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← Mercers' Company Housing Association

2025-03-31-accounts

Mercers’ Company Housing Association

Trustees’ Annual Report & Financial Statements 2025

Charity Commission Number 1172263

Company Number 10255806

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Mercers’ Company Housing Association

CONTENTS

Trustees’ Annual Report for theyear ended 31 March 2025 4
Introduction, objects and activities for public benefit 4
Provision of Housing Overview 5
Financial Review 6
Funding Sources 6
Investments 6
Results for the year 7
Investment policy 7
Reserves Policy 7
Fundraising Policy 8
Risk Management and internal control 8
Structure, governance and management Error! Bookmark not defined.
Our volunteers 10
Related Parties 10
Future Plans 10
Statement of Trustees’ responsibilities 11
Independent Auditor’s Report 13
Statement of Financial Activities for the year ended 31 March 2025 Statement of Financial Activities for the year ended 31 March 2025
18
Statement of Financial Activities for the year ended 31 March 2024 Statement of Financial Activities for the year ended 31 March 2024
19
Balance Sheet as at 31 March 2025 20
Statement of Cash Flows for the year ended 31 March 2025 21
Notes to the financial statements 22
1 Accounting Policies 22
2 Donations and Investments 25
3 Charitable Activities 25

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4 Expenditure 26
5 Tangible Assets 27
6 Investment Properties 28
7 Quoted Investments 28
8 Debtors 29
9 Creditors: Amounts Falling Due Within One Year 29
10 Analysis of Funds 30
11 Reconciliation of Net Income / (Expenditure) To Net Cash Flow From Operating Activities 31
12 Related Parties and Connected Charities 32
Legal & Administrative Information 33

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Mercers’ Company Housing Association

Trustees’ Annual Report for the year ended 31 March 2025

The Trustees of the Charity present their annual report together with the financial statements of the Charity for the year ended 31 March 2025. These also meet the requirements for a directors’ report and financial statements for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the relevant Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Introduction, objects and activities for public benefit

Mercers’ Company Housing Association (the Charity) provides sheltered housing at Mercers’ House and Priory House, both in Islington, London.

Accommodation provided is one- and two-bedroom self-contained units with access to a communal lounge, garden, laundry, and hairdressers. Each site has a Scheme Manager.

The objects of the Charity are the provision of housing and any associated amenities for persons in necessitous circumstance upon terms appropriate to their means; and, the provision for aged persons in need of housing and any associated amenities specially designed or adapted to meet the disabilities and requirements of such persons.

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Provision of Housing Overview

The Charity is one of three charities whose housing provision is managed by the Mercers’ Company. The Charity operates two sites, as follows:

Mercers’ House, Islington, London

Priory House, Islington, London

----- Start of picture text -----
28 units 20 units
30 residents 22 residents
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The housing provision continues to be accredited by EROSH with reviews taking place each autumn. The accreditation was maintained at the 2024 review against the EROSH Independent Living Standards (previously known as the EROSH Code of Practice). Points of good practice identified included staff management, recruitment and retention, service description and standards and resident involvement. The next full EROSH accreditation of the Mercers’ Company as a housing provider will take place in late 2025.

A new Scheme Manager was appointed to Priory House during 2024 and has settled in well bringing new leadership and energy to the scheme.

Ongoing maintenance work is carried out at both sites to ensure the quality of housing units and their environs remains high. Work has been undertaken on boiler repairs and window replacements at Priory House and on the lifts at Mercers’ House.

The Housing Management team continue to keep abreast of changes of legislation relevant to the provision of housing and in particular have undertaken a formal review of the assured tenancy issued to new residents during the year. We have recently had an independent fire door professional complete a survey, carry out the checks on all doors within the scheme, and provide a report. We have recently completed the BSI 45001 audit which checks we are following the correct procedures. All relevant training in relation to safeguarding has been completed; policy and procedures are in place with regular report to the Board. There have been no reportable incidents in 2024/25.

Regular activities for residents (such as coffee mornings, wellbeing classes, darts and bingo) take place at both schemes, alongside planned events, trips or celebrations which are undertaken jointly. The Trustees regularly visit the schemes together with members of the Mercers’ Company’s Older People & Housing Committee. A Residents’ Forum meets twice a year with two residents representing each scheme. It is chaired by the Chairman of Older People & Housing Committee. Rotation of residents allows other residents the opportunity to be involved.

