REGISTERED COMPANY NUMBER: SC098460 (Scotland)

REGISTERED CHARITY NUMBER: SC014665

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

FOR

ARCHWAY (RESPITE CARE AND HOUSING)

LIMITED

Page

Report of the Trustees

1

to

5

Report of the Independent Auditors

6

to

8

Statement of Financial Activities

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

to

21

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

The Objectives of Archway Respite Care and Housing (ARCH) are to provide support to those in need by reason of age or disability or some other disadvantage resulting in additional support needs in Scotland. Specifically, this support comprises respite care on a planned or emergency basis for people of all ages with a learning disability and the provision of residential accommodation and care for adults with a learning disability. From time-to-time, other services will be provided if they are consistent with the provision of the principal objects and provided they further the welfare of the residents and their families. In general, the aim of Archway is to improve the quality of life for the services users and their families.

In the period under review, Archway continued to provide respite of varying durations for 129 adults and children totalling 3,291 bed nights and permanent accommodation and care for 26 adults, with a focus on providing high quality service provision to all service users with a uniformity of standards across all services.

The Board of Archway is voluntary.

STRATEGIC REPORT

Achievements and performance

The provision of residential respite has always been a core Archway service which the families of service users frequently describe as essential to their ability to continue to care for their loved ones. Despite inflationary cost pressures during the period under review, Archway continued to support two 6 bed respite services whilst also investing in maintaining and improving the facilities at both sites.

Archway remains committed to providing a stable, high-quality service, staffed by well trained and motivated staff, which is essential to the well-being and development of the service users and residents. During the year the focus of the Chief Executive Officer and the management team has been on continuing to provide high quality care to all service users while at the same time ensuring that the organisation can continue to provide a cost-effective service. Given continuing local authority financial constraints it is essential that Archway continues to offer a cost-effective service without sacrificing quality.

A key measure of performance are the grades assigned by the Care Inspectorate following their visits to Archway facilities and the reports documenting the results of all Care Inspectorate visits are discussed at Board meetings. The team's current objective is to achieve ratings of 4 or higher across all assessed criteria in each service and there are already signs from recent inspections that good progress is being made.

The current management structure has enabled faster decision making and there has been relentless focus on the elimination of unnecessary waste. Steps have also been taken to ensure regular communication with the Aberdeen Health and Social Care Partnership (AHSCP), Archway's local authority funding partner. During the year, the strategy to fully exit Berryden Mills (BDM) was finally completed with the two remaining residents transferred to a suitable property in Dominies Road owned by the Local Authority.

Archway continues to have a dialogue with the families of service users to maintain accurate personal care plans and ensure that any services developed are in keeping with the wishes of those families and meet the needs of the potential service users.

Although the market for care staff remains extremely challenging, Archway is an accredited Real Living Wage (RLW) employer and has continued its in-house provision of Scottish Vocational Qualifications in Social Care (SVQ).

Archway has also continued to work with Aberdeen Medical School to create greater awareness of the medical needs of those with learning disabilities. Every Tuesday, Archway's Westburn Road (WBR) service welcomes a trainee doctor to spend four hours shadowing experienced support workers. This placement provides valuable first-hand experience of supporting people with learning disabilities in a service/home setting. During their time with Archway, trainee doctors observe how support workers build positive relationships, communicate effectively, and provide person-centred care that promotes independence, choice, and wellbeing. A key focus of the placement is helping trainees understand the importance of treating every individual with dignity, respect, and compassion, ensuring that the person's voice, preferences, and rights remain at the centre of all interactions.

For the trainee doctor, this experience offers a deeper understanding of the unique needs, challenges, and strengths of people with learning disabilities. It helps develop confidence in communicating with individuals who may have different communication styles, improves awareness of reasonable adjustments in healthcare, and reinforces the importance of delivering equitable, person-centred care. These insights are invaluable in shaping more empathetic and effective future medical practice.

