CASTEI FROMA IIEURO CARE IIMITED IA COMPANY UMITED BY GUARANTEEI REPORT A14D FINAIICIAi STATEMEpif5 FOR ThE YEAR ENDED 31 MARCH 2025 CHARITY NUMBER IIOO%S COMPAP4Y NUMBÉR 04777559 CASTEL FROMA NEURO CARE UMITED (a COM￿nY limtted by ￿￿•￿eel REPORT ANO FIP4ANCIAL sfATEMEPIIS FOR YEAR ENDED 31 MARCH 2025 Cofitents Cha1rf5 reFhNt Trustees, annual fe Auditors. report 11>12 Staiemeni of flnancial a¢tfvrt*s 8alarKe sheet 14 Statement of casmows 1>16 Notes to the Ilnancsal ststen*nts 17-27 CASTEI FROMA NEURO CARE LIMITED la c¥*npany Umlted ty ow•rteel Castel Frtyna Neuro Cère Limited is è charitstAe compary limrted by 8uarantee operatiffd two Ca￿ ¢efit￿$ in South Warwickshlre, Lillin8ton House and Helen Ley House. From these two kncatK*ns the charlty provided qualrty treatmenl. rehabilltatlon and therapeutic facillties fof people wlth complex CondIt￿n$ ranglngfrom braln Inlurlesto rnuttlple xleroys. motor neurone. Parkinson's and Hunbngton's diseases. Providing care at the level our reydents need is expEn5Ne. We achieved an ir￿orne in the fi.￿ar￿￿1 year 2024-25 of £9 rnlllion, predominantw from fees paid by the NHS and othef wllic sector atKI sources. Thi5 xjm akn indudes donatK)ns and 8ac*s of mfe ihan E90,LYJJ. The healihtsre sertor In the UK remains under C¢)nsiderable financsal pressure. Engurln8 our residents remain appropriately funded is an ongoing challenge at a when we fao considerable Tlsing operatln8 costs. in fee In(fea￿ to reflect increased costs ￿ to a delKrt lof rhe year of ft￿re than £5￿.￿. The trustees and management are drfermined 10 stem opeTating at a ddKiL We are wrSUi￿ a stTate8y of working towards fea115tK fee I￿e15 whilst also ensuring that costs are actbvety managed. The year WaS￿ry busy. a￿1 f(xussed on achievir¥ our 8oal of continuing to provide a ￿l￿rnnt and essentkil service. In •lu8Urt 2024 we beean a revlew of CKbr servkes to erisure that our alÈns to resKlent needs and furthr exFertations, deiails of whth can be found on our websrte: h restoratlon- rEventiO￿an0- -of-lrte In iaNary 2025The Cao (lualltycomrrtssbn appffjval for the chartfy￿ start a net**lycornpleted extenslon at Helen Ley House compri*ng of e￿￿t new rooms. all with ensuite facilrtva. Tr* review and creatjon of more capaclty at Helen Ley House cC￿l￿ned. enabled rhe Trusrees ro make the declsvl In Felyuary 202S to sell an ègeln8 pan rhe Llllington House s that is costty to mainlain arKI outdated for our needs. Ca5tel Froma Neuro ca￿ Limrted anticipate5 that the Sa￿ will help the charrty to generate fund5 to laurKh new ser￿￿e$. wrth r*w'community hub. in retained grounds at LiW¥won House sr(e, where patients Ipiing wrth neuro*Kèl condriiDns and brain injur*5 in the communrty ¢an Tr￿le easity a¢¢e55 serykes. Further details can be fwnd on the chanty'5 website: htt af(h1 Re8iStered office 93 Lillington Road Leamington Spa W•v*4irk5hire C4132 6LL Audltors HB&O Ltd Chartered Accountanls and Statutory Audlttsr Highdown House. 11 Hi8hdown R¢)ad Leamington Spa C431 Ixr 8anke Lbyds 8ank 73 The Parade Leamiwon Spa CV32 488 SolkrtOf5 HCR Wrlght Ha55all LLP Otympus Avenue Leamin8ton Spa Cd34 6BF HCR Legal LLP Ellenborough House Wellington Street Cheltenham Gi50 IYO CASTEI FROMA NEURO CARE LIMITED la c¥*npany Umlted ty ow•rteel TRLisfEES' ANf4VAL REPORT (cortirn*d) FOR THE YEAR ENDED 31 MARCH 21ll5 Olrnctorn and trurttts and dlkl•ls President Parron e-presidert 12th Ead of Aylesford Mr T Cox. Her Majest￿$ Lord ￿'eutenant of Warwkkshire Mr5 D DOw(￿Swe11 OBE Trustee5 Dr C Wilson (Chair) Mr G Murrell (w￿e-ChaIr1 Mr S J Nicklin Mrs L Iloliday MrD Lei8h-Hunt Dr D Stableforth Mr J Evi50n Or S K Seeley lapfv)inied 8 April 20241 M5 S J Heale5 (appointed 8 October 2024) ExUfkk) Chairman of WarwKk Distrtt CourKII His Worship the Mayor of Royal Leamiwn Spa Senior Mana8ement Team Mrs M 8awden (Chbef Exec￿l¥e & Nomin*ed individuall Mrs E Jackson (Deputy Chief Executi¥e) Mr A Albu (Registered Manager. Lillington House and Helen Ley House Mi55 N Fyfe Iclinical Services Manager) Ms K Gates Iclinlcal Quality Improvement Mana8erl Company Secretary Mfs M 8awdÈn Care Standards Committee Mrs L Holiday (Chaif l April - 8 0(tober 20241 Or S K Seeley (Chair 8 October 2024 onwards) Or C Wilson Mr G Murrell Mr S J Nicklln Mr D LeEh.Hunt Ire5igned l July 20241 Dr O Stableforth Mr J Evison Mr$ 5 J Heales Flnance. Assets & Rlsk Comrnttlee {includlni Pfofiling & fvndraisirql Mr G Murrell (Chai Dr C Wilson Mr 5 J Nicklin Mrs L Hollday Mr O Lei8h-Hunt Dr D Stableforth Mr J Evison Dr S K Seeley Ms S J Heabes Remuneration Committee Mr D Lei8h-Hunt (Chair l April - l July 20241 Mr J Evison (Chair l July 2024 onwards) Or C Wilson Mrs L Holiday (resigned l July 2024) Dr S K Seeley (appointed l July 20241 Mr S Nicklin Mr G Murrell CASTEI FROMA NEURO CARE LIMITED la c¥*npany Umlted ty ow•rteel TRLisfEES' ANf4VAL REPORT (cortirn*d) FOR THE YEAR ENDED 31 MARCH 21ll5 OBJEcnvES AND AcrwnES Misskm Stateft*nt Iky. resplre and Iw4erni resldefttlol core *4th 2+how rninlft4 cort fvr those vAth neurowtal ¢ondklDns We run outstandlng care and rehabilltatlon centres provkllng day. respSte and knng-lerm serylces for people disabled by neurological Conditions. To wovide the highest stsndard of nursin8 and care for Individuals with neurological condilions who have complex needs: To bring tOReiher eJ(perts from every therapeutic field to help our residents live as full a lrfe as possible,. To integrate family. friends and the l¢)cal Community Into the lives of our residents and provide a supportive environment for their carers,. To excel in palliatrve and end of lrfe care to help our residents live their lart days as they would wish. Iree Irom paln and with as much dignity as possible- To extend our care Iwnd our centres. into the local community and onto a res￿rIal and national level,. To operate wrthin a finatKially and environmentslly sustsinable Iramework. Princip¥l •¢se served In these capacitles durin8 the period is Set out on page 3. Member5 Ot the company guarantee to tontribute an amount not exceeding £10 to the a55ets ¢1 rhe ttjmpany in the event of windln8 UP. A panel comyisin8 existin8 commrttee members selects members of the three committees.. the Care Standards Committee,. the Finances, Assets and Risks Committee: and the ReMUnerat￿n Committee. The trustees meet quartertr4. New trustee5 are eberted by the'8oard of TQ￿ees'. N￿¥ trustees are indurted durin8 their first trustee< fftttir*, Tru5Lee5 are encouraged to appropriate external trainin8 evenis where these will facilitate the undertèkin8 of their role. Pay pollcy for senlor st￿1 The pay of the senior staff is reviewed by the Remuneratlon Committee lat least annually) and normally Increased in Ilne with average earnings. In view of the nature of the charity. the trustees be￿hMark against pay bevels in other regional charities of a similar size. ff recruitment has proven drfficult in the rKent pèst a market addition may also be pald. Pl•nsfor the fviure In January 2025 the extenst4n ai Helen Ley becanx opeiatlonal and has wovlded an addrtlonal eleht en-sulte bedr¢)oms at that site. The extension forms pan of a viider re￿W by trustees of the chartvs premises in the context of the need for the charity to al*n its care servkes wrth Cha￿e$ in n￿deffl heahkare ser¥¢es. includin8 an Increased focus on rehabilitation. TEL FROMA NEiIRO CARE LIMITED (a c(¥np•ny Ilmlted by Dwarteel TRUSWEES, AIIIIVAL REPORT IcontwK*d) FOR THE YEAR ENDED 31 m￿tCH 2025 STIIATEGK REp£￿T 2024-25 was another extremely challen8in8 year as the charlty, Ilke many In the sectof. was dealin8 Wlth signiflcant intlationory pressures in the economy, including an increase in employers, National Insurance. that were in part exacerbated by a volaiile wlitkal envlronment around the world. Wecontinue to strive to provide a high standafd of care for all of our residentsat both sites. Tothis end, we have where possible, maintained Ihe number ol hours each week In respect of physlotherapy, occupational Ihefapy, psycholo8v. dietician and speech and longuage therapy. The latest CQC inspection reports Still assess both sites as'Good'. The latest lrts&>ettloN at Helen Ley House was carried out in-person In January 2025 whilst the most ie¢ent inspection for Lillington House was a desktop review. Fin4NKial revievj Details of the financial position of the charity are set out in the attached f I￿ntIal statements. Income tor the year totalled £9.379.311 and expendlture totalled £9,969.926. Net eX￿ndIt￿re and the net movement in funds for the year totalled £590.615. Unre5trKted reserves at the yeaT-end amounted to £9.641,025 and these comprised general reserves of £2.821,415 and designated reserves of £6.819.610. Restricted reserves comprise the restrkted reserves of Castel Froma Neuro Care Llmrted totallln8 £18.860. Durln8 ihe year. Ihe trusiees tonsulted the Charity Commisslon and took approprlate legal advke to explore the possi￿.1[tY of the endowment fund. which at f4,250,(W. represented the majority of the value of the site at Lillington House, being released from its restrlcth?n and transferred into unrestl￿ted luThJs. Thls corresponds wlth the char1t￿5 longer-term airn to widen the extent of it5 5eT¥i(es as detailed on page 8. Le8al advice was clear that the charity could proceed and accordin8ly. a tiansfer has been made to effecl this. The endowment fund now has a value of £Nil and the general fund was increased by £2,388.