Reglstered number: 06593129 Charity numbers: 1125556 & SC040058 HAIG HOUSING TRUST (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CONTENTS Page Referencè and administrative details of the Charityy its Trustees and advisers Trustees. report Statement of Trustees. responsibilities Independent audltorfs report on the flnanclal statements Statement of financial activities 12 Balance sheet 13 SL*ement of cash flows 14 Notes to tho financial statoments 15-30 HAIG HOUSING TRUST (A company Ilmlted by guarantee REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Mr J.H. Bartlett (Chair of Trustees) (Appointed 18 March 2025) Ms L M S Locke (Vice Chair of Trustees) Mr D G Williams Mr J.P. Colbome-Baber Mr S M Elliott (Resigned 25 September 2024) Mrs S S Fernandes MrAB Weir DrMJSWeir Mr N G White Mrs N Mcwhinney Mrs K Connell Mr M Carter (Resigned 5 February 2025) Mr C Thomson-smith Mr T Quaye (Appointed 25 September 2024} Mr P R Bates (Appointed 4 February 2025) Company registered number 06593129 Charity registered numbers 1125556 (England and Wales) and SC040058 {Scotland) Registered office Mountbarrow House 12 Elizabeth Street London SW1W gRB Company secretary Michael Robb Chief executive officer Tim Stockings Independent auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankers Barclays Bank PIC 50 Pall Mall London SW1A 1QF Solicitors Trowers & Hamlins LLP 3 Bunhill Row London EC1Y 8YZ Senior Tim Stockings {Chief Executive) Leadershlp Team (SLT) Michael Robb William Lindsay Amanda Deakin Irfan Chaudhry HAIG HOUSING TRUST (A company Ilmltod by guarante•} TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their report and the financial statements of the company for the year ended 31 March 2025 CHAIRMAN'S STATEMENT This is my first statement as Chair of Haig Housing Trust; l am very proud to have been appolnted to this position in 2025 and I pay tribute to my predecessor, David Williams, who worked tirelessly for our beneficiaries and the widerveterans, community. We are in a much better position for his effortand we thank him on behalfof everyone associated with Haig Housing. Whilst there are many challenges ahead, l am confident that we have the team at Haig Houslng who will deliver excellent outcomes for our beneficiaries. You will read here about some of the work we have done, as well as an oulline ofourfuture plans. In the yearahead wewill review and update our strategyto make sure thatwe address the significant ongolng changes in the housing sector, many of which have been prompted by the change of government In 2024. We welcome the increased focus on housing by senior policy makers and hope that we can benefit from the additional funding that has been signalled. We are proud of Ihe homes that we provide today to more than 4,000 tenant beneficiaries,. but we are very aware that currently we cannot meet the increasing demand for veterans, housing. We have ambitious plans to improve our reach and impact but even that may not be enough. recognising that challenge we will work collaboratively with our partners and grow our delivery networks. Housing needs are crltlcal for everyone and challenges occur at all stages of life. so we endeavour to stand ready to help veterans of all ages and backgrounds across the UK. l especially want to thank our hardworking and dedicated colleagues who deliver our services. They work tirelessly for the benefit of others and without them our veterans would not be able to access the support they need. To glve them the resources to do even more we are growlng our fundraising efforts to build and diversify our income. We are delighted that HRH the Prin￿SS Royal has consented to be our new Royal Patron, succeeding Her Majesty Queen Elizabeth11. We express our sincere thanks to the Princess Royal for the support she is providing to us. Haig Housing Trust's Royal connections date back to our foundation in 1918, with support then from HRH the Prince of Wales. We are now looking ahead to our Centenary in 2028, when we aim to celebrate the past and secure the future for the Trust and its work to support the UK Veteran community. HAIG HOUSING TRUST IA Company Ilmltsd by guarantso) Charltable Objects and Govorning Document The Charity is governed by its 201 g Memorandum and Articles of Assodation (MAoA}, which outline its objects: To relieve need. financial hardship. sickness, disability. the effects of wounds. old age or other like condition by the provision of, or assistance with, housing for the following persons in order of priority: Members and former members of all ranks and ratings of the Amied Forces of the Crown, whether Regular or Reserve, and their spouses, widows or widowers. Fomer or separated spouses of members or former members of the Armed Forces of the Crown, whether Regular or Reserve, who have dependent children living with them. Such persons In a. (il) above without dependent children. Such charitable purposes for the benefit of beneficiaries of the Charity as the Trustees decide. Public Benefft The Trustees confirm that the Charity's activities in support of its MAOA are delivered effectively. complying with the Charities Act and Charity Commission's guidance. Governance The Board comprlses thirteen independent nonexecullve trustees, who bring a wealth of experienc8 to the charity and are legally responsible for the overall management and control of The Trust. They receive