REGISTERED COMPANY NUMBER: SC252971 (Scotland)

REGISTERED CHARITY NUMBER: SC034641

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 March 2026

for

The Haven Kilmacolm

Page

Report of the Trustees

1

Report of the Independent Auditors

6

Statement of Financial Activities

10

Balance Sheet

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2026. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity as set out in its governing documents are as follows:

- To provide support, assistance, advice or counselling to individuals who have, or have had, a drug and/or alcohol problem, with a view to enabling that individual to occupy a residential accommodation as a sole or main residence;

- To enable individuals who have, or have had, a drug and/or alcohol problem, to live a drug free, healthy and socially rewarding lifestyle in accordance with Christian principles;

-To alleviate the suffering and distress and advance the education of individuals in accordance with Christian principles within the United Kingdom of Great Britain and Northern Ireland who have, or have had, a drug and/or alcohol problem;

- To promote the prevention of drug and/or alcohol related problems among the inhabitants of the United Kingdom of Great Britain and Northern Ireland, particularly young people therein; and

- To offer a community response to problems of drug and/or alcohol abuse by providing support, assistance, advice or counselling to persons who have such problems.

Significant activities

The Haven Kilmacolm is a supported accommodation facility for 24 males, situated in the hills between Greenock and Kilmacolm, which has been in existence for over 30 years. Its purpose is to help them break addictions to alcohol, drugs, and tobacco, without the use of other addictive drugs such as methadone, and an introduction to the Christian faith. The men come from many parts of the UK, having been self-referred or referred by a church, doctor, the judicial system, or other charities with whom the Haven works very closely, such as Glasgow City Mission and Street Connect.

In addition to undertaking a helpful programme of Christian teaching, the residents also receive instruction in life skills such as personal care, shopping, computer skills, money management, cooking, and household duties. They are introduced, often for the first time, to the ethic of work and are given various opportunities to engage in work experience and to receive training.

The programme is in four stages covering 12 months, after which residents have the opportunity to stay in our recovery flats throughout the local community. These provide bridges back into the community, and the level of support is varied according to need. Residents move into the self-contained building Shalom at phase 3, This provides an opportunity for a degree of independent living and access to support from the Haven.

The service is registered with Care Inspectorate and come under their governance, and funding is received from a number of statutory agencies, trusts, churches, businesses, and individual donors - whose support is very much appreciated.

During the year, Haven concluded the absorption of the assets and activities of Teen Challenge Strathclyde (TCS). The Haven was born out of TCS to provide a residential rehab facility whilst TCS operated initially out of buses then from local hubs with a later move into schools. Haven has fully taken on board these activities allowing development of our common aims by extending the preventative and educational work through the schools and hubs. A family support worker operates at all stages of the program and Haven is also putting more emphasis on aftercare.

Public benefit

The charity meets the definition of a public benefit entity under FRS 102.

Grantmaking

The trustees are able to make grant disbursements to worthy individuals and institutions provided that their aims are in keeping with the aims and objectives of the Haven. Grants awarded in the year are disclosed in the notes to the financial statements.

Volunteers

The Haven Kilmacolm is dependent on volunteers in conjunction with our committed team of full and part-time staff. Volunteers are involved in working with the young men, in teaching, driving, assisting staff, cooking, administration, fundraising, event organising, and practical support.

STRATEGIC REPORT

Achievements and performance

Charitable activities

We are a Christian faith-based organisation and work with the vulnerable and often marginalized men in order to give them an opportunity to have a more positive future. We believe that every individual has value and worth and has the capacity to turn their life around with the right support.

By providing a holistic, needs-led support that is tailored to the individual, we provide help and support to ensure that each of our residents have the tools needed to overcome their addiction and its related issues, so they can fulfil their potential and live positive futures.

We believe that there is a spiritual element to recovery which must be addressed as well as the physical, psychological and social needs of each individual.

The charity continues to develop links with other agencies to facilitate a more positive move on by our residents including Mattersey Hall, Street Connect, Glasgow City Mission, The Arch Glasgow, Your Voice and 20 Schemes, as well as employment opportunities with local businesses.