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Mercers’ Company Housing Association

Financial Review

Funding Sources

Income from sheltered housing rents and utilities amounted to £751,000 in 2025 (2024: £668,000). Investment income from investment properties amounted to £53,000 during the year (2024: £53,000) and investment income from the Cyclical Maintenance Fund was £28,000 (2024: £22,000). Interest of £27,000 was received on cash deposits during the year (2024: £18,000).

Investments

Investment property

As there have been no significant changes in market conditions or the condition of the properties that would indicate a material change in fair value, the trustees have concluded that a revaluation is not required in the current financial year. Revaluation losses of £370,000 were recognised last year.

Listed investments

There were no net gains or losses on stock market investments were experienced in the year (2025: £25,000). The portfolio produced a total return, after fees, of +4.2% over the year to 31 March 2025, ahead of the CPI +1% target return of +3.8%. The portfolio experienced strong headline returns from the major asset classes, particularly within the fixed income held via the Sarasin Income & Reserves Fund. Markets experienced a pullback in the first quarter of 2025, largely due to rising geopolitical tensions and the re-emergence of protectionist trade policies.

The Trustee continues to monitor the performance of the portfolios and the market.

Investment Fund 12 months to 31
March 2025		 Since inception
August 2023
Cyclical Maintenance Fund 4.2% 10.7%
PrimaryComparator: CPI + 1% 3.8% 5.1%
Secondary Comparator: Sarasin Income & Reserves
Fund		 4.2% 12.4%

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Mercers’ Company Housing Association

Results for the year

Total income for the year was £861,000 (2024: £761,000); total expenditure for the year was £665,000 (2024: £707,000) and net gains on investments were nil (2024: £345,000 net losses) resulting in net income for the year of £196,000 (2024: £291,000 net expenditure).

Investment policy

In accordance with the Scheme, the Trustees have the power to invest in such stocks, shares, and property as appropriate to meet the objectives of the Charity.

The investment policies were reviewed during the year. The policies reflect the need to generate a sufficient financial return for the charity to fulfil its objectives, with an appropriate time horizon, while managing risk and reflecting the charities’ stance on ethical investments.

The portfolio is managed on a balanced risk approach for growth.

The investment performance of the investments is compared against relevant benchmarks (see Financial Review above).

The Charity has a policy of responsible investment, positively screening to invest in companies that can demonstrate socially responsible values and sustainable growth, and negatively screening companies or sectors that are not in line with the charitable objects of the Charity. As such, the following areas are excluded from our investments:

The Trustees are satisfied that the policy and objectives are being met.

Reserves Policy

The reserves policy was reviewed by the Trustees during the year and the policy was developed further to build upon the objectives, responsibilities, risk management, liquidity, and reporting and monitoring processes for managing the reserves. The primary reason for holding the reserves for the Charity is to ensure the prudent management of the housing services provided to beneficiaries in the event of a fall in income or other adverse occurrence.

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Mercers’ Company Housing Association

The free reserves of the Charity comprise the unrestricted funds less the unavailable assets and comprise the following:

2025 2024
£000s £000s
Total unrestricted funds 3,605 3,461
Less unavailable assets 2,913 2,967
Free reserves 692 494
Reserves:
Six months operating costs of sheltered 201 192
housing
2025/26 transfer to the Cyclical Maintenance 215 215
Fund
Total allocated reserves 416 407
Excess free reserves 276 87

The Trustees are planning the utilisation of the free reserves in coming years to underpin the programme of cyclical repairs at the two schemes and support the provision of housing for the elderly.

The Trustees review the level of reserves annually.

Fundraising Policy

The Charity does not participate in any fundraising.

Risk Management and internal control

The Board of Trustees acknowledges its responsibility for the management of risks faced by the Charity. The Charity’s Risk Register is reviewed at each meeting by the Trustees and more frequently by the Mercers Company’s housing management team.

The Trustees in considering the governance, management, operational, financial and environmental risks, are satisfied, at this stage, that there is no material exposure and that there are appropriate procedures in place to mitigate such risks.

The Trustees have agreed clear lines of delegation and authority and the Trustees, the Mercers’ Company’s Older People & Housing Committee and housing management team are involved in the recognition of risk in the Charity’s housing operations.

