On behalf of the Board of Trustees, I am pleased to present the Annual Report and Annual Accounts for the Ayrshire Hospice for the year ended 31st March 2026. This report reflects a significant year as we moved back to Racecourse Road, marking the completion of our exciting building programme.
At the heart of the Ayrshire Hospice is a simple and enduring purpose: to help people live as well as possible when facing life-shortening illness, and to support those most important to them. Throughout the year, our staff and volunteers have continued to deliver person-centred care with skill, kindness and dignity—whether in people’s own homes, in community settings, or through our specialist inpatient services. Their dedication is evident in every conversation, every act of reassurance and every moment of practical and emotional support offered to patients, families and carers.
The Annual Accounts set out the financial position of the Hospice and the stewardship responsibilities we hold as trustees. We remain deeply aware that the care we provide is made possible through the generosity of our communities, the commitment of our funders and partners, and the careful management of the resources entrusted to us. In a challenging financial environment, maintaining resilience, transparency, and good governance is essential to protecting our services now and for the future.
I would like to record my sincere thanks to everyone who has contributed to the work of the Ayrshire Hospice during the year. To our staff and volunteers, thank you for the care, professionalism and humanity you bring to your work every day. To our donors, fundraisers, corporate supporters, and communities, thank you for standing alongside us. To our partners across health, and social care, thank you for your collaboration and shared commitment to those we serve.
Most importantly, we thank the patients, families and carers who place their trust in the Ayrshire Hospice. Their experiences continue to guide and inspire our work. As Chair, I am proud of what has been achieved and confident in the commitment, compassion and resolve that will carry the Ayrshire Hospice forward in the years ahead.
The trustees present their report, incorporating the directors' report, Strategic report and accounts 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 Ayrshire Hospice's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The Ayrshire Hospice exists to provide specialist palliative and end-of-life care for adults with life-shortening illness, and to support the families, carers and communities who are important to them. The trustees confirm that they have had regard to the public benefit requirements applicable to charities in Scotland when reviewing the Hospice’s aims, activities and achievements.
During the year, the Hospice continued to deliver care and support across Ayrshire and Arran through a person-centred model that recognises the physical, emotional, social and spiritual needs of patients and those closest to them. Services were provided without discrimination and were shaped by the needs and preferences of the people using them.
For the reporting period from 1 April 2025 to 31 March 2026, the Hospice’s objectives remained focused on delivering high-quality specialist palliative and end of life care, strengthening community-based support, developing the skills and wellbeing of staff and volunteers, building effective partnerships, and ensuring the long-term sustainability of the charity.
Providing specialist care that supports quality of life for patients and families.
Delivering care in the setting most appropriate to the needs and wishes of each person, including hospice, community and home-based services.
Working in partnership with NHS Ayrshire & Arran, Health and Social Care Partnerships, business partners and local communities.
Supporting and developing the Hospice’s workforce of staff and volunteers.
Raising funds responsibly and maintaining public trust and confidence.
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present in a strategic report.
Key areas of activity during the year included specialist palliative and end of life care, community and home-based support, respite and response services, bereavement and family support, education, fundraising, retail activity and volunteer engagement. The trustees recognise the dedication of staff, volunteers, donors, partners and supporters whose contribution enabled the Hospice to continue serving local communities.
The year was marked by our return to the newly developed Racecourse Road Hospice, and for the first time has allowed all our staff functions to be collocated, the exception being our retail teams. This was a significant achievement for everyone associated with the Ayrshire Hospice. This modern facility supports the care of patients and their families in a welcoming and homely setting.
Overall, April 2025 to March 2026 data shows that the Ayrshire Hospice has responded to greater and more complex demands. This is reflected in increased activity across the inpatient unit, community services and virtual contacts. Some examples are shown below: -
• Our inpatient unit saw an increase of 16.5% in admissions.
• Our community teams carried out 8,529 patient visits, an increase of 7.5% on the previous year.
With the introduction of the Virtual Community Palliative Care Nurse in November 2025, we saw contacts increase from 346 to 565, an increase of some 63.3%.
Beyond the overall activity data, several developments and achievements during the year demonstrate the quality and wider impact of our care.
Quality of care
The quality of our services was independently assessed during the year. An unannounced inspection by Healthcare Improvement Scotland rated the Hospice 'Good' across all three areas assessed, with no clinical requirements identified.
Our Respite and Response service also received the Care Inspectorate's highest possible evaluation of ‘6 – Excellent’. Inspectors highlighted exceptional, compassionate and responsive care and the positive difference this makes to people's lives, alongside strong leadership, teamwork and a well-established culture of continuous improvement.
Supporting people to return home
Since our return to Racecourse Road in July 2025*, 189 patients have been admitted to our In-Patient Unit, with more than 2,900 occupied bed days recorded. Of those admitted, 70 patients were supported to return home following treatment, care and symptom management.
