copy ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Company Reglstratlon No. 09008680 (England and Wales) Charlty Reglstration No. 1160258 Houslng and Communltles Agency No. 5066
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) COMPANY INFORMATION Dlrectors Martin M J Carter l R Hepworth I Price D Smith A L Hill (Chair) R G Rawling Terence T Carroll P Myers P G Myers J Connelly A Massingham AMHunt (Appointed 26 May 2023) (Appointed 26 May 2023) (Appointed 26 May 2023) (Appointed 31 May 2024) {Appointed 31 May 2024) Senior leaders P Birkinshaw C Hobbins G Green N Mccaigue (Chief Executive> (Directors of Operations) (Directors of Support SeNices) (Financial Controller) Company number 09008680 Registered offlce Grove House 12 Riddings Road Ilkley LS29 9BF Auditor Azets Audit Services Carlton House Grammar School Street Bradford BD14NS Bankers Virgin Money 14 Broadway Bradford BD1 1EZ Unity Bank Suite 302 3rd Floor Centurion House 129 Deansgate Manchester M3 3WR
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Strategic report Trustees, report 6-12 Independent auditor's report 13-15 Group profit and loss account 16 Group and company balance sheets 17 Group statem8nl of changes in equity 18 Company statement of changes in equity Group statement of cash flows 20 Company statement of cash flows 21 Notes to the financial statements 22-35
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present the strategi¢ report for the year ended 31 March 2024. Revlew of the buslness Abbeyfield The Dales (ATD) continues to own and operate residential care, domiciliary extra care, supported housing and independent living services across West and North Yorkshire and has a growing presence in East Lancashire, and operates five properties owned by Abbeyfield Living Society. ATD are also the Trustees of two Almshouses. ATD continues to benefil from a stable. knowledgeable. and experienced Board which ensures continuity of governance and oversight. The Board continues to review and enhance their skills and the expertise of the Trustees and has recently recruited two new members Allana Massingham and Angela Hunt, who were appointed lo the Board post year end to enhance 'people and culture, and 'care and quality, aspects of the governance and oversight. In addition, the Board also welcomed existing Trustees from Abbeyfield Burnley Society onto the Board following the transfer of their properties on the 6th April 2023. Both Pamela and Philip Myers have given many years, service to Abbeyfield Burnley. and their addition to the Board of ATD will be invaluable to ensur8 continuity ol the Abbeyfield services in Burnley. The Trustees would also like to place on record their appreciation to two long-standing Trustees, Amanda Ashby, Frances Johnson, and Nora Whitham who took the opportunity to resign and retire within the year. The existing Trustees wish to express their gratitude and thanks for their invaluable contribution and seNice to Abbeyfield The Dales, and also to Frances Johnson for her support ofAbbeyfield in Menston prior to her joining ATD. The Trustees wish to pay tribute to the considerable contribulion Nora Whilham has given lo the Abbeyfield movement, firstly in her leadership of Abbeyfield Bradford, and more recently being a driving force and constant source of support making Abbeyfield The Dales the success il is today. The Executive and the Board have made continued progress in making sure that governance and oversight is robust and strengthened through a process of continuous improvement. A sample of some key achievements made durlng the year are.. After a turbulent year brought on by the cost-of-living crisis and the aftermath of the Covid-19 global pandemic, cash balances continue to stabilise through careful management and strategic decisions, to maintain comfortable cash reserves. The cash injection from the sale of the garage al Elbolton (April 2023) enabled ATD to move forward with future development5 rather than remain static. We also look the decision, early in the year, to fix interest rates on part of our loan portfolio and provide more certainty for the next 3-5 years, during conlinued uncertain economic ¢ondltions and financial turbulence. On the 6th AprTI 2023 we welcomed two new properties in to the ATD family that were previously owned and managed by the Abbeyfield Burnley Society. Their Trustees wtshed lo secure the future prosperity of these properties and welfare of their residents and saw ATD as the natural choice to continue a strong Abbeyfield presence in Burnley. This strategic decision, and the transfer of these properties, slrengthens our presence in the E8St Lancashlre area and supports our growth strategy. Homes England 5UPPOrted our proposal lo use the Recycled Capital Grant Fund (RCGF) against Fire Safety Works to improve Compliance, and these works have been successfully completed. We brought forward a programme of current and future works and used the grant funding to offsel and fund this programme. A significant component of this programme was the significant investment in one of the two sites in Burnley to meet fire safety regulalions. Part af this work included the removal of an (unsafe) stairlift and install a passenger platforffl lift, enabling residents with restricted mobility to access ground floor facilities from their flats. A new management forurn 'The Leaders of Abbeyfield, driven by the Senior Leader Team is well under way and is proving successful. Managers meet quarterly to discuss 'hot topics,, to agree standards, and to develop knowledge, skills, and expertise. During each meeting. issues are raised and solved through a workshop environment to guarantee a united and collaborative approach to improving results and drive change, It provides an opportunity for Managers to share opportunities, ideas, and success stories in a continued learning environment.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Board has consistently identified that the success of ATD 15 through the endeavours of those who are employed. A 3-year strategy was approved Ihat will provide a focus on improving the quality of seNice lo residents, that attracts and retains the right staff with a progressive approach to pay and reward, to grow the business, and increasing use of technology to revolutionise how we work. The Board will monitor progress in achleving the strategy objectives through oversight of progress being made in delivering a variety of initiatives to work towards the strategy objectives, and through monitoring improvements in identified key performance indicators. Assessment of Year: There have been several changes made within the Finance Team over the year, including month end reporting deadlines have lightened opening the opportunity to act on busine55 perfomiance in a timely manner. This means that the Senior Leadership Team are seeing belter analytical reporting data to drive business decisions such as cost conlrol, staff and resource management. In addition, new ideas to improve cash management are continually being explored. We continue to be a Real Living Wage employer lo attract and retain the right calibre of staff in a diffi'cult and uncertain market The Board, through the delegated workings of the Remuneration Committee, are committed to investing further in staff. and have already approved a reward stralegy and policy, and the initial steps in being able to offer an improved 'pay and reward, package for staff. We continu8 to work towards the Care and Quality measures set from the Board strategy and are working with a few external experts in their field lo review and critique our existing policies, forms, processes, and quality monitored infrastructure. We wll focus in preparing our registered services and their staff to implement necessary changes to ensure that we Can achieve and then exceed the fundamental standards of the Care Qualily Commisslon (CQC). There is continued investment in our buildings. so they continue to meet high standards for our residents, but also so that they achieve a higher level of fire safety following on from the new legislation recently brought in. The energy and professionalism of everyone associated with Abbeyfield Ihe Dales, and demonstrated to-dale in delivering positive change, continues to give cause for optimism. In particular the Trustees wish to give their appreciation to the Senior Leadership Team for Iheir dedication and commitment lo the residents of ATD and the future prosperity of the organisation.