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 charitable company's Memorandum and Articles of Association, 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 and activities of the charity are:
To provide care for the highly dependent, frail and elderly and those requiring long term or end of life care.
To relieve the aged and infirm, particularly, but not exclusively, those who are residents in the Borough of Wirral.
To maintain and conduct a residential nursing home and provide other health and social care services.
To conduct undertake and promote or encourage research into care and treatment of the aged and infirm and to provide for the dissemination of the results of such research.
To promote, encourage or assist in the teaching or training of doctors, nurses, physiotherapists, administrators and managers and other persons engaged in any branch of medicine.
To provide professional and personal care of the highest standard to all residents in its care.
To maintain the highest standard of care and make improvements where identified.
To monitor its service provision and endeavour to provide the highest level of care.
We monitor performance against a number of key performance indicators including :- occupancy levels , staff turnover and average fee per week.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
During the year, the charity provided support to at least 125 individuals and their families from the local community through its care and nursing services, including some residents who have been in its care since 2016. Occupancy levels remained consistently high, averaging 98% across the year, reflecting sustained demand for the charity’s services. Income generated from the provision of care and nursing services exceeded £6.3 million, an increase from £5.6 million in the previous year.
The charity’s services were delivered by approximately 158 employees, including seven administrative and management personnel. Due to the high level of need and increasing health complexities of service users, the charity maintained appropriate staffing levels throughout the year and had very low staff turnover. However, ongoing recruitment activity still has been undertaken to maintain service quality, bring in new skills, and manage natural turnover. Even with offering good working conditions and competitive pay rates, compared to similar homes in the area, challenges were felt in finding suitably qualified candidates due to local workforce shortages.
The Charity continued to offer the above Real Living Wage rates to all staff for their amazing efforts however any increases in pay rates remained restricted depending on the payments received from the public funding authorities for care provided to the service users. The increase of National Insurance rate and reduced eligibility threshold had a major effect on the Charity’s expenses resulting in an increased workforce tax for the year. Agency staffing costs reduced significantly, reflecting the charity’s continued efforts to improve workforce stability and ensure the quality and consistency of care for residents.
Despite the additional financial pressures, the Board continued to manage the Charity’s funds in a cautious manner, and prioritised keeping sufficient reserves to cope with emergencies at all times.
All major financial and ethical decisions have been taken by Trustees and have been fully minuted in the statutory books. Board meetings have been held every 6-7 weeks on the premises. The Trustees have been fully informed in writing and verbally of all aspects of the Charity’s operation by the Chief Executive.
There has also been continued stability within the senior management team and the Board, which has contributed to consistency of improvements in the quality of services provided.
A generator connection facility was installed to enhance the charity’s contingency planning in the event of a power failure, thereby supporting the continuity and resilience of service delivery.
During the year, the charity completed a programme of fire safety upgrades, which included improvements to loft compartmentation and the replacement of several fire exit doors. These works were undertaken to strengthen safety standards and ensure ongoing compliance with relevant fire safety regulations.
The charity took advantage of a newly implemented care management software which from 2025 offered additional AI-enabled functionality to further support regulatory compliance and enhance the quality and consistency of nursing documentation.
During the year, the charity transitioned its kitchen operations from in-house cooking to an external food delivery service provided by Apetito, supporting safety, consistency and efficiency in service users meal provision. As part of this change, voluntary redundancy was offered and accepted by two staff members, both of who used an opportunity to take earlier than initially planned retirement.
Also since August 2025 the charity partially outsourced its in-house laundry provision by introducing a contracted linen and towel service. This change has been well received and has supported improvements in service quality and consistency.
A new nurse call system was installed to enhance responsiveness and improve the overall quality of care within the service. It also contributes to resident safety, dignity, and independence by providing a tool to access trained staff help when needed. In addition, the system provides improved monitoring and record-keeping of call and response times, supporting service quality, accountability, and regulatory compliance in line with expectations of the Care Quality Commission.