The purpose-built In-Patient Unit provides private en-suite rooms with direct access to individual patient patios and landscaped gardens, giving patients greater privacy and comfort and creating opportunities for patients and families to spend time together outdoors. Our wellbeing outpatient facilities have also been redesigned and allow for seamless access for day patients as well as those in our In-Patient Unit.
Clinical teams have continued to develop new ways of working and strengthen the quality and reach of specialist palliative care across Ayrshire and Arran.
There has been an increase in Medical and Advanced Nurse Practitioner (ANP) support within the community, strengthening access to specialist clinical assessment, advice and decision making for patients with more complex palliative care needs. This has supported community nursing teams and colleagues across health and social care, enabling more timely access to specialist clinical input for patients in their own homes.
The Hospice has increased the presence and availability of Specialist Palliative Care Nurses across Arran and Millport, strengthening specialist support for patients, families and local healthcare professionals in these communities. This has enabled closer links with local services and improved access to specialist palliative care advice and support for people living in island communities.
Helping people to live well
Our return to Racecourse Road has enabled us to significantly develop our Living Well services. Since July 2025*, 439 people have accessed Living Well support, with more than 1,050 attendances across activities, groups and wellbeing sessions.
A new supportive timetable and one-to-one outpatient clinics have broadened the support available, with purpose-designed spaces, the Living Well lounge and gardens provide opportunities to support independence, confidence, wellbeing and social connection.
*Figures relating to activity since our return to our purpose-built site at Racecourse Road cover July 2025 to March 2026 and are included to illustrate activity following the move.
Creating moments that matter
The impact of hospice care extends beyond clinical outcomes. During the year, our teams helped patients and families mark three wedding celebrations, a celebration of life, milestone anniversaries, birthdays and other important occasions.
Our teams also hosted two Family Fun Days and three Light Up a Life remembrance events at Racecourse Road, alongside seasonal activities and visits from alpacas, police horses, a petting zoo and community dog groups.
These experiences are an important part of our person-centred approach, helping people to live as fully as possible and enabling patients and those who matter to them to spend meaningful time together.
‘As soon as I entered the room, stress and anxiety left, and I felt at peace’
‘The whole team was available to see my husband and make sure he was comfortable’
Patient experience survey respondents
In addition to our clinical services, we have also seen success with the fundraising portfolio, despite a challenging fundraising environment. Community fundraising was the standout success, with a significant growth in Kiltwalk participation and income, alongside strong performance from third-party events and in aid of fundraising, helping to strengthen long-term supporter engagement. Lottery income also exceeded targets, supported by enhanced volunteer engagement and sign-up opportunities.
Individual giving continued to provide a stable and significant source of income, with legacy giving remaining a key contributor. While income from events and trusts & grants reduced, the year saw continued investment in building corporate relationships, enhancing supporter journeys and strengthening fundraising foundations, positioning the Hospice for sustainable future growth. Careful management of expenditure also resulted in fundraising costs reduce.
Our shops also had a successful period following a period of transformation where we reduced the retail estate by two shops, streamlining trading hours and staffing, and restructuring roles to create a more sustainable operating model. Despite these changes, the retail team continued to deliver a strong financial performance increasing revenue. Gift Aid income increased by 11% and recycling income grew by 50% year-on-year. Careful cost management resulted in overhead savings, ensuring all shops remained profitable throughout the year.
More recently we have strengthened our online presence with a dedicated team managing our online trading platforms and fulfilling orders from our website through our Donation Centre in Ayr. This will be an area of focus in the coming years recognising continued change in shopping habits by customers and an opportunity to target all demographics through online trading and advertising.
The opening of the Gargowan Café and Gargowan Gifts at Racecourse Road created a new way to welcome and connect with the wider community while generating income in support of Hospice services. The launch of Gargowan No.35 Gin provided a further new fundraising initiative and opportunity to engage supporters.
The year also saw continued investment in our people, governance and community connections. Two new Board members with clinical experience were appointed, strengthening the clinical expertise available to the Board and helping to ensure that patient, family and frontline perspectives inform strategic decision-making. The Hospice was also recognised with the Inspiring Culture Award at The Herald and s1jobs Top Employer Awards, while new corporate partnerships were developed with organisations including Kilmarnock Football Club, Ayr United Football Club and Trump Turnberry Hotel & Resort.
None of the above could have been achieved without the tireless work and contribution of our 219 staff, 346 volunteers and partners.
Strategic Development
The Hospice continued to progress its strategic priorities for 2023 to 2026, centred on people, care, partnership and sustainability. The trustees maintained oversight of the delivery of the strategy and monitored progress against agreed objectives, ensuring that the organisation remained responsive to changing needs, financial pressures and the wider health and social care environment.
