## VICTORIA CONVALESCENT TRUST
_INCORPORATING VICTORIA CONVALESCENT TRUST FUND KING EDWARD VII CHILDREN’S CONVALESCENT TRUST FUND PRINCESS MARY MEMORIAL TRUST FUND_
FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
|CONTENTS:|CONTENTS:||
|---|---|---|
|Page|
1|Reference and Administrative Information|
||2 - 7|Constitution and Report of the Trustees|
||8|Independent Examiner’s Report|
||9|Statement of Financial Activities|
||10|Balance Sheet|
||11 - 18|Notes to the Financial Statements|
VICTORIA CONVALESCENT TRUST
## REFERENCE AND ADMINISTRATIVE INFORMATION
REGISTERED CHARITY NUMBER: 1064585 TRUSTEES: Mr. N.M. Heath (Chairman) Miss H.J. Hipps Mrs. J.M. Morton Miss V. Hipps Mrs. S.K. Wilson Mr. D.J.R. Wells (resigned 26[th] February 2026) Mr. W.S. Gibbs (resigned 24[th] April 2025) Mrs. P. Bligaard (resigned 7[th] February 2025) Miss J.D. Dollimore Mrs. A.J. Perkins Mrs. B. Curtis Mr. J. Cooke (appointed 6[th] November 2025) GRANTS CO-ORDINATOR: Ms J. Brand INDEPENDENT EXAMINER: S. Lescott, FCCA Xeinadin South Essex Limited Cumberland House 24-28 Baxter Avenue Southend-on-Sea Essex SS2 6HZ INVESTMENT MANAGERS: Quilter Cheviot Senator House 85 Queen Victoria Street London EC4V 4AB BANKERS: National Westminster Bank plc 141 Ebury Street London SW1W 9QP CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ PRINCIPAL ADDRESS: c/o RPGCC 40 Gracechurch Street London EC3V 0BT WEBSITE:
www.victoriaconvalescenttrust.org.uk
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VICTORIA CONVALESCENT TRUST
REPORT OF THE TRUSTEES YEAR ENDED 31ST DECEMBER 2025
The Trustees present their report and the unaudited financial statements for the year ended 31[st] December 2025. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deeds, the Charities Act 2011 and the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015).
The Trustees confirm that the Charity Commission’s general guidance on public benefit has been considered in relation to the objectives of the Charity. The report below sets out those objectives and describes how they have been met in the current year. Specifically this has been done by the provision of financial support for those with significant health issues requiring convalescence or respite and also the provision of services and equipment in cases of financial hardship.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## Trustees’ Statement of Responsibility in Relation to the Accounts
The Charities Act 2011 requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and ensure that the financial statements comply with applicable law, regulations and the trust schemes. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## Constitution
On 9th June 1997, the Charity Commissioners for England and Wales ordered that the charities mentioned below shall be administered and managed together as one charity under the title of Victoria Convalescent Trust.
- 1) The charity called King Edward VII Children’s Convalescent Trust Fund, in the County of Surrey and the London Borough of Croydon, regulated by a Scheme of the Charity Commissioners of 23[rd] September 1982;
- 2) The charity called The Princess Mary Memorial Trust Fund, in Greater London, regulated by a Scheme of the Commissioners of 23[rd] September 1982;
- 3) The charity called Victoria Convalescent Trust Fund regulated by a Scheme of the Commissioners of 23[rd] September 1982 as varied by a Scheme of the Commissioners of 26[th] April 1983.
- 2 -
## VICTORIA CONVALESCENT TRUST
## REPORT OF THE TRUSTEES - continued
On 14th August 2001, the Charity Commissioners issued an Order that “Being satisfied that it is expedient in the interests of the charity that the Trustees should have the power to do so, the Commissioners authorise the Trustees of the charity to decide, at any time, and from time to time, to their discretion, which part of the unapplied total return belonging to the charity should be held on trust for application (income) for the purposes of the charity.”
During the year an application by the Trustees to the Charity Commission under powers afforded to them by S.280A of the Charities Act 2011 (as amended) to change the Charity’s objects clause to reflect more closely the number and nature of the applications received in recent years was accepted. The new objects were approved by the Trustees on 20[th] February 2025 and are set out in the Charity Objectives section below.
