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← The Welsh Water Elan Trust

2025-03-31-accounts

Charity registration number 1001347 (England and Wales)

WELSH WATER ELAN TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

WELSH WATER ELAN TRUST

CONTENTS

Page
Trustee report 1 - 6
Statement of trustee responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 30

WELSH WATER ELAN TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustee Elan Valley Limited
Directors of Elan Valley Limited R Davies
D Evans
W Evans
I Joyce
A Leonard
R Morgan
H Scrase
R Vaughan
Land Agent C P M Harley
Charity number 1001347
Principal address Elan Estate Office
Elan Village
Rhayader
Powys
LD6 5HP
Auditor RCH Accountants Limited
Wellfield House
Temple Street
Llandrindod Wells
Powys
LD1 5HG
Bankers HSBC Bank PLC
Middleton Street
Llandrindod Wells
Powys
LD1 5EU
Unity Trust Bank
PO Box 793
Planetary Road
Willenhall
WV1 9DG

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The Directors of Elan Valley Limited - the sole corporate trustee of Welsh Water Elan Trust (colloquially known as the Elan Valley Trust) - present the annual report together with the financial statements of the charity for the year ended 31 March 2025.

Objectives and activities of the Elan Valley Trust

Charitable Objects

The Objects of the Trust as written into the Trust Deed are:

  1. The preservation maintenance and enhancement for the benefit of the public of the area of great natural beauty comprising of the Elan Valley and its natural aspect and features (and its animal and plant life);

  2. The facilitation and encouragement of access to and the study of the Elan Valley (and its animal and plant life) by the general public;

  3. The provision at the Elan Valley or such part of it as should be appropriate in the interests of social welfare and for the purpose of improving the conditions of life for the persons for whom the same are intended of facilities for physical recreation which shall be available to members of the public at large;

  4. The facilitation and encouragement of the use of the whole or part of the Elan Valley for charitable purposes.

The strategic objectives of the Trust, as set out in its strategic plan are:

Natural Resources; To manage our natural resources in ways that:

  1. Contribute positively to the quality (and quantity) of the water from the catchment.

  2. Foster a landscape rich in nature with:

  3. Habitats in good condition

  4. Flourishing native wildlife

  5. Designated sites in favourable condition.

  6. Are ambitious in mitigating the impacts of climate change.

  7. Value our historic landscape but allow change where this brings overall benefits.

  8. Foster opportunities to maintain a vibrant local community.

  9. Provide the charity with a viable income over the long term.

People & Community; Our objectives are to:

  1. Foster opportunities to maintain a vibrant local community.

  2. Enable people to access recreational opportunities that enhance health and wellbeing.

  3. Enable people to study, engage with, and value Elan’s heritage and nature.

  4. Foster the use of the estate for social welfare purposes.

  5. Manage access to the estate in ways that conserve its special qualities and support people to access the estate in a way that is safe and responsible.

Climate and sustainability; Our objectives are to:

  1. Be ambitious in setting targets for and delivering measures for mitigation and adaptation such as:

  2. reduction in fossil fuel use from our activities;

  3. carbon sequestration and storage from the land we manage;

  4. production of renewable energy where opportunities arise.

  5. measures to manage increased risks brought about by climate change

  6. Have regard to the impact on our heritage and nature when evaluating climate mitigation & adaptation proposals. 3. Foster opportunities and work with tenants and other partners to support climate goals and sustainability.

Activities

Strategies and activities to manage our natural resources:

For centuries the uplands of the Cambrian Mountains including the Elan Valley Estate lands have been open, unenclosed and grazed by hefted flocks of sheep and cattle. Maintaining this system of traditional high nature value farming is therefore a key part of Directors' strategy for managing for nature conservation and landscape. At the same time, Directors are aware of the need to take and promote more targeted actions where there is an identified need for nature conservation and landscape purposes. Since large areas of the Estate are designated under nature

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

conservation legislation and the landscape is of considerable significance, the support and advice of NRW is highly valued in this regard.

As part of this strategy, the Trust manage around 2800 hectares of land in-hand including some of the key sites such as the National Nature Reserve at Claerwen. In so doing the Trust is not only able to ensure appropriate management but can also ensure it has a full understanding of the opportunities and problems associated with managing land on the Estate. All of this land is managed under the Habitat Wales Scheme.

The rest of the land is let out to some 27 agricultural tenants. Through the terms of the tenancy agreements and through entry into Habitat Wales tenants are encouraged to use traditional high nature value farming systems.