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Mercers’ Company Housing Association

The principal risk faced by the Charity is:

Risk Mitigation Incident causing personal injury or death to Health & Safety Policy. Safeguarding policy. resident, contractor, employee or visitor at a Internal Audit. Annual EROSH accreditation. Housing Scheme Annual BSI Audit. Out of hours Warden Call service. Staff Training. Management Reporting to Older People & Housing Committee and trustees. Employer liability insurance – limit of indemnity £10m. Public and product liability insurance – limit of indemnity £2m ~~—_~~

Structure, governance and management

As set out in the Articles of Association, the Member of the Charity, the Mercers’ Company, appoints the Trustees. Each year one third, or the number nearest to one third of the Trustees, being those who have been longest in office since their last appointment or reappointment, must retire from office. Retiring Trustees may be reappointed. At the meeting in September 2024, Mr J R Graham retired by rotation and was reappointed for a further term.

The Board of Trustees is responsible for the business of the Charity and meets regularly. The

Board has delegated certain matters to a number of the sole Member’s specialist committees:

Function Delegated Body Oversight of housing operations/ operational Older People & Housing Committee property Property Committee Overview of risk management process and Audit Committee external audit process ~~——~~ Oversight of cash and investments Investment Committee The Board of Trustees is supported by the staff of the Mercers’ Company, who are appropriately trained and qualified. These administrative services are provided under a service agreement. The following members of the Mercers’ Company’s senior management are involved in the provision of services:

Mr RM Abernethy (Clerk to the Mercers’ Company)

Ms SMA Hedley-Dent (Deputy Clerk to The Mercers’ Company)

Mr JRA Christie (Finance Director)

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Mercers’ Company Housing Association

The Board intends to apply the principles of the Charity Governance Code so far as is possible. The Board last undertook a self-assessment against the Charity Governance Code in 2023/24 and has identified areas in which it can further improve its practice.

During the year, the trustees reviewed the provision of services to the Charity by the Mercers’ Company and together with the other charities who receive services from the Company, commissioned an external benchmarking report to establish value for money.

Our volunteers

The Charity relies on members of The Mercers' Company volunteering their time to sit on committees, and attend events involving beneficiaries. In keeping with recommended practice, an estimate of the numbers of hours that Committee members give to the Charity free of charge during the year has been undertaken resulting in approximately 27 hours of voluntary time.

Related Parties

Details of related parties and connected charities are given in note 13 of the financial statements. The Charity works closely with The Mercers’ Company as well as with The Charity of Sir Richard Whittington and the Earl of Northampton’s Charity, both of which also provide housing and associated services.

Future Plans

The Charity intends to continue to provide good quality housing at the two housing schemes. Over the next few years, there is a particular focus on cyclical maintenance – further lift work and window replacement at Mercer House.

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Statement of Trustees’ responsibilities

The Trustees (who are also directors of Mercers’ Company Housing Association for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the Charity and of the income and expenditure of the Charity for that year. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity’s and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

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Mercers’ Company Housing Association

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of the Charity’s financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Mr John Roderick Graham

Mr Adam Sedgwick

Chairman Trustee

Trustee

13 October 2025

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Mercers’ Company Housing Association

Independent Auditor’s Report

TO THE MEMBER OF MERCERS’ COMPANY HOUSING ASSOCIATION

Opinion

We have audited the financial statements of The Mercers’ Company Housing Association (the ‘Charitable Company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements which include the principal accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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Mercers’ Company Housing Association

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities, the Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

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We assessed the susceptibility of the Charitable Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur. Audit procedures performed by the engagement team included:

To address the risk of fraud through management bias and override of controls, we:

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

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

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

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Use of our report

This report is made solely to the Charitable Company’s member, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company's member those matters we are required to state to it in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company's member as a body, for our audit work, for this report, or for the opinions we have formed.

Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

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Statement of Financial Activities for the year ended 31 March 2025

(Incorporating an Income and Expenditure Account)

Year ended
31 March
Year ended 31 March 2025 Year ended 31 March 2025 Year ended 31 March 2025 2024
Unrestricted Unrestricted
Designated
Funds Funds
Funds		 Total Funds Total Funds
Total Funds
Note £’000 £’000
£’000		 £’000 £’000
£’000
Income
Donations 2 2 2
-		 2 2
-
Investments 2 80 80
28		 108 108
93
Charitable activities:
Rents 3 751 751
-		 751 751
668
Total income 833 833
28		 861 861
761
Expenditure
Raising funds 4 (2) (2)
4		 2 2
(11)
Charitable activities 3, 4 (504) (504)
(163)		 (667) (667)
(696)
Total expenditure (506) (506)
(159)		 (665) (665)
(707)
(Losses) on investments 6, 7 - -
-		 - -
(345)
Net income/(expenditure) 327 327
(131)		 196 196
(291)
Transfers between funds 10 (183) (183)
183		 - -
-
Net movement in funds 144 144
52		 196 196
(291)
Fund balances brought
forward at 1 April		 3,461 3,461
679		 4,140 4,140
4,431
Fund balances carried
forward at 31 March 3,605 3,605
731		 4,336 4,336
4,140

All of the Charity's activities are derived from continuing operations. There are no recognised gains or losses other than those disclosed above.

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Mercers’ Company Housing Association

Statement of Financial Activities for the year ended 31 March 2024

(Incorporating an Income and Expenditure Account)

Year ended 31 March 2024 Year ended 31 March 2024 Year ended 31 March 2024
Unrestricted Designated
Funds Funds Total Funds
Note £’000 £’000 £’000
Income
Investments 2 71 22 93
Charitable activities:
Rents 3 668 - 668
Total income 739 22 761
Expenditure
Raising funds 4 (10) (1) (11)
Charitable activities 3, 4 (422) (274) (696)
Total expenditure (432) (275) (707)
(Losses)/gains on investments 6, 7 (370) 25 (345)
Net expenditure (63) (228) (291)
Transfers between funds 10 (194) 194 -
Net movement in funds (257) (34) (291)
Fund balances brought forward at
1 April		 Fund balances brought forward at 3,718 713 4,431
Fund balances carried forward at
31 March 3,461 679 4,140

All of the Charity's activities are derived from continuing operations. There are no recognised gains or losses.

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Balance Sheet as at 31 March 2025

31 March 2025 31 March 2025 31 March 2025 31 March 2024 31 March 2024
Note £’000 £’000 £’000 £’000
Fixed Assets
Tangible assets 5 1,633 1,687
Investment property 6 1,280 1,280 1,280
Quoted Investments 7 667 742
3,580 3,709
Current assets
Debtors 8 53 53 31
Cash at bank and in hand 811 459
Total current assets 864 490
Creditors: amounts falling due within one 9 (108) (59)
year
Net current assets 756 431
Total net assets 4,336 4,140
The funds of the charity
Unrestricted funds:
General funds 10 692 494
Tangible fixed asset funds 10 2,913 2,967
Designated funds 10 731 679
Total Charity funds 10 4,336 4,140

The attached notes on pages 22 to 33 form an integral part of these financial statements. The financial statements on pages 18 to 33 were approved by the Trustees on 13 October 2025 and are signed on their behalf by:

Mr John Roderick Graham Chairman The Company Number is 10255806. 13 October 2025

_____ Mr Adam Sedgwick Trustee

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Statement of Cash Flows for the year ended 31 March 2025

2025 2024
Note £’000 £’000
Cash flows from operating activities:
Net cash provided by operating activities 11 220 18
Cash flows from investing activities:
Dividends received 28 22
Interest received 29 18
Purchase of investments (38) (765)
Decrease in cash held by investment managers 7 229
Proceeds from the sale of investments 106 515
Net cash provided by investing activities 132 19
Change in cash and cash equivalents in the financial year 352 37
Cash and cash equivalents at the beginning of the financial Cash and cash equivalents at the beginning of the financial 459 422
year
Cash and cash equivalents at the end of the financial year 11 811 459

No separate statement of changes in net debt has been prepared as there is no difference between the movement in cash and cash equivalents and movements in net cash (debt).

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Notes to the financial statements

1 Accounting Policies

ACCOUNTING BASIS

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these financial statements.

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

The Charity constitutes a public benefit entity as defined by FRS 102.

GOING CONCERN

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern and the financial statements of the Charity have been prepared on that basis as they do not intend to liquidate the Charity or to cease its operations and have concluded that the charity’s financial position means that this is realistic.

