Reglstered number: 1084S391 Charity number: 1174376 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Armstrongwatson. Accountants, Business & Finanaal Advisers ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) CONTENTS Page Reference and administrative details of the companyi its Trustees and advisers Chalrnian's Ststement Trustees. Report Independent AudltoYs' Report on the Financial Ststements 10-13 Statement of Financial Activities 14 Balanc• Sheet 15-16 Statement of Cash Flows 17 Notes to the Flnancial Statements 18-36 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees and Olrectors Canon P K Warren, President (resigned 30 September 2024) DrA Wells Mr J W Robson Mrs S Caddy Mr M Casson Mr A G Davies (resigned 30 September 2024) Dr J Greenwell Dr N Martin (resigned 30 June 2024) Mr G Walker, Chair DrARGaw E Ashcroft (appointed 18 August 2025) Mr B Cooper (appointed 1 July 2025> D Craig (appointed 18 August 2025) Mr M Squires (appointed 18 August 2025) Company registered number 10845391 Charity registered number 1174376 Reglstered office Cove House Cove Road Silverdale Carnforth Lancashire L45 OSG Company Secretary Catherine Humphreys ACMA Chlef Executlve Officer Catherine Humphreys AChAA Independent auditors Armstrong Watson Audit Limited Chartered Accountants and Statutory Auditors James Watson House Montgomery Way Rosehill Cadisle Cumbria CA12UU Solicitors Harrison Drury Solicitors Park Hill House Cherestanc Square Garstsng Preston PR3 1EF Page 1 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 The Chaimian presents his statement for the year. The period since the last AGM in September 2024 has seen signrficant change, and without doubt has been one of the most important periods in the history of the Abbeyfield Silverdale Society {ASS). Three key events need to be highlighted: Trustees at the Lytham, Leigh and Barr￿4¥ societres passed resolutions to transfer the assets and liabilttÉes of their societies to ASS. The trustees at ASS similarly passed resolutions and as a result Lylham, Leigh, and Barrow Abbeyfi'eld societies have merged into Abbeyfield SiEverdale. The Regulator of Social Housing approved our bid to become a Registered Provider of Social Housing. Full Planning Approval was given by Lancaster Planning for our planned major Supported Housing extension at Cove House. The aforementioned will clearly have a major impact on Governance, Strategy and Operations moving fo￿ard. We will need to expand and dNersify our staffing structure to reflect the addition of housing within our portfolio, and of course our Trustees will need to represent all our locations and properties. Trustees will need to be aware of new Regulatory frameworks, new building and capital projects, and budgetary and staffing systems. Hamionisation of all processes will take at least 18 months and I believe that the period ahead will be exciting, and on occasion, challenging! l am optimistic that we have the staff expertise and Trustee skill and experience to ensure successful integration. l am also delighted that staff and trustees from all societies have been able to work in such a supportive manner during this transitional period. The CHIP group (Cove House Improvement Plan) and HPA Architects have already had several meetings regarding the new extension. We aim to progress this hugely important project during the coming year and will focus on developing a business case and the procurement and tendering processes. The external social, financial and political environment Continue to offer significant challenges to the care sector but we have managed to navigate these turbulent times in an effective manner. As you will see from the financial section in the Directors, report we have had another positNe year. We ensure that qualty of our provision is never taken for granted and during this year have worked with an external consultant who has challenged us in a number of areas. Trustees and our care staff are working together on an Action Plan focussing on continuous improvement. During the period 2024-2025, Abbeyfield England (AE) has developed and matured and now represents all Member Societies in an effective and efficient manner. Our society plays a major role in the organisation - continue to sit on the national AE Board and our Chief Executive Officer contributes at both a local and national level. We are undoubtedly a major player within the Abbeyfield family. As I have already stated. this year has been busy and challenging and, as ever. I wish to place on record my sincere thanks to all of you - Staff, Volunteers and Trustees. In particular. I want to thank our Chief Executive Officer who has been central to the positive developments mentioned in the report. Finally. I would like to wamily thank those long-standing trustees who are leaving the Board at the AGM. Your contributions have been 5ignifi¢ant and have played a major part in ensuring that our society is in such a good place. Geoff Walker Chair of the Board of Trustees Page 2 ABBEYFIELD SILVERDALE SOCIETY (A Company Limltsd by Guardntee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees of Abbeyfield Silverdale Society ('the Society") are pleased to present their annual Tnjstees. report and financial statements for the year ending 31 March 2025. The financial statements are prepared in accordance wrth the current Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102 effective 1 January 2019). In addition. the financial statements are prepared to meet the requirements for a Directors. report and accounts for Companies Act purposes. Since the company qualifies as small under section 382 of the Companies Act 2006. the Strategic Report required of medium and large companies under the Companies Act 2006 {Strategic Report and Directors. Report) Regulations 2013 has been omitted. Objectives and activities a. Policies and objectives The principal purpose of the Society is: The relief and carg of elderty persons suffering from the disabilities of old age or othe￿iS9 being in need, including by the provision and management of housing and/or residential care homes and/or hostels. In the furtherance of these objects. but not otherwise. the Society may: (a) provide and maintain or assist in providing and maintaining housing andlor residential care homes andlor hostels. andlor social housing for such elderly persons; and (b) provide or assist in providing care, support, amenilies or services for the benefit of such elderly persons. The Society operates a residential care home for 23 elderly people