Delivering against our 4 strategic priorities has seen the following being achieved:
People
Our people remain at the heart of the Ayrshire Hospice and are fundamental to our ability to deliver exceptional care, compassion and support to patients, families and communities across Ayrshire. Throughout the year, we continued to invest in the delivery of our People Strategy, strengthening our position as an employer of choice through a sustained focus on engagement, wellbeing, leadership development, recognition and workforce sustainability. These priorities align directly with our strategic commitment to recruit, develop and retain a skilled, values-led workforce while fostering a culture where colleagues feel supported, valued and empowered to thrive.
A key focus has been strengthening employee engagement and ensuring the voice of our workforce informs decision-making. Following staff feedback, we introduced a range of initiatives designed to improve communication, visibility of leadership and opportunities for connection. The launch of the Ayrshire Hospice Staff Council marked a significant advancement in our employee engagement agenda and commitment to organisational transparency. Designed as a representative voice for staff across all areas of the Hospice, the Council supports meaningful partnership working between employees and leadership, enabling staff to actively influence decisions that affect their working lives. By providing a formal structure for feedback and collaborative problem-solving, the Staff Council strengthens our culture of openness, trust and inclusion. As an important component of our People Strategy, it demonstrates our commitment to listening to our workforce, empowering staff to ensure that employee voice remains at the heart of our decision-making processes.
Furthermore, regular Meet the CEO sessions, Cicely Socials, and Pull Together wellbeing activities have created meaningful opportunities for colleagues and volunteers to engage with senior leaders, share views and build relationships across the organisation. This approach reflects our commitment to creating an open, inclusive culture built on trust, transparency and collaboration.
Supporting health and wellbeing continues to be a strategic priority. During the year, we expanded our wellbeing offer through initiatives including the introduction of a dedicated Staff Wellbeing Room, wellbeing events, sound bath sessions, menopause support discussions and improved access to wellbeing resources. These initiatives recognise the emotional demands of hospice work and reinforce our commitment to providing a safe, healthy and supportive environment where colleagues can look after their own wellbeing whilst caring for others. Our ongoing investment in wellbeing reflects the People Strategy ambition to place wellbeing at the heart of both staff and volunteer experience.
Learning and development have remained central to our approach to workforce sustainability and succession planning. Significant investment has been made in leadership and management development, with more than a quarter of the workforce participating in a comprehensive leadership development programme designed to enhance confidence, build capability and strengthen leadership across the organisation. Alongside this, work continued to modernise our people processes, including the review of our Performance Development Review framework, ensuring performance conversations focus on development, wellbeing, aspirations and contribution rather than compliance. These improvements support continuous learning and help colleagues understand how their individual role contributes to the delivery of our strategic objectives.
Volunteers continue to make an invaluable contribution to the Ayrshire Hospice, and we remain committed to ensuring volunteers experience the same levels of engagement, development, recognition and support as our employed workforce. Volunteer celebration events, enhanced recognition opportunities and ongoing involvement in organisational initiatives have helped strengthen connection and belonging across our wider Hospice community. The loyalty and dedication demonstrated by both staff and volunteers continue to be reflected in the long service of many individuals who have chosen to support the Ayrshire Hospice over many years.
Collectively, these achievements demonstrate meaningful progress against the aims of our People Strategy. By continuing to invest in our people, listening to feedback, supporting wellbeing, developing leadership capability and recognising contribution, we are strengthening a culture where colleagues and volunteers feel inspired, informed and connected. This ongoing commitment not only enhances the experience of working and volunteering at Ayrshire Hospice but ultimately supports the delivery of exceptional care for those who depend on our services.
Care
A key objective within the Ayrshire Hospice’s 2023–2026 strategy was to improve digital access to information about Hospice care and services, making it easier for patients, families, carers and healthcare professionals to understand the support available and how to access it.
In April 2025, we launched a new Ayrshire Hospice website, providing a more accessible and user-friendly platform with clearer information about our services, referral pathways and the support available across Ayrshire and Arran. Clinical colleagues were actively involved in the website steering group and development process, helping to ensure that information was shaped around the needs of those accessing our services. Development has continued following the launch, including user testing and accessibility improvements. Further work is focused on developing clearer patient pathways and practical resources to improve access to relevant information and ensure the website continues to meet the needs of patients, families, carers and healthcare professionals.
Alongside improvements to digital access for patients and families, the Hospice has continued to strengthen its digital clinical systems to support the delivery of safe, coordinated and responsive care. A key development has been the transition from the previous electronic clinical record system to Care Database. This has provided a more effective platform for recording, accessing and sharing patient information and supports staff to work more efficiently across hospice services and care settings. Improved access to clinical information helps ensure that staff have the information they need to support timely decision making and provide coordinated care.
The Hospice has also championed the completion and use of Respect documentation (Recommended Summary Plan for Emergency Care and Treatment). This work supports greater consistency in advance care planning and ensures that an individual’s wishes, priorities and recommendations for future care are clearly documented and accessible. This is particularly important when patients move between different care environments, supporting continuity of care and helping to ensure that care remains aligned with the individual’s wishes.
