DOcusn Envelope 10: 3CAF8F23-2944-4BOO-81F1-829EEF27B64C GREENSLEEVES HOMES TRUST ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 WnN *AD91fvJCCO• 2010812024 COMPANIES HOUSE NMIM A10
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Docusign Envelope ID.. 3CAF8F2&29444BOO-81 F1-829EEF27B64C GREENSLEEVES HOMES TRUST IA Company limited by Guarantee not having a sharo capital - Company Registered Number 032601681 (Charity Registration Number 10604781 ANNUAL REPORT AND CONSOLIOATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024
Docuslgn Envelope ID.. 3CAF8F2&29444BOO-81FI429EEF27B64C GREENSLEEVES HOMES TRUST ANNUAL REPORT YEAR ENDED 31 MARCH 2024 CONTENTS LEGAL AND ADMINISTRATIVE DETAILS REPORT OF THE BOARD OF TRUSTEES INCLUDING THE STRATEGIC REPORT STATEMENT OF TRUSTEES. RESPONSIBILITIES 14 INDEPENDENT AUDITOR'S REPORT 15 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 19 CONSOLIDATED BALANCE SHEET 20 CONSOLIDATED CASH FLOW STATEMENT 21 NOTES TO THE FINANCIAL STATEMENTS 22
Docusign Envelope10-. 3CAF8F23-29444800.81F1-829EEF27B64C GREENSLEEVES HOMES TRUST LEGAL AND ADMINISTRATIVE DETAILS {A Company limited by Guarantee not having a share capital - Company Registerod Number 03260168 (Charity Registration Numbor 1060478) TRUSTEES Mr D Bryan Mr A Chrislie (appointed 16 May 2024) Ms K Davies Mr M Foster Mr D P Kelly OBE Mr M Lowe lappoinled 16 May 2024> Ms A Morris (Appointed 16 November 2023> Ms D Pounds (Chair) Mr M Shaha Mr P C G Spence Ms M Townson Ms J Tombs (Resigned 30 October 2023) Ms A Willimott {Appointed 16 November 2023) COMPANY SECRETARY MST Omoma CHIEF EXECUTIVE Mr P Newman KEY MANAGEMENT PERSONNEL Ms J Clarges- Direclor of Quality and Compliance Mr C Doherty- Chief Financial Officer Ms S King- Director of Business Developmenl Ms T Omoma - Director of Human Resources and Company Secretariat Ms T Nelson - Divisional Direclor- North Ms M Whittingham- Divisional Director- Soulh Ms S Weller- Director of Digital Transformation REGISTERED OFFICE 138 Cheapside London EC2V 68J STATUTORY AUDTOR INTERNAL AUDITOR Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG RSM UK Suite A, Th Floor East Wesl Building 2 Tollhouse Hill Nollingham NG1 5FS BANKERS Lloyds Bank PIC 2nd Floor 39 Threadn8edle Street London EC2R 8AU SOLICITORS Wilsons Solicitors LLP 4 Lincoln's Inn Fields London WC2A 3 DAC Beachcroft LLP Portwall Place Portwall Lane Bristol BS16NA
Docusign Envelope10.' 3CAF8F2&294448Ot)-81 F1-829EEF27B64C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES IINCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 The Trustees, who are the directors for the purposes of the Companies Act 2006, present the report and financial slatemenls of Greensleeves Homes Trust ('Ihe Trusl"I "the Charity.) for the year ended 31 March 2024. The Trustees ¢onfiTm that the annual report and financial statements comply with the Charities Act 2011. the Companies Acl 2006, the Memorandum and Artides of Associalion and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charilies preparing their accounts in accordance wilh the Finanual Reporting Standard applicable in the UK and Republic or Ireland (FRS 102) {effective 1 January 2019). Strateglc Report Year Ended 31 March 2024 Aims Greensleeves Homes Trust is a charitable organisation providing caie and accommodation for older people, primarily by operating residential and nursing homes in the South and East of England. Our mission is to encourage our residents to thrive as individuals, and our employees lo practice as caring professionals. Our values of Respect. Openness, and Responsibilily support Us in achieving this. Greensleeves Homes Trust aims lo expand ils charitable impact by increasing the number of beneficiaries receiving our high-quality care and support servi¢es. Charitable Objectives and Activities The objects of Greensleeves Homes Trust a5 defined by its Memorandum and Articles ofAssocialion are.. The relief of persons who are in need by reason of age, ill-health or disability by the provision, or assistance in the provislon, of accommodation and associated facilities, seNices and amenitie5 or by such other means as may be charitable. such other purposes for the benefil of the community as shall be exclusively charitable. in each case for Ihe public benefiL The Trustees have had regard to the Charity Commission's guidance on public benefit when rèviewing the charity's aims and objectives and planning future aclivilies lo meet these. Greensleeves Homes Trust meets these objectives through the provision of residential. dementia and nursing Care, in care homes across the South and East of England. Care is offered uniformly, regardless of resident background or financial siluation. We operate a Home for Life policy, which commils to continuing to provide care for private residents who through financial deplelion become eligible for Local Aulhorrty funding. This offers reassurance lo residents and relatives that a home wilh Greensleeves is a home for life for as long as we can continue to safely meet their needs. The Trust's slrategic goals are.. ualit First.. Embed continuous quality impiovemenl across our homes to deliver ever-improving person-cenlred care and safe working condilions. wered Peo le.. Retain over 809/0 of our colleagues through an inclusive culture, inspiring learning and development programmes and promoling a gold standard employee experience. Sustainable Develo ment.. Operate more and better homes. where people love to live and worf(. expanding our charitable impact in a viable, green and affordable manner. The Trust sets short term and long-leim aims to support the furtherance of ils objectives and strategic goals. Short-term aims focus on the enhancement of current services, and include: Development of activities provisions to meet the needs of all residents.
DO$19n Erwelope 10.. 3CAF8F23-29444800-81F1429EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 Recruitment. retention and development of high-quality care and support colleagues. In¢asIng the proportion of homes with Care Quality Commission ralings of Good or Outstanding. Implemenlalion of new technological solutions for increased efficiency and accuracy. Embedding the culture of the Trust into new homes and growing these to capacity. Promotin9 our Home for Life policy, which supports residenls who experience financial depletion whilst in our care. Long term aims include: Progression of plans for new-build homes al Newport Pagnell, Wesffield and Rye. Review of financlng arrangements to support fulure development activity and acquisitions. The Trust measures success against ils objectives through various Key Perfomiance Indicators, including CQC ratings, carehome.co.uk ratings, colleague lurnover, occupancy, CQC regislered beds. and lunded resident percentage. As at 31 March 2024, we had facilities across the group to care for up to 1,275 residents acioss 28 homes, an increase of 23 beds and one home compared lo the prior year. In furtherance of our chantable objects'ves, during the year the charity increased the number of residents il can care for through the acquisition of a 28-bed care home. Broadacres. in Norfolk, which joined the group in February 2024. Mount Ephraim House also reopened as a 57-bed home, following exlensive redevelopment. A further t0 bedrooms were added lo Glebelands, our nursing home in Wokingham, Berkshire. Following an operational review, Ihe decision was taken to transfer our operations at Sl Cross Grange in Winchester to a local nol-for-profil care provider and lo close the home. This resulted in a reduction in our Capacity by 64 residents. Our services continue lo be highly rated by iesidents. family and friends, wilh a Carehome.co.uk group score of 9.6 out of 10 and 22 of our homes achieving this score or greater. Any surpluses generated by the Trusfs activities are reinvested into Ihe maintenance and improvement of our homes and services, including supporting our Home for Life policy. A¢hi•vomont8 and Perfomiance The year lo March 2024 was preceded by a challenging year for the Trust. which operated in difficult economic ondilions and experienced issues with occupancy and agency usage al some homes. Despite resolving several of these issues during the year, they continued lo persist to some extent until March 2024. with an associated impact on financial perforrnan. ccu levels.. Occupancy levels increased over the year, avera9ing 86.50A on a phased basis, and at Ihe end of the year. we cared for 1.056 residents across our services. Sixteen of our homes finished the year with occupancy levels over 900/0, having retumed to pre-pandemic levels. A small number of homes. however. achieved slower than budgeled recovery from operational issues. Collea ue retention and a enc workers.. We are proud Ihal our colleague retention remains strong. Our lurnover as al year end as 20.9°/ts which is significantty below the average turnover across the care sector of 28.30/0 (Skills for Care report published in October 2023}. We have implemented a stralegy io help reduce the need for agency workers. Where agency is being used, we seek lo ensure these are regular agency workers who will be familiar with our residents and the work environment in our care homes.
Oocu5ign Envelope ID.. 3CAF8F2&29444800-81 F1-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 We achieved Living Wage accredrlalion which means Greensleeves Care has official status as a Living Wage employer with the mark of responsible pay. We will endeavour to ensure we maintain this reCOgnon annually to support our drive to be an employer ofchoice. Our Quality First Initiative has been extended durin9 the year. This scheme provides financial incentives for colleagues lo take on additional shifts beyond their contracted hours. aiming lo improve the consistency of staffing for residents and reduGe reliance and spending on agency workers. Uptake has been mixed across the estate, wrth several homes using little or no agency workers during the year. However, local recruilmenl market conditions have proven challenging in a few homes, resulting in heavier relian on agency workers lo maintain safe Seices. Over 8 third (370A) of expenditure on agency workers during the year arose from just three homes. To address staffing Challenges, we are investing in recruilmenl capacity al a home level to support efficient application processing. We are also implementing new lime and attendance software to make available shifts visible to colleagues via an app, which should improve shift uptake. During the year, lo reduce the financial impact of agency workers requirements. we have implemented an agency booking tool, which helps lo ensure value for money by using selecl suppliers at pre.agreed rates. Early indications during 2024125 show a marked reduction in agency usage and hourly cost. C ralin Al the time of writing, 20 of our homes have a CQC rating of Good, are rated Oulstanding, four are currently rated Requires Improvement, and tsvo have yet lo be inspected. We measure our reputational performance by referencing ratings on external websites such as ¢arehom8.co.uk and through the receipt of induslry awards. At the lime of writing, the Trust had a group score of 9.6 out of 10 on carehome.co.uk, with 22 of our homes individually achieving this rating or higher. During the year. Greensleeves ca has achieved a 'Top 20 Large Care Home Group, Award from leading online care home directory, Carehome.co.uk, for the seventh year running. Alon9 wilh its inclusion in the lop large carè home group list, Greensleeves Care is also celebrating the individual success of one of its homes in the awards, Torkington House in Aclon, whiGh was named in the Top 20 Care Homes in London. The annual Carehome.co.uk Awards recognise care home groups according to their ranking on the platform, which is based on impartial, independent reviews from care horne residents, their families and friends. Mount E hraim House.. The renovation of Mount Ephraim House was completed during tha year following extensive delays, and we welcomed our first residents in June 2023. The home is filling faster than budgeled despile some extended snagging works. now resolved, Ihal restricted admissions in the later parl of the year. Broadacres. In February 2024, the Trust acquired Broadacres Care Home through a purchase of 1000/0 of the share capilal of Broadacres Holdings Limited {11161346). Broadacfes Holdings Limited, in turn, is the sole owner of Broadacres Care Home Limiled (09185042) and Broadacres Care Home Trading Limited 109185314). Broadacres is an established 28-bed residential care home in Barton Turf, Norfolk. The results of Broadacres Care Home for the period from acquisrtion to 31 March 2024 are consolidated Into these accounts. Work is ongoing to support Ihe home as it embeds into the Greensleeves culture. It is planned that the care home's activity will be hived up into Greensleeves Homes Trust during the year to 31 March 2025, and the subsidiary ompanies will be dissolved after that.
