ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Company Registration No. 09008680 (England and Wales Charlty Reglstratlon No. 1160258 Houslng and Communltles Agency No. 5066 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) COMPANY INFORMATION Dlrectors A L Hill (Chair) D Smilh (Deputy Chair) l R Hepworth I Price R G Rawling T P Carroll J Connolly AMHunl M J Carter A Lockhart-mirams (Appointed 31 MAY 2024) (Appointed 25 July 20251 Senior leaders P Birkinshaw C Hobbins G Green (Chief Execulivel (Director of Operations) (Director of Support Services to 31 March 2025) (Financial Controller) N Mccaigue Company number 09008680 Reglstered office Grove House 12 Riddings Road Ilkley LS29 9BF Audltor Azels Audit Services Caillon House Grammar School Street Bradford 8D14NS Bankers Virgin Money 14 Broadway Bradford BDI 1EZ Unity Bank Suite 302 3rd Floor Centurion House 129 Deansgale Manchester M3 3WR ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Strategic report Truslees, report 5-11 Independent audilorfs report 12-14 Group profit and loss account 15 Group and company balance sheels Group statement of changes in equtty 17 Company statemenl of changes in equity 18 Group statemenl of cash flows 19 Company statement of cash flows 20 Notes lo the financial statements 21-37 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025 The diréctors present the stralegic report for Ihe year ended 31 March 2025. Review of the business Abb6yfield The Dales {ATD) continues to own and operate residential care. domiciliary extra care, supported housing, independent living services and almshouses across Wesl and North Yorkshire and East Lancashife. Wlhin the year, and the many years prior. ATD managed five properties owned by Abbeyfield Living Sociely, which were taken back following the end of a management contract on the 31st March 2025. The outlook for the future has never been stronger. Wth a dear strategy in place, our continued resilience has renewed our determination and sharpened our focus as we slep cOnf￿entlY into Ihe nexl chapter of our joumey. ATD continues to benefit from a stable. knowledgeable. and experienced Board which ensu￿$ ¢ontinuity of governance and oversight. The Board continues lo review and enhance Ihe skills and expertise of the Trustees, and have recenlly recruited a new member, A Lockhart-mirams, who was appointed to Ihe Board post year end to enhance the 'legal oversight and employment welfare, aspecl of our strategic and key business aims. The Trustees would like to recognise the considerable contribution of fv40 Trustees who rellred from the Board during the year. Bolh Frances Johnson and Nora ￿lIharn have been long serving Trustees in the Abbeyfield Movement and began their involvement with Abbeyfield Ilkley and Abbeyfield Bradford respectively before joining the ATD Board. They have been instrumental in supporting the development and modèmisalion of Ihe organisalion as well as the Executive Team. The Trustees would also like lo place on record their apprecialion to two Trustees, Pamela and Philip Myers, who look the opportunity lo retire within the year. The existing Trustees wish to express their gratitude and Ihanks for their invaluable contribution and seNice given to Abbeyfield Burnley over many years and later ATD. Allana Massingham and Dame Jacqueline Daniel both joined our board for a brief period, and we benefited greatly from their respective care expertise and ￿nsiderable knowledge and experience. Unfortunately, their other work commitments and interests beeame loo great lo the extenl Ihal they could no longer fully commit to their ATD Trustee roles, and both had to resign their position on our Board. Gwen Green, Senlor Leader of ATD took the decision to retire from her role as Director of Support Services. Gwen has been a key driving for￿ in the success of ATD, and the Irustees and senior leadership team wish Gwen the very best for her future ventures. As a result, our reporting lines have been updated to provide focus and support for the teams that are no longer undèr Gwen's direct management. Changes during the year There have been several changes in the currenl financial year that evidence ATD'S Continued growth, development, consolidation and effective operational management and control: these include: Sir Francis Crossley Almshouses (SFCA) joined our portfolio of almshouses on the 1st April 2024 expanding our geographical foolprint and ￿rnented our presence in Calderdale. The previous Trustees of SFCA wished to ensure a br(ght future for this almshouse and saw ATD as Ihe natural choice to ensure future improvements to the management of the resident relationship and mainlenance of Ihis property. We continue to look at all opportunities that are the right 'fit' for the ATD mt)del and approach lo providing housing and care services. In recognition of our strong track record in managing almshouses, ATD were invtled to lake management of another almshouse, Thompson Jowelt Memorial Homes. on behalf of their Trustees. This responsibilily allows the opportunity to share best practices, strengthen our position as a trusted operalor and reduces the pressures of finance, governance and regulations from the exisling Iruslees. The decision was made by the residents of Abbeyfield Lodge (Ilkley) Ltd lo close the limiled company and join ATD'S portfolio lo benefit'trom wider operational support and cost savings. This change happened on 1 st April 2025, and the process of winding up Abbeyfield Lodge {Ilkley) Ltd (a subsidiary of ATD) continues. Abbeyfield Living SocAely issued notice to ATD to terminate our lease agreement and take back the 5 managed prcsperties from 1 sl April 2025. This unexpected deveEopment ne￿Ssi1ated a broader restructuring of the organisation. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Due to the termination of the lease agreement with Abbeyfield Living Society. changes lo the organisational stluclure of ATD were necessary. Redundancies wilhin the Head Office were required lo make up for the loss of income, The restruolure meanl existing leams and individuals were required lo adapt and lake on slightly different responsibilities within their roles. Assessment of the year Cost control has been a critical focus this year in response to external pressures beyond our control. We maintained a disciplined approach to managing expenses to ensure we remained within budgel expectations and provided reassurance to regulators and stakeholders Ihal operations were being carefully managed. Many of our residents are keen lo see their money used responsibly. We now provide greater transparency and demonstrat8 value for money through a new annual report that deady OLtllines how funds are spent. Staffing The most signif1cant cosls and pressures at ATD are around staffing. We have invested a lot of lime and work into focussing on workforce shortages, sickness, challenges in recruiting