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2024-12-31-accounts

Charity registration number 1142608 (England and Wales) Company registration number 07109869

THE RAILWAY CONVALESCENT HOMES

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2024

THE RAILWAY CONVALESCENT HOMES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Peter Moakes
Mrs Barbara Davenport
Mr Stephen Brook
Mr William John Collins
Mr David Crome
Mr Christopher Donovan
Mr Luke Farley
Mr Graham Isom
Mr Colin Mills
Mr Philip O'hare
Ms Rachel Stoneham
Secretary Brian Conyard
Charity number (England and Wales) 1142608
Company number 07109869
Registered office Bridge House
2 Church Street
Dawlish
Devon
United Kingdom
EX7 9AU
Auditor BK Plus Limited
Murrills House
48 East Street
Fareham
Hampshire
PO16 9XS

THE RAILWAY CONVALESCENT HOMES

CONTENTS

Page
Trustees report 1 - 6
Independent auditor's report 7 - 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 20

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 DECEMBER 2024

The Trustees present their annual report and financial statements for the year ended 30 December 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

Objectives and activities

The Charity was registered on 21 December 2009 and the funds of its predecessor Charity (Charity registration number 207528) were transferred into it. The Charity is a charitable company limited by guarantee and governed in accordance with the memorandum and articles of association.

The Object of the Charity is to provide convalescent homes for relieving, in cases of need, persons of the following classes who are invalided or are convalescent in the following order of priority:

(a) Persons who are or who have been employees of current or former railway undertakings including British Railways Board end including any publicly owned railway undertakings;

(b) Persons who are employees of any nationalised transport undertakings in the United Kingdom and nationalise undertakings auxiliary or subsidiary thereof.

(c) Persons who have been employees of any nationalised transport undertakings in the United Kingdom and any nationalised undertakings auxiliary or subsidiary thereto;

(d) Persons who are or have been employees of any public transport undertakings in the Republic of Ireland and any nationalised undertakings auxiliary or subsidiary thereto which operates or have operated in conjunction with any nationalised transport undertakings in the United Kingdom and any nationalised undertakings auxiliary or subsidiary thereto;

(e) Persons who are the spouse or other dependants of persons of the above mentioned classes.

The Charity operated a convalescent centre in Dawlish in Devon which has provided the care described above. The facility was closed in March 2020 due to Covid19 and subsequently the decision was made to permanently close the facility on 31 October 2020. The Trustees have been liaising with the Charity Commissioners and the Charity's solicitors regarding the alteration of the Charity's objectives and alternative income streams. and a new scheme to govern the Charity came into effect on and from 2nd June 2025. Following the closure of the Charity's operational care facility, the Charity continues to be a going concern due to the income streams receivable and the level of assets held.

The Charity has previously measured its success based on guest numbers year on year. Currently the most significant income source for the Charity is from Investments and rent.

The Trustees have always ensured that the activities undertaken are in line with the charitable objectives and policies. They ore now liaising with the Charity Commissioners to ensure the charitable objectives can continue to be fulfilled.

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

Changes to Objects

A Special Resolution was passed by the Board on 12th September 2023 to change the Objects of the Charity. However, some minor amendments were subsequently made to the objects and a further draft scheme was prepared by the Charity Commission. This was agreed by the Board and became the subject of a further Special Resolution passed by the Board on 16th May 2025 which replaced that of 12th September 2023. The Charity Commission has now formally issued the new Scheme to take effect on and from 2nd June 2025. The Charity is now known as The Railway Community Homes.

The objects are now as follows:

For the relief of need of those beneficiaries by reason of age, ill-health, disability, poverty, financial hardship or other disadvantage including but not limited to by the provision of:

1 . Accommodation including but not limited to the provision of social housing in the form of almshouses and other independent living accommodation; and

2. Grants

The term "beneficiaries" above is defined as the following classes and in the following order of priority:

(a) persons who are or who have been employees of current or former nationalised or formerly nationalised railway undertakings; or

(b) persons who are employees of any nationalised or formerly nationalised transport undertakings in the United Kingdom and any nationalised undertakings auxiliary or subsidiary thereto; or

(c) persons who have been employees of any nationalised or formerly nationalised transport undertakings in the United Kingdom and any nationalised or formerly nationalised undertakings auxiliary or subsidiary thereto; or

(d) persons who are or have been employees of any public or formerly public transport undertakings in the Republic of Ireland and any public or formerly public undertakings auxiliary or subsidiary thereto which operate or have operated in conjunction with any nationalised or formerly nationalised transport undertakings in the United Kingdom or with any nationalised or formerly nationalised undertakings auxiliary or subsidiary thereto: or

(e) persons who are the spouse or other dependents of the above mentioned classes.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

When planning activities and development each year we have regard to both the Charity Commission's general guidance on public benefit and provision of our services for public benefit.