no remuneratlon for their role and any interests or related party relationships are dlsclosed In Ihe Register of Interests. All Trustees sign and adhere to Haig's Trustee Code of Conduct. New trustees undertake an induction programme and the Board is kept up to date with developments through regular briefings and training. A strategy awayday is held once a year, as well as regular visits to eststes. The Board assess its performance annually, mlndful of the guidance issued by the Charlty Commission, and sector bodies. Trustees met fomially every quarter, delegating specific issues to three sub-committees that report to the full Board.. Estates, Finance & Risk (FRC} and People. Oversight of the Trust's properties in Scotland is by a local committee, ￿n$[St[ng of volunteer members and a beneficiary tenant that met three times. Additionally, there was a Management Commlttee comprlsing the executive team and beneficiaries. The Trust intended to move towards tenant representation on the Board but that has tsken longer than envisaged. Future plans are being reviewed. There are three linked charities with similar objects: Disabled OfficerGarden Homes, Mitchell Flats and Clevedon Homes. The Twst also holds all allotted shares in a dormant Ilmited tradlng company.. Halg Housing Tradlng Limlted. see note 24 to the financial statements. Remuneratlon The remuneration policy was agreed by Board in March 2025. People Committee reviews reward and recognition regularly, Including salary levels and pay awards. making recommendations for Board approval. HAIG HOUSING TRUST {A company Ilmltod by guarants•) REVIEW OF ACTIVITIES We deliver impact and public benefit by housing veterans and their families, of all ages and backgrounds in mixed communities across the UK. We are accelerating our efforts to improve beneficiary service, principally by spending more money maintsining and modemising our homes. We aim to foster communities in the areas we operate, with most of our eststes being made up of a small number of Iow-density family houses wtth good communal spaces and private gardens. Charging a charitable rent usually well below market value. we provide additional support in the form of housing managers and income teams. that allow our beneficiaries to live fulfilling lives. We are working to our 2021 strategy that laid out priorities for five years. Given the rapid changes in the housing sector we will review that work next year. Our Purpose remains: Provldlng quallty homes to Improve the lives of veterans and their families in need Supported by our Strategic Objectives that drive operational delivery: Beneficiary focus Quality service Sustainable homes We recognlse that we cannot work in isolation nor do we have the resources to satisfy every request. We aim to 'meet need, not want,. In an increasingly complex sector, we have grown our collaborative working with partners to deliver impact for our beneficiaries. We aim to avoid duplication by signposting those who need more help to specialist providers. We have built strong links to other veterans, charities As the largest provider of Veterans, housing, we try to act as a unifying voice for our viider stakeholders, working with partners to shape Veterans, housing policy in conjunction with the Confederation of Service Charities (Cobseo) and Office for Veterans, Affairs. With a new govemment in place. we have achieved considerable success in building links with policymakers. There is a strategic shift in the political landscape. as the new govemment seeks to drive better housing across the UK sector. This renewed focus on the sector is good, catalysing as it does discussion and action on measures that are long overdue. Our activity has combined intemal work to upskill staff, modemise systems and streamllne processes to drive better beneficiary service. with outward facing effort to grow partnerships. The pressures mentioned in previous reports continue, with continuing significant cost challenges. We have refocused efforts as a result. We were delighted this year to be awarded Bronze level of the Defence Employers Recognition Scheme (DERS) following our signing of the Amied Forces Covenant in March 2024. We were also pleased to gain the Pride in Veterans Standard (PIVS), an important step on our joumey of building diversity. Our sustainability efforts were recognised at the National Energy Efficiency Awards and in December Al Cams, the new Minister for Veterans and People visited Morden. Our People We continue to invest in our team, upskilling them as part of our programme of continual improvement. The new appraisal system is bedding in; we will make some adjustments next year to simplify it based on staff feedback. It has promoted better engagement and helped us on ourjourney of cultural change. We hold regular staff briefing days. military orientation visits and briefings by partner organisations to help us grow our understanding of the Amied Forces community. We have updated systems and adjusted team responsibilities to ensure we remain focused on our strategic objectives and operational delivery., Beneficiary focus We have stepped up our engagement with tenants, including surveys & focus groups. residenl meetlngs In Morden, regular e-newsletters, a printed magazine, website bulletins and volunteer days. We signpost tenants to key information, including links to veterans partners and