Together, these digital improvements have strengthened access to information for patients, families, carers and professionals, while also improving the availability and sharing of clinical information across services. They support the Hospice’s wider strategic ambition to make it easier for people to access the right information and support at the right time, while enabling staff to respond effectively to changing patient needs and demand.
Partnership
Partnership working remains central to the Ayrshire Hospice’s approach to improving access to high-quality palliative and end of life care. During the year, the Hospice continued to develop strong relationships across health, social care, education, community and justice services, recognising that effective palliative care relies on collaboration across organisational boundaries.
A significant partnership initiative has been the three-year project with HMP Kilmarnock, supported through grant funding, to improve access to palliative care for people in prison. The project has focused on developing the knowledge, skills and confidence of prison healthcare staff and officers, while strengthening links between the prison and specialist palliative care services.
As part of the project, education sessions have been delivered to prison staff nurses covering:
• An introduction to palliative care in the prison environment
• Communication and having sensitive conversations
• Recognition and management of palliative care emergencies
To strengthen practical understanding and build relationships between services, 12 prison staff nurses have each completed a one-week placement at Ayrshire Hospice, gaining experience alongside both community and inpatient teams. These placements have provided an opportunity to develop practical knowledge of palliative and end of life care and to better understand the role of specialist palliative care services.
The project has also supported the development of accessible digital learning resources for both prison officers and healthcare staff. Videos for prison officers cover palliative care in prisons, the implications of an ageing prison population, an introduction to palliative care, and recognising deterioration using tools such as the Supportive and Palliative Care Indicators Tool (SPICT) and the Australia modified Karnofsky Performance Status (AKPS). Resources for healthcare staff provide more detailed education covering national drivers, palliative and end of life care, disease trajectories, holistic assessment, SPICT, communication, future care planning and relevant prison-based case studies.
Education has been delivered from the Hospice clinical pharmacist on palliative care and addictions, recognising the complexities associated with supporting people with palliative care needs and substance use issues. In addition, the Specialist Palliative Care Nurse (SPCN) assigned to the locality has continued to support the prison healthcare team by attending their person of concern meetings, providing specialist advice and helping to identify opportunities for earlier palliative care intervention.
Beyond the HMP Kilmarnock partnership, the Hospice has continued to build strong relationships with NHS Ayrshire & Arran, Health and Social Care Partnerships, local schools, care homes, community organisations and other health and social care professionals. The Chief Executive Officer (CEO) and senior leaders have contributed actively to strategic groups and committees focused on improving end of life care, including the North, South and East Ayrshire Health and Social Care Partnerships, the PAN Ayrshire Palliative and End of Life Care Strategy Group, and the Ayrshire and Arran Steering Group for Ageing and Frailty Standards. This involvement enables the Hospice to contribute specialist expertise to wider system planning and to influence improvements in palliative and end of life care across Ayrshire.
The Living Well service has also provided an important partnership and community focused approach, offering support to people in their own communities, at the Hospice and through community hubs across Ayrshire. A combination of online and face to face support has enabled people to access groups and resources addressing issues such as fatigue, anxiety and breathlessness, supporting people to live as well as possible alongside their illness.
Education and workforce development have remained key components of the Hospice’s partnership approach. Strong links with universities have enabled the Hospice to support the learning and development of nursing, pharmacy, paramedic and medical students, helping to build palliative care knowledge and experience within the future workforce. In addition, education and awareness sessions have been provided for district nurses, Scottish Ambulance Service paramedics, social care staff, acute hospital staff and allied health professionals (AHPs).
Through these partnerships, the Ayrshire Hospice has continued to extend its specialist knowledge beyond its own services, build the confidence and capability of the wider workforce, and contribute to a more integrated approach to palliative and end of life care across Ayrshire. This collaborative approach supports earlier identification of need, improved access to specialist advice and greater continuity of care for patients and their families.
Sustainability
Our new campus at Racecourse Road is an all-electric site and benefits from some of the most modern systems to effectively manage the building ensuring that we understand and respond to our obligations as an energy efficient and environmentally responsible organisation. This has included installation of heat pumps within our retail premises and the replacement of high wattage light fittings with LED units. At Racecourse Road we have installed additional above ceiling insulation in the two traditional houses that form part of our site. This has retained heat within the building and will save on costs over time. In 2025 we replaced our ageing vehicle fleet with more modern vehicles and continue to expand our use of electric vehicles. These use a set of electric charging points installed as part of the new build and we make these available to staff and visitors at an attractive price per hour to encourage greater use of environmentally sustainable vehicles.
Going concern
In preparing these financial statements, the Company Directors have had regard to the financial position of the Hospice as evidenced in the 2025-26 balance sheet, to the detailed budgets prepared for the following year to March 2027 and beyond, and to the likely sources of income during that period. The Company Directors are satisfied that the presentation of the financial statements of the Hospice on the going concern basis is appropriate, and accordingly the financial statements have been prepared on that basis.