Financial review

Although the year which ended on 31 March 2026 resulted in a deficit of just over £129k, this was a considerable improvement over the previous year's deficit of £444k and approximately £50k of the deficit was a result of a revaluation of the WBR property in which Archway has a financial interest. The improved financial performance reflects the action taken by the CEO and management team to address some of the main underlying factors which contributed to the previous year deficit. Despite market conditions remaining extremely challenging, gross income for the year was increased by over £255k.

One very significant impact in the previous year was several vacancies in supported living facilities and the resulting loss of income for an extended period while staffing levels had to be maintained. In addition, the delayed exit from Berryden Mills (BDM) had a very significant impact due to the disproportionate cost of running this as a two-person service and Archway being unable to recover a significant proportion of the cost from our funding partner Aberdeen Health and Social Care Partnership (AHSCP).

During the year the CEO and management team worked hard to address these impacts, most supported living vacancies were filled and the planned exit from BDM was finally completed with the two remaining BDM tenants successfully transferred to a property owned by Aberdeen City Council and a new funding arrangement agreed with the AHSCP which will allow Archway to at least recover the cost of providing continuity of care at the new property.

In addition to the growth in Gross Income, Operating Expense for the year was reduced by over £110k. This reduction in operating expense was partly achieved by staff reductions due to the decision to withdraw from the provision of Care at Home in 2025 and through streamlining of the management team (some additional staff had been recruited to support planned growth in Care at Home and additional Supported Living capacity, both of which had to be curtailed due to lack of available funds from AHSCP).

Although the year end deficit is not insignificant, ARCH is currently in a more stable financial position than it has been for the past 3 years. One vacancy at the company's Anest House Supported Living service was filled at year end and so will result in additional income for the year ahead. The company is also exploring other avenues to provide support to families affected by learning disability including the potential to collaborate further with the AHSCP and with other organisations.

Although ARCH does not currently have a Reserves Policy, at year end it had cash at bank of £738k and net current assets totalling £859k. ARCH provides administrative support to its parent company Archway Charitable Trust (ACT) and in return receives payment for the services provided. In addition, ACT has significant cash resources and can provided additional short term financial support if required. In the current year ACT increased the level of payment for administrative support and continued financial support in the areas of motor vehicle and general maintenance costs.

Although the year-end deficit has resulted in some further erosion of the company's cash resources, the Board is satisfied that actions taken during the year by the management team to expedite the filling of vacancies in both respite and permanent care services will help to protect remaining financial resources and ensure the continued viability of the charity. The Board receives regular reports on financial performance against its annual business plan and any resulting impact on cash flow and can react promptly to any adverse cash flow trend.

Principal risks and uncertainties

The Board considers one of the main risks facing the company is further erosion of its vital respite capacity. Over the year there was a significant increase in voids in its respite services. It will never be possible to achieve full occupancy in the respite services due to having to balance family schedules with available capacity so as a result in the planning process a level of voids is used that reflects past experience. Over the year a significant increase in voids occurred which may have been a result of reduced individual respite allocations. The management team have taken proactive action where possible to minimise further growth in voids, but should the level of voids continue to increase, this could have an impact on Archway's ability to maintain the two respite services.

As a parent-led organisation, Archway is acutely aware of the risks associated with abuse, both physical and mental, and has ensured that appropriate policies, procedures and training are in place to mitigate this risk. Archway also has in place a "whistle blowing" policy, which encourages staff to raise in confidence any concerns they might have over any aspect of the operations.

It remains a concern that current service rates have not kept pace with inflation. Although service rates paid by the local authority have been increased to offset the government mandated increase in the RLW, these increases have not included support for the impact of inflation on other costs. Dialogue is continuing with our funding partners on service rates. Archway continues to be appreciative of the support received from AHSCP.