charities who can help wlth speciallst knowledge. We have also rolled out Switchee smart thermostats, which have a valuable messaging function. Our surveyors and houslng managers spend most of their time visiting and dealing directly with our beneficiaries. We conduct in-person Annual Tenancy Reviews, meeting over 95% of our tenants in their homes. HAIG HOUSING TRUST IA company lknltgd by guarantee) Additionally, our programme of executive and Board estate visits have included Hackney, Kings Lynn, Norwich. Liverpool. Warrlngton, Cardiff, Edinburgh. Glasgow and Hamilton. We continue to promote our Community Fund for resident-led projects that improve their neighbourhood. We take great prlde in our veterans, service and hold annual Remembrance Day events, providing wreaths for residents to lay on behalf of their estates. Quality Servir Our visits allow us to meet those whom we help and provide immediate feedback on our successes, as well as where we need to improve. Whilstthe majority of ourtenants are happy, we know we need to continue to improve and so are investing to ensurewe can provide betterbeneficiary service. Our revised complaints handling process helps support us in putting things right when they go wrong and is a key driver of cultural Ghange. well as upskilling staff, using technology and modemising systems, we have also adjusted team responsibilities and recruited experienced staff to fill gaps. With a clear focus on improving service for our beneficiaries. we will continue this process bringing skills that we currently lack in house. Sustainable Hornes We have delivered upgrades to over 500 homes. ranging from insulation, new doors, windows and roofs to solar panels and other carbon-reducing measures. Residents continue to comment favourably on the improved habitability such changes bring, as well as the marked reduction in energy costs. In Ilght of the considerable changes in legislation and regulations that are In the pipeline, as well as costs and sultability of current schemes, we have decided to refocus funds to core modernisation and planned works, to ensure that we can match future expectstions and maintain stock Compliance. STRATEGIC OUTLOOK The change of government has brought a radically different agenda into social housing and catalysed much change. We support the renewed focus on investment and putting right decades of under investment. Some of the changes include profound implications for the sector and will increase operational costs. We are confident Ihatwe can rise to the challenge and have adjusted our planned programmes to ensure we have the funds in the shorttemi to respond to new regulations. Having dellvered mostof our Phase 2.1 Social Housing Decarbonisation Fund (SHDF) project we have scaled back further work to ensure we have fund5 to reach revised compliance regulations that are being discussed by government. We work with sector representatives and colleagues in our peer group to understand how we can best respond. Future Plans We will continue to invest in the fabric of our properties. our staff and systems to deliver better beneficiary service. We want to grow our impact, by.. Responding to the needs of our beneficiaries Growing our estate so we can house more veterans Disposing of those properties than no longer suit our purpose Modernising those homes we own Reducing the cost of ownership Improving service delivery whilst driving down ￿sIS Working with partners and growing our networks Growing and diversifying our Income streams Achieving regulatory compliance and long-tem financial stability Active participation in the housing, charitable and veterans, sector HAIG HOUSING TRUST IA ¢ompany Ilmlt¢d by guarantse) Fundralslng and Inveslments Rentsl income has historically provided the main source of funds for the Trust but we have made a start on growing our fundraising to generate additional funds for modemlsation and development. As part of this change we ran a '12 Days of Gratitude, Christmas social media campaign featuring videoed beneficiary testimonials for the first time to raise awareness of Haig, the work we do and veterans housing in general. We aim to raise our fundraising efforts next year. in order to grow and diversify our income as well as raise the awareness of the Haig Housing Trust to enable us to grow our impact. We do not employ a professional fundralser and all activities are overseen by the CE. We are registered with the Fundraising Regulator, adhere to the Fundraising Code. GDPR, and do not share data for the purposes of fijndraising. The Trust received no complaints in relation to fundraising activities during the year. Aside from money to satisfy cashflow and liquidity needs, other funds are invested and managed by our professional advisors, Investec. in line with the Board's guidance and risk appetite. Money is invested principally in investment grade r￿ed interest wurities, 'blue chip, equities and collective funds. The Finance and Risk Committee reviews investment performance quarterly. Financial Review and Results The plan to use resources to improve the condition of our estates resulted in a deficit of £4.7M. Cash reseples will continue to be used to fund the upgrade and maintenance programme. Total income increased to £16.5M (2024 £14.5M) Rents increased by an average of 7rhi and £1.3M of grant income was received, mainly trom SHDF {2024 £1.3M) Total