## Structure of Organisation
The Charity is governed by a Board of Trustees which met four times during the year. The Trustees make the policy decisions and review the work of the Grants Co-ordinator who processes all grant applications in consultation with individual trustees. All grants made are reviewed and formally approved by the Board of Trustees.
## Appointment of Trustees
The Trustees are appointed by a resolution of the Trustees for a term of three years. Any competent trustee may be re-appointed. No person is entitled to act as a trustee until he or she has signed a declaration of eligibility to act and of acceptance of willingness to act. New trustees are given training as appropriate including an introduction to the availability of Charity Commission guidance.
During the year, Mrs P. Bligaard and Mr W. Gibbs resigned as Trustees after 15 years on the Board. The Trustees very much appreciated their contributions to the operation of the Trust and were pleased to appoint Mr J. Cooke to the Board at their November meeting.
Since the year end Mr D.J.R. Wells has resigned as a Trustee.
## Statement of Risk Management
The Trustees have considered the risks to which the Victoria Convalescent Trust is exposed and believe that these will be mitigated by:
- A body of trustees with the necessary experience and competence to supervise all the aspects of the Trust's work;
- Recruitment of younger trustees with suitable qualifications, cultural diversity and wide-ranging relevant experience to endeavour to ensure the succession of new talent in the trustee body;
- Regular trustees' meetings with effective reporting to ensure proper review of grant making coupled with the consideration and approval by trustees of all grants made;
- Retention of competent investment managers who regularly attend trustees' meetings; and
- • An effective system of internal control to ensure the correct operation of the Guidelines for Grant Making and compliance with General Data Protection Regulations (GDPR).
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## VICTORIA CONVALESCENT TRUST
REPORT OF THE TRUSTEES - continued
## **CHARITY OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT**
Subject to the payment of expenses, up to 20[th] February 2025 the Trustees applied the distributable funds of the Charity in accordance with the scheme dated 9th June 1997 as set out below:
- (a) As to 10% thereof for providing relief in need either generally or individually of persons, with a preference for women resident in the Greater London area, who are in conditions of need, hardship or distress by making grants of money or providing or paying for items, services or facilities calculated to reduce the need, hardship or distress of such persons.
- (b) As to 90% thereof in or towards providing, in cases of need, convalescence, recuperation and/or respite care, provided that as to one quarter of the said 90% the Trustees shall give preference to persons residing in the County of Surrey or the London Borough of Croydon.
The new objects implemented on 20[th] February are set out below:
_“The objects of the Charity are, for the public benefit, to apply the income to:_
_Primarily, provide relief for those in need by reason of financial hardship ill health or disability by the provision of convalescence, recuperation and/or respite care, provided that as to one quarter of the income the Trustees shall give preference to persons residing in the County of Surrey or the London Borough of Croydon; and_
_Relieve the need either generally or individually of persons, with a preference for women resident in the Greater London area, who are in conditions of need, hardship or distress by making grants of money or providing or paying for items, services or facilities calculated to reduce the need hardship or distress of such persons”_ .
As a result of the change in objects, the percentage restrictions on the two types of grant making were removed but the primary object remained the provision of convalescence and respite care. In addition to the Primary Object, the Trustees made grants for Relief in Need by providing services and equipment.
All applications were processed promptly on receipt of standard online application forms completed by an appropriately qualified health or social care worker.
Maximum grants were £1,500 for convalescence, recuperative holidays and respite care and £500 for services and equipment.
## **GRANT INFORMATION**
Applications received in 2025 were broadly in line with the previous year. As a result of short break providers closing down, innovative approaches have been adopted to identify new providers and cooperative arrangements.