The Trust’s recent Carbon Audit highlighted the importance of undertaking works to restore degraded peat bogs so that they can act as a carbon sink. Peat restoration works also provide significant benefits for nature and for water storage and flow regulation in the catchment. The Trust has therefore identified restoration of degraded peat bogs as a high priority and is developing plans, projects and strategic partnerships to facilitate this work in the future.

In recent years, the Elan Links National Lottery Heritage Fund programme, with the Elan Valley Trust as lead partner, has invested in the valley, protecting its heritage, offering new opportunities for local people and increased accessibility for visitors. Elan Links projects delivered a wide array of positive outcomes. Built around four central themes – Celebrating heritage, Enjoying Elan, Experience and education, and Enhancing nature and wildlife. This programme has been an important vehicle for undertaking targeted action for nature conservation in partnership with farming tenants as well as on in-hand land. The project delivery of this programme was concluded in the last financial year, and the project close down was largely finalised by September 2024.

As part of the legacy of the Elan Links scheme the Trust has taken forward key areas of work which either have a direct link to the project or are an evolution of some elements within it, these are:

Our current project delivery has focused upon:

Strategies and activities to promote the use of the Estate for access, recreation, education and other charitable purposes:

The Elan Valley Estate is highly valued for recreational, educational and other uses. It is the aim of the Trust to provide benefits and facilities for local people and also to increase the use of the Estate by visitors from further afield including those who benefit from provision of water from the catchment across parts of Wales and the West Midlands. This ‘audience’ has an intimate link with the Estate already and there is a real opportunity to use this link to develop educational, recreation, wellbeing and health provision / benefits.

In order to support access to the estate, the Trust maintains four cottages and a bunk house on a ‘self-catering accommodation’ basis, which in 2024 accommodated 2,416 guests. The Trust also maintain two mountain bothies which are freely available to users, and are well used by walkers and cyclists, among others. For people who work and / or wish to live locally the Trust maintains residential properties to let on the Estate. Cwm Clyd bunkhouse also serves as a base for visiting groups of volunteers who engage in a range of nature conservation projects.

To promote access and recreation more generally the Trust maintains Estate infrastructure such as bridges, roads and paths in good repair for users and provides in association with DCWW and with the help of a range of volunteers an annual programme of events and walks.

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

Other Initiatives for 2024-25:

Dark Skies. The Elan Valley Estate has for a number of years held the status of International Dark Sky Park. During 2024-25 the Trust hosted a number of successful stargazing events at a range of locations across the estate, including the ‘Cosmic Cwtch’ stargazing shelter and Cwm Clyd bunkhouse. In addition, a number of planetarium shows took place to bring the dark sky experience to a wider audience – in particular these have proved popular with schools across the region.

Electrification. A long-held ambition of the Trust has been to develop an alternative to the diesel generators that primarily power the properties on the wider estate – to this end there is a focus on installing renewable energy sources where possible. Discussions with key partners and stakeholders have opened up a number of avenues to further explore a wider agenda of electrification which are being progressed.

To maintain its properties in good repair and fit-for-purpose, a range of works were completed at properties across the estate to renovate and upgrade, in addition to performing routine maintenance tasks.

Public benefit

The Trust benefits the public by implementing the objects of the Trust Deed: promoting nature and landscape conservation on the Elan Valley Estate; while encouraging public access and recreation and use of the Estate for educational and charitable purposes.

During the 2024-25 period the Trust managed and encouraged management that benefited nature on the Estate; undertook works to secure the historic landscape; maintained paths and other infrastructure to enable enjoyment of the Estate by the public; promoted the use of the Estate by the public through a variety of means including an events programme and provision of accommodation; and supported the use of the Estate for educational and charitable purposes.

The Directors confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial review

Recent years have seen a reduction in funding available to the Trust as Wales transitions away from the European Union’s Common Agricultural Policy following Brexit. Of particular significance has been the replacement of Glastir with the new Habitat Wales Scheme. This change, reduced our income for 2024-25 significantly, while other costs have increased substantially due to inflationary pressures on wages, goods and services.

In order to manage this situation while ensuring that the core activities of the Trust are met and our strategic priorities are funded, Directors have implemented a number of measures:

  1. Reviewing our operational model. During 2024-25, Directors and senior staff reviewed our operations costcentre by cost-centre to identify efficiencies in the way we work and to map these against our strategic priorities. This work puts the Trust in a strong position to evaluate other changes to the funding landscape in 2025-26 and be able to respond appropriately to them.