Principal Funding Sources
In the year to 31 March 2026, it cost approximately £27,500 each day to run the Hospice’s facilities and on-going services. The Hospice is partly funded by a contribution from NHS Ayrshire and Arran (NHS A&A) towards certain core services. In the year to 31 March 2026, this funding amounted to £4,299,021 (2025 - £4,132,961). This increase reflects the previously agreed annual uplift in our Service Level Agreement. In addition, we received £380,630 of grant funding from The Scottish Government as our share of the national £5 million funding towards supporting pay parity for frontline staff with the NHS.
We recognise the significant financial constraints under which the NHS operates, and we are very appreciative of and dependent on this funding. We value our close relationship with NHS A&A.
NHS and Government funding does not, however, meet all the costs of charitable hospices. We are dependent on the continuing generosity of our donors, partners and the many trusts and foundations who contribute to our costs through attendance at fundraising events, donating legacies and giving direct donations of both cash and goods to sell in our shops, as well as providing substantial grants and awards.
In the year to March 2026, unrestricted fundraising towards our ongoing services fell to £3,469,804 (2025 - £3,957,913). This fall is mainly a result of major events being cancelled, a reduction in legacy and trust and grant income from the previous year, offset to some extent by improved lottery income. In continuing difficult trading conditions, our retail shops’ sales fell to £1,425,879 (2025 - £1,463,409) and we benefited from new income from our café and Gargowan gifts of £67,557 (2025 – nil). However, due to effective cost management, the profit contribution from our shops rose by 3% this year.
Result for the year
Before taking account of finance income and the unrealised gain on investments, the Hospice sustained a deficit on unrestricted funds of £369,573 on our day-to-day activities in the year to 31 March 2026. This deficit arose largely because of the falloff in fundraising income, an increase in our salary and pensions bill and the higher operating costs of our new facility. Executive management continues to strive to manage our cost base and to achieve efficiency through transformation projects. Our unrestricted funds result – our operating result – is improved significantly when investment income of £462,662 (2025 - £462,454) and a gain of £883,368 (2025 - £142,949) in the value of our investment portfolio is taken into account, the Hospice’s final operating result is a surplus of unrestricted funds of £976,457 for the year (2025 - £914,773).
The deficit on restricted funds of £12,005 represents the expenditure during the year where restrictions have been imposed. These funds have been used for purchasing equipment, special events within the in-patient unit or for staff education in line with the specific wishes of the donors or grantors.
The deficit on designated funds arises largely from the depreciation charge on the new build project which is set off against the new designated depreciation fund, and specific payroll and overhead costs on other projects previously approved by the board.
Overall, the final result of the Hospice for the year to 31 March 2026 is a surplus on all funds of £290,478 as set out in our Statement of Financial Activities.
Balance Sheet
The Hospice’s financial position at 31 March 2026 remains strong. The value of our investment portfolio continued to improve and stood at £11,796,929 at the year end (2025 - £10,920,304). Our total cash balances amounted to £7,431,925, down from 2025, reflecting continuing expenditure on the capital project and increased levels of cash in our investment portfolio.
Construction of our new facility at Racecourse Road, Ayr, was effectively completed in the summer of 2025 and the first patients were admitted to our new in-patient unit in July. The total project cost of £24.2 million, including non-capital expenditure, was within budget and we acknowledge the hard work of our principal contractor, our professional advisors and our own internal team in achieving this splendid result. We are extremely grateful to the public for their donations and to the funding support from the Scottish Government towards this project.
Debtors at the year-end show a considerable decrease from last year. This is largely due to a reduction in the quarterly VAT recoverable from His Majesty’s Revenue and Customs arising from the timing of our capital expenditure. Included in current liabilities is the final tranche of the loan received from the Scottish Government of £5.3 million due for repayment in March 2027.
Investments
The Hospice’s investment strategy remains to invest in low to medium risk funds and stocks and that capital appreciation of the fund exceeds inflation. The volatility of stock markets results in this aspiration being challenging. The performance of the portfolio continues to be reviewed quarterly, and regular meetings are held with senior representatives of our sole fund manager, Brewin Dolphin.
The Hospice’s investment assets continue to be held as part of a structured investment portfolio and are screened for environmental, social and governance factors. The portfolio is structured to ensure that the main objectives of the Hospice around the provision of care are not impinged, and the Company Directors specifically require that no investments be held in tobacco, armaments, pornography or other unethical sectors or areas specifically covered by UK Government embargoes or restrictions.
Reserves Policy
Unrestricted funds are held in reserve to aid the charity in managing future financial uncertainty and the financial impact of identified key organisational risks. This includes uncertainty around the future income of the Hospice, financial liabilities which the charity holds, and potential major cost pressures associated with key service risk factors.
The Board aspires to maintain a target level of unrestricted funds equivalent to one year’s unrestricted operating expenditure. At the year end, the balance on unrestricted funds amounted to £14,043,790. This equates to just under 16 months’ projected operating costs for 2026-27. This is, however, becoming increasingly difficult to sustain due to increasing cost pressures.