We have stated above our policies and main activities undertaken for the public benefit.

Achievements and performance

Significant activities and achievements against objectives See previous section.

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

Financial review

The Board reports a net outflow of funds of £268,344 (2023 outflow £126,247) before gains on investments. The Charity reports a gain on net movement of funds for the year of £336,469 (2023 gain £242,938) after losses/gains on investments. A significant part of this is due to the movements on investment value during the year.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at e level equivalent to between three and six month's expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

At the 30 December 2024 the Charity held funds totalling £10,071,809 (2023 £9,735,340) of which the Charity had unrestricted funds of £74,148 (2023 £7,418,625) and Permanent Endowment Funds of £9,997,661 (2023 £2,316,713)

The Permanent Endowment Funds represent the value of the premises from which the Charity operates and the investment flats situated in the grounds. Additional funds were moved to the permanent endowment in the year in accordance with the Charity Commission instructions.

Structure, governance and management

The Charity is a company limited by guarantee.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr Peter Moakes

Mrs Barbara Davenport Mr Stephen Brook Mr William John Collins Mr David Crome Mr Christopher Donovan Mr Luke Farley Mr Graham Isom Mr Colin Mills Mr Philip O'hare Ms Rachel Stoneham

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

Recruitment and appointment of trustees

Details of method of recruitment and appointment of trustees.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The recruitment process for any newly appointed Trustee is to first meet with the Chairman and the remaining board members, followed by further meetings with the Trustees to explain the objectives and procedures. The new trustee will receive copies of the Charity's Governing document and is expected to be fully conversant with its aims and objectives. The Trustee will meet with the Chair prior to the first meeting to clarify any uncertainties,

The trustees have ultimate control over the Charity and its dormant subsidiary. A good support structure is in place within the Charity in the form of a business manager Annette Everett. There is a small team undertaking the general day to day running of the building and management of the business. The business manager and the staff have been in place for a number of years and have vast experience in their particular field of expertise. The staff live locally which also enables the Charity to provide employment in the local community.

The day to day care of the building and business management is undertaken by the business manager, who has been granted the power to make decisions which enable the building to remain in acceptable condition. The business manager attends board meetings and is therefore also involved in the strategic decisions made by the Trustees, the input of the business manager provides the Trustee with a grounded view of the financial position of the Charity and of the business on a daily basis.

The trustees set the staffing remuneration in line with the type of work being undertaken and with reference to the local economy. All staff receive a minimum of the living wage for their services . Staff undertaking the same job are paid equally

Statement of Trustees responsibilities

The Trustees, who are also the directors of The Railway Convalescent Homes for the purpose 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 year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that 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.

Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Limited be reappointed as auditor of the company will be put at a General Meeting.

Risk Management

The Trustees are aware of the major issues which the Charity faces and especially regarding the change in recent years following the cessation of the Dawlish centre and keep this under regular review.

THE RAILWAY CONVALESCENT HOMES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

Investment Portfolio

The Trust Deed authorises the Trustees to make and hold investments using the general funds of the Charity. Our investment managers are instructed to invest in a portfolio which will maximise total returns with a medium risk portfolio. The portfolio is specific to Charities and therefore is deemed to be socially, environmentally and ethically responsible in its investment policy. As at 30 December 2024 the Charity's balance sheet showed investments totalling £9,180,947 (2023: £8,810,480) that produced income of £313,730 (2023: £300,148). The result is deemed satisfactory by the Trustees.

The Charity owns the Waterside Apartments, which were originally part of the home in Dawlish. These are now classified as an investment property and provide rental income for the Charity.

The Trustees report was approved by the Board of Trustees.