permanent staff and lo become less reliant on agency workers to maintain safe staffing levels. To manage this ATD have implemented control strategies, such as: Investing in staff recruilment and retention.. We are in the second year of introducing the Bradford factor as process lo give managers a robust framework lo tackle sickness quicker. We have started the process of introducing pay progression and length of service lo reduce turnover and reliance on agency workers Workforce planning and rola oplimisalion.. We have progressed the implementation of our lime and attendance system (Sona). This is now key in identifying, forecasting and managing staffing needs with an increased focus on filling shifts with conlracled or bank staff before resorting lo agencies. Real Living Wage Employer.. We continue to be a Real Living Wage employer to 8llract and retain the right Calibre ol staff in a difficult and uncertain market. By controlling staffing costs ATD can rediiecl resources towards improving resident care. enhanGing facilities, and expanding services in line wilh our slrategy. The Board are keen lo continue to invest in our slaff with Ihe belief that a stable and happy workforca will provide a belter service to our residents. Planned Works Programme We adopted a Planned Works Programme al Ihe start of the year. This was a strategic approach lo maintain and upgrade our facilities over a lime frame. The aim was lo reduce the number of reactive issues that had previously resulted in inftaled costs of repairs. The Planned Wort(s Programme a15ows us to plan organisational and building needs and spread costs accordingly. This has been paramount in managing and controlling spend whilst also ensuring safely and compliance in our ageing buildings. Until recently Fire doors had been the single highest major cost of the planned works programme, due lo the latest regulatory requirements under fire safety legislation. Our Maintenance manager is now an accredited fire door inspector who is now able to instruct Ihe team on replacing and adjusting these doors in a safe, timely and cost- effective manner. As part of the Planned Works Programme, we have also introduced an asset Tegister to structure an approach in the raplacomenl of assets, and lo give leadership further insight of future expected replacement costs lo be phased in over future years, which will also allow lime to research and apply for possible grant funding. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Purchaslng Pollcy ATD have focused heavÈly on improving supplier management in ensuring value for money for residents. and our current procurement approach is now more structured and Iransparenl. Managers have greater autonomy lo manage their serVI￿S lo meet the needs of residents, giving them greater accountabilily in ordering goods they require within their budget allowance. Ensuring finanaal performance is maintained, approved suppliers are used, and ordering is carried out within Abbeyfield purchasing. elhical, and environmental policies. Plans for the future The Board continue lo monitor and review the progress on an agreed 3-year strategic plan, and continue lo focus on the 4 key areas- Care. People, Business Development and Technology. Care Falls monitoring technology. ATD a￿ looking into a smart lighting system designed for fall detection and prevenlion Ihal promotes safe and comfortable living for adults within our services. The system is designed lo delect falls in real lime and alert care givers, enabling prompt assistance. PCS Electronic care plans. The implemenlation of Person Centred Software (PCS), our electronic care planning system, has been successfully inslalled Ihroughoul all our services. PCS provides infomialion in real lime and management reports making the process efficient, accurate, effective and improves overall care co-ordination. Electronic Medication Administration record (eMAR). The implemenlalion ol eMAR system has been successfully installed throughout all our services. eMAR offers numerous benefits including reducing medication errors, Improved safety and provides better compliance. Poople Staff T&C's. ATD board have approved a pay progression policy and are in the final slages of implementation which focuses on 1) rewarding employees for lengih of service and 2) encouraging employee development and growth through qualification ￿rtIficates, both with the aim to relain valuable staff. boost overall productivity and improvè employee satisfaction. Real Living Wage Employer. ATD continues to pride itself with being 8 Re81 Living Wage Employer. We continue lo look al ways to improve our staff benefits. One we are exciled to explore further this year is a car salary Sacrifi￿ scheme. Buslness Development Future growth opportunity. We rernain committed to identifying and pursuing new opportunili8s for sustainable growth, whether this is through acquisitions or the management of smaller organisations. Future investment in our buildings. We continuously look at ways lo slrenglhen our competitive position by investing in our buildings and infrastiuclure. We also look to support innovalion in the setwices we provide by modernising our factlilies and integrating new lechnologies. This allows us to sland out in the market dellvering high quality care with state-of-the-art facilities and advanced technology. Tèchnology Investment in Technology. We have a growing awareness wilh technology in the market. ￿th ATD'S focus on investing in technology, il allows us stay ahead and signals our commitment lo conlinuous improvement, which is becoming increasingly important. We will continue to invest in systems that improve resident safely and wellbeing. improve operational efficiency and automation, freeing up staff lime. enabling them to focus on care, not paperwork. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 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 position. Managing cash and resources effedively has become a key part of our norm21 operalion. and we have focussed on many areas of our operation to make sure we manage our resour￿$ and spending effectively. Through the effective use of resourcEs, and careful management. the business can look foTward to benefiting from 'conlrolled' operating conditions and on this basis, the accounts have been prepared on a going concern basis. Furthermore, the ATD Board is confidenl in the prospects of the company and ils abilily to Gonlinue to operate. The membership and strong leadership of the ATD Board will conlinue to steer the bLtsiness to benefit all residents and further strengthen governance and financial stewardship. Rlsk assessment The executive work closely with the TTuslees in identifying major risks facing ihe Charity and the services it operates that would have an impacl on its ability lo continue to provide services, maintain ils status as a repulable provider of services and remain