The trustees 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 charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 charity's objects are to preserve, conserve and develop Knockando Woolmill, including its historic textile plant and machinery, and its immediate surroundings and watercourses as a historic rural working woolmill, to preserve the traditional rural craft skills used in a rural woolmill by providing training in those skills and by other appropriate means and specifically through:
Promoting the heritage and historic significance of the Woolmill;
Educating the general public about the heritage and historical significance of the Woolmill;
Renovating and improving the existing mill buildings, textile plant and machinery, land and watercourses so that they may continue to function as a working rural woolmill and historical landmark; and
The wholesale and retail sale of products manufactured at the Woolmill and items incorporating products manufactured at the Woolmill.
During the financial year the Woolmill continued to operate as an attraction to visitors who were able to learn about its heritage and historic significance.
The Trust continues to combine this operation as an attraction with the wholesale and retail sale of products manufactured at the Woolmill and items incorporating products manufactured at the Woolmill.
The Visitor Centre and coffee shop opened to the public for the summer season from Tuesday 13 May 2025 until the end of September that year and proved popular with visitors from near and far.
Throughout the financial year the Trust was supported by a supplementary grant from the Organisational Support Fund: 2024 of Historic Environment Scotland ('HES') for which the Trustees wish to record their sincere thanks.
During the financial year, the Trust continued to employ the two trainee weavers who had begun their training in June 2024. This was achieved only through continued substantial financial support received by the Trust from the William Grant Foundation, which has been a regular supporter of the Woolmill over a number of years and to whom the Trustees wish to extend their sincere thanks.
The major project involving the fabric of the historic mill building during the financial year was the project, instigated and managed by our Operations Director John Mulligan ably assisted by staff members Sarah-Jane Forbes and Emily Scott, to convert the existing water wheel into a modern hydro-electricity generator capable of supplying much of the Woolmill's energy requirement. This work was expensive and could not have been undertaken without the financial support of the Tam O' Shanter Trust, Berry Burn Community Fund and Highlands and Islands Enterprise for which the Trustees are extremely grateful. It is anticipated that the generator will begin producing green energy in the autumn of 2026.
Mr Graeme Stewart
In November 2025, Mr Graeme Stewart one of our founding Trustees retired as a Trustee. His friends and former colleagues on the Board of the Trust wish to record their sincere gratitude for everything that Mr Stewart did for the Trust over more than 15 years, especially during the restoration of the Woolmill. Mr Stewart was the last link with what he himself referred to as "the old days" at the Woolmill when his father Duncan Stewart had been the last traditional crofter and weaver to operate the Woolmill, occasionally with the assistance of young Graeme.
The Trust's principal sources of income during the financial year were supplemental grants from HES (£231,245), William Grant Foundation (£20,000) and Highlands and Islands Enterprise (£28,160). This means the total net figure for grants received in the financial year amounted to £336,285.
The Trustees are most grateful to all of its donors and volunteers without whose generous assistance the Trust would not be able to continue with all of its charitable activities.
During the year, the Trust's financial activities resulted in a net income of £8,968 including depreciation of £93,716 on assets owned by the Trust.
The Trust's debtors total £16,613 (FY2024/2025: £3,276) as detailed in note 14.
It is the policy of the charity that cash from donations which have been made for a specific purpose such as the purchase of an identified piece of plant and machinery should be retained as a cash reserve until a suitable purchase is identified and made.
The Trust's policy on other reserves is not to make a general reserve from the income of any financial year and only to make a specific reserve from income against an identified liability which the trustees consider is reasonably likely to occur. In the Trustees' judgement no such specific reserve was required in respect of its financial year 2025/2026.
The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
In May 2026, the Trustees adopted a strategic plan developed and promulgated by Mr Antony McCord, one of our Trustees. The plan has an overall time horizon of 10 to 15 years but has within it a number of shorter time phases. The Trustees are currently working with the staff of the Woolmill to identify specific tasks to be undertaken in implementing the plan.
In addition, during the financial year the trustees continued to work closely with HES to identify a sustainable financial plan for the 18 month period April 2026 to October 2027. This largely involved:
The development of an operational plan for that period, including a cashflow forecast.
Identifying sources of funding the new operational plan in addition to any funding to be considered by HES.
The Trust intends to achieve its business model by continuing to develop partnerships and to adopt a blended income model which balances the opportunities to generate earned income through retail and visitors, alongside a continued focus on fundraising.
The financial year 2026/2027 will continue to see a transition in the operations of the Woolmill as skills are developed and enhanced to reflect the new model across the organisation, including the board of trustees, as well as ensuring that the heritage assets are conserved.
The continuation of the charity as a going concern depends on continued support from HES, and donors.
The charity is a company limited by guarantee as defined by the Companies Act 2006 and is controlled by its governing document, namely its Memorandum and Articles of Association.
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 trustees have no formal procedure for identifying and recruiting additional and replacement trustees but rely on suitable candidates being identified and approached by existing trustees from time to time.
The trustees meet regularly as a board of directors of the Trust, normally once a quarter when the business of the Trust is considered and discussed. At these meetings the trustees receive operational reports from the Woolmill’s operations director and other staff.
The trustees, who are also the directors of Knockando Woolmill Trust 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 operation.
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, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 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.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 March 2026, which are set out on pages 5 to 15.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn 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.
Knockando Woolmill Trust is a private company limited by guarantee incorporated in Scotland. The registered office is The Woolmills, Knockando, Aberlour, Moray, AB38 7RP.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 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. 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.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not yet been met at the year end date are noted as a commitment but not accrued as expenditure.
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 land is not depreciated.
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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Consolidated financial statements
The financial statements present information about the charity as an individual undertaking and not about its group as the charity and its subsidiary undertaking comprise a small sized group.
Knockando Woolmill Trust aims to preserve, conserve and develop Knockando Woolmill, including its historic textile plant and machinery, and its immediate surroundings as a historic rural working woolmill.
During the year there were no donations received from trustees.(2025 - Nil).
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The key management personnel of the charity are the Administrator, the Marketing Manager and the Coffee Shop Manager.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 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.
Knockando Woolmill and the ground at Aberlour are secured by standard securities over the company' properties by Moray Council and The Scottish Ministers.
There are no disclosable related party transactions during the year.