FCA registration number 9424 (England and Wales) CARE HOUSING ASSOCIATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
CARE HOUSING ASSOCIATION CONTENTS Page Associalion information Strategic report Board report Statement of board's responsibilities Independent audilols report 9-12 Statement of income and relained eamings 13 Balance sheet 14 Statement of cash flows 15 Noles to the financial statements 16-25 Detailed income and expenditure account 26-28
CARE HOUSING ASSOCIATION ASSOCIATION INFORMATION Chaimian Mr R Parr Board Mr R Parr- Chair Mrs N Khan MrA Richards Mrs D Holmes Mrs V Cooper Ms D Kelly (Appointed 13 February 20251 (Appointed 13 February 20251 FCA number 9424 Regulator of Social Housing 4672 registration number Registered office Riverside House Kings Reach Business Park Yew Street Stockport Cheshire SK4 2HD Auditor Xeinadin Audit Limited Riverside House Kings Reach Business Park Yew Street Stockport Cheshire United Kingdom SK4 2HD Business address Suite 29 Hardmans Business Centre New Hall Hey Road Rawtenslall Lancashire UK BB4 6HH
CARE HOUSING ASSOCIATION STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025 The board present Ihe strategic report for the year ended 31 March 2025. Fair review of the business In the year lo 31 sl March 2025 Care Housing Association can report upon a profitable year wrth relatively healthy growth. This year Care Housing Association acquired two additional 3 person properties in Hull which has been funded via financing from Unity Trust, and leased a further five buildingslsites, to be ¢)ccupied by 28 tenants. Of the 34 new tenancies, 14 are single-person accommodation across three sites, with the remaining 20 in 7 shared houses across 3 sites. At 31st March 2025 there were 469 units in Care Housing Association, of which 66 were owned. The below ratios (comparatives have been restated) are monitored on a quarterly basis to ensure key areas within the company are maintained at the required level deemed appropriale by the board Gross surplus Gross surplus stands al 34.04 /) which is a decrease from 37.15 % in 2024. Purchased properties do generate a higher margin compared lo leased properties, however this percentage is consistenl with historical years prior lo 2024. Gearing ratio The gearing ratio was 40.86/0 up from 34.27/0 in 2024. This is within the acceptable range of Care Housing Association's level of gearing. New debt was taken on in the year for the purchase of Roxburgh Gardens. This ratio is calculated using capital employed. Return on capital employed Return on capital employed is 6.44 % which is a decrease from 7.42°k in 2024. The ratio has decreased due to the capital employed increasing with the new debt. Current ratio The current ratio is 1.98 which has increased from 1.58 in 2024. liquidity is positive in the company even with significant investment in a wide range of areas. Structure, govemance and management On 5th November 2024 Care Housing Association converted and became a Charitable Community Benefit Society, registered with the Financial Conduct Authority as a Registered Society under the coperatIve and Community Benefit Societies Act 2014. and with the Regulator of Social Housing {RSH) as a social landlord. This brings our corporate form in line with more commonly found structures within social housing. Care Housing Association is governed by its rules. Care Housing Association is run by its CEO with strategi decisions overseen by the board. The board usually consists of six oard members, with no upper limit and a quorate requirement of two board members. At each annual general meeting one-third of the board members or, if their number is not three or a multiple of three, the number nearest lo one-third, musl retire from office. If there is only one board member, he or she musl retire. The board members lo retire by rotalion shall be those who have been longest in office since their last appointment. If any board members became or were appointed diiectors on Ihe same day those lo retire shall (unless they otherwise agree among themselves) be delemiined by lot. If a board member is required to retire at an annual general meeting by a provision of the rules the retirement shall take effect upon the conclusion of the meeting. The Rules dictate that no board member may stand for re-election more Ihan iwo times and no board member may remain in office (with or without retirement and re-election} for an aggregate period of more than six) years. However. if the Board agree that circumstances dictate that il would be beneficial for the Association to exlend this term, this can be agreed and reviewed annually. No board member can stand for more than 9 years on the Board