  2. Taking the decision to lease Penbont House to a third party to operate as a café and bed & breakfast.

  3. Investing in developing income from grants. Directors are aware that grant funding is available to fund some of our strategic objectives, for example peatland restoration. We have therefore taken the decision to invest in staff capacity that can be used to draw down funds for these objectives. This has led to the successful implementation of some new funded programmes of work, including significant future funds to support peatland restoration, nature conservation and volunteer engagement.

  4. Strategic use of reserves. The Trust has a very long-term responsibility (now some 962 years) and in line with its Reserves Policy maintains reserves to secure the functions of the charity in the future. The Trust now faces considerable uncertainty about its future income as a result of the transition to the new Welsh farming schemes over the next few years. Directors have reviewed the income-generating capability of Trust investments and have concluded that it is now appropriate to draw income from investments to fund a proportion of our activities at least in the near term.

The total incoming resources from charitable activities in 2024-25 was in the order of £1,400k. Some £1,688k was spent on charitable activities, the balance allocated from reserves.

At year-end 2024-25 the Trust had unrestricted funds in the order of £15,200,890. Approximately 23% of these reserves

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

are held as tangible assets (principally in residential properties held locally), while the majority of the remainder is held in a diversified portfolio of pooled charitable funds through CCLA. A small portion of funds is held in a current account to meet short term needs.

Plans for future periods

Over the past 9 years much of the work of the Trust has been focused on developing and then delivering as lead partner the Elan Links programme. With this programme now concluded and new projects underway we will take the opportunity to continue to build on the legacy of Elan Links and seek to develop new partnerships and programmes of work to support our charitable objectives.

An area which we have focused upon in recent years is implementing our transition towards Net Zero beginning with an estate-wide carbon audit. Our focus remains on taking steps towards delivering this transition, testing strategies for peatland restoration and exploring the best solutions for upgrading the energy efficiency of our properties. This work will enable us to roll out these works more widely in a planned way and is now gathering momentum. Given that some uncertainties remain in how to achieve the Net Zero transition– such as the best way of managing our widespread Moliniadominant peatlands to secure their carbon store – we have been able to secure funding for a small-scale research project to collect data and build the evidence for the best approaches in this landscape.

Other areas we will develop during 2025-26 are:

Structure, governance and management

Nature of governing document and organisational structure

Welsh Water Elan Trust was established by a Trust Deed dated 13th October 1989 as part of the water privatisation process. The deed stipulated that Dŵr Cymru Welsh Water (DCWW) intended to establish ‘a Foundation to preserve for public benefit land in the Elan Valley and has for that purpose vested in the Trustees a leasehold interest in the property for a term of 999 years.’ The deed goes on to describe the charitable objects, role of Trustees and various powers of the Trustees to further the objects. The accompanying lease included all the agricultural land and buildings on the Estate. Excluded from the lease were the dams, the surfaces of the reservoirs, their operating paraphernalia, most of the forestry, the Visitor Centre, houses and land in Elan Village, and certain houses on the Elan Estate. The Trust is thus responsible for some 43,000 acres out of a total of 45,000 in accordance with the terms of the lease. Since 1989, a number of properties on the Estate and in Elan Village have been added to the lease or acquired as has the freehold of neighbouring Cwmdauddwr Common.

More recently, to resolve complexities around the recruitment of new Trustees in the face of liability issues with the original arrangement, the company Elan Valley Limited was established and registered with Companies House (No. 09001046) and on 2nd November 2018 the transfer to Elan Valley Limited as the sole corporate trustee took effect, at which point the six trustees of the legacy body retired and were appointed as Directors of Elan Valley Limited. As sole corporate trustee, Elan Valley Limited now has responsibility for fulfilling the charitable objectives of the Trust in accordance with the Trust Deed.

Directors of Elan Valley Limited are (in accordance with the objects and powers of the charity) responsible for setting the strategic direction and policies of Elan Valley Trust and for major operational and investment decisions. Using a system of delegations to staff that are formalised in respect of financial accountability and general governance, these and routine operational matters are then implemented by the senior staff.

Decisions in fulfilment of their role are principally taken by Directors at Elan Valley Limited board meetings held at least four times a year.

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

Executive / management functions of the charity are the responsibility of the Estate Manager, who is supported in this role by the Business Manager.

Elan Valley Limited does not in itself hold any assets or trade. The Charity Commission has therefore authorised that the charity’s funds may be used to purchase insurance for the trustee and its Directors (including a “Directors and Officer liability insurance policy”).