Due to continuing emphasis on achieving good standard of cleanliness and hygiene to keep the Home as safe as possible by reducing risks of infections in our care environment, the Charity invested further in sluice equipment replacement and ongoing good quality personal protective equipment for the front line staff.
The Charity has completed Environmental sustainability audit and put a policy and carbon reduction action plan in place. The Management are prioritising environmentally friendly practices in daily operation, where reasonably possible, and apply higher criteria in selecting new contractors also when renewing services with existing partners, to ensure they are also conscious of sustainability and compliant operating in environmentally friendly ways.
With the public health service reducing eligibility criteria for funding any specialised equipment, the Charity continued to do its best in purchasing and providing necessary specialised care equipment and seating to the service users where possible to enable them to enjoy the most daily living activities and continue to stay mobile, safe and comfortable at all times. A highly skilled and experienced physiotherapist, employed by Elderholme, has been working to provide advice and support to our residents where required to ensure the best practices have been followed.
The Home organised several family events during the year, which were well attended and open to all relatives. Donations received at these events supported staff fundraising efforts for equipment to enhance activities for residents. Intergenerational activity days were also successfully held, enabling younger visitors to engage positively with residents through games, music, and shared activities. The Home has had a varied activities programme creating a stimulating atmosphere suitable to all ages, tastes and abilities including visiting entertainers at least every fortnight.
Health and safety and fire risks have been thoroughly reviewed by the Board and authorisation to proceed with a number of various improvements throughout the year has been given to the Management to always keep the staff and residents environment as safe as possible.
The trustees dedicated additional time to enable long-term planning for improvements to its buildings and facilities throughout the year, alongside ongoing discussions regarding the acquisition of additional land. The Board remains committed to exploring opportunities for expansion and enhancement of the current premises and the range of services offered.
The Trustees have assessed the major risks to which the Charity is exposed to and together with senior management review them on a regular basis. The following are the risks and uncertainties facing the Charity:
Shortfalls in funding from the local authorities to cover the real cost of nursing care which each year keeps falling behind reducing the Charity’s affordability to support those in need most in the best way possible
Delay in communication and receiving fees increases from the ICB restricting the charity to plan and provide right support for some more poorly residents in time
Long term impact of NI increase for employees
Sudden and miscalculated Migration law changes affecting our sponsored employees who are a significant part of our workforce
Significantly increasing living wage rates pushing up the overall staffing cost
Continuing inflation, causing sharp rise in contractors fees and purchasing supplies
Continuing high cost of utilities
Challenge to generate sufficient surplus to achieve all required improvements and enable investments the Charity desires for the benefit of the residents and staff
Increasing demand for more trainings to be provided to staff pushing up increase of costs and staff hours spent not with residents
Increased legal risks due to Employment law changes
Keeping up with always changing compliance requirements of the Care Quality Commission, the local authority and the NHS
Ability to recruit and retain suitable and competent local staff with sufficient knowledge, skills and experience
Competition with other care homes providing similar services
Climate change impacting on residents and staff health and wellbeing
The results for the year and the charity’s financial position at the end of the year are shown in the attached financial statements.
The charity registered the income for the year of £6,368,104 compared to £5,653,123 for the year to 31 March 2025. As a non-profit making charity fee levels are kept as low as possible commensurate with financial viability.
Reserves policy
The trustees have assessed that the level of general reserves required in the normal course of the charitable company's activity should be maintained at a level equivalent to between three and six months expenditure which represents approximately £1.6m - £3.1m. This is to meet the day-to-day requirements of providing the high level of care which the charitable company aims to give. On 31 March 2026 undesignated general reserves were £1,156,837 (2025: £1,139,330) which is below target level. However, the trustees do not see this as a significant concern due to the charity's strong cash position, positive operating cash flows and continuing profitability.
In order to accurately show the reserves tied up in fixed assets held by the charity, a designated tangible fixed asset fund has been be created. The fund, in addition to the revaluation reserve, reflects the net book value of the tangible fixed assets used operationally by the charity net of loans secured on them.