CARE HOUSING ASSOCIATION STRATEGIC REPORT (CONTINUED> FOR THE YEAR ENDED 31 MARCH 2025 Principal risks and uncertaintles The supported housing sector has several risks relating lo the capital and revenue funding models deployed. In terms of capital, there is limited public funding available to enable SLsffiGient investment in new homes to meet the conlinued and growing demand for services. The Homes England funding regime does not work al scale for specialised supported housing, which typically requires 70 / + of funding lo ensure providers are able to meet Iheir regulatory responsibilities around rent setting. Likewise, although NHS England do make Capital avaable for specialist projects, il is a finite amount and meets only a fraction of the housing demand. Although private capital has historically been more readily available, the market has stagnated over the previous 2-3 years due lo high-profile failings from private capital investors over the previous decade, increasing return expectations driven by rising interest rates, and a lack of confidence in the lOnterM sustainability of Ihe model. In addition, construction costs have increased significantly higher than inflalion, and so the costs of delivering new homes, and the subsequenl increasing rent levels, are making it more difficult to deliver homes which are financially sustainable for housing providers. Desprte the challenges in delivering new homes, the Association still retains ambitious growth targets. However, this must be balanced with the need lo undertake sufficient due diligence on all parties (care providers, local authorities, developers, and contractors} and ensure that our homes relain the appropriate level of quality and sustainability. April 2024 saw the inlroduction of revised consumer standards and delivered greatef powers for the Regulator of Social Housing. This has led lo greater expectations around quality. safety, and ensuring tenanls have appropriate means of engagement with their landlord. Care backs the move to raise standards further but must also be conscious of the resourcing and practical implications of meeting the standards. Other legislative changes include the introduction of the Supported Housing (Regulatory Oversight) Act 2023, which will see the inlroduclion of a licensing system for supported housing providers and will look to introduce minimum standards for care and support. The Association may need to adapt its practices and ensure that and adaptation is resourced adequately. The uncertainly around this should cryslalise over the next 12 months. The Board has undergone a period of Iransilion over the previous 12 months, with two long-standing Board Members retiring, and new Members joining the Board. Whilst potentially unsettling, the Board have managed this transition well. The staff team has grown further. with the introduction of key staff in asset management, operations finance. The increased capacity and experience of the team will help to meet some of the legislative and regulatory challenges and also equip the Association well to continue to grow in a sustainable way.
CARE HOUSING ASSOCIATION STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Objectives and activities The Association is formed for the benefit of the community. Its Charitable objects shall be lo carry on for the benefit of the community.. the business of providing and managing housing, including Social Housing, accommodation and providing assistance lo help house people and associated facilities. servi$ and amenities for poor people or for the relief of aged, disabled {whelher physically or mentally) or chronically sick people., and any other charitable object that can be carried out from time to time by a registered society regislered with the Regulator as a private registered provider of Social Housing. Plan for future periods Care Housing Association plans to continue developing new properties to meet our objects over the coming 12 months. Although it is anticipated that most new business will be through leases with third party landlords, a significant amount of focus has been on ensuring risks associated with lease arrangements are reduced. This has been achieved through renegotiation of terrns with landlords. However, access lo capital is more limited than in previous years due to concerns form investors regarding the stability of the market, and rising finance costs which apply upwards pressures on rent levels. However, the Association does have reserves that will enable investment into owned properties, should the appropriate opportunities arise. Non-Financial KPI'S The Board considers non-financial KPI'S on a quarterly basis. This includes the following information.. Perfonnance Indicator Emergency Repairs completed within timescales {4 hours) Non-emergency repairs completed within limescales14-21 days) Average lime laken to complete white goods repair Average lime taken to complete routine repair /0 voids against lolal stock /0 ASB reports responded to within tImesle /0 Complaints closed within timescale Actual 97.380/0 92.89 /. 4.60 days 7.94 day5 Target 95/0 95% 10 days 21 days <12/ 100¢/0 100/ 100/9 Any underperformance is reported to Board by the CEO. PerformanGe against repairs KPI'S dropped slighlly below our targets this year for two main reasons.. This was largely due lo difficulty in accessing properties. We are introducing better partnership working and communication with tenants and care providers to attempt to combat this issue. We now capture data relating to lenanl satisfaction in different ways, and in line with Ihe requirements of the Tenants Salisfaclion Measures ITSMS), as prescribed Ihe the Regulator of Social Housing.