Seven block grants were made during the year to institutions for use in accordance with the Trust’s objectives. A grant of £10,000 was made to Newlife, a charity for disabled children, to support their Equipment Grant Service. Challengers Children’s Charity received £8,000 to fund inclusion and socialising for disabled young people in Guildford and Home Start Wandsworth received £1,000 to support event attendance. A grant of £3,000 was also made to Momentum Children’s Charity for respite holidays for six families. The Royal Hospital for Neuro-Disability received £20,000 to continue nurse-led patient outings and The Huntington’s Disease Association was awarded £20,000 to provide essential equipment to individuals and families affected by Huntington’s Disease. Go Beyond were granted £12,000 to provide 5-day breaks for 16 young carers in one of their centres.
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## VICTORIA CONVALESCENT TRUST
## REPORT OF THE TRUSTEES
- continued
Regular reports are received from the recipients of block grants confirming their use in accordance with the objects of the Trust. Other grants are confirmed by receipt from the provider of convalescence or other services.
## **OPERATIONAL AND FINANCIAL**
## **REVIEW OF THE YEAR**
In accordance with its primary objects, the Trust continued to make grants to pay for periods of convalescence, recuperative and respite care and make grants to those in need who do not have the financial resources and who have been unable to obtain sufficient assistance from the statutory services or other resources.
Applications for support are usually made by a suitably qualified social worker or health care worker, but consideration can be given to requests from other sources.
The individual grants approved between 1st January 2025 and 31st December 2025 were classified under the following categories:
|Category|Category No.|2025|2024|Grants 2025 (£)|Grants 2024 (£)|
|---|---|---|---|---|---|
|AIDS/HIV|1|0|2|0|450|
|Cancer|2|65|17|3,481|4,110|
|Children|3|133|139|28,832|18,157|
|General Medical|4|0|0|0|0|
|General Surgery|5|3|0|650|0|
|Mental Health|6|25|25|9,468|7,558|
|Learning Difficulties|7|4|1|740|198|
|Physical Disability|8|18|51|5,734|31,089|
|Carer|9|100|100|16,857|16,072|
|Neuro-Divergent|15|5|8|1,413|1,947|
|Relief in Need|10|41|28|9,979|9,573|
|Approved-not required|11|0|0|0|0|
|**Totals**||**394**|**371**|**77,154**|**89,154**|
The total grants paid during the year as shown on the Statement of Financial Activities amounted to £146,094 (2024: £145,610). Block grants awarded totalled £74,000 and £72,094 individual grants were paid. The Trustees consider the investment income and capital gains are capable of supporting this level of grant making in the long term.
The Trustees have continued to develop relationships with new referrers of people in need of respite care, convalescence and services and equipment.
The Trustees use letters received from grantees and referrers as a tool to measure outcomes. These are overwhelmingly positive and indicate how our grants have improved the lives of recipients.
Examples of the feedback are given below and more are highlighted on our website.
## Individual Grants
- ❖ The retreat was well organised, with supportive staff and lots of activities. I enjoyed the time in nature and found the retreat restorative following the challenges of my cancer journey.
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## VICTORIA CONVALESCENT TRUST
REPORT OF THE TRUSTEES - continued
- ❖ On behalf of our hospital school team, I would like to extend our heartfelt thanks to the Victoria Convalescent Trust for your generous support and kind donations of essential items for our families. Thanks to your generosity, we have been able to provide direct, practical help to families in need, offering not just material items but also a sense of care and community. The difference this makes cannot be overstated. We are incredibly grateful for the opportunity to work alongside you, and we would very much welcome the chance to continue building this partnership in the future.
- ❖ The grant has been incredibly helpful and very much appreciated by many carers. There have been several instances of tears because carers thought they'd have to turn down the free holiday because of the cost of travel. Indeed, one carer told us they had been at the point of borrowing the petrol money as the break was so badly needed so being able to offer support helped them enormously. K said that you could hear the stress lifting when she broke the news we could support with these costs.
- ❖ She was absolutely delighted! She mentioned that her husband will finally have something to look forward to, which she believes will bring him a sense of peace and significantly lift his spirits.
- ❖ Medical condition: Breast Cancer - medication induced severe lower limb pain and sarcopenia, The tri-walker arrived yesterday and will be of huge benefit to me.
- ❖ I just wanted to thank you again from Mr. S, as he has received his mattress last week and was very happy! He said that he has been sleeping on the mattress and that it’s perfect for his health issues (back and legs).