resources expended were £21.5M (2024 £20.2M). Key items were direct property costs, including repairs £15.6M (2024 £14.1M)', staff £3.2M (2024 £3.OM)', support £1.2M (2024 £1.5M) and depreciation £1.4M (2024 £1.4M). Total net assets were £78.3M (2024 £83.OM). The Trust holds £13.9M (2024 £14.3M) of investment funds with Investec, who manage them on a discretion8ry basis in accordance with the Investment Policy. The Finance and Risk Committee reviews investment perfomiance quarterly. Cash at bank was £4.7M (2024 £8.3M), most of which arose from the sale of a large property. Most of the money held in cash and investments as well as the proceeds of future sales is designated for three main uses: planned improvements to existing housing stock. sustainability projects and property acquisition, Reserves Sufficient operating reserves are held to enable the Trust to operate and meet its charitable objects. The amount held is regularly reviewed, with a minimum of three to four months operating expenditure held in cash or other liquid securities that can be realised within 60 days. At 31 March 25 reserves of £8.7M {2024 £8.3M) were held, equating to 6 months of cash operating expenses with sufficient unrestricted funds to cover distribution of these reserves. Risk Management Trustees oversee risk management. the FRC reviews the risk register quartedy and reports to Board, who assess top risks quarterly and policy, performance. appelite and the entire rlsk register annually. Day to day management is delegated to the execulive wilh additional assuran￿ provided by internal audit. In doing so, the Trustees have considered the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks in accordance with the Charities (Accounts and Reports) Regulations 2008. as well as Commisslon guidance Contained in CC 26. The risk policy, reviewed annually. lays oul the process for identifying. assessing likelihood and impact, managing and reporting risk, as well as the Trustees, risk appetite. Departments hold individual risk registers to enable effective management, as well as identification of those risks that are most significant; those risks are amalgamated into the top risk register, reinforcing the link be￿een operational and strategic objectives. HAIG HOUSING TRUST (A ¢ompany Ihnlted by guarantee) Principal Risks The principal risks arbsing from operations include: > Funding capital investment to develop and modemise the estate > The cost of achieving sustsinable homes at a decent standard > Delivering high quality beneficiary Servi￿ that meets increasing expectation > Contractor performance undermining reputation and satisfaction > An incident that impacts on our reputstion > Regulatory, legal and compliance requirements The ability to recruit and retain talented staff Our move to increased fundralsing. as well as building partnerships and ne￿orkS to diversify and grow income address the first two risks. We have Invested in training and systems, as well as revised our policies as part of our cultural journey to deliver better beneficiary service. We have changed our pro￿sseS and team structure to improve the monitoring of contractor performance. Taken as a whole, these measures also address the Gompliance requirements, as well as mitigating the impact of an incident. We value our colleagues and the work they do daily for our beneficiaries. We encourage a positive, motivating culture at work and Spend time investing in our people - Ihey deliver for us. Our resources are limited but we believe we slrike a fair balance in our approach to reward and recognition. We hope that working for Haig is fulfilling for staff and the communities we serve. Going Concem The Trust has a robust business model. which has survived recent challenges and its financlal strength Is underpinned by the value of its property portfolio. The five-year business plan aims to upgrade properties using cash reserves whllst breaking even on day-ttrday activities. The Trust is confident that plan will be substantially achieved. with potential to extract further value from non-core elements of the property portfolio if necessary. HAIG HOUSING TRUST (A company limited by guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees, report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law Ihe Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements. the Trustees are required to: select suitable accounting policies and then apply them consistently- observe the methods and principles of the Charities SORP {FRS 102); make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards (FRS 102) have been followed. subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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. Provision of information to the auditor Crowe UK LLP has indicated its willingness to be reappointed as statutory auditor. So far as each of the trustees are aware, there is no relevant audit information of which the company's auditors are unaware, and each of the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish that the charitable company's auditors are aware of that information. The Trustees, Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the trustees in their capacity as company directors on 24 September 2025 and signed on their behalf by: .H. Bartlett ir of Trustees . Colborne-Baber HAIG HOUSING TRUST (A company limited by guarantee) Independent Auditor's