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Changes during the year There have been several changes in the current finanual year that evidence Abbeyfield The Dales. continued growth, development. consolidation and effective operational managemenl and control,. these include= Following the implemenlation of Person Centred Software (PCS), our electronic care planning system, we continue to evolve and develop our use of the system to benefit our residents and care practice. PCS provides information in real time and management reports are readily available to help monitor. develop and focus on the key areas to ensure a person-centred approach is delivered to our residents. and a quality service delivered. Sir Francis Crossley Almshouses {SFCA) joined our portfolio of almshouses on the 1 April 2024 expanding our geographical footprint, and cements our presence in Calderdale. We continue to look at all opportunities that are the right 'fit' for the Abbeyfield the Dales model and approach lo providing housing and care setwices. The previous Trustees of SFCA wished to ensure a bright future for this almshouse and saw ATD as the natural choice to ensure future improvements to the management of the residents and maintenance of this property. ATD has implemented a time and attendance system (Sona), and this has been successful in creating visibilily of shifts for staff to pick up, and the better control of shifts and staffing. The nexl phase of its implementation is currently in progress and alms lo provide reports and information that will help manage key resource levels and costs effectively. The final element of the full implementation of Sona will be a direct link lo our payroll systems to ensure removal of manual processes and increase the accuracy of slaff pay. We implemented an approach to managing the planned works programme to ensure works are completed on time and within budget so Ihat priority works were delivered and works either deferred of broiighl forward based on the headroom in the budget or cost overruns. The approach was necessitated by delivering a larger programme of Fire Safety works to enable the use of the RCGF funding. This controlled approach continues into the current year where monitoring and choices are made to ensu the Optimum amount of works are delivered whilst achieving budgeted spending targets. We continue to remove archaic processes that are either time consuming or inefficient. The development of an Access database system has merged all HR files such as staff inductions, recruitment, employee data, people management and training records into one database. The visibility of all slaff records enables us to remain compliant with regulation and our policies. The next area of development will be to streamline maintenance and repair recording processes. Over that last three years, a significant amount of work has been invested to improve care practice, records, and governance for our CQC registered service5. Thi5 work has been necessary to ensure a quality service is delivered lo our residents, and lo give us increased confidence that all registered services operate to a 'Good' standard. The next steps will be to work towards one or more registered services achieving an 'outstanding' rating, with the longer-term plan for every service to be rated as 'outstanding'. On the 13th August 2024, the Abbeyfield Living Society {formerly The Abbeyfield Society) gave notice that on the 1st April 2025 they will be taking back Ihe running of the services in Ihe 5 properties they own and that Abbeyfield The Dales has managed since 2016 {see post balance sheet events note).
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Plans for the future ATD continues lo hold growth ambitions. However, we are being cautious in our approach and planning of any new developments and additions lo our portfolio, to allow the organisation to consolidate its operational and financial resources following the impact over the last 2 years of operating within a very difficult trading environment due to the legacy of the pandemic and more recently the cost-of-living crisis which has led to significant cost pressures. The Board have agreed a 3-year strategy to develop and focus in the 4 key areas Development and Technology with the elements listed below. Care, People, Business Promote best practice through sharing ideas on collaborative work in the care forum. All registered services have a robust quality and service improvement plan. Annual external quality inspections supported by an enhanced internal audit program. Program to ensure all services are working within the new fundamental standards. Partnership working so new ideas are introduced and we benefit from working with experts. 2. Peo Dedicated HR l employee relations resource to ensure a Consistent approach to staff management. Pro-active succession planning through the identificalion, Iraining, and development of rislng stars Person cenlered annual appraisals for all staff. Develop & implement remuneration strategy and policy. Revamp the staff induction process. Overhaul of recruitment processes lo attract new entrants. Review and update sickness absence monitoring and methodology. The belter management of bank staff. Review training and development offering incjuding existing statutory and mandatory training. Develo me Effective management of our loan facility to ensure we can maximise future growth potential. Atlracl other small organisalions to become part of ourAbbeyfield family. Growth in our almshouse portfolio where there is a strategic fit. Continue to facilitate and be an active member of the Abbeyfield movement in the North. Secure a beneficial property lease agreement with Abbeyfield Living Society, and then a longer-tem arrangement. (1) 4. Technolo Continued development of Access databases to cut wasted lime and make processes simple. A5SiStive technologies for residents such as bed to bathroom lighting, video call I monitoring systems. falls monitoring systems and wireless sensor. Maximise the potential of exisling and newly introduced systems to cut waste, make savings, and improve quality and governance.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Golng concern The resources, finances and funds of ATD have been impacted in many ways throughout the year and this has affected trading performance and our cash posilion. Managing cash and resources effectively has become a key part of our normal operation, and we have focussed on many areas of our operation lo make sure resources we manage our resources and spending effectively. Despite the unprecedenled challenges of the cost-of-living crisis and inflation, operations and the business are more focused in being financially prudent during these unprecedented conditions. Through the effective use of resources. and careful management, the business can look forward to benefiting from 'controlled' operating conditions and on this basis, the accounts have been prepared on a going concern basis. Furthermore, the ATD Board is confident in the prospects of the company and ils ability to continue lo operate. The membership and strong leadership of the ATD Board will conts'nue to sleer the business to benefit all residents and further strenglhen govemance and financial stewardship. Rlsk assessment The executive work closely with the Trustees in identifying major risks facing the Charity and the services it operates that would have an impact on its ability to continue to provide services. maintain ils status as a reputable provider of services and remain financially viable. Strategies and control mechanisms are PLtt in place to mitigate or eliminate the risks identified where appropnale, and these are regularly reviewed by the Board of Trustees. Volunteers Finally, I would like to thank all our volunteers, staff, and my fellow TrusteeslDirectors for their help over the year. Our charitable slatiis, the provision of companionship and high standards of support differentiate us from other providers and allow us to clearfy position ATD as a unique provider of housing and care for older people in our area. On b half of the bo8rd A L Hill (Chair} DirectorJTrustee 27 September 2024