Recruitment and appointment of trustees

A number of organisations have the ability to nominate Directors to the Board of Elan Valley Limited. These are Dŵr Cymru Welsh Water; Powys County Council; Ceredigion County Council; Natural Resources Wales (two Directors) and Welsh Government / National Assembly for Wales.

In addition, as a consequence of the appointment of a sole corporate trustee there is provision for an ‘open’ recruitment process to ensure a wider and appropriate balance of skills is available to the Board. Directors appointed through this process sit for a five-year term in the first instance with provision to extend this for a further five years. Under this provision two directors are in their first five-year term.

There are likely to be vacancies arising because of retirement among the current group of Directors and as such we anticipate recruiting new Directors in the course of 2025-26.

Induction and training of trustees

Directors bring with them a wealth of professional expertise in matters relating to the operation and function of the charity and receive ongoing training and information provision in matters pertaining to the charity through a system of regular updates from relevant professional organisations, verbal updates and papers for information prepared by staff as well as site visits both on and off the Estate.

Relationships with related parties

Dŵr Cymru Welsh Water (DCWW):

While the terms of the lease clearly delineate the responsibilities of the charity in terms of management of the leasehold there are inevitably many areas of mutual policy, management and operational interest with DCWW. The charity therefore works closely with DCWW in matters relating to the operation of the Estate. This is facilitated by regular dayto-day contact between staff members of the two organisations and is further strengthened by the DCWW-appointed director, Roger Morgan. During the year constructive discussions have commenced with a view to developing a more structured partnership framework to enable the two organisations to work together for the benefit of the estate.

The national and European importance of the Estate for nature conservation and a range of ecosystem services means that another key relationship is that with Natural Resources Wales (NRW). Again, this relationship is maintained by regular contact between staff members of the two organisations, by the two Directors appointed by legacy bodies of NRW, Robert Vaughan and Dr Ieuan Joyce.

The charity as part of a wider network:

Since December 2017, the charity has been Lead Partner in the Elan Links Landscape Partnership Scheme awarded by the Heritage Lottery Fund and based principally within the Elan Valley Estate boundary. As this programme draws to a close the partnership has ambitions to build upon the legacy of that scheme by developing new programmes of shared work.

The charity is now in a strong position to build upon existing partnerships for the benefit of the estate and its long term future and have ensured that there is capacity to do so in future years.

Major risks and management of those risks

During the 2024-25 period, Directors continued to identify and manage risks using a RAG (Red-Amber-Green) risk register system. Reviewing the risk register is a standing item at Trust Board meetings and an annual review allows for a thorough review.

The Directors are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

WELSH WATER ELAN TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The law applicable to charities requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The directors are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the Directors of the charity on 29 January 2026 and signed on its behalf by:

Dr I Joyce, Director Elan Valley Limited

WELSH WATER ELAN TRUST

Statement of Trustee Responsibilities

For the Year Ended 31 March 2025

The trustee are responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources of the trust for that year.

In preparing these financial statements, the trustee are required to:

The trustee are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

Opinion

We have audited the financial statements of Welsh Water Elan Trust (the ‘trust’) for the year ended 31 March 2025 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 trust 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 trustee 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 trust’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 trustee 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 trustee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

Responsibilities of trustee

As explained more fully in the statement of trustee responsibilities, the trustee 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 trustee 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 trustee are responsible for assessing the trust’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 trustee either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

WELSH WATER ELAN TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF WELSH WATER ELAN TRUST

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

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

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.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RCH Accountants Limited

29 January 2026

Chartered Accountants Statutory Auditor Wellfield House Temple Street Llandrindod Wells Powys LD1 5HG

RCH Accountants Limited is eligible for appointment as auditor of the trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

WELSH WATER ELAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Current financial year
Unrestricted
Unrestricted
funds
funds
general
designated
2025
2025
Notes
£
£
Income and endowments from:
Charitable activities
3
1,155,012
-
Other trading activities
4
-
5,399
Investments
5
16,736
-
Other income
6
2,734
-
Total income
1,174,482
5,399
Expenditure on:
Charitable activities
7
1,417,365
6,450
Total expenditure
1,417,365
6,450
Net gains/(losses) on
investments
13
(163,081)
-
Net income/(expenditure)
(405,964)
(1,051)
Net movement in funds
10
(405,964)
(1,051)
Reconciliation of funds:
Fund balances at 1 April 2024
15,606,854
6,438
Fund balances at 31 March 2025
15,200,890
5,387		 Restricted
funds
2025
£
238,232
-
-
-
238,232
265,183
265,183
-
(26,951)
(26,951)
559,158
532,207		 Total
2025
£
1,393,244
5,399
16,736
2,734
1,418,113
1,688,998
1,688,998
(163,081)
(433,966)
(433,966)
16,172,450
15,738,484		 Total
2024
£
2,174,518
5,399
13,767
6,451
2,200,135
2,161,978
2,161,978
1,299,363
1,337,520
1,337,520
14,834,930
16,172,450