The Trustees are satisfied with the occupancy levels experienced throughout the year and of the continuing need for the charity and the facilities it can provide.

Financial review

Financial position

Incoming resources for the year have again shown an increase this year, amounting to £1,484,845 (2025 - £892,007), principally down to grants received of £302,400 (2025 - Nil) in support of the extension being built at the Haven together with a donation in kind amounting to £177,625 from Teen Challenge Scotland, which comprised of the assets of that organisation (predominantly property) on its dissolution less mortgage finance on one of the properties transferred.

This has been accompanied by an increase in total resources expended to £925,591 (2025 - £718,862).

Overall, these movements have produced net income for the year of £559,254, an increase of £386,109 on the prior year's net income of £173,145. The net assets have increased accordingly to £1,198,213 (2025 - £638,959), all of which are unrestricted (although the grants received in the Redevelopment fund are earmarked for the extension project). The trustees consider this to be sufficient resources to enable the charity to continue operations going forward.

Principal funding sources

The principal funding source of the company is Housing Benefit awarded by local authorities. The Board have continued to develop a range of other funding sources including from individual donors churches and trusts, and through fund-raising events. The year under review saw the charity appoint a professional fundraiser which the trustees consider has been a great success. In addition, the commitment and hard work of many staff and volunteers is gratefully acknowledged, and as a result the continuation and expansion of the project are contemplated.

Investment policy and objectives

Whilst the Memorandum and Articles of Association confers certain investment powers on the Board (provided such investments are in keeping with the main objectives of the charity), the charity holds no such assets.

Reserves policy

The reserves accounts on the Balance Sheet represents accumulated funds arising from operating results to date, in relation to the general fund and those specific funds identified. The directors have sought to maintain a sufficient level of resources (designated as equivalent to three months operational costs) within the company to enable operating activities to be maintained, taking account of potential risks and contingencies - they consider the current level of reserves to be satisfactory.

Going concern

As stated in the accounting policies, the financial statements have been prepared on the going concern basis. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.

Strategic Report

The company is classed as a small company under the Companies Act 2006 thresholds and so is exempt from the requirement to prepare a separate strategic report.

Principal risks and uncertainties

The Trustees consider the main risks to include the security and uncertainty of Government/Local Authority financing and pressure of present inflation/recession. These will be managed through the ongoing building of relationships with these agencies and local companies; extending the range of awareness we raise; by communicating our needs to those people/companies/churches who support us; and keeping an eye on budgets and spending on a monthly basis and adjusting expenditure accordingly.

Future plans

Future plans involve the ongoing development of the service we provide through the increased networking with other services including local authorities, Alcohol & Drug Partnerships and SPS. Work has commenced on an extension to facilitate an extra 8 beds. This will bring our total capacity to 32. The Scottish Government's drug mission and policy is to give more people access to abstinence-based rehabilitation and are providing majority funding for the current extension.

Our present facility only accommodates male residents and Haven are now actively pursuing the provision of a similar but separate facility for females.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Haven Kilmacolm is a charitable company limited by guarantee, incorporated on 18 July 2003 and allocated charity number SC034641. The company was formed under a Memorandum of Association which established its objects and powers and is governed under its Articles of Association.

The Board of Trustees control and supervise the activities of the charitable company and meet regularly to develop strategies and set policies regarding the operation of the company and funds. The Board also receive operational reports at such meetings from the relevant members of the management team, to appraise them of progress, developments and any issues which may have arisen for resolution.

Recruitment and appointment of new trustees/directors

The company appoints directors when appropriate and the current board has the powers to do so. The maximum and minimum number respectively of the directors may be determined from time to time by ordinary resolution. Subject to and in default of any such determination there shall be no maximum number of directors and whilst the Articles of Association specify that the minimum number of directors shall be two, the board considers that there needs to be a minimum of three. The policy of the company is for the induction and training of new trustees to be tailored to suit the knowledge and experience of the appointee.

Organisational structure

The Board of Trustees are responsible for the development of policy and strategy of the company. The day to day running of the company is in the hands of a management team.