DO$19n Envelope ID: 3CAF8F2>29444800-81 F1429EEF27B64C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 New ortPa nell.. In February 2024, the Trust purchased a plot of land in Newport Pagnell, complete with planning permission for a 60-bed care home, which will serve lo reprovision the existing home at Tickford Abbey and add additional capacity to the Trust. The oplimal financing strategy for the conslructson of the home is under review. Sl Cross Grange closed in September 2023 following the transfer of the home's operations lo a new facility operated by a local, not-for-profit operator. The sale of Ihe sile was also completed in September 2023. Croxley House. a dosed home in Cioxley Green, Hertfordshire, was expected to sell during the year. Unfortunately, the sale was mel with delays, and the property removed from the market. The intention is lo remaTkel the site for sale in the year to March 2025. Henley House was sold on a sale and leaseback arrangemenl in January 2024 for £14.8m. Part of the proeeeds of this transaction wefe used to purchase Broadacres care home and the development site at Newport Pa9nell. ollea ue well-bein We continue lo progress our Wellbeing strategy and see good levels of engagement with our Thrive app (a mental wellbeing app>. lIst all user data is confidential, anonymous and aggregated, we believe usage of the app is having a posttive impact on sickness absenteeism lour average sickness absence rale as al year end was 3.50/0 which is below the average for the sector 0160/0). During the year, we also delivered in person mental wellbeing dropin sessions lo discuss topics such as stres5 awareness. anxiety. managing mental health in the Workplace "I learn something new every day. I've made such great relationships. ' Investment in Financial Wellbeing is of equal importance and in addilion lo our long-standing Employee Assistance Program, over the last year, we have focused on promotin9 our financial wellbeing hub which includes planning for retirement. Employee 'Temperature Check, suNeys are routinely conducted al homes lo measure the current level of engagement and we see results that indicate Greensleeves Care is a great place lo work. The Trust aims lo support approximately 250/0 of our residents, funded through Local Authorrties or the NHS. Io support our charitable aims. In the year to 31 March 2024, 24.30/0 of our residents were funded in this way. As an organisation, we are seeing 8n inrJease in the number of private residents whose financial reseNes have depleted and are transitioning to Local Authority or NHS funding under our Home for Life policy. We continue to manage admissions across the Trust lo ensure the mix of privalely and publicly funded residents remains al our largel level. stakeholder Engagement Feedback from our residents and relatives provides some of the best measures of performance against our aim of providing high-quality care and helps us shape the work that we do to further our charitable purpose. We receive reviews directly and via platforms suth as carehome.co.uk. Some comment highlights from this year include.. A W (Son of Resident).. The experience myself and my family have had over the past few years is nothing but brilliant. The staff are great and the management just the same. G D (Son of Resident): You looked after my mum for her last 14 months when we couldn't. You treated her with respect, dignity and love and Irealed her as one of your family and we as a family will forever be in your debl. Thank you.
Docu$ign Envelope ID.. 3CAF8F2&29444800-81 F1-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES {INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 J N (Residenl): l am very happy and settled. The care provided is excellent and from living on my own for a long time I feel really happy and at home. "Choosing Greensleeves for my nan s care has been one of the best decisions we've made as a family. ' L S (Respite Resident).. l arrived mere shadow of myself and left feeling almost normal. S G (Son of Resident).. l am Ihrilled lo share my heartfett appreciation for the incredible care now being provided lo my mum. Callum (Grandson of Residenll.. Choosing Greensleeves for my nan's care has been one of the best decisions wé've made as a family. Deborah {Sister of Residenl) my slstgr's qualily of life has improved beyond our expectations. Our homes are fortunate lo benefit from the support of volunteers who give their time freely to assist with activities and fundraising events or offer friendly conversation and companionship to residenls. The Trustees wish to thank all those volunteers who helped us deliver a valued and essential service and positively contribute lo our residents, lives. Flnanclal Review The financial stalemenls for the year ended 31 Mar¢h 2024 comply with Financial Reporting Standard 102 IFRS 102), 'Ihe Financial Reporting Standard in the UK and Republic of Ireland,, and the Charities Statement of Recommended Practice {Charilies SORP (FRS102>). The primary source of income during the year to 31 March 2024 was resident care fees, relating to our core activity of providing residential, dementia and nursing care. During the year, the group generated Earnings before Interest, Tax, Depreciation and Amortisation (EBITDAI of £2.3m, and an underlying nel surplus of £2.4m despite cosl inflation and stubbornly high agency fees. Once adjustments have been made for the impact of new developments and a number of one-off items described below. this translates into a nel deficit of £4.5m for the year after depreciation. Dev810 The speed of admitting new residents determines the negative impact on net earnings of a new home over the short term. The Trust defines Ihis as the reduction in surpluses arising from a home during Ihe growth phase. Due lo initially low resident numbers and the need lo recruit staff befor8 admissions, new homes represent an initial drag on resources, typically taking or more years to reach total operating capacity. The slower Ihe increase in resident numbers. the more expensive this phase becomes. Comparing a home's expected surplus from malure operalion with actual results idenlifies the financial impact on the organisation. Durin9 the year, the Trust had the following homes in the grovAh phase.. Development Impact £'ooo 2,404 1,384 1.130 4,918 Buckler's Lodge The Meadowcroft Mounl Ephraim House Total Development Impact
Doeusign Envelope10.' 3CAF8F23-29444800-81F1-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 This development impact represents the total additional surplus Ihal the Trusvs current estate can be expected to generate once fulty operational. The underlying performance of the estate. the net loss per the accounls adjusted lor non-rouline items and development impact. is shown below, giving a clearer picture of the underlying performance of the Trust. 2023124 £'ooo (4,511) 2022123 £'ooo (15.933) 7,418 (8,515) 4.860 4,863 1,208 3,410 3,381 7,999 Net {loss) per accounts Add back asset revaluation Net 11088) before asset revaluatlon Non-rouline items detailed below Development Impa¢t Undèrlying surplus Depreciation Loan interest Underlying EBITDA {4,511) 2,001 4,918 2,408 3,448 3,378 9,234 Non-rouline items The results have been adversely affecled by one•off items relating lo four homes, together with one home closure and one sale.. Viera Gray House.. During thé prior year. Viera Gray House experienced some operating difficulties, resulting in a temporary curtailment of the admission of new residents. which persisted into the year to 31 March 2024, resulting in a further drop in occupancy levels. These issues were resolved during the year, and a new manager was recruited. We have, therefore, been able to carefully admit new residents into the home in the laller part of the year. and occupancy has continued to recover post year-end. The budgetary impact of reduced occupancy levels durin9 the year was £882k. St Cross Grange.. The decision was made to Close St Cross Grange, our home in Wnchester, during the prior year, and closure was anlicipaled in October 2022. An arrangement was made for all colleagues and residents lo transfer lo a nearby new-build facility opened by another charitable provider. Completion was delayed so Ihe transfer eventually took place in Seplember 2023. This period of uncertainty and costs of delayed building works resulted in the home generating an unbudgeled loss of£206k during the year up to the point of dosure. Clarendon Lodge.. This home is the replacement home for Croxley House. Due lo operational issues. we experienced delays to resident admissions until January 2024. This was longer than originally budgeted for. These issues are n¢)w resolved, a robu51 new management team is in place, and occupancy levels are beglnning to recover. The financial impad of these delays equated to £722k during the year. Croxley House.. The sale of Croxley House was expected lo be compleled in March 2022, bul the sale was met wilh delays and sale has not been achieved. For insurance purposes, the Trust musl maintain 24-hour on-site secuvity al the building, which cost £191k during the year. Balance Sheet The balance sheet as of 31 March 2024 shows nel current assets of £5,997k {2023. £842k). The year-end cash balance was £8,223k (2023'..£2,281k). an increase arising from the sales of Henley House and St Cross Grange. offset by purchases including the Broadacres group and the site at Newport Pagnell.
Docuslgn Envelope ID: 3CAF8F2>2944480fv81 F1-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 Post Balance heet Events There have been no material posl-balance sheet events. Reserves The ReseNes Policy is considered annually, and the Board of Trustees review the Trust's reserve levels throughout the year in light of its planned aclivilies, budget and cashflow lorecasts. The Board believe it necessary lo hold adequate reseNes lo ensure that future standards ol service and accommodation offered lo residents Can be maintained an¢J improved. as well as lo fulfil any committed acquisition and development activity. As such, the Twst should have sufficient reserves available lo fund revenue costs in the event of any unexpected problems. As the Trust's operational siles are widespread, such problems are expected to be isolated lo a particular sile. Therefore, the reserves provision for revenue costs has been set al 10°/• of the Trust's Ihree-month ordinary costs. In addition to this requirement and our active developmenl programme. further reserves should be available Ihal are equivalent lo actual capital commitments, less any associated finan arrangements already in place. Al the balance sheel dale, the Trust's free unrestricled reserves before long-term liabilities were £4,974k, whid) represents a surplus of £2,266k above the £2,708k required lo fulfil the above requirement. The Board are comfortable that holding th higher level of reserves is appropriate given future planned capital works programmes. On transition lo FRS 102. the decision was taken lo adopt a deemed cost value al the dale of Iransilion for the freehold homes using their value as at 1 April 2014 thus creating a revaluation reserve equivalent to Ihe increased value only of those homes Ihal had risen in value. In the year lo 31 March 2023, the fair value model was applied lo freehold assets, representing a change in accounting policy. A reserves transfer is applied annually to account for the increased depreciation arising from the revaluation exercise. The balan of the revaluation reserve at 31 March 2024 was £28.9m (2023.. £32.7m). The Trust's Senior Management Team actively monitors reserves on behalf of the Board of Trustees. They are responsible for providing quarterly updates and highllghling any potential problems. Restricted funds of £1,023k (2023.. £632k) represent donations received and resident deposit5. Princi al Risks rtainlies The Trust maintains an active digital risk register covering operational and financial risks. The Senior Management Team monitors this regularly and reviews it wilh the Finance & Audit. Property and Care & Quality Improvement Committees, and the Board of Trustees. The Trust a150 conducts internal and exlernal reviews covering areas such as Care. Health and Safely, HR and Finance to redu risk across the organisalion. The following are considered the key risks and uncertainties currently facing the Trust.. Quality failings: Issues with the quality of our services result in substandard experiences for our residents. Further risks would include downgrading of CQC ratings, reslriclions on admissions. reputational damage, and resultant financial implications. The Trust is reviewing all audiling processes to ensure Ihat any weaknesses are rectified as soon as possible. Workforce difficulties.. High colleague turnover and an inability lo recruit quality colleagues result in inconsistent care and reduce our ability to curtail agency spending. We continue to pay a minimum of the Real Living Wage and are investing in schemes to support, develop and progress colleagues. Occupancy.. Failure to increase occupancy, both in our new homes and those recovering from operational issues, threatens the organisation's financial stability. This risk is being mitigated through focused marketing support and the use of largeted offers.