CARE HOUSING ASSOCIATION STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 FinanGial KPI'S Value for money metrics In addition lo the ialios measured internally. the following ratios have been calculated for Ihe fdlue for ffloney standard in accordance with the Regulator of Social Housing. Some of these ratios are included above and may be calculated differentiy as mentioned in the standard. Reinvestment°A 14.34/0 Care Housing Association has reinvested in freehold properties in 2024-25 and is still growing through the leasehold market. New supply delivered Vr* 9.09'/. Care Housing Association has delivered an additional six units of Specialised Supported Housing with being freehold purchases. Gearing •/0 (per VFM report) 7.35 % Care Housing have taken on additional debt, however the ratio considers cash which has increased therefore ratio is lower than 2024. Earnings before interest. tax, depreciation, amortisation, major repairs included IEBITDA MRI) inlerest 517.94°/. This has remained consistent inline with the companies performance. Headline social housing cost per unit £ £12,623 Thi5 is a measurement of key social housing costs against the number of units at the year end. The costs are identified by the Regulator of Social Housing. Operating margin % 6.04°/ This has remained consistent inline with the companies performance. Return on capital employed (ROCEI •A (per VFM report} 4.83 0/0 Approved by the Board on 19 September 2025 and signed on its behalf by pj Mr R Parr- Chair Mrs N Khan
BOARD REPORT CARE HOUSING ASSOCIATION BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2025 The board present their annual report and financial slalements for the year ended 31 March 2025. Principal activities The principal activity of the associalion is the provision of social housing accommodation. Board The board who held office during the year and up to the date of signature of the financial statemlS were as follows.. Mr R Parr- Chair Mrs N Khan Mr B Gallagher Ms G Fazackerley MrA Richards Mrs D Holmes Mrs V Cooper Ms D Kelly {Resigned 23 May 2024} (Resigned 15 August 2024) (Appointed 13 February 2025) (Appointed 13 February 20251 Financial instruments Objectives and policies The association holds or issues financial instruments in order to achieve three main objectives, being.. i) lo finance its operations., ii) to manage its exposure to interest, credit and liquidity risks arising from its operations and from ils sources of finance.. and iii) for trading purposes. In addition various financial instruments (e.g. accounts receivable, accounts payable, accruals and prepayments} arise directly from the association's operations. Transactions in financial instruments result in the association assuming or transferring lo another party one or more of the financial risks described below. Liquidity risk Working capilal and liquidity is managed as part of day lo day business routines such as the association has no significant concentration5 of liquidity risk. Credit risk The association has no significant concenlralions of credit risk. Amounts shown in the balance sheet best represent the maximum Gredit risk exposure in the event other parties fail lo perform their obligations under financial inslfumenls.
BOARD REPORT CARE HOUSING ASSOCIATION BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2025 Ststsmenl of disclosure to auditor So far as each board member at the dale of approving ihis report is aware, there is no relevant audit information of which the association's auditor is unaware. Additionally, the board individually have taken all the necessary steps thal they ought to have taken as board members in order to make themselves aware of all relevant audit information and to establish thal the association's auditor is aware of that information. Approved by the Board on 19 September 2025 and signed on its behalf by Mr R Parr- Chair Mrs N Khan
CARE HOUSING ASSOCIATION STATEMENT OF BOARD'S RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The board are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Co-operative and CommLtnity Benefit Society law requires the board to prepare financial statements for each financial year. Under those regulations the board have elected to prepare the financial statements in accordanGe with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial statements are required by law lo give a true and fair view of the slate of affairs of the association and of the income and expenditure of the association for that period. In preparing these financial statemenls, the board are required to.. select suitable accounting policies and then apply Ihem consislenlly.. make judgements and accounting eslimales that are reasonable and prudenl., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the association will continue in business. The board are responsible for keeping pioper books of account thal disclose with reasonable accuracy at any time the financial position of Ihe association and enable them to ensure that ils financial statements comply with the Co-operative and Communily Benefit Societies Act 2014 and the Accounting Direction for Private Registered Providers of Social Housing 2019. It is responsible for such inlemal control as il determines is necessary to enable Ihe preparation of financial statements that are free from material misstatement, whether due to fraud or error. and has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the association and lo prevent and detect fraud and other irregularities.
CARE HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARE HOUSING ASSOCIATION Opinion We have audited the financial statements of Care Housing Association (the 'association') for the year ended 31 March 2025 which comprise the slatement of income and retained earnings, the balance sheet, the slalemenl of cash flows and noles lo the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom A¢counting Standards, including Financial Reporting Slandard 102 The FinanGial Reporting Standard applicable in the UK and Republic ol Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the association's affairs as at 31 March 2025 and of its profil for the year then ended., have been properfy prepared in accordance with United Kingdom Generalty AcGepled Accounting Practice, the Housing and Regeneration Act 2008 and the Accounting Directiortr for Private Registered Providers of Social Housing 2019., and have been prepared in accordance with the Co-operative and Community Benefit Societies Act 2014 and the Housing SORP.. 2018 (Statement of Recommended Practice for registered social housing providers). Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs SponSIbl1111eS for the audit ol the financial statemenls section of our report. We are independent of the associalion in accordance with the ethical requirernents 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 ihe financial slalements, we have concluded that the board use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identrfied any malenal uncertainties relating lo evenls or conditions that, individually or collectively. may casl significant doubl on Ihe association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issuè. Our responsibilities and the responsibilities of the board with respect lo going concern are described in the relevant sections of this report. other inforniation The other informalion comprises the information included in the annual report other than the financial Statements and our auditorfs report Ihereon. The board are responsible for the other information contained within Ihè annual report. Our opinion on the financial statements does not cover the other information and, except lo the extenl olhernvise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read Ihe other information and, in doing so, consider whether the olher informalion is materially inconsistenl with the financial statements or our knowledge obtained in the course of the audit, or othetwise appears lo be materially misslated. If we identify such material inconsistencies or apparent malerial misstatements. we are required lo determine whether this gives rise to a material misslalemenl in the financial slatemenls Ihemselves. 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 lo report in this re9ard.
