THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES (A company limited by guarantee) Registered provider number: L4207 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Registered No: 3488197 Charity Registered No: 1067408 MORRIS CROCKER STATION HOUSE NORTH STREET HAVANT HAMPSHIRE PO9 10U
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES (A company limited by guarantee) REGISTERED OFFICE : 61 Coronation Cottages Northern Parade Portsmouth Hampshire PO2 9LZ AUDITORS : Knox Cropper LLP Office Suite 1 Hasiemere House Lower Street Surrey GU27 2PE SOLICITORS : Blake Morgan LLP New Kings Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3LG PRINCIPAL BANKERS : Lloyds Bank ple Portsmouth Business Centre 38 London Road North End Portsmouth Hampshire PO2 OLR ACCOUNTANTS Morris Crocker Chartered Accountants Station House Havant Hampshire PO9 1QU
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page 1-4 5-8 10 11 12 13-23 24 25 Contents Report of the Board Independent Auditors' report Income and expenditure account Balance sheet Statement of Changes in Reserves Cash flow statement Notes to the financial statements Detailed income and expenditure account Operating costs
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD - 31 MARCH 2025 The Board present their report and audited financial statements for the year ended 31 March 2025. Objects The Charitable Company is established as a registered provider of social housing with the Homes & Communities Agency in order to provide and manage houses or dwellings and any associated amenities for aged persons. Principal activity The principal activity of the Charitable Company is that of administering the properties and associated amenities for the benefit of the occupants. Financial performance The Charitable Company has realised a surplus for the financial year of £320,518. The retained surplus at 31 March 2025 is £4,563,534. The Board continues to actively pursue future developments, whilst retaining reserves for future major and cyclical repairs Board members The Board members who currently hold office are; Mrs SHewett Cllr F Jonas Mis A O'Hara Mr R Perry Mr D Simpson - Chairman Mr D Hill Ms A Jones (Resigned 8 January 2025) Members' interests The liability of every member of the Charitable Company is limited to £5 in the event of the Charitable Company being wound up. Fixed assets Full disclosure of all matters relating to fixed assets is set out in the notes to the financial statements. Accounting policies The accounting policies are set out in Note 1 on pages 13 to 17 of the financial statements. Board member responsibilities The Board members are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company and housing association legislation requires the Board members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company and of the income and expenditure of the Charitable Company for the period in preparing those financial statements, the Board members are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material 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 Charitable Company will continue in business. 1
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD - 31 MARCH 2025 2 The Board members are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the accounts comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Value for money The Board is committed to achieving value for money in all areas of its business by managing all assets and resources efficiently. The Board sets objectives and allocates resources appropriately to achieve best possible outcomes. This includes improvements to property to enhance the quality of life of those we support, developing the capability of the staff team by regular staff training and valuing their contribution, having effective business practices, including risk assessment, strengthening policies and procedures to reduce administration costs, improve performance, service delivery and identifying potential changes to improve value for money. The Association's current rent charges remain in line with expected social rents across all properties. Additionally, superficial inspections are made on a random basis at a selection of properties to ascertain the general conditions. The properties across the estate have been found to be well maintained, internal and external decorations were in satisfactory order and there was no evidence of essential major repairs required. The Association maintains an up to date and agreed historical record of expenditure on each housing unit of the properties of the Homes. The Board feels this this is of great assistance when it comes to identifying refurbishments that need to be made when void rents occur. It was also recognised by the Board that this was a very useful internal control over such an important part of the Association's expenditure as it would allow a means of comparison of costs which are similar in nature. Furthermore, it would allow the Association to recognise a financial commitment in terms of those units where long term residents have been in situ and expenditure will be necessary in the future. The Association carries out all cyclical and annual maintenance when due. Almost all of the properties have had new boilers fitted and others have had new bathrooms and kitchens fitted during this year. This has been evidenced in the Association's accounts which show the spend on maintenance per unit in the year indicating that the general condition of the properties as a whole continue to improve, as follows: Total repairs and maintenance costs Social housing units in management Maintenance cost per unit 2025 116,730 82 1,424 2024 120,570 82 1,470 The overall percentage of rent lost due to voids has been exceptionally low and better than the sector average at just 0.4% (2024: 0.2%).