(W. being the anticipated realisable value of the sale of ihe relevant parts of the slte, wlth the balance of £ 1.862,000 transfefred Snto deslgnated funds. knvestrnent polky The charit￿5 investments are held in accordance with the trustee5' powers. The irustees hèd previously considered the most appropriate policy for investin8 the funds and found that a mixture of property Investment and investment in a portFolio of equities had, at that time, met their requirement5 to generate both income and capital growth. Since the disposal of its remainSn8 investments in 2024. there has been more focus on the charlty ensurin8 that cash is available when needed. Rlsk fevlew The trustees have put In plxe a formal risk ma￿6eMent prrxess to assess business rlsks and Implemenl risk management strategies. This involves identifying the types of risks the charity faces, prioritisin8 them in terms of ￿tentIal impact and Ilkellhood of occurrence. and Identlfying means of mlllgatlng ihe rlsks. As part of ihls process ihe trustees continually review the adequary of the char￿5 current internal contro15. The tru5tee5 arE pleased to reFort that the charity'5 internal financial controls. in partitular. conform to 8uiddiros issued by the Charity Commission. The trustees have corrflucted thelf own review of the rn4￿r rls*s io whkh the charbty b exposed. and systems have been implemented to mit4gate those risks. The signrficant external risks to the charity are noted within the key risks identified below and include the flnan¢lal risk of the ¢harlty not meetin8 rts budget. Internal risks are minlmlsed by the implementaiion of internal contiol procedures for authorisation of transact￿n5 and projects and through sraff development. These prtxedures are reviewed periodi￿lIv to ensure thry still meet the needs of the charrty. The key risks as identified by the twstees In¢￿de. Residents. lees as awarded by Commissionery not keepn8 pace with inllation and the ensuin8 difficulty in achwing a balanced bud8et. 8b¥en the requlreffent to meel and malntaln the charitrfs repulation and commitment to care standards.. Delayed settlenwnts from debtors. Wln8 to an adverse Imp¢t on cash fvw and a resultant deLay In settlemènts to suppliers. TEL FROMA NEiIRO CARE LIMITED (a c(¥np•ny Ilmlted by Dwarteel TRUSWEES, AIIIIVAL REPORT IcontwK*d) FOR THE YEAR ENDED 31 m￿tCH 2025 STIIATEGK REp£￿T The trustees have examined the chaftt(s wuirements for reserves in the light of the main rtsks to the organisation and have esiabllshed a [x)I￿V whèreby sufficient unrestricted re￿r¥eS afe retalned in order to meet unforeseen increased working capital requirement5 at a level equal to at least Six months, operating expenditure. In April 2021. the trustees further clarified the reserves poliry with an addilional aim to hold a level of reserves in liquld assets such as cash deposits or investment lunds of at least thret months. operating expendlturé. The polKy wès reviewed again In 2025 and is still considered to be appropriate. The Sirategy of the trustees ts guided by the following principles: To build re5er¥e5 through planned operating surplu5e5,' To review the poliry reguLidy in the light of financial performance and any changes in risk as5e55ment,' To apply thls pollcy in coniunctlon wrth the Investment pollcy. to enable a proportkjn of the reserve to be invested, and To limit the abiltty of the charity to draw from rts reserves by only authorising the Chief Executrve or Chair of the Trustees to èmect such a drawdown. with an obligat￿￿ io repoft and such withdrawal to the 8oard. Followlng the lègal ath4ke taken regardl￿ the statu5 of thè endowment fund and the transfer effected from that fvnd. the level of unrestritted reseryes at the year*nd was £9.641.025. of which there was a des18nation of £6,819.610. This designated fund represents the maprity ol the net book value of the lunrtional fixed assets ol the charify and is thefefowe nor deemed to be available to the ch8rily for activilies other than io which these assets are currently committed. The level of reserves available to the chartty for unlore5een workin8 Capital requirement5 Was therefore É2,821.415. which. ar Just over three months, operating expendiiure. Is short of ihe six months tartet. based upon current le¥els of activity and bvd8et5 for the forthcoming year5. Liquid asset5 are a150 bekjw target. However, as part of the trustee5' wider strategic review of the char￿5 premises. the decision was taken to sell part of the site at Llllinoon House. and wilh flfm offers In pl&e. this f• ex&￿ed to 8eneTaie cash of o¥tr £2.3mllllon in 2026 (reflected In current assets in the balance 5heetl. hence the charl￿$ liquidity position is considered to have con5iderabty eased in the short to medlum term. The trustees therefore conslder that the current level of reserves is adequaie for the charlty to meet its Obl￿tiVes. Valuatlon ol prwrti•s As part ot rhe wider revlew of the chartys premlses and the legal athke taken on the enthwmert fund, the charity obtained valuations of the Lillington House 5rte towards