CARE HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARE HOUSING ASSOCIATION Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the association and ils environment obtained in the course of the audit. we have not identified material misstatements in the strategic report or the board report. We have nothing io report in respect of the following matters where we are required by the Co-operative and Community Benefit Societies Acl 2014 to report to you if, in our opinion.. adequate accounting records have not been kept, or relums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of the boards. remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. the board were nol entitled to prepare the financial slatemenls and the board report in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the board report and from the requirement lo prepare a slralegic report. Responsibilities of the board As explained more fully in the board responsibilities statement, the board are responsible for the preparation of the financial statements and for bein9 satisfied that they give a true and fair view, and for such intemal control as the baord is necessary to enable the preparation of financial statements that are free from material misstatement. whether due lo fraud or error. In preparing the financial statements. the directors are responsible for assessing the association's ability to continue as a going concem, disclosing, as applicable, matters relaled lo going concern and using the going concern basis of accounting unless the directors either intend lo liquidate the association or to cease operations, or have no realislic amernative but lo do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are lo 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 bul is not a guarantee thal an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. msSIaleMentS can arise from fraud or error and are considered material rf, individually or in the aggregale, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect malerial misslalemenls in respect of irregularities. including fraud. The extenl to which our procedures are capable of detecting irregularities. including fraud is detailed below. 10-
CARE HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARE HOUSING ASSOCIATION The extent to which the audit was considered capable of detecting irregularities including fraud Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to idenlify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the association through discussions with board members and other management, and from our commercial knowledge and experience of the computer component manufaduring and supply sector., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the association. including Ihe Co-operative and Community Benefit Societies Act 2014, taxation legislation and data protection, anti-bribery, employment. environmental and health and safety legislation., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecling legal correspondence,. and identified laws and regulations were communicated within the audit team regularly and the team rernained alert to instances of non-compliance throughout the audit. We assessed Ihe susceptibility of the associalion's financial statements to material misstatement, including obtaining an understanding of how fraud might occur. by.. ma.ng enquiries of management as to where they considered there was susceptibilrty lo fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place lo mitigate risks of fraud and non-complian with laws and regulations. To address the risk offraud through management bias and override of controls, we: performed analytical procedures lo identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., assessed whelherjudgements and assumptions made in determining the accounting estimates were indicative of potential bia5', and investigated the rationale behind significant or unusual transactions 11
CARE HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARE HOUSING ASSOCIATION In response to the risk of irregularrties and non-compliance with laws and regulations, we designed prOdureS which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation." reading the minutes of meetings of those charged with governance,. enquiring of management as to actual and potential litigation and claims., and reviewing correspondence with HMRC. relevant regulators inGluding ihe Health and Safely Executive. and the association's legal advisors. There are inherent limitalions 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 slandards also limit the audit procedures required to identify nonvcompliance with laws and regulations to enquiry of the board and other management and Ihe inspection of regulatory and legal correspondence, if any. Material fnisstatemenls that arise due to fraud can be harder to detect than those that arise from erroT as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website al.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor'5 report. Use of our report This report is made solely lo Ihe association's members, as a body, in accordance wilh the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the association's members those matters we are required lo state to them in an audilor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilily to anyone other than the associalion and the association's members as a body, for our audit work, for this report, or for Ihe opinions we have formed. Philip Jones BA Hons {FCCA) (Senior Statutory Auditor) For and on behalf of Xeinadin Audit Limited Accountants 19 September 2025 Riverside House Kings Reach Business Park Yew Street Stockport Cheshire United Kingdom SK4 2HD 12-