Induction and training of new trustees

The policies of the company for the induction and training of new trustees are tailored to suit the knowledge and experience of the appointee.

Key management remuneration

Key management personnel comprise the management team in charge of the day to day running of the charity. Trustees are not remunerated for their work as trustees. Remuneration of all employees is reviewed regularly and any changes are discussed and agreed by the Board.

Related parties

Prior to its dissolution, the company had a close working relationship with Teen Challenge Strathclyde, an incorporated registered charity with charity number SC022209 and company number SC148251. No parent or subsidiary relationship (either formal or informal) exists between the charities, the connection being one common director. The year under review saw a merger between both charitable entities, which have similar aims and objectives.

Risk management

Due to the nature of the work performed by the company, the Board of Trustees regularly examine the major risks to the company, identifying possible risks and reviewing the systems and procedures in place to mitigate them.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC252971 (Scotland)

Registered Charity number

SC034641

Registered office

The Haven

Horsecraigs

Kilmacolm

PA13 4TH

Trustees

D M Black (resigned 11.12.25)

J B Gault

C Maasz

M O I Lees

A Lunn

J McAddock

P R Dick

D T Harper (appointed 11.12.25)

D Melvin (appointed 20.2.26)

Auditors

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

Bankers

Virgin Money

1 Causeyside Street

Paisley

PA1 1UW

Solicitors

Balfour & Manson LLP

54 - 66 Frederick Street

Edinburgh

EH2 1LS

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Haven Kilmacolm for the purposes of company law) are responsible for preparing the Report of the Trustees 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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 period. In preparing those 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Auditors

The Statutory Auditor, Alun Johnstone B.Acc CA of Gillespie & Anderson, Statutory Auditors, Chartered Accountants, 147 Bath Street, Glasgow, has expressed a willingness to continue in office.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 22 October 2026 and signed on the board's behalf by:

P R Dick - Trustee

Opinion

We have audited the financial statements of The Haven Kilmacolm (the 'charitable company') for the year ended 31 March 2026 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2026 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

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 Auditors' 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.

Conclusions relating to going concern

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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-	adequate and proper 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.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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 responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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:

The engagement partner ensures that the engagement team collectively have the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We enquire of management and review supporting documentation concerning the charity's policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and their awareness of any instances of non-compliance;

- detecting and responding to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- reviewing the internal controls established by management to mitigate risks related to unusual items, fraud or non-compliance with laws and regulations.

We obtain an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that have a direct effect on the financial statements or that have a fundamental effect on the operations of the charity. The key laws and regulations we consider in this context include the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006, Companies Act 2006 and the applicable Statement of Recommended Practice (SORP) together with health and safety regulations, employment legislation and data protection legislation.

Our engagement team considers how and where irregularities might occur in the financial statements and any potential indicators of fraud. They subsequently identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

We communicate those relevant identified laws and regulations and potential irregularity risks to all members of the engagement team and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

We review all minutes of all meetings of those charged with governance of the entity, along with all relevant reports and correspondence with HMRC and legal advisers.

We perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

We evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Whilst doing so, we agree the financial statement disclosures to underlying documents.

We assess whether the financial statements represent the underlying transactions, events and position of the entity in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates is indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence.

Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' 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.

Alun Johnstone B.Acc CA - member of ICAS (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

147 Bath Street

Glasgow

G2 4SN

26 October 2026

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,476,797

-

1,476,797

880,916

Investment income

3

6,171

-

6,171

4,337

Other income

1,877

-

1,877

6,754

Total

1,484,845

-

1,484,845

892,007

EXPENDITURE ON

Raising funds

4

19,889

-

19,889

6,109

Charitable activities

5

Charitable activities

905,702

-

905,702

712,753

Total

925,591

-

925,591

718,862

NET INCOME

559,254

-

559,254

173,145

RECONCILIATION OF FUNDS

Total funds brought forward

638,959

-

638,959

465,814

TOTAL FUNDS CARRIED FORWARD

1,198,213

-

1,198,213

638,959

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

755,087

-

755,087

185,686

CURRENT ASSETS

Debtors

13

186,375

-

186,375

259,768

Cash at bank and in hand

509,977

-

509,977

230,779

696,352

-

696,352

490,547

CREDITORS

Amounts falling due within one year

14

(187,174

)