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees of Abbeyfield The Dales Limited, hereafter referred to as ATD, piesent their report and acGounts for the year ended 31 March 2023. status ATD is a company limited by guarantee as defined by the Companies Act 2006 and it is govemed by ils articles of association. ATD is a registered Social Landlord with solely charitable objectives and it is a registered charity. Results The consolidated income and expenditure account for the year is set out on page 15. Trustees The Trustees, who are also the directors for the purpose of Company Law. and who served during the year up to the date of signature of the financial statements were: A L Hill (Chair) D Smith (Deputy Chariman) l R Hepworth (Company Secretary) N Whltham (Resigned 31 August 2024) M Carter AAshby (resigned 27 October 2023> F J Johnson (Resigned 31 May 2024} I Price T P Carroll R G Rawling P Myers (Appointed 26 May 20231 P Myers {Appointed 26 May 20231 J Connelly (Appointed 26 May 2023) A Massinghatn (Appointed 31 May 2024> A Hunt (Appointed 31 May 2024) ATD has insurance to indemnify the Board of Trustees against any liability when acting on its behalf. Audltors Azets Audil Seryices {fomierly known as Naylor Wintersgill) were appointed auditor to the company in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put al a General Meeting. Objectlves of the Soclety ATD'S objectives are.. To offer a safe and happy environmenl forAbbeyfield residents and other users of the facilities. To maintain charges to residents at a level that can be afforded by all those wanting sheltered accommodation after allowing for Housing Benefits. To make a sufficient financial surplus to enable the housing stock lo remain in good repair and to enable investment in new schemes to be funded. The Truslees are committed to furthering ATD'S objects through the provision of high quality, affordable housing and housing management support for the over 55s. In doing so. the Trustees monitor the extent of resources of ATD to ensure Ihat the cost of running and maintaining the facilities and the ability of residents to make payments from their own resources or receive the required public funding is in balance and this is central to their decision making. The Trustees continue to monitor ATD'S operations and planning to ensure continued adherence to The Charity Commission's public benefit guidan. including its guidance on fee-charging. The Trustees will continue to ensure seNices are available and affordable for individuals whilst not compromising on the quality of the SeiCe we provide.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 Abbeyfleld Services: A Reflection on 2023 - 2024 There has been strong business performance in the current year as ATD emerges from a number of consecutive and challenging trading years caused by the global Covid-19 pandemic and the cost of living crisis. The business has weathered these macro-economic shocks through close collaboration between the Board of Trustees and Ihe Senior Leadership Team. Several key decisions and actions have been taken in the last and current financial year to slabilise working capilal, give certainty of some key variable costs, and a focus on managing cash balances, income and cost control more effectively. These actions have provided additional resour8 and stabilised business finances lo enable more predictability of the financial performance and look to a future of growth and increasing prosperity, Examples of decisions and action taken are as follows- The Board along wilh the Senior Leadership Team took steps to fix a further tranche of it$ current loan portfolio lo guard against future inlerest rate increases. There is now in excess of 500kn of the existing loan portfolio subject lo a fixed interest rate, and this improves the rtaintY of our cashflows for the immediate years ahead. The Board agreed to sell a vacant an unused out-building and parcel of land on 8 Slte Ihal generated a significant cash injection and surplus on disposal. Abbeyfield Burnley Society chose lo transler their assets and seNices lo Abbeyfield the Dales. This has brough a further injection of cash as well as the continuing trading conlribution. Alongside these key events, the Senior Leadership Team have made progressing in bringing greater fi'nancial discipline and cost control to all servIs. these improvemenls and chang8s conlinue. There has been a focus on reducing cost through the neg0118110n of key areas of cost such as energy costs and insurance premiums, and this trend will continue to ensure we receive the same or more al a reduced cost. The Senior Leadershlp Team will continue to work lo bring greater financial discipline, resilience, and certainty to the financial performance and position of Abbeyfield The Dales. This will ensure there is a strong platform lo continue to invesl in existing seryiTrs whilst steadily growing our portfollo of properties and seryices that we manage. The Board of Trustees continues to look for business development opportunities so that more residents within our operating heartland can benefit from the qualily and person cenlred approach that Abbeyfield The Dales provides.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The table below outlines the numbers of available units and the service5 provided at each of the properties managed by the ATD.. Independent Supported Houslng Resldentlal Livlng Houslng Wlth Care Care Property Owned Fern House, Bingley Grove House, Ilkley The Beeches Menston Kirkview, Shipley Woodview, Saltaire School Street, Pudsey Elbolton, Grassington Abbeyfield Court, Ilkley Abbeyfield Lodge. Ilkley Pawson Cottage Homes, Ilkley Charles Edward Sugden Alms House Harriet street, Bumley St Stephens Street. Burnley 49 42 28 30 16 12 13 11 11 51 34 119 46 Managed Propertles Leyland's Lane, Heaton Ing Royde, Halifax Abbeyfield House, Settle Abbeyfield House, Barnoldswick Woodlands, Skiplon 30 12 12 31 24 61 Our Day Care Centre Services across Fern House and Grove House facilitate 25 and 15 service users respectively each week.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 Organisational and Decision.Making Structure The ultimate accountability for ATD lies with the Board of Trustees, who are responsible for the oversighl and stewardship of ATD in ensuring the decision making of the executive and governance is in the besl interests of the residents it serves, meets the core principles of ATD and meets currenl legislation and best practice. The Board of Trustees is 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 the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and for taking reasonable steps for the detection and prevention of fraud and irregularities. There are four committees of the board, each with terms of refence approved by the board and they help to support the board in the exercise of due diligence and detailed scrutiny. The committees are as follows.. Audit and Risk Committee which applies scrutiny to risk management, financial controls, management accounls, operating budgets. the slatutory financial statements and oversees the external audit relationship. Remuneration Committee which scrutinises and approves the remuneration policy, pay differentials and the annual pay award. including the remuneration package of the Chief Execulive and the Senior Leadership Team. Quality Governance Committee which oversees arrangements for all aspects of quality governance and provides board assuran conceming the provision of evidence based high quality care and regulatory compliance, supports the board and managemenl team in delivering a culture of continuous improvement and oversees the systems and processes by whiGh thi5 Outcome is achieved, including organisational learning in compliance with best praclise. Business Development Committee which supports the board to enable ATD to realise its gr0h ambitions by evaluating new opportunities or projects and applying assessment criteria which ensures that only initiatives that are consislenl with the Abbeyfield The Dales principles, are financially robust and affordable within the business plan and existing skill sels are recommended to and adopled by board. Related Partles The governance and structure of the Abbeyfield Movement (of thich ATD is an affiliated member) is being restructured lo recognise that Abbeyfield is a Global Movement. Part of this has been through the formation of natlonal bodies. ATD is now part of Abbeyfield England which in turn is governed by a world council.