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD - 31 MARCH 2025 Value for Money is also measured by the Board by demonstrating a reasonable Return on Assets in the accounts, as follows: 2025 2024 Operating surplus from social housing activities 149,696 Net book value of properties held for social letting 1,936,694 88,589 Financial return on assets 1,985,904 7.73% 4.46% The Board is committed to improving the financial return on assets year on year through annual budget setting and monitoring of monthly variance reports. 3 The Board is also committed to keeping the cash held at bank and in hand as secure as possible in the current economic climate. A variety of options have been researched and discussed by the board including the additions of investment property, government gilts as well as other investment options such as increasing current holdings in listed investments and corporate bonds. The health and safety of the site and its residents is a key priority for the Association as demonstrated through regular site inspections to ascertain any particular areas of the site that could be potentially hazardous for residents, as well as the appointment of an external health and safety officer who conducts annual risk assessments to give further comfort to the Board and residents alike. During the year continued investment and routine maintenance has been made to improve and maintain the gardens, which has been well received by residents, this spend totalled £33,512 in 2025 compared to £24.912 in 2024. The Association seeks to provide Social Value for its residents. This is delivered through a variety of social events and activities taking place in the communal areas of the site organised by the site Warden, where regular resident's meetings are also held to give opportunity for discussion of any concerns or ideas. 'The events are generally well attended and received by the community of residents. The Value for Money metrics are as follows: Reinvestment 0.94% (2024: 2.74%) New supply delivered 0% (2024: 0%) Gearing -33.04% (2024: -20.41%) EBITDA MRI Interest Cover N/A (2024: N/A) - no borrowings Social housing cost per unit £4,385.38 (2024: £4,728.20) Operating margin 29.39% (2024: 20.81%) Return on capital employed 4.22% (2024: 2.59%) Reserves The Charitable Company internally designates its free income and expenditure reserves on the following basis: Cyclical Repairs Major Repairs Development 50,736 200,000 900,000 The cyclical maintenance reserve has been established to cover planned internal and external decorating of the Charitable Company's housing properties. The major repairs reserve has been established to cover expenditure on major repairs, improvements and replacements of equipment in the Charitable Company's housing properties. The development reserve has been established to cover expenditure on future development opportunties.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD - 31 MARCH 2025 4 Code of Governance The Board has taken all of the principles contained within the National Housing Federation Code of Governance and complies in all respects, Statement of disclosure to auditor (a) so far as the Board members are aware, there is no relevant audit information of which the Charitable Company's auditors are unaware, and (b) they have taken all the steps that they ought to have taken as Board members in order to make themselves aware of any relevant audit information and to establish that the Charitable Company's auditors are aware of that information. Internal Control The Board acknowledge their ultimate responsibility for establishing and maintaining the whole system of internal control that is appropriate to the various business environments in which it operates and for reviewing effectiveness of those controls. The Board recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the Charitable Company's assets and interests. In meeting its responsibilities, the Board has adopted a risk-based approach to internal controls which are embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Charitable Company is exposed. The Board confirms that there is an ongoing process for identifying, evaluating and managing significant risks faced by the Charitable Company. This process has been in place throughout the year under review, up to the date of the annual report, and is regularly reviewed by the Board. Auditors A resolution proposing the re-appointment of Knox Cropper LLP as auditors to the Charitable Company will be put to an Annual General Meeting. By order of the Board Chairman Mr D Simpson 61 Coronation Cottages Northern Parade Portsmouth PO2 9LZ Date 8.8-25.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS; REPORT TO THE MEMBERS We have audited the financial statements of The Lord Mayor Of Portsmouth's Coronation Homes set out on pages 9 to 23 for the year ended 31 March 2025. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102. In our opinion the financial statements: - give a true and fair view of the state of the Charitable Company's affairs at 31 March 2025 and of its income and expenditure for the year then ended; and - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the association in accordance with the ethical requirements that are relevent to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the board members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the board members with respect to going concern are described in the relevant sections of this report. Other information The board members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this information, we are required to report the fact. 5