- ❖ I really believe that this break will be a turning point - not just for her, but for the whole family. They truly need this!! Thank you so much for my grant I'm very grateful.
## Block Grants
- ❖ These breaks make a massive difference to families struggling to cope with the consequences of a diagnosis, and bring fun and joy into the children’s lives.
- ❖ Your funding enabled us to support 23 families at Christmas and 10 families in February; our sessions provide both respite and support for families, many struggling with mental and/or physical health issues.
- ❖ We are grateful to the Trustees of the Victoria Convalescent Trust for making a meaningful difference to people who are meeting the huge daily challenges of Huntington’s disease.
- ❖ The difference trips make to the children and young people we support are simply incredible. ❖ Because of your support, we are able to provide a safe and inclusive space where disabled children and young people can have fun, make friends and overcome the isolation that so often impacts their lives.
- ❖ Because of you, some of the most severely disabled people in our society can spend time beyond the hospital in the world they know and miss: home at Christmas, a child’s school play, a quiet hour in a local garden, and the chance to pursue hobbies, old and new.
The Trustees have reviewed their operations with reference to GDPR and have implemented policies and procedures to ensure compliance.
Procedures are operated by the Trust to ensure confidentiality and a receipt is obtained for each grant made.
All the necessary practical arrangements for convalescence, recuperative or respite care must be made by the referring agency.
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## VICTORIA CONVALESCENT TRUST
REPORT OF THE TRUSTEES - continued
## **INVESTMENT POLICY**
The Trustees have considered the investment policy at their regular meetings and at meetings with the investment managers who have discretionary management powers. Asset allocation between investment categories has been reviewed in the context of the Benchmarks and Guidelines agreed between the Trustees and the investment managers. Further investment information relating to the Total Return Policy is provided in Note 4 to the accounts.
## **RESERVES**
As a result of the implementation of the unapplied total return policy, in accordance with the Order and the Operational Guidance issued by the Charity Commission, the requirements for a specific reserves policy do not apply. The Trustees implement policies and maintain funds such that the even-handed approach is maintained and is reflected appropriately in the investment policy which draws a balance between capital growth and sustainable investment income. This results in an allocation after due consideration of Unapplied Total Return to Endowment and Distribution funds.
## **PLANS FOR THE FUTURE**
As described in note 4, the Trustees’ policy is to secure grant making for at least three years. This enables the Trust to continue its grant making despite fluctuations in investment values.
The Trustees intend to continue with current grant making policies and to further develop networks of referrers to ensure funds budgeted for grant making are used to provide support as quickly and efficiently as possible using funds in the Distribution Reserve. At a meeting of the Trustees in February 2026, a budget for 2026 was set at £12,000 per month for Respite/Convalescence and Relief in Need, being the combined total in accordance with the new objects.
J. COOKE N.M. HEATH ……………………….. ……………………….. Trustee Trustee 4[th] June 2026
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF VICTORIA CONVALESCENT TRUST
I report on the accounts of the Victoria Convalescent Trust for the year ended 31[st] December 2025.
This report is made solely to the Charity's Trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
## Respective Responsibilities of Trustees and Examiner
As the Charity’s Trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of section 144 of the Charities Act 2011 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under Section 145(5)b of the Act, whether particular matters have come to my attention.
## Basis of Independent Examiner’s Report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. The examination also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, no opinion is given as to whether the accounts present “a true and fair view” and the report is limited to those matters set out in the statement below.