CARE HOUSING ASSOCIATION STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Turnover Cost of sales 8,231,915 15,430,015) 7.081.475 {4,450,783} Gross surplus 2,801.900 2,630,692 Administrative expenses Other operating income (2,323,728) 19,412 12,182,970) 25,883 Operating surplus 497.584 473,605 Interest receivable and similar income Interest payable and similar expenses 646 {124,461} 5.211 (117,319) Surplusl{deficit) before taxation 373.769 361,497 Tax on surplus Surplusl{deficitl for the financial year 373,769 361,497 Retained eafnings brought forward 3.477.244 3.115,747 Retained eamings carried forward 3,851.013 3,477,244 The surpluslldeficil} account has been Prepared on the basis that all operations are continuing operalions. 13-
CARE HOUSING ASSOCIATION BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets 8,153,511 7,326,040 Current assets Debtors Cash at bank and in hand 10 2,302,623 2,026,911 2,220,424 1,089,148 4.329,534 3,309,572 Creditors". amounts falling due within one year 11 (2.189.595) (2.096.068) Net current assets 2,139,939 1.213,504 Total assets less current liabilities 10.293.450 8,539,544 Creditors". amounts falling due after more than one year 12 {6,442,4371 {5,062,298} Net assets 3,851.013 3,477,246 Capltal and reserves Called up share capital Income and expendilure reserve 15 3,851.013 3,477,244 Total equity 3,851.013 3,477,246 The financial slalements were approved by the board and auth0ri5ed for issue on 19 September 2025 are signed on its behalf by.. MrRPa Chair Mrs N Khan FCA Registratlon No. 9424 14-
CARE HOUSING ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Cash flows from operating activities Cash generated from operations Inleresl paid 18 1.249,453 (124,461 } 424,773 (117,319} Net cash inflow from operating activities 1.124,992 307,454 Investlng activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Interest received {1.148,610) 126,929 646 (636.423) 5,211 Net cash used in investing activities (1.021.035} (631,212) Financing activities Proceeds from issue of shares Loans issued net of repayments 12) 833.805 (21,366) Net tash generated froml(used inl rinancing activities 833,803 (21,366) Net increasel{decrease) in cash and cash equivalents 937.760 (345,124) Cash and cash equivalents at beginning of year 1,089,148 1,434,273 Cash and cash equivalents at end of year 2,026,911 1,089,148 15-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Association infonnation The association is registered with the Financial Conduct Aulhority under the C(Foperative and Community Benefits Societies Act 2014 (registration number 9424} and is re9islered with the Regulalor of Social Housing as a social housing provider {registralion number 4672). The address of its registered office is.. Riverside House Kings Reach Business Park Yew Street Stockport Cheshire SK4 2HD The principal place of business is.. Suite 29 Hardmans Business Centre New Hall Hey Road Rawtenstall Lanca5hire BB4 6HH 1.1 Accounting convention Summary of significant accounting policies and key accounting estimates These financial slalements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Slandard 102 (FRS 102), the Cooperative and Community Benefit Societies Act 2014 and the Housing SORP 2018 Slalemenl of Recommended Piactice for Registered Social Housing Providers and comply wrth thè Accounting Direction for Private Registered Providers of Social Housing 2019. The financial slatemenls have been prepared under the historical cost convention The principal accounting policies adopted are set out below. Statement of compliance These financial slatemenls have been prepared in accordance wtlh Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and in accordance with the Housing SORP.. 2018 (Slalemenl of Recommended Practice for registered social housing providers) Basls of preparatton These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown al fair value. Care Housing Association is a public benefrt entity in accordance with FRS 102 paragraph 3.3A 1.2 Going concern At the time of approving the financial statements, the board have a reasonable expectation thal the association has adequate resources lo continue in operational existence for the foreseeable future. Thus the board continue to adopt the going concem basis of accounting in preparing the financial stalemenls. 16-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Contlnued} 1.3 Turnover Turnover comprises the fair value of the rental income received or receivable for the provision of services in Ihe ordinary course of the associalion's activities. The association recognises revenue when-. The amount of revenue can be reliably measured- it is probable that future economic benefits will flow to the entity.. and specific criteria have been mel for each of the association's activities. More specifically the maiorily of income is received via housing benefit from local aulhorities. The rental income is received in 4 weekly terms,. therefore, Care Housing Association re¢ognises income on a 52 week period. In these accounts the period is from 25th March 2024- 24th March 2025. Olher income that is invoiced for void occupancy is recognised up lo 31st March 2025. 