In making this assessment, the Trustees have considered the Charity’s financial position, the value of investment assets held, future income and investment return levels, expenditure requirements and the liquidity of the charity, considering the cost-of-living crisis, inflationary pressures and changing economic environment, and the risks faced by the Charity.

The Trustees are satisfied that the Charity could absorb significant changes in investment value with no impact on its ability to continue as a going concern.

They have also concluded that there are no material uncertainties that could cast significant doubt over the ability to continue as a going concern. A rolling annual review of the Charity’s detailed forecast financial position over a 5-year period is carried out, alongside 15-year modelling of funds held to confirm that sufficient funds will be generated to finance required expenditure on the sheltered housing.

For these reasons, the Trustees continue to adopt a going concern basis for the preparation of the financial statements.

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CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances prevailing. The main estimates and judgements relate to the investment property valuations and the estimated useful lives of tangible fixed assets.

INCOME

All income, comprising rents and service charges from the housing operations, interest on bank accounts, dividends from investments, and rents from investment properties, is stated gross and is included on an accruals basis when the Charity has entitlement, receipt is probable and the amount can be measured with sufficient reliability. Income relating to a subsequent financial year is carried forward as a creditor in the balance sheet and shown as deferred income.

EXPENDITURE

All expenditure is included on an accruals basis and is recognised as soon as there is a legal or constructive obligation committing the Charity to it, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is included with the underlying expense and charged to the Statement of Financial Activities (SOFA) as incurred. Overhead costs are allocated from The Mercers’ Company under a service level agreement. This allocation has been estimated by The Mercers’ Company based on the proportion of time spent on the Charity by staff.

TAXATION

The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Accordingly, no provision is made for current or deferred taxation.

INVESTMENT GAINS AND LOSSES

Unrealised gains and losses for the period reflect the movement in market values. Realised gains and losses represent the difference between proceeds on disposal and the market value brought forward (or cost if acquired in the year). Unrealised and realised investment gains or losses are shown net on the SOFA.

INVESTMENTS

Investments are stated at their fair value at the balance sheet date. Investment properties are re-valued externally every five years and internally by the Trustee in intervening years. The Trustees are of the opinion that this valuation is appropriate for the purpose of these financial statements. Cash held by investment managers is recognised as part of investments.

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TANGIBLE FIXED ASSETS

All assets costing more than £10,000 are capitalised at cost and depreciated over their useful economic lives. Subsequent expenditure on a capitalised asset will also be capitalised where it is regarded that there has been an enhancement to the asset or a depreciated asset has been replaced.

DEPRECIATION

The Trustees consider the useful life of the property to be not less than 50 years. Accordingly, a depreciation rate of 2% has been applied to the historical cost (after eliminating the original cost of the land) over the expected economic useful life of the property. Land is not depreciated. The useful economic life and any impairment of the property is reviewed annually. Where there is impairment, the property is written down to the recoverable amount.

FUNDS

The Charity has the following types of unrestricted funds:

SHARE CAPITAL

The Charitable Company is limited by guarantee and has no share capital. The member of the Charitable Company, The Mercers’ Company, guarantees to undertake to contribute one pound in the event of the winding up of the Charitable Company.

FINANCIAL INSTRUMENTS

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, except for investments which are measured at fair value.

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2 Donations and Investments

£2,150 was donated to the charity during the year.

Investment income was generated as follows:

Investment income was generated as follows:
2025 2024
£’000 £’000
Rents from investment properties 53 53
Dividend income from Cyclical Maintenance Fund 28 22
Interest 27 18
108 93

3 Charitable Activities

Income and expenditure is analysed as follows:

2025 2025 2024 2024
Mercers’
House		 Priory House Head Office Total Mercers’
House		 Priory House Head Office Total
£’000 £’000
£’000		 £’000 £’000 £’000 £’000 £’000 £’000
Rents & service charge income 392 392
359		 - 751 751
359		 309 - -
668
Property operating costs (146) (146)
(190)		 - (336) (336)
(125)		 (127) - -
(252)
Major repairs & projects (69) (69)
(94)		 - (163) (163)
(193)		 (81) - -
(274)
Depreciation - -
(54)		 - (54) (54)
-		 (53) - -
(54)
Bad debt 4 4
5		 - 9 9
(17)		 - - -
(17)
Administration & governance (61) (61)
(44)		 (12) (117) (117)
(52)		 (37) (6) (6)
(95)
Auditor’s remuneration - -
-		 (6) (6) - - (5) (5)
Total expenditure (272) (377) (18) (667) (387) (298) (11) (696)
Net income/(expenditure) 120 120
(18)		 (18) 84 84
(28)		 11 (11) (28)

Major repairs and projects are funded by the Cyclical Maintenance Fund.

