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2025-03-31-accounts

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Registered number: 06780453 Charity number: 1127466

Island Health Trust

(A company limited by guarantee)

Trustees' report and financial statements

For the year ended 31 March 2025

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 5
Trustees' responsibilities statement 6
Independent auditors' report on the financial statements 7 - 9
Statement of financial activities 10
Balance sheet 11
Notes to the financial statements 12 - 19

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Reference and administrative details of the company, its Trustees and advisers For the year ended 31 March 2025

Trustees Mavis Wenham
Jocelyn Braun
Elaine Bagshaw
Candida Ronald
Dr Shera Chok (resigned 19 June 2023)
Phillip Bennett-Richards (appointed 19 August 2024)
Company registered number
06780453
Charity registered number
1127466
Registered office
Thames House
Roman Square
Sittingbourne
Kent
ME10 4BJ
Principal operating
office
Island Health Centre
145 East Ferry Road
Isle of Dogs
London
E14 3BQ
Company secretary
James Brown
Independent auditors
McCabe Ford Williams
Chartered Accountants
Statutory Auditors
Building 1063
Cornforth Drive
Kent Science Park
Sittingbourne
Kent
ME9 8PX
Bankers
CAF Bank Limited
PO Box 289
West Malling
ME19 4TA
Solicitors
Winckworth Sherwood LLP
Minerva House
5 Montague Cl
London
SE1 9DF

Page 1

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust (A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2025

The trustees present their annual report together with the audited financial statements of Island Health Trust for the year 1 April 2024 to 31 March 2025.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

This Trustees’ Report provides an overview of the charity’s activities, developments, achievements, and financial performance for the year to 31 March 2025 as well as plans for the future. It also sets out the historical context of the organisation. The report from the auditors, together with financial statements for the year follows.

Structure, governance, management, and charitable status

Island Health Trust is a company limited by guarantee and a registered charity. It is governed by its Memorandum and Articles of Association dated 18 December 2008. It was first set up as an unincorporated entity and registered charity called the Island Health Charitable Trust, formed under a declaration of trust dated 12 February 1992.

Island Health Trust was incorporated on 28 December 2008 and on 1 April 2009 the unincorporated Island Health Charitable Trust transferred all its assets to IHT, and IHT agreed to take on all the liabilities of the trustees of the Island Health Charitable Trust. The assets included the freehold and under leasehold interests in the property known as Island Health Centre, 145 East Ferry Road, London E14 3AY. The freehold is subject to a peppercorn lease granted to Asda Stores which expires in 2107.

Purpose and aims - who we are and what we exist to do?

Island Health Trust’s (IHT) objects are focused on improving the health of both the population of the London Borough of Tower Hamlets and Newham by actively promoting the provision of primary health care including promoting the medical well-being of residents and visitors in the beneficial areas of Tower Hamlets and Newham. The Directors shall not apply any part of the Charity’s funds directly in relief of public funds but may assist in supplementing public funds.

Appointment of Trustees

New Trustees are appointed by existing Trustees having regard to the mix of skills and relevant experiences that the Board may benefit from. Prospective Trustees are invited to meet fellow Trustees and, if appointed, they go through an onboarding process where they are provided with comprehensive information that includes all the legal and regulatory responsibilities of the Charity and the Trust, the operations, and the projects. This naturally also includes providing a comprehensive onboarding with directors receiving an induction pack in line with Charity Commission guidance, setting out the aims of the charity and the responsibilities that the Trusteeship involves.

Control and Reporting

Regular board meetings are conducted to keep the Trustees abreast of the outstanding performance of the Charity and the Trust, from strategic, operational, financial, and charitable activities. In between meetings, Trustees are kept informed by the COO and are engaged as and when necessary. All Trustees give of their time freely and without remuneration.

Public benefit

The trustees have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities. In particular, the trustees consider regularly how planned activities will contribute to the aims and objectives that have been set.

The Island Health Centre – The Trust’s key asset and source of income

IHT’s main asset, as can be seen in the balance sheet, represents ownership of a Health Centre at Crossharbour on the Isle of Dogs. The first floor of this Health Centre continues to house GPs and Dentists who in turn provide a range of health and well-being services to the local population on the Isle of Dogs. the Tower Hamlets GP Care Group continue to fully occupy the first floor as of July 2022.