Forecast financial position for 2026-27 and future developments
The Hospice is again budgeting for an unrestricted operational deficit for the coming year as well as forecasting similar deficits for a further two years thereafter. There are continuing pressures on main operating costs, staffing budgets, and ongoing general inflationary impacts. Charitable retail operations are continuing to sustain difficult trading conditions, but our retail review has placed the Hospice’s shops in better financial footing than before. Executive management is confident, however, that appropriate measures can be put in place to address these challenges to limit the extent of the Hospice’s financial exposure.
We have reached agreement with NHS A&A regarding their contribution for 2026-27, which will remain identical to 2025-26 with no inflationary uplift. This adds additional pressure to increase external fundraising to support our operations as our unrestricted expenditure is projected to increase by just under 7%. The Scottish Government has committed further support for Scottish charitable hospices in 2026-27 which would mean an increase to £684,000 on the amount we expect to receive. The Company Directors continue to trust that the value which charitable hospices add to healthcare provision will be recognised and appreciated by Scottish Ministers and that fair and sustainable long-term funding arrangements can soon be put in place to ensure the continuing provision of palliative care by the Hospice sector.
We continue to review our events programme. Our popular Burns Supper was reinstated, and the Autumn Ball remains a major event. Our Gargowan Café has been launched successfully, and sales of our No.35 Gin are contributing to income. We have appointed a new business development manager, and we have initiated a further review of our retail offering to explore potential new outlets and other opportunities for income growth.
The Board remains committed to providing, as far as possible, pay and conditions equivalent to those working in similar roles in the NHS. We have designated further funds to improve non-cash benefits for our staff, and to provide structured training for staff across all departments.
The Ayrshire Hospice remains well placed to continue to deliver vital palliative and end-of-life care for the people of Ayrshire.
Risk Management
The Board undertakes a structured review of strategic risks during each committee cycle.
The key strategic risks for 2025-26 for the Hospice were:
Failure to forecast and evaluate risks within clinical services, resulting in a catastrophic outcome;
Insufficient cash to continue to deliver ongoing and future palliative care;
Insufficient disaster recovery and business continuity planning in place resulting in an interruption of continuous service;
Inability to recruit, train and retain an effective workforce;
Non-Compliance with Laws & Regulations resulting in compromised safety, service, or liability (includes patients, staff, Company Directors, volunteers, donors and the general public);
Reputational damage leading to lack of public confidence;
Lack of innovation and investment impacts on the future capability of the Hospice; and
External political and legislative changes impacting hospice operations.
These risks have all been mapped against our Risk Appetite Statement.
Risk reports are produced for each governance committee to monitor and scrutinise the risks identified and ensure the necessary steps can be taken to mitigate those risks. Risk is a standing item on every Hospice Board agenda with an overarching risk report presented for discussion and approval.
The Ayrshire Hospice is both a registered charity in Scotland and a company limited by guarantee.
The company is established under its Memorandum of Association which outline the charitable objects and powers of the company. It is governed by its Articles of Association which set out the legal and organisational procedures to which its administration must adhere.
The trustees, who are also the directors for the purpose of company law, and who served during the year and changes since the year end were:
The Company Directors report that there are no related party transactions in the year which require to be disclosed.
Gargowan Limited (SC819846) is a wholly owned subsidiary of The Ayrshire Hospice and remains dormant since its incorporation in August 2024.
Membership of our Board
The Board seeks through its membership to be as balanced a representation of the community as possible. It seeks to be proactive rather than reactive in achieving an appropriately diverse membership.
The Directors of the charitable company (the charity) are its Board Members for the purpose of charity law and throughout this report are referred to as the Company Directors, or collectively as the Board. The Company Directors meet a minimum of three times a year. Day-to-day operational responsibility is delegated to the Chief Executive Officer who attends all meetings of the Board and its sub-committees. There is a clear reporting structure whereby senior staff members with defined responsibilities report to the CEO, who in turn reports to the Chair and the Board.
At the date of this report, Key Management Personnel consisted of:
John Burns OBE - Chief Executive Officer
Lynne Hoffin - Director for Patient and Family Services
Brian Anderson - Director of Operations and Transformation
Dr Joanna Prentice – Lead Consultant
These Directors are not statutory Company Directors.
The Medical Director for NHS A&A is the Caldicott Guardian for the Hospice.
Board Governance
The Board is committed to continuous improvement and aspires to achieve excellence in everything it does. To ensure that all Company Directors and the Board, as the body corporate, are (i) effective in the delivery of its aims and objectives; (ii) compliant with their duties, responsibilities and terms of reference; and (iii) are in a position to contribute to the Board’s continuous improvement, the Board undertakes, on an ongoing basis, development activities together with Key Management Personnel and ensures that following the completion of their annual skills audit and their annual appraisal, arrangements are put in place for individual (and groups of) Company Directors to access appropriate training.