Mr Stephen Brook

Trustee

18 June 2025

THE RAILWAY CONVALESCENT HOMES

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE RAILWAY CONVALESCENT HOMES

Opinion

We have audited the financial statements of The Railway Convalescent Homes (the ‘Charity’) for the year ended 30 December 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 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 Charity’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 auditor's 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

THE RAILWAY CONVALESCENT HOMES

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE RAILWAY CONVALESCENT HOMES

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the Charity for the purpose 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 Charity’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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

(Senior Statutory Auditor)

For and on behalf of BK Plus Limited, Statutory Auditor Chartered Accountants Murrills House 48 East Street Fareham Hampshire PO16 9XS 18 June 2025

BK Plus Limited is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE RAILWAY CONVALESCENT HOMES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 DECEMBER 2024

Unrestricted Endowment
funds
funds
2024
2024
Notes
£
£
Income and endowments from:
Donations and legacies
3
300
-
Charitable activities
4
1,815
-
Investments
5
313,730
-
Other income
6
-
-
Total income
315,845
-
Expenditure on:
Charitable activities
7
584,189
-
Total expenditure
584,189
-
Net gains/(losses) on
investments
11
604,813
-
Net income
336,469
-
Transfers between
funds
(7,724,638)
7,724,638
Net movement in
funds
8
(7,388,169)
7,724,638
Reconciliation of funds:
Fund balances at 31 December
2023
7,418,627
2,316,713
Fund balances at 30
December 2024
30,458
10,041,351		 Total
Unrestricted Endowment
funds
funds
2024
2023
2023
£
£
£
300
300
-
1,815
2,380
-
313,730
300,148
-
-
1,100
-
315,845
303,928
-
584,189
430,175
-
584,189
430,175
-
604,813
369,185
-
336,469
242,938
-
-
-
-
336,469
242,938
-
9,735,340
7,175,689
2,316,713
10,071,809
7,418,627
2,316,713		 Total
2023
£
300
2,380
300,148
1,100
303,928
430,175
430,175
369,185
242,938
-
242,938
9,492,402
9,735,340

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE RAILWAY CONVALESCENT HOMES

BALANCE SHEET

AS AT 30 DECEMBER 2024

Notes
Fixed assets
Tangible assets
13
Investment property
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
The funds of the Charity
Endowment funds
19
Unrestricted funds
20		 2024
£
£
682,291
1,499,999
7,680,948
9,863,238
23,719
233,232
256,951
(48,380)
208,571
10,071,809
10,041,351
30,458
10,071,809		 2023
£
£
702,504
1,499,999
7,310,481
9,512,984
20,575
229,661
250,236
(27,880)
222,356
9,735,340
2,316,713
7,418,627
9,735,340		 2023
£
£
702,504
1,499,999
7,310,481
9,512,984
20,575
229,661
250,236
(27,880)
222,356
9,735,340
2,316,713
7,418,627
9,735,340
9,512,984
222,356
9,735,340
2,316,713
7,418,627
9,735,340

The financial statements were approved by the Trustees on 18 June 2025

Mr Stephen Brook Mr William John Collins Trustee Trustee

Company registration number 07109869 (England and Wales)

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2024

1 Accounting policies

Charity information

The Railway Convalescent Homes is a private company limited by guarantee incorporated in England and Wales. The registered office is Bridge House, 2 Church Street, Dawlish, Devon, EX7 9AU, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Endowment funds are subject to specific conditions as issued by the Charity Commission.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

1.5 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

1 Accounting policies

(Continued)

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% Straight line Fixtures and fittings 25% reducing balance Computers 33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Donations and gifts 300 300

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Contributions 1,815 2,380
5 Income from investments
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Rental income 77,683 73,165
Other income 234,058 225,813
Interest receivable 1,989 1,170
313,730 300,148
6 Other income
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Other income - 1,100

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

7 Expenditure on charitable activities

Direct costs Direct costs
2024 2023
£ £
Direct costs
Staff costs 226,826 151,825
Depreciation and impairment 20,213 21,517
Laundry and cleaning 201 28
Household goods 283 275
Training 84 355
Expenses waterside 32,752 71,214
General repairs 67,926 99,109
Staff welfare 115 416
Long service award - 2,250
Water rates 472 737
General rates 3,164 3,572
Electricity 2,425 4,913
Gas 6,555 9,387
Travelling 357 150
Company Secretary 2,681 2,195
Trustees expenses 1,291 1,169
Postage and carriage 130 238
Other charitable expenditure 218,714 60,825
584,189 430,175
Analysis by fund
Unrestricted funds 584,189 430,175
8 Net movement in funds 2024 2023
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 6,500 5,733
Depreciation of owned tangible fixed assets 20,213 21,517

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2024
Number
4
2024
£
174,236
6,581
46,009
226,826		 2023
Number
4
2023
£
136,295
8,919
6,611
151,825

Rredundancy and termination payments totalling £92,103 were made in the reporting period. These were for the termination of contracts for longstanding employees due to the change in nature of the charity. Included in this amount were additional pension payments of £38,575. There was no liability at the year end date relating to these redundancies.