-

(187,174

)

(37,274

)

NET CURRENT ASSETS

509,178

-

509,178

453,273

TOTAL ASSETS LESS CURRENT LIABILITIES

1,264,265

-

1,264,265

638,959

CREDITORS

Amounts falling due after more than one year

(66,052

)

-

(66,052

)

-

NET ASSETS

1,198,213

-

1,198,213

638,959

FUNDS

18

Unrestricted funds

1,198,213

638,959

TOTAL FUNDS

1,198,213

638,959

The financial statements were approved by the Board of Trustees and authorised for issue on 22 October 2026 and were signed on its behalf by:

P R Dick - Trustee

Cash flows from operating activities

Cash generated from operations

1

801,884

160,487

Interest paid

(2,408

)

-

Net cash provided by operating activities

799,476

160,487

Cash flows from investing activities

Purchase of tangible fixed assets

(617,022

)

(146,115

)

Sale of tangible fixed assets

7,580

-

Interest received

6,171

4,337

Net cash used in investing activities

(603,271

)

(141,778

)

Cash flows from financing activities

New loans in year

93,231

-

Loan repayments in year

(10,238

)

-

Net cash provided by financing activities

82,993

-

Change in cash and cash equivalents in the reporting period

279,198

18,709

Cash and cash equivalents at the beginning of the reporting period

230,779

212,070

Cash and cash equivalents at the end of the reporting period

509,977

230,779

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2026

2025

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

559,254

173,145

Adjustments for:

Depreciation charges

35,509

18,041

Loss on disposal of fixed assets

4,532

-

Interest received

(6,171

)

(4,337

)

Interest paid

2,408

-

Decrease/(increase) in debtors

73,393

(35,456

)

Increase in creditors

132,959

9,094

Net cash provided by operations

801,884

160,487

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

230,779

279,198

509,977

230,779

279,198

509,977

Debt

Debts falling due within 1 year

-

(16,941

)

(16,941

)

Debts falling due after 1 year

-

(66,052

)

(66,052

)

-

(82,993

)

(82,993

)

Total

230,779

196,205

426,984

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The Haven Kilmacolm is a charitable company, limited by guarantee, registered in Scotland and operating from the principal address as stated in the Trustees Report. The financial statements relate to the charity as an individual entity, with the presentational currency stated as the Pound Sterling (£).

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006, and under the historical cost convention.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The charity has a strong balance sheet with sufficient reserves and projected income flows to meet its liabilities as and when they fall due. After reviewing the charity's forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future - they therefore continue to adopt the going concern basis in preparing these financial statements.

Critical accounting judgements and key sources of estimation uncertainty

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 a historical experience and other factors that are considered to be relevant. Actual results may differ from estimated.

The estimated 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 significant items in the financial statements where these judgements are required (and the factors in play) include debtors (likelihood of recovery), fixed assets (depreciation rates & useful lives), and the going concern basis of accounting.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The following specific policies are applied to particular categories of income:

- Donations and legacies are received by way of grants, donations, gifts and are included in full in the Statement of Financial Activities when receivable;

- Tax recoverable on Gift Aid donations is accounted for on the accruals basis, as is rental income, local authority funding, residents' administration fees and feed-in tariff rebates;

- Grants where entitlement is not conditional on the delivery of a specific performance by the charity (including local authority funding) are recognised when the charity becomes unconditionally entitled to the grant; where entitlement is conditional on delivery of specific performance, recognition is made on completion of those performance conditions;

- Income from fundraising is recognised on the accruals basis, on the date when the event is held;

Gifts in kind and the value of services provided by volunteers are not reflected in the financial statements.

Government grants are recognised when the company has complied with the attaching conditions and there is reasonable assurance that the grants will be received. They are measured at fair value. Grants relating to revenue are recognised in income on a systematic basis over the period or periods in which the entity recognises the related costs for which the grant is intended to compensate.