and a retirement living complex, Cove 0￿hard, on its site in Silverdale, north Lancashire. On December 1st 2024, the Society took over the supported living houses at ￿ properties in Lytham St Anne's, looking after the needs of up to 19 residents. This forms the basis of the Society's primary activities, which are to provide care and support to older people. Abbeyfield Silverdale Society (the Society) is a member of the Abbeyfield movement, whose purposes have been regarded as being for the public benefit for over 60 years. By providing accommodation and seNices the Society meets the needs of older people for accommodation and other services suited to their needs. These services are open to all older people in need regardless of their mental or physical frailty. These include, but are not limited to, people living with dementia and frailty as well as those being supported at the end of their life. Through the provision of its services, the Society aims also to combat the loneliness and social isolation that is often associated with old age and improve the physical. mental and social wellbeing of residents through the provision of approprtate and inclusive activities. often carried out by volunteers. The Society serves the local community but does not apply any fomi of restriction. geographical or otherwise to members of the public who would seek to make use of its se￿ICe$. The Societys residential care operations are regulated by the Care Quality Commission, which has rated its services as 'Good' for several years. The services offered by the Trustees of the Society are deemed to be beneficial by their nature and are available to a large section of the public. In common wilh many charitable care homes, the Society charges for its seNices in order to provide sustainable. high-quality care for older people. The charges are in a broad range and considered affordable in the market. Beneficiaries need to be able to afford their accommodation and seNice costs either from their own means or from funders such as local authorities. The number of local authority funded residents varies from time to time and no limit is placed on the number accepted by the Society. Different styles of accommodation are offered at different rates in order to promote maximum inclusivity and access to the Society's services. In addition, some services provided by the Society are subsidised to ensure that they are widely affordable, for example when meals are provided to the residents of Cove Orchard this is done so at cost price and assistance equipment supplied free of charge. Page 3 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Objectives and activities (contlnued) b. Main activitles undertaken to further the company's purposes for the publlc benefit The Trustees have considered the guidance issued by the Charity Commission in respect of public benefrt and confirm through their activities and objectives that they adhere to this guidance. The views and opinions of our residents and their families are regularly sought about the activities that the Society undertakes. A record of these consultations is available for inspection. Achlevements and performance . Review of activities The 2024-2025 financial year marked a period of significant change for Abbeyfield Silverdale Society, with the completion of the merger with Abbeffj'eld Lfftham St Anne's and, in the post balance sheet period, further mergers and confimiation of the Society's registration with the Housing Regulator. This marks the completion of a significant part of the Societys fNe year strategy and brings with it an increased level of financial stability and viability. The Society now operates in a wider geographical area; in Lancashire on the Fylde coast and in Silverdale, in Barrow in Furness and in Leigh, providing supported housing and residential care to 75 older people, which is in addition to the Cove Orchard owner occupier independent living bungalows and apartments on the Silverdale site. The diversification of income streams and vertical integration of different levels of housing and care has mitigated some of the uncertainties associated with wider adult social care policy. The provision of a high quality service to the Societys residents and stakeholders remains central to the objectives of the trustees. The trustees and staff remain ambitious about achieving an outstanding rating from CQC at its residential care home in Silverdale and are focussed on continued improvement in standards of care. The Sociely adopts a number of ways in which to receive feedback, including direct suNeys of residents, family members and friends and the traditional comment boxes in each of its locations. Regular meetings with residents facilitates feedback on a wde range of subjects from menu planning to activities. high levels of satisfaction remain and there have been no formal complaints received through the Society's complaints procedure during the reporting period. In December 2024, the Societys planning application with Lancaster City Council was passed, thus enabling the project to build a new 10 bed supported housing block plus an extension to Cove House and replacement of run down outbuildings to move forward. The units will be for rent onty and at a social housing rent, subject to the Society being confinned as a registered social housing provider. The Society's staff continue to support residents of Cove Orchard independent living as and when requested but is limited to pastoral, non-regulated support only. such as the provision of meals and equipment. The Society is proud to be one of the few organisations in this region to have developed housing specially designed for older people to enable them to successfully live independently into older age., many of the Cove Orchard residents are now in their nineties. Support for staff and staff wellbeing is an integral part of the ethos and culture of Abbeyfield Silverdale Society. All staff are encouraged and supported to increase the depth and breadth of their skills whether vocational or non-vocational and the trustees remain committed to The Living Wage Foundation principles in their approach to pay awards for staff. Page 4 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and perfomance (continuedl b. Fundraising The Charities Act 2011 requires Charities to make a ststement regarding fundraising activitl88. Where fundraising is carried out the amounts raised are presented in the accounts as voluntary income and include legacies and grants. c. Investment policy