the end of the tinanciol year. The wlK¥le Site wa5 valued in the region of £4.51N).IXKJ and thus not deeff*d to be impaired when compared io Its prew¢)us carryln8 value. Separale valuat￿n5 were obtained fof rhe elements of the sr(e intended for markering and resabe and, with other modificarion costs factored into the offer5 made. £2.388.CO) has been transferred from fixed a55et5 to current a55ets. As there has been $18niflunt further Investment In Helen Ley House. since its lall valuation. a fresh valuatlon wlll be considered in 2026 to ensure its carryini value remains appropriate. The trustees are satisfied that at the year end the slte was IKJt impaired and that its current carryin8 value is appropriate. No adlustments were therefore mède to the carryln8 values of the propertles for the year er4Jed 31 Mèrch 202S. Fundra14r Whilst charity (h)es incur some expenditure in respect ol lundrnising activiries, including prolessM)nal fees for a third. party a8ent in respect of corporate charty donations, these are considered to be on a small ￿ale and do not form part of the charitvs principal artviities. The charity neither part￿1PateS in publicty marketed fundraisi￿ events nor in the actv4e soliciting of donations from members of the general public. Accordin8ty, the charity is not ￿lIStered with the Fundraisin8 Règulator. although the trustees will keep the situatlon undér review. The trtsstees ¥￿tsId like to acknowledge their sincere gratitude for the donat*or6 in the ￿ar trom: The Edward Cadbury Trust. W A Cadbury Trust and Tr* RowlarndsTwst. The maiorty 0fttr￿ ch)nations were to supplyfumiture and equipment for the Helen Ley eXtens￿Th. TEL FROMA NEiIRO CARE LIMITED (a c(¥np•ny Ilmlted by Dwarteel TRUSWEES, AIIIIVAL REPORT IcontwK*d) FOR THE YEAR ENDED 31 m￿tCH 2025 STATEMENT OF PUBLIC BENEFTW Thè trustees are ￿￿ndful of the need to demonstrate wbllc beneflt In the opwat6on of both Royal m￿land Countlès Home for the Disabled IRMCHDI and Castel Froma Neuro Care Limite(l. For many years the dwrity had Operated at a tradin81055 and had been wholly dependent upon RMCHD to provide substantsal donathjns in order to keep the charity running. The trustees afe now pursuing a slrale8y of maintsiniwd iealistic fee levels whilst also ensuiin8 that costs are aclNety mana8ed. which has started to produce financial stability forthe charity. The tn15tees have thly considered the Charity commis5K￿,5 published 8uidawKe on public berrfrt requirements under the Charitles Act 2011. As such. Ihe trusiees carni cMJi those objects and actfr¥rtles by contfaCtIN8 with, amort8Si Others. NHS En8land and varlous Inte8rated Care Board5 to provide'.- Rehabilitation ot •ndi¥idualsfolbwing catsstroph¢ TrAain traumas. and Continuin8 specialist and complex cère for indwiduals wrth on801￿ brain related trI￿rn3$and physical disabikiies. As a result ol this. the charity is deemed to demonstrale a public benefrt in assi5tin8 the NHS and other public l)odies by offerin8 a n￿re tallored solution to these Ir￿￿Idual5 whose com ￿e¥ and often ￿ng.teTrn care needs would othenvise place a 5i8nificant burden on publicty funded resou￿e5 and facilitie5. Furtherniore, in common wrth other charities in the care sector, the fees charged to res"NYents are based on a structure of cost reco¥Èry that e￿endS onty to dlreet care costs and artcilary oveth*ads. but byhkh exdudes a d￿rge for room rerttsl. As yxh the charity is considered io offer a demonstrable publK benefit to residents. their familie5 arKI wider society in providing thi5 servlce within the context of its overall care obligations. The tharity ks optn to all may benefit from tht high￿ Inter&l¥e servkes offered at Castel Frcmna Neuro Care Limited. We know we could do rMre and that is why we are 5eekin8 to provide more appropriate facilrtie5 and surroundin8S to support the more complex needs we need TO meet. A broader range of servkes is contemplated which woukl offer further support to t￿$¢ needin8 the spedalised servke we #￿er. This appro•th is enllrely drlven by the charltls oblectlve of relie¥in8 person5 With physical disabilities by the provision of care. TEL FROMA NEiIRO CARE LIMITED (a c(¥np•ny Ilmlted by Dwarteel TRusfEES' ANNUAL REPORT 1contlrn￿dj FOR THE YEAR ENDED 31 MARCH 2025 Trust￿ resPfy￿*IIIItIes In relatlon iothe 11n•￿Ill statern The charity trustees (who are also dirertors of Casiel Froma Neuwo Care Lwnite(I for the wrposes ol company law} are rtsponsiblt for yeparing the Trustees, Annual Rtport lirKluding the Strateglc Report) and the financlal statements In accordance with applkable law ènd Unlted Kin8dom kcountin8 Standards (Unlted Kin8dom Generally Accèpted Accounting Practice). Company law rewires the trustees to prepa￿ financial stateff*nts for each tinanc￿l year. which ￿Ve a true and fair view of the state of affalrs of the