## Independent Examiner’s Statement
In connection with my examination, no matter has come to my attention:
- 1) which gives me reasonable cause to believe that in any material respect the requirements
- to keep accounting records in accordance with Section 130 of the Charities Act 2011; or
- • to prepare accounts which accord with the accounting records; comply with the accounting requirements of the 2011 Act;
have not been met; or
- 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Cumberland House 24-28 Baxter Avenue Southend-on-Sea Essex SS2 6HZ
4[th] June 2026
S. Lescott, FCCA Xeinadin South Essex Limited
- 8 -
## VICTORIA CONVALESCENT TRUST
## STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31ST DECEMBER 2025
||┌────────────────── 2025|┌────────────────── 2025|┌────────────────── 2025|───────────────┐|───────────────┐|┌────────────────── 2024|┌────────────────── 2024|┌────────────────── 2024|───────────────┐|───────────────┐|
|---|---|---|---|---|---|---|---|---|---|---|
||Income|Endowment|Distribution|Distribution||Income|Endowment|Distribution|Distribution||
||Fund|Fund|Fund|Reserve|Total|Fund|Fund|Fund|Reserve|Total|
|**Income from:**|£|£|£|£|£|£|£|£|£|£|
|Investment income:|||||||||||
|Equity and Fixed Interest|87,279|-|-|-|87,279|83,240|-|-|-|83,240|
|COIF|16,077|-|-|-|16,077|16,325|-|-|-|16,325|
|Interest|7,185|-|-|-|7,185|10,366|-|-|-|10,366|
|Donations|50|-|-|-|50|-|-|-|-|-|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Total**Income|110,591|-|-|-|110,591|109,931|-|-|-|109,931|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Expenditure on:**|||||||||||
|Cost of Generating Funds:|||||||||||
|Investment management fees|-|31,417|-|-|31,417|-|29,993|-|-|29,993|
|Charitable Expenditure:|||||||||||
|Services and Equipment|-|-|39,355|-|39,355|-|-|17,310|-|17,310|
|Convalescence and Respite grants|-|-|106,739|-|106,739|-|-|128,300|-|128,300|
|Support costs (note 2)|-|-|33,966|-|33,966|-|-|33,073|-|33,073|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Total Expenditure**|-|31,417|180,060|-|211,477|-|29,993|178,683|-|208,676|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Net Income/(Expenditure)**|||||||||||
|**Before Transfers**|110,591|(31,417)|(180,060)|-|(100,886)|109,931|(29,993)|(178,683)|-|(98,745)|
|Transfer between funds (note 3)|(110,591)|(189,409)|200,000|100,000|-|(109,931)|(190,069)|195,000|105,000|-|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Net (Expenditure)/Income**|-|(220,826)|19,940|100,000|(100,886)|-|(220,062)|16,317|105,000|(98,745)|
|**Other Recognised Gain/(Losses)**|||||||||||
|Gains/(Losses) on Investment Assets|-|383,227|-|-|383,227|-|489,920|-|-|489,920|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Net Movement in Funds**|-|162,401|19,940|-|282,341|-|269,858|16,317|105,000|391,175|
|**Reconciliation of Funds**|||||||||||
|**Fund Balances B/Fwd 01.01.25**|-|4,844,462|85,447|533,132|5,463,041|-|4,574,604|69,130|428,132|5,071,866|
||**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|**──────**|
|**Fund Balances C/Fwd 31.12.25**|-|5,006,863|105,387|633,132|5,745,382|-|4,844,462|85,447|533,132|5,463,041|
||══════|══════|══════|══════|══════|══════|══════|══════|══════|══════|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The Endowment Fund represents the permanent endowment of the fund which has, as a result of the order from the Charity Commission, become a fund including permanent endowment and unapplied total return as detailed in notes 4, 5 and 6. The notes on pages 11 to 18 form part of these financial statements.
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VICTORIA CONVALESCENT TRUST
## BALANCE SHEET AT 31ST DECEMBER 2025
||||2025||2024|
|---|---|---|---|---|---|
||Notes|£|£|£|£|
|FIXED ASSETS||||||
|Investments at market value||||||
|Equity and Fixed Interest|4||5,039,119||4,717,107|
|COIF|4||547,569||575,092|
||||──────||──────|
||||5,586,688||5,292,199|
|CURRENT ASSETS||||||
|Debtors|7|15,219||11,487||
|Cash at bank||127,700||149,523||
|Cash at investment manager|8|40,226||32,402||
|||──────||──────||
|||183,145||193,412||
|CREDITORS: Amounts falling||||||
|due within one year|9|(24,451)||(22,570)||
|||──────||──────||
||||158,694||170,842|
||||──────||──────|
|NET ASSETS|||5,745,382||5,463,041|
||||══════||══════|
|FUNDS OF THE CHARITY||||||
|ENDOWMENT FUND|||5,006,883||4,844,462|
|DISTRIBUTION FUND|||105,387||85,447|
|DISTRIBUTION RESERVE FUND|10||633,132||533,132|
||||──────||──────|
|TOTAL CHARITY FUNDS|||5,745,382||5,463,041|
||||══════||══════|
Approved by the Trustees on 4[th] June 2026 and signed on their behalf by:
N.M. HEATH ................................................ ) ) ) TRUSTEES J. COOKE ) ................................................ )
The notes on pages 11 to 18 form part of these financial statements.