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Value for Money Value for Money is about being effective in how we plan. manage and operate Abbeyfield The Dales. It requires providing a high qualily service to our resident5 to enhance their lives, in line with Ihe Abbeyfield guiding principles, by making the best use of resources available to us. The Regulator of Social Housing {RSH) issued a new Value for Money Standard in April 2017, and a technical note in April 2018. These identified 7 metrics which providers of social housing are expected to report their performance against in their annual report. The latter document acknowledges that the metrics will not necessarily be appropriate for all providers and any influencing factors should be explained in the commentary. Metrlc Reinvestmenl 0/0 New supply delivered Social housing units Non-social housing units Note 2024 40/0 2023 10 40 0% 1% 00 EBITDA MRI interest cover % Headline social cost per unit Operating margin O Social housing units overall Return on capital employed £39,415 £35,495 10.73% 10.73% 4.290 4.290 1.41¥0 Reinveslment Oh _ the investment in properties (existing stock and new supply) as a percentage of the v81ue ol total properties held. New supply delivered (Social housing units>% the number of new social housing units delivered as proportion of total social housing units owned. Gearing % - net debt as a percentage of the value of properties held. EBITDA MRI interest cover '/4) the level of surplus generated compared to Ihe interest payable. Headline social housing cost per unil - social housing costs (as defi'ned by the regulator) divided by the total unils owned andlor managed. i. Operating margin (social housing lettings only) OA - operating surplusl(deficit) from social housing letlings divided by turnover from social housing lettings, ii. Operating margin {overall) °h overall operating surplusl(deficit) divided by overall turnover. Return on capital employed {ROCE)Oh _ compares the overall operating surplus to total assels less current liabilities. Note There has been investment in most of our properties, where the Regulator of Social Housing has granted permission to Llse recyclable capital grant funding for a large fire safety works programme to enable belter compliance with the updated Regulatory Refomi (Fire Safety) Order 2023. In addition, limited progress has been made in a modesl development program with some pre-development, sulvey and planning works being carried out. There has been investment in most of our properties, where the Regulator of Social Housing has granted permission to use recyclable capital granl funding for a large fire safely works programme to enable better compllance with the updated Regulatory Refomi (Fire Safety) Order 2023. In addition, limited progress has been made in a modest development program wilh some pre-development, survey and planning works being carried out. ATD has loan finance and this is being repaid over a 25 year term. Interest cover has reduced as a result of the significant increase in interest rates during the year,. the Board of Trustees has fixed the interest rate of circa 50°/o of the loan to minimise any further impact and to provide some certainty for the next 3 years. The increase in headline social cost per unit is driven by increased costs as a result of the current economic climate. Cost per unit for most residents includes the cost of providing 2 meals each day, which is a condition of tenancy, and is unusual for registered social landlords. 10-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 F & G Operating margin has improved during the year due to a stronger trading performance through better occupancy and a greater focus on cost control. but without compromise lo the quality of service provided. Code of Governance The Board of Trustees and CE manage the affairs of ATD in accordance with the guidelines of the Charity Commission and are working towards best practice guidelines from the National Housing Federalion. The Board also ensure that ATD adheres to all legislation and best practice stipulated by all regulalors, namely the Regulalor of Social Housing, Care Quality Commission, Health and Safety Executive and Fire Officers. The Contribution of Volunteers All Abbeyfield Society affiliated companies rernain committed lo one of its founding principles of involving volunteers in support of the daily operation of the services delivered to residents. The volunteer ethos remains strong within ATD and the breadth of experience of our volunteer5 provide a significant and posilive contribution lo the welfare and companionship of residents and in the running of some activities that benefit residents. The volunteer network remains strong in ATD and the Board of Trustees wish lo place on record their apprecialion for the efforts and dedication of all its volunteer5. Statement of Trustees, Responslbllltles The Board ofTrustees is responsible for preparing the Strategic Report, Trustees, Report and the financial statements In accordance with all applicable law and gUlatIOn. Company law requires the Board of Trustees to prepare financial statements for each financial year. Under that law, the Board of Trustees have elected to prepare financial slatemenls in accordance with the United Kingdom Generally Accepted Accounting Practice, United Kingdom Accounting Standards and applicable law, and have adhered lo valuation of its fixed assets and treatment of Social Housing Grant as specified in FRS102 and the Housing SORP 2018. Und8r Company Law, the Board of Trustees must not approve the financial Statements unless Ihey are satisfied that they give a true and fair view of the stale of affairs of the company profit and loss for that period. In preparing these financial statements, Ihe Trustees are required to.. Select suitable accounting policies and apply them consistently; Make judgements and accounting estimates Ihat are reasonable and prudent., Stale whether applicable UK Accounling Standards have been followed, subject to any material departures disclosed and explained in the financial stalements., Prepare the financial statements on the going cOnM basis unless il is inappropriate to presume that the group will continue in business. 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 al any time the financial position of the Company and the group and enable them to ensure the financial statements comply wilh Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the group and hence for taking reasonable steps for the prevention and deteclion of fraud and irregularities. Statement of the SoGlety's System of Internal Flnanclal Control The Board of Trustees is responsible for the ATD'S system of intemal financial control. It recognises that such a syslem can provide reasonable but not absolute assurance against material misstatement or loss. The main features of the inlernal control system are: A risk register and actions being taken to mitigate those risks that is reviewed by The Board each quarter to test that all risks are covered and the suitability of aclions being taken., standing orders and financial regulations which delineate responsibilities and levels of aulhorities., Annual budgets that are set for each property in the context of a longer-term plan with clear accountability for control of the budget- Annual review of risk management., Formal recruitment, induction, employment policies and checks., The Board's reviews and approval of all updates and amendments to policie5 and procedures. 11