financially viable. Strategies and control mechanisms are put in place lo miligate or eliminate the risks identified where appropriate. and these are regularly reviewed by the Board of Trustees. Volunteers Finally, I would like to thank all our volunteers, staff. and my fellow TnJsteeslDirectors for their help over the year. Our charitable status, Ihe provision of companionship and high standards of support differentiate us from other providers and allow us to clearly position ATD as a unique provider of housing and ¢are for older people in our area. On behalfofthe board A L Hill (Chairl DIrectOr￿ruste8 26 Sepiember 2025 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees of Abbeyfield The Dales Limited. hereafter referred to as ATD, present their reporl and accounts for the year ended 31 Ma￿h 2025. Status ATD is a company limited by guarantee as defined by the Companies Act 2006 and it is govemed by ils artlGles of association. ATD is a registered Social Landlord wilh solely charitable objectives and it is a regislered charity. Results The consolidated inGome and expendilure account for the year is set out on page 15. Trustees The Trustees, who are also the direelors for the purpose of Company Law, and who served during the year up to the dale of signature of the financial slalemenls were.. A L Hill (Chair) F J Johnson {Resigned 31 May 2024) D Smith (Deputy Chair) M J Carter l R Hepworth I Price N Whilham (Resigned 31 August 2024) R G Rawling T P Carroll P Myers (Resigned 30 May 2025) P G Myers (Resigned 30 May 2025) J Connelly A Massingham (Appoiniled 31 May 2024 and resigned 18 November 2024) A Hunt {Appoinled 31 May 20241 Dame J L Daniel (Appointed 27 September 2024 and resigned 30 Juty 2025) A Lockhart-mirams {Appointed 25 July 2025) ATD has Insurance to indemnify the Board of Trustees against any liability when actlng on its behalf. Audltors Azets Audil Services (formerfy known as Naylor Wntersgill) were appointed auditor to the company in accordance with section 485 of the Companies Act 2006. a resolution proposing that they be re-appoinled will be put at a General Meeting. Objectives of the Society ATD'S objectives are.. To offer a safe and happy environment f0rAbbe￿iekl residents and other users of the facilities. To maintain charges lo residents al a level that can be afforded by all those wanting sheltered accommodation after allowing for Housing Benefits. To make a sufficiént financial surplus to enable the housing slock to remain in good repair and lo enable investment in new schemes to be funded. The Trustees are committed to furthering ATD'S objects through Ihe provision of high quality, affordable housing and housing management support for the over 55s. In doing so. the Trustees monilor the extent of resources of ATD to ensure that the cost of running and maintaining Ihe facilities and the ability of residents lo make payments from their own resources or re￿1ve the required public funding is in balan￿ and this is central to their decision making. The Trustees continue to monitor ATD'S operations and planning io ensure conlinued adherence to The Charity Commission's public benefit guidance, including its guidance on fee-charging. The Trustees will continue to ensure seÈvicès are available and affordable for individuals whilst nol compromising on Ihe quality of the Servi￿ we provide. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Abbeyfléld Sèrvlces and a reflectlon on 2024 - 2025 The Trustees of Abbeyfield The Dales took over the Trusteeship of Sir Frances CTossley Almshouses {SFCA) on the 1 st April 2024. The retiring Trustees who had led and managed the almshouses for many years wished lo transfer the control and running of Ihem to an organisalion with a proven track record in running almshouses. The almshouses consist of 21 dwéllings in 2 suburb of Halifax, dose to the town cenlre. 2nd give Abbeyfield a greatér présence in the local Gommunily. The Senior Leadership Team have ¢ontinued lo progress and bring in further financial discipline and ¢ost control to all services. These improvements and changes continue. There has been a heavy focus in the year on reducing costs through the introduction of a purchase order management system. This will not only improve our procurement process, bul lead to beller financial management, improve operational efficiency and help prevent overspend. We began focussing on staff rotas in our front line operations lo ensure the right number of staff are on shift each day lo meet the needs of the residents. We experienced overspend on staff costs in many front line services, and the aim is lo understand why this happens and to provide proper controls. This work will cantinue into the new financial year. In August 2024, Abbeyfield Living Sociely issued noti￿ to Abbeyfield the Dales Ltd lo terminate our lease agreement and lake back the 5 managed properties from 1st April 2025. This unexpected development ne￿SsI1ated a broader restructuring of the organisalion lo ensure we continue to deltver a high-quality service to resldenls and maintain financial slability for the future. Whilsl we recognise a loss of valued colleagues who cannot truly b8 replaced, our goal with this restructure was to posilion our organisats'on for long-lerm sustsinability. The58 changes were not made lighlly and were essential to enable us lo continue supporting 811 seNices and departments effeclively, despite operating with a reduced number of support leam slaff. Some teams and individuals were required lo ad8pI and lake on slightly different Tesponsibililies within their roles. We remain commilled lo supporting our incredible tèams, ensuring we continue to deliver high-quality services lo our residents. The transfer was not jusl about losing 5 properties from ATO and the financial aspects, but also the transfer of residents we had looked after and staff we had employed for the last 9 years. The staffing numbers in note 4 shows minimal change in staff numbers from 2024. however, from the 1st April 2025 43 valued members of staff TUPE transferred to Abbeyfield Living Society. In addition, the transfer forced a roview of our head office structure and teams, and we had lo make the difficult decision to restructure. and 6 roles were made redundant. and a further valued colleague took the opportunity lo retire. The slaff whose roles were made redundant left us within the final quarter of the current financial year. and we thank them for their professionalism and wish them well for their future. The Board of Trustees continues lo look for business development opportunities so that more residents within our operating heartland can benéfit from the qualily and person centred approach Ihat Abbeyfield The Dales provides. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 The table below oullines Ihe numbers of available units and the services provided al each of the properties managed by the ATD". Independent Supported Housing Residentlal Living Houslng With Care Care Property Owned Fern House, Bingley Grove House, Ilkley The Beeches, Menslon Kirkview. Shipley Woodview, Saltaire School Street, Pudsey Elbollon, Grassinglon Abbeyfield Court, Ilkley Abbeyfield Lodge, Ilkley Pawson Collage Homes, Ilkley Charles Edward Sugden Almshouses Frank Crossley's Almshouses Harriet Street, Burnley St Stephens Street, Bumley 49 42 28 30 16 12 13 21 11 11 51 34 119 46 Our Day Care Centre Services across Fern House and Grove House facilitate 25 and 10 Serv1￿ users respectively each week. In August 2024, Abbeyfield Living Society (the freehold owner) of the Managed Properties below gave notice lo Abbeyfield the Dales Ltd lo lerminale the management agreemenl and take back the properties from 1 sl April 2025. In doing so, they brought the management agreement lo an end on the 31st March 2025. Independent Supported Housing Re8ldentlal Living Houslng With Care Care Managod Propertles Leyland's Lane, Healon Ing Royde, Halifax Abbeyfield House, Settle Abbeyfield House, Barnoldswick Woodlands, Skipton 30 12 12 31 24 61 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 Organisational and DeGision-Making Structure The ultimate accountabilily for ATD lies with the Board of Trustees. who are responsible for the oversight and stewardship of ATD in ensuring the decision making of the executive and governance is in the best interests of the residents il serves, meets the core principles of ATD and meels current legislation and best practice. The Board of Trustees is responsible for keeping adequate accounting records that are sufficient lo show 3nd explain the Company's transactions and disclose with reasonable accuracy al any lime the financial position of the company and enable them lo ensure the financial slalements comply with the Companies Acl 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 commilte8s of the board, each with lerms of reference approved by the board and they help to support Ihe board in the exercise of due diligence and detailed scrutiny. The commillees are as follows.. Finance Committee which applies suutiny to risk management, financial controls, operalional perf0mlan￿, cashflow and treasury management, the slatulory financial statements and oversees the external audit relationship. Remuneration Committee which scrulinises and approves the remuneration policy, pay differenlials, the annual pay award and reward packages for all slaff, including the remuneration package of the Chief Executive and the Senior Leadership Team. Quality Committee which oversees arrangements for all aspects of quallty governan￿ and provides board assurance concerning the provision of evidence based high quality Ca￿ and regulatory complian￿, supports the Board and Senior Leadership Team in delivering a culture of conlinuous improvement and oversees the systems and processes by which this outcome is achieved. The committee provides oversight and scrutiny of all people performance indicators. and conlinued improvements in workforce culture and stability. Business Development Commitlee which supports Ihe Board to enable ATD to realise its growth ambitions by evaluating new opportunities or projects and applying assessment criteria which ensure Ihal only initialives that are consislenl with ATD'S principles and strategic fillers, are financially robust and affordable are recommended lo and adopted by Board. Related Parties Abbeyfield the Dales is 8 member society of Abb8yfield England which sits within the overall govemance structure of the Abbeyfield World Council. ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 Value for Money Value for Money is about being effedive in how we plan. manage and operate Abbeyfield The Dales. It requires providing a high quality service to our residents to enhance Iheir lives, in line with the 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 provideis of social housing are expecled lo report their performance against in their annual report. The latter document acknowledges that the metrics will not necessarily be appropTi2le for all providers and any influenclng factors should be explained in the r￿mMentary. Metr1¢ Reinveslmenl New supply delivered Social housing unils Non-so¢ial housing units Nots 2025 ooi. 2024 O'/0 ooA 29.68'/0 1280 £37.383 30A 00 EBITDA MRI interest cover % Headline social cost per unit Operaling margin ' Social housing units overall Return on capital employed 191% £32,321 3.360 3.360 1.270 3.480 Reinveslmenl Q/0 - the investment in properties {exisling stock and new Supply) as a percentage of the value of lolal properties held. New supply delivered {soaal houslng units)% - the number of new social housing units delivered as a proportion of total social housing unils owned. Géaring O/. nel debl as a percentage of the value of properties held. EBITDA MRI inleresl cover OA _ the level of surplus generated compared lo the interest payable. Headline social houslng cost per unit - social housing costs (as defined by the regulator) divided by the total units owned andlor managed. i. Operating margin (social housing leltings only) % - operating surplusl{deficitl from soctal housing letlings divided by turnover from social housing lellings. ii. Operating margin (overall) OA _ overall operaling surplusl Flnanclng activities Proceeds from new bank loans Repayment of bank loans 59,827 1214,449) (172,195) Net cash u8ed in financing activities (154,622) (172,195) Net {decrease)Ilncrease in cash and cash equivalents {154,510) 278,683 Cash and Gash equivalents al beginning ofyear 681,947 403,264 Cash and cash equivalents at end of year 527,437 681.947 19- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 as restated Notes Cash flows from operating activltles Cash generated from operations Interest paid 23 727,596 (519,337) 1.787,900 {538,357) Net cash Inflow from operating activities 208,259 1.249,543 Investing actlvltles Purchase of tangible fixed assets Proceeds from disposal of langiblè fixed assets Interest received (216,995) 4.805 15.504 {1.015,696) 244,721 5,390 Net cash used In Investing activities {196.6861 {765,585) Flnanclng actlvlti08 Repayment of bank loans (179.901) (169,580) Net cash used In flnanctng activities (179,901) (169,580) Nèt Idecrease)lincrease in cash and cash equivalents (168,328) 314,378 Cash and cash equivalents al beginning of year 619,770 305,392 Cash and eash equlvalents at ond of year 451.442 619,770 -20- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Company Information Abbeyfied the Dales Limtted {'the companyl is a private limited ujmpany 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 Accountlng conventlon These financial statements have been prepared in accordance wilh FRS 102 °The Financial Reporting Standard applicablè in thè UK and Republic of Ireland. fFRS 102") and the requirements of the Companies Act 2006. The accounts comply with