and perforniance The Society does not currently hold an investment portfolio in stocks, shares or other investment vehicles. Its liquid reserves are held in FSCS fully protected deposit accounts and managed by a cash management company to maximise interest. Financial review . Reserves policy The Society's reserves are made up of both cash reserves and physical assets and the Trustees have structured the reserves into designated funds in order to meet the needs of both its strategiG plans and its operational activities. The main physical asset of the Society is Cove House for which the Maintenance Fund is designated to COV8r ongoing repairs and renovations to the house to ensure it meets the needs of the residents. The remaining funds are structured to support the Society's strategic objectives and its obligations under the Cove Orchard lease. The Society's free reserves are made up of the nominal balance sheet value of its main physical assets, including Cove House plus the value of three months operating costs. The operating costs are based on the cost per day of providing residential care services. b. Flnancial review The financial year end surplus reflects the transfer of assets from Abbeyfteld Lytham St Anne's Society, following the merger on November 30th 2024. The details are reflected in the SOFA, the 8alance Sheet and ststement of Cash Flows. After taking account of the transfer of assets, the Society had a successful financial year for 2024-25 resulting in an overall surplus of £40.754 or 3 /0 on turnover. The total annual occupancy level for residential care for the year was 910/(t. slightly below the long term average of 930A. During the year, the primary source of income for the Society came from its residential care service. with housing income through rent and service charge accounting for £145,574. Trustees are always mindful of the cost of housing. whether residential care or supported living and remain committed to ensuring fees reflect value for money as well as to ensuring cost management discipline. Overall expenditure on charitable activities increased by 12%. but this included legal costs expensed in the year of £15.500 related directly to the Lytham merger. Staff costs also increased, partly due to direct cost increases but also reflecting additional posts acquired through the merger. Other costs remained stable after accounting for the impact of the additional expenditure associated with the new housing operations. The Society is an accredited Living Wage Foundation employer and implements the recommended increase in hourly rates of pay across all job functions. the Trustees are absolutely committed to reco9nising the value of staff through its commitment to the Living Wage Foundation rate. Income from residential care fees increased during the year, largely as a result of fee increases, which we kept below the national average for the sector. In addition, the Society has seen a significant improvement in receipts from interest on cash deposits as interest rates remained high during the financial year. Page 5 ABBEYFIELD SILVERDALE SOCIETY (A Company Llmlted by Guaranteè) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Financial review (continued) Capital investment in the Societys buildings continued during the financial year, including at the Lytham St Anne's properties following the merger. Residential care rooms are ￿gUlarlY updated for decoration and carpeting but more significant renovation work is only carried out following a full evaluation. Significant Capital expenditure had been carried out in the previous financial year and consequently the revenue expenditure on the fabric of Cove House was much less in 2024-2025. Capital expenditure was incurred to install IT equipment at the Lytham houses at a cost of £5.000 and an upgrade to the Cove Or¢hard fire alarm and the installation of Cer￿ at the Silverdale site at a combined cost of £14,000. Additional fees were incurred in relation to the Society's planning application and development project which are reflected in the Property under constwction figure in the Balan￿ Sheet On March 31 st 2025, the S¢xiety had net assets of £2.864 million comprising langible f￿ed assets and assets under Construction of £1,403 million and current assets of £1.460 million. During the year there was a net increase in cash, due primarily to the transfer of assets from the Abbeyffield Lytham Society. The Society's financial resources consist of cash reserves on deposit which a￿ sufficient to meet its day to day requirements. The statement of cash flows on page 17 of the financial statements details the movement in cash during the financial year. Cascade Cash Management continue to manage the Society's cash reserves. which are fully protected under the Financial Services Compensation Scheme. The trustees remain of the view that the financial protection of the Society's reserves is its highest priority and as such may forego higher interest rate opportunities in order to maintain full FSCS protection. The Societys development plans will require use of its liquid reserves within three to fwe years. which is the basis of the Societls current policy on reserves. The Society's reserves are made up of both cash reserves and physical assets," the trustees have structured the reserves into designated funds in order to meet the needs of both its strategic plans and its operational activities. The main physical assets of the Society are its properties at the Silverdale site (Cove House) and at the L￿haM site {Park Avenue and Cecil Street>. The Maintenance Fund is designated to cover ongoing ￿paIrS and renovations to the property assets to ensure they meet the needs of the residents. The remaining funds are structured to support the Societys strategic objectives and its obligations under the Cove Orchard lease. c. Golng concern The purpose of the Socievs reserves is to provide sufficient protection for the Society against changing fi'nancial circumstances and to support future business development inrtiatives to enable the Society to continue to fulfil its principal purpose. The level of general reserves as reflected in Note 17 to the financial statements is represented by tangible assets and net current assets and is considered sufficient for the Society to meet its short to medium temi expenditure obligations. The Society s cash reserves significantly OU￿e1gh ts short term and long temi Itabilities. The Trustees have a reasonable expectation that the Society has adequate resour￿5 