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Monthly management accounts, key performance indicator reporting and explanation lo the Executive and The Board of Trustees: A planned works programme that will inform the planning of future investment decisions and funding r8quirements', Trustee approval of the parameters under which investment in properties is made. The application of additional scrutiny and guidance from the audit and risk committee and the remuneration committee. The Trustees regularly review the effectiveness of the system of intemal financial controls and ensure practices are amended to strengthen financial and operational control where necessary. statement of dlsclosure to audltor So far as each person who was a Trustee at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individua11y have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of all relevant audit information and to establish that the auditor of the Company is aware of that information. On ehalf of Ihe board A L Hill (Ch Dlrector and Trustee 27 September 2024 12-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ABBEYFIELD THE DALES LIMITED Opinion We have audited the financial statements ofAbbeyfied the Dales Limited (the 'parent company,) and its subsidiaries (Ihe 'group') for the year ended 31 MarGh 2024 which comprise the group profit and loss account, the group balance sheet. the group statement of changes in equity. Ihe company statement of changes in equity. the group slatement of cash flows. the company statement of cash flows 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 R6porting standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial slatements.. give a true and fair view of the state of the group's and Ihe parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls 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 Auditovs responsibililies for th8 aiidit ol the finanGial statements section of our report. We are independent of the group and parent company in accordance with the elhical requirements that are relevant to our audil 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. Concluslons relating to golng Concern In auditing the financial statements. we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Ba8ed on the work we have performed, we have not Identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are aulhorised for issue. Our re5ponsibililies and the responsibilities of the directors with respect lo going concern are described in the relevant sections of Ihis report. Other Informatlon The other information comprises the information included in the annual report other than the financial statements and our auditor's report Ihereon. The directors are responsible for Ihe 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 slated in our report. we do not express any fomi 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 stalemenls or our knowledge oblained in the course of the audit, or otheISe appears to be materially misstated. If we identify such material inconsistencies or apparenl material misstalemenls, 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 olher information, we are required to report that fact. We have nothing to report in this regard. Oplnions on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the strategic report and the directors, report for the financial year for which the financial statements are prepared is consistent with the financial statements- and the stralegic report and the directors, report have been prepared in accordance with applicable legal requirements. 13-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ABBEYFIELD THE DALES LIMITED Matters on whlch we are requlred to report by exceptlon In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audil, we have not identified malerial misstatements in the strategic report or the directors. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kept by Ihe parent company, or returns adequate for our audit have not been received from branches not visited by us,. or the parent company fi'nancial statements are not in agreement with the accounting records and returns. or certain disclosures of directors, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responslbllltles of dlrectors As explained more fully in the directors, responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that Ihey give a true and fair view, and for such internal control as the directors determine is necessary lo enable the preparation of financial stat8ments that are free from material misstatement, whether due lo fraud or error. In preparing ihe financial statements, the directors are responsible for assessing the parent company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the directors either intend to liquidale the parent company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statement5 as a whole are free from material misstalemenl, whether due to fraud or error, and to issue an auditors report Ihat includes our opinion Reasonable assurance is a high level of assurance but is not a guarantee Ihal 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. A further description of our responsibilities is available on the Financial Reporting Council's website at.. hltp$:11 www.frc.org.Ltklauditorsresponsibilities. This description fomis part of our audilorfs report. 14-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ABBEYFIELD THE DALES LIMITED Extènt to whlch the audit was Gonsldered capable of detectlng irregularlties, including fraud Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to delect material misstatements in respect of irregularities, in¢luding fraud. We obtain and update our understanding of the entity. its activities, its control environment, and likely future developments, including in relalion to the legal and regulatory framework applicable and how the entity is complying with thal framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance wilh laws and regulations, includlng fraud, we designed procedures which included.. Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud-, Reviewing minutes of meetings of those charged with governance. Assessing the extent of compliance with the laws and regulations considered lo have a direct material effect on the financial statements or the operations of Ihe entily through enquiry and inspeclion,. Reviewing financial statement disclosures and testing to supporting documentation to assess compllance wilh applicable laws and regulations. Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness. evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that W8 will not delect all irregularities, including those leading to 8 material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transaotions reflected in the financial statements, as we will be less likely to become aware of inslances of non-compliance. The risk of not delecling a material misstatement resulling from fraud is higher than for one resulting from error, as fraud may involve colluslon, forgery, intentional omissions. misrepresentations, or the override of internal control. A further description of our responsibilities is available on the Financial Reporting Council's website at- https-.11 www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditoff s report. Use of our report This report is made solely to the company's members, as a body, in accordance with Chapler 3 of Part 16 of the Companies Act 2006, Our audit work has been undertaken so thal we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullesl extent permitted by law, we do not accept or assume responsibility to anyone other than the company and Ihe company's members as a body, lor our audit work, for this report, or for the opinions we have formed. Alison Whalley (Senlor Statutory Audltor) For and on behalf of Azets Audit Servlces 27 September 2024 Accountants Statutory Auditor Carlton House Grammar School Street Bradford BD14NS 15-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) GROUP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Turnover Operating costs other operating income 8,798,977 (8.262,663) 403.025 7,628,574 (7,458,792) 160,126 Gross surplus 939,339 329,908 Interest receivable and similar income Interest payable and similar expenses 8,843 (550,706) 234 (363,172) Profitlllossl befor8 taxation 397,476 (33,030) Tax on profiV(loss) (990) Proflvllossl for the flnancial year 397,476 (34,020) 16-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) GROUP AND COMPANY BALANCE SHEETS AS AT 31 MARCH 2024 Group 2024 Company 2024 2023 2023 Notes Flxed assets Tangible assets Investments 12 10 26.027,109 53,715 25.386.924 51,111 25.038.676 24,396,685 26,080.824 25,438,035 25,038,682 24,396,691 Current assets Debtors Cash al bank and in hand 14 450.436 681,947 328,838 403,264 447,025 619,770 320,585 305,392 1.132,383 732,102 1.066,795 625,977 Credltors.. amounts falling due withln one year 15 (1,072,540) (1,032,778) {1,074,823) (1,012,957) Net current assetsl(Ilabllltlesl 59,843 (300,676) {8.028) (386,980) Total assets less current Ilabillties 26,140,667 25,137,359 25,030,654 24,009,711 Credltors.. amounts falllng due after more than one year 17 {15,172,611) (14,567,330) (14,926,072) (14,315,393) Net