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 governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objectives for the company are the relief, care and assistance of persons, irrespective of colour, race or creed, suffering from any form of sickness or incapacity and the advancement of education provision of facilities in the interests of social welfare for recreation and leisure time occupation for the benefit of the community in the Newport (Shropshire) District and surrounding neighbourhood.
The company’s principal activity is that of non-residential care and maintaining property and working in association with the League of Friends.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The public benefits from the activities of the trust due to its focus on health and well-being of the inhabitants of Newport and surrounding areas. Although its activities are limited geographically, the trust does not discriminate on the ground of personal background, faith, gender, age or personal circumstances.
The daycare centre is open Monday to Friday, providing care for its clients living with dementia on a Tuesday and Thursday. The company has reviewed its capacity for providing daycare and continues to provide care at what is currently seen as the maximum the care centre can accommodate. There is usually a waiting list of potential clients whenever a vacancy occurs.
The trustees continue to look for ways in which the service to the clients can improve, particularly in respect of clients living with dementia.
The trustees continue to be grateful for the support of the League of Friends.
The trustees are of the opinion that the company remains financially stable and has retained adequate cash resources throughout the year under review.
In 2026, the company generated total income of £598,801 (2025: £669,844). Operating, management and administrative expenses of £552,671 (2025: £572,252) resulted in a net profit in funds of £46,130 (2025: £97,592 net profit).
It is the policy of the trust to maintain, unrestricted funds, at a level which equates to approximately three months unrestricted expenditure. In addition, the trustee believe it prudent to retain additional reserves to allow for contingencies. This provides sufficient funds to cover management, administration and support costs. Unrestricted funds were maintained at an acceptable level throughout the year.
As at 31 March 2026, the charity’s level of free reserves stands at £239,552 (2025: £214,671). Free reserves are calculated as total unrestricted funds, excluding designated funds, and any unrestricted funds tied up in tangible fixed assets.
Total funds held £839,473
Restricted funds £(371,259)
Designated funds £(9,680)
Tangible fixed assets £(218,982)
Free reserves £239,552
The trustees have reviewed the major risks to which the charity is exposed, and systems of procedures and controls are in place to mitigate those risks, and appropriate insurance has been taken out. In line with best practice, these policies will be reviewed on an annual basis.
After taking advice from professional building consultants, the trustees are aware of the need to replace the roof of the building which is in excess of 90 years old. At the same time, the trustees have plans for a new reception area which will enable better support to be offered to our NHS colleagues by offering a waiting area for their patients.
These developments need a substantial capital fundraising campaign, whilst ensuring the charity remains financially sustainable beyond the completion of the building project. The trustees are, therefore, intending to consider increasing its fundraising capacity through investment in dedicated income support, together with the development of a culture of stewardship, ensuring all funders and donors receive timely communication and recognition.
The charity is registered as a company limited by guarantee under number 02500924 and as a charity under number 01001348.
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:
Trustees are recruited from the local area, are appointed by the existing trustees and are inducted into the role by the chairman. Training is provided where necessary.
Since the end of the financial year, Mr Liam Stafford was appointed a Trustee on the 24 April 2026.
The following have been Trustees of the Trust for over 9 years: Mr K Norton (18 years), Mr N Tindall (33 years), Mr R Laidler (13 years), Mrs B Gough (10 years) and Mrs M Brotherton (26 years).
In accordance with the new Articles of Association which were adopted at the special meeting held on 29 June 2026, article 19.19.4 indicates that all trustees at the time of the adoption of the new articles, will be deemed to be appointed for a term of five years from and including the date of the adoption of the new articles, however the new Articles of Association have not yet received formal approval from the Charities Commission and therefore Mrs Margo Brotherton and Mr Keith Norton will retire by rotation in accordance with the company’s current Articles of Association and it is proposed that they be re-elected.
The company is limited by guarantee, and the trustees will contribute an amount not exceeding £5 in the event of the company being wound up.
The day to day management of the company is undertaken by the business manager who is supported by the trustees.
The trustees meet formally on a regular basis to review the affairs and financial performance of the company.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Newport (Shropshire) Cottage Care Centre Trust Limited (the charity) for the year ended 31 March 2026.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants (ACCA) - UK, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Newport (Shropshire) Cottage Care Centre Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Cottage Care Centre, Upper Bar, Newport, Shropshire, TF10 7EH.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
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.
In line with future plans, the Trust has carried out capital expenditure on preliminary building work. An amount of £3,180 spent in the prior financial year and so has been restated from Consultancy fees to Property additions to better reflect the nature of the transaction.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
In line with future plans, the Trust has carried out capital expenditure on preliminary building work. An amount of £3,180 spent in the prior financial year and so has been restated from Consultancy fees to Property additions to better reflect the nature of the transaction.
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.
Land and Buildings
This fund represents the monies received for the purchase of Land and Building. This is reduced annually by the depreciation charge allocated to the assets.
Wasting Assets
This fund represents the monies received to purchased assets which could include Fixtures and Fittings, Office Equipment and Motor Vehicles. This is reduced annually by the depreciation charge allocated to the assets.
Repair Fund
This fund represents the monies received to for the ongoing repair needs to the buildings and surrounding land know as Newport (Shropshire) Cottage Care Centre Trust Limited.
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.
Activity Fund
This fund represents the monies received to provide entertainment, activity or specific equipment/purchases for the user of Newport (Shropshire) Cottage Care Centre Trust Limited.
Amounts contracted for but not provided in the financial statements:
After the reporting date, the Company purchased a motor vehicle for £62,761. The purchase occurred after the year end, a deposit of £6,000 has been paid in advanced and recorded as a debtor.
During the year the charity entered into the following transactions with related parties:
During the year, the charity received £62,000 (2025: £63,500) from Newport League of Friends of which trustees Mary Young and Barbara Gough are also trustees. No amount was outstanding at the year end.
During the year, the charity purchased £640 (2025: £1,734) from Partners in Care (Shropshire, Telford and Wrekin) of which trustee Susan Robson was a director up until 24 September 2025. There was no outstanding balance at the year end.
The charity had no material debt during the year.