Report to the Members and the Trustees of Haig Housing Trust Oplnlon We have audited the financial statements of Haig Housing Trust {'the charitable company'l for the year ended 31 March 2025 which comprise of the Statement of Financial Activities, the Balance sheet, the Statement of Cash Flows and Notes to the financial statements, including significant accounting policies. The financial reporting framework thal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting PractiGe>. In our opinion the financial ststements= give a true and fair view of the state of the charitable Company's affairs as at 31 March 2025 and of income and expenditure, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting PraGtiGe" and have been prepared in accordance wth Ihe requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts Iscotlandl Reaulations 2006 (amended). Basis for opinion We conducted our audit in accordan￿ with Intematlonal Standards on Auditing (UK} (ISAS (UK)) and applicable law. Our responsibilitl8s 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 charitable company in accordance with the ethical r8quirements that are relevant to our audit of the financial statemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethi￿1 responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffscient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In auditing the financial statements, we have concluded that the Twstees, use of the going concem 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 ￿e1ve months from when the financlal stalements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Other infomiation The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in Ihe audit or othernise appears to be materially misstated. If we identify Such material inconsistencies or apparent material misstalements. we are required to determine whether this gives rise to a material misstatemenl in the financial statements themselves. If, based on the work we have perfomed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothlng to report in this regard. HAIG HOUSING TRUST (A company limlted by guarantee) Independent Auditor's Report to the Members and tho Trustees of Haig Housing Trust Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinlon based on the work undertaken In the course of our audit the infomiation given in the trustees. report, which indudes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements. and the strategic report and the directors, report induded within the trustees, report have 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 charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within Ihe trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our oplnlon- adequate and proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or certain disdosures of trustees, remuneration specified by law are not made. or we have nol received all the infomation and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the trustees, responsibilities statement set out on page 8, Ihe trustees (who are also the directors of the charitable company 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 intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to golng concern and using the going con￿rn basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responslbllltles for the audlt of the flnanclal ststements We have been appointed as auditor under section 44(1 Kc) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report In accordance with the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic declsions of users tsken on the basis of these financial statements. Details of the extent to which the audit was consldered capable of detecting irregularities. including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audlt of the financial ststements is located on the Financial Reporting Council's website at= www.frc.org.uklauditorsresponsibilities. This de￿rIptIOn foms part of our auditorfs report. Extent to which the audit was consldered capable of detectlng irregularities. including fraud Irregularilles. including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these belween our audit team members. We then designed and performed audit 10 HAIG HOUSING TRUST (A Company limited by guarantee) Independent Auditor's Report to the Members and the Trustees of Haig Housing Trust procedures responsive to those risks, including obtsining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005], together with the Charities SORP {FRS 102). We assessed the required compliance with Ihese laws and regulations as part of our audit procedures on the related financial statement items. In additlon. we considered provisions of other laws and regulations that do not have a direct eff￿t on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and in￿ntiveS that may exist within the charitable company for fraud. The laws and regulations we considered In this context for the UK operations were General Data Protection Regulations, Health and Safety legislatlon and Employment legislation. Auditing standards limit the required audit procedures to identlfy non (359) Reconciliation of o enin and Closin balances of the defined benefrt obli ation 2025 2024 (£OOOs) (£OOOs) 2,041 2,046 Defined benefit obligation at start of period Interest and olher expenses 99 101 Actuarial losses (gains) due to scheme experience Actuarial losses (gains) due