tharitible tornyny and of the Intoming fesourtes and application of resourtes. in¢ludin8 the IT￿orne and expenthture, of charrtable company for that perKJd. In preparin8 these financial ststemerrts. the trustees are requlred to.. select suitable accounting polic*s and then apply them consistentlv,. observe the Methods and princi￿eS In the Charrtie5 SORP 2019 IFRS 1021: make judgements and estimates that are ￿aSOnable and prudent. state whether applicable UK aceountlng standards have been followed. sublert to any material departures disclosed and exploined in the tinancial ￿ateMents.. prepare the financial statements on the going concern basis unless it Is Inapproprlate to presume that the charTty will continue in opefation. The trustees are resF¥)nsible for keeping proper accounting records that di5d95e with reasonable accuraci at any time the rinancial position of the char[tab￿ company and enable them to ensure thal the flnanclal statements comply wlth the Companie5 Art 20￿. They ère a150 responsible 101 5afe8uarding the a55et5 of the charrtable company and hence IOT takin8 reasonable steps lor the Pfevention and detecr#?n of Iraud and other irregularities. Statement as to dbdowre to our In so lar as ihe irnstees are aware ai the t1￿ ol appfovlr* our trustees, annual report. tlxbre is rn ￿levant audii inforMat￿n (rf which charitable compa￿$ auditr* is unaware: aryj the trustees have taken all steps rhat they ouehi to have taken to make themselves aware of any relevant audit Informatlon and to e￿¥bliSh that the auditor is aware of that information. HB&O Ltd ha¥e e¥weMed their will1￿ne$S to contlntse in the capacity of the comparfs 4wthtcvs. In approving the Trnstees" Annual Report we also approve the Strategic Report included therein. in our capacity as company directors. Approved by the m15tees on 23 Oecemiv 2025 and ygned on their ￿haIr lyr. Dr C Wilson Chair of Trusrees CASTEL FROMA NEURO CARE LIMITED la comp•ty Ilrnlted by 8u¥*rtee INDEPEPIDEIIT Avo￿OR,5 REPORT TO THE MEMBERS OF CASTEI FROMA NEURO CARE UMITEO FOR THE YEAR ENOED 31 MARCH 2025 Oplnlon We have audited the financial statements of Castel Froma Neuro Gire Limited Ithe 'charitable compan￿) for the year ended 31 March 2025 whlch Comprlse the Statement of Flnancial Actrélties. the Balance Sheet. the Statement of Cash Flows and notes to the f inancial statements. includin8 a summary of si8nificant accountin8 policies. The linancial T@￿rtIng framework ihat has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includin8 Financial Reporting Standard 102 Yhe Finan¢i41 Reporting Standard •ppli¢able In the UK and Republic ol Ireland" Iunited Kingdom Genernlty Accepted Accounting Prarticel. ID our opinion the financial Srateffw￿. give a true and fair View of the state of the charitable company's affairs as at 31 March 2025. and of its incomin£ resources and application of resources. includine rts Incorne and expenditure. for the year then ended.. have been proper￿ prepared in accordance with Unrted Kingdom General￿ Accepted Accounting Prnctice,. and have been prepared in aCcOrda￿e wilh the requirements of the C(wTrpanies Act 2￿. Basisfor op•nh)n We conducted our audit in accordance with International Standards on Auditin8 IUKI IISAs IUK)) and applicable law. Our r@s￿)nSibl11[IeS undér those standards are further described in rhe Auditorfs respOnsi￿.11t1￿s for the audit of the financial 5tatemen15 sertion of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard. and we have fulfilled our other eihical responsibilities in accordance with these requirements. We belleve that the audit evidence we have obtained 15 suff icient and appropriate to provide a basis for our opinion. (crfK￿￿0N$ relat[￿ to 8olng cr*Kern In audrtin8 the financial statements. we have concluded that the trustees, use of the 8oln8 concern basi5 of accountin8 in the weparation of the linanclèl statements Is appropriate. Based on the work we ha¥e performed. we have not bdentIf￿d materlal uncertaintles relat1￿ to events or condltlons that. i￿liVidualty or collectively, may cast $18nrficant doubt on the charitable companW5 abilityto continue as a going concern for a pèrbod of at ￿ast twefvt months from when thè financ￿1 statements arÈ aUthor￿ed tssuè. Our responslbilltaes and t￿¢ responslbllilies ol the truslees wlth fespecl to g0Sng CO￿ern are descrlbed Sn the relevant sertion5 of thi5 report. io CA5TEL FROMA NEURO CARE UMITED (• ccfftp•ny Ilmlted by Dw•nteel INDEPENDENT AUDffOR'S REPORT TO THE MEMBER5 OF CASTEL FROWI NEURO CARE UMITED Icontirn*dl FOR THE YEAR ENDED 31 MARCH 21)25 The other Informatlon comprlses the Informailon Included In ihe Trustees. Annual Report, other ihan ihe flnanclal 5tèternent5 and our auditorf5 report thereon. The tru5tee5 are responsible for thp other information containpd within the Trustees. Annual