the Housing Ad 2004, the Accounting Direclion for Social Housing Providers 2022, and the Housing SORP 2018 Statement of Recommended Practi¢e for Social Housing Provtders published by the National Housing Federation. The financial statements are prepared in sterling, which is ihe functional currency of the company. Monetary amounts in these financial slalements are rounded to the nearest £. The finanaal statements have been prepared under the historical cost convenlion. The principal accounting poliaes adopted are set out below. The ¢onsolidaled group financial statements consisl of the financial statements of Ihe parent company Abbeyfied the Dales Limited together with all entities controlled by Ihe parent company (its subsidiaries) and the group's share of ils interests in joint ventures and associates. All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the rinsneial slalenients of subsidiaries lo bring the accounting policÉes used into line with those used by olher members of Ihe group. All inlra-group transactions, balances and unrealised gains on transactions between group Companies are elimlnaled on Consolidalion. Unrealised losses are also 81iminaled unless the transaction provides evidence of an impairment of the asset Iransferred. 1.2 Golng concern At the time of approving the financial statements, Ihe directors have a reasonable expectation Ihal tho company has adequate resources to continue in operalional e￿StenCe for the foreseeable fulure. Thus the direclors continue to adopt the going con￿rn basis of accounting in preparing the financial slatemenls. 1.3 Turnover Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales relaled taxes. The fair value of consideration lakes into account Irade discounts, settlement discounts and volume rebates. When cash inflows are deferred and represenl a financing arrangement. Ihe fair value of the consideration is the present value of the future receipls. The difference beiween the fair value of the consideration and the nominal amount received is recognised as interest income. Revenue from the sale of goods is recognised when the significant risks 2nd rewards of ownership of the goods have passed lo the buyer (usually on dispatch of Ihe goods), the amounl of revenue can be measured reliably, il is probable that the economic benefits associated wilh the Iransaclion will flow to the entity and the osts incurred or lo be incurred in respect of the transaction can be measured reliably. 1.4 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured al cost. net of deprecialion and any impairment losses. 21 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Depreciation is recognised so as to wrile off the cost or valualion of assels less their residual values over their useful lives on the following bases.. Building structure Roofs Mfindows and doors Kilchens and bathrooms Lifts Fixtures, fittings and equipment Computers Motor vehicles 1 ¥0 on cost 20h on cost 2°h on cost 3.330/0 on cost 6.67 % on cost 200h on tt)St 33.33°h on cost 20% on cosl 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 Fixed asset inveslments Equity investments are measured at fair value, except for those equity investments that are not publicly traded and whose fair value cannol otherwise be measured reliably, which are reco9nised al cost less impairm8nt unlil a reliable measure of fair value becomes available. In the parent company financial slalernenls, investments in subsidiaries, associates and jointly conlrolled enllties are initially measured al Cost and subsequently measured al ￿st less any accumulal6d impairment losses. A subsidiary is an enlily controlled by the group. Control is the power to govern the financial and operating policies of the entily so as to obtain benefits from ils activities. An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long- leim interest and where the Company has significant influence. The group considers that il has significant influence where it has Ihè power lo participate in th8 financial and operating decisions of the assoc5ate. Investments in associates are initially recognised at the transaction price (including transaclion costs) and are subsequently adjusted lo reflect the group'5 share of the profrt or loss, other comprehensive inwme and equity of the associate using the equity method. Any differen￿ between the cost of acquisition and Ihe shar6 of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of Ihe investment in associales. 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 construclive obligations or has made payments on behalf of the associate. In the parent company financial stalements, investmenls in associates are accounted for al cost le5S impairment. Enlilies in which Ihe group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities. -22- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 1.6 Impairment of fixed assets Al each reporting period end date, the group reviews Ihe carrying amounts of its tangible assels lo detemiine whether there is any indication that those assets have suffered an impaimient loss. If any such indication exists, the recoverable amount of the asset 15 estimated in order to determine the extenl of the impairment loss (if any) Where il is not possible to eslimale the recoverable amount of an individual assel. the company estimates the recoverable amount of the cash-generaling unil to which the asset belongs. The carrying amounl of the investments accounted for using the equily method is tested for impaimienl as a single asset. Any goodwill included in the carrying amount of the investment is nol tested separately for impairment. Recovèrable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the eslimaled future cash Itows are discounted lo their present value using a pre-tax discount rale that reflecls current market assessments of the lime value of money and the risks specific lo the asset for which the estimates of future Gash flows have nol been adjusted. If the recoverable amount of an asset {or cash-generating unil) is estimated to be less than its carrying amounl, the carrying amount of the assel lor cash-generating unil) is reduced lo ils recoverable amount. An impairment loss is recognised immediately in profil or loss. unless the relevant asset is carried al a revalued amount, in which case the impairment10ss Is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impaiment loss have ceased lo apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or c3sh- generating unil) is increased lo the revised estimate of ils recoverable amount, but so that the inGre2s8d carrying amount does not exceed the carrying amount that would have been determined had no Impairment loss been recognised for Ihe assel (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 rèversal of the impairment loss is Irealed as a revalualion increase. 