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

WELSH WATER ELAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Prior financial year
Unrestricted
Unrestricted
funds
funds
general
designated
2024
2024
Notes
£
£
Income and endowments from:
Charitable activities
3
1,509,988
-
Other trading activities
4
-
5,399
Investments
5
13,767
-
Other income
6
6,451
-
Total income
1,530,206
5,399
Expenditure on:
Charitable activities
7
1,433,491
6,500
Total expenditure
1,433,491
6,500
Net gains/(losses) on investments
13
1,299,363
-
Net income/(expenditure)
1,396,078
(1,101)
Transfers between funds
845
-
Net movement in funds
10
1,396,923
(1,101)
Reconciliation of funds:
Fund balances at 1 April 2023
14,209,931
7,539
Fund balances at 31 March 2024
15,606,854
6,438		 Restricted
funds
2024
£
664,530
-
-
-
664,530
721,987
721,987
-
(57,457)
(845)
(58,302)
617,460
559,158		 Total
2024
£
2,174,518
5,399
13,767
6,451
2,200,135
2,161,978
2,161,978
1,299,363
1,337,520
-
1,337,520
14,834,930
16,172,450

WELSH WATER ELAN TRUST

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
Fixed assets
Tangible assets
15
Investments
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
21
Unrestricted funds - designated
Unrestricted funds - general		 2025
£
£
4,020,349
11,029,555
15,049,904
66,690
292,855
547,840
907,385
(218,805)
688,580
15,738,484
532,207
5,387
15,200,890
15,738,484		 2024
£
£
4,184,006
11,180,481
15,364,487
73,728
636,649
320,667
1,031,044
(223,081)
807,963
16,172,450
559,158
6,438
15,606,854
16,172,450		 2024
£
£
4,184,006
11,180,481
15,364,487
73,728
636,649
320,667
1,031,044
(223,081)
807,963
16,172,450
559,158
6,438
15,606,854
16,172,450
15,364,487
807,963
16,172,450
559,158
6,438
15,606,854
16,172,450

The notes on pages 15 to 30 form part of these financial statements.

The financial statements were approved by the Trustee, and authorised for issue on 29 January 2026 and signed on their behalf by:

Dr I Joyce, Director, Elan Valley Limited

WELSH WATER ELAN TRUST

Statement of Cash Flows

For the Year Ended 31 March 2025

Notes
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
27
Investing activities
Purchase of tangible fixed assets
(53,460)
Proceeds from disposal of tangible fixed
assets
4,744
Purchase of investments
(112,153)
Proceeds from disposal of investments
100,000
Investment income received
16,736
Net cash (used in)/generated from investing activities
Net cash generated from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
2024
£
£
£
271,306
(217,648)
(129,487)
12,916
(9,987)
150,000
13,767
(44,133)
37,209
-
-
227,173
(180,439)
320,667
501,106
547,840
320,667

The notes on pages 15 to 30 form part of these financial statements.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Welsh Water Elan Trust is a trust, established by a trust deed dated 13 October 1989, amended on 27 January 1995 and 4 September 2018.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the trust's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustee have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustee continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustee in furtherance of their charitable objectives.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.

1.4 Income

Income is recognised when the trust 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 trust 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 trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets that individually cost £500.00 or more are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Leased sheep originally bred in house are valued at £10 per head. Purchased additions are valued at cost.

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:

Land and buildings 3% on cost Furniture and equipment 25% on reducing balance Leased Sheep Not depreciated

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.

1.7 Fixed asset investments

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.

1.8 Impairment of fixed assets

At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Sheep in stock which form part of the sheep farming operation are valued at £10 each.