to changes in financial assumptions 104 (167) 11 Benefits paid and expenses (128) (117) Defined beneflt obllgatlon at end of period 1949 2,041 Reconclliation of o assets enin and closin balanc•s of the fair value of lan 2025 (£OOOs) 1,682 81 {76) 90 {128) 1.649 2024 {£OOOs) 1,672 81 (40) 86 (117) 1.682 Fair value of plan assets at start of period Interest income Losses I gains on plan assets Employer contributions Benefits paid and expenses Fair value of plan assets at ond of period Reconciliatlon of o Expenses Net interest expense Defined benefit costs recognised in Statement of Financial Activitles enin and closln balances of the fair value of lan assets 15 17 18 20 Dafined benefit costs reco nised In Statement of Flnanclal Activities Experience on plan assets (excluding amounts Included In net Interest cost) - gain (loss) Gains and losses arising on the plan liabilities gain (loss) Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - gain (loss) Effects of Changes In the flnancial assumptions underlying the present value of the defined benefil obllgation - gain (loss) Total actuarial gains and losses (before restriction due to some of the surplus not being recognisable) - gain (loss) (76) (40) (104) (27) 32 167 (16) (13) {51) Total amount recognised in Other Comprehensive Income - gain (loss) {51) (51) 27 HAIG HOUSING TRUST {A company Ilmtted by guarantee) Notes to the financial statements Assets 2025 {£OOOs) 2024 (£OOOs) Global Equity 185 168 Absolute Return 66 Distressed Opportunities 59 Credit Relative Value 55 Alternative Risk Prem 53 Liquid Alternatives Emerging Markets Debt 306 22 Risk Sharing 98 Property 83 Insurance linked securities Infrastructure 170 Private Debt 68 Opportunistic Illiquid Credit Private Credit Credit Investment Grade Credit 202 63 51 Opportunistic Credit Cash 22 33 Private Equity Currency Hedging Real Assets (1) 197 Long Lease Property Secured Income 28 50 Liability Driven Investment 499 685 Net Current Assets Total assets 1,649 1,682 None of the fair values of the assets shown above include any direct investments in the employerfs own financial instruments or any property occupied by. or other assets used by the employer. Key Assumptlons 2025 %per annum 5.68% 2024 Yo per annum 4.86Q/o Discount Rate Inflation (RPI) Inflation (CPI) 2.75¢/0 28 HAIG HOUSING TRUST (A company limitod by guarantee) Notes to the financial statements Salary Growth 3.750/0 75¥0 of maximum allowance Allowance for commutation of pension for cash at retirement maximum allowance Llfe expectancy al age 65 Male retiring in 2025 Female retlrlng In 2025 Male retiring in 2045 Female reliring in 2045 20.5 23.0 21.7 24.5 Operating leases - Lessor Properties owned by Haig Housing Trust are occupied under various tenancy agreements. The committed ￿ntaI income generated under these agreements over the next 12 months is estimated to be £563,000 (2024 £513,000). The Charity had no commitments under non-cancellable operating leases at 31 March 2025 23. Related party transactlons There have been no related party transactions that require disclosure. 24. Linked charities and subsidiari Disabled Officer Garden Homes, Mitchell Flats and Clevedon Homes have in the past been subject to a uniting direction granted by Charity Commission schemes. The objects of the linked charities below are generally the provision of housing accommodation for people in need, hardshlp or distress with preference given to ex-service men and women and other charitable purposes for the benefit of the residents as the trustees shall decide. However, in respect of Disabled Officer Garden Homes {DOGH> accommodation is for disabled fomier officers who are married or in a relationship analogous to marriage. In addition. the Trust holds all allotted shares In Haig Housing Trading Limited (fomierfy Coming Home Campaign Limited, name changed on 11 June 2019), a limited company (registered in England and Wales 09331680) that carries out trading activities on behalf of the charity. This entity was domiant for the year ended 31 March 2025 A summary of the results of each. which are included in these Financial Statements. are shown below: Mitchell Flats £'ooo Clevedon Homes £'ooo DOGH £'ooo Income Expenditure 136 (234) 16 (65) 15 (25) (Deficit) I Surplus (98) (49) {10) Net assets 566 (92) 530 29 HAIG HOUSING TRUST (A company limited by guarantee) Notes to the financial statements 25. Ststement of Flnancial Activities - Comparative8 Endowment funds 2024 £000 Restrlcted Unrestrlcted funds funds 2024 2024 £000 £000 Total funds 2024 £000 Total funds 2023 £000 Note Income from: Donations and legacies 23 Charitable activities Grants 257 11.309 1313 11,566 1313 10,796 Profit on sale of assets 881 881 874 Investrnents 750 754 314 Other income 13 13 37 Total Income and endowments 261 Expendlture on: Raising funds Charitable activities 92 19,622 92 20,069 47 13,659 14 433 Total expenditure 14 433 Net gainsl(losses) on invesknents Net movement In funds before other recognlsed galns Actuarial (losses) on defined benefit pension schemes Transfers behveen funds Net movement in funds Reconciliation of funds: Totsl funds brought forward (2) 384 382 (246) 14 174 (51) (51) (39) 539 19,906 67,885 88.330 90,277 Net movement in funds Total funds carried forward (14) (174) (5,107) (5,295) {1,947) The Statement of Financial Activities includes all gains and losses recognised in the year. v7.7 30