Report. Our opinM)n on the financial statements does mt cover the other intormation and, eycept to the exlent oiherwi5e explicltly stated in our report. we do not express any form of assurance concluslon thereon. Our responsibility is to Tead the other information and, in doing so, consider whether the other information is materially IKorfjistent wrth financlal statements or Qui kTh)w*d8e Obta1￿ In the course of audlt or othep*415e appears lo be materially misstated. If we identtfy Such rnaterial inconsistencie5 Qr apparent material misstatemenls. we are required to determine whether this gives rise to a material misstatement in the financial statements themsefves. If. based on the work we have performed. we condude that there ts a materlal misstatement of thts other informatK*n. we are required to report that fact. We have nothlng to report In thls re8ard. Opiniorts on other mattets presc¥AJed ty the comp￿•t5 Act 21%J6 In our oplnlon. based on the Wofk undertaken In the course of tPe audft: information 8i¥en in the Trustee5' Annual Rewrt li￿01￿)rating the 5trategK report afKI the directors, reportl ft)r the financial year for whi¢h the financial statements are prepared is consistent with the financial statements,. and the straie8ic report and direttors. report have been prepared in Kcordance with applKable legal reqUI￿rnent M•tt•r5 on which w• •r• r•quir•d to r•port by In the l¥ht of our knowledge and understanding of t1￿ charIta￿e cory•ny and irs environment obtsined in the course of the audit. we have not idenilfied materlal mlsstatements In the slrategk report and the dlre¢tors' report. We have nothing to report In respect of the follow•n8 matters In relatlon to which the Companies Act 2CM)6 requlres U5 to report to you rf, in our otynion- adequate accountlng records have nol been kept. or returns adequale for our audlt have not been re¢elved from branches rbot Visited by us.. or the finarKlal ststements are not In agreement wrth the accountlre ￿ordS and ￿turnS,. or certain disclosures of d1￿ctors, remunerat￿ specrfied not made: or we have not rectlved all the inforrn4b.on and explanaiions requlre for our •udll R•sP￿￿111tA￿ ul trust•e5 A5 explained more lully in the Trustees. Responsibilities statement Set out on page 9, the tru5tee5 Iwho are a150 the directors of the charitable company for the purposes of company law) are fesponsible for the pieparation of the financial statements and for bein8 satisfied that thvi 8ive a true and fair view. and for such interr)al control as the trustees deiermlne is necessary io enable the We￿ration of financlal statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern. distlosing. as applicable, matters related to going concern and using the going concern basis of accountin8 unless the trustees either intend to liquidate the charttable cornpany or to cease operations, or have no realistic alternative to do so. li CA5TEL FROMA NEURO CARE UMITED (• ccfftp•ny Ilmlted by Dw•nteel INDEPENDENT AUDffOR'S REPORT TO THE MEMBER5 OF CASTEL FROWI NEURO CARE UMITED Icontirn*dl FOR THE YEAR ENDED 31 MARCH 21)25 Audltrfs r•sPwsSblll￿ tor th• wdlt of the Ilnandal sM•rnents Our objertives are to obtain ￿0$oftable a55urarKe abovt whether the f inancial statements as a whole are free from material missraiement. whether due to fraud or error. and ro issue an auditorfs report rhai includes our opinion. Reasonable assurance 15 a high level of a55urance, bul it 15 not a guarantee that an audil conducted in accordance with I￿S IUKI will always detect a material misstatement when it exists. Misstatements can arise f rom traud or error and are consldered materlal If, Indivkjually or In the •ggre8ate. they could reasonabty be expected io Influence rhe econornic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are instances of nonWS FOR THE YEAR EP40ED 31 MARCH 2025 2025 2024 Cash {u5ed Inv w￿11￿ed lry Operati￿ actmi (277,0311 60.599 Cash fltrws from Invésolrf artl¥ftles Payments to acquire tangible fi.xed assets Receipts from disW5al of fixed a$5et Investments Recelpts from dlsbx>sal ol fL*ed assets Interest received Rents received Cash (used inl/ pro¥kled by kwestiry artr¢il*s I540,41￿) 1983,8881 2,864,838 I8.￿3 12,228 19,390 {490.1791 7,354 150.712 2,039,016 Cash fl¢Msfrom fln￿dty aal¥4tles New loans Repayment of k)an5 Interest paid Cash used In financ1￿ a¢thrftles S07,500 11,462,8071 147.74S} 11.fy)3.052) IDecreasell in(vease in o5h and cash equivalents Cash and cash ewI¥¥￿nts at l Aprll 1767.2101 l.(Y36.563 1,426,642 330,079 Cash and cash •qufvalents at 31 Marth 659,432 1,426,642 Cash and cash equl¥ale•tsconslsts c*. Cash and cash equivaleDts at 31 March 659.432 1,426,642 Anatysis of thary•5 in n•¢ fvnds Atiw At31 Marth 2025 Cash and cash equlvalents 1.426.642 1767.2101 659,432 Total net lunds 1.426,642 1767.2101 659.432 CA5TEL FROMA NEURO CARE UMITED (• ccfftp•ny Ilmlted by Dw•nteel r40TES TO THE STATEME1￿ OF CASHFU)WS FOR THE YEAR ENDED 31 MARCH 2025 L ReconcHlatlon ol r*t ftwèment In lunds to net cash tlow Irom operatln8 acll¥hles 2024 Net movement in I￿￿ts 1590.6151 I286.