The trustees present their annual report and financial statements for the year ended 31 December 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, 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 objectives of the charity are to advance the Christian religion by the provision of a house of retreat, primarily but not exclusively for members of the Church of England who are resident in the Dioceses of Newcastle and Durham and beyond, which may also be used for any other charitable purpose which, in the opinion of the trustees, will maintain and strengthen the religious and educational life of its users.
Shepherds Dene Retreat House is a grade two listed building set in 27 acres of land comprising formal garden, woodlands, and fields. It is open throughout the year to any who wishes to come for a time of spiritual refreshment, relaxation, wellbeing and education. Members of the public are welcome to walk in the grounds and many local residents chose to do so.
As a Church of England Retreat House, Shepherds Dene welcomes guests of all faiths and none, from the UK and abroad.
The house has a chapel, a prayer house and other quiet places. There is a programme of events mainly, although not exclusively, centred on the Christian faith. There are events involving music, crafts, guided visits to sites of historical and spiritual significance and walks in the beautiful surrounding countryside. Our focus is on spiritual, physical, mental wellbeing and, cultural and educational engagement.
Shepherds Dene is being used increasingly for writing retreats, both by groups of fictional authors and by PhD students. We are seeking to broaden our offer to reach a wider audience while keeping to the spirit of objectives and activities.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
2025 saw Allison Hilton enter her second full year as Director of Shepherds Dene, after taking up her appointment in December 2023.
We reported in 2023 that Shepherds Dene had become a major beneficiary of the estate of the late Dorothy Smith. (Dorothy was a lovely lady who often came on pilgrimages and other trips in the SD programme, and also booked in for sustained personal retreats from time to time.) During the course of 2024 we had received a tranche of £100,000 from the estate. Dorothy also left us her house 3 Park View, a 2 bedroomed stone-built terraced cottage in Park Village near Haltwhistle. After careful deliberation, 3 site visits, and the advice of 3 well-established regional estate agents, the trustees had decided to sell the property as it stood, rather than invest in the major restoration that would be needed. All 3 estate agents recommended an asking price of £100,000. The house was put on the market by Rook Matthew Sayer. It quickly achieved an offer of the original asking price, which was accepted.
The sale was finally completed early in 2025, but not before a late request from the vendor for a £5000 ‘goodwill’ discount. We resisted this request, pointing out that we believed the price to be fair, and that as trustees we were obliged to achieve best value for our trust.
This quick sale also had the benefit of bringing forward the registration of the land, which was being undertaken on our behalf by Cartmell Shepherd, the executors. This in turn, being the only outstanding transaction, led to the completion of Dorothy’s estate and the receipt of the final tranche of funds from the Executors. The final sum received overall was £225,000. As far as we can tell this is the largest gift the house has received outside of the initial gift of the house itself to the diocese of Newcastle by the Newell family. Some of this money was invested in the CCLA fund
The dawn of 2025 saw the house straight into the restoration of the historic staircase, which dominated the entrance hall, and the laying of a new bespoke carpet throughout the staircase, hall, lounge and central corridor. This project had been an aspiration over many years. (We were about to address it when Covid hit, and all capital projects had to be put on the back burner.) Finding a replacement carpet of quality, for an affordable price proved challenging. Dave Crampton of Silkwood Flooring proved very helpful. First of all he suggested installing a ‘runner’ carpet down the 2 main flights of stairs. He also recommended simply taking the carpet pattern right up to the edge of the floor area, in the hall, lounge and floor area without creating a border. This would enable the carpet to be laid in 2 sections and be much more cost-effective. We therefore ordered from Silkwood a bespoke carpet in the ‘Durham Carpets’ tradition, which was to be woven on looms now located in Poland. The staff chose the pattern in shades similar to the carpet being replaced.
John McManners and Allison Hilton managed this project for SD. The bespoke carpet was woven in November. We asked Silkwood to keep it in their warehouse until the beginning of January, This being a quiet time when the carpet could be installed with minimum disruption.
We also engaged with Langley Flooring, a specialist restorer of woodwork. On Wed Jan 1st the stair carpet was stripped. On the 2nd and 3rd Langley restored and waxed the stairs, which would now be more exposed, with the installation of the runner. On 6th and 7th January Silkwood took up and disposed of the old carpet and laid the new one.
Later Silkwood returned to install brass retaining rods on the stairs. Langley returned to restore the oak paneling alongside the stairs. They also replaced some missing ‘barley sugar’ spindles, restored the rest of the bannister and tightened the remaining spindles.