Page 2

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2025

What we did in 2024/25

a. Regulatory

Charity Commission Investigation: As reported last year, on 18 June 2024 The Charity Commission wrote to the Trustees to advise that they had concluded the substantive investigation phase of their statutory inquiry into the activities of the Charity. The Commission has concluded that there has been misconduct and /or mismanagement in the administration of the Charity by the former trustees in post at the relevant times. The Commission confirmed at the time that the current trustees have made significant progress to address the governance failings and that the letter denoted the closure of the substantive investigation phase of the statutory inquiry into the activities of Island Health Trust.

However, the Statutory Inquiry remained open whilst the Charity Commission continues to consider whether any regulatory action against former Trustees is required before the inquiry can be closed.

On 3 July 2025 The Charity Commission finally published its findings of its investigation. The full report with its findings is available at https://www.gov.uk/government/publications/charity-inquiry-island-health-trust. Island Health Trust Welcomes Charity Commission’s Findings and the opportunity to move forward with a renewed focus and accountability and an unwavering commitment to upholding the highest standards of charity governance. The publication of the Charity Commission report marked the formal closure of a challenging chapter in the charity’s history. The current Board of Trustees is committed to building on the progress already made and reaffirming IHT’s mission of supporting healthcare in the local community. The current Trustees appreciate the Commission’s thorough review and affirms its continuing commitment to adhering to the guidance provided. Acknowledging the challenges of the past, the current Trustees are dedicated to learning from this process and ensuring the charity's sustained focus on its core mission: serving our community with integrity and accountability. The current IHT leadership welcomes the Charity Commission's recognition that 'the current trustees have made significant progress to address the governance failings in this report.' We are encouraged by this acknowledgment and remain dedicated to building upon this progress to ensure continued robust oversight and sound governance. Island Health Trust reaffirms its commitment to transparency, responsible and effective governance, and continuing to provide essential services to the community through the Island Health Centre.

b. Financial performance

i. Result for the Year.

The charity’s financial results for the year ended 31 March 2025 are presented in the Statement of Financial Activities (SoFA) of these accounts. The SoFA reports a surplus for the year, before the gain on the revaluation of the Health Centre, of £248,732 (2024: £261,848). The gain on revaluation of £1,937,500 means that the total increase in funds for the year was £2,186,232.

Excluding the category of other income, core income from charitable activities (rental income) reduced slightly from the previous year at £327,728 (2024: £361,894). This was in line with expectation after audit adjustments.

The underlying performance continues to be managed well, with stable cost management, together with the reduction of legal cost support and other third-party support.

Overall Administrative Cost Management. Following the Board’s prudent and strict cost management and oversight during 202425, total administrative costs had reduced again at £45,873 (2024: £58,841). This decrease was primarily due to a correction of previously accrued service charge and insurance obligations, offset by unforeseen property maintenance and professional fees (building conditions survey and maintenance reports).

Grants. The Trust continued to support the great work of the Healthy Island Partnership through 2024-2025 with the current Grant Agreement running until March 2026.

The Healthy Island Partnership has continued to demonstrate tangible progress in line with their outcomes. The Healthy Island Partnership is committed to continuing its focus on addressing critical community health priorities on the Isle of Dogs as identified through a recent stakeholder consultation, street conversations and resident door knocking. Through a collaborative approach with community partners, they aim to deliver a range of activities and services designed to meet these needs and improve the overall health and wellbeing of residents with the aim of:

Page 3

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust (A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2025

We look forward to reporting more fully on the grant for the Healthy Island Partnership outcomes and impact in next year’s report.

Revenues. The Board has successfully maintained its enhanced revenues from its main asset, the Health Centre building, by successfully managing the full tenancy of the Property.

ii. Balance Sheet

The net asset and fund position showed growth on 31 March 2025 at £6,386,955 (2024: £4,200,723), with most of the increase attributable to the updated red book valuation of the property which assessed the property value at £4,780,000 (up from the previous valuation of £2,842,500 (2015).

Fixed Asset. The main investment property asset value as per the 2025 red book valuation is £4,780,000.