assets 10,968,056 10,570,029 10,104,582 9,694,318 Capital and reserves Designated reserves Profil and loss reserves 19 19 3,857 10.964,199 3,306 10,566,723 10,104,582 9,694,318 Total equity 10,968,056 10,570,029 10,104,582 9,694,318 As permitted by s408 Companies Act 2006. the Company has not presented its own profil and loss account and related notes. The Company's gain for the year was £415,084 (2023 £56,669 loss). The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 an are signed on its be f by.. A L Hill {Chair) Dlrector Company Registratlon No. 09008680 17-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) GROUP STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024 Deslgnated Proflt and reserves loss reserves Total Balance at 1 Aprll 2022 2,755 10,601.294 10,604,049 Year ended 31 March 2023: Loss and total comprehensive income Transfers {34,020) (551) (34,0201 551 Balanc8 at 31 March 2023 3,306 10,566,723 10,570,029 Year ended 31 March 2024: Profit and total Comprehensive income Transfers 397,476 1551) 397,476 551 Balance at 31 March 2024 3,857 10.964,199 10,968,056 18-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024 Profit and loss reserves Balanco at 1 Aprll 2022 9,750,987 Year ended 31 March 2023: Loss and total comprehensive income for the year (56,6691 Balance at 31 March 2023 9,694,318 Year ended 31 March 2024: Profil and total comprehensive income for the year 410,264 Balance at 31 March 2024 10,104,582 19-
ABBEYFIELD THE DALES LIMITED {A COMPANY LIMITED BY GUARANTEE) GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations Inleresl paid Income taxes paid 21 1.895,004 {550,706) {990) 711,170 (363,1721 {4621 Net cash Inflow from operating activities 1,343.308 347,536 Investlng actlvltles Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Proceeds from disposal of investments Interest received Dividends received Other income received from investments (1,143,390) 244,721 (2,604) 5,593 647 2,603 (190,433) 40,516 168 581 (515) Net cash used in Investlng actlvltles (892.430) {149,6831 Flnanclng actlvltles Repayment of bank loans (172,195) {233,978) Net cash used In flnanclng actlvltles (172,195) (233,9761 Net Increasel(decr8ase) In cash and cash equivalents 278,683 (36,123) Cash and cash equivalents at beginning of year 403.264 439,387 Cash and cash equlvalents at end of year 681,947 403,284 -20-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations Interest paid 22 1.896,851 (538,357) 671,692 {354,566) Net cash inflow from operatlng activitles 1,358,494 317,126 Investlng actlvltles PurGha5e of tangible fixed assets Proceeds from disposal of tangible fixed assets Interest recelved (1,124,647) 244,721 5.390 (145,433) 142 Net cash used In Inv8Stlng actlvltles (874,536) (145,291> Flnanclng actlvltles Repayment of bank loans (169,580) (230,391) Net cash used In f5nanclng actlvltles (169,580) (230,391 } Net increaselldeerease) In cash and cash equlvalents 314.378 (58,556) Cash and cash equlvalents at beginning of year 305,392 383,948 Cash and cash equivalents at end of year 619,770 305,392 -21
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies Company Informatlon Abbeyfied the Dales Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is Grove House, 12 Riddings Road, Ilkley. LS29 9BF. The group consists of Abbeyfied the Dales Limited and all of its subsidiaries. 1.1 Accounting convention These financial statements have been prepared in accordance wilh FRS 102 °The FinancSal Reportlng Standard applicable in the UK and Republic of Ireland" ('FRS 1021 and the requirements of the Companies Act 2008. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. The consolidated group financial statements consist of the financial statements of the parent company Abbeyfied the Dales Limited together with all entities conlrolled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates. All f1nancial statements are made up lo 31 March 2024. Where necessary, adjustments are made to the financial slalements of subsidiaries to bling the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminaled unless the transaction provides evidence of an impairm8nl of the asset transferred. 1.2 Golng concern Al the time of approving the financial statements, the directors have a reasonable expectation thal the company has adequate resources to continu8 in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Turnover Tumover is recognised at the fair value of Ihe consideration received or receivable for goods and services provided in the norrnal Gourse of business, and is shown net of VAT and other sales related taxes. The falr value of consideration takes into account trade discounts, settlement discounts and volume rebates. When cash inflows are deferred and represent a financing arrangement, the fair value of Ihe consideration is the pres8nt value of the future receipts. The difference been the fair value of the consideration and the nominal amount reiVed is recogni5ed as interest income. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispalch of the goods), the amount of revenue can be measured reliably, il is probable that the economic benefits associated with the transaction will flow lo the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. 1.4 TanglE>le flxed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. -22-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (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.. Building structure Roofs Windows and doors Kitchens and bathrooms Lifts Fixtures, fittings and equipment Computers Motor vehicles 1% on cost 2Vo on cost 20A on cost 3.330A on cost 6.670A on cost 200 on cost 33.33% on cost 20% on cost 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 profit and loss account. 1.5 Flxed asset Investments Equity investments are measured al fair value, except for those equity inveslments that are not publicly traded and whose fair value cannot otheNise be measured reliably, which are recognised at cost less impairmenl until a reliable measure of fair value becomes available. In the parenl company financial statements, investments in subsidiaries, associales and jointly controlled enlilies are initially measured at cost and subsequently measured al cost less any accumulat8d impairment losses. A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operatlng policies of the entity so as lo obtain benefits from its aclivilies. An associate is an enlily, being neither a subsidiary nor a joint venture, in which the company holds a long- term interesl and where the company has significant influence. The group considers thal il has significanl influence where il has the power to participate in the financial and operating decisions of the associate. Inveslmenls in assoclates are initially recognised at the transaclion price (including transaction costs) and are subsequently adjusted lo refiect the group's share of the profil or loss, other comprehensive income and equity of the associate using the equity method. Any differen between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised a5 goodwill. Any unamortised balance of goodwill is included in the carying value of the inveslment in associates. Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made paymenls on behalf of the associate. In the parent company financial statements, investments in associates are accounted for at cost less impairment. Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities. -23-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles (Contlnued) 1.6 Impairment of fixed assets At each reporting period end date, the group reviews the carrying amounts of its tangible assels to determine whether there is any indication thal 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) Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit lo which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairmenl as a single asset. Any goodwill included in the carrying amounl of the investment is not tested separately for impairment. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the eslimaled future cash flows are discounted lo their present value using a pre-tax discount rale that reflects current market assessments of the lime value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimaled lo be le5S than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried al a revalued amount, in which case the impairmenl loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if. the reasons for the impairment loss have ceased to apply. Wnere an impairmenl loss subsequently reverses, the carrying amount of the asset {or cash- generating unit) is increased to the revised eslimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for Ihe asset (or cash-generaling unil) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss accounts, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation Increase. 1.7 Cash and cash equlvalents Cash and cash equivalenls are basic financial assets and include cash in hand, deposits held at call wilh banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.8 Flnanclal Instruments The group has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Instruments Issue5, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and 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 setlle on a net basis or to realise the asset and settle the liability simullaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured al transaction price including transaction costs and are subsequently carried at amortised cost using the effective interesl 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. -24-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounling pollcles (Continued 1.8 Financial instruments (continued) Other financial assets Other financial assets, including investments in equity instrumenls which a not subsidiaries, associates or joint ventures, are initially measured at fair value. which is normally the transaction price. Such assets are Subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values ¢annot be measured reliably are measured at cost less impairment. Impairment of flnanclal assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators ol impairment at each reporting end dale. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future Gash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profil or loss. If there is a decrease in the impaimient loss artsing from an event occurring after the impairmenl was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impaimienl not previously been recognised. The impairment reversal is recognised in profil or loss. Derecognition of financlal assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards ol ownership to another entity, or if some significant risks and rewards of ownership are retained but control ot the 8sset has transferred lo another party that is able to sell the asset in its entirety to an unrelated third party. Classification of linancial liabilities Financial liabilities and equily instruments are classified according to the substance of the contractual arrangements entered into. An equity inslrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Baslc financial liabililies Basic financial liabilities, including creditors, bank loans. loans from fellow group companies and preference shares thal are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction. where the debt instrumenl is measured at the present value of the future payments discounted al 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 ol business 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. -25-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles IContSnued> 1.9 Taxation The tax expense represents the sum of the tax currenlly payable and deferred tax. Current tax The lax currently payable is based on taxable profit for the year. Taxable profit differs from net profil as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for cuent tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised lo the extent that it is probable that they will be recovered against Ihe reversal of deferred lax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that il is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and10ss account, except when it relates to items charged or credited directly lo equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred lax assets and liabilities relate to taxes levied by the same tax authority. 1.10 Employee beneflts The costs of short-lerm employee benefils are recognised as a liability and an expense, unless Ihose costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday enlitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or lo provide termination benefits. 1.11 Government grants Governmenl grants are recognised al the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating lo an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount. 1.12 Reserves Revenue reserve The revenue is an accumulation of all surplus and deficits arising from the company's ordinary operations including any donations and legacies received free of any restrictions. These funds are freely available for use by the company. Deslgnated reserves Designated reserves relate to funds set aside by the Trustees for specific purposes. -26-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Judgements and key sources of estimation uncertainty In the application of the group's accounting policies, the directors and trustees are required lo make judgements, estimates and assumptions about the carrying amount of assets and liabilities thal are nol 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. Thè estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised where the revision affecls only Ihat period, or in the period of the revision and futu periods where the revision affects both current and future periods, Turnover and other revenue 2024 2023 Turnover analysed by class of buslness Social housing rentals Residential care fees Domicillary care income Day centre charges Ground rents and maintenance Other aclivilies and sundry income Recharge of costs and seNices 5.146,870 2,124,233 1,225,529 110,667 7,521 171,744 12.413 4,313,730 1,963,495 1,164,452 68,548 8,208 93,710 16,431 8,798,977 7,628,574 2024 2023 Turnover analysed by geographlcal market United Kingdom 8,798,977 7,628,574 2024 2023 other revenue Donations received Grants received Insurance income Donation of Burnley Society 7,505 136,575 6,792 151.652 1,682 258,945 403.025 160.126 -27-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Employees The average monthly number of persons employed by the group and company during the year was.. Group 2024 Number Company 2024 Number 2023 Number 2023 Number Operational Governance and support 250 227 17 250 19 227 17 Total 269 244 269 244 Th8ir aggregate remuneration comprised: Group 2024 Company 2024 2023 2023 Wages and salaries 5,607.567 5,050,575 5.807,567 5,050,575 Gross surplus 2024 2023 Operating profit for the year is staled after chargingl(crediting): Government grants Depreciation of owned tangible fixed assets Profil on disposal of tangible fixed assets (136,174) 416,143 (160 026) {151,652) 397,517 119,943 245,865 The profit on disposal relates to the sale of Ebolton. Interest payable and simllar expenses 2024 2023 Inlerest on flnanclal Ilabllltles measured at amortised cost: Interest on bank ov6rdrafts and loans 550.706 363.172 -28-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Interest recelvable and slmilar Income 2024 2023 Interest income Interest on bank deposits 5,593 168 other income from investments Dividends received Gains on financial instruments measured at fair value through profit or loss 647 2,603 581 (5151 Total income 8,843 234 Audltor's remuneratlon 2024 2023 Fees payable to the company's auditor and associates.. For audlt ser41ces Audit of the financial statements of the group and company Audit of the financial statements of the company's subsidiaries 20,400 18,600 8,880 7.800 29,280 26,400 Taxatlon 2024 2023 Current tax UK corporatlon lax on profits for the current period 990 The actual charge for the year can be reconciled to the expected chargel{credit) for the year based on the profil or105s and the standard rate of lax as follows.. 2024 2023 Profivlloss) before taxation 397.476 (33.0301 Expected tax chargel(credit) based on the standard rale of corporation tax in the UK of 19.00 % {2023'. 19.00 /0} Tax effect of expenses that are not deductible in determining taxable profit Unutilised lax losses carried forward Tax effect of income not taxable in determining taxable profit 75,520 {6,276) 7,266 1,639 177,159} Taxation charge 990 -29-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Fixed asset investments Group 2024 Company 2024 2023 2023 Notes Investments in subsidiaries Unlisted investmenls 11 53,715 51,111 53,715 51,111 Movements In flx8d asset Investments Group Investments Cost or valuatlon At 1 April 2023 Valuation changes 51,111 2,604 At 31 March 2024 53,715 Carrylng amount Al 31 March 2024 53,715 At 31 March 2023 51,111 Movements In fixed asset Investments Company Shares In subsldlaries Cost or valuatlon At 1 April 2023 and 31 March 2024 Carrylng amount At 31 March 2024 At 31 March 2023 11 Subsldlarles Details of the company's sub5idlaries at 31 March 2024 are as follows.. Name of undèrtaking Registered office Class of shares held Held Dlrecl Abbeyfield Court Limited Abbeyfield Lodge {Ilkleyl Limited Pawson Cottages Homes Charles Eilward Sugden's Almshouses England England Engl8nd England Ordinary Ordinary Trustee 100.00 100.00 100.00 100.00 Trustee