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Investment income relates to bank interest received and is included when receivable and the amount can be measured reliably.

Expenditure

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.

The following matters are also relevant

- VAT is reported as part of the expenditure to which it relates.

- Fundraising trading comprises of expenditure paid to professional fundraisers.

- Charitable activities comprise all resources expended undertaking work to meet the charity's objectives.

- Governance costs include resources expended in the general running of the charity and are primarily associated with constitutional and statutory requirements.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Support costs

Support costs are allocated wholly to charitable activities. While the Trustees recognise that a small part of some items of expenditure may relate to indirect governance costs, they are of the opinion that time and costs involved in performing such analysis outweigh the potential benefits arising from any such work.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

10% on cost and 2% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Factors such as a change in how an asset is used, significant unexpected wear and tear, technological advancement, and changes in market prices may indicate that the residual value or useful life of an asset has changed since the most recent annual reporting date.

If such indicators are present, the company will review its previous estimates and, if current expectations differ, amend the residual value, depreciation method or useful life, accounting for such revisions as a change in an accounting estimate in accordance with FRS 102. The company's capitalisation policy is to ignore all expenditure less than £1,000.

Taxation

As the company has charitable status no provision for corporation tax is required.

Fund accounting

The company has one General unrestricted fund and no restricted funds.

Unrestricted funds can be used in accordance with the charitable objectives of the company at the discretion of the directors. Restricted funds are still within the objects of the charity but can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The objectives and purposes for these individual funds are disclosed elsewhere in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Employee benefits

The total cost of employee benefits to which employees have become entitled as a result of service rendered to the charity during the reporting period are recognised and charged to the statement of financial activities in the period to which they relate.

Financial instruments

The charity has no complex financial instruments but does hold basic financial instruments of cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft is shown within current liabilities.

Debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effective of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

Provision for liabilities

A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

Volunteers

In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements due to inaccurate measurement bases.

2.	DONATIONS AND LEGACIES

2026

2025

£

£

Donations

446,106

212,459

Tax on gift aid

6,043

7,406

Local authority funding

494,910

498,726

Grants

339,798

55,461

Outreach donations

51,915

-

Rents received

102,849

106,864

Wages contribution

35,176

-

1,476,797

880,916

Grants received, included in the above, are as follows:

2026

2025

£

£

Inverclyde Council social care payments

37,398

55,461

The Scottish Government

114,000

-

The Fyrish Foundation

168,400

-

The Newark Trust

20,000

-

339,798

55,461

3.	INVESTMENT INCOME

2026

2025

£

£

Deposit account interest

6,171

4,337

4.	RAISING FUNDS

Raising donations and legacies

2026

2025

£

£

Fundraising cost of sales

19,889

6,109

5.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

(see note

costs (see

6)

note 7)

Totals

£

£

£

Charitable activities

3,007

902,695

905,702

6.	GRANTS PAYABLE

2026

2025

£

£

Charitable activities

3,007

236

7.	SUPPORT COSTS

Governance

Management

costs

Totals

£

£

£

Charitable activities

893,310

9,385

902,695

Support costs, included in the above, are as follows:

Management

2026

2025

Charitable

Total

activities

activities

£

£

Wages

474,542

399,672

Social security

46,252

29,575

Pensions

9,573

8,157

Telephone

3,390

3,376

Postage and stationery

5,274

4,899

Outreach costs

22,283

-

Sundries

25,975

25,465

Computer expenses

6,506

3,993

Motor & travel

28,448

14,401

Training

6,951

8,906

Professional fees

28,546

6,844

Rent

42,225

54,655

Groceries

49,033

38,563

Premises expenses

91,015

81,284

Bank charges

1,391

1,046

Teaching costs

9,457

8,761

Depreciation of tangible and heritage assets

35,509

18,041

Gain/loss on sale of tangible fixed asset

4,532

-

Mortgage

2,408

-

893,310

707,638

Governance costs

2026

2025

Charitable

Total

activities

activities

£

£

Auditors' remuneration

5,400

4,320

Auditors' remuneration for non audit work

1,735

559

Accountancy fees

2,250

-

9,385

4,879