Cash position. Cash balances at the end of the year remain healthy and have grown again from £1,339,528 last year to £1,541,164.

Designated Funds . The charity holds a designated ‘fabric’ fund, as explained in note 14 to the financial statements, which represents funds set aside to meet the costs of improvement to the Health Centre. This fund remains unchanged at £95,838.

Reserves. The trustees recognise the need to manage and mitigate the key risk of revenue shortfall and put in place a reserves policy to ensure that sufficient free reserves are available to offset its main risk, which is losing tenants of the Health Centre without adequate notice. The charity aims to increase its free reserves equal to at least one year’s annual income for the ground floor and the first floor. This would give sufficient time to find replacement tenants.

As of 31 March 2025, the charity’s free reserves (being total funds less designated funds and less the net book value of fixed assets) amounted to £1,511,117 (2024: £1,262,385). The Trustees continue to be mindful of the fact that the proposed redevelopment of the Asda site could impact the charity and therefore it is prudent to have a larger reserve during this period.

c. A strategic approach to new challenges

The Trust continues to be active in discussions to explore ways to improve and broaden the range of its activities, making sure it is relevant, impactful, and aligned with the objects. This includes looking at how best to support social prescribing interventions and/or education offerings for local people and service providers. The use of some of the space towards supporting health and general wellbeing for people who live in Tower Hamlets and Newham have progressed and we are actively working with the Healthy Island Partnership and are delighted to confirm that the Trustees were able to, once again, finalise and extend a Grant agreement for 20242026.

What we plan to do in 2025/26

As a result of prudent cost management, the Charity remains in a strong cash position for the following year. This will enable the Trustees to explore other options following the ‘new normal in health centre use as part of its strategic challenge. We are continuing to explore extending support to Newham residents, while maintaining focus on Tower Hamlets.

a. Grants

Our grants programme will remain under review, but we shall ensure we are able to continue supporting our target beneficiaries in Tower Hamlets and Newham. We will continue to explore use cases for the available space that can support charitable activities. We shall continue to build upon the hard work and great progress we have made with the Healthy Island Partnership Community project team.

b. Health Centre Management

Using the building reserves designated fund for the health centre, the Trust will continue to explore building upgrades and modernization. The Charity will focus on improving the property and examining new use cases that align with its charitable mission. Following up on the extensive Building Conditions Survey that took place in October 21, 2024, the Board shared the survey's recommendations with the Tenants and have met with the Tenants to begin the process of next steps. The Board is

Page 4

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A Company Limited by Guarantee)

a

Trustees' Report For the Year Ended 31 March 2025

actively considering engaging professional advisers to guide next steps.

The Island Health Trust (IHT) remains fully committed to proactively managing costs and the performance of its suppliers and partners, ensuring the Charity achieves optimal value for every expenditure. While substantial reductions in operating costs have been realized since 2018-19, IHT remains focused on maximizing the value of its property assets as a fully occupied site for 2023-24 and beyond. As the Trust continues to assess future financial commitments, there is a need for investment in the building to ensure it continues to be fit for purpose and an enjoyed benefit to the community. Risk management will be central to any investment decisions, carefully balancing financial growth and savings with prudent evaluation before any new capital investments. This approach aims to sustain financial health while ensuring the Trust is positioned to meet both immediate and long-term strategic objectives.

There have been no new Trustee appointments since we announced Dr Philip Bennett-Richards appointment last year. The Board will continue to look to add to their numbers with diligent and focused consideration for the right candidate.

Risk Assessment

As previously discussed, the trustees have set up their reserves policy to mitigate liquidity risk, which is the risk of not having sufficient funds to cover its costs due to loss of rental income. We are happy to report that the trustees' assessment of this liquidity risk is low. Due to the nature of its operation, the risk of fraud at IHT is very low; all financial activities are manageable, with the organisation’s size being small and its complexity very low. We continue to closely monitor potential risks with the Asda redevelopment and also the risk of changes in NHS tenancy needs.