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VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
## 1. ACCOUNTING POLICIES
## Basis of Accounting
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS102 and the reporting currency is GBP. All amounts have been rounded to the nearest £.
## Going Concern
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
The Trustees are confident that the Victoria Convalescent Trust is a going concern with cash assets and substantial quoted investments, as detailed in Note 4, which are regularly reviewed with the Investment Managers.
## Income Recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are recognised when the Trust has been notified in writing of both the amount and settlement date.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been received. The Trustees do not consider the value of dividends declared but not paid at the balance sheet date to be material to the understanding of the accounts.
## Fund Accounting
As described in the Report of the Trustees, the Trust operates a Total Return Policy. The funds established to operate this policy are outlined below:
- The Income Fund shows income received during the year and represents Unapplied Return.
- • The Endowment Fund holds the Permanent Endowment and any Unapplied Returns from income or capital gains.
- The Distribution Reserve holds returns applied after distribution to current beneficiaries as described in Note 10.
- The Distribution Fund holds funds allocated by the Trustees from the Distribution Reserve for use in the year.
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VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
## 1. ACCOUNTING POLICIES – continued
## Cash Flow
The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirements to prepare such a statement by virtue of its early adoption of Update Bulletin 1 of the Charities SORP (FRS 102)
## Accounting Estimates and Judgements
The most significant areas of adjustment and key assumptions that affect items in the accounts relate to estimating the liability for grant commitments. With respect to the next reporting period, 2026, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets.
## Fixed Asset Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## Expenditure Recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust.
Grants are charged in the year in which they become payable.
Expenditure on capital items costing less than £1,000 is written off in the year of acquisition.
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VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
1. ACCOUNTING POLICIES – continued
Unapplied Total Return Policy
As a result of the implementation of this policy, it is not considered relevant to divide the balance sheet between different funds.
## Pension Contributions
The Trust makes contributions to a defined contribution pension scheme for one staff member which are charged in the accounts as paid.
## Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
## 2. SUPPORT COSTS
||||
|---|---|---|
|SUPPORT COSTS|2025|2024|
||£|£|
|Grants Co-ordinator salary|22,260|21,656|
|Grants Office expenses|1,649|1,653|
|Accounting and administration|6,200|6,120|
|Governance costs:|||
|– Independent Examination|2,900|2,800|
|– Trustees’ expenses|391|328|
|Bank charges|60|62|
|Sundries|87|35|
|Computer costs|419|419|
||─────|─────|
||33,966|33,073|
||═════|═════|
The Trust employed one member of staff throughout the year and no employee received emoluments in excess of £60,000. Pension contributions to defined contribution pension schemes totalling £1,260 (2024: £1,226) are included within salary costs.
Two (2024: Two) trustees claimed expenses during the year covering training, travel, postage and stationery amounting to £391 (2024: £328). There were no other related party transactions.