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS' REPORT TO THE MEMBERS We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit: - the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the director's report has been prepared in accordance with applicable legal requirements Matters on which we are required to report by exception In light of the knowledge and understanding of the assocation and its environment in the course of the audit, we have not identified material mistatements in the Board Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of board members' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. Respective responsibilities of the board and auditor As explained more fully in the Board's Responsibilities Statement set out on pages 1 and 2, the board members (who are also the directors of the association for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the board members determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the board members are responsible for assessing the association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the association or the cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonable be expected to influence the econimic decisions of users taken on the basis of these financial statements. 6
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS' REPORT TO THE MEMBERS Identification and assessment of irregularities including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below: • we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charitable Company, including, but not limited to, the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022; • we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; • we understood how the Charitable Company is complying with those frameworks via communication with those charged with governance, together with the review of the Charitable Company's documented policies and procedures. • we assessed the susceptibility of the Charitable Company's financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements. These included risks associated with revenue recognition, application of accounting estimates, and management override of controls, which were discussed and agreed by the audit team. • our approach included agreeing the Charitable Company's recognition of income to the terms of tenancy agreements, reviewing the assumptions used and controls applied in the calculation of accounting estimates, the review of journal entries processed in the accounting records and the investigation of significant and unusual transactions identified from our review of the accounting records. • based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the reporting to the board members with respect to the application of the documented policies and procedures and review of the financial statements to ensure compliance with the reporting requirements of the Charitable Company. • we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. Audit response to the risk of irregularities including fraud Based on the results of our risk assessment, our procedures included, but were not limited to: • performing analytical procedures to identify any unusual or unexpected relationships. • evaluating whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting. • assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias. • agreeing financial statement disclosures to underlying supporting documentation. • reading the minutes of meetings of those charged with governance. • testing of journal entries to address the risk of fraud through management override. • incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures. 7
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS' REPORT TO THE MEMBERS 8 There are inherent limitations in the audit procedures described above and, the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the association's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the association and the association's members as a body, for our audit work, for this report, or for the opinions we have formed. Mateu Matthew Elkins FCA (Senior Statutory Auditor) for and on behalf of Knox Cropper LLP Chartered Accountants and Statutory Auditors 2018/2025 Office Suite 1 Haslemere House Lower Street, Hasiemere Surrey, GU27 2PE
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Note 2025 2024 TURNOVER Operating costs 2 OPERATING SURPLUS Interest receivable and other income 4 SURPLUS FOR THE FINANCIAL YEAR TOTAL COMPREHENSIVE INCOME FOR THE YEAR 575,908 (385,116) 190,792 129,726 320,518 320,518 527,020 (409,386) 117,634 (9,550) 108,084 108,084 None of the Charitable Company's activities were acquired or discontinued during the above two financial years. The notes on pages 13 to 23 form part of these financial statements. Chairman Mr I mapson Board Member Mr RPerry