DorJJ$i9n Envelope ID.. 3CAF8F2&29444800-81FI-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES {INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT} FOR THE YEAR ENDING 31 MARCH 2024 Fundraising." An inability to continue lo raise funds lo further our sustainable development and to refinance the first loan from Retail Charity Bond plc in 2026 would be a concern. We prepare and regularly review a long-term financial plan to monrtor the impacts of short and long-temi strategies on our financial position. Thé Trust is already considering options lo establish the optimal refinancing solution for the 2026 bond, and progress on the selected option is likely to commence in Autumn 2024. Goin Conrn The past few years have provad challenging for the Trust. Delayed ¢xcupancy recovery. coupled with fecruilment challenges and broader e¢onomi¢ conditions, has had a delrimental effect on the organisalion's financial position. During the year, some of the critical operational issues arising in the prior year were resolved, albeit later than anlicipaled. These delays have had a detrimental impact on ihe Trust's financial performance in the current year. Resident numbers al our new and filling homes have also built more slowly than budgeted. Across the organisalion, despite solid recruilmenl efforts. the need lo rety on agency workers to maintain safe services has resulted in significant temporary increases in our staffing costs. During the year and since Ihe year-end, we have tackled both the cost of agency workers through improved svpplier selection and rate agreements, as well as the number of hours of agency ulilised through improved rola management and incentive schemes to encourage overtime uptake. At the time of writing, agency usage has dropped 20Q/o compared lo year-end levels. In January 2024, the Trust entered into a sale and leaseback arrangement on Henley House, our sile in Ipswich. This generated cash inflows of £14.8m, part of which was used to purchase the Broadacre5 group and the land al Newport Pagnell. The overall impact of this has left the Trust in a healthier year-end cash position and enabled us to continue our suslainable development programme, increasing our reach to more older people. Occupancy levels have started the financial year 2024125 below budget due to slower-than-expected occupancy grovAh in the year's final quarter lo March 2024. In a number of homes in the occupancy growth phase. savings can be made lo offset rèduced revenues lo some extent. The Trust has flexibility in the financing and timing of building the new Newport Pagnell home, including a loan facility, a sale and leaseback arrangement or development delay. Options are being fully considered before a decision is made. Stress lesls and forecast sensilivilies, based on a vgriety of occupancy assumptions. suggesl that reducing the cash outflow of the development ensures that in the event of a downlum in occupancy recovery or olher worsening of performance, the Trust will have sufficient cash to operale over the next 12 months. As such, the Trustees consider that Greensleeves Homes Trust has adequate resources to continue in operational existence for the foreseeable future. being a minimum of twelve months from the date these accounls are approved. wilh no material uncertainties regarding going concern identified. For this reason, Ihese accounts have been prepared on a going concern basis. Plans for Future Perlod$ In furtherance of our charitable objectives and slralegic goals, the Trust has the following Vltal plans for Ihe coming year.. Recruitment retention and develo ment.. To exlend and enhance the Quality First Inilialive, which encourages Greensleeves colleagues lo take on additional shifts, thereby reducing agency usage and improving care continuity, and to continue to monitor this for effectiveness during ihe year. We plan to use targeted local recruilmenl advertising to support key homes and increase our use of sponsorship licences lo widen the recruilmenl pools we can access. These measures and our colleague retention initiatives will enable us to reduce the number of agency hours required. This, coupled with agreeing fair rates with suppliers, will significantly reduGe agency spending. anc We aim to improve occupancy at all homes operating below pre-pandemic levels and al new homes. This will be achieved through marketing campaigns, raising awareness bolh online and through local press, and reviewing our resident joumey lo ensure that it is as seamless as possible. We will also continue to promote our Home for Life policy, enabling prospective residents to consider this as part of their decision- making process.
Docuslgn Envelope ID.. 3CAF8F23-2944480041F1-829EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 Review lon -term fun in arran ements: To select the optimum long-temi funding strategy incorporating repayment of the Retail Charrty Bond facility ahead of maturity in 2026. re ualil¥.' To implement the Gold Standards Framework across our homes, particularty for residents living with dementia or on end-of-life care. To ensure all colleagues receive hi9h-quality training and development opportunities, enabling them lo provide the besl standards of care. We also plan to continue lo develop internal audit lechniques, to identify and rectify weaknesses at the earliest opportunity. ital Tr rm nPro ramme.. To continue implementing and exploring digital tools and soare available lo support high-qualily care and ensure the or9anisalion's efficiency. rowlh and consolidalio To conduct a detailed review of our homes lo ensure that all are operating efficienlly and conlribuling positively to the organisalion. To consider funding options available in the short and medium term, maintain comfortable working capital levels. and fund Ihe future development pipeline. Strategic Report- CompanS•$ Act 2006 817211 The Trustees, both individually and collectively, consider that they have acted in ways that they believe in good faith lo be most likely lo promote the succes5 of Greensleeves Homes Trust. Decisions made during the year ended 31 March 2024 have been taken lo benefit both residents and colleagues. We actively encourage feedback from residents and relatNes through annual satisfaction surveys and regular meetings. Caring for our residents is fundamental to the Trust's success, and we endeavotjr to provide exemplary and innovative care to all residents, across all of the Trust's homes, at all limes. We also strive for our homes to actively be part of the community through engagement with other local organisations. We recognise that colleagues, both at individual homes and al Head Office, are the Trust's most important asset and aim lo be responsible employers in our approach lo the pay and benefits our employees receive. The health, safely and well-being of colleagues and residents are of the highest importance, and ensuring these is one of the primary considerations when making decisions and operating the Trust. Streamllnod Energy and Carbon Reportlng The Streamlined Energy and Carbon Reporting disdosure presents our carbon footprint within the United Kingdom across Scope 1. Scope 2 and Scope 3. an appropriate intensity metric. the tolal energy usage of electricity, gas and transport fuel, and an energy efficiency improvements summary. Scope 1 consumption and emissions include direct combustion of natural gas and fuels used for Iransportalion operations, such as company vehicle fleets. Scope 2 Consumption and emissions refer to indired emissions related to the consumption of purchased electricity in day-Io•day business operations. Scope 3 consumption and emissions cover emissions from sour$ not directly owned by us. This relales to grey fleet (business travel undertaken in employee-owned vehicles) only. Year ended 31 March 2024 Year ended 31 March 2023 Consumption Emissions Intensity Consumption Emissions Intensity kwh tC02e Metric ' kwh tC02e Metric ' 10,735,557 1,989.34 1.56 11,007,882 2,038.50 1.63 4,428.691 925.74 0.73 4,454,731 861.46 0.69 517,736 119.54 0.09 487,377 113.29 0.09 Gas and other fuels (Scope 1) Electricity (Scope 2) Transport (Scope 1 & 3> Overall 15,681,983 3.121.82 2.38 15.949,990 3,013.25 2.41 . Intensity metric represents tC02e per CQC r&gistered space across currenlly operaling homes. 10-
Oocusign Envelope 10.. 3CAF8F2&294448O81F1.829EEF27B64c GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 Dala for the year ended 31 March 2023 has been reslated, as supplier invoices covering multiple months during the reporting period have been re-billed, impacting electricity and natural gas consumption. Greensleeves Homes Trust is committed lo year-on-year improvements in operational energy efflenCy. As such. a register of energy effiaency measures has been compiled with a view lo implementation in the next five years. A Sustainability Working Group has been established lo regularly review current policies and procedures lo ensure energy efficiency and sustainability is priorilised in the future. Ongoing measures including those undertaken in this year.. All lighting upgrades and replacements done usin9 LEO. Installed smart melers and water meters across the Trust. Electricity conlracls were renewed wilh REGO-backed conlracts, meaning our supply is now 1000/0 ienewable. Gas dryers are being replaced with electric dryers as units fail. Two homes have now moved to electric. Operating a cycle lo work scheme to reduce staff reliance on cars. Moved to a cenlralised waste management contract lo increase recycling percenlages. We are pleased lo note the ieduction in the overall Intensity Metric shown above. Despite our growth, we have achieved a reduction in consumption of both electricity and gas. Electricity emissions have increased., however, this figure is calculated using the average emissions of the National Grid (localion-based emissions), which worsened during 2023 (on which this data is based) versus 2022. The Trust switched lo a fully renewable electricity supply during the year. Recalculating the electricity emissions {tC02el using emissions factors specific to the contractual instruments in place (market-based emissions), brings Ihis figure down from 925.74 to 716.81. producing a revised inlensily metric of 0.56. The market-based electricity emissions will be reduced lo zero going forward as a result of the switch to renewable supply. Measures for the future include.. Inslallalion of minimum 2 EV charge points at all new build homes. Replacement of single use producls with reusable allernalives. Creation of food waste action plans lo reduce food waste in our homes. Solar {PV) units to be installed where possible to homes. Surveys of homes being undertaken lo assess energy efficiency and produce a strategy for mprovemenls. All new homes lo have electric systems for heating and hol water. Struclure Governance and Management Greensleeves Homes Trusl is a company limited by guarantee and a registered charity. Its goveming document is its Memorandum and Articles of Association. The Board of Trustees is currently composed of 12 members. These are the legal directors of the company and are responsible for the overall direclion and strategy of the Trust and for overseeing ils financial affairs. Trustees are recruited by an external agency $pecialising in non-executive recruitment. The goal is to attract suitable individuals to enhance the existing Board's skill set and address any skills gaps. Polenlial candidates are inlerviewed by the Nominations Committee or a panel of board members, and suitable candidates are recommended to the Board for appoinlment. New Trustees receive essential documents such as the Memorandum and Articles of Association, the current annual budget and business plans, and information on regulatory requirements in the care and charity sectors. They also meet with the Chief Executive to discuss strate9y and objectives and identify any additional training needs. The Chief Executive and board papers keep Truslees informed about Trust developmenls and levant legislation.