Allison acquired a number of second-hand dark-leather sofas and armchairs of good quality, to complete the refurbishment of the lounge.
This work was done with the minimum of disruption, without causing any loss of income. The result was not only aesthetically pleasing and in harmony with the Arts and Crafts design of the house, it also restored the safety of the staircase to the highest level.
The trustees have commissioned a small plaque to be hung alongside the staircase, acknowledging the work done, the kind donations of many towards the project, and the generosity of Dorothy Smith’s bequest.
In March 2024 the board had said goodbye to 2 trustees, who had given much distinguished service: namely Philip Davies (from Durham diocese) and Derek Nicholson (from Newcastle diocese). It was decided to do a skills audit of the present board in order to identify gaps to be filled. Alistair Jenkins undertook this task. Recruiting the trustees we needed required some negotiation with Newcastle diocese, to partially restructure their representation on the board. This enabled the board to directly appoint one new trustees. Ingrid Horne was appointed on the 20 December 2025. We are in active conversation with another experienced candidate, who would very much address the identified needs.
Appointments by the diocese of Durham have been on hold during the very long interregnum between diocesan bishops, so there remains a vacancy for a trustee to be nominated by the Bishop of Durham. (Philip Davies was the last such nominee.)
John McManners stood down as chair in September 2025, having completed 12 years as a trustee (the last 6 years as chair). Alistair Jenkins has kindly agreed to take over. He has served on the board for a number of years and given a great deal of wise and helpful counsel. He is currently Finance and Operations Director at St Chad’s College, in the University of Durham. He lives and worships in Corbridge. John agreed to serve as acting chair during a transitional period which was completed on January 31st.
A Quinquennial Inspection by Maya Polenz was completed and presented in 2025. This is a very thorough and comprehensive piece of work which requires careful appraisal and prioritising of the work to be undertaken. We have however addressed some matters. (Issues to do with the staircase for example, have all now been resolved with the completion of the restoration project.)
The Coach House cottage continues to function well in collaboration with our partners Sykes, the letting agency. This cottage was relaunched upon the market some two and a half years ago after a major refurbishment of the building and the courtyard. The arrangement with Sykes has increased the occupancy and the income of the cottage. It is also a flexible arrangement that enables us to retain certain days/weeks when the cottage is needed for overflow accommodation from the house. We continue to work with Sykes to optimise the use of the cottage.
The Trustees have also decided to take the first steps in the restoration of the Stable Block, which is part of the same complex. The Coach House and Stable Block sit at right angles to each other and form two sides of a quadrangle around the central court yard. The other sides are bounded by a high wall which incorporates an entrance. The wall and buildings are all built in local stone and are of a design integrity with the main house. The Stable Block comprises two loose boxes which open directly from the yard. Above them sits a hay loft. The stone-flagged pitched roof is punctuated at the front by a short pitched extension which, in its day, permitted a hoist at the front to lift bales of hay and straw into the loft through a high opening.
We have engaged Howarth Litchfield to work with us and Alistair Jenkins is to project manage. HL recommended a phased approach. So far we have undertaken phases one and two. Phase one saw the submission of various designs for the refurbished cottage. The preferred option was the creation of a two-story, one-bedroom cottage. This would create another space which could be let with Sykes. This would conserve the Stable Block, provide a sustainable future for the building, and provide a new source of revenue for S/D.
Phase two saw HL make a preapplication for this development to the local authority. The trustees have decided not to proceed with phase 3. At this point the project will be paused. Given the issues raised by the QI report, there will need to be careful prioritisation of resources. Such a pause would also give us time to raise additional funds for the Stable Block redevelopment project if we decided to go ahead.
Early in 2025 the trustees were approached by Connect, a Sunderland ecumenical network. They were currently managing a programme of support for clergy wellbeing, called ‘Keeping it Together’ funded by the Henry Smith Foundation. They asked if SD would be interested in taking over the management of the program. The reasons were threefold:
(i) Sunderland Connect was soon to disband, but the program was up and running and well received. They had a well-established delivery team in place, and they and Henry Smith would like it to continue.
(ii) They had already run some retreats at SD, which had been very successful.
(iii) The reach of the program had grown well beyond its original Sunderland footprint and SD, as a retreat house for both the NE dioceses would be a more appropriate body to manage the project and to be a venue for some of the events.
