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, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 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 Trust was set up to achieve sustainable development for the benefit of the islanders. Our aims include increasing accessibility to recreational activities, providing education on the heritage and history of the island, promoting community development, and advancing environmental protection and preservation of buildings and sites of architectural and historic importance. The Trustees have paid due regard to the guidance issued by the Charities Commission in deciding what activities the Charity should undertake.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Re-opening of Cullipool quarry for small-scale Slate Extraction
In January 2025 we learned that our application to the Regeneration Capital Grant Fund for £1.8M had been successful and work to start slate production began in earnest. Slate production will create full-time jobs on the island, thereby increasing the number of younger people and sustainability of the island. It will also help protect Cullipool village from coastal erosion through use of slate waste to shore up the sea defences, a practice that was undertaken for many years when the historic quarries were open. Our Development Manager, Jane Robertson, joined us in September and has worked on the plans with a wide range of specialists including planning, architecture, geology, engineering and contracting. This work has been supported by Historic Environment Scotland, Highland and Islands Enterprise and Government funding for which we are very grateful. An invitation to tender for the quarry set up commenced in the autumn of 2025 through the Public Tender Process, with the Council-led assessment process taking about 6 weeks. The successful contractor, MAM contracting, was appointed in December 2025.
Carbon Neutral Islands
During 2025, the Trust built on the consultation and publication of the Carbon Neutral Islands Plan for Luing by securing further Carbon Neutral Island funding to deliver community priorities. This enabled progress on community composting, development of a resilience hub at the Atlantic Islands Centre, renewable energy for the community garden, and further consultation on island recycling, including glass. Community composting is now established and in use by residents and second-home owners, reducing waste and supporting local climate action. Funding was also secured for a renewable energy project at the Atlantic Islands Centre to be delivered in 2026. This will strengthen the Centre’s sustainability by reducing electricity costs and support its role as a community resilience hub by providing power for up to two days thus improving the island’s ability to provide a warm space with hot food for residents during prolonged power disruption.
Taste of Luing and Community Garden
Following securing funds for the Taste of Luing programme from Highlands and Islands Enterprise, Community Led Local Development Fund and the Central Scotland Green Network in 2024, work continued during 2025 to gain planning permission for the community garden and to establish the garden. Arran Footpaths were appointed to do the groundwork, pathways and site preparation, and the Luing Growers Group was established as a subcommittee of the Trust. The volunteers worked exceptionally hard throughout the year to get the garden ready for the 2026 growing season and by the end of the year the growing infrastructure and composting facilities were all completed creating a well-structured and attractive community growing space. The work had wide community involvement and helped strengthen community cohesion. When up and running, the locally grown garden produce will be used in the Atlantic Islands Centre, with surplus offered to the wider community. It will provide an attractive space for gardening together and become a visitor attraction.
Taste of Luing and the Atlantic Islands Centre
Taste of Luing funding was used to reconfigure the kitchen and café with the aim of improving workflow, efficiency and increasing the number of covers. New equipment included a larger cake fridge with better display and easier access, an under-counter freezer, an ice maker, and a new sandwich hotplate. Volunteers refurbished existing tables, additional tables were bought, and the seating was replaced with more comfortable chairs. Volunteers started work on a redecoration plan for part of the Centre and plan a complete refurbishment of the retail area in 2026. These changes increased our seating capacity by over one fifth, created a more efficient kitchen workspace and more attractive space for visitors to the Centre.
Events and Activities Atlantic Islands Centre
Regular bar nights, some with music including open mic nights and visiting performers, proved popular. A highlight was Junkmans Choir and the lunch time recitals by harpist Allie Robertson and the Spirito saxophone quartet. Talks included one on Scottish rainforest, another on the Scottish Islander boats, and a foraging workshop followed by a meal. Six Nations Rugby was screened live, a poet and comedian visited, and a presentation of book bindings was held. A major highlight was the Book Week Scotland event with Margaret Elphinstone reading extracts from her book Lost People, which combined relevant themes for Luing of friendships, hope and tending a garden. Leading up to the event, folk were invited to decorate a slate with their favourite book, and these were displayed in the community garden. In May the Board hosted a successful afternoon with the Duke and Duchess of Edinburgh, to which 30 key volunteers were invited. In June we celebrated the 10th anniversary of the Atlantic Islands Centre with a family afternoon of singing, games, treasure hunts and crafting along with a BBQ, real ice cream and strawberry tarts, and finishing up with an evening ceilidh with live music from Marram. Upstairs a photographic display of the Centres first 10 years was mounted, and a raffle raised over £450 for the barge board replacement. Crafting workshops resumed in the autumn and included embroidery, painting remembrance stones, and dried orange decorations. A Luing Community quilt is planned for 2026. The popular Christmas craft fair showcased island crafts and home baking and the games and activities raised funds for the barge board replacement. Community lunches resumed in the autumn with a new group of cafe volunteers helping out each week.