Disclosure of Information to Auditors

The trustees confirm their approval of this report and confirm that, so far as they are individually aware, there is no relevant audit information of which the charity's auditors are unaware; and each trustee has taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Signed on behalf of the Board of Trustees by:

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| PESSigned by: 2
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Elaine Bagshaw Trustee

Jocelyn Braun Trustee

Date: 19 December 2025

Page 5

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health 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 company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial . Under company law, the 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 company 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:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of trustees and signed on its behalf by:

Elaine Bagshaw Trustee

Jocelyn Braun Trustee

Date: 19 December 2025

Page 6

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Independent auditors' report to the Members of Island Health Trust

Opinion

We have audited the financial statements of Island Health Trust (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balance sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section 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 United Kingdom, including the Financial Reporting Council'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 our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The trustees are responsible for the other information contained within the Annual report. 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 the course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Independent auditors' report to the Members of Island Health Trust (continued)

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the 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 internal 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 going concern and using the going concern 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.

Auditors' 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 Auditors' 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 decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 8

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Independent auditors' report to the Members of Island Health Trust (continued)

Audit response to risks identified:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Clair Rayner FCA DChA (Senior statutory auditor)

for and on behalf of

McCabe Ford Williams

Chartered Accountants Statutory Auditors Building 1063 Cornforth Drive Kent Science Park Sittingbourne Kent ME9 8PX

Date: 19 December 2025

Page 9

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2025

Note
Income from:
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities:
7
Grants payable
Support costs
Total expenditure
Net movement in funds before other recognised gains/(losses)
Other recognised gains:
Gains on revaluation of fixed assets
11
Net movement in funds
Reconciliation of funds:
14
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
327,728
35,727
363,455
68,850
45,873
114,723
248,732
1,937,500
2,186,232
4,200,723
2,186,232
6,386,955		 Total
funds
2025
£
327,728
35,727
363,455
68,850
45,873
114,723
248,732
1,937,500
2,186,232
4,200,723
2,186,232
6,386,955		 Total
funds
2024
£
361,894
27,623
389,517
68,828
58,841
127,669
261,848
-
261,848
3,938,875
261,848
4,200,723

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 12 to 19 form part of these financial statements.

Page 10

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee) Registered number: 06780453

Balance sheet As at 31 March 2025

2025 2024
Note £ £
Fixed assets
Tangible assets 10 - -
Investment property 11 4,780,000 2,842,500
4,780,000 2,842,500
Current assets
Debtors 12 112,037 148,284
Cash at bank and in hand 1,541,164 1,339,528
1,653,201 1,487,812
Current liabilities
Creditors: amounts falling due within one year 13 (46,246) (129,589)
Net current assets 1,606,955 1,358,223
Total net assets 6,386,955 4,200,723
Charity funds
Restricted funds 14 - -
Unrestricted funds 14 6,386,955 4,200,723
Total funds 6,386,955 4,200,723

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:

Elaine Bagshaw Jocelyn Braun Trustee Trustee

Date: 19 December 2025

The notes on pages 12 to 19 form part of these financial statements.

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Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

1. General information

Island Health Trust is a charitable company limited by guarantee, registered in England and Wales. Its registered office is Thames House, Roman Square, Sittingbourne, Kent, ME10 4BJ. The members of the company are the trustees named on page 1.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Island Health Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The presentational currency is pounds sterling.

2.2 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.4 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

2. Accounting policies (continued)

2.4 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment - 25% Computer equipment - 33%

2.5 Investments

The investment property is included at fair value. Gains are recognised in the Statement of Financial Activities.

2.6 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.7 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

The valuation of investment property requires the use of significant estimation techniques. Fair value is based on market evidence, including yields and comparable transactions, which may fluctuate due to market conditions. As these inputs are judgemental, the valuation is subject to uncertainty and could change materially in future periods.

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Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

4. Income from charitable activities

Unrestricted
funds
2025
£
Rental income
327,728
5.
Investment income
Unrestricted
funds
2025
£
Bank interest
35,727
6.
Analysis of grants
Grants to
Institutions
2025
£
Grants payable
68,850
Total 2024
68,828
The company has made the following material grants to institutions during the year:
Name of institution
Healthy Island Partnership		 Total
funds
2025
£
327,728
Total
funds
2025
£
35,727
Total
funds
2025
£
68,850
68,828
2025
£
68,850		 Total
funds
2024
£
361,894
Total
funds
2024
£
27,623
Total
funds
2024
£
68,828
2024
£
68,828