1.7 Cash and cash equivalents Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks. olher short-lerm liquid inveslmenls with original maturities of three monlhs or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.8 FlnanGial instruments The group has elected to apply the provisions of Section 11 '8asic Financial Instruments, and Section 12 'Olher Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in Ihe group's balan￿ sheet when the group becomes party to the contractual provisions of the inslrurnent. Financial assets and liabilities are offset and the nel amounts presented in the financial statements when there is a legally enforceable righl to sel off the recognised amounts arKI there is an intention lo settle on a net basis or lo realise Ihe asset and séllle the liabilily simullaneously. Basic financial asse¢s Basic financial assels. which include deblors and cash and bank balancks, are initially measured al transaction price including transaction costs and are subsequently carried at amortised cost using ihe effective interest method unless the arrangement constitutes a financing Iransaction, where the transaction is measured at the present value of the future receipts discounted at a maikel rate of interest. Financial assets classified as réceivable within one year are not amortised. -23- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng poltcies (Continued) 1.8 Financlal Instruments (contlnued) Other financial assets Other financial assets, induding investmenls in equity inslrum6nts which are not subsidiaries, associales or joint ventures. are initially measured al fair value, which is nomally the transaction price. Such assets are SLJbsequ8ntly carried al fair value and the changes in fair value are recognised in profit or loss, except th21 Investments in equity instruments that are not publicly traded and whose fair values Gannol be measured re112bly are measured at cost less impairment. Impairmént of financial assets Financial assets, other than those held at fair value through profil and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events Ihal occurred after the initial recognition of the financial assel, the estimated fulure cash flows have been affected, If an asset is impaired, the impairment loss is the difference between the carying amount and the presènl value of the eslimaled cash flows discounted at the asset's original effective inleresl rate. The impairment loss is recognised in profil or loss. If there is a decrease in the impairment loss arising from an event ocLurring after Ihe impairment was recognised, the impairmenl is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been. had th8 impairment not preiriously been recognised. The impairm8nt revers21 is recognised in profil or loss. Derecognltlon of flnanclal assets Financial assets are derecognised only when the conlraclual rights lo the cash flows from the assel expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significanl risks and rewards of ownership are retained bul control of the asset has transferred lo anolher party that is able lo sell the asset in its entirety to an unrelated third party. Classlflcation of flnan¢ial liabililies Financial liabilities and equity inslrumenls are classified a￿rdIng lo the substance of the contractual arrangerrenls entered into. An equity instrument is any contract Ihal eviden￿$ a residual inlerest in the assets of the group after deducting all of its liabililies. 8asic financial liabilities Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preferenc8 shares that are clsssified as debt, are initially recognised al transaction price unless the arrangement conslilutes a financing transaction, where the debt instrument is measured at the present value of the future payments discountèd al a market rate of interest. Financial liabilities classified as payable within one year are not amoriised. Debt instruments are subsequently carried at amortised ￿St, using the effedive interest rate method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are dassified as current liabilities if paymenl is due within one year or less. If not, they are presented as non-current Itabililies. Trade creditors are recognised initially at Iransaclion pri￿ and subsequently measured at amortised cosl using Ihe effective interest method. -24- ABBEYFIELD THE DALES LIMITED {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng policies {Contlnued) 1.9 Employee benefits The costs of short-term employee benefits 8re recognised as a liability and an expense, unless Ih05e costs are required lo be recognised as part of Ihe cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in Ihe period in which the employee's services are received. Termination benefits are recognised immediately a5 an expense when the company is demonstrably committed to lemiinale the employment of an employee or to provide termination benefits. 1.10 Government grants Government granls are recognised al the fair value of the asset received or receivable when the￿ Is reasonable assuran￿ that the grant conditions will be mel and the grants will be received. Government grants relating lo 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 expecled useful life. If part of such a grant is deferred il is recognised as deferred income rather than being deducted from the asset's carrying amount. 1.11 Reserves Rovenue reserve The revenue is an accumulation of all surplus and deficits arising from the company's ordinary operations including any donations and legacies received fre6 of any reslriclions. These funds are freely available for use by the company. Designated reserves Designated reseNes relate to funds sel aside by the Twslees for specific purposes. Judgements and key sources of estimation uncertalnty In the application of the group's accounting policies, the diredors and trustees are required lo mak8 judgements, estimates and assumptions aboul the carrying amount of assels and liabilities that aro not readily apparent from other sources. The estimates and associated assumptions are based on hislorical experience and olher factors Ihat are considered to be relevant, Actual results may differ frorn these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in whith the estimate is revised where Ihe revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. -25- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Turnover and other revenue 2025 2024 Turnover analysed by class of business Social housing rentals Residential care fees Domicillary care income Day ￿ntre charges Ground rents and maintenance Other activities and sundry income Recharge of costs and setvices 5,691,000 2,337,163 1,260,411 125.126 6,406 216,991 6,700 5,146,870 2,124.233 1,225,529 110,667 7,521 171,744 12,413 9,643,797 8,798,977 2025 2024 Turnover analysed by geographl¢al market United Kingdom 9,643,797 8,798,977 2025 2024 Other revenue Interest income Dividends received Grants received 20,187 2,283 157,863 8,196 647 123,969 Employees The