1.10 Cash and cash equivalents

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.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

1.11 Financial instruments

The trust 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 trust's balance sheet when the trust 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

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the trust’s accounting policies, the trustee 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.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

3 Charitable activities

Income
Grant funding
Rental receipts
Analysis by fund
Unrestricted funds - general
Restricted funds
Grant funding
National Lottery Heritage Fund
Natur
Natural Resources Wales
Powys Association of Voluntary Organisations
UK Government - Energy Bill Support
Welsh Government - Access Broadband Cymru
Midlands Arts Centre
Welsh Government - Small Grants Efficiency Payment
The Royal Society for the Protection of Birds
Other		 Tenanted
Farms
2025
£
-
-
500,058
500,058
500,058
-
500,058
-
-
-
-
-
-
-
-
-
-
-		 Residential
Rent
2025
£
-
-
128,487
128,487
128,487
-
128,487
-
-
-
-
-
-
-
-
-
-
-		 Farming
2025
£
102,410
299,588
-
401,998
395,892
6,106
401,998
-
-
-
-
-
-
-
6,106
-
293,482
299,588		 Tourism
Estate
Management
Development
Projects
2025
2025
2025
£
£
£
127,559
1,950
66
-
-
233,126
-
-
-
127,559
1,950
233,192
127,559
1,950
1,066
-
-
232,126
127,559
1,950
233,192
-
-
103,936
-
-
-
-
-
103,190
-
-
25,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000
-
-
-
-
-
233,126		 Total
2025
£
231,985
532,714
628,545
1,393,244
1,155,012
238,232
1,393,244
103,936
-
103,190
25,000
-
-
-
6,106
1,000
293,482
532,714		 Total
2024
£
377,328
1,179,565
617,625
2,174,518
1,509,988
664,530
2,174,518
463,044
21,390
178,032
-
1,500
564
2,092
-
-
512,943
1,179,565

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

3 Charitable activities

For the year ended 31 March 2024

Income
Grant funding
Rental receipts
Analysis by fund
Unrestricted funds - general
Restricted funds
Grant funding
National Lottery Heritage Fund
Natur
Natural Resources Wales
UK Government - Energy Bill Support
Welsh Government - Access Broadband Cymru
Midlands Arts Centre
Other		 Tenanted
Farms
£
-
-
491,569
491,569
491,569
-
491,569
-
-
-
-
-
-
-
-		 Residential
Rent
£
-
-
126,056
126,056
126,056
-
126,056
-
-
-
-
-
-
-
-		 Farming
£
94,010
512,943
-
606,953
606,953
-
606,953
-
-
-
-
-
-
512,943
512,943		 Tourism
Estate
Management
Development
Projects
£
£
£
280,524
2,794
-
2,064
-
664,558
-
-
-
282,588
2,794
664,558
280,524
2,794
2,092
2,064
-
662,466
282,588
2,794
664,558
-
-
463,044
-
-
21,390
-
-
178,032
1,500
-
-
564
-
-
-
-
2,092
-
-
-
2,064
-
664,558		 Total
2024
£
377,328
1,179,565
617,625
2,174,518
1,509,988
664,530
2,174,518
463,044
21,390
178,032
1,500
564
2,092
512,943
1,179,565

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Unrestricted
funds funds
designated designated
2025 2024
£ £
Fundraising events 5,399 5,399
5 Income from investments
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 16,736 13,767
6 Other income
Unrestricted Unrestricted
funds funds
general general
2025 2024
£ £
Net gain on disposal of tangible fixed assets 2,734 6,451

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

7 Expenditure on charitable activities

Direct costs
Staff costs
Depreciation and impairment
Direct costs
Grant funding of activities (see note 8)
Share of support and governance costs (see note 9)
Support
Governance
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds		 Tenanted
Farms
Residential
Rent
2025
2025
£
£
332
751
33,998
51,605
94,665
94,361
128,995
146,717
-
-
76,894
70,582
15,349
10,808
221,238
228,107
219,833
228,107
-
-
1,405
-
221,238
228,107		 Farming
2025
£
128,905
26,420
147,430
302,755
-
63,361
20,511
386,627
382,988
-
3,639
386,627		 Tourism
Estate
Management
Development
Projects
2025
2025
2025
£
£
£
48,805
38,035
75,074
53,695
32,503
16,461
96,316
41,447
323,766
198,816
111,985
415,301
-
6,450
-
60,792
41,463
-
8,505
7,281
2,433
268,113
167,179
417,734
258,607
153,964
173,866
-
6,450
-
9,506
6,765
243,868
268,113
167,179
417,734		 Total
2025
£
291,902
214,682
797,985
1,304,569
6,450
313,092
64,887
1,688,998
1,417,365
6,450
265,183
1,688,998