The Board maintains a risk register which identifies and categorises key risks and also includes the actions taken to mitigate those risks. The Risk Register, which sets out the high-level risks, their evaluation and mitigation, is reviewed on a twice-yearly basis by the Board. In addition, the Company's Business Continuity and Crisis Communication Plan is regularly reviewed and updated as necessary

Future Developments

At a Board away day in 2019, Archway set out its strategic objectives to develop further its provision of permanent accommodation and alternative forms of respite to meet the expressed wishes and need of families. Since then, Archway has opened and now operates two further Supported Living (SL) services at Huxterstone Drive, Kingswells and Anest House, Cruickshank Court, Westhill. A further SL service was being developed at Rosemount Terrace but after investing in the development of the property to meet the needs of potential residents it transpired AHSCP did not have funding to support 4 additional SL tenants and so the property was released. The charity remains committed to adding further supported living services, however the timing of this will be highly dependent on the availability of funding support from local government and the availability of suitable properties.

At the present time with local government care funds under extreme pressure, the Board's main focus is on ensuring the sustainability of existing services. However, Archway will continue to work with the local authorities and other agencies to try to develop economically viable new services and approaches to support people with learning disabilities and their families.

Sustainability

In addition to taking practical steps wherever possible to reduce the company's carbon footprint such as monitoring energy usage across all properties and replacing incandescent light bulbs with LED bulbs, the organisation has undertaken initiatives aimed at improving the quality of life of service users including:

• Upgrading the sensory room at one of its respite facilities (the second is also scheduled to be upgraded)

• Continuing to provide service user visits to the company's allotment in Garthdee

• Continuing to work with Aberdeen Medical School to provide junior doctors with greater awareness of the challenges associated with treating individuals learning disabilities

• Where practical supporting service users in their efforts to find work placements

• Raising awareness of the challenges experienced by families with a learning-disabled family member through presentations to the business community and at fund raising events.

Cyber security is currently a real challenge for all organisations and in the current year Archway achieved Cyber Essentials certification and completed relevant training for all staff.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Many of the Directors, who are appointed by the Board of (ACT) and endorsed by the ACT members at the Annual General Meeting, are parents, carers or close relatives of service users of the Company. The recruitment of additional or replacement directors is dependent on the type of skills, experience and knowledge required at that point in time. This is determined by carrying out a skills' audit to ascertain any Board gaps that require to be filled. The skills' audit may also identify training needs for the current Directors.

Where a Board vacancy exists, the initial step will be to try to identify a suitable candidate from within ACT membership willing to serve on the Board. Where no suitable candidate can be found from within existing membership, existing Board members will be asked to suggest potential candidates from within local business or the wider local community. Where necessary vacancies may be advertised locally.

An induction program will be provided to new directors which will include access to the Board Handbook which includes much of the information the new director will require in his/her role as a director on the company.

The Board is responsible for implementing the strategic and policy decisions made by its parent company ACT and meets on a bi-monthly basis to conduct the business of the organisation.

The Chief Executive Officer is the most senior employee of the Company and reports to the Board. The CEO is responsible for developing the structure and procedures to implement the policy decisions taken by the Board and for all operational matters.

An annual pay review is conducted for staff. The baseline for care staff is the real living wage (RLW) since Archway is an accredited RLW employer. An increase in the RLW will trigger a review of rates for all care staff. The Board will annually review wages for all staff (including management) taking into account any change in the RLW, CPI inflation and affordability.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC098460 (Scotland)

Registered Charity number

SC014665

Registered office

71 Westburn Road

Aberdeen

AB25 2SH

Trustees

J R Sangster

K Simpson

A P Pilkington (appointed 12.11.25)

L Morrice

D R Stanley

Dr B Brock

E Gardyne

Dr A Milton

M Bowyer

B Ashcroft

L D Thomson

G Henry (appointed 24.6.25)

Officers (non-executive): E Gardyne (Chair), M Bowyer (Finance Officer), B Ashcroft (Company Secretary)

Chief Executive Officer: Iain McKenna

Auditors

Nuvo Audit Limited

Bankhead Drive

City South Office Park

Portlethen

AB12 4XX

Principle Bankers

Bank of Scotland, Lloyds Banking Group plc.