Risk policy
The Trustees have assessed the major risks to which the Charity is exposed and, together with senior management, review them regularly. These risks and uncertainties include:
Inadequate funding from local authorities to cover the real cost of nursing care
Long-term impact of National Insurance increase for full-time staff from 13.8% to 15%, and reduction in the threshold from £9,100 to £5,000, making the organisation liable for full NI tax on part-time staff
Significantly increased living wage rates, raising overall staffing costs
Continuing inflation, rising contractor fees, and high utility costs
Challenges in generating sufficient surplus to achieve required improvements and enable desired investments for the benefit of residents and staff
Keeping up with ever-changing compliance requirements from the Care Quality Commission, local authority, and NHS
Difficulty in recruiting and retaining suitable and competent staff with sufficient knowledge, skills, and experience
Competition from other care homes providing similar services
Future Plans
The Trustees are exploring opportunities to acquire additional land to support the Charity's future expansion. Consideration is also being given to enhancing the current building and optimising the use of existing freehold land to facilitate the development of additional facilities and parking capacity over the coming years.
The Charity will continue to work closely with the local health authorities to ensure that appropriate remuneration is received for care packages delivered. This is essential to maintaining the Charity's long-term financial sustainability and ensuring that adequate reserves are maintained to meet future contingencies.
The Trustees remain committed to the efficient management of resources while continuing to provide competitive remuneration packages for all employees. Further staff reward and recognition initiatives will be introduced to acknowledge long-serving employees and those with excellent attendance records, creating additional opportunities to enhance earnings and help address ongoing cost-of-living pressures.
The Charity will continue to invest in fire safety improvements where appropriate, with the objective of reducing risks and enhancing the safety and wellbeing of residents, staff, and visitors.
Implementation of the sustainability improvement policy and action plan will continue, providing a framework to support environmental compliance objectives and encouraging all staff and stakeholders at Elderholme to contribute towards achieving these goals.
The Charity also intends to further look into enhancing its data storage, accessibility, and information management systems, with the aim of achieving the Cyber Essentials Plus certification standard and strengthening its overall cybersecurity resilience.
Wirrelderly is a company, limited by guarantee, which was incorporated on 6th April 1987 (Company Number: 02120194) and a registered charity (Charity Number: 700121) and is governed by its Memorandum and Articles of Association. The charity operates under the name Elderholme Nursing Home.
The trustees, who are also the directors for the purpose of company law, who served during the year were:
None of the trustees has any beneficial interest in the charitable company.
New trustees are elected at a meeting of the board of trustees. It is the responsibility of the board to ensure that the appointment of trustees provides the full range of abilities and skills which are needed to ensure the effective governance of the charity.
A new Resolution was signed in March 2022 establishing a paid chairman’s position in the organisation, authorising remuneration in recognition of a high level of knowledge, skills and experience to lead the Board. From May 2022, Mr Lawson Stebbings has been appointed by the Board as a Chairman with a small reimbursement for his services.
All trustees are covered by the charity’s directors and officers insurance.
In accordance with the memorandum and articles the following retire by rotation and being eligible offer themselves for re-election:
Mr M Duckworth
Dr O Faluyi
Mr M Paddock
The board of trustees govern the policy of the charity. Except for the Chairman, who received remuneration in accordance with the charity's Articles of Association, trustees give of their time freely and no remuneration was paid in the year. The management of the charity is delegated to the Chief Executive Officer who is responsible to the board of trustees for all aspects of the operation of the charity. There is also in place a full operational management team of Matron/Manager, Human Resources Manager and the Financial Administrator to support the Chief Executive Officer. However, the ultimate responsibility for the quality and range of service provided is the responsibility of the trustees, who meet on a monthly basis.
The trustees have responsibility for setting the pay and remuneration of the charity’s key personnel and this is done on an annual basis, including a formal cost of living review. Salaries are benchmarked with other similar organisations across the sector.
In accordance with the company's articles, a resolution proposing that DSG Audit be reappointed as auditor of the company will be put at a General Meeting.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Wirrelderly 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 charitable company 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 charitable company 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Wirrelderly (the ‘charitable company’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards and Charity Law.