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

7 Expenditure on charitable activities

Previous year:
Direct costs
Staff costs
Depreciation and impairment
Direct costs
Grant funding of activities (see note 8)
Share of support and governance costs (see note 9)
Support
Governance
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds		 Tenanted
Farms
Residential
Rent
2024
2024
£
£
4,241
144
33,991
49,546
43,709
55,302
81,941
104,992
-
-
63,583
43,254
12,154
8,557
157,678
156,803
156,273
156,803
-
-
1,405
-
157,678
156,803		 Farming
2024
£
110,829
22,562
210,482
343,873
-
112,349
16,238
472,460
466,973
-
5,487
472,460		 Tourism
Estate
Management
Development
Projects
2024
2024
2024
£
£
£
134,762
24,413
163,495
56,058
38,842
17,140
205,046
55,395
567,160
395,866
118,650
747,795
-
6,500
-
40,598
40,962
10,241
6,734
5,765
1,926
443,198
171,877
759,962
424,857
148,905
79,680
-
6,500
-
18,341
16,472
680,282
443,198
171,877
759,962		 Total
2024
£
437,884
218,139
1,137,094
1,793,117
6,500
310,987
51,374
2,161,978
1,433,491
6,500
721,987
2,161,978

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

8 Grants payable

The trustees have allocated the income received from airwaves rental for the use of the estate to a fund controlled by a joint committee of Trustees and tenants. This fund is used in the support of local organisations having appropriate charitable or relevant public purposes. Sixteen payments (2024 Fifteen) were made in support of these local organisations during the year in amounts ranging from £150 to £1000.

9 Support costs allocated to activities

Depreciation
Staff costs
Offiec costs
Subscriptions
Motor costs
Governance costs
Analysed between:
Tenanted Farms
Residential Rent
Farming
Tourism
Estate Management
Development Projects		 2025
£
423
227,924
78,548
4,267
1,930
64,887
377,979
92,243
81,390
83,872
69,297
48,744
2,433
377,979		 2024
£
485
239,923
65,984
4,404
191
51,374
362,361
75,737
51,811
128,587
47,332
46,727
12,167
362,361

Governance costs includes payments to the auditors of £8,320 (2024- £8,000) for audit fees.

10 Net movement in funds 2025 2024
£ £
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements 8,320 8,000
Depreciation of owned tangible fixed assets 215,104 218,624
Profit on disposal of tangible fixed assets (2,734) (6,451)

11 Trustee

None of the trustee (or any persons connected with them) received any remuneration during the year, but six of them were reimbursed a total of £4,868 in expenses (2024- five were reimbursed a total of £6,549).

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

12 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2025 2024
Number Number
Farming 4 4
General maintenance 3 3
Projects 7 8
Administration 4 4
Management 2 2
Visitor accommodation 2 10
Total 22 31
Employment costs 2025 2024
£ £
Wages and salaries 468,346 610,674
Social security costs 37,796 48,338
Other pension costs 30,374 32,797
536,516 691,809
The number of employees whose annual remuneration was more than £60,000
is as follows:
2025 2024
Number Number
60,000-70,000 - 1
Gains and losses on investments
Unrestricted Unrestricted
funds funds
2025 2024
Gains/(losses) arising on: £ £
Revaluation of investments (162,295) 1,296,808
Sale of investments (786) 2,555
(163,081) 1,299,363

13 Gains and losses on investments

14 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

15
Tangible fixed assets
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation and impairment
At 1 April 2024
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024		 Land and
buildings
Furniture and
equipment
Leased Sheep
£
£
£
5,774,245
560,587
108,000
8,750
43,750
960
-
(10,500)
-
5,782,995
593,837
108,960
1,908,937
349,886
-
154,811
60,293
-
-
(8,484)
-
2,063,748
401,695
-
3,719,247
192,142
108,960
3,865,305
210,701
108,000		 Total
£
6,442,832
53,460
(10,500)
6,485,792
2,258,823
215,104
(8,484)
2,465,443
4,020,349
4,184,006

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

16
Fixed asset investments
Cost or valuation
At 1 April 2024
Additions
Valuation changes
Disposals
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024
17
Stocks
Stocks
18
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
19
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
20
Trade creditors
Accruals		 Listed
investments
£
11,180,481
112,153
(162,293)
(100,786)
11,029,555
11,029,555
11,180,481
2025
2024
£
£
66,690
73,728
2025
2024
£
£
246,453
594,363
46,402
42,286
292,855
636,649
2025
2024
£
£
29,179
56,947
21,058
28,862
99,926
85,757
68,642
51,515
218,805
223,081

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

20
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2024
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2025		 2025
£
21,058
2025
£
21,058
28,862
(20,137)
12,333
21,058		 2024
£
28,862
2024
£
28,862
32,337
(24,262)
20,787
28,862

Deferred income is in relation to rental deposits and deposits paid in advance in relation to holiday let accommodation.