There were no employees whose annual remuneration was more than £60,000.

11 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2024 2023
Gains/(losses) arising on: £ £
Revaluation of investments 604,813 326,888
Sale of investment properties - 42,297
604,813 369,185

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

13
Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 31 December 2023
897,888
12,742
At 30 December 2024
897,888
12,742
Depreciation and impairment
At 31 December 2023
205,353
4,187
Depreciation charged in the year
17,958
2,139
At 30 December 2024
223,311
6,326
Carrying amount
At 30 December 2024
674,577
6,416
At 30 December 2023
692,535
8,556
14
Investment property
Fair value
At 31 December 2023 and 30 December 2024		 Computers
£
8,252
8,252
6,838
116
6,954
1,298
1,413		 Total
£
918,882
918,882
216,378
20,213
236,591
682,291
702,504
2024
£
1,499,999

Investment property comprises Waterside Apartments. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 December 2024 by the trustees. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The trustee's consider the costs of a formal valuation to outweigh the benefits to the charity.

15 Fixed asset investments

Listed
investments
£
Cost or valuation
At 31 December 2023 7,310,481
Valuation changes 620,467
Disposals (250,000)
At 30 December 2024 7,680,948
Carrying amount
At 30 December 2024 7,680,948
At 30 December 2023 7,310,481

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

16
Debtors
Amounts falling due within one year:
Amounts owed by fellow group undertakings
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income
18
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
2,829
20,890
23,719
2024
£
3,853
27,712
16,815
48,380
2024
£
46,009		 2023
£
3,007
17,568
20,575
2023
£
4,643
14,016
9,221
27,880
2023
£
6,611

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

19 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

At 31 Transfers At 30
December December
2023 2024
£ £ £
Permanent endowments
2,316,713 7,724,638 10,041,351

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

19 Endowment funds (Continued)
Previous year: At 31 Transfers At 30
December December
2022 2023
£ £ £
Permanent endowments
2,316,713 - 2,316,713

20 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 31
December
2023
£
7,418,627
At 31
December
2022
£
7,175,689		 Incoming
resources
£
315,845
Incoming
resources
£
303,928		 Resources
expended
£
(584,189)
Resources
expended
£
(430,175)		 Transfers
£
(7,724,638)
Transfers
£
-		 Gains and
losses
£
604,813
Gains and
losses
£
369,185		 At 30
December
2024
£
30,458
At 30
December
2023
£
7,418,627

21 Analysis of net assets between funds

Unrestricted
Endowment
funds
funds
2024
2024
£
£
At 30 December 2024:
Tangible assets
-
682,291
Investment properties
-
1,499,999
Investments
-
7,680,948
Current assets/(liabilities)
30,458
178,113
30,458
10,041,351		 Total
2024
£
682,291
1,499,999
7,680,948
208,571
10,071,809

THE RAILWAY CONVALESCENT HOMES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024

21 Analysis of net assets between funds

Analysis of net assets between funds (Continued)
Unrestricted Endowment Total
funds funds
2023 2023 2023
£ £ £
At 30 December 2023:
Tangible assets 702,504 - 702,504
Investment properties 1,499,999 - 1,499,999
Investments 4,993,768 2,316,713 7,310,481
Current assets/(liabilities) 222,356 - 222,356
7,418,627 2,316,713 9,735,340

22 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

23 Constitutional Matters

On 12 September 2023 a Special Resolution was passed by the Board to change the Objects of the Charity, as stated in the Trustees Report.

At the request of the Charity Commission a review of the attribution of the cash investments between Unrestricted and Restricted (Permanent Endowment) is being undertaken.

24 Basis of Identification of Permanent Endowment Property

During discussions with the Charity Commission on changing the Charity's objects it was discovered the the Charity's former solicitors working on the incorporation in 2009-2011 may not have completed all of the necessary work.

If this is the case then the Board estimates that the Charity's legal costs in relation to trying to recover these additional costs on this on going matter are estimated to be at least £15,000.