Board Governance is exercised through the following committees:
The Organisational Governance committee is concerned with all matters relating to staffing, IT, regulation including health and safety and organisational risk. Any highlighted risks (other than clinical risks which are processed through the Clinical Governance Committee) are reviewed and reported to the Board through this committee in order to ensure that the hospice continues to achieve its strategic goals and operational objectives;
The Clinical Governance committee focuses on patient safety, quality of care, strategic development in clinical practice, education and training, and oversees the activities of the Care and Quality Management Group – the remit of this Group includes clinical audit, risk management, incident themes and actions. This group also oversees infection prevention and control, safer use of medicines, falls prevention, training and education, advanced practice and resuscitation. The Committee reports to the Board, providing assurance relating to agreed performance targets, patient safety and standards of care.
The Financial Governance committee scrutinises whether the hospice has the resources required to achieve its aims and objectives. It is concerned with monitoring financial performance, reviewing financial controls and risk management systems and for ensuring that our strategies for investment and income generation are consistent with the hospice's strategic plans. The Committee meets with the auditors at the conclusion of the annual audit and considers any points raised by them. It reports to the Board to provide financial assurance.
In addition to the governance committees, there is also the Appointments and Development committee to oversee the recruitment and selection process for Company Directors; the retention and development of Company Directors; ensure that Company Directors receive the necessary induction, training and ongoing support needed to discharge their duties; and undertakes the recruitment and selection of the CEO on behalf of the Board.
In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report, including the strategic report, was approved by the Board of Trustees.
The trustees, who are also the directors of The Ayrshire Hospice 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 Ayrshire Hospice 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Ayrshire Hospice 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 Ayrshire Hospice and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Ayrshire Hospice and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of The Ayrshire Hospice (the ‘Ayrshire Hospice’) 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 Ayrshire Hospice 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 Ayrshire Hospice’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 and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Ayrshire Hospice and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
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.
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.
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for potential management bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Reviewing the level of and reasoning behind the company's procurement of legal and professional services.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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, 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 trustees 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
William Duncan + Co (Audit) Ltd is eligible for appointment as auditor of the Ayrshire Hospice by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Designated funds
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Designated funds
Investments
Raising funds
The Ayrshire Hospice is a private company limited by guarantee incorporated in Scotland. The registered office is 35-37 Racecourse Road, Ayr, Ayrshire, KA7 2TG.
The Ayrshire Hospice has a wholly owned subsidiary company Gargowan Limited, SC819846, which is a private company limited with issued share capital incorporated in Scotland. Gargowan Limited is not a registered charity. The Ayrshire Hospice is sole member of the subsidiary. The subsidiary has been dormant since incorporation and therefore consolidated accounts have not been prepared as the subsidiary is considered immaterial.
The financial statements have been prepared in accordance with the Ayrshire Hospice's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), Companies Act 2006 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 Ayrshire Hospice is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Ayrshire Hospice. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the accounts, the trustees have a reasonable expectation that the Ayrshire Hospice have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees, having identified no material uncertainties, 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.
Income is recognised when the Ayrshire Hospice 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 Ayrshire Hospice 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 Ayrshire Hospice has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is estimated based on the information available to the charity.
Grants, where entitlement is not conditional on the delivery of a specified performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Charitable activities income relates to grant funding from NHS Ayrshire & Arran. This is recognised on an accrual basis when income can be measured and it is probable that the charity will receive the income.
Income from government grants, whether 'capital' grants or 'revenue' grants, is recognisable when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.
Income is deferred only when the charity has to fulfil conditions before coming entitled to it - for example, where the donor has specified that the income is to be expended in future periods.
Income from fundraising activities is credited to the Statement of Financial Activities on an accruals basis.
Income from shops is recognised in the year in which the shop sale takes place.
Lottery income is based on the number of members eligible for each draw during the year and is accounted for under the accruals basis.
Income from investments is included when receivable and is allocated to unrestricted funds.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and that amount of the obligation can be measured reliably. Expenditure is allocated between activities on a direct basis.
Expenditure other than that which has been capitalised is charged to the Statement of Financial Activities on an accruals basis, net of recoverable Value Added Tax.
Raising funds expenditure comprises the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.
Charitable activities expenditure comprises all costs and expenses considered to relate direct to achieving and maintaining the objectives of The Ayrshire Hospice. Other items of expenditure are those costs incurred to allow the various departments, staff members and volunteers to maintain quality standards and comply with statutory obligations.
Support costs are those costs which, although not directly incurred in delivery of palliative care, are none the less critical to achieving the objectives of the Hospice and include costs in relation to people & culture, finance, estate management, IT and secretarial departments.
Support costs are directly allocated to the cost centre to which they relate.
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. Assets costing less than £5,000 are not capitalised.