DO.gn Envelope ID.. 3CAF8F23-29444800.81F1-829EEF27B64C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT) FOR THE YEAR ENDING 31 MARCH 2024 The current Trustees have diverse backgrounds and contribute valuable expertise and advice, as well as the support of external advisers. The Board of Trustees meet regularly throughout the year, at quarterty Board meetings, and in smaller groups at sUCOMmIttee meetings. The Trustees currently have the following sub-committees. which report directly to the Board: Finance and Audit Commillee.. Responsible for providing the Board with assurance on the adequacy of all systems, controls. processes induding risk management processes. which may affect the Trust's ability to meet its objectives,. and to ensure that financial resources are being deployed appropriately. Al AA Responsible for providing the Board, the Chief Executive and the Senior Management Team with advice on property-relaled issues consislenl with the Trust's objectives. emuneration Committee.. Responsible for advising the Board and Chief Executive on pay and reward throughout the Trust. with a particular focus on the pay of senior management, any reward and incentive scheme, and pension issues. C8re & uali rovement Committee.. Responsible for the clinical govemance and risk mana9emenl of resident safety and experience, quality standards and c4)mpliance. and service developmenttinnov8tion. Nominations Co Responsible for effective succession plannin9 for senior roles in the Trust, such as the Chair, Vice Chair, Chair of any standing committee. Tnjslees and the Chief Executive. Trustees delegate the day-Io•day running of the ¢harity to the Chief Executive. who is supported by the Senior Management Team. Together. these individuals are responsible for developing and enhancing services wilhin the Trust's objectives, recruiting appropriately qualified slaff who align with the Trust's values. and maximising the use of Trust assets. They also provide slralegic and operational leadership lo meet regulatory requirements, maintain seNice standards within budget, and identify new income slreams and development opportunities. The Trust has a Remuneration Policy that is regularly reviewed and helps ensure that we appropriately reward and motivate colleagues. The Trust is committed lo ensuring we pay our Golleagues fairly while responsibly managing oui financial resources. The Board of Trustees makes the final de¢ision on any employee-wide pay increases as part of the annual budgel-setting process. The pay of the Senior Management Team is independently reviewed and benchmarked againsl other similar care providers annually. The Remuneration Committee determine the final level of increase, giving specific consideration lo Executive pay. namely the Chief Executive. the Chief Financial Officer, the Direclor of Quality and Compliance, the Director of Business Development and the Divisional Director p051s. In setting the salary for these roles. the Trust will consider markel data and Greensleeves Homes Trust's future growth plans. Disabled Persons We are committed to encouraging diversity amongst our workforce and seek lo make reasonable adjustments lo ensure our premises and working conditions meet Ihe needs of disabled employees and job applicants. All colleagues are afforded the same opportunities. Employee involvement The Trust has established work practices that enable effective communication and engagement with colleagues. such as the quarlerly newsletler and Ihe engagement survey. Team meetings are held at all homes regulaily, allowing employees to discuss any issues and make suggestions on how their home operates. 12-
Dorjjsign Envelo ID.. 3CAF8F23-29444800-81F1429EEF27864C GREENSLEEVES HOMES TRUST REPORT OF THE BOARD OF TRUSTEES (INCORPORATING THE REPORT OF THE DIRECTORS AND THE STRATEGIC REPORT> FOR THE YEAR ENDING 31 MARCH 2024 Fundraising Part of the Trusl's income is from donations and fundraising. Donations are generally unsolicited and received from the residents. families after they have left the home. Fundraising income is generated by events held at homes, such as raffles, summer fayres, or Christmas parties. Any monies raised are used for resident benefit, general amenity purposes, or more significant purchases. Events are organised in-house by our teams, sometimes with the assislance of local volunteers. We have strict controls around fundraising and ensure that Iwo or more people handle any cash. Participation in any fundraising is voluntary. and we do not unduly pressure people to give money or other donalions. No third parties are engaged to assisl with fundraising efforts. The Trust received no complaints in relation to fundraising during the year. The Trustees formally approve the Report of the Board of Trustees and the Strategic Report. They also approve the Strategic Report in their ¢aparily as company directors. By Order of the Tru51ees Ms D Pounds- Chair, Greensléeves Homes Trust 30/7/2024 Dale.. 13-
Docusign Envelope ID.. 3CAF8F2&2944-480(k81F1-829EEF27864C GREENSLEEVES HOMES TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES YEAR ENDED 31 MARCH 2024 The Iruslees (who are also directors of Greensleeves Homes Tnjst for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial slalemenls in accordance with applicable law and regulations. Company law requires Ihe trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordan with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure. of Ihe Charilable group for that period. In preparing these financial slalements, the trustees are required to: select suitable accounting policies and then apply them ¢onsistenlly', obserle the melhods and principles in the Charities SORP {FRS 102)., makejudgemenls and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slalemenls-, prepare the financial slalemenls on the going concern basis unless il is Inappropriate to presume that the charitable group will continue in business. The trustees are responsible for keeping adequate accountin9 records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy at any lime the financial position of the company and enable them lo ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chaiitable company and hence for taking reasonable steps for the pievenlion and detection of fraud and other irregularities. The trustees confirm Ihal.. so far as each trustee is aware, there is no relevant audil information of which the charitable company's auditor is unaware,, and the Iruslees have taken all the steps that they ought lo have taken as Iruslees in order to make themselves aware of any relevant audit information and to establish that the charitable company's 8udilor is aware of that information. The Iruslees are responsible for the maintenance and integrity of the corpofale and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial slalements may differ from legislation in other jurisdictions. Qualifying third party Indemnlty provlslons The company has granled an indemnity lo all of its trustees (who are also the directors of the charilable company for the purposes of company law) against liability in respect of proceedings brought by third parties, subject to the conditions Set out in the Companies Act 2006. Such qualifying third party indemnity provisions remains in force as at the dale of approving the Report of the Board of Trustees. 14-
Docusign Envelope10. 3cAF8F23-29444B81F1-829EEF27B64c INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENSLEEVES HOMES TRUST Opinlon We have audited the financial statements of Greensleeves Homes Trust (the 'parent charitable company,) and its subsidiaries {Ihe 'group') for the year ended 31 March 2024, which comprise the Consolidated Slalement of Financial Aclivilies, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Slalement and notes lo the financial slalements, 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 including Financial Reportin9 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 stalem8nls'. give a true and fair view of the state of the group's and parent charilable companys affairs a5 at 31 March 2024 and of the group's and the parent chafilable Company's incoming resources and application of resources, including its income and expenditure for the year Ihen ended., have been properly prepared in a¢cordan¢e with United Kingdom Generalty Ac¢epled Arxounling Practice including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice.. Accounting and Reporting by Charities, 2019 Edition., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls lor oplnlon We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Acl. We conducted our audit in accordance with Inlemational Standards on Auditing {UK) {ISAs (UK}) and applicable law. Our responsibilities under those standards are further described in the 'Auditorfs responsibilities for the audit of ihe financial slatemenls, section of our report. We are independent of the group and Parent charitable company in accordance with Ihe ethical requiremenls 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 lo provide a basis for our opinion. Conclusions relating to going concern We are iesponsible for concluding on the appropriateness of the Iruslees. use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related lo events or conditions that may cast significant doubl on the group's and the parent charitable company's ability lo continue as going concern. If we conclude that a malerial uncertainly exists, we are required to draw attention in our report to the related disclosures in the financial stalemenls or, if such disclosures are inadequate, lo modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up lo the dale of our report. However, future events or conditions may cause the group or parent charitable company lo cease to continue as a going concem. In our evaluation of the Iruslees. conclusions, we considered the inh8renl risks associated wilh Ihe group's and parenl charitable company's business model including effects arising from macrt>economic uncerlainties such as the impact of inflation and the cost of living crisis, we assessed and challenged the reasonableness of eslimales made by the trustees and the related disclosure5 and analysed how those risks might affect the group'5 and parent charitable company's financial resources or ability to continue operations over the going concern period. In audiling the financial statemenls, we have concluded that the trustees, use of the going concern basis of accounts'ng in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any malerial uncertainties relating lo events or conditions that, individually or colledively. may cast significant doubt on the group's and parent charity's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authoiised for issue. Our responsibilities and the responsibililies of the directors wilh respect lo going concern are described in the relevant sections of this report. 15
Do¢xJslyn Envelope ID.. 3CAF8F2&2944480041 F1-829ÉEF27864C INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENSLEEVES HOMES TRUST Other infonnation The other information comprises the information included in the Annual Report and Consolidated Financial Statements, other than the financial slatemenls and our auditorfs report thereon. The trustees are responsible for the other information conlained within the Annual Report and Consolidated Financial Stalemenls. Our opinion on the financial slalemenls does not cover the other information and, except lo the exlent otherwise explicitly slated in our report, we do not express any form of assurance Conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whelher the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the audil or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether there is a material misslalemenl in the finanoal slalements themselve5. If. based on the work we have performed, we conclude that there is a material misslalement of this other information, we are required to report that fact. W8 have nothin9 to report in this regard. Oplnlon 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 Strale9ic Report and Ihe Directors, Report, prepared for the purposes of company law, included in the Report of the Board of Trustees for the financial year for which the financial statements are prepared is consislenl wilh the financial slalements. the Strategic Report and the Direclors, Report included in the Report of the Board of Trustees have been prepared in accordance with applicable legal requirements. Matter on which we are required to report under the Companies Act 2006 In the light of the knowledge and understanding of the group and parent charilable company and their environment obtained in the course of the audit, we have not idenlified material misstalemenls in the Strategic Report or the Directors. Report included in the Report of the Board of Trustees. Matters on whlch we are required to report by exceptlon We have nothing to report in resped of the following matters wher8 the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us., or Ihe parent Charitable company's financial slalemenls are not in agreement with the accountin9 records and returns., or ertain disclosures of Irustees. 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 Slalement of Truslees. Responsibilities set out on page 13. the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of Ihe financial statements and for being satisfied that they give a true and fair view. and for such inlemal control as the Iruslees delermine is necessary to enable the preparalion 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 group and the paienl harilable company's ability to continue as a going concern, disclosing, as applicable, matters related lo golng concern and using the going concem basis of accounting unless the truslees either intend lo liquidate the group or parent charitable company or to cease operations, or have no realistic alternative bul to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo 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 auditorfs report that includes our opinion. 16