After conversations between JMc and AH, Bev Fozzard of Connect and Dave Burke who was leading the delivery of the program (along with Rachel Boughton) we agreed to explore further. There followed conversations with Henry Smith, who were keen to continue the program and to maintain their funding, and Dave Burke came to address the trustees and answer questions. We decided to take over the program, which has run well throughout the rest of the year. There is every prospect of its continuance in 2026 with continued support from the Henry Smith Foundation.
Allison has sustained and developed a number of her initiatives from last year, including afternoon teas, Christmas lunches and a summer Arts and Craft Fayre.
Allison has also extensively reviewed and renewed our Health and Safety protocols and run a program of staff training.
During the course of the year there have been some staff resignations and some challenges with staff illnesses. Allison has managed these circumstances well with some excellent new recruits and the staff covering occasional crises very well and positively
Incoming resources
Total incoming resources for the year amounted to £371,394 (2024: £603,348). This included income from lettings of £320,146 (2024: £354,804) and income from grants, donations and legacies amounted to £28,627 (2024: £220,175)
Expenditure during the year
Outgoings were £466,021 (2024: £443,369) within which, staffing costs were £249,299 (2024: £236,595).
Net deficit of £95,508 was made (2024: surplus £159,979).
Reserves polcy
It is the trustees' policy to maintain free reserves at a minimum of three months' operating expenditure. At 31 December 2025, the free reserves (those not tied up in restricted funds or fixed assets) were below the desired level however given the current cost of living pressures, this is not an unexpected position.
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the companies Act 2006.
Charity Constitution
The charity is governed by the Charity Commission Scheme dated 17 May 2011 and is registered with the Charity Commission under number 1138224.
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:
Induction and training of new trustees
Under the Charity Commission scheme the Newcastle Diocesan Society is the custodian trustee of the charity. Shepherds Dene is the sole corporate trustee of the charity and the constitution of the corporate trustee specifies that its directors and trustees shall include
1. The Bishop of Durham (or his/her nominee);
2. The Bishop of Newcastle (or his/her nominee);
3. The Archdeacon of Northumberland or such other archdeacon from his/her diocese a he /she may choose
to nominate from time to time;
4. The Archdeacon of Durham or such other archdeacon from his diocese as he may choose to nominate from time to time;
5. Two nominees of the Newcastle Diocesan Board of Finance;
6. Two nominees of the Durham Diocesan Board of Finance.
In addition, those trustees may appoint up to 2 other trustees.
Key management remuneration
The Trustees/Directors of Shepherds Dene receive no salaries, expenses or other emoluments, for the work that they undertake on behalf of the Retreat House. The role of Director is a salaried post of full time employment, with responsibility for the strategic development, financial performance and promotion of Shepherds Dene and its programmes. The Director has responsibility for the management, welfare and development of staff and volunteers of Shepherds Dene, the care and wellbeing of guests, the maintenance of the fabric of the house and gardens and the management of the financial resources. No accommodation is provided for the Director unlike most other retreat houses.
Investment powers
The charity's governing document permits wide powers of investment. The trustees generally follow the ethical investment policy of the Central Board of Finance of the Church of England.
Related charities
The charity is part of the work of Newcastle and Durham Diocese and is related to other charities established for the furtherance of that work.
Risk Management
The trustees are continuing to review risks. They are conscious of the need to maintain strong links with both Dioceses, in the light of further reductions in diocesan grant support, and to continue to review staffing.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Shepherds Dene (the charity) for the year ended 31 December 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Raising funds
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Raising funds
Shepherds Dene is a private company limited by guarantee incorporated in England and Wales. The registered office is Shepherds Dene Retreat House, Slaley Road, Riding Mill, Northumberland, NE44 6AF.
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” (“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 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. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Operation of retreat house
Support costs includes payments to the independent examiners of £4,170 (2024: £3,972) for the independent examination.
The average monthly number of employees during the year was:
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.
Freehold Property
Included in freehold property is freehold land of £830,806 (2024: £830,806), which has not been depreciated.
The freehold property represents freehold land and buildings. The property was donated to the charitable company on 17 May 2011 at fair market value and is shown at cost, plus any subsequent additions.
The property is Grade II listed and as a result is maintained in a good state of repair. Depreciation is charged on an annual basis to write the value of the property down to its estimated residual value in 100 years.
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.
Carpet Fund
The carpet fund relates to donations received to renew the carpets.
Keeping It Together
Grant funding of the 'Caring for Clergy' project to remote and foster the mental health and general wellbeing of Anglican clergy and lay leaders in the Sunderland area and beyond.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2024 - none).