1.4 Tangible fixed assets Tangible assels are stated in the statement of financial posrtion at cosl, less any subsequent accumulated depreciation and subsequent accumulated impairmenl losses. The cosl of tangible assets includes directly attributable incremenlal costs incurred in their acquisilion and inslallation. Depreciation is recognised so as lo write off the cost or valuation of assels less their residual values over their useful lives on the following bases.. Land and buildings Leasehold costs Freehold Buildings - Structure Freehold Buildings - Kitchen Fixtures and fittings Computer equipment Freehold Buildings - Heating Freehold Buildings - Boiler Freehold Buildings- Windows Freehold Building - Roof Office èquipment Term of lease 25% Written down value 100 years 10 years 15 years 30 years 30 years 10 years 25 years 40 years 33 /0 WrFtten down value The gain or loss arising on the disposal of an assel is determined as the difference behveen the sale proceeds and the carrying value of the asset, and is credited or charged to income or expenditure. 1.5 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-lerm highly liquid investments that are readily convertible lo a known amount of cash and are subject to an insignificant risk of change in value. 1.6 Financlal Instruments Classification Financial instruments are classified for, according to the substance of the contractual agreemenl, as financial assets, financial liabilities or equity inslrumenls. 17-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl Fair value measurement of linancial instruments Recognition and measurement An equity instrument is any contact thal evidences a residual interest in the assets of the association after deduding all of its liabilities. Where shares are issued, any component that creales a financial liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the income and expenditure account. Basic financial assefs Basic financial assets. which include debtors and cash and bank balances, are initially measured at tiansaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement constitutes a financing transadion. where the Iransaclion is measured al the present value of the future receipts discounted at a market rale of interest. Financial assels classified a5 receivable within one year aTe not amortised. Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially al the transaction price. They are subsequently Measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the association will not be able to colle¢t all amounts due according to the original terms of the receivables. Other financial assets Other financial assets, including investments in equity instruments which are not subsidiaries. associates or joint ventures, are initially measured at fair value. which is normally ihe transaction price. Such assels are subsequenlly carried at fair value and the changes in fair value are recognised in income or expenditure, except that investmenls in equity instruments Ihal are not publicly traded and whose fair values cannot be measured reliably are measured al cost less impairment. Impaimient of financial assets Impairment Financial instrumenls are reviewed annually for any changes in value andlor written down if they are impaired. Derecognition of financial assets Financial assets are derecognised only when the conlfactual rights to the cash flows from the asset expire or are settled, or when the associalion transfers the financial asset and substantially all the risks and rewards of ownership lo another entity, or if some significant risks and rewards of ownership are retained bul control of the asset has Iransferred to another party that is able lo sell the asset in its enlirety to an unrelated third party. Classrfication of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contracl that evidences a residual interèst in the assets of the association after deducting all of rts liabilities. Trade creditors Trade creditors are obligalions lo pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as currenl liabililies if the a5socialion does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for al least twelve months after the reporting dale. If there is an unconditional right to defer settlement for at least tsvelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially al the transaction price and subsequently rneasured al amortised cosl using the effective interest method. 18-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Other financial liabilities Derivatives, including interest rale swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contracl is entered into and are subsequently re-measured al their fair value. Changes in the fair value of derivatives are recognised in income or expenditure in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. Debt instruments Ihal do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured al fair value through income or expenditure. Debt instrumenls may be designated as being measured at fair value through income or expendilure to eliminate or reduce an accounting mismatch or if the instrumenls are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or inveslmenl strategy. Derecognition of financial liabilities Financial liabilities are derecognised when the association's contractual obligations expire or are discharged or cancelled. 1.7 Retirement benefits A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the association has no legal or constructive obligation lo pay further conlnbulions even if the fund does nol hold sufficienl assets to pay all employees the benefits relating to employee service in the r)Jrrenl and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due. 11 contribution payments exceed the conlribution due for service. the excess is recognised as a prepayment. 1.8 Leases Rentals payable under opeiating leases, including any lease incentives received, are charged to income or expenditure on a straight line basis over the term of the relevant lease except where another more syslematic basis is more represenlalive of the lime pattern in which economic benefits from the leases asset are consumed. 