Docusign Envelope ID.. 3CAF8F2&29444BOO41 F1429EEF27864C INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENSLEEVES HOMES TRUST Reasonable assurance is a high level of assurance but is nol a guarantee that an audit conducted in accordance with ISAS (UK) will aayS detect a material misstalemenl when it exists. Misstatements can arise from fraud or error and are considered material rf. individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statéments. Irregularilies. including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities. including fraud, is detailed below= We obtained an understanding of the legal and regulatory frameworks that are applicable to the group through our general not for profrt and charity sector experience and discussions with management. We determined that the following laws and regulations were most significanl.. Charities SORP 2019. FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,, Charities Act 2011. Companies Act 2006, Data Protection Act 2018 and Care Standards Act 2000. We enquired of management concerning the group's and parent charitable company's poliues and procedures relating to.. the idenlific8tion, evaluation and compliance with laws and r8gulalions,' Ihe detection and response lo Ihe risks of fraud. and the establishment of internal controls lo mitigate risks related to fraud or non-compliance with laws and regulations. We enquired of management and the Finance and Audit Committee, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowled9e of actual, suspected or alleged fraud. We assessed the susceptibility of the group's and parent charitable company's financial slalemenls to material misstalemenl, including how fraud might occur, by evaluating management's incentives and opportunities for manipulalion of the financial slalemenls. This induded the evaluation of the risk of mana9ement override of controls. We determined that the principal risks were in relation lo.. journal entries that increased revenues or that reclassified costs from the income statement to the balance sheet potential management bias in determining accounting eslimales potential management bias in the revalualion of revalued freehold properties potential management bias in the valuation and recognition of the acquisilion of the Broadacres Group Our audit procedures involved.. identifying and assessing the design effectiveness of ¢ontrols management has in place lo prevent and detect fraud: challenging assumptions and judgements made by management in ils significant accounting estimates, such as valuations of certain freehold properties., identifyin9 and testing joumal entries. in particular manual journal entries. In addition, we completed audit procedures to conclude on the compliance of disclosures in Ihe Annual Raport and Consolidated Financial Slalements with applicable financial rep¢)rting requiiemenls. These audit procedures were designed to provide reasonable assurance thal the financial statements were free from fraud or error. The risk of not delecling a material misslalemenl due to fraud is higher Ihan the risk of nol delecling one resulting from error and detecting irregularities that resull from fraud is inherentty more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresenlalions. Also, the further removed non-compliance with laws and regulations is from events and transactions reflecled in the financial statements. the less likely we would become aware of it., Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement leam's.. understanding of, and pradical experience with audit engagemen15 of a similar nalure and complexity Ihfough appropriate training and participation 17
Doc{Jsn Envelope ID.. 3CAF8F23-2944-4BOO-81 F1429EEF27864C INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENSLEEVES HOMES TRUST knowledge of the Industry in which the client operates understanding of the legal and regulatory requirements specific to the entitylregulaled entity including.. the provisions of the applicable legislalion the regulators rules and related guidance. including guidance issued by relevant authorities that inlerprels those rules The team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud in revenue recognilion, improper use of charitable funds and serious incident reports submitted to the Charity Commission in the period., In assessing the po18ntial risk6 of malerial misslatemenl, we obtained an understanding of.. the group's and parent charitable company's operations, including the nature of ils revenue sources, products and services and of its objectives and strategies lo understand the classes of transactions, account balances. expected financial 51alement disclosures and business risks that may result in risks of material misstatement. the group's and parent charitable company's Control environment, including the policies and procedures implemented to Gomply with the requirements of its regulator, including the adequacy of the training lo inform staff of the relevant legislation, rules and other regulation5 of the regulator, the adequacy of procedures for aulhorisation of transactions, internal review procedures over the entity's compliance with regulatory requirements and procedures to ensure that possible breaches of requirements are appropriately investigated and reported. A further description of our iesponsibilrties for the audit of the financial slalemenls is located on the Financial Reporting Council's website at.. www.frc.org.ukJaudilorsresponsibililies. This description forms part of our audilorfs report. Use of our report This report is made solely lo the charitable Company's members, as a body, in accordance wilh Chapler 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 50 that we might slate to the charitable company's members those matters we are required to stale to them in an auditorfs report and for no other purpose. To Ihe fullest extenl permilled by law, we do not accept or assume responsibility to anyone olher than the ¢harilable company and the ¢harilable company's members as a body, for our audit work, for this report, or for the opinions we have formed. o•rF- L4 James Bird Senior Slalutory Audrtor for and on behalfof Grant Thornton UK LLP Slalulory Auditor, Chartered Accountants London Dale.. 30/7/2024 18-
Docusign Envelope ID.. 3CAF8F2&294448o81F129EEF27B64c GREENSLEEVES HOMES TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2024 Unrestricted Restricted Funds Fund$ 2024 2024 unstriCted Restricted FuThJs FurKIs 2023 2023 Totsl 2024 Total 2023 Notes INCOME FROM Charitable activities Residents, care fee5 Residents, sundries Co¥id-19 Funding Rental income 77.976.567 474.944 77,976,567 63,449,452 474.944 410,540 63,449.452 410.540 162,728 426,957 162,728 319,370 319,370 426.957 Raising funds Donations and hjndraising Inlestments 391,205 391,205 8.500 46.917 46,917 6.224 8,600 6.224 Other Miscellaneous income Suwus from sale of fixed a$sets 35,080 764,832 35,080 764.832 652.135 652, 135 TOTAL 79,579,293 391,206 79.970,498 64,945.308 209,645 65.154,953 EXPENDITURE ON Charitable activltles Residents, care costs Head Office costs Rental costs 79,007,651 S,113,957 196,242 79,007,661 69,503,844 6,113,957 3,545,659 196,242 259,2 203.345 69,707,189 3.545,659 259,296 Ra Islng funds Cost of raising finance Other Loss ol valUation of as$el$ 163.769 163,769 158,055 158.055 7,417.596 7,417,596 TOTAL 84,481,619 84,481,619 80,884,49] 203.345 81.087,795 NET INCOME I (LOSS) Transfer between funds Gain on revaluation of assets 4,902,326> 391.205 {4,511,121) 115,939,142) 6,300 115,932,842) 13 13 23,804,996 23.804,996 NET MOVEMENT IN FUNDS (4,902,326) 391.205 (4.511,121) 7,865,854 6,300 7.872,154 FUNDS AT 1 APRIL 2023 13 39,185,768 632,118 39,817,886 31.319,914 825,818 31,945,732 FUNDS AT 31 MARCH 2024 13 34,283,442 1,023,323 35,306,76S 39,185,768 632,118 39,817.886 All of the above results are derived from continuing activities. The parent company has elected not to present ils unconsolidated SOFA under section 408 of the Companies Act 2006. The notes on pages 22 to 40 form part of these financial ststements. 19
Docusign Envelope ID.. 3CAF8F2&29444BOO41F1-829EEF27B64C GREENSLEEVES HOMES TRUST CONSOLIDATED AND CHARITY BALANCE SHEETS 31 MARCH 2024 Grou 2024 Charl 2024 Note8 2023 2023 FIXED ASSErs Tangible assets InStment in Subsidiaries 104,170,007 113,765,339 99,850,083 4,462,147 113,765.339 5,12 104,170,007 113.765.339 104,312.230 113.765,343 CURREfrif ASSETS Debtors Bank and cash balances 4,620.115 8,222,925 3,714,990 2,280,907 4.597.361 7,854,002 3,714,986 2,280,855 12.843.040 5,995,897 12,451,363 5.995.841 CURRENf LIABILITIES Amounts falling due ¥thin one year 10 (6,845,668 15,153,097) 16,573,944> {5,153,101} NEf CURRENT ASSErs 5,997,372 842,8110 5,877,419 842,740 TOTAL ASSETS LESS CURRENT LIABILITIES 110,167,379 114,608.139 110,189,649 114.608.083 CREDITORS Amounts falling due after more than one year 10 174,860,614) {74.790.2531 (74,860,614) (74,790,253) NET ASSETS 35.306,765 39.817.886 35,329,036 39.817,830 UNRESTRICTED FUNDS General n$ R&oluation rese 13 13 7,432,151 26,851,291 6,522,744 32,663.024 7,455,421 26,851,291 6,522,688 32,663,024 13 34,283,442 39,185.768 34,306.712 39.185,712 RESTRICTED FUNDS 13 1,023,323 632.118 1,022.323. 632,118 TOTAL FUNDS 13 35,308.765 39,817,888 35,329,035 39,817,830 The Charity's Net Loss for the yearwas £4,511,121 (2023.. loss of £15,932,844). 3017/2024 Approved by the Board of Trustees and authorised for Issue on . and signed on their behalf by.. Ms Ci Pounds- Chair. Greensleeves Homes Trust ompany Registered Number 03260168 Th8 notes on pages 22 10 40 form part of these financial slalements. 20-
l)o¢u$ign EnveloFe 10.. 3CAF8F23-29444B0l8l F1-829EEF27B64C GREENSLEEVES HOMES TRUST CONSOUDATED CASH FLOW STATEMENT 31 MARCH 2024 Notes 2024 2023 Cash flows from operatlng actlvltles (1,7S1,468) 16,033, 185) Cash flows from Investlng actlvltles Interest receId Net cashflow from acquisition Purchases of tangible assets Proceeds from sale of tangible a$sel$ 8,500 (3.587.931 (7,468.682> 18,661,228 6,224 {6,864,25SI N•t Cath provlded by lu•ed In) Investlng actlvltl•s 7,623,115 (6,858,031) Cash llow$ from Ilnanclng actlvltles Amortisalion of capilalised costs 70,361 70,168 Net cath provSded by financlng actlvities 70.361 70,168 Change In cash and cash equlvalents In the reporting period 5,942,018 {12,821,0481 Cash and cash equ¢entS al beginning of reporting period 2,280,907 15,101,955 Cash •nd cash •qulval&ntsat end of reportlng porlod 8,222,925 2,280,907 Reconclllatlon of net Income to not cath flow from operatlng activities Net income for the reporting period Ilncreasel in debtors Increase in creditors Depreciation Loss on febeluation Oiwdend5 & interest from instMentS Gains on fixed asset disposals Wrile off of tangible assets 14,511.121) 1885,930) 941,383 3.477,533 (15.932,842) {1.047,9991 126,492 3,409,780 7.417,596 16,2241 18,6001 {764,8321 12 Net casjh used In operatlng actlvltle8 {1,751.458) (6,033,185) Analysis of cash and cash equivalgnts Cath at 31 March 2024 Cash at 31 March 2023 Cash •t bank 8.222,925 2,280,907 The notes on pages 22 to 40 form part of Ihese financial statements. 21