to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going con￿rn basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. Structure. governance and management a. Constitution The company is registered as a members. limited liability company number 10845391 and was set up by Memorandum of Association on 30 June 2017. The Society is also registered with and regulated by the Charity Commission for England and Wales, registration number 1174376. Page 6 ABBEYFIELD SILVERDALE SOCIETY (A Company Llmited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Structure, governance and management (continued) b. Methods of appointment or election of Trustses The management of the company is the responsibilty of the Trustees who are elected and CO￿pted under the tems of the Articles of Association. The composition of the Board, the method of appointment of Trustees and the retirement or removal of Trustees is covered in detail in clauses 19 and 20 of the Articles of Association of the Society. c. Organlsatlonal structure and decision maklng policies All operational decision making is delegated by the Board of Trustees to the Chief Executive Officer as head of staff. Financial delegation is documented in the Society's Financial Standing Orders. The Financial Standing Orders were reviewed during the year and are being updated to reflect the changed structure of the Society. The Board of Trustees currently meets ten times per annum and receives detailed financial and operational reports from the Chief Executive Officer and the Registered Care Manager, which enables the trustees to discharge their statutory and govemance duties. d. Policies adopted for the induction and tralning of Trustees All Trustees receive documents published by the Charity Commission relating to the role of a trustee. New trustees are encouraged to inform themselves about the role and responsibility of a trustee through the extensive information availablg online and in printed forniat from Thè Charity Commission and other well established not for profit representative organisations. New trustees spend time with the Chief Executive Officer and the Registered Care Manager in order to get a detailed understanding of thè financial position and other operational issues affeding the Society. e. Pay policy for key management personnel The Remuneration committee, a sub2028 as: The provision of the highest qualty standard of care to all its users Financial sustainability Diversification of offering to include supported housing for older people The Society's twstees recognise the importance of diversifying the Societys income in order to mitigate potential fLrture financial risks and to prevent the Society becoming over reliant on income from rts residéntial care services. The merger with the Lytham St Anne's Society on November 30th 2024 and the subsequent mergers in the post balance sheet period have contributed significantly to the achievement of these principles, alongside the planning application approval. The business objective remains to re4)alance the Society's income streams more evenly be￿een residential care and supported housing, whilst remaining true to its charitable objectives. The focus for the forthcoming period is the hamionisation of business operations, policies and procedures across all sites which is expected to take 12 to 18 months. Statement of Trustees. responsibilities The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . 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 affairs of the company and of rts incoming resources and application of resources, including Trts income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. obseNe the methods and principles of the Charities SORP (FRS 102)., make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial ststements- prepare the financial statements on the going concem basis unless it is inappropriate to presume that the company will continue in business. The Trustees are responsible for keeping adequate accounting records that a￿ sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements Comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of informatlon to audftors Each of the persons who are Trustees at the time when this Trustees, Report is approved has conf1m￿d that.. so far as that Trustee is aware, there is no relevant audit infomiation of which the charitys auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit infonnation and to establish that the charivs auditors are aware of that infomiation. Page 8 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUED FOR THE YEAR ENDED 31 MARCH 2025 Audltors The auditors, Armstrong Watson Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by: Geoff Walker Chair of the Board of Trustees Date.. Page 9 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guaranteel INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY Opinion We have audited the financial statements of Abbeffjeld Silverdale Society (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 related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Th8 Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable companvs affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally A¢¢epted Accounting Practice; and have been prepared in a¢¢ordan¢e with the requirements of the Charities Act 2011. Basis for opinlon 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 Auditors, 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 United Kingdom. including the Financial Reporting Council'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 relatlng to golng concern In auditing the financial statements. we have concluded that the Twstees, use of the going concern basis of accounting in the preparation of the finanGial statements is appropriate. Based on the work we have perfonned, we have not ￿entifIed any material uncertainties relating to events or conditions that. indivrdually or collectively, may cast significant doubt on the charitabl8 companvs abilty to continue as a going concern for a period of at Feast 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. Page 10 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED) Other information The other information comprises the infornation included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other infomiation and, ex￿pt to the extent othenNise explicitly ststed 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 9ives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfonned, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Trustees, Report is inconsistent in any material respect with the financial statements., or sufficient accounting reeords have not been kept., or the financial statements are not in agreement with the accounting records and returns: or we have not retsived all the inf0m￿tiOn and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement. 