th year celebrations
Celebrate our 75th year of providing accommodation and support in 2026
Secure the Care Home tender for Warwickshire's framework of residential providers
Expand our training offer externally and achieve accreditation through Highfield Awarding Body for Compliance
Secure a new Minibus through fundraising to increase our fleet of company vehicles
Maintain our Supported Living void levels at below 5
Financial review
Review of past financial year
The Charity has had another successful year and continues to build its reserves to ensure the future security for those people it supports. Vicarage Road was successfully redeveloped and opened during the financial year to significantly increase our respite capacity.
Voids have reduced significantly across the organisation and in particular within our Supported Living provision. Our levels of Agency staff use have reduced dramatically as a result of improved recruitment processes, providing a more resilient staff base supported by our Bank Staff.
The investment in growth seen in recent years means that we are in a strong financial position going forwards and the budgets for 2026/27 indicate that all services will make a positive financial contribution to the Charity. Managers are required to report directly to the Board on their service and are held to account if budgets are not maintained.
The Board, CEO and management team recognise that while 2025/26 has been a very busy year, that the hard work undertaken across the organisation has enabled the organisation to attain very positive out-turns by the end of the year for all Key Performance Indicators (KPI’s). All are committed to keeping the running costs of the Charity as low as possible, whilst maintaining our high quality, responsive services.
Going Concern Basis
Our funders announced a 3.4% funding increase for the year of 2025/26, yet with careful planning the Board of Trustees was able to put in place an 4% increase for our frontline staff in recognition of the continuing cost of living pressures. The Charity has achieved planned growth in the last few years and the Trustees are confident the Charity will continue to operate as a going concern for the foreseeable future.
Reserves policy
The trustees of New Directions believe that the Charity should hold financial reserves because:
1. It has no endowment funding and is dependent for income upon fees received from the local government. Under present circumstances this may be expected to reduce significantly and/or at short notice
2. It requires protection against and the ability to continue operating despite any unforeseen events or temporary shortfalls
3. It is necessary to provide funds which can be designated to specific projects in line with our strategic objectives
4. To cover administration, fundraising and support costs without which the Charity could not function.
The trustees consider it prudent that free reserves, defined as net current assets less amounts that are designated or restricted for a specific purpose, should be sufficient to cover 3-6 months' administration, fundraising and support costs, and to provide a pool from which funds can be designated.
The trustees also consider it prudent to ensure that it retains sufficient cash to cover 3 months' cash flow.
The required level of free reserves and cash held, along with the position at the end of each quarter, is reported to the trustees at each board meeting.
The reserves policy is reviewed by the trustees every three years. The Charity holds general unrestricted funds of £3,997,121 (2025: £3,709,247), unrestricted designated funds of £313,243 (2025: £317,919) and restricted funds of £30,024 (2025: £31,396).
Governing document
The company is a charitable company limited by guarantee originally incorporated on 19 September 1991. A Memorandum and Articles of Association governs the Charity. It is independent from all other organisations and public bodies.
Organisational structure
The Charity is governed by a Board of Trustees (Directors), supported by a management team led by a Chief Executive. The management team consists of a Finance Manager, a Human Resources Manager, Operations Managers, Registered Managers, Deputy Managers, Facilities Manager, Training Manager and Office Manager. The Chief Executive is responsible for the day to day running of the Charity and is appointed as the Responsible Individual as required by the Care Standards Act and the Essential Standards of Quality and Safety. The Chief Executive, Finance Manager, Human Resources Manager and Operations Managers report directly to the Board of Trustees.
Board of Trustees
The Board of Trustees presently consists of ten members and meets a minimum of four times per annum. The maximum number of trustees is twelve and shall be not less than five. The powers of the Board are defined in the Articles of Association dated 7th January 2014. The Board is made up of members who have a range of experience in areas such as special needs education, finance, psychology, business development, housing and local authority, legal matters and family members of the people we support, who can give an insight into living with people with learning disabilities. The board members provide complimentary skills, experience and knowledge ensuring an objective view in any management discussion.