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April 2024 Incoming Resources Transfers At 31 March
resources expended 2025
£ £ £ £ £
Capital grants 185,929 - (14,052) - 171,877
Nature Fund 22,641 - (1,493) - 21,148
CADW 92,073 - (3,570) - 88,503
Elan Links 258,455 - (17,436) - 241,019
Natural Resources Wales 60 103,190 (103,190) - 60
Small Grants Efficiency - 6,106 (556) - 5,550
Peatland and Species - 103,936 (103,936) - -
PAVO - 25,000 (20,950) - 4,050
559,158 238,232 (265,183) - 532,207

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

21 Restricted funds

Previous year: At 1 April 2023 Incoming Resources Transfers At 31 March
resources expended 2024
£ £ £ £ £
Capital grants 199,981 - (14,052) - 185,929
Nature Fund 24,351 - (1,710) - 22,641
CADW 95,644 - (3,571) - 92,073
Elan Links 297,484 484,434 (522,618) (845) 258,455
UK Government - Energy Bill
Support - 1,500 (1,500) - -
Welsh Government - Access
Broadband Cymru - 564 (564) - -
Natural Resources Wales - 178,032 (177,972) - 60
617,460 664,530 (721,987) (845) 559,158

Capital Grants represent funds received in repect of the restoration of properties.

Nature Fund represents funds received from the Welsh Assembly Government in respect of this project.

CADW Grant represents funds received in respect of the work being carried out at Cwm Elan Mines.

Elan Links is a partnership project which brings together a range of local and strategic partners to secure the heritage of the Elan Valley and create future opportunities under four key themes:

The managing partners are:

Natural Resources Wales represents funds received in respect of peat restoration work

Small Grants Efficiency represents funds received from Welsh Government towards the cost of fixed assets related to farming operations.

Peatland and Species represents funds received from National Lottery Heritage funds in respect of peat restoration and species protection.

PAVO represents funds received from Powys Association of Voluntary Organisations in respect of the cost of a feasibility study.

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

22 Unrestricted funds - designated

These are unrestricted funds which are material to the trust's activities.

At 1 April 2024
£
6,438
Previous year:
At 1 April 2023
£
7,539		 Incoming
resources
£
5,399
Incoming
resources
£
5,399		 Resources
expended
At 31 March
2025
£
£
(6,450)
5,387
Resources
expended
At 31 March
2024
£
£
(6,500)
6,438

The trustees have allocated the income received from Airwaves rental for the use of the estate to a fund controlled by a joint committee of Trustees and tenants. This fund is used in the support of local organisations having appropriate charitable or relevant public purposes.

23 Analysis of net assets between funds

Unrestricted
Unrestricted
funds
funds
general
designated
2025
2025
£
£
At 31 March 2025:
Tangible assets
3,498,252
-
Investments
11,029,555
-
Current assets/(liabilities)
673,083
5,387
15,200,890
5,387
Unrestricted
Unrestricted
funds
funds
general
designated
2024
2024
£
£
At 31 March 2024:
Tangible assets
3,630,908
-
Investments
11,180,481
-
Current assets/(liabilities)
795,465
6,438
15,606,854
6,438		 Restricted
funds
2025
£
522,097
-
10,110
532,207
Restricted
funds
2024
£
553,098
-
6,060
559,158		 Total
2025
£
4,020,349
11,029,555
688,580
15,738,484
Total
2024
£
4,184,006
11,180,481
807,963
16,172,450

WELSH WATER ELAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

24
Capital commitments
Amounts contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
25
Related party transactions
There were no disclosable related party transactions during the year (2024 - none).
26
Analysis of changes in net funds
The trust had no material debt during the year.
27
Cash generated from/(absorbed by) operations
(Deficit)/surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Loss/(gain) on disposal of investments
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
(Decrease) in deferred income
Cash generated from/(absorbed by) operations		 2025
2024
£
£
-
9,950
2025
2024
£
£
(433,966)
1,337,520
(16,736)
(13,767)
(2,734)
(6,451)
786
(2,555)
162,295
(1,296,808)
215,105
218,624
7,038
3,859
343,794
(362,101)
3,528
(92,494)
(7,804)
(3,475)
271,306
(217,648)