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Mercers’ Company Housing Association

4 Expenditure

Analysis of total expenditure:
Governance Other
& support direct Total Total
Further Further
costs		 costs 2025 2024
notes notes
£’000		 £’000 £’000 £’000
Investment management rebate/(fees) - 2 2 2
(11)
Charitable activities
Housing for the elderly 3 3
(18)		 (649) (667) (696)
(18) (647) (665) (707)
Governance Governance
Other
& support direct Total
Further costs costs 2024
notes £’000 £’000 £’000
Investment management fees - (11) (11)
Charitable activities
Housing for the elderly 3 (11) (685) (696)
(11) (696) (707)

The Charity has no employees (2024: nil). The Mercers’ Company, by way of a service agreement, provides housing management services to the Charity. The Trustees have not received any emoluments or reimbursements during the year for acting as Trustees (2024: nil). Governance costs comprise audit fees of £5,150 (excluding irrecoverable VAT) (2024: £4,975).

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Mercers’ Company Housing Association

5 Tangible Assets

The operating properties are shown at their historical cost less depreciation.

Land &
Buildings
£’000
Cost
Balance at 1 April 2024 3,036
Depreciation
Balance brought forward at 1 April 2024 (1,349)
Charge for theyear (54)
Balance carried forward 31 March 2025 (1,403)
Net book value at 31 March 2025 1,633
Net book value at 31 March 2024 1,687

Land and buildings comprise the freehold historical cost of Priory House. A further property, Mercers' House is a leasehold interest at nil historical cost and at a peppercorn rent. Mercers’ House is leased from The Mercers’ Charitable Foundation, a connected charity.

The net book values shown do not represent current open market valuations.

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Mercers’ Company Housing Association

6 Investment Properties

The Charity’s investment properties are as follows:

1 April 2024 Revaluation losses 31 March 2025
Freehold property £’000 £’000 £’000
Market value 1,280 - 1,280
Historical cost 179 179

A full external valuation was done on 31 March 2024 by Cluttons LLP, which is an independent firm of qualified surveyors. The revaluation loss in the year ended 31 March 2024 was £370,000. As there have been no significant changes in market conditions or the condition of the properties that would indicate a material change in fair value, the Trustees have concluded that a revaluation is not required in the current financial year .

7 Quoted Investments

The changes during the year are as follows:

1 April Movement Revaluation 31 March
2024 Purchases Sales in cash gains 2025
£’000 £’000 £’000 £’000 £’000 £’000
Cyclical
Maintenance Fund		 742 38 (106) (7) - -
667
Historical cost 709 638

The investment fund comprised unit holdings of the Sarasin Income and Reserves Fund that has the following asset allocation:

the following asset allocation:
2025
£’000 %
Equities 130 19.5
Fixed Income 376 56.3
Alternatives 74 11.2
Cash 87 13.0
Total 667 100.0

There were no investment gains or losses during the year on quoted investments (2024: £25,000).

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Mercers’ Company Housing Association

8 Debtors

Debtors are made up as follows:

Debtors are made up as follows:
2025 2024
£’000 £’000
Rent receivable 34 15
Prepayments and accrued income 19 16
53 31

9 Creditors: Amounts Falling Due Within One Year

Creditors are amounts falling due within one year and are made up as follows:

2025 2024
£’000 £’000
Rent received in advance 26 42
Accruals 20 5
Amount due to The Mercers’ Company 42 -
Other creditors 20 12
108 59

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10 Analysis of Funds

The designated funds comprise the Cyclical Maintenance Reserve which provides for repairs of the properties. £183,000 (2024: £194,000) was transferred into the fund from Unrestricted Funds during the year to provide for future repairs and maintenance of the sheltered housing properties. £163,000 (2024: £274,000) was used during the year for cyclical and extraordinary repairs at the properties.