The Board of Trustees presently consists of ten members and meets a minimum of four times per annum. The maximum number of trustees is twelve and shall be not less than five. The powers of the Board are defined in the Articles of Association dated 7th January 2014. The Board is made up of members who have a range of experience in areas such as special needs education, finance, psychology, business development, housing and local authority, legal matters and family members of the people we support, who can give an insight into living with people with learning disabilities. The board members provide complimentary skills, experience and knowledge ensuring an objective view in any management discussion.
Trustees are openly recruited through the use of the Charity website, the national REACH volunteering website and network, social media and direct promotional mailings to families of those supported by the charity as well as through 'word of mouth'. The skills required from new Trustees are identified by analysing the Trustee skills audit held by the charity. Potential Trustees expressing an interest in the role are invited to hold informal discussions with the Chief Executive, attend an informal meeting with the Chair and or Vice Chair of Trustees prior to attending Board and subcommittee meetings as an observer. References are taken up and a full DBS check obtained for any Trustee considered for appointment. Any prospective Trustee brought on to the Board during the year is co-opted by the Trustees until they are formally proposed and elected to the role at the next AGM.
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:
Regulation, Compliance and Funders
As a provider of supported living, respite, supported housing and residential care services the Charity is subject to regulations set out by the Care Quality Commission. The Charity is subject to planned and unplanned inspections to ensure that all regulations are complied with. The Chief Executive reports the findings of all inspection reports to the Board and any action taken or needed. In complying with the Essential Standards of Quality and Safety from the Care Quality Commission, the Trustees are of the opinion that all risks relating to the activities of the Charity have been identified and robust systems and procedures are in place to manage those risks.
The Charity works closely with the Local Authority, Warwickshire County Council and the National Health Service in the form of the Integrated Commissioning Board (ICB). Most customers are financed by fees paid by either Warwickshire County Council or the ICB. The Charity has developed good working relationships with Warwickshire County Council and the ICB and has developed innovative services and accommodation in line with the needs of the people it supports and commissioning intentions. Some customers also pay out of their own personal budgets.
Structure, Governance and Management
The Chief Executive is responsible for ensuring that all the financial controls are in place. The Finance Manager carries out the day-to-day functions and is responsible to the Chief Executive.
Major financial decisions are made by the Board of Trustees.
The Board has confirmed its compliance with the Good Governance Code of Practice as recommended by the Charity Commission. This includes internal controls, financial, governance and risk management, whistle-blowing, equality and diversity, performance appraisal, clarity of roles and measures to avoid personal benefit or conflicts of interest.
Pay and remuneration of key management
All key management posts have salary scales in place informed by benchmarking data and/or the benchmarking advice of our external HR advisors. Progression through each salary scale is subject to a performance review process and is dependent upon the achievement of targets, overall contribution to the company's strategic objectives and financial affordability. All posts are regularly checked against the social care market locally and regionally to ensure competitiveness and our ability to effectively recruit.
Pay uplifts are agreed across the organisation each year by the Trustees as part of the charity's budget-setting process and applied from April each year. Annual pay uplifts are dependent upon the financial uplifts received from our funders, principally Warwickshire County Council and the Integrated Care Board. As pay uplifts are applied across the whole organisation, this ensures that the differentiation between roles and responsibilities is protected and a clear progression route is maintained.
Risk management
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Charity has a risk strategy in place along with a detailed risk register ensuring that the risks are identified, assessed and managed. Significant risks to the charity are reviewed by the Trustees at every Board meeting.
The auditors will be proposed for re-appointment at the forthcoming Annual General Meeting.
The Trustees' report, including the strategic report, was approved by the Board of Trustees.
The Trustees, (who are also the directors of New Directions (Rugby) Limited 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 Charity 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 Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of New Directions (Rugby) Limited (the ‘Charity’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:
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 Charity 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.