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the charity and therefore may have a material effect on the financial statements include compliance with the charitable objectives, public benefit, fundraising regulations, safeguarding, health and safety legislation, and the care sector regulatory framework (including the Health and Social Care Act 2008, CQC Fundamental Standards, data protection and equality requirements).
These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Wirrelderly is a private company limited by guarantee incorporated in England and Wales. The registered office is Elderholme, Clatterbridge Road, Bebington, Wirral, CH63 4JY. The principal activities of the charity are disclosed in the Trustees Report.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, 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 charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. 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 charitable company 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.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.
Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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.
Resources expended are accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. Expenditure is stated inclusive of VAT as the charitable company is not VAT registered.
Charitable expenditure comprises direct expenditure in the furtherance of the charitable company's objectives.
Governance costs are the costs associated with the governance arrangements of the charitable company which relate to the general running of the charitable company as opposed to those costs associated with fundraising or charitable activity. Included within this category are costs associated with the strategic as opposed to day-to-day management of the charitable company's activities, those incurred in the governance of its assets and are associated with constitutional and statutory requirements.
Support costs all relate to the charitable activity which is the provision of care for the highly dependent, frail and elderly of Wirral.
Tangible fixed assets are initially measured at cost 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 charitable company 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).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Kitchen and cleaning stock is stated at cost less impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charitable company 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 charitable company's balance sheet when the charitable company 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.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 charitable company’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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charitable company’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.
As permitted by the charity's Articles of Association, one of the trustees, Mr Lawson Stebbings, received remuneration of £17,040 (2025: £16,536) during the year for his role as Chair in recognition of his high level of knowledge, skills and experience to lead the Board.
No trustees were reimbursed for expenses (2025- nil) during the year.
The average monthly number of employees during the year was:
Termination payments totalling £8,101 were made during the year (2025: £11,500).
Employment costs include £361,556 (2025: £580,308) in respect of payments made to agency staff.
The remuneration of key management personnel is as follows.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Freehold land and buildings have been pledged to secure borrowings of the charitable company.
The property was valued on an open market basis by Fletcher Ramos & Co, Wirral, a firm of independent surveyors in 1995. Previously the company had taken advantage of the exemption in FRS 15 not to revalue the property . As permitted by FRS 102 the company will continue to adopt this policy with the revalued amount being treated as deemed historic cost on transition.
At 31 March 2026, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £2,228,529 (2025: £2,250,868). The £6,000 reduction in the revaluation reserve represents the difference between the annual depreciation charge on cost and the charge on the revalued amount of the land & buildings.
Included in land and buildings is land at cost of £68,589 (2025: £68,589) which is not depreciated.
The bank loans are secured by fixed charges over the premises, known as Elderholme, Clatterbridge Road, Bebington, Wirral.
The charity has three loan balances due to Barclays Bank Plc.
A long term loan balance of £213,970 (2025: £263,053) matures on 4/2/2030. Repayments on this loan are made on a quarterly basis. Interest on the loan is charged at a rate of 1.37% over base.
A loan facility of £300,000 to assist with the funding for the cost of refurbishments. At the period end a balance of £22,367 (2025: £65,302) was due on this loan. Interest on the loan is charged at 2.6% over base. Repayments are made on a monthly basis with the final repayment due by September 2026.
A Bounce Back Loan of £5,884 (2025: £15,883) received in October 2020. No repayment of capital was required during the first 12 months of the loan. Repayments will be made in 60 monthly instalments starting 13 months after the drawdown. Interest on the loan is to be charged at 2.5% per annum, fixed for the duration of the loan. During the first 12 months, the UK Government paid interest due under this loan.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
In order to accurately show the reserves tied up in fixed assets held by the charity, a designated tangible fixed asset fund has been created. The fund, in addition to the revaluation reserve, reflects the net book value of the tangible fixed assets used operationally by the charity net of loans secured on them.
There is a contingent liability of £300,000 in the event of a disposal of the property or its change of use.
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Related party transactions are disclosed in notes 9 and 10.
There were no other related party transactions in the year.