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VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
## 3. TRANSFERS
Transfers reflect the application of the total return of the Trust to the Distribution Fund and the Distribution Reserve Fund as set out below:
|Distribution Reserve Fund as set out|below:||||
|---|---|---|---|---|
|||||Distribution|
||Income|Endowment|Distribution|Reserve|
||Fund|Fund|Fund|Fund|
||£|£|£|£|
|**2025**|||||
|Unapplied Total Return allocated|-|(300,000)|-|300,000|
|Annual allocation|-|-|200,000|(200,000)|
|Income added to endowment|(110,591)|110,591|-|-|
||─────|─────|─────|─────|
||(110,591)|(189,409)|200,000|100,000|
||═════|═════|═════|═════|
|**2024**|||||
|Unapplied Total Return allocated|-|(300,000)|-|300,000|
|Annual allocation|-|-|195,000|(195,000)|
|Income added to endowment|(109,931)|109,931|-|-|
||─────|─────|─────|─────|
||(109,931)|(190,069)|195,000|105,000|
||═════|═════|═════|═════|
|INVESTMENTS|||2025|2024|
||||£|£|
|Market value at 1stJanuary 2025|||5,292,199|4,886,198|
|Acquisitions at cost|||754,131|605,762|
|Disposal proceeds|||(842,869)|(689,681)|
|Realised gains/(losses) on investment assets|||4,171|(6,566)|
|Unrealised gains/(losses) on investment assets|||379,056|496,486|
||||──────|──────|
|**Market value as at 31st December 2025**|||5,586,688|5,292,199|
||||══════|══════|
|**Historical cost as at 31st December 2025**|||3,215,912|2,973,734|
||||══════|══════|
|**Investments at Market Value Comprised**|||2025|2024|
||||£|£|
|**Quoted**|||||
|Equity and Fixed Interest|||5,039,119|4,717,107|
|COIF|||547,569|575,092|
||||──────|──────|
||||5,586,688|5,292,199|
||||══════|══════|
## 4. INVESTMENTS
All equity shares are UK listed.
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VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
## 4. INVESTMENTS – continued
Quoted investments comprise investments listed on the London Stock Exchange. At 31[st] December 2025 there were five holdings which are considered material (over 5% of portfolio by value) being the investments in the JP Morgan American Investment Trust valued at £475,167, the HSBC Exchange Traded Fund S&P500 valued at £375,818, the Schroder Investment Fund US Large Capital Fund valued at £484,512, the Polar Capital Technology Trust valued at £348,000 and Ishares Core S&P 500 valued at £413,856.
The fixed interest and equity holdings are managed by Quilter Cheviot and are registered under the name of Quilter Nominees Limited. In the event of default by Quilter Cheviot, supplemental account protection is offered to eligible claimants by the Financial Services Compensation Scheme.
As disclosed in the 2001 accounts, the Trustees exercised their powers to expend unapplied total return as granted by the Order dated 14th August 2001, on 9th November 2001. The unapplied total return (UTR) was calculated by establishing the cost of all assets held at 1st January 1999 and adding subsequent endowment receipts. This figure amounted to £2,258,987 and gave an unapplied total return of £1,484,877 as calculated from the audited accounts at 31st December 2000.
At the end of 2025, the Unapplied Total Return (UTR) stood at £767,044 and the Trustees applied £300,000 to the Endowment Fund and £300,000 to the Distribution Reserve. This restored the Distribution Reserve to a level considered adequate by the Trustees to sustain activities for three years without further transfers.
|5.|UNAPPLIED TOTAL RETURN (UTR)|2025|2024|
|---|---|---|---|
|||£|£|
||Balance at 1stJanuary 2025|273,226|274,893|
||Income in year|110,591|109,931|
||Unrealised gains/(losses) on investments|383,227|488,402|
|||──────|──────|
||UTR before application|767,044|873,226|
||Application to Distribution Reserve|(300,000)|(300,000)|
||Application to Permanent Endowment|(300,000)|(300,000)|
|||──────|──────|
||UTR at 31stDecember 2025|167,044|273,226|
|||══════|══════|
||Represented by:|||
||Balance retained in Endowment Fund|167,044|273,226|
|||══════|══════|
- 15 -
VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2025