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 Charity’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 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, except to the extent otherwise explicitly stated in our report, 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 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 our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which 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.
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 gained an understanding of the legal and regulatory framework applicable to the Charity and the industry in which it operates and assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Based on our understanding of the Charity and industry we identified that the principal risk of non-compliance with laws and regulations related to breaches of Health & Social Care Acts, Human Rights Act, Safeguarding, Mental Capacity Act, Health & Safety and Environmental Regulations, GDPR, Charities Act 2011, Companies Act 2006 and UK Employment Law. We also evaluated management incentive and opportunities for fraudulent manipulations of the financial statements.
Audit procedures performed included:
Reviewing returns made to Companies House, HMRC and the Charities Commission;
Reviewing board minutes for any evidence of breaches of laws and regulations or fraudulent activity not otherwise disclosed to the auditors;
Discussions with management, including consideration of known or suspected incidences of non-compliance with laws and regulation and fraud;
Identifying and assessing the design effectiveness of controls in management have in place to prevent and detect fraud;
Challenging assumptions and judgments made by management in their significant accounting estimates and assessing if these indicate evidence of management bias;
Reviewing the accounting records for large and unusual journal entries and testing any identified and in particular the rationale for any transactions outside the Charity's charitable activities;
Reviewing the accounting records for large and unusual bank payments and testing any identified and in particular the rationale for any transactions outside the Charity's charitable activities;
Testing a sample of debit entries in the income & expenditure account to check they are bona-fide costs of the Charity and in line with the charitable objectives;
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 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 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 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
New Directions (Rugby) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Richmond Lodge, 27 Bilton Road, Rugby, Warwickshire, CV22 7AN.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. At 31 March 2026, the charity had loan facilities totalling £2,508,488 which were due to mature in July 2026. These facilities have subsequently been refinanced on similar terms and therefore the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements, despite the reported net current liabilities as at 31 March 2026.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income is recognised when the Charity 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. Income for charitable activities is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Grant income is recognised when the Charity 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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
The trustees consider that the freehold buildings are maintained in such a state of repair that their residual value is at least equal to their net book value. As a result, the corresponding depreciation would not be material and therefore is not charged in the Statement of Financial Activities.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Support cost allocation
Support costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocated directly.
Bad debt provision
The charity makes an estimate of the recoverability of trade and other debtors. This involves assessing the likelihood of collection based on historical experience and specific knowledge of individual debtor circumstances. Actual outcomes may differ from these estimates. The bad debt provision at 31st March 2026 amounts to £252,996 (2025: £190,580).
Of the £5,834 (2025: £30,800) grants received during the year, £387 (2025: £800) were government funded.
Support costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocated directly.
The average monthly number of employees during the year was:
As at 31 March 2026, there were 146 (2025: 146) full time equivalent employees.
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The bank loans are secured on Richmond Lodge, 27 Bilton Road, Rugby CV22 7AN, Poppy Place, 1-3 Alfred Street, Rugby CV21 2EL, Daisy Court, 1A Market Street, Rugby CV21 3HG and 30 Vicarage Road, Rugby CV22 7AJ, together with a fixed and floating charge over all the charity's other assets.
The loan facilities matured in July 2026 and have subsequently been refinanced on similar terms.
Interest was paid on the loan during the year amounting to £177,130 (2025: £189,148).
Included within other creditors is £57,725 (2025: £85,796) of cash at bank held in bank accounts in the name of charity but operated in the charity's capacity as appointees of certain service users.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held subject to specific conditions by donors as to how they may be used.
These are unrestricted funds which are material to the Charity's activities.
Other immaterial funds consist of six balances, being, communal assets fund, Queens Court fund, Kings Court fund, Gateway fund, supported living garden fund and Daisy Court fund.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated for an average term of 10 years and rentals are fixed with rent reviews taking place on average every 3 years.
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2025 - none).