1.9 Government grants Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance condrlions is recognised in income when the performan conditions are met. Where a grant does not specify perfomance conditions it is recognised in income when the proceeds are received or receivablè. A grant received before the recognition criteria are satisfied is recognised as a Judgements and key sources of estimation uncertainty In the application of the association's accounting policies, the board are required to make judgements, eslimates and assumplions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimates and associated assLJmplions are based on hislorical experience and other factors that are considered to be relevant. Actual resulls may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounling estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and fulure periods. 19-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Judgements and key sources of estimation uncertainty (Continued) Operating lease commilments The association has enlered into a number of operating leases which il oblains the use of. The classification of such leases as operaling or finance lease requires the associalion to determine, based on an evaluation of the terms and conditions of Ihe arrangements, whether il retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liabilrty lo be recognised in the slatemenl of financial position. Turnover and other revenue 2025 2024 Tumover analysed by class of buslness Rental income Other income 8,116,992 114,924 6,844,672 236.804 8,231.916 7,081,476 2025 2024 Other revenue Interest income Grants received 646 19,412 5,211 25,883 Operating surplus 2025 2024 This is arrived al after charging.. Government grants Fees payable to the association's auditor for the audil of the financial statements Depreciation of owned tangible fixed assets Loss on disposal of tangible fixed assets Operating lease charges (19,412) (25,883) 9,348 165,822 28,386 15,977 6,918 160,022 Auditorfs remuneration 2025 2024 Fees payable lo the associalion's auditor and associates.. For audit services Audit of the financial statements 9,348 6,918 For other services All other non-audit services 17.367 12,948 -20-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Employee$ The average monlhly number of persons employed by the asso¢iation during the year was.. 2025 Number 2024 Number Administration and support 14 14 Their aggregate remuneration comprised.. 2025 2024 Wages and salaries Social security costs Pension Gosls 550,386 58.380 25,298 493,248 47,606 22,887 634,064 563,741 The remuneralion paid to key management in the year was £101,031 12024.. £101.776) including benefit in kind payments plus £3,51412024'. £3,141) in employers pension contributions. Interest payable and similar expenses 2025 2024 Interest on financial liabilities measured at amortised cost: Other interest on financial liabilities 124,461 117,319 Interest receivable and similar income 2025 2024 Interest income Interest on bank deposits 646 5.211 21
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Tangible fSxed assets Land and bulldlngs Leasehold Fixtures and Costs fittlngs Comput•r equipment Total Cost At 1 April 2024 Additions Disposals 7,586,738 1,131,617 1188.550) 311.212 16,993 266,243 42,781 8,206,974 1,148.610 (188,550) Al 31 March 2025 8,529,806 328,205 266,243 42.781 9,167,035 Depre¢iation and impairment Al 1 April 2024 Depreciation charged in the year Eliminaled in respecl of disposals 564,194 105.480 (33.234) 128,798 28,026 169,704 24,135 18,240 8,181 880,936 165,822 (33,234} At 31 March 2025 636,440 156,824 193,839 26,421 1.013,524 Carrying amount At 31 March 2025 7,893,366 171.381 72,404 16.360 8,153,511 At 31 March 2024 7.022,546 182,413 96,540 24,541 7,326,040 10 Debtors 2025 2024 Amounts falling due within one year: Trade debtors Other debtors Prepaid expendilure Accrued income 120,431 128.460 1,760.414 293,318 227,278 12,363 1.789,259 191,524 2,302,623 2.220,424 11 Creditors: amounts falling due wlthin one year 2025 2024 Notes Bank loans Trade creditors Taxation and social security Other creditors Accruals and deferred income 13 77.590 1,668,611 15.377 44,777 1,839,654 (1,562) 428,015 213,199 2,189,595 2,096,068 22-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED> FOR THE YEAR ENDED 31 MARCH 2025 12 Creditors: amounts falling due after more than one year 2025 2024 Notss Bank loans and overdrafts Void provision Olher creditors 13 2,529,874 1,126,791 2,785,772 1.728,882 931,051 2,402,365 6,442,437 5,062.298 13 Loans and overdrafts 2025 2024 Bank loans 2,607,464 1,773.659 Payable within one year Payable after one year 77,590 2,529,874 44,777 1,728,882 The bank loans are seGured by a legal charge over 34 Farringdon Road, Wafrington. 519 Hernpshaw Lar Stockport, 48 Ebbdale Close, Stockport. 16 Corinthian Avenue, Liverpool, 148 Nangreave Road, Stockport, 6 Bangor Road, Cheadle, 18 Hertford Close. Warnngton. 