average monthly number of p8rsons employed by Ihe group and company durlng the year was.. Group 2025 Number Company 2025 Number 2024 Number 2024 Number Operational Governance and support 288 17 250 19 288 17 250 19 Tolal 305 269 305 269 Their aggregate remuneration comprised.. Group 2025 Company 2025 2024 2024 Wages and salaries 6.192,224 5,607.567 6.192,224 5,607,567 -26- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Employees (Continued) The employee numbers include staff who worked in the 5 properties taken back under their management transferred to Abbeyfield Livin9 Souety under TUPE arrangements on the 1st April 2025. Operating profit 2025 2024 Operating profil for the year is stated after chargingl{crediling)'. Governm8nl grants Depreciation of owned tangible fixed assets Lossl(profitl on disposal of tangible fixed assels <157,863) 461,562 34,820 (123.969) 417,313 (160,026) The loss on disposal relates lo the Iransfer of leasehold lo The Abbeyfield Society. Interest payable and similar èxpenses 2025 2024 Interest on flnancial liabilltles measured at amortlsed cost: Inlerest on bank overdrafts and loans 530,797 550,706 Interest recelvable and slmllar income 2025 2024 Interest income Interest on bank deposits 17,308 5,593 Other income from Investments Dividends received Gains on financial instrumenls measured at fair value through profrt or loss 2,283 2,881 647 2.603 Total income 22,470 8,843 Audito¢s remuneration 2025 2024 Fees payable lo the companls audilor and associates.. For audlt servlces Audit of the financial statements of Ihe group and company Audil of the financial statements of the company's subsidiaries 21,000 20,400 15,000 8,880 36,ODO 29.280 -27- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Taxation The aclual tharge for the year can be reconciled lo the expecied (credit)Icharge for the year based on the profit or loss and the standard rate of tax as follows-. 2025 2024 {Loss>lprofit before laxalion (183,859) 369,054 Expected tax {credilllcharge based on the standard rale of c￿rpOration lax in the UK of 25.OOOA {2024: 19.00°A) Unutilised tax losses carried foFward Tax effect of income nol taxable in delemiining taxable profit {45,965) 2,594 43,371 70,120 1,639 {71,759) Taxation charge -28- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 FSxed asset investments Group 2025 Company 202S 2024 2024 Notes Investments irt subsidiaries Unlisted investments 11 80,629 53.715 80,629 53.715 Movements in fixed asset investments Group Investments Cost or valuation Al 1 April 2024 Additions Valuation changes 53,715 23,873 3,041 At 31 March 2025 80,629 Carrying amount At 31 March 2025 80,629 At 31 March 2024 53,715 Movements In flxed asset inveslmènts Company Shares In subsidlaries Cost or valuation At 1 April 2024 and 31 M8rch 2025 Carrying amount At 31 March 2025 Al 31 March 2024 11 Subsidiaries Details of the company's subsidiaries at 31 March 2025 are as follows: N8mg of undertaklng Raglstor8d offlcg Class of shar&s held aA Held Direct Abbèyfield Court Llmited Abbeyfield Lodge {Ilkleyl Llmlled Pawson Cottages Homes Chade8 Edward S(Jgden'$ Amshwses Frank Cr05sleVs Almshouses EnglarKI England England England England Or¥llnary Ordinary T￿￿tee Trustee Trustee 11)0.00 100.00 loo.00 100.00 100.00 -29- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 12 Tangible fixed assets Group Buildlng structura Roofs Llfts Fixtures. flttln9s and •qulpm&nt Motor vehicles Total Cost At 1 April 2024 Additions Disposals 26.793,428 1.608,215 72,698 5,130 (140,3(￿} (12.238) 496.234 1,385,365 2.059 166,285 (44,465) 12,335 30,295,577 246,172 1197,0091 At 31 March 2025 26,725,820 1.601,107 498.293 1,507,185 12,335 30,344,740 Depreclation and Impalrment Al 1 April 2024 Depreciation charged in the year Eliminatèd in respect of disposals 2,852,611 222,549 220.684 961,834 7,401 4,265,079 289,842 31.752 37.872 99.629 2,467 461,562 (121,378) (3.463) (32,543) (157.384) At 31 March 2025 3,021,075 250,838 258,556 1,028,920 9,868 4,569,257 Carrying amount Al 31 March 2025 23,704,745 1,350,269 239.737 478,265 2.487 25,775,483 At 31 March 2024 23,940,817 1,385,666 275,550 423,531 4,934 26,030.498 -30- ABBEYFIELD THE DALES LIMITED {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 12 Tangible fixed assets (Continued) Company Bullding 8tru¢ture Roots Llfts Fixtures, flttlngs and equlpment Motor vehlcles Total Cost At 1 April 2024 Additions Disposals 25.413,565 1,608.215 72,698 5,130 {140,306) (12,238) 496.234 1,217,100 2,059 137.108 (44,465) 12,335 28,747,449 216,995 (197,009) At 31 March 2025 25,345,957 1,601,107 498.293 1,309,743 12,335 28,767,435 Depreciation and impairment At 1 April 2024 Depreciation Charged in the year Eliminated in respeGt of disposals 2,427,455 222.549 220,684 930.739 7,401 3,808,828 268.444 31,752 37.872 84,405 2,467 424,940 (121,378) (3,463) (32,543) (157.3841 At 31 March 2025 2.574,521 250,838 258,556 982,601 9,868 4,078,384 Carrying amount Al 31 March 2025 22,771,436 1,350,269 239,737 327,142 2,467 24,691,051 Al 31 March 2024 22,986.110 1,385,666 275,550 286,361 4,934 24,938,621 13 Flnancial Instruments Group 2025 Company 2025 2024 2024 Carrying amount of financial assets Debt instruments measured at amortised cost Instrumenls measured at fair value through pmfit or loss 62,677 251,859 64,124 258,132 80,629 53,715 Carrying amount of financial liablllties Measured at amortised cosl 8,284,622 8,416,915 8,099,207 8,288,113 31 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 14 Debtors Group 2025 Company 202S 2024 2024 Amounts falling due within one year. Trade debtors Amounts owed by connected company Other deblors Prepayments and accrued income 21,671 40.753 104 273,192 248,259 19,452 245,216 3.600 198.578 42,672 260,538 12,916 188,894 335,720 450,437 322,662 447,026 15 Credltors: amounts falling due within onè year Group 2025 Company 2025 2024 2024 Notes Bank loans Trad8 creditors Amounts owed lo Gonn8cl8d company Other laxalion and social security Government granls Olher creditors Accruals and deferred income 17 210,851 491,970 107,011 454,785 53,108 76.061 126,385 48,097 142,641 198.255 473,395 19,083 89,375 147,494 44,701 160,161 104,396 447,043 78,815 76,061 116,130 48,097 132,390 89.375 157,749 46,591 182,399 18 1,178,935 1,008.088 1,132,464 1,002,932 16 Credltoys: amounts falllng due after more than one year Group 2025 Company 2025 2024 2024 Notes Bank loans and overdrafts Government grants 17 18 7,352,811 7.436,868 7,611.273 7.628.288 7,203,612 7,267,535 7,477,372 7,448,700 14,789,679 15.239.581 14,471.147 14,926,072 17 Loans and overdrafts Group 2025 Company 2025 2024 2024 Bank loans 7,563,662 7,718.284 7.401,867 7.581,768 Payable within one year Payable after one year 210.851 7,352,811 107,011 7,611.273 198,255 7.203,612 104,396 7,477,372 -32- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 17 Loans and overdrafts (Continued) The Abbeyfield The Dales group continues lo benefil