Docu51gn EnveloFe10'. 3CAF8F2&29444BOO41 F1.829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 ACCOUNTING POLICIES (a) Basls of accountlng Greensleeves Homes Trust is a Company limrted by Guarantee and is incorporated in England and Wales. 11 is also a Charity Ihat constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared under the historical cost convention, with Ihe exception of investments which are included at market value. They are in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charilies preparing their accounts in accordance with Ihe Financial Reporting Slandards applicable in the UK and Republic of Ireland (FRS 102) (effeclive 1 January 2019) (Charities SORP {FRS 102)). the Financial Reporting Standard applicable in the UK and Republic or Ireland (FRS 1021 and the Companies Act 2006. The currency used in the financial slalemenls is Pound Sterling. (b) Judgements In applying ac¢ountlng policles and key sources of estlmatlon uncertainty Preparation of the financial slalemen18 requires the Trustees lo make judgements. estimates and assumptions concerning the future. The areas of the financial statements that are subject lo Ihese judgements are as follows= Care home debtors.. An allowance for bad and doubfful debts 1$ maintained in respect of eslimaled losses resulting from Ihe inability of the Charity's debtors lo settle amounts due. Fixed asset valuation.. Freehold properties are held under the revaluation model. Properties are periodically revalued lo market value by eXperIend independent valuers, and revaluations are based on recognised techniques and supported by relevant market and perfonnance data. Revaluations are conducted with sufficient frequency to ensure that the carrying value of the assets does not differ materially from fair value. Subsequent additions are staled at cosl less depreciation. The existence of impairment Indlor$ is considered by the Trustees at each reporting date, as is the continuing appropriateness of ihe depreciation policy. Loan measurement.. Future payments have been estimated in respect of the loan in computing the effective interest rate al inception, with a periodic re-assessmenl being undertaken of the effective rale as a floating rate instrument based on actual outcomes during Ihe loan term. Subsidiary Loan.. A loan was made lo Broadacres Care Home Limited lo enable the repayment of a mortgage, such that the property could be acquired unencumbered. This loan has been accounted for as part of the acquisition consideration. Ic) Income recognltlon Residents. care fees, rental income and donations are recognised when Ihe Charity has entillement to the amounts due and their receipt is probable. It is accounted for on a receNable basis. In¢om& from investments or bank interest 1$ included when receivable and tha amount can be measured reliably by the Charity,. this is normally on notificalion by Qui inveslmenl advisor or by the bank. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Vvhere income is received in advance of entitlement of receipt, ils recognition is deferred and included in creditors as defeffed income. Where entitlement occurs before income is received, the income is accrued. Grant income is included gross within the Statement of Financial Activities and not netted against the associated expenditure. Id) Expenditure recognltion Expenditure is recognised once there is a legal or wnstructive obligation to make a payment where il can be reliably measured and il is probable settlement will be required. Expenditure is recognised gross of VAT. Expenditure is allocated lo the particular activity where il directly relates to thal activity. Any that is nol directly attributable to one activity is allocated as appropriate. Expenditure on raising funds comprise Ihe fees paid to the manager of our investment portfolio and the amorti5ation of inrtial costs incurred in respect of the loans from Retail Charity Bonds Plc. Rental costs are in respect of a small number of rental properties owned by the Trusl. 22-
Ooeuslgn Envelope10.' 3CAF8F23-29444B8lF1429EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 ACCOUNTING POLICIES- contlnuod (e) Fixed assets Freehold Property Freehold propertie5 are held under the revaluation model. Pioperties are periodically revalued lo market value by experienced independent valuers, and revaluations are based on recognised techniques and supported by relevant market and performance data. Revaluations are conducted with sufficient frequency to ensure that the carrying value of the assets does not differ materially from fair value. The effects of revaluations are recorded in the revaluation reSee on the balance sheet. Revaluation gains are recognised as 'Gainsl{losses) on the revaluation of fixed assets, within the SOFA, unless they reverse a charge for impairment that has previously been recognised as a cosl within the expenditure headings of the SOFA. Revaluation losses are recognised as an expense in the SOFA excepl lo the exlenl lo which they offset any previous revaluation gains. in which case the loss is shown in the 'Gain51(losses) on the revaluation of fixed assets, section of the SOFA. Subsequent to revaluation, further additions lo freehold property are capitalised al cost, and properties are depreciated as follows. Each freehold property value 1$ split inlo a land element and building element, with the building element further analysed beeen Core (being the core fabricalion of the building, such as foundations. walls, rooves, drainage) and Renewables (being items with shorter useful lives, such as windows, roof coverings, bathrooms, mechanical and electrical services). Depreciation is charged on assets that are available for use. Depreciation is on a slraighl line basis as follows.. Land Freehold propety (Core) Not depreciated over the lower of SO years or the estimated remaining useful life of the home over the lower of 20 years or the estimated rèmaining useful life of the home Freehold property (Renewables> Other Assets Fixed assets olher than Freehold Property are slated al cost les$ accumulated depreciation. Cost indudes the original purchase price and any associated costs directly attributable to bringing the asset to its working condrtion for ils intended use. Depreciation is charged on assets that are available for use. Depreciation is charged on a strai9ht line basis as folli)ws'. Long-term leasehold property Computer equipment Furniture and equipment Molor vehicles over the period of Ihe specific lease over Ihree years over five years over four years Where a development at on8 of our homes is being funded by way of bank finance, any loan Interest and associated charges that are allributable to the period during which the works are being undertaken are capilalised as part of the project's cost. A review for indicators of impairment of a fixed asset is carried oul at each reporting date to determine if events or changes in circumstances indicate thal the carrying value of any fixed asset may not be recoverable. If there is an indication of possible impairment. the recoverable amounl of any affected asset is estimated and compared with the carying amount. If Ihe estimated recoverable amount is lower. the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the slalemenl of financial activities. 23-
Docusign Envelope 10.. 3CAF8F2&29444800-81 F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 (n Investments Investments in subsidiaries are measured at cost less accumulated impairment. The Charity does not acquire put options. derivatives or other complex finanaal instruments. (gl Debtorn Debtors include trade debtors, prepayments and accrued income (see note 81. Residential care home debtors are amounts billed lo customers for services but yel lo be received. Prepaymenls are payments made for goods or services that will be received in the future. These are initially recorded as assets and amortised over time as the benefit of the prepaid expense is realised. Accrued income corresponds to revenue earned during ihe period but not yet billed to the customer. (h) Cash and bank balances Cash is represented by cash in hand and deposits with financial institutions repayable wilhoul penalty on notice of not more than 24 hours. (l) Creditors Creditors indude trade creditors and other short and long-term financial instruments (see nole 10). Accruals are amounls expected lo be incurred for goods and services received during the year bul not yel invoiced. These are recorded as liabilities and released as Ihe expense is incurred. Deferred income corresponds lo revenue received in advanced for services not yel delivered. Resident's deposits are amoLJnts charged lo residents on admission, and relumed on leaving our care. The Trust slopped Collecting depostts in 2020. Ul Non-current credltorn Non-current creditors correspond to loans from Retail Charity Bond Plc. Arrangement costs and surplus funds from issuing bonds above coupon are amortised over the term of the loan. (kl Funds General funds include all current and prior period retained surpluses and deficits. Thè revaluation resèrve comprises the gains arising from increases in the value of freehold property. The accounting policy al 1 (e) explains when transfers lo the profil and loss reserve are made. Reslricted funds compromise donations raised for specrfic projec15 Wlthin the homes. 111 Going Concern During the year, some of the critical operational issues arising in the prior year were resolved, albeit later Ihan anticipated. These delays have had a detrimenlal impact on the Trust's financial performance in the current year. Resident numbers at our new and filling homes have a150 built more slowly than budgeted. Across the organisalion, despite solid recruitment efforts, the need lo rely on agency workers to maintain safe services has resulted in significant temporary increases in our staffing costs. During the year and since the year-end, we have tackled bolh the cost of agency workers Ihrough improved supplier selection and rate agreements, as well as the number of hours of agency utilised Ihrough improved rota management and incentive schemes to encourage overtime uptake. At the time of writing. agency usage has dropped 20 /0 compared lo year-end levels. In January 2024, the Trust entered into a sale and leaseback arrangement on Henley House. our sile in Ipswich. This generated cash inflows of £14.8m, part of which was used lo purchase the Broadacres group and the land al Newport Pagnell. The overall impact of this has left the Trust in a healthier year-end cash position and enabled us to continue our sustainable development programme. increasing our reach to more older people. Occupancy levels have started Ihe financial year 2024125 below budget due to slower-than-expected occupancy growlh in Ihe yearfs final quarter to March 2024. In a number of homes in the occupancy growth phase, savings can be made lo offset reduced revenues lo some extent. The Trust has flexibility in the financing and liming of building the new Newport Pagnell home. including a loan facilty. a sale and 24-
Docusign Envelope ID: 3CAF8F2&29444800-81F1-829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 leaseback arrangemenl or development delay. Options are being fulty considered before a decision is made. Stress tests and forecast sensilivilies, based on a variety of occupancy assumptions. suggest Ihat reducing the cash outflow of the development ensures that in the evenl of a downturn in occupancy recovery or other worsening of performance, the Trust will have sufficient cash to operate over the next 12 months. As such, the Trustees consider that Greensleeves Homes Trust has adequate resources to continue in operational existence for the foreseeable future. being a minimum of Iwelve months from the dale these arxounls are approved, with no material uncertainlies regarding going concern identified. For this reason. these accounts have been prepared on a going concern basis. Im) Ponslon The Trust operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Trusl in an independently administered Scheme. The contributions are recognised as an expense when they are due. Amounts not paid are sh¢)wn In accruals in the balance sheel. In} Basis of consolidation The Group financial slalements consolidate the financial Statements of the Charity and ils subsidiary undertakings to 31 March each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the dale on which control passed. Business combinations are accounted for under the purchase method. ere necessary. adjustments are made lo the financial slalemenls of subsidiaries to bring Ihe accounting policies used into line with those used by the Group. All inlra-group. Iransaclions. balance5, income and expenses are eliminated on consolidation. INVESTMENT INCOME Grou 2024 Grou 2023 Chari 2024 Charil 2023 Bank interest Intercompany loan interest 8,500 6,224 8,500 7,448 6,224 8,500 6,224 15.948 6,224 25-
Do5n Envelope ID.. 3CAF8F23-29444BOO41F1429EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 EXPENDITURE 101 Analy$i$ of èxpendituro Other Support Govemance costs ¢oas {note 3c) Inole 3d) Staff Other care costs costs (note 41 {note 3b} Total 2024 Total 2023 Unrestrlcted funds Charitable actlvltles Residents. care costs Head Office costs Rental costs 54,481.486 24,526,165 1,412.381 19.196 79,007,651 69.503,844 5,113,957 3,545,659 196.242 259.296 3,296,859 177,046 404,717 Ra181ng funds Cost ol raising finance 163,769 163,769 158.055 other Loss on re%Alualion of assets 7,417,596 55,913.063 24,526,165 3,637,674 404,717 84,481,619 80,884,450 Re*rfcted funds Charltable acllvltlos Residents, care costs Head Office costs 203,345 203,345 Total expendlture 55,913,063 24,526,165 3,637,674 404,717 84.481,619 81,087.795 -26-