2 Savernake Road, Stockport, 31 Summerbridge Crescent, Bradford, 6 Lindbury Avenue, Slockport, Flats 1-9 Vicloria Gardens, Clitheroe and 1- 2 Roxburgh Gardens. Hull. The cumulalive capital repayments after 5 years are £2.104,469 and the interest rate on these repayments are 1.6 % above the Bank of England base rate. 14 Pension schemes 2025 2024 Defined contribution schemes Charge to income or expenditure in respect of defined conlribulion schemes 25,298 22,887 The association operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separalely from those of the association in an independently administered fund. 15 Share capital 2025 Number 2024 Number 2025 2024 Ordinary share capital Issued and fully paid 175of1peach 175 23-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 16 Contingent liabiitles Rental In¢ome Included in the rental income collected by the association is a percentage relating to fulure voids. This element is deferred in the financial 51atements and will be released to the income and expenditure account as and when a void arises. If, al the end of the agreement period, any of the deferred rental income for properties with LanGashirè County Council is not released to the income and expendilure account, one third of the balance is payable to Lancashire Social Setvices. This amount per the void provision al the 31st March 2025 is £157,991 (2024: £168.9981. Due to the nature of the agreements there is a possible transfer of economic benefits, of which the amount remains uncertain. The management agreements are in place for 10 or 15 years from when they commenced and are linked to the properties on an individual and property by property basis. Grants Within other creditors more than one year is a second grant that was issued to Care Housing which was in the year ended 31st March 2017. This was also used lo purchase a property for individua15 with learning disabilities lor such other needs as are agreed by NHS England). The terms of the grant stipulate that if the property is sold the grant is repayable, unless NHS England waiver ils right to repayment. NHS England have 1 st legal charge over the property. This is released using the accruals model in ac¢ordance with FRS102 due to the clause. Durin9 2020 a Ihird granl was issued by NHS England with the same terms as the above NHS grant. The granl was issued for £419,000 in 2020 with a further £98,819 being issued in the 2021 year end. During 2021 a fourth grant was issued by NHS England with the same terms as the above NHS grant. The grant was issued for £300,000 in 2021 with a further £125,616 issued in the 2022 year end. During 2023 a fifth grant was issued by NHS England with the same terms as the above NHS grant. The grant was issued for £500,356 in 2023 with a further £90,003 issued in Ihe 2024 year end. During 2025 a sixth grant was issued by NHS England with the same terms a5 the above NHS grant. Tl grant was issued for £385,000 in 2025 wilh a further £310,638 issued in the 2026 year end. 17 Operating lease commitments As lessee At the reporting end dale the association had oulslanding commitments for fulure minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2025 2024 Within 1 year Years 2-5 After 5 years 11,311 740.189 51,248,325 3,087,950 55,579,155 58,667,105 51.999,825 -24-
CARE HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 18 Cash generated from operations 2025 2024 Surpluslldeficit) after laxation 373.769 361,497 AdJustments for: Finance c051s Investment income Loss on disposal of tangible fixed assets Depreciation and impaimient of tangible fixed assets 124,461 (646> 28.386 165,822 117,319 (5,2111 160.022 Movements in working capital: Increase in debtors Increase in creditors (82.199) {1,509,4491 639,861 1,300,594 Cash generated from operations 1.249,453 424,773 19 Analysis of changes in net debt 1 April 2024 Cash flows31 March 2025 Cash at bank and in hand Borrowings excluding overdrafts 1.089.148 (1.773,659) 937,763 2.026.911 (833,805} (2,607,464) (684,511) 103,958 (580,553) -25-
CARE HOUSING ASSOCIATION DETAILED TRADING AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Turnover Core rent Void income invoiced Fumilure Cover Allowance Major repairs income Other Income 6,934,084 789,255 11.232 382,419 114.925 5.653,012 745,453 22,068 424,138 236,804 8,231,915 7.081,475 Cost of sales Purchases and other direct costs Lease Payments Major Repairs provision Void Provision 4,851,855 382,419 195,741 3,889,476 424,138 137,169 Total purchases and other direct costs 5.430.015 4,450.783 Total cost of sales {5,430.015) (4,450,783> Gross surplus 2,801,900 2,630.692 Other operating income Government grants receivable and released 19,412 25,883
CARE HOUSING ASSOCIATION DETAILED TRADING AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Administrative expenses Wages and salaries Staff NIC (Employers) Staff recruilmenl costs Staff training Staff pensions (Defined Contributions) Premises Expenses Rates Power, light and heat Property, Maintenance and While Goods Insurance Furnishings Water treatment and testing Fire risk assessment Compuler software and maintenance costs Car hire (Operating leases) Molor Expenses Accommodation and subsislence Professional subscriptions Legal and professional fees Consultancy fees Accountancy Fees Auditor's remuneration - The audit of Ihe annual accounts Void Propety Spend Rose Truslam Foundation (formeTly Care Foundation) Donations Bank charges Bad and doubrful debts Board meeting expenses Marketing Printing, postage. stationery and telephone expenses Gardening Sundry Expenses Depreciation Surplus or deficit on sale of tangible assets {non exceptional) 550,386 58,380 493,248 47,606 119 6,230 22,887 16,094 70.247 151,337 780,720 115,597 52,668 21,142 9.168 22.630 14,680 25,298 32,426 128,212 127,736 563,696 110,886 42,549 64,021 15,714 66,088 15,977 20,073 454 18,600 43,915 19,203 17,367 18,268 199 5.999 19,725 17,507 12,948 9,348 45,118 6,918 35,725 4.611 3.436 100 1,273 2,893 38,827 9,730 16,873 10,047 43,894 12,519 165,821 1,600 6,797 11,926 50,009 20,824 160,023 28,386 (2,323,728) (2,182,970) Operating surplus 497.584 473,605 Interest re¢eivable and similar income Bank interest received 646 5,211 646 5.211 Interest payable and similar expenses Non bank interesl on loans 1124,4611 (117,319)
CARE HOUSING ASSOCIATION DETAILED TRADING AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Surpluslldeficit} before taxation 373,769 361,497