from and seryice loans for Ihe purchase of a property (Abbeyfield The Dales) and for the refurbishm6nt of property (&r Franc4s Crossley Almshouses and Pawson Collage Homes). Abbeyfield The Dales drew down 2 loan facilities during the year lo March 2020, and both loans were over 25 years wilh an interest rate of 2.20A above base iale. As inlerest rates accelerated during the year lo March 2024, Abbeyfield The Dales entered into fixed rate agreements for 5 yoars for £4m of the outstanding loan balance to give greater certainty of interest payments and to protect the organisalion. This was carried out in 2 parts, with interest on the initial fixed agreement sel al 6.68°h (£2m}, and the 2￿ agreement 6.77014 (£2ml- the remaining borrowed amount remains on a variable rate of 2.2% above base rate. Pawson Coltage Homes, borrowed funds for the complete refvrbishmenl of the property in 2017118 for a 25 year period. It is the focus of the Corporate Trustee to make capttal repayments when fvnds allow to reduce interest charges, and 2 capital repaymenls have been made to-date. Sir Francis Crossley Almshouses, have a number of shorter term loans., Ihe first is a loan from the Almshouses Association to renovate and upgrade the external structure of tho grade 2 lisled building. There 8re also short term loans from Calderdale Council lo parlially fund the full refurf)ishment of the flats as they become vacant. The loans from these 2 sources are either low inleresl bearing or do nol charg8 interest. 18 Government grants Group 2025 Company 2025 2024 2024 Arising from government grants 7,594,617 7,754,673 7,415,029 7,564,830 Oeferred income is included in the finanual slalements as follows.. Current liabililies Non-CLfrrent liabilities 157,749 7,436,868 126,385 7,628,288 147,494 7,267,535 116,130 7,448,700 7.594.617 7,754,673 7,415,029 7,564,830 19 Discontinued operations In August 2024, Abbeyfield Living Soaety (the freehold owner) of the five managed properties gave notice lo Abbeyfield the Dales Ltd to temiinate the management agreement and take back the propertles from 1s1 April 2025. In doing so, they brought the managemenl agreement lo an end on Ihe 31st March 2025. The loss of these five properties triggered a restruclure of the supporl functions and overheads of Abbeyfield The Dales. This change has been necessary to ensure the overhead cost remains appropriate and affordable for the continuing operations in the business. 33- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Prior period adjustmènt Adjustments to equlty . group 1 April 2023 31 March 2024 Adjustments to prior year Removal of lease creditor Inclusion of profit share with TAS Depreciation of TAS assets reversed Separation of grant from assets 125,000 (162,059) 8,896 (10,364) Total adjuslmenls {38,527) Analys16 of the effect upon equity Profil and loss reserves {38,527) Adjustments to profit for the prevlous flnanclal period 2024 Adjustments to Pfior year Removal af lease creditor Inclusion of profit share with TAS Depreciation of TAS assets reversed Separation of grant from assets 125,000 (162,059) 8,896 (259) Total adjuslmenls (28,422) Adjustments to equity . company 1 April 2023 31 March 2024 Adjustments to prlor year Removal of lease provision Inclusion of profit share with TAS Depreciation on TAS assets reversed 125,000 (162,059) 8,898 Total adjustments (28,163) Analysis of the effect upon equity Profil and loss reserves (28,163) ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Prior perlod adjustment {Continuedl Adjuslments to profit for the previous financlal period 2024 Ad]ustments to prior year Removal of lease provision Inclusion of profit share with TAS Depreciation on TAS assets reversed 125,000 1162,059) 8,896 Total adjuslmenls {28,1631 -35- ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Events after the reporting date On the 13th August 2024. the Abbeyfield Living Society (formerly The Abbeyfield Sociely) gave notice they are taking back the Tunning of the services in the 5 properties they own, and that Abbeyfield the Dales managed since 2016. The transfer took effect on 181 April 2025. and all operations. staff and residents living and working in those properties transferred on that dale. Abbeyfield The Dales made every effort to ensure the transition of the services was as smooth a possible for resident and staff, and by enlarge this was achieved. Post the year end, most loose ends have been resolved and concluded, and there remains the final selllement of the management agreement lo conclude belween the 2 organisations. Alongside Ihis Iransilion it was necessary lo reslruclure the head office I support fut)ction of Abbeyfield The Dales lo ensure the long term wability of the organisation., Ihis was achieved successfully. There has been a period of adjuslmenl where indimduals have had to adjust Iheir roles, or lake on additional duties, alongside changes to reporting lines; this has also been achieved successfully. Aljbeyfield The Dales seeks lo grow and expand ils presence in ils heartland, and took on the management of a small local almshouse. We are currently working with the Trustees of Ihal almshouse lo improve Ihe flnan¢ial performance and operational managemenl of their organisalion 22 Cash generated from group operations 2025 2024 (Lossllprofit for the year after lax (183,859) 369,054 Adjustments for.. Finance costs Invostment income Lossl(gain) on disposal of tsngible fixed assets Depreciation and impairment of tangible fixed assets 530,797 (22,470) 34,820 461,562 550,706 18.843) (160,026) 417,313 Movements In working capital: Decreasel{increase) in debtors Increasel(decrease) in creditors (Decrease)lincrease in deferred incorne 80,283 35,643 (160,056) {121.597) (12,325) 833,052 Cash generated from operatlons 776.720 1,867,334 ABBEYFIELD THE DALES LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Cash gonerated from operations - company 2025 2024 (Loss)Ipmfit for Ihe year after tsx {214,869) 382,100 Adlustments for. Finance costs Investmont income Lossl{gain) on disposal of tangible fixed assels Depreciation and impaimienl of tangible fixed assets 519,337 {15,504) 34,820 424,940 538,357 {5,390) {160,026) 389,065 Movements in worklng capital.. Decreasel(increase) in debtors Increase in creditors (Decrease)Iincrease in deferred income 124,364 4,309 <149.801) {128,440) 4,805 765,429 Cash generated from operalion8 727,596 1,787,900 Difference Per cash flow statement page 727,596 1,787,902 24 Analysis of changes In net debt- group 1 April 2024 Cash flows31 March 2025 Cash al bank and in hand Borrowings exduding overdrafts 681,947 (7,718,284) (154,510) 154,622 527,437 {7,563,662) {7.036,337) 112 (7.036,225) 25 Analysis of changes in net debt- company 1 Aprll 2024 Cash flows31 March 2025 Cash at bank and in hand Borrowings excluding overdrafts 619,770 (7.581,768) (168,328> 179,901 451,442 {7,401,8671 <6,961,998) 11,573 {6,950,425) -37-