Registered Office: The Mound, Edinburgh, EH1 1YZ

Archway (Respite Care and Housing) Limited is a company limited by guarantee, established in 1986, with no share capital, and is the subsidiary of Archway Charitable Trust, which is its sole Member.

The principal activities of the Company, as detailed in the Articles of Association, are to provide respite care on a planned or emergency basis for people of all ages with a learning disability and to provide residential accommodation for adults with a learning disability in Scotland.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Archway (Respite Care and Housing) Limited 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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;

-	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 auditors, Nuvo Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 4 November 2026 and signed on the board's behalf by:

M Bowyer - Trustee

Opinion

We have audited the financial statements of Archway (Respite Care and Housing) Limited (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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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:

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks identified include:

- UK GAAP

- Companies Act 2006

- Corporation Tax legislation

- VAT legislation

- Health and Safety legislation

We gained an understanding of how the company is complying with these laws and regulations by:

- 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;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussions with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- reviewing the level of and reasoning behind the company's procurement of legal and professional services;

- performing audit procedures over the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by the management in their calculation of accounting estimates for potential management bias.

Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Alison Brown (Senior Statutory Auditor)

for and on behalf of Nuvo Audit Limited

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

Bankhead Drive

City South Office Park

Portlethen

AB12 4XX

4 November 2026

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

-

-

-

21,280

Charitable activities

4

Respite Care and Housing

4,036,887

-

4,036,887

3,744,913

Investment income

3

10,637

-

10,637

25,365

Total

4,047,524

-

4,047,524

3,791,558

EXPENDITURE ON

Charitable activities

5

Respite Care and Housing

4,124,247

2,605

4,126,852

4,235,869

Net gains/(losses) on investments

(49,999

)

-

(49,999

)

-

NET INCOME/(EXPENDITURE)

(126,722

)

(2,605

)

(129,327

)

(444,311

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,222,619

106,860

1,329,479

1,773,790

TOTAL FUNDS CARRIED FORWARD

1,095,897

104,255

1,200,152

1,329,479

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

236,762

104,255

341,017

404,709

CURRENT ASSETS

Debtors

13

257,920

-

257,920

377,441

Cash at bank

737,953

-

737,953

701,364

995,873

-

995,873

1,078,805

CREDITORS

Amounts falling due within one year

14

(136,738

)

-

(136,738

)

(154,035

)

NET CURRENT ASSETS

859,135

-

859,135

924,770

TOTAL ASSETS LESS CURRENT LIABILITIES

1,095,897

104,255

1,200,152

1,329,479

NET ASSETS

1,095,897

104,255

1,200,152

1,329,479

FUNDS

16

Unrestricted funds:

General fund

1,095,897

1,215,573

Revaluation reserve

-

7,046

1,095,897

1,222,619

Restricted funds:

Fundraising

104,255

106,860

TOTAL FUNDS

1,200,152

1,329,479

The financial statements were approved by the Board of Trustees and authorised for issue on 4 November 2026 and were signed on its behalf by:

M Bowyer - Trustee

Cash flows from operating activities

Cash generated from operations

1

44,143

(333,384

)

Net cash provided by/(used in) operating activities

44,143

(333,384

)

Cash flows from investing activities

Purchase of tangible fixed assets

(18,191

)

(25,972

)

Interest received

10,637

25,365

Net cash used in investing activities

(7,554

)

(607

)

Change in cash and cash equivalents in the reporting period

36,589

(333,991

)

Cash and cash equivalents at the beginning of the reporting period

701,364

1,035,355

Cash and cash equivalents at the end of the reporting period

737,953

701,364

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

2026

2025

£

£

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

(129,327

)

(444,311

)

Adjustments for:

Depreciation charges

31,639

34,255

Losses on investments

49,999

-

Loss on disposal of fixed assets

243

98

Interest received

(10,637

)

(25,365

)