In October Joe Griffin, Permanent Secretary along with the Deputy Director of Land Reform and the Chief Executive of Argyll and Bute Council met with the Board. At the meeting we discussed the plans for re-opening the quarry and the additional benefit of bolstering coastal defences to protect Cullipool village. The delegation visited the quarry and the community garden under development, and our Homes for Luing work was discussed. The meeting highlighted the collaboration between the community, Luing Community Council, Argyll and Bute Council, Historic Environment and Highlands and Islands Enterprise.
Finances - Atlantic Islands Centre
The Café Team did a great job under the direction of Centre manager Becks Weatherley. We are very grateful to the Isle of Luing Home Bakers who supplied over £11,500 of cakes and bakes, £6,000 of savoury tarts and savoury scones which, after expenses, contributed to nearly £12,000 of profit. Sales of island crafters’ merchandise were strong, achieving £8,500 generating £2,500 in commission for the Centre and book sales were £4,000 generating £1,400 profit.
We are indebted to all the volunteers who have helped keep the Centre running in many ways from weekly fire checks, cleaning, laundry, organising events, helping out in the kitchen and cafe, undertaking maintenance, decoration, baking, deep cleaning the bathrooms and leading craft workshops.
Café sales started well in the first half of 2025, but poor weather contributed to flat sales in Q3 and Q4, and despite our Centre refresh sales for the year fell short of those needed to achieve sufficient profit to pay our VAT bill for the year. However, we were able to offset some of the VAT with the capital equipment investment made during the refurbishing of
the café which meant that the net trading loss for the year was reduced to just over £6,000. This loss reduced our trading account reserve to £27,000. We envisage that the installation of solar power and battery will substantially reduce our electricity costs. Work is also underway to review our product margins to reflect the ever-increasing cost of goods, and we plan to refurbish the retail area to maximise sales. Finally, the Community garden will supply fresh produce to our Café during 2026, which will help our profit margins. In 2026 we estimate that we need to increase our sales by 10-15% to achieve a breakeven on cafe operations.
Operational costs for the Atlantic Islands Centre
Operational costs for the Atlantic Islands Centre remained challenging especially given the high fixed costs for general maintenance and repairs which are over £19,000 annually and include rates, water, various licences, broadband, machine servicing, accountancy fees among other costs. Variable expenses for the year were £69,000 with wages being the largest, but also VAT, bank charges, credit card fees, electricity and gas. All our staff are paid the real living wage as a minimum. We need to build our sales to over £130,000 in 2026 to break even. With the produce from the community garden, solar power and battery, a close eye on all costs, along with the quarry development we believe we can deliver a better outcome in 2026.
Housing
The Homes for Luing campaign, which is jointly led by the Trust and Community Council, continued to raise awareness of the lack of affordable housing and the need for houses to be made available for long term rent. Luing’s Place Plan explored creating housing at Fladda and South Cuan and a start has been made with plans to add two family houses at Fladda. Progress has been challenging in 2025 with an unsuccessful application for feasibility funding for housing at Fladda. The Homes for Luing campaign targeted two other potential sources of housing for new island residents, empty or under-used houses and building plots for self-build houses. There has been some success previously with an empty cottage now rented to an island worker, and a larger property offered for long-term rent. In 2025, a seasonal worker found lodgings in a home and an empty family home was offered for rental for a future quarry worker family. The Trust continued to engage with Argyll and Bute Council and supported discussions between homeowners and the Homes for Luing group.
Luing History Group
2025 started with a Show and Tell evening on the theme of Childhood treasures which then became a display in the Centre. The AGM was held in March combined with illustrated talks about ‘Living at Bardrishaig’ by people who had lived there. In April a guided visit was organised for a group of Friends of Argyll Archives, and in June some of the Committee visited the archeological excavations at Glencoe, which featured in Digging for Britain. Also, in June an evening on ‘Plants of the Past’ was organised and the information and images were used for a new display in the Centre. To celebrate the 25th anniversary of Luing History Group an evening was organised to share memories of History group events over a potluck supper. Ongoing activities have included topping up merchandise (cards, prints and bags) putting more order into the archives, researching Kilchattan church and graffiti following the photogrammetry surgery, and working on a new edition of Ancient Luing which will be published in 2026.