## 6. PERMANENT ENDOWMENT
The Permanent Endowment represents funds established by Sir Max Waechter, the founder of the constituent charities, together with further amounts applied in accordance with the Total Returns Policy adopted in 2001. Movements on the Permanent Endowment are set out below:
|||2025|2024|
|---|---|---|---|
|||£|£|
||Balance at 1stJanuary 2025|4,569,718|4,299,711|
||Management fees|(31,417)|(29,993)|
||Application of Total Return|300,000|300,000|
|||──────|──────|
||Balance at 31stDecember 2025|4,838,301|4,569,718|
|||══════|══════|
|7.|DEBTORS|2025|2024|
|||£|£|
||Income receivable|15,219|11,487|
|||═════|═════|
|8.|CASH AT INVESTMENT MANAGER|2025|2024|
|||£|£|
||Cash held at the year end by Quilter Cheviot is held for the|||
||following purposes:|||
||For reinvestment|-|-|
||To support Grant Making|40,226|32,402|
|||─────|─────|
|||40,226|32,402|
|||═════|═════|
|9.|CREDITORS|2025|2024|
|||£|£|
||Independent Examination|2,900|2,800|
||Accountancy|800|2,070|
||Investment Manager’s fees|8,204|7,700|
||Other creditors, including taxation and social security|208|579|
||Grants|12,339|9,421|
|||─────|─────|
|||24,451|22,570|
|||═════|═════|
- 16 -
VICTORIA CONVALESCENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued
## 10. DISTRIBUTION RESERVE FUND
The Trustees have established a reserve fund in which total return allocated for distribution is to be held to protect the interests of current beneficiaries in the event of a substantial fall in investment values. The Trustees agreed to the release of £200,000 from the Distribution Reserve in 2025 and authorised up to £130,000 in 2026 to the Distribution Fund which is maintained in readily accessible cash reserves. At the end of 2025, the Trustees released £300,000 from the Unapplied Total Return to the Distribution Reserve Fund. The assets of the Fund are held within cash and investments managed by the Trust’s Investment Managers as detailed in Note 4.
## 11. OUTSTANDING GRANTS
Grants promised but not taken up during the year and which remained outstanding at 31[st] December 2025 amounted to £12,239 (2024: £9,421). It is anticipated that a material proportion of these promises will be paid out in 2025 as suitable accommodation becomes available and beneficiaries take up grants previously offered.
## 12. TRUSTEES’ INTERESTS
The Trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2024: £nil). Expenses paid to the Trustees in the year are detailed in Note 2.
## 13. ANALYSIS OF NET ASSETS BETWEEN FUNDS
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Endowment Distribution Distribution|Total|
|Fund|Fund|Reserve|Funds|
|2025|2025|2025|2025|
|£|£|£|£|
|Fixed assets|5,015,067|-|571,621 5,586,688|
|Current assets|-|121,634|61,551|183,145|
|Creditors due within one year|(8,204)|(16,247)|-|(24,451)|
|────── ────── ────── ──────|
|5,006,863|105,387|633,132 5,745,382|
|══════ ══════ ══════ ══════|
|ANALYSIS OF NET ASSETS BETWEEN FUNDS (2024)|
|Endowment Distribution Distribution|Total|
|Fund|Fund|Reserve|Funds|
|2024|2024|2024|2024|
|£|£|£|£|
|Fixed assets|4,852,162|-|440,037 5,292,199|
|Current assets|-|100,317|93,095|193,412|
|Creditors due within one year|(7,700)|(14,870)|-|(22,570)|
|────── ────── ────── ──────|
|4,844,462|85,447|533,132 5,463,041|
|══════ ══════ ══════ ══════|
**----- End of picture text -----**
- 17 -
VICTORIA CONVALESCENT TRUST
## NOTES TO THE FINANCIAL STATEMENTS - continued
## 14. FINANCIAL INSTRUMENTS
**----- Start of picture text -----**
||||
|---|---|---|
|14. FINANCIAL INSTRUMENTS|2025|2024|
|£|£|
|Financial assets measured at fair value|
|through income and expenditure|5,586,688 5,292,199|
|Financial assets measured at amortised cost represent debtors|15,219|11,487|
|Financial liabilities are the creditors of the Trust|(24,451)|(22,570)|
|────── ──────|
|5,577,456 5,281,116|
|══════ ══════|
**----- End of picture text -----**
## 15. FUND RAISING POLICY
The Charity does not actively fund raise but accepts donations.
## 16. RELATED PARTY TRANSACTIONS
During the year grants of £21,427 were made to the Huntington’s Disease Association of which Mr. N. Heath is a trustee.
There were no other related party transactions in the year.
- 18 -