Decrease in debtors

119,521

82,188

(Decrease)/increase in creditors

(17,295

)

19,751

Net cash provided by/(used in) operations

44,143

(333,384

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank

701,364

36,589

737,953

701,364

36,589

737,953

Total

701,364

36,589

737,953

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis despite the change in the way the services are now funded by the local authorities which, as stated in the narrative of the Trustees' report, remains dependent on Archway continuing to provide a cost-effective service which meets the needs of the service users. Even with the financial constraints which the local authorities face, there is a growing need for long-term accommodation for people with learning difficulties, so this side of Archway's business is going to continue, if not increase. In addition, although the local authorities will in all likelihood reduce the funding to families for respite care, this element of service will also continue. The Trustees are therefore confident that the going concern basis of preparing the financial statements is appropriate.

The presentation currency is sterling.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

Incoming resources

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised 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.

Resources expended

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.

Intangible fixed assets

Development costs are being written off evenly over a period of 5 years.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

2% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the statement of financial activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Operating lease payments are charged to the Statement of Financial Activities in the period to which they relate.

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.

2.	DONATIONS AND LEGACIES

2026

2025

£

£

Donations

-

21,280

3.	INVESTMENT INCOME

2026

2025

£

£

Deposit account interest

10,637

25,365

4.	INCOME FROM CHARITABLE ACTIVITIES

2026

2025

Activity

£

£

Board/Respite fees

Respite Care and Housing

1,315,170

1,385,260

Care at home fees

Respite Care and Housing

-

28,501

Local authority funding

Respite Care and Housing

2,634,917

2,283,215

Grant income

Respite Care and Housing

10,800

9,600

Admin recharge

Respite Care and Housing

76,000

37,497

Sundry income

Respite Care and Housing

-

840

4,036,887

3,744,913

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

2026

2025

£

£

Government funding

2,634,917

2,283,215

5.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 6)

Totals

£

£

£

Respite Care and Housing

4,096,023

30,829

4,126,852

6.	SUPPORT COSTS

Governance

costs

£

Respite Care and Housing

30,829

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

2026

2025

Respite

Care and

Total

Housing

activities

£

£

Bank charges

-

4,248

Auditors' remuneration

6,763

6,638

Accountancy fees

22,135

21,879

Legal and professional fees

1,931

3,840

30,829

36,605

7.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2026

2025

£

£

Auditors' remuneration

6,763

6,638

Depreciation - owned assets

31,640

34,182

Other operating leases

112,570

117,937

Deficit on disposal of fixed assets

243

98

Development costs amortisation

-

72

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2026 nor for the year ended 31 March 2025.

9.	STAFF COSTS

2026

2025

£

£

Wages and salaries

3,226,627

3,276,604

Social security costs

328,527

256,013

Other pension costs

54,328

54,337

3,609,482

3,586,954

The average monthly number of employees during the year was as follows:

2026

2025

Management & Administration

9

9

Operational

116

119

125

128

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2026

2025

£80,001 - £90,000

1

-

Agency staff are used on an as and when required basis for general cover. During the year the cost was £238,422 (2025: £319,882).

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,280

20,000

21,280

Charitable activities

Respite Care and Housing

3,744,913

-

3,744,913

Investment income

25,365

-

25,365

Total

3,771,558

20,000

3,791,558

EXPENDITURE ON

Charitable activities

Respite Care and Housing

4,209,542

26,327

4,235,869

NET INCOME/(EXPENDITURE)

(437,984

)

(6,327

)

(444,311

)

Transfers between funds

(2,895

)

2,895

-

Net movement in funds

(440,879

)

(3,432

)

(444,311

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,663,498

110,292

1,773,790

TOTAL FUNDS CARRIED FORWARD

1,222,619

106,860

1,329,479

11.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 April 2025 and 31 March 2026

4,313

AMORTISATION

At 1 April 2025 and 31 March 2026

4,313

NET BOOK VALUE

At 31 March 2026

-

At 31 March 2025

-