The fixed assets funds comprise the Charity’s operating properties and investment properties. These funds are not readily realisable to meet charitable expenditure.

The net assets by funds are as follows:

The net assets by funds are as follows: The net assets by funds are as follows:
Fixed 2025
General Assets Designated Total
Funds Funds Fund Funds
£000 £’000 £’000 £’000
Tangible assets - 1,633 - 1,633
Investment properties - 1,280 - 1,280
Quoted Investments - - 667 667
Net current assets 692 - 64 756
Total Funds 692 2,913 731 4,336
Fixed 2024
General Assets Designated Total
Funds Funds Fund Funds
£000 £’000 £’000 £’000
Tangible assets - 1,687 - 1,687
Investment properties - 1,280 - 1,280
Quoted Investments - - 742 742
Net current assets/(liabilities) 494 - (63) 431
Total Funds 494 2,967 679 4,140

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11 Reconciliation of Net Income / (Expenditure) To Net Cash Flow From Operating Activities

2025 2024
£’000 £’000
Net income / (expenditure) for the reporting year (as per statement
of activities)		 196 196
(291)
Adjustments for:
Losses on investments - 345
Depreciation 54 53
Dividends receivable (28) (22)
Interest receivable (27) (18)
(Increase)/decrease in debtors (24) 82
Increase/(decrease) in creditors 49 (131)
Net cash provided by operating activities 220 18
ANALYSIS OF CASH AND CASH EQUIVALENTS
2025 2024
£’000 £’000
Cash at bank and in hand 811 459

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12 Related Parties and Connected Charities

The following related parties and charities have common management and are therefore regarded as connected:

Becket House Limited (dormant) Charter 600 Charity Earl of Northampton’s Charity Longacre Estates Limited (dormant) Longmartin Investments Limited Longmartin Properties Limited Maiden Trading Limited (dormant) Mercers’ School Memorial Trust (incorporating The Merrett Bequest) St Paul's Schools Foundation The Charity of Sir Richard Whittington The Mercers' Charitable Foundation The Mercers' Company

The principal address of the above entities is:

The Mercers’ Company 6 Frederick’s Place London EC2R 8AB

The Mercers’ Company allocated costs amounting to £155,000 (2024: £123,000) in relation to the Service Agreement and directly attributable costs. £42,000 was outstanding at the year end (2024: Nil). No emoluments or expenses were paid by the Charity to the Trustees during the year (2024: nil). Mercers’ House is leased from The Mercers’ Charitable Foundation at a peppercorn rent.

There are no other related party transactions requiring disclosure (2024: none).

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Legal & Administrative Information

LEGAL STATUS

TRUSTEES

The Mercers’ Company Housing Association (“the Charity”) was originally formed in 1983 to develop housing for the elderly primarily in Inner London. The Charity is established as a charitable company limited by guarantee and registered with the Charity Commission. The Charity is governed by its Memorandum and Articles of Association dated 28 June 2016.

Mr John Roderick Graham (Chairman) Mr Adam Sedgwick

Mr Anthony Beverley Totton

Mrs Lucy Walsh Waring (resigned 13 October 2025)

Mrs Josephine Downie (appointed 13 October 2025)

KEY STAFF OF THE MERCERS’ COMPANY

Its registered company number is 10255806 and its Charity Commission registration number is 1172263.

There is one member of the Charity, The Wardens and Commonalty of the Mystery of Mercers of the City of London (“The Mercers’ Company”). The directors of the Charity are its Trustees for the purpose of charity law.

Mr Robert Abernethy (Clerk to The Mercers’ Company)

Ms Serena Hedley-Dent (Deputy Clerk to The Mercers’ Company)

Mr James Christie (Chief Financial Officer) Miss Sarah Oliver (Housing Manager)

BANKERS

The Charity is not a registered Social Landlord.

PRINCIPAL ADDRESS 6 Frederick’s Place London EC2R 8AB

INDEPENDENT AUDITOR Buzzacott Audit LLP 130 Wood Street London EC2V 6DL

Barclays Bank PLC 1 Churchill Place London E14 5HP

INVESTMENT MANAGERS Sarasin & Partners Juxon House 100 St Paul’s Churchyard London EC4 8BU