Docusign Envelope ID.. 3CAF8F23-29444BOO-81F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 {b) Analysis of other carè costs 2024 2023 Charltsble act1vie3 3.109,209 2.578, 145 378,192 389,728 769,344 654, 882 233.280 187,111 3,366.319 4.564,646 1,254.108 1.230,715 501.319 454,661 2.127,577 2.631,691 844.640 791,754 3,378,351 3.380,764 5,086,293 3.640.263 3.477,533 3.408. 107 7,417,596 Medical costs Aclimlies Care Quality Commission fees Maintenance Cleaning and housekeeping Insurance utilities costs Administration costs Loan interest ar charges Leasehold rents Depreciation Loss realuatIon 24,526.165 31.330,063 Ic) Analysis of head office support costs 2024 2023 Professional tees in spect of devalopmenl plans HR, health & salety, energy consultancy plus other professional fees Trusl-wde computer serKices Head office running costs Qeprecialion 414 293,672 1,733,080 1,269,693 282.351 820,819 991,153 1,685 3,296.859 2.0*,788 (d) Analysls of govemance cost3 2024 2023 Le9al and professional fees ALJdit fees for current year Audit fees in respect of preiious year Audilorfs charges re Corporation Tax Retums Audilorfs char9es re SeNce Charge Accounts Auditorfs charges re VAT Consultancy Intemal auditor fees Trustees, expenses Truslee recruitment. training and devdlcpment 244,554 86,640 (2,1)461 6,000 5,280 7.200 37,500 1,569 18,020 140,685 $5, 650 9,400 5.080 4.880 29,788 7,244 404.717 253,568 27-
Docusiw Envelope10: 3CAF8F2>2944480041 F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 WAGES AND SALARIES 2024 2023 Summary of wages and salaries allocation in respect of: Residents, care costs Head Office costs Rental costs 54,481,486 1,412,381 19,196 45.794,722 1.195,303 17,662 55,913.063 47.007,687 Analysisof wages and salarles Salaries National insurance costs Pension costs Apprenticeship Le Agency staff Training Recruitment Other staff costs 40,000,007 3,407.841 1,355,724 349.712 9,246,626 499,684 324,958 728.511 32,360,252 2,705,626 1,096,740 145,310 9,225.778 431,028 384.627 658,326 55,913,063 47.007,687 Central staff costs are allocated solely lo unrestricted funds with 750/0 apportioned lo residents, care costs and 250/9 to head office costs. Each member of central staff will support homes in varying degrees,. some fully and some to a much lesser extent. Therefore, this split is considered an appropriate allocation. As al 31 March 2024, lolal pension contributions still to be paid over lo employees, policies amounted to £221.53712023.' £304,966). The average number of persons employed during the year was: 2024 FTE 2024 Number 2023 FTE 2023 Number Residents, care Head office - Homes, support Head office - Central administration 1,281 39 13 1,636 47 1.163 1,486 42 14 11 1,333 1,699 1,208 1,542 28-
Docusign Env•lope ID.. 3CAF8F23.29444BOO41F1.829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 The number of employees whose emolumenls amount to over £60,000 in the year was as follows". 2024 Number 2023 Number £60.001 to £70.000 £70,001 to £80,000 £80,¢X11 to £90.000 £90,OJ1 to £100,000 £100.001 to £110.000 £110.001 10 £120,000 £120.001 to £130,000 £130.001 to £140,000 £1},001 10 £200,CxJO £210.001 to £220,1)JO 23 10 24 Pension contributions paid on behalf of the 44 employees above for Ihe year amounled to £262,899 {2023'. £133,049 for 24 employees). Key management personnel consist of the Chief Executive, Chief Financial OITicer, Director of Quality and Compliance, Director of Business Development, Direclor of HR, Director of Digital Transformation, and two Oivisional Director5, whose total employment benefils for the year including employerfs national insurance and pension contrlbulions were £1,199,942 (2023.. £978,110). SUBSIDIARY UNDERTAKINGS The following were subsidiary undertakings of the Trust.. Name Company Number 02898839 Registered Office Class of Shares Ordinary Holding Greensleeve5 Develo ments Limited Broadacres Holdings Limiled . Greensleeves Homes TrLtst, 138 Cheapside, London En land. EC2V 6BJ Greensleeves Homes Trus1, 138 Cheapside, London. En land, EC2V 6BJ 1009/4 11161346 Ordinary 1004/0 "8¢quir8d 14 F8bfuary 2024 Indirect Subsidiaries of the Trusl. being subsidiaries of Broadacres Holding5 Limited.. Name Company Nurnbef 09185042 Regislered Office Class of Shares Ordinary Holding Broadacres Care Home Tradin Limited Broadacres Care Home Limited Greensleeves Homes Trust, 138 Cheapside. London, En land EC2V 6BJ Greensleeves Homes Trust, 138 Cheapside. London En land EC2V 68J 100/0 09185042 Ordinary During the year, the Trust acquired the Broadacres Group, consisting of Broadaues Holdings Limited and its subsidiaries 8roadacres Care Home Limited, and Broadacres Care Home Trading Limited. 29-
Docusbgn Envelope ID.. 3CAF8F2&29444BOO-81F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 The Charity's investment in subsidiaries is summarised as follows.. Non- ui Investments Investments Tolal Cost At 1 April 2023 Additions during the year 3.753.578 708.565 4,462,143 At 31 March 2024 3.753,582 708,565 4.462.147 At acquisition. a loan of £701,117 was made lo Broadacres Care Home Limrted lo enable the repayment of a mortgage, such that the property could be acquired unencumbered. Inleresl is being charged al 31/*0 above the Bank of England base rate. The loan and accrued interest is shown above under non-equily inveslmenls. TRUSTEE AND RELATED PARTY TRANSACTIONS The Trustees received no remuneration for their 5erwices during the current or prior year. 5 Iruslees were reimbursed a lolal of £1,338 for travel expenses incurred during the year {2023. 5 trustees, lolal £841). During the year, Greensleeves Homes Trust made a loan of £701,117 lo Broadacres Care Home Limited lo enable the repayment of a mortgage on acquisition, such Ihal the property could be acquired unencumbered. Interest is being charged al 30/0 above the Bank of England base rate. Inleresl of £7,448 has been accrued lo 31 March 2024. At the year end, £708.565 was recognised in fixed asset investments in relation to this loan. 30-
Docusign Envelope 10.. 3CAF8F23-29444BOO-81 F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 TANGIBLE ASSETS- Group and Chority Group: Long term Furniture leas¢hold Computer and Motor ro ui ui ment ie rnent vehlcle$ Freehold ro Total Cosl At 1 April 2023 Disposals during the year Additions during the year Acquired on business combination Wnlten off during year 107,943,903 119,056.730) 5,779,264 5.062,589 2,555,104 7,065,165 1341,3611 (71,543) 149,409 80,724 206.916 122,833.677 (3.0001 {19,472,6341 7,458,682 1,449,285 4,303,692 2,318 12.108 1,806 4,319,924 {127,719) (127,719 At 31 March 2024 98,970,129 6,511,874 2,365,470 6,958.735 205,722 115,011,930 Depreciation Al 1 April 2023 'sposals dufing the year Charge for the year Written off during year 1.939,155 11,187,567> 2,108,579 463,491 1,704,338 4,767,064 (339,035) (46,9361 386,783 777.027 {127,7101 194.290 9,068,338 (2,7(M)) {1,576,238) 10,415 3,4TI,S33 1127,710) 194,729 At 31 March 2024 2,860,167 658,220 1.752,086 5,369,445 202,OOS 10,841.923 Net book value at 31 March 2024 96,109,962 5.853,654 613,384 1,589,290 3,717 104,170.007 Net book value at 31 March 2023 106,004,748 4,599,098 850,766 2,298,101 12.626 113,765,339 Freehold property includes £34.6 million of land (2023.. £34.0 million) which is not deprecialed. 31
Docusign Envelope ID.. 3CAF8F2>29444800-81F1429EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 Charity: Long terni leasehold Computer ro ui Furnllure and Freehold ro Molor Total Cost At 1 April 2023 Disposals dunng the year Additions dunng the year Written off dunng year 107.943.903 (19.056.730) 5.779.264 5,062,589 2,555,104 7.065.165 1341,3611 {71.543) 149,409 80.724 1127,719) 206.916 122,833,677 13,000} 119,472,634) 7,458,682 1127,7191 1,449,285 Al 31 Mar¢h 2024 94,666,437 6,511,874 2,363,152 6,946,627 203,916 110,692,006 Depreciation Al 1 April 2023 Disposals during the year Charge for Ihe year Wrillen off durirKJ year 1.939,155 (1,187,567 2,108,579 463,491 1,704,338 4,767,064 1339,035} 146,9361 386,783 7n.027 1127,7101 194.290 9.068,338 (2,700) (1,576,2381 10,415 3,477,533 1127,7101 194,729 At 31 Ma rch 2024 2,860,167 658,220 1,752,086 5.369,445 202,005 10,841,923 Net book value at 31 March 2024 91,806,270 5,853,654 611,066 1,577,182 1,911 99,850.083 Nel book lue at 31 March 2023 106,1104,748 4,599,098 850,766 2,298,101 12,626 113,765,339 Future capital expenditure contracted for at 31 March 2024 bul not provided for in these accounts amounted to £nil (2023.. £399k). None of the above assets are used as security for Ihe Trust's borrowings. DEBTORS- Group and Charity Gro 2024 Grou 2023 Charl 2024 Charll 2023 Amounts due within ong ygar. Residential care home debtors Other debtors Pfepaymtrnts ansj a¢cw¢d income 2.868.003 162,315 1,589,797 2,041,833 163,045 1,510,112 2,847,175 162.315 1,587,871 2,041.833 163.041 1,510.112 4,620.115 3,714,990 4,597,361 3.714.986 32-
Docusign Envelope ID.. 3CAF8F23-29444BOO-81F1-829ÉEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 BANK AND CASH BALANCES Cash and cash equivalents are comprised of.. rou Grou 2023 Chari 2024 Charil 2023 2024 Cash 41 bank and in hand 8,222,925 2,280,907 7.854,002 2.280,855 8,222.925 2.280,907 7,854.002 2.280,855 10 CREDITORS- Group and Charity Grou 2024 Grou 2023 Charl 2024 Chari 2023 Amounts due withln one year: Trade creditors other creditors and accruals Defera income Residents, deposits 3,003,691 2,942,744 365,785 533,448 2.481,878 1,707.107 313,498 650.614 2.995,246 2,726,360 365,785 486,553 2,481,878 1,707,111 313,498 650,614 6,845,668 5,153,097 6,573.944 5,153, 101 Amounts due after more than one year: Loans from Retail Charity Bonds PIC Due 30 March 2026 Due 17 December 2030 49,859,809 49,789,328 49,859,809 49.789,328 25,000,805 25.000.925 25,000,805 25.000.925 74,860,614 74,7.253 74.860,614 74,790.253 Deferred income relates to fee invoices raised, or monies received. before the year end which cover periods in the following year. The amount of £313,498 al the end of 2023 was released in full in the year ended 31 March 2024. The residents, deposits amount is decreasing as, in February 2020, we elected lo no longer collect deposits from new residents. Current deposits will be repaid as residents leave. 33-
Docusign Envelope10.' 3CAF8F2>2944480041F1429EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 Loan from Retail Charity Bonds Pl¢- Due 30 March 2026 On 30 March 2017, Retail Charity Bonds PIC (RCB Plc) launched the Green51eeves Homes Trust Retail Charity Bond which wa5 issued through their Retail Charity Bonds platfom) and is listed on the London Stock Exchange under stock code GSHT. RCB PIC raised £33million from the issue of bond. It was issued for a period of nine years with a maturrty dale of 30 March 2026 and the oplion to exlend the term by a further tsvo years. 11 has a fixed rate of interest of 4.25 /0. All fund5 raised were loaned lo the Trust on the same terms as the bond. Interest is paid six monthty in arrears. There is an annual arrangement fee al an initial rate of 0.10A of the loan which is payable six monthly in advance. This fee is subject lo a yearly increase in line with the Retail Price Index. Since the initial issue of £33million, a further £17million of bonds have been issued.. £3million during the year ended 31 March 2019 and a further £14million during the year ended 31 March 2020 with the proceeds being loaned lo the Trusl in the two respective years at the same terms as the original advance. The effective interest rate of the Iwo retained bonds tranches is lower than the 4.25°/ts as both were issued at the pnce the bond was trading at when they were issued. In total. costs in respect of all tranches of £599.937 have been capilalised and are being amortised over the term of the loan. £70,481 has been released lo the Statement of Finan¢ial Activities in the current year (2023.. £70.289). Loan from Retail Charity Bonds PIC- Due 17 December 2030 On 17 December 2020, RCB PIC launched a second Greensleeves Homes Trust Retail Charity Bond. Similarly lo the first bond above, Ihis was issued through their Retail Charity Bonds plattorm and is listed on the London Stock Exchange under stock code GHT2. This bond is for a total of £25m with £15m being issued initially. The bond was issued with a term of len years wilh an expected maturity date of 17 December 2030. There is the option lo extend Ihe term for further two years. 11 was issued al a fixed rate ol inleresl of 50/0. The entire £15m of the inrtial issue was loaned lo the Trust on the same terms as the actual bond. Interest is to be paid six monthly in arrears. There is an annual arrangement fee of 0.1 O/a payable six monthly in advance which is subje¢l to an annual increase in line with the Retail Price Index. The relained portion of £1 Om was drawn down in 2022. The effective interest rate ol the retained bonds tranche is lower than 5.009/0 as il was issued al the price the bond was trading al when Ihey were issued. Sel up costs of £421,066 and surplus funds of £400,000 are amortised over the term of the loan. Surplus of £120 was released lo the Statement of Financial Activitie5 in the currenl year12023' £1201.