First Responders
First Responders formally transferred their funds to the Trust to manage in 2025. First Responders will continue to manage the maintenance of the defribrillators.
Luing Play Park
Other than some outlay for fuel there was nothing to report.
Donated facilities and services
We are indebted to all the generous volunteer work undertaken for the Atlantic Islands Centre, the History Group, the Play Park and the Community Garden.
The Trust received grants totaling £165,500 over 2025 of which £141,000 was spent by the end of the year. The main funding sources were Highlands and Islands Enterprise (£6,188), Historic Environment Scotland (£48,651), Community Led Development, Argyll & Bute Council (£37,813), Community Energy Scotland (£10,987), Green Action Trust (£5,620), Scottish Book Week (£700) and Scottish Community Fund (£510). The funding was used for establishing the Community Garden and refurbishing the Atlantic Islands Centre (£78,729), progressing the re-opening of the small-scale Slate Quarry (£54,872) and the Carbon Neutral Islands project (£7,131).
We plan to move from flat rate VAT to Standard VAT calculations from 1st January 2026 as we progress the Slate Quarry Project. All the funding for the startup of the quarry project will go through the Trust accounts (a funder requirement), and the Trust will be accountable for how the funding is spent getting the quarry ready for operations. We will then lease the quarry to the Isle of Luing Trading company, currently dormant, for a small rent, and it will be responsible for production and sales hopefully later in 2027. Most of our Quarry funding excludes VAT as this can be reclaimed from HMRC as it is being used to set up a new VAT paying enterprise. This means we will need to fund the VAT element of build costs for the time between settling invoices and obtaining refunds from HMRC.
The Atlantic Islands Centre barge boards urgently needed replacement and in 2025 we raised over £6K through fundraising activities including raffles, a clothes swap, crafts sales, and donations. The replacement work is due to start in early 2026. The guttering and downpipes are now also needing replacing and fundraising for this will continue in 2026.
Reserves Policy
The Trust’s Reserves policy is that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months expenditure. The Trustees consider that, in the event of a significant drop in funding, the Charity will be able to continue current activities whilst consideration is given to ways in
which additional funding may be raised. This level of reserves has been maintained throughout the year.
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by companies Act 2006.
The Trustees are responsible for the strategic direction and governance of the Trust. They meet regularly throughout the year to oversee the organisation’s activities, monitor financial performance, manage risks, and ensure that the Trust continues to pursue its charitable objectives for the benefit of the Isle of Luing Community.
The Trust is a charitable company limited by guarantee and is governed by its Articles of Association. Trustees are elected by the membership and are responsible for ensuring that the Trust operates in accordance with charity and company law, regulatory requirements and good governance practice.
The Board is supported by staff, volunteers, and several sub-groups and community initiatives. During 2025, the Trust’s activities included progressing the re-opening of Cullipool slate quarry, developing the Community Garden, delivering Carbon Neutral Islands projects, supporting housing initiatives, operating the Atlantic Islands Centre and supporting a range of community activities and events.
The Trustees would like to record their appreciation of the staff, volunteers, community groups, funders and supporters whose commitment and contributions have enabled the Trust to deliver a wide range of services and projects during the year.
The trustees who are also the directors for the purpose of company law, who served during the year and up to the date of signature of the financial statements were:
None of the trustees has 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.
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Isle of Luing Community Trust (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 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and section 145 of the Charities Act 2011. In carrying out my examination I have followed the requirements of Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 and the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the Charity has prepared its financial statements on an accruals basis and is also registered in Scotland, or the Charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in Regulation 11(2) of the Charities Accounts (Scotland) Regulations 2006 and section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAS, 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 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005, Regulation 4 of the Charities Accounts (Scotland) Regulations 2006 and 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 Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 and 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Isle of Luing Community Trust is a private company limited by guarantee incorporated in Scotland. The registered office is ATLANTIC ISLANDS CENTRE CULLIPOOL, Cullipool, Isle of Luing, By Oban, Argyll, PA344UB, United Kingdom.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 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 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 freehold properties and to include investment properties and certain financial instruments 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:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each 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.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 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).