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES BALANCE SHEET AS AT 31 MARCH 2025 Note 2025 FIXED ASSETS € Tangible fixed assets - Housing Properties Other tangible fixed assets Investment properties Other fixed asset investments 9 10 1,936,694 8,100 1,467,881 820,659 1,985,904 8,959 1,427,900 741,022 4,233,334 CURRENT ASSETS Debtors Cash at bank and in hand 4,163,785 12 8,882 639,916 648,798 5,829 405,229 411,058 CREDITORS: Amounts falling due within one year NET CURRENT ASSETS 13 (40,498) (41,636) 608,300 369,422 TOTAL ASSETS LESS CURRENT LIABILITIES 4,841,634 4,533,207 CREDITORS: Amounts falling due after one year 14 (278,100) (290,191) TOTAL NET ASSETS 4,563,534 4,243,016 RESERVES Income and expenditure account 4,563,534 4,563,534 4,243,016 4,243,016 The financial statements were approved and authorised for issue by the Board on 8-8-25 its behalf by and signed on Mr D Simpson any. Chairman Board Member Mr R Perry The notes on pages 13 to 23 form part of these financial statements. 10 2024
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2025 11 Balance as at 1 April 2023 Period ended 31 March 2024: Total comprehensive income for the year Balance as at 31 March 2024 Period ended 31 March 2025: Total comprehensive income for the year Balance as at 31 March 2025 Income & Expenditure reserve € 4,134,932 108,084 4,243,016 320,518 4,563,534 Total 4,134,932 108,084 4,243,016 320,518 4.563,534
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 2025 Note 17 Net cash flow from operating activities Cash flow from investing activities Income from investments Purchase of tangible fixed assets Purchase of investments 219,725 76,717 (18,227) Net cash outflow from investing activities Cash flow from financing activities Cash inflows from new borrowing Repayments of borrowing Net cash flow from financing activities Net increase/(decrease) in cash and cash equivalents in the period 58,490 278,215 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 405,229 39,91( 12 2024 € 118,633 71,881 (54,430) (50,000) (32,549) : 86,084 319,145 405,229
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13 1. ACCOUNTING POLICIES 1.1 1.2 1.3 1.4 Legal Status The Charitable Company is a Registered Provider of Social Housing and is incorporated under the Companies Act 2006. The registered office is 61 Coronation Cottages, Northern Parade, Portsmouth, Hampshire, PO2 9LZ. The Charitable Company constitutes a public benefit entity as defined by FRS 102. Basis of Accounting The financial statements are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2022. The financial statements are prepared in sterling, which is the functional currency of the Charitable Company. Monetary amounts in these financial statements are rounded to the nearest f. Turnover Turnover represents rental and service charge income receivable in the year net of rent and service charge losses from voids and amortisation of government grants. Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Tangible Fixed Assets and Depreciation Tangible fixed assets (including social housing properties) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, development costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in significant extension of the useful economic life of the property. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value of each asset, of each asset on a systematic basis over its expected useful life, as follows: Freehold land and buildings Main Fabric and roof structure Bathrooms and windows Kitchens Central heating system Leasehold land and buildings Fixtures and fittings Computer equipment Straight line over the following lives: 50 years 30 years 20 years 15 years As above, or over life of lease if shorter 10% straight line 25% straight line
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14 1.4 1.5 1.6 1.7 1.8 Tangible Fixed Assets and Depreciation (cont'd) Freehold land and assets in the course of construction are not depreciated. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income and expenditure account. The useful economic lives of all tangible fixed assets are reviewed annually. Impairment of fixed assets Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. The level at which an impairment is assessed is considered at scheme level. The key indicators considered are: - A change in demand for property - Obsolescence of a property - A change in government policy If such indication exists, the recoverable amount is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in expenditure through the statement of comprehensive income. No such indications were noted and therefore no review was considered necessary. Investment properties Investment properties have a readily assessable market value and thus the fair value can be measured reliably without undue cost or effort. These properties are therefore measured at fair value at each reporting date with changes in fair value recognised in the statement of comprehensive income. Land obtained speculatively is accounted for as investment property. Properties rented to provide social housing are not investment properties. Government grants Social housing or other government grants are received to finance social housing properties. These grants are recognised at the fair value of the asset received or receivable. Where the assets are accounted for using the cost model then the government grant is accounted for using the accruals model. The difference between the fair value of the asset and the consideration is recognised as a liability and amortised over the useful economic life of the asset. This amortisation is recognised within turnover. Under certain circumstances, primarily following the sale of a property, the grant is repayable or recyclable but this is often restricted to the net proceeds of sale. Where government grants are required to be recycled, a liability is included to recognise this obligation. Leasing and Hire Purchase Rentals payable under operating leases are taken to the income and expenditure account on a straight line basis over the lease term.