In respect of assets in the course of construction, no depreciation is charged until the assets are brought into use.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
Cash Investments with maturities of more than three months are classified as cash investments and are measured at amortised cost where they meet the conditions of a basic financial instrument. Interest income is recognised in the Statement of Financial Activities (or Profit and Loss Account) using the effective interest method.
A subsidiary is an entity controlled by the Ayrshire Hospice. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in net income/(expenditure) in the period in which they are incurred.
At each reporting end date, the Ayrshire Hospice reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises purchase costs only, donated goods have not been valued. The directors do not deem it practicable to value donated goods due to the significant amount of work and cost associated with this procedure.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Ayrshire Hospice 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 Ayrshire Hospice's balance sheet when the Ayrshire Hospice becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Ayrshire Hospice’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 Ayrshire Hospice 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.
The charity participates in a defined benefit scheme for all employees with continuing NHS Service.
Pensions costs are assessed in accordance with actuarial advice and based on the most recent actuarial valuation of the scheme. For other employees, who opt to do so, the charity provides a stakeholder money purchase pension scheme.
All costs are accounting for on the basis of charging the cost of providing pensions over the period during which the charity benefits from the employees services.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
Concessionary loan
The concessionary loan, which is interest free, is carried at original cost less any repayments made.
In the application of the Ayrshire Hospice’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The trustees are satisfied that the accounting policies are appropriate and applied consistently. Key sources of estimation have been applied to the depreciation rates and legacy income receivable. Depreciation rates have been deemed to be appropriate for the class of asset. Legacy income receivable has been estimated using the latest available, reliable information on an individual legacy basis.
The Ayrshire Hospice is in receipt of financial aid in the form of grants from NHS Ayrshire & Arran which are contributed towards the running costs of the Hospice. The income is unrestricted. The Ayrshire Hospice is therefore dependent upon this source of income continuing in order that it may maintain the current standards of patient care within Ayrshire and Arran.
Other income
Fundraising, publicity and lottery activities
Trading costs
None of the trustees (or any persons connected with them) received any remuneration or benefits or remibursement of expenses, or had expenses paid on their behalf during the year.
The average number of employees is based on the monthly head count of employees during the year was:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The investments are managed by an external fund manager and are valued at the closing open market valuation as at 31st March 2026.
The historical cost of the listed investments at 31 March 2026 is £11,035,459 (2025 - £10,513,177)
The charity received a concessionary loan of £8 million in relation to the Capital project in 2021.
During the year, the Hospice made the first repayment towards the £8 million interest free loan. The outstanding balance is repayable by 31 March 2027.
In respect of the loan, a standard security is held over 35-37 Racecourse Road, Ayr, KA7 2TG and the plot of ground to the south of 13 Ronaldshaw Park, Ayr, KA7 2TJ, included within land and buildings.
The charitable company operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the charitable company in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £424,780 (2025 - £349,931)
The restricted funds of the charity are subject to specific conditions by donors as to how they may be used.
The Hospice has the following restricted funds:
· Capital Build - to fund specific items relating to the Hospice capital build project;
· Ladies Lunch Club (North) - funds to spend as directed by the Club;
· Ladies Lunch Club (South) - funds to spend as directed by the Club;
· Other Restricted funds - to fund services or equipment where a donor has specified a specific use to
enhance the experience that patients and their families.
During the year, £247 (2025 - £3,568,381) has been transferred from the restricted fund reserve to the designated fund reserve to fund the Capital Build project.
The designated funds have been set aside at the discretion of the trustees for specific purposes:
The Hospice has the following Designated funds:
· Capital Build – to fund the Hospice Capital Build Project and to contribute to the future life cycle costs of the building.
· Capital Build Depreciation Reserve – to be used to fund the depreciation charge of assets capitalised as part of the of the Capital Build Project;
· Property Reserves – to fund depreciation charges on assets that have been paid for from restricted funds;
· Kathleen Sherry Fund – to fund training and education support for Hospice staff;
· Employee Benefit Fund – to fund and support employee benefits committed by the Directors;
· Treasurer Contingency - to fund specific projects during the year as determined by the trustees.
During the year, £247 (2025 - £188,676) has been transferred from the restricted fund reserve to the designated fund reserve to fund the Capital Build project.
The unrestricted funds are available for the furtherance of the Hospice's charitable activities:
At the reporting end date the Ayrshire Hospice had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements:
The Capital Build project reached practical completion on 6 June 2025. The total project cost including non-capital expenditure was £24.2 million.
The remuneration of key management personnel, is as follows.
No advances, credits or guarantees have been given or received.
The Ayrshire Hospice has a wholly owned subsidiary company Gargowan Limited, SC819846, which is a private company limited with issued share capital incorporated in Scotland. Gargowan Limited is not a registered charity. The Ayrshire Hospice is sole member of the subsidiary. The subsidiary has been dormant since incorporation and therefore consolidated accounts have not been prepared as the subsidiary is considered immaterial.
Details of the Ayrshire Hospice's subsidiaries at 31 March 2026 are as follows: