The trustees, who are also the directors for the purposes of company law, present their annual report and financial statements for the year ended 31 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 Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objective of the charity is to provide housing in Barnard Castle in accordance with the aims and principles of the Abbeyfield Society Limited to whom it is affiliated. Abbeyfield House was purchased in 1968. This property was extended in 1973 when the former surgery at the rear of the premises was acquired. It has been a priority to upgrade the house to provide high quality accommodation which meets the aspirations of the residents.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Abbeyfield House had three vacant rooms in April 2025 which remained unoccupied throughout most of the year. However, improved signage, local promotion and online marketing resulted in the second-floor apartment and ground floor room being let by January 2026 and the small room on the first-floor allocated by March 2026.
One bungalow became vacant towards the end of 2025 and was relet immediately following some minor upgrading.
Abbeyfield House successfully passed its Legionnaires, HMO and fire safety assessment with minor actions required.
Some of the planned maintenance to the interior and exterior of Abbeyfield House carried out over the previous period was included in this year’s costs. Work was carried out to fulfil the minor actions from the HMO and fire inspections. The windows to the front and some to the side of Abbeyfield House need to be replaced. However, due to the strategic position of the house on the main street and it being in a conservation area it has taken much work by the manager and a trustee to deliver the planning permission. Work is due to be completed by the autumn of 2026. Led by a trustee, the garden on the Montalbo side of the house has been upgraded to give a more open aspect and make it more manageable. The donated restricted funds were utilised for this purpose. Residents were consulted at all stages as the garden improvement progressed.
The society generally has low staff turnover. One housing assistant position became vacant. At the time due to low occupancy, it was replaced at fewer hours. However, this has been revised as occupancy levels increased.
The welfare of our residents and staff is always a priority. We have continued to deliver celebrations and events throughout the year which have received positive feedback from residents. We have volunteers who visit regularly who spend time with individual residents who report that it enhances their wellbeing. Over the year we delivered more in-house activities involving volunteers and pupils from a local school. Residents were overwhelmingly positive about services, staff and welfare support. As our contribution to Abbeyfield’s 70 Years celebration we committed to have at least 70 activities or events for residents in 2026. This was achieved by August 2026.
The appointment of one trustee and the resignation of another was confirmed April 2026.
Abbeyfield England has continued to develop its offering to affiliate Abbeyfield societies. Societies have been able to contribute through online working groups and regular online hubs enable societies to discuss current issues and strategic matters. Local societies hold regular face to face meetings which enable managers and trustees to discuss more operational issues and give each other support. Barnard Castle Society has achieved a high profile at national level due to the work of the manager with key personnel at Abbeyfield England.
Our priorities remain upgrading and future-proofing the property, maintaining a high-quality service, the promotion of the society, allocation of vacant rooms, recruitment of new trustees and volunteers and ensuring the economic viability of the society.
Full accounts are attached to this report. As detailed in the Statement of Financial Activities, the surplus for the year amounted to £14,188 (2025: £19,554).
No restricted funds were received during the year. The balance of unspent restricted funds was reduced to £333, which is to be used towards the creation of a sensory garden for the enjoyment of our residents.
Unrestricted funds are needed:
a) to cover administration and support costs without which the charity could not function and;
b) to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice.
Free reserves are unrestricted funds not held as functional fixed assets. The Society aims to keep free reserves of at least six months' running costs, which equate to roughly £80,000. This would cover any gaps in occupancy or unforeseen costs, should any of the properties require urgent repair work. The charity had free reserves of £131,767 at 31st March 2026 (2025: £128,042). Surplus funds will be used to further improve the facilities for our residents.
a) to continue to provide housing in Barnard Castle in accordance with the aims and principles of the Abbeyfield Society Ltd.
b) to work towards full occupancy.
c) to continue improvements to Abbeyfield House to ensure that it meets the current and future needs of our residents.
d) to effectively invest and utilise our remaining funds to extend our provision for older people in Barnard Castle.
e) to develop the garden, courtyard space and the old outside office building for our residents to enjoy.
The Company was incorporated on 16th May 1967 for the provision and management of housing, accommodation or assistance, including providing and maintaining or assisting in providing and maintaining houses and homes, for the relief and care of elderly persons suffering from the disabilities of old age or otherwise being in need. It is a Company Limited by Guarantee and not having a share capital as set out in the Companies Act 2006.
The Society is managed by its trustees who are assisted by a manager, deputy manager, three housekeepers, a house assistant, a handyman and house volunteers.
The trustees and staff ensure that risks are monitored and assessed. Reviews of insurable risks are undertaken regularly. Systems have been established to mitigate identified risks and expert advice is taken where necessary.
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:
The appointment, induction and training of trustees is organised by the trustees as a body.
New trustees work closely with more experienced trustees to familiarise themselves with their role and to have their questions answered.
The Society utilises the facilities and development opportunities provided by the Abbeyfield Society to support the development of new and existing trustees.
The trustees act as a management committee which also includes the manager, housekeeping manager and volunteers as appropriate.
None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Abbeyfield Barnard Castle Society Limited (the charity) for the year ended 31 March 2026.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 7 to 15 form part of these financial statements.
The Abbeyfield Barnard Castle Society Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Abbeyfield House, Galgate, Barnard Castle, Co Durham, DL12 8BL.
The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold properties are not depreciated as their residual values are not considered to be less than cost.
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.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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).
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.
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.
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.
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.
Investment property costs
Repairs & maintenance
Insurance
Rates & water
Light & heat
Repairs & maintenance
Insurance
Housekeeping
Residents care
TV licences
Gardening
Staff costs
Communications & IT
General office
Other costs
Affiliation fees
The average monthly number of employees during the year was:
The average number of full-time equivalent employees during the year was 5 (2025: 5).
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 fair value of investment property has been arrived at by applying the Nationwide House Price Index [Percentage movement in value] to the value on the date of acquisition up to the reporting date. The trustees also made reference to market evidence of transaction prices for similar properties.
The valuation has been calculated by the trustees, and not by an independent valuer.
The carrying value of land and buildings included in investment properties comprises:
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 on trust subject to specific conditions by donors as to how they may be used.
The Sensory Garden fund consists of legacies and donations received towards the costs of producing a sensory garden for the residents at Abbeyfield House.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2025 - none).