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 detennine is necessary to enable the preparation of financial statements that are free from material misststement, 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 concem basis of accounting unless the Trustees either intend to liquidate the charitsble Company or to cease operations, or have no realistic alternative but to do so. Page 11 ABBEYFIELD SILVERDALE SOCIETY IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED) Auditors. responslbilities for the audit of th• financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance aboLrt whether the financial statemenls as 8 whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, Report that includes our opinion. Reasonable assurance is a high bvel of assurance, bLrt is not a guarantee that an audit conducted in accordance with ISAS (UK) will alw8ys detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individualty 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. The extent to which our procedures are Capable of deteding irregularrties, including fraud is detailed below: Our approach to identFfying 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 identÉfy or recognise non-compliance with applicable laws and regulations,. we identffied the laws and regulations applicable to the charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the not for profit 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 charity. we assessed the extent of compliance with the lay￿ and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were comrnunicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibilty to fraud, their knowledge of actual. suspected and alleged fraud, and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomed analytical procedures to identfy any unusual or unexpected relationships; tested joumal entries to identify unusual transactions- assessed whether judgements and assumptions made in detemining the accounting estimates were indicative of potential bias and investigated the rationale behind significant or unusual transactions. Page 12 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF ABBEYFIELD SILVERDALE SOCIETY (CONTINUED) In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included. but were not limited to: agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with g0veman￿. enquiring of management as to actual and potential litigation and claims," and reviewing correspondence with HMRC. relevant regulators including the Care Quality Commission, and the companvs legal advisors. The￿ are inherent limitations in our audit procedures described above. The more removed that laws and regulalions are from financial transactions. the less likely it is that we would become aware of non-compliance. Auditing stsndards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the InSp￿tIon 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 invotve deliberate concealment or Collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors, Report. Use of our report This report is made solely to the charitable companvs Trustees. as a body. in accordance with Part 4 of the Charrties (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charitable Company's Trustees those matters we are required to state to them in an Auditors, Report and for no other Purpose. To the fullest extent permitted by law. we do not accept or assume responsibilty to anyone other than the charitable company and its Trustees, as a body. for our audit v￿rk. for this report. or for the opinions we have formed. Armstrong Watson Audit Limlted Chartered Accountants and Statutory Auditors Carlisle Date.. 2 Amistrong Watson Audit Limited are eligible to act as auditors in temis of section 1212 of the Companies Act 2006. Page 13 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUND FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted funds 2025 Total funds 2025 Total funds 2024 Note Income from: Donations and legacies Charttable adivities Investments 652,455 1,315,434 45,524 652,455 1,315,434 45,524 55 1.187.922 30.148 Total income 2,013,413 2,013,413 1,218,125 Expenditur• on: Charitable activities 1,320,199 1,320,199 1,152,126 Total expendlture 1,320,199 1,320,199 1.152,126 Net movement in funds 693,214 693,214 65,999 Reconciliation of funds: Total funds brought forward Net movement in funds 2,170,508 693,214 2,170,508 693,214 2.104.509 65,999 Total funds carried forward 2,863,722 2,863,722 2.170,508 The Ststement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 18 to 36 forni part of these financial statements. Page 14 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 10845391 BALANCE SHEET AS AT 31 MARCH 2026 2025 2024 Note Fixed assets Tangible assets Property under construction 12 13 1,309.834 93,409 892,466 68,961 1,403,243 961,427 Current assets Debtors Cash at bank and in hand 14 88,312 1,483,647 74,564 1,234.292 1.571.959 1,308.856 Creditors: amounts falling due within one year 15 1111,480) (99,775) Net current assets 1,460,479 1.209,081 Total assets less current liabilities 2,863.722 2.170,508 Total net assets 2,863,722 2,170,508 Page 15 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 10845391 BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2025 2025 2024 Note Charlty funds Restricted funds Unrestricted funds 16 16 2,863,722 2,170,508 Total funds 2,863,722 2,170,508 The entty was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the entifv to obtain an audit for the year in question in accordance wtth section 476 of the Companies Act 2006. However, an audit is required in accordance with section 144 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance ￿llth the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Twstees and signed on their behalf by.. Geoff Walker Chair of the Board of Trustees The notes on pages 18 to 36 form part of these financial statements. Page 16 A88EYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Cash flows from operating activities Net cash used in operating activities 721,895 46.218 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Purchase of property under construction additions Donation of assets from merger 45,524 30,148 (35,233) {146.856) (24,448) (42,294) {458,383) Net cash used in investlng actlvltles (472,540) 1159,002) Cash flows from financing activities Net cash provbded by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 249,355 1112,784) 1,347,076 1,234,292 Cash and cash equlvalents at the end of the year 1,483,647 1,234,292 The notes on pages 18 to 36 form part of these financial statements Page 17 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General infomiation Abbeyfield Silverdale Society is a charitable company viithout share capital, incorporated in England and Wales. The registered Offi￿ is Cove House. Cove Road, Silverdale, Carnforth, Lancashire, LA5 OSG and the company number is 10845391. The Charivs principal business activity is the provision of residential care to the elderly. The presentational and functional currency of the financial statements is Pound Sterling. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effectrve 1 January 2019} and the Companies Act 2006. Abbe￿.eld Silverdale Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Company status The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liabilty in respect of the guarantee is limited to £1 per member of the company. 2.3 Going concern The Twstees have indicated that they believe that the charity is a going concern. When making this assessment. the Trustee5 have considered the financial requirements of the charty for a period beyond 12 months from the date of signing the financial statements. Net assets at the balance sheet date were £2,864k and cash reserves were £1,483k. The Trustees believe the level of liquid reserves held by the charity are sufficient to allow the charity to meet its liabilitres as they fall due and so consider the charty a going concem. Page 18 ABBEYFIELD SILVERDALE SOCIETY (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng policies (continued) 2.4 Income All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of in¢ome receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement. the probabilty of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Gompany has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable. which will generally be the expected cash amount to be distributed to the company. can be reliably measured. Donated services or facilities are recognised when the company has control over the item, any conditions associat8d with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 2.5 Expenditurg Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of dire¢t Costs and shared costs, including SUPPOrt costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that adivity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges alloc2ted on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the company. Charitable activities and Governance Costs are costs incurred on the companys operations. including support costs and ￿$ts relating to th8 governance of the company apportioned to charitable activities. All expenditure is inclusive of irrecoverable VAT. 2.6 Interest receivable Interest on funds held on deposrt is included when receivable and the amount can be measured reliably by the company,. this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Page 19 A8BEYFIELD SILVERDALE SOCIETY IA Company Llmltsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (continued) 2.7 Taxation The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains ceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the exient that such income or gains are applied exclusively to charitabEe purposes. 2.8 Tangible fixed assets and depreciation Tangibte fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially re¢ognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depr￿latIOn and any accumulated impaiment 1088es. All costs incurred to bring 8 tangible fixed asset into its intended working condttion should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful INes, Depreciation is provided on the following bases: Freehold propety ca￿ equipment Fixtures and f￿ingS Office equipment 1_110kn straight line 10-33°/o Straight line 10-330/0 Straight line 10-330/0 Straight line Where there is a refurbishment of communal areas or residents rooms which have been capitalised as freehold propety additions. depreciation is charged at more appropriate rates and over shorter time periods to reflect the periodic nature of enhancement and replacement of assets to suit the living needs of the residents. 2.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.10 Cash at bank and In hand Cash at bank and in hand includes cash and short-tenn highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 20 ABBEYFIELD SILVERDALE SOCIETY (A Company Limitsd by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARGH 2025 Accounting policie5 Icontinued) 2.11 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefrt will be required in settlement. and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.12 Financial instruments The company only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.13 Pensions The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. 2.14 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 21 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Critical accounting estimates and areas of Judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of fLrture events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The company makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions WIIS, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgement.. a) Establishing useful economic lives Establishing useful economic lives for depreciation purposes of property, plant and equipment comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and phys.ical condition of the assets concemed. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are induded in accounting policies note 2.8. Income from donations and legacies Unrestrfcted funds 2025 Total funds 202S Donations 652,455 652,455 Unrestricted funds 2024 Total funds 2024 Donations 55 55 Page 22 AB8EYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activities Unrestricted funds 2025 Total funds 2025 Provision of residential care at Cove House Independent living at Cove Orchard Independent living at Lytham 1.169,860 75,667 69.907 1,169,860 75,667 69.907 Total 2026 1.315,434 1.315.434 Unrestricted funds 2024 Total funds 2024 Provision of residential care at Cove House Independent livin9 at Cove Orchard Other income from AbbeyField Societies 1,138,507 27,373 22,042 1,138,507 27,373 22,042 Total 2024 1,187,922 1,187,922 Investment income Unrestricted funds 2025 Totsl funds 2025 Investment income 45,524 45,524 Unrestricted funds 2024 Total funds 2024 Investment income 30,148 30,148 Page 23 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure on charitable activities Summary by fund type Unrestrfcted funds 2025 Total 2025 Provision of residential care at Cove House Independent living at Cove Orchard 1,252,181 68,018 1,252,181 68.018 Total 2026 1,320,199 1,320,199 Unrestricted funds 2024 Total 2024 Provision of residential care at Cove House Independent living at Cove Orchard 1,090,840 61,286 1,090,840 61.286 Total 2024 1,152,126 1.152,126 Summary by expenditure type Staff costs Depreciation Other costs 2025 2025 2025 Total 2025 Provision of residential care at Cove House Independent living at Cove Orchard 827,715 32,718 66,531 3,987 357,935 31,313 1,252,181 68.018 860.433 70,518 389,248 1.320,199 staff costs Depreciation Other costs 2024 2024 2024 Total 2024 Provision of residential care at Cove House Independent living at Cove Orchard 731,355 18,480 62,761 3,887 296,724 38,919 1,090.840 61,286 749,835 66,648 335,643 1,152,126 Page 24 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities Activities undertaken directly 2025 Support Total funds 2025 2025 Provision of residential care at Cove House Independenl living at Cove Orchard 1,046,145 48,172 208,036 19.846 1,252.181 68.018 1,094,317 225,882 1.320,199 Activities undertaken d1￿CtlY 2024 Support costs 2024 Totsl funds 2024 Provision of residentlal care at Cove House Independent living at Cove Orchard 929,573 27.720 161,267 33,566 1,090,840 61.286 957,293 194.833 1,152,126 Page 25 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysls of expenditure by actlvltles (¢ontlnued} Analysls of direct costs Provision of Independent residential Ilving at care at Covo Cove House Orchard 2025 2025 Total funds 2025 staff costs Depreciation Hotel, travel and subsisten Printing and stationery Advertising and promotion Legal and professional, regulation costs (incl. DBS) Bank charges Rates and water L￿ht and heat Cleaning Repair and maintenance Residents. comforts & v￿lfare Food Costs Sundry expenses 696,940 66.531 9.623 2.735 6,506 26.794 1,552 16,048 39,154 10,994 82.137 3,427 71,835 11,869 18,850 3,987 715,790 70,518 9,623 2,735 6,506 26,794 1,552 19,321 45.314 10,994 97.364 3.427 72.078 12,301 3,273 6,160 15,227 243 432 Total 202S 1,046,145 48,172 1,094,317 Page 26 ABBEYFIELD SILVERDALE SOCIETY IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities (continued) Analysis of dlrect costs (contlnued) As restated As restated Provision of Independent residential living at As restated care at Cove Cove Total House Orchard funds 2024 2024 2024 Staff costs Depreciation Hotsls, travel and subsistence Printing and stationery Advertising and promotion Legal and professional, regulation costs (incl. DBS) Bank charges Rates and water Light and heat Cl¢aning Repair and maintenance Residents, comforts & welfare Food costs Sundry expenses 625,798 62,761 6,353 2,684 5,862 17,553 1,840 5,461 31,867 7,533 77,407 5,780 61,264 17,410 358 3,887 626,156 66,648 6.353 2,684 5,862 17,553 1,840 12,417 34,807 8,853 89,060 5,780 61,546 17,734 6,956 2,940 1,320 11,653 282 324 Totsl 2024 as r8Stated 929,573 27,720 957,293 The prior year comparative figures have been restated to correct an apportionment of direct and support costs. This restatement does not affect the overall total expenditure incurred in the year. Analysis of support costs Provision of Independ't residential living at care at Cove Cove House Orchard 2025 2025 Total funds 2025 staff costs Telephone and fax IT sofhvare. licenses Legal and professional, regulation costs (incl. DBS) Auditors, remuneration Insurance 130,775 3,900 21,344 19,596 16.946 13,475 13.868 396 144.643 4,296 21,344 19,896 19.106 16.597 300 2.160 3,122 Total 2025 206.036 19,846 225,882 Page 27 ABBEYFIELD SILVERDALE socIErY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure by activities (continued) Analysis of support costs (continued) As restated As restated Provision of Independent residential living at As restated care at Cove Cove Total House OKhard funds 2024 2024 2024 Staff Costs Telephone and fax Computer costs Legal and professional, regulation costs (incl. DBS} Auditors, remuneration Insurance 105.557 3,210 23,656 3,901 14,210 10,733 18,122 396 123,679 3,606 23,656 14,201 16,010 13,681 10,300 1,800 2,948 Total 2024 as r8Stated 161,267 33,566 194,833 The prior year comparative figures have been restated to correct an apportionment of direct and support costs. This restatement does not affect the overall total expenditure incurred in the year. Auditors, remuneration 2025 2024 Fees payable to the companys auditor for the audit of the companrfs annual accounts All assurance services not included above 14,864 14.510 10. Staff costs 2025 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 783.868 61,041 15.524 690,690 48,706 12,440 860,433 749,836 Included within the value of totsl stsff costs are agency costs in respect of the catering function and dedicated care agency personnel. Page 28 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 10. Staff costs (continued) The average number of persons employed by the company durin9 the year was as follows: 2025 2024 No. Management and administration Catering and housekeeping Care staff 13 14 29 27 The average headcount expressed as full-time equivalents was 22. 202S No. 2024 No. Management and administration Catering and housekeeping Care staff 10 10 22 21 The number of employees whose employee benefits (excluding employer pension costs) ex￿eded £60,000 was: 2025 2024 In the band £60.001- £70,000 Key management personnel comprise the senior managers of the Society. Their aggregate remuneration was £127,026 {2024- £126,251). 11. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2024 - £NIL). During the year ended 31 March 2025, expenses totaling £180 were reimbursed or paid directly to one Trustee <2024 - £105). Page 29 ABBEYFIELD SILVERDALE SOCIETY (A Company Llmlted by Guarante8) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. Tangible fixed assets Freehold property Plant and Motor Fixtures and machinery vehicles fittlngs Office equipment Total Cost or valuation At 1 April 2024 Additions Transfer from other societies Disposals 1,173,873 19,918 124.725 10.189 9,326 64,220 84,582 5,126 1.456,726 35,233 719,808 322,993 (5,730) 1,042,801 (5,730) At 31 March 2025 1,913,599 134.914 9,326 381,483 89,708 2,529,030 Depreciatlon At 1 April 2024 Charge for the year Transfer from other societies 368,637 89.963 1,360 35,948 68,352 564,260 53,364 9,467 2,332 989 4.366 70,518 285,523 298,895 584,418 At 31 March 2025 707,524 99,430 3,692 335,832 72,718 1,219,196 Net book value At 31 March 2025 1,206,075 35,484 5,634 45,651 16,990 1,309.834 At 31 March 2024 805,236 34,762 7,966 28.272 16,230 892,466 The cost of land and buildings is stated net of the Social Enterprise Investment Fund grant received in January 2012. The value of this grant was £149,961 and was spent entirely on improvements to residential accommodation at Cove House. The Trustees are aware that the value of the freehold property is in excess of the cost included within the financial statements however have decided not to adopt a policy of revaluation of its properties. On 1 st December 2024 the freehold property and other assets from Abbeffield Lytham St Annes Society were transferred at their net book value in to Abbeyfield Silverdale Society as part of a merger. Page 30 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARGH 2025 13. Property under construction Property under construction At 1 April 2024 Additions 68,961 24,448 At 31 March 2025 93,409 This amount relates to the Cove House refurbishment. As this work was still in progress at the year end, it was not capitalised into fixed assets. 14. Debtors 2025 2024 Due wlthln one year Trade debtors other debtors Prepayments and accrued incorne 19,242 15,294 53.776 32,263 16,440 25,861 88.312 74,564 15. Creditors: Amounts falling due within one year 2025 2024 Trade creditors Other taxation and social securty Other creditors Accruals and deferred income 28,175 15,462 39,370 28,473 17,060 12,134 42,179 28,402 111,480 99,775 Page 31 ABBEYFIELD SILVERDALE SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. Statement of funds Statemant of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers Inlout Income Expendlture Unrestricted funds Designated funds Cove Orchard Sinking Fund Future Projects Fund Maintenance Fund 13,177 1,024,429 100,000 6,000 8.216 19,177 1.032.64S 100,000 (200,318) 200,318 1.137,606 14,216 (200.318) 200,318 1,151,822 General funds General Funds- all funds 1.032,902 1.999.197 (1.119,881) (200,318) 1.711.900 Totsl Unrestrlcted funds 2.170,508 2,013,413 (1,320,199) 2,863,722 Page 32 ABBEYFIELD SILVERDALE SOCIETY IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARGH 2025 16. Statement of funds {continued) Statement of funds - prior year Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Unrestricted funds Designated funds Cove Orch8rd Sinking Fund Future Projects Fund Maintenance Fund 13,442 1.020,000 100.000 1,500 4,429 (1,765) 13,177 1,024,429 100,000 (179,110) 179,110 1,133,442 5,929 (179,110) 177.345 1,137,606 General funds General Funds - all funds 971,067 1.212,196 (973,016) (177,345) 1,032.902 Totsl Unrestrictsd funds 2,104,509 1,218,125 (1,152,126) 2.170.508 17. Summary offunds Summary of funds - Gurrent year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Designated funds General funds 1,137,606 1,032.902 14.216 (200,318) 1,999.197 (1,119.881) 200,318 1,151,822 (200,318) 1.711,900 2,170,$08 2,013.413 (1,320.199> 2.863,722 Page 33 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Summary of funds {continued) Summary of funds - prior year Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Designated funds General funds 1,133,442 971.067 5,929 1,212,196 (179,110) 177.345 (973,016) (177.345) 1,137,61 1,032,902 2,104.509 1,218,125 {1.152,126) 2,170,508 Unrestrfctsd funds General funds are the 'free reserves, after allowing for all designated funds. Designated funds Residents, fund receives income from fundraising events and makes expenditure on activities for thé direct benefit of the residents of Cove House. Cove Orchard sinking fund - The purpose of this fund is to build up a reserve to cover signrfi¢ant expenditure relating to the external fabric of the Cove Orchard properties. Income is collected from every resident on an annual basis through the estate service charge as laid out in the lease agreement. The Future Projects fund designates reserves identffi￿d for the development of services to be provided in the fvrture by the Society. in accordan￿ Wbth its objects and Purposes. These funds may be used to support capital or revenue investment in line with the strategic plan developed by the Societys Trustees and officers. The Maintenance Fund has been designated by the Societys Trustees to address some of the legacy maintenance issues associated with the upkeep of Cove House residential care home. Page 34 ABBEYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestrlcted funds 2025 Total funds 2025 Tangible fixed a8sets Assets under Construction Current assets Creditors due within one year 1,309,834 93,409 1.571,959 (111,480) 1,309,834 93A09 1.571,959 {111.480) Total 2,863,722 2,863,722 Analysis of net assets between funds - prior year Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Assets under Construction Current assets Creditors due within one year 892,466 68.961 1,308,856 (99,775) 892,466 68,961 1,308,856 (99.775) Total 2,170.508 2,170,508 19. Reconciliation of net movement in funds to net cash flow from operatlng activities 2025 2024 Net income for the year (as per Statement of Financial Activities) 693,214 65,999 Adjustments for: Depreciation charges Dividends, interests and rents from investments Loss on the sale of fixed assets Increase in debtors Increasel(decrease) in creditors 70.518 {45,524) 5.730 (13,748) 11,705 66.648 (30.148} (34,461) (21,820) Net cash provided by operating activities 721,895 46.218 Page 35 A88EYFIELD SILVERDALE SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. Analysis of cash and cash equivalents 2025 2024 Cash in hand 1,483,647 1,234,292 Total cash and cash equivalents 1,483,647 1,234,292 21. Analysis of changes in net debt At 1 April 2024 Cash flows At 31 March 2025 Cash at bank and in hand 1.234.292 249,355 1,483.647 1,234.292 249,355 1.483,647 22. Penslon commltments The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £14,796 (2024 - £12,535). Contributions totaling £9,157 (2024 - £6,421) wére payable to the fund at the balance sheet date and are included in creditors. 23. Related party transactions Dr June Greenwell and her husband are residents of Cove Orchard and pay the standard service fee to the Society. Controlling party The ultimate controlling paty for all the financial affairs of the Society, as laid out in the Society's Articles of Association is the Executive Committee of the Board of Trustees. Page 36