￿1} Renls receb4ed Interest ￿ceiVable Inte￿$t payable Depreciation of tangible fixed assets Profit on disposal ol tangible fixed assets (Gainsll losses on In￿stMentS and investment syoperty Ilncreaselldecrease in stock Cjecreasellincreasel In debtors IDecrea5el/ increase in credrtor5 119,390) 112.2281 1150,7121 17,3S41 47.745 258.541 212.706 112,CKX)) 42,746 55.102 1155.9731 257.405 17,8731 250.OB2 197.7131 cash {used inll provthjed by operating aaivit*s 1277.0311 60,599 16 CA5TEL FROMA NEURO CARE UMITED (• ccfftp•ny Ilmlted by Dw•nteel P40TES TO THE FIIW4CIAL sfATEMEKt5 FOR ThE YEAR ENDED 31 MARCH 1025 Prln¢lpal polk*s The pri￿1paI accountiry policies adopted. iud8ements and key sources of estimatM)n uncertèinty in the preparation of the rinancial slalements are set out below as f01h￿s. These policies have been consistently applied unles5 olherwSse staled. al 8asls of wep¥•t The financial statements have been prepared in accordance wrth Ac¢ountin8 and Reportin8 by Charlties= Slatement ol Recommended Practiie applicable to charities preparing their account5 in accordance with the Financial RekK)rting Standard Jpplicabie in ihe UK and ftepubl￿ ol IreLind ssued in October 2019, the Financlal Reportine Siandard appllcabl¢ in the UK and RepublK of Ireland IFRS 1021 Companies Acl 2(*)6 and UK General￿ Accepted Accounting Prartice. Castel Froma Neufo ca￿ Limlted rne￿5 the definition of a wblic benefit entity under FRS 102. Assets and Ilabilitles are I￿llIallY re¢o8nlsed at historral cosi or transaction value unless otherwise stated in Ihe relevant 袢ountin8 policy r*gtelsl. The financial sLitements are presented in sterlin& which is the funct￿lIa1 Curre￿ of the rharrtable company and rounded to thè nèartst £. b) Pr•paratityb ol1￿ a￿)Unts on • i¢iry conc•rn b￿1$ The tharity reported an adverse net mvement In furwas of £5￿1,615. Ho¥vever. it should ￿ noted that thls pèrformance was again in the context ol stubborn inflationary pressures in what has continued to be 3 volatile economic and wlttical environment. The trusiee5 consider that the chaflty'5 f￿Vre plans. which will include a focus on rehabilitation and care of clinically comp￿1 cases combined wth an oreoin8 review ol premtses. will result In •n over)11 redUct￿n in expendrture as perientage of incor￿. The IoTeca5t5 lor operating (ash flows, partKular wtth the Imminent sale of part of the Lillington House slte. together wtth the level of reserves. suggest that the charrtvs future IS secured for ai leasi 12 months folbwlng the authorisation of these accounts. Accordingly. on this basis the trustees consider that no rnaterial uncertaintie5 exist and that the charitable cornpany Is therefore a golng concern. ¢) IrK(xne Income Is recognised when the charity has any entitlement to the funds, any ￿rforma￿e condltions attaC￿d to the hems of income have been met. it Is probable the income will be receTved and the amount can be measured reliabty. I￿oMe from government and other grants. whe￿r -capitsf grants or "revenue" grants. is re(￿nISed when t￿ chèflty has entitlement to the funds, any pertormance conditlons attached to the grants have been met, tt is probable Ihat the income will be re￿1ve￿ and the Jmount can be measured rella￿Y and is not deferred. For legacies. entitlement is the eafller of the dare on whkh either.. the charrty Is aware that probate has been granted, the estate ha5 been firsali5ed arbd notification ha5 been made by the execLrtorl51 to charity that a distribution will be Made, or a distribution is received from the estate. Receipt of a legacy, in whole Of in pao is only considered probable when the amount can be measured rellably and the charity has been noiified of the exe¢uiorfs inientlon io make a distribution. Where legacies have been notified to the charity. or the charity is aware of the granting of probate. and the criteria for IKome r¢co8nStk>n have rKJt been met. then the legacy ts trèated as a contln8ent asset and dlsclosed W material. Irrt costs have been all￿ated are set out in note 9. CASTEI FROMA NEURO CARE UMITED qa ¢(ffip•ry Ilmlted ￿ Diarantsel NOTES TO THE FINA14CIAL STATEMEIIT5 (contwK*d) FOR THE YEAR ENDED 31 MARCH 2025 Pri￿1￿1 acc(￿ntin& poliw Icortirn*d> gl Leases Rentals payable tsnderoperatlng leases are charged to the SOFA on a strai8ht-Ilne basls over the perlod of the lease. h) Tarylble Ilx•d ass•ts Indi¥i(hJal filed assets Costing £1.