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.9 1.10 Pensions The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the income and expenditure account. Investments Fixed asset investments are stated at fair value. 1.11 1.12 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less and bank overdrafts. Financial instruments The Charitable Company has elected to apply the provisions of Section 11 Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial assets are recognised in the balance sheet when the Charitable Company becomes party to the contractual provisions of the instrument. Financial assets are classified into specialised categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Basic financial assets Basic financial assets, which include rent arrears and other receivables and cash and bank balances, are intially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through income and expenditure are measured at fair value. Other financial assets Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in income and expenditure, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. Rent arrears, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. 15
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.12 Financial instruments (cont'd) Impairment of financial assets Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the intial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in income and expenditure. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through income and expenditure are measured at fair value. Other financial liabilities Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in income and expenditure in finance costs or finance income as appropriate, unless they are included in a hedging arrangement. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the Charitable Company's obligations are discharged, cancelled, or they expire. 1.13 Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.14 Deferred Taxation The Charitable Company has charitable status and a provision for deferred taxation is not appropriate. 1.15 Going Concern The directors have at the time of approving the financial statements, a reasonable expectation that the association has adequate resources to continue in operational existence for the foresceable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. 1.16 Judgements and key sources of estimation uncertainty In the application of the Charitable Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Critical judgements The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. Fair value of investment properties Fair value has been determined using the House Price Index as published by the Land Registry for the Portsmouth area. Properties rented to provide social housing are not investment properties. March 2025 March 2024 UK House Price Index for the Portsmouth area 102.80 148.50 Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. Estimated useful lives The useful life of housing properties and their components has been estimated using the National Housing Federation matrix of property components as a basis. 17
3. 1. THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 SOCIAL HOUSING INCOME AND EXPENDITURE Income from social housing lettings Rents receivable excluding service charges Service charges receivable Amortisation of social housing grants Turnover from social housing lettings Social housing operating costs Operating surplus from social housing activities Net surplus from social housing activities Rent losses from voids in year (deducted above) Turnover from social housing lettings Income from market rented properties Income from lettings Social housing accommodation units in management (including scheme managers) OPERATING SURPLUS The operating surplus is stated after charging:- Depreciation Loss on disposal of assets Auditors remuneration INTEREST RECEIVABLE AND OTHER INCOME Investment gains/(losses) Increase/(decrease) in fair value Bank interest received Other income 2025 433,797 63,409 12,091 509,297 (359,601) 149,696 149,696 1,645 509,297 66,6117 75,908 82. 2025 € 67,148 1,148 5,280 2025 79,637 39,981 10,106 129,726 18 2024 € 390,892 59,909 12,091 462,892 (374,303) 88,589 88,589 794 462,892 64,128 527,020 82 2024 € 68,379 7,725 4,800 2024 32,689 (50,000) 7,753 (9,550)
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 5. EMPLOYEES Staff costs:- Wages and salaries Social security costs Pension Costs 19 6. 2025 € 74,382 2,362 76,744 2024 70,220 2,141 72,361 The average weekly number of full time equivalent employees during the year was 2(2024: 2). BOARD AND KEY MANAGEMENT PERSONNEL REMUNERATION The aggregate amount of emoluments payable to the Registered Provider's directors or former directors (including board members where remunerated) in relation to the period of account is set out below. The Housing Manager is defined as a director according to Part 2 Para 10 of the Accounting Direction for Private Registered Providers of Social Housing 2022. 2025 € Emoluments paid to directors who are executive staff members Emoluments paid to directors who are not executive staff members 31,103 31,103 Emoluments payable to the highest paid director, excluding pension contributions 31,103 2024 29,150 29,150 29,150 TAXATION The Charitable Company is a registered charity with approved charitable status from HM Revenue & Customs and no taxation charge arises.
9. THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 TANGIBLE ASSETS - HOUSING LAND AND BUILDINGS Cost At 1 April 2024 Additions Replacement components Disposals Transfers of schemes in progress At 31 March 2025 Depreciation At 1 April 2024 Charge for the year On disposals At 31 March 2025 Net Book Value at 31 March 2025 Net Book Value at 31 March 2024 INVESTMENT PROPERTIES At 1 April 2024 Additions Disposals Transfers Movement in fair value At 31 March 2025 Long Leaschold Held for Letting 2,364,581 18,228 (7,205) 2,375,605 611,601 62,079 (6,057) 67,623 1,707,981 1,752,980 Freehold Held for Letting Assets under construction 404,335 : 404,335 171,412 1,210 - 175,622 228,713 232,923 2025 2024 1,427,900 1,477,900 : 39,981 1,467,88L (50,000) 1,427,900 20 Total 2,768,916 18,228 (7,205) 2,779,940 783,013 66,289 (6,057) 843,246 1,936,694 1,985,903
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 10. INVESTMENTS 2025 Cost or valuation At 1 April 2024 Accumulated income not distributed Additions Gain/(loss) on revaluation of listed investments At 31 March 2025 € 741,022 43,528 - 36,109 820,659 Cost € 255,000 2025 Fair Value € Cost 820,659 55,00 21 2024 € 658,333 50,000 32,689 741,022 2024 Fair Value € 741,022 Listed - UK stock exchange Investments Fixed asset investments are stated at fair value. 11. TANGIBLE ASSETS - OTHER Cost At 1 April 2024 Additions Disposals At 31 March 2025 Depreciation At 1 April 2024 Charge for the year Eliminated on disposal At 31 March 2025 Net Book Value at 31 March 2025 Net Book Value at 31 March 2024 Leasehold Office Accommodation 9,705 4,852 194 5,046 4,659 4,853 = Leasehold Car Park Extension 5,027 5,027 2,518 101 2,619 2,408 2,509 Fixtures, Fittings and Equipment 15,390 15,390 13,793 564 14,357 1,033 1,597 Total 30,122 30,122 21,163 859 22.027 8,100 8,959
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. DEBTORS Rent and service charges receivable Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Rent and service charges received in advance Deferred grant income Other taxes and social security Other creditors Accruals Bank loans 14. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR Deferred grant income Bank Loans 15. DEFERRED INCOME Social housing government grants:- At 1 April 2024 At 31 March 2025 Amortisation of social housing government grants:- At 1 April 2024 Released to income in the year At 31 March 2025 Carrying amount at 31 March 2025 Note 2025 15 15 3,655 5,227 8,882 2025 8,953 12,091 1,137 7,676 10,640 40,498 2025 278,100 8,10 2025 04,561 604,561 302,278 12,091 314,369 290,192 22 2024 3,278 2,551 5,829 2024 7,581 12,091 724 11,429 9,810 41,636 2024 290,191 290.191 2024 604,561 - 604,561 = 290,187 12,091 - 302,278 302,283
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 DEFERRED INCOME (CONT'D) Amounts to be released within one year Amounts to be released in more than one year 2025 12,091 278,100 290,191 2025 23 2024 € 12,091 290,192 302,283 2024 16. FINANCIAL INSTRUMENTS Carrying amount of financial assets Measured at fair value through income and expenditure: Fixed Asset listed Investments 820,659 2025 741,022 2024 CASH FLOW FROM OPERATING ACTIVITIES Reconciliation of operating surplus to net cash inflow from operating activities Surplus/(Deficit) for the year Decrease/(Increase) in fair value (Gains)/Losses on investments Investment income recognised in income and expenditure Depreciation charges Loss on disposal of assets Changes in debtors Changes in creditors (Decrease) in deferred income Net cash flow from operating activities 320,517 (39,981) (36,109) (76,717) 67,148 1,149 (3,053) (1,138) (12,091) 219,725 108,084 50,000 (32,689) (71,881) 68,379 7,725 (1,597) 2,704 (12,092) 118,633 ANALYSIS OF NET DEBT Net cash Cash at hand and in bank Total At 1.4.24 405,229 405,229 Cash flow 278,215 278,215 At 31.3.25 683,444 683,444
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 24 2025 2024 INCOME Rent receivable Amortisation of social housing grants Service charges receivable Rent losses from debts and voids Income from lettings Operating costs OPERATING SURPLUS/(DEFICIT) OTHER INCOME AND EXPENSES Investment gains/(losses) Increase/(decrease) in fair value Interest receivable: Bank deposit interest Other income € € 502,053 12,091 63,409 577,553 (1,645) 575,908 (385,116) 190,792 455,814 12,091 59,909 527,814 (794) 527,020 (409,386) 117,634 79,637 39,981 10,106 32,689 (50,000) 7,753 8 NET SURPLUS FOR THE YEAR 129,726 320,515 (9,550) 8.U2
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES OPERATING COSTS FOR THE YEAR ENDED 31 MARCH 2025 25 2025 Wages and salaries Water and sewerage Insurance Garden maintenance Light and heat TV licences Printing, postage and stationery Telephone Consultancy fees Audit fee Bank charges Sundry expenses Legal and professional fees Market rented housing property costs Depreciation Loss on disposal of assets Major repairs Repairs and maintenance Service repairs and maintenance PCC (Davis Alarms) contract Loan interest 76,744 (3,846) 33,322 33,512 4,674 474 1,099 1,374 24,125 5,280 335 6,611 1,261 11,779 67,148 1,148 41,185 74,549 996 3,346 385,116 2024 € 72,361 (766) 35,241 24,912 2,212 461 1,706 1,165 21,649 4,902 452 9,582 5,000 22,198 68,379 7,725 46,211 73,100 1,259 11,637 409.386