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Tanglble flxed assets Group Buildlng structure Roofs Llfts Fixtures, fitlings and equlpment Motor vehi¢les Total Cost Al 1 April 2023 Additions Disposals 25,738.410 1,541.921 785,098 71,067 (82,288) (4,773) 485.502 1,157,792 10,732 276,491 12,335 28,935,960 1,143,388 (87.061) At 31 March 2024 26.441,220 1,608,215 496,234 1,434,283 12,335 29,992,287 Depreclation and Impalrment At 1 April 2023 Depreciation charged in the year 2,265,110 190.413 188,092 900,487 4,934 3,549,036 281,641 32,136 32,592 67,310 2,464 416,143 At 31 March 2024 2,546,751 222,549 220,684 967,797 7,398 3,965.179 Carrylng amount At 31 March 2024 23,894,469 1.385,666 275,550 466,486 4,937 26,027,108 At 31 March 2023 23,473,300 1.351,508 297,410 257,305 7,401 25.386,924 Company 8ulldlng strueturn Roofs Llft8 Flxtures, fittSngs and oqulpment Molor vehlclès Total Cost Al 1 April 2023 Additions Disposals 24,743,448 1.541,921 785,098 71.067 (82,288) (4,773) 485,502 1,035,608 10.732 257,748 12,335 27,818,814 1,124,645 (87,061) At 31 March 2024 25,446,258 1.608,215 496.234 1,293,356 12,335 28,856,398 Depreclatlon and impairment At 1 April 2023 Depreciation charged in the year 2,161,574 190.413 188.092 877,116 1,934 3,419,129 267,938 32,136 32,592 60,460 2,467 395,593 At 31 March 2024 2,429,512 222,549 220,684 937,576 4.401 3,814,722 Carrylng amount At 31 March 2024 23,016,746 1.385,666 275,550 355,780 7.934 25,04rf,676 At 31 March 2023 22,581,874 1.351,508 297,410 158,492 10,401 24,399,685 31
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 13 Flnancial instruments Group 2024 Company 2024 2023 2023 Carrylng amount of financial assets Debt instruments measured al amortised cost Instruments measured at fair value through profit or loss 251,858 141,958 142.140 150,826 53,715 51,111 Carrying amount of flnanclal Ilabllltles Measured al amortised cost 8,488,806 8,613,687 8,465.139 8,623,491 14 Debtors Group 2024 Company 2024 2023 2023 Amounls falllng due wlthln one year: Trade debtors Other debtors Prepayments and accrued income 248.258 3,600 198,578 112,814 29,144 186,880 245,215 12,916 188.894 112,374 29,766 178,445 450,436 328,838 447,025 320,585 15 Credltors: amounts falllng due wlthln one year Group 2024 Company 2024 2023 2023 Notes Bank loans Trade creditors Amounts owed to connecled company Corporation lax payable Other taxation and social security Government grants Other creditors Accruals and deferred income 18 107,011 454,785 125,000 128,364 392,464 104,396 447,043 150,706 125,716 383,153 10,180 990 63.810 116,406 210,792 119,952 76,061 118,946 48,097 142,640 76.081 116.130 48.097 132,390 63,810 109,640 210,792 109,666 16 1,072,540 1,032,778 1,074,823 1,012,957 16 Deferred grants Group 2024 Company 2024 2023 2023 Arising from government grants 7,680,284 6,921.621 7,584,830 6,799,401 -32-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Deferred grants (Continued) Deferred income is included in the financial statements as follows: Current liabilities Non-current liabilities 118,946 7.561,338 116,406 6,805.215 116,130 7,448.700 109,640 6,689,761 7,680,284 6,921,621 7.564,830 6,799,401 17 Creditors: amounts falllng due after more than one year Group 2024 Company 2024 2023 2023 Notes Bank loans and overdrafts Government grants 18 16 7,611,273 7,561,338 7,762.115 6,805,215 7,477,372 7,448,700 7,625,632 6,689,761 15,172.611 14,567,330 14,926,072 14,315,393 18 Loans and overdrafts Group 2024 Company 2024 2023 2023 Bank loans 7.718,284 7,890,479 7,581,768 7,751.348 Payable within one year Payable after one year 107.011 7.611,273 128,364 7,762,115 104,396 7,477,372 125,716 7,625,632 £4 million of the long-term loans are secured by fixed charges over the Freehold property in the group. During the year year ended 31 March 2020 the Company obtained two new financlal loans. Both loans are over 25 years and the interest rate is 2.2 % above base rate. During the year ended 31 March 2024 the Company transferred £4m onto fixed rate agreements for five years with fixed rales of 6.68)/0 (£2m) and 8.77¥0 (£2m). The remainder of the boriowings remain on 2.20A above base rate. 19 Reserves Deslgnated reserves Designated reserves relates to funds set aside for future repairs and decorating costs at Abbeyfield Lodge. 33-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Events after the reportlng date The Trustees ofAbbeyfield The Dales took over the Trusteeship of Sir Frances Crossley Almshouses {SFCA) on the 1" April 2024. The retiring Trustees who had led and managed the almshouses for many years wished to transfer the contfol and running of them to an organisation with a proven track record primarily because the amount of regulation and complexity in running the almshouses had increased greatly and this added pressure to the small group of volunteer Trustees. The almshouses consist of 21 dwellings in a suburb of Halifax, close to the town centre, and gives Abbeyfield a greater presence in the local community being a short distance from one of our existing properties. The SFCA are the 3 in Abbeyfield's portfolio, and strengthens our knowledge and understanding of this form ol social housing. The almshouses currently have a 3181 December year end. and this wtll be aligned to Abbeyfield's standard year end during the coming financial year. On the 131h August 2024, the Abbeyfield Living Sociely (formerly The Abbeyfield Society) gave notice they are taking back the running of setvices in 5 properties they own, and that Abbeyfield The Dales has managed since 2016. This transfer will take effect on 1 $1 April 2025. The Board of Trustees have always sought lo secure the purchase of, or a longer-term agreement to manage these 5 properties in ils longer-term plans. The slrategic plan will evolve, and a change of direction has already been outlined in preliminary discussions. There will be a period of readjustment to enable Abbeyfield The Dales lo focus on their 14 remainlng properties (which they own) and look to the fulure with certainly and confidence in a growing and thriving organisation. There is a focus to make sure the financial viability of Abbeyfield the Dales will remain strong following this transfer, and our operating structures will be adjusted accordingly. The Board of Trustees and Chief Executive are completely focused on an orderfy transilion, to maintain a sustainable business (post transfer), and form the basis for future growth and prosperity. 21 Cash generated from group operatlons 2024 2023 ProfiV(loss) for the year after tax 397,476 {34,020> Adjustments for: Taxation charged Finance costs Investment income Gain on disposal of tangible fixed assets Deprecialion and impairment oftangible fixed assets 990 363,172 (234) 550,706 (8,843) (160,026) 418,511 397,520 Movements in working capital". (Increase)Idecrease in debtors Increase in Creditors Increaselldecrease) in deferred income (121,051) 59,565 758,663 32,479 59,769 (108,506) Cash generated from operatlons 1,895,001 711,170 -34-
ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Cash generated from operations- company 2024 2023 ProfiU(loss) for the year after tsx 410,264 (56.670) Adjustments for: Finance costs Inveslmenl income Gain on disposal of tangible fixed assets Depreciation and impaimient of tangible fixed assets 538,357 (5,3901 (160,026) 397.961 354,566 (142) 378,702 Movements in worklng capital: (Increase}Idecrease in debtors In¢re8se in creditors Increasel{decrease) in deferred income {126,440) 76,696 765,429 38,454 66,422 (109,640) Cash generated from operations 1,896,851 871,692 -35-