Docusign Envelope ID: 3CAF8F2&29444800-81F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 The year-end position of the loans was as follows: 2024 2024 Due Due 17 30 March December 2026 2030 2024 2023 Total Total Loan value As al 1 April 2023 Additional borrowing during the year 50.000.000 25.000.000 75,000,000 75.000,000 As at 31 March 2024 50,000.000 25,000,000 75.01)0.000 75,OCQ,000 Capitalised costs As at 1 April 2023 Additional costs incurred during th• year Amortisalion of capilalised cost3 1210,672 92S {209.7471 1279,9151 70.481 (120) 70,361 70.168 As at 31 March 2024 (140,1911 805 (139.3861 1209,747) Balance shown in the balance sheet 49,859,809 25.000,805 74.860,614 74,AI.2S3 Both loans are unSecud and have two main covenants. At the year end the total amount of loans oulslanding was repayable as follows.. Grou 2024 Grou 2023 Charf 2024 Charil 2023 Due within one year Due between two and years 49.859.809 49,789,328 49.8S9,809 49.789,328 e after rnore than fi4E year5 25,000,805 25.000.925 25.000.806 25.000,925 74.860,614 74,790.253 74.860,614 74.790,253 11 OPERATING LEASES- All Charity All operating leases are in respect of propety, namely our homes De Lucy House in Diss, Norfolk,. Lavender Fields in Seal, near Sevenoaks, Kent,. The Orchards in Ely, Cambridgeshire., The Manor in Windsor-, Buckler's Lodge in Crowthorne. Berkshire.. The Meadowcroft. in Tooting, London, Henley House in Ipswich, Suffolk, and our Head Office in London. Rents paid in the year and recognlsed as an expense in these financial slalements amounted lo £5,453.084 (2023.. £3.640.263) split De Lucy House £564,866 (2023.. £542,027). Lavender Fields £995,004 (2023: £842,494), The Orchards £647,684 (2023= £638,485}' The Manor £711,339 {2023'. £660,045},' Bucklerfs Lodge £994.882 (2023.. £957.212)", Head Office £366,791 (2023.. 48.699}. Henley House £165.761 (2023.. £nil). The contract for Henley House commenced on 17 January 2024. followin9 a sale and leaseback arrangement. The lease is for a term of 35 years. 35-
Docusign Envelope ID.. 3CAF8F2&29444BOtM1 F1-829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FIMANCIAL STATEMENTS 31 MARCH 2024 At the balance sheet date. the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows.. Due wlthln one Duo wlthln two ear to five ears Due after five ears Total De Lucy House La*nder Fields The Orchards Bucklels Lodge Meadowcroft The Manor Henley House Head Office 574,659 1.007.901 656,521 1,027,OS7 870,878 718,798 808.500 322,187 2,301,048 4,031,613 2.628,229 4,116,11B 3,493,056 2,877.0 3.234.006 1,292,280 12,301,149 24,471,329 16,622.651 28.505,524 25,164,371 16,708.276 20.854,912 1,243,598 15,176.856 29,510,843 19,907,401 33,648,699 29,528,305 20,304,074 24,897,418 2,858,065 Tolal as at 31 March 2024 5,986,501 23,973,350 145.871,810 175,831,661 Total as at 31 March 2023 4,228,890 19.442.865 123.919,081 147,59J.836 The amounts payable increase annually over the course of the leases in line with the Retail Price Index. The amounts shown above make no assumplion for this and are based on the current annual rent or the initial annual rent in respect of the future home. 36-
Docusign Envelope ID.. 3CAF8F2&29444BO81F?2gEEF27B64c GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 12 BUSINESS COMBINATIONS On 14 February 2024. the Trust acquired 100V• of the share capttal of Broadacres Holdings Limited (company number 11161346), which in turn wholly owns Broadacres Care Home Limited (company number 091850421 and Broadacres Care Home Trading Limited (company number 091850421 (logelher 'The Broadacres Group.). These companies together operate Broadacres care home. a 28 bed residential home in Barton Turf, Norfolk. The acquisition was accounted for using the purchase method. Recognlsed amounts of identiflablè assets acqulred and liabilities assumed Fair value Book value adJu8lments Falr value Flxed Assats Freehold property Computer equipment Fumilure and equipment mot *hicles Intangible assets (goodwill) 1,942,959 2,318 12,107 2,360,733 4,303.692 2,318 12,107 1,806 115,260 1115,2601 2,074,451 2,245,473 4,319,923 Current Assets Residential care home debtors Other debtors Prepayments and accrued income Bank and cash balances 17,269 17,269 1.926 388.884 1,926 388,884 Total Assets 2,482,529 2,245,473 4,728,002 Creditors Trade creditors Other creditors and accruals Deferred income Resident5, deposits {2,1521 {224,2601 {2, 1 S21 {224,2601 146,895) 146,895} Total identlllable net assets 2,209,222 2,245.473 4,454,695 Goodlwll Total purchase consideration 2,209.222 2,245.473 4,454,695 The adjustments made on acquisilion correspond to the write off of goodwill and the revaluation of the propety asset to fair value. 37-
Docusign Envelope ID.. 3CAF8F2&29444BOtM1F1-829EEF27864C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 Consideration Consideration paid (cash) Loan adance paid {cash) Deferred consideration (cash) Costs of business combination 3,073.398 701.117 477.880 202.300 4,454,695 Deferrèd Consideration Under the purchase agreement, an amount of £250k is payable on the annlversary ol the acquisition. A further amount of £278k was paid following finalisation of the completion accounts of Ihe Iransa¢lion. Consolidation results The results of The Broadacres Group since acquisition are as follows.. Current period since acquisition Turnover {Deficil} for the period since acquisition 123,515 {22,322) 13 FUNDS- Group Transfer between At 31 March Funds 2024 At 1 Aprll 2023 Income Ex endlture Unrestrictsd General fvjnds ReluatIOn reseThe 6,522,744 79,579,293 (84,481,619> 32,663,024 5.811,733 7,432,151 (5,811,733} 26,851,291 Total unrestricted funds 39,185,768 79,579,293 {84,481,619} 34,283.442 Restrlcted Amenity fjjnds 632,118 391,205 1,023,323 Total restricted funds 632,118 391,205 1,023,323 Total funds 39,817,886 79,970,498 184,481,619} 35,306.765 38-
DoSign Envelope ID: 3CAF8F2&29444BO(k81F1-829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 FUNDS - Charity Transfer between At 31 Ma rch Funds 2024 At 1 April 2023 Income Ex enditure Unrestrlcted General funds ReluatIOn se 6,522,688 79,464,226 (84,343,226) 32,663,024 6,811,733 7,455,421 {5,811.733) 26,851,291 Total unrelclod funds 39,185,712 79,464,226 {84,343,226 34,306.712 Rerfcted Amenity fvnds 632,118 390,205 1,022,323 Totsl r•stricted funds 632,118 390,205 1,022,323 Totsl fund• 39,817,830 79,854,431 184,343,226) 35,329,035 General funds are unrestricted funds held for the general objects of the Trust's work. The revaluation reserve represents the remainder of the increase in freehold homès property values that arose on Iransilion to FRS 102 and the adoption of a deemed cost valuation, plus subsequenl revaluations following the change of accounting policy to revaluation model for freehold properly in the current year. The transfer beeen funds relates to additional depreciation charged as a result of revaluations, and the transfer of the balance relating lo Henley House at the point of sale. The amenity funds represenl monies raised by each home to be spent on specific projects and activities in that home. 14 ANALYSIS OF ASSETS BETWEEN FUNDS- Group Rgstritted Revaluation funds reserve General fvnds ToLIl Fixed assets Other current assets Current liabilities Long temi liabilities 26,851,291 77,318,716 104,170,007 11.819,717 12.843.040 {6,845,6681 {6.845.668) (74,860,614) 174,860,614) 1,023,323 Total net assets 1.023.323 26,851,291 7,432,151 35,306,765 39-
Docusign Envelope 10.. 3CAF8F23-29444800-81F1-829EEF27B64C GREENSLEEVES HOMES TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2024 ANALYSIS OF ASSETS BETWEEN FUNDS- Charlty Restrlcted Revaluation funds Gènèral funds Totsl Flxed asset8 Other current assets Current Ilabllities Long term liabilities 26.851.291 77,460,939 104.312,230 11.429,040 12.461,363 16,S73,9441 {6.573,944> (74.860,6141 174,860,614>, 1.022.323 Total not ass•ts 1.022,323 26.8SI.291 7.455,421 35.329,036 15 TAXATION Greensleeves Homes Trust is a registered charity and is exempt from taxation on its income and gains to the exlenl they are applied in pursuan of its charitable purposes. 16 CONNECTED ENTITIES The following entity is connected lo the Trust by virtue of common or related objects or by unity of adminislralion.. WRVS Trust - A charitable Trust supporting th8 activities of Greensleeves Homes Trust and the Women's Royal Voluntary Service whose responsibility is lo distribute legacies on receipt to the appropriate legalee. There were no transactions during the year. 17 POST BALANCE SHEET EVENTS There were no significant post balance sheet events. 40-