(￿Or more are caprtalised at cosL Tangible fixed èssets are stated at cost lor deemed costl or valuation less accumuloted deprLYiation and accumulated Impairment losses. Cost includes tosis directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible r￿ed 35sets, at rate5 calculated to write off the c￿( less estimared residual value. ol each asset on a 5V5tematic basis over its expected useful life as lollows.. Freehold land and bJildi Motor vehicles Flxiures. flttln8s and etyipment 0% pa. 25% p.a. reducing ba￿￿* 15%. p.a.. 20% pa. ènd 33.3% p.a. stra*ht11 Freehold land and buildings are not depreciated as the charity maintain5 the properties to a high standard and their residu31 values are regularty measwed on the basis of fair value and r￿nsta1tMenl cost as a means to assess their carrying values In the financial statements. This infom15 an annual impairment review. which is undertaken to establtsh the recoverable value of all properries. Assets not meawred at falr value are revkwed for any indkatlon that the asset may be Impalred at each balance sheet date. If such indTrcation exists. the recoverable amount of the asset, or the asset's cash generatin8 unit. is e￿Imated and compared to the carrying amount. Where the carrying amount exceeds its reco¥erable amount. an impahrmen( loss is recognised in the SOFA. od( and ¥5sets hekl Ivr re5• Stock is valued at the lower of cost and nei realisable value after making due allowance for obsolete and slowvJlKTrIiI¥ ems. Cost Includes all Costs ot purchase and other costs incurred in brlnglng stock to its present locatlon and conditlon. Property held for resale is shown within stock at a current market value which is expected to be realised. DebtoTh and (reditor5 rerei¥ablelp•y•* within Debtor5 and creditors With no stated interest rate and recer¥able or payable within one year are recorded at transartK)n prl¢e. Any losses arisin8 Irom Impalrment are fecognised In expenditure. k) Flnartlal Insvurn•rts Loans aThJ b)rrowirhgs are initialty recoeni5ed at the transactK>n Includi￿ transattion costs. Subsequently. they are measured •t amortised cost using the effertrye inierest raie mdhod. Impairmeni. If an arrangemeni consiitutes finance transaction it Is ITiea5ured at the wesent value of the future Pa￿entS di5COUDted at a market rate ol interest for a slmblar debt Instrument. CASTEI FROMA NEURO CARE UMITED qa ¢(ffip•ry Ilmlted ￿ Diarantsel NOTES TO THE FINA14CIAL STATEMEIIT5 (contwK*d) FOR THE YEAR ENDED 31 MARCH 2025 Prlnc*al accountlry pollcles l 10.250.5(K) 14.250.CiX)I 9.379.311 19.%9.9261 9.659.885 The general reseNe represents the free funds of the charlty whlch are not deslgnated for partkular purFM)ses. Des¥nated unrestrKted fund5 include reserves invested in fixed a55et5 and land and prop2rty assets. The eThlowment fund was held by Royal Midland Counties Home for the D&)bbed comprised a permanent eThdowment of E4,250,(K*). being the 51te of the char￿5 registered addre55 IreprE5ented within freehold land & building5 in note 101. During the year to 31 March 2025. thè charlty t¢)ok appropriate legal a¢fvite and consuiied wlth the Charity Commlssbon. the ups1￿1 of whth was to release IF￿$e tunds Irom the permanent endowment and enable them to be treated as unwestrirted. Ac¢ordin8ly. a tran51er has been rnade of E4.250.(KM) from the erthwment fuTrd into unrestricted fund5. The restrirted fund5 are those funds which have been used in Kcordance with re5trirtions imposed by donors or fvnd5 which have been raised by the charily for specific purposes=. The nurses. social committee fund represents amounts received from the Mary Hallam estate to be spent by the ommrttees. The software fund represents amounts donated by Royal Midlands Counties Home for the Oi5abled and other donor5 10 install relevant software and purchase the neie55ary SUPPOrt and te5tinu required to brin6 il bnto full operational use. The lelsure and SPO￿n8 artlvllbes fund represents amounts donated towards addrtbwl lelsuo and SwI￿n8 a¢tl¥ltlÈs for the benefit ol residents. Other rtstrkted funds Comprlse funds In relatk>n to: peop￿.$ postcode lottery: Spetthiim tralnlffj The Tent Event,. and The English Project. Where a transfer has been made from restricted to unre5tTicted hJrK15, this is to reflect thatthe terms of a restricted capital donatlon have been ontt the asso¢lated f￿d assets have been ¥quired. The net t¢ok ¥aknts of the a$so¢￿ted assets are inclu(led in the fixed a$5et desi8nated fund. 26 CASTEL FROMA NEURO CARE UMIIED (• wrnp•ry rimit￿ trrf y•rant¢el IK)TES TO THE F114ANCIAL STATEMEf4T5 (continued FOR THE YEAR ENDED 31 MARCH 2025 18 An•lysL4 ol wets between fvnds T•ft8lbl• ftx•d Net oJrrent Tot•1 Unr•strirt•d funds enenl reserve Desiinated ￿e1ve 2.821.415 2,821.415 6.819,610 6.819.610 Restricted fvnds 9.557 9,303 18.860 6,829, 167 2,830,718 9,659,885 19 Rol•t•d party transactkn Thefe **re no ￿laled party transartk)ns durlre the yeaf {2024'. £NI). 20 Controlllni lrtertst The charlty Is controlled by the trustees. 27