Page 14

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds Total Total
2025 2025 2024
£ £ £
Promote the provision of primary health care 114,723 114,723 127,669

8. Analysis of expenditure by activities

Promote the provision of primary health care
Total 2024		 Grant funding
of activities
2025
£
68,850
68,828		 Support costs
2025
£
45,873
58,841		 Total
funds
2025
£
114,723
127,669		 Total
funds
2024
£
127,669

Analysis of support costs

Executive services
Service charges
Professional fees
IT equipment and support
Audit fees
Insurance
Property maintenance
Sundry		 Total
funds
2025
£
41,274
(16,116)
17,642
295
8,500
(15,664)
9,498
444
45,873		 Total
funds
2024
£
35,077
-
14,816
900
7,950
-
-
98
58,841

Page 15

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

9. Trustees' remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 31 March 2025, no trustee expenses have been incurred (2024 - £NIL) .

10. Tangible fixed assets

Cost or valuation
At 1 April 2024
At 31 March 2025
Depreciation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
11.
Investment property
Valuation
At 1 April 2024
Surplus on revaluation
At 31 March 2025		 Computer
equipment
£
707
707
707
707
-
-
Freehold
investment
property
£
2,842,500
1,937,500
4,780,000

The trust owns the freehold of land on which the Health Centre is sited and the adjoining land extending to the East Ferry Road. This freehold, however, is subject to a lease to ASDA stores expiring on 15 July 2107. In turn, ASDA sub-lease back to the trust that part of the land on which the buildings and car park are sited. This sub-lease expires on 14 July 2107. The trustees have concluded that it is appropriate to include the carrying value of the investment property at £4.78m based on the most recent formal valuation received (July 2025). The trustees believe that this is the best current use estimate of the market value as at 31 March 2025. The historical cost of the investment property is £717,680.

Page 16

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

12. Debtors

Trade debtors
Prepayments and accrued income
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2025
£
97,690
14,347
112,037
2025
£
2,589
15,525
14,112
14,020
46,246		 2024
£
111,572
36,712
148,284
2024
£
68,141
22,153
25,138
14,157
129,589

13. Creditors: Amounts falling due within one year

Page 17

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

14. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fabric fund
General funds
Accumulated general fund
Revaluation reserve
Total Unrestricted funds		 Balance at 1
April 2024
£
95,838
1,980,065
2,124,820
4,104,885
4,200,723		 Income
£
-
363,455
-
363,455
363,455		 Expenditure
£
-
(114,723)
-
(114,723)
(114,723)		 Gains/
(Losses)
£
-
-
1,937,500
1,937,500
1,937,500		 Balance at 31
March 2025
£
95,838
2,228,797
4,062,320
6,291,117
6,386,955

The trustees set aside a sum as a designated 'fabric fund' in order to meet the costs of improvements to the Health Centre.

The revaluation reserve relates to the increase in fair value of the investment property.

Statement of funds - prior year

Unrestricted funds
Designated funds
Fabric fund
General funds
Accumulated general fund
Revaluation reserve
Total Unrestricted funds		 Balance at
1 April 2023
£
95,838
1,718,217
2,124,820
3,843,037
3,938,875		 Income
£
-
389,517
-
389,517
389,517		 Expenditure
£
-
(127,669)
-
(127,669)
(127,669)		 Balance at
31 March 2024
£
95,838
1,980,065
2,124,820
4,104,885
4,200,723

Page 18

Docusign Envelope ID: B268645C-23EF-4E51-B682-87896B26D365

Island Health Trust

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 March 2025

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Investment property
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2025
£
4,780,000
1,653,201
(46,246)
6,386,955		 Total
funds
2025
£
4,780,000
1,653,201
(46,246)
6,386,955

Analysis of net assets between funds - prior year

Investment property
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
2,842,500
1,487,812
(129,589)
4,200,723		 Total
funds
2024
£
2,842,500
1,487,812
(129,589)
4,200,723

16. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.

17. Related party transactions

During the year the Trust's Chief Operating Officer provided services to the charity through the following intermediate company:

2025 2024
£ £
Alternative Leaders Ltd (UK company no. 11658933) 41,274 35,077

Page 19