Company reg15tered number: l)0736150 Charity number: 216779 Re8ulator of Social Houslng reglstered number H0375 ABBEYFIELD SOUTH DOWNS LIMITED ANNUAL REPORT AND FINANaAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
ABBEYFIELD SOUTH DOWNS LIMITED CONTENTS The Board. Executlve Officers, and Advisers Report of the Board ofTrustees Independent auditors, report 13 Statement of comprehensive income 18 Statement of changes in reserve5 19 Balance sheet 20 Statement of cash flows 21 Note5 to the finan¢lJl statements 22
ABBEYFIELD SOUTH DOWNS LIMITED THE BOARD, EXECUTIVE OFFICERS, ADVISERS The Board as at the date of approval of thls Annual Report Mr l Thoma5 Ichairmanl Bsc IHonsl CEng MRICS MIStructE MCIOB (Appointed as Trustee 16" October 20231 Mr D Byrne FCII Mr M Paris MBE MCIOB Miss J Soren50n BA IHonsl PGDipM Chartered Marketer Mr J fimbs FCMI Mr P Anderson LLBIHonsl MBA Dr I Conlan lappointed 29 lune 20231 Mr N Taylor (appointed 15" 0¢ber 20241 Note: all Board members are also trwtee5 rfthe rharltv The fOlk>Wi was also a Board member durlng part of the year covered bythls Annual Report MT R Leon (resigned 26 July 20231 Mr W Rendall ACIS MA Oxon Iie5i8ned 26 July 20231 Executfve Oflkers as at the date of Ms N Mos5 (General Managerl approval of this Annual Report Mrs W Barrow IFinance Mènagèrl Company secretary MT P Anderson LL&IHonsl MBA Reglstered office and prlbxlpal addtess Holdenhur5t Mill Road Heathfield East Sussex TN21 OGG Independent aud5tors Lindeyer Fran¢is Fer8uson Llmlted Chartered A¢ountants ststutory Auditor5 North House 198 High Street Tonbridge Kent TN9 IBE Bankers Bardays Bank plc 63167 Termlnus Road Eèstbourne East Sussex BN213NE Legal ststus Reglstered company Ilmlted by guarantee No. 00736150 e81stered wlth the Regulator of Sodal Housln8 No. H0375 Registered with the Charity Commi59on No. 216779 Page 1
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The trusteès (who arè also directors of the charity for the purposes of the Companies Act 20061 prèsent their annual report togethèr with the audlted financial statements of Abbeyfield South Downs Limited for the year ended 31 March 2024. Objertives and activities The Charity's principal objective is to continue to provide comfortable houslng In a safe envlronment complernented by eood nutrition and companionship for older people. We do this through a dèdicated and wèll-trained workforce complemented by a committed and well- motivated group of volunteers. As of 31 March 2024, we operated in the following areas.. Noof social sheltered housing units Noof affordable sheltered Nool Changes S(e 31 March 2023 non-sedal hou5inB unl h¢Sing unlts Eastbournè Brlghton & Hove 16 16 None None Heathfield None Tunbridge Wells Alfriston Worthing 14 None None New from Worthing rnerger io In achieving it5 objective5, the Charity aim5 to cieate 4 surplus of iome over expenditure which is sufficient to maintain the properties and services to a high standard. The Charity's ongoing aim is to ensure that these standards are maintained and improved wherever possible, and that the Charity adheres to all current legislation Eovernin8 the 5eryices it offer5. When reviewing th Charity's aim5 and obpèctives. and planning its activities, the Tru5tee5 have due re8ard to the Charity Commission's publi¢ benefit guidance, includlng its guidance on fee<har8in& and that the Charity complies with all current le8151ation. P8g& 2
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Achlevements and performance The year represented our flrsl period with Holdenhurst at normal operational occupanry levels. It was a fantastic effort by everyone in the operational team to 8et Holdenhurst to full capacity so quickly. The previou5years had been dominated by thedevèlopmèntandthe complexitie5 involved induding the pandemit and thè maln contractor going into liquidation. It was a good feeling to be at the beginning of a normal year and It was time to focus on core 0ratIonal matters. The Board acknowledged at a strategy review meeting early in the calendar year, that the development had been a hugè dIStraOn in many ways, and it was time to look at our management struclure and take ac¢c)unt of succession planning for the future. The 5ucce55 of the development in terms of our strate¥y reinforced the Boarifs commitMÈnt to replace our older stock of housing with new modern services 1Ske Hoklenhurst. As previousty, it would also keep e$tIng older unlts open while they were vlable and until such time a5 they could be replaced with new housing. It Wa5 also set as a strategic direction to workwith otherAbbeyfield Societles and indeed other similar or8ani5ations outslde of the Abbeyfield movement. This was mainly tilggered by the restructurin8 of Abbeyfield nationally and we, as a larger Abbeyfield or8ani5ation, considerèd wè should lend our support and reSoUrS to smaller Abbeyfield organisations. As a result of distusslons with the Abbeyfield WorthlnE Soclety, they asked us to take over their assets and operate them as Abbeyfield South Downs. houses. A deed of transfer was completed as of 31" October 20Z3 and Seascapes and Beachsidè were added to our operating portfollo. The transltion period of absorbing new services is always a thallenge both financially and in terms of resource. Thi5 was achieved durSng the year thanks to hard work by our operational team. The opportunity of having an operating presente in Worthing was considered a massive positive for the Board. Itwas seen as a very sustainable location and worthy of investment. The Board decided. based on evideNce prèsented, that investment in one Wtsrthing property, Beachside was the best way forward to maintain the operatlonal presence in Worthing and to review the other slle, Seascapes, for Potential redevelopment in ihe nexi financial year. In terms restructuring, the future retirement plarh5 of our CEO were a keyfotus and an opportunity to look at our management structure post the Holdenhurst development period. The result was dècision to èxpand our housing management team with three new p05ts, all operational people. with two housing managers and one finance per50n. Our Finan¢e Manager was also a key part of the transition and agreed to absorb more dutie5. Key tL) the process was a promolion for our Operation5 Manager to General Mana8er and thus become our senior staff member. The plan was to phase in the transition from the new financial year, with our CEO In post for a transition period. During this phase the CEO would haftd over day to day running of the charlty while stayin8 in post to asslst the transition and take special responsibility for the Worthing houses. The Board acknowledges the hard work and flexibility of all those involved to achieve our 5trategit goal. Page 3
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH2024 Our small, sheltered houses have maintained 8ood occupanry levels. with the average ocojpancy being approximately 89% over the year for the historic South Dtrwns Houses. The Worthing propertles were only 50% o¢cupled in November 2023 and thu5 presented a challenge but a150 an opportunity forthe fvture. The early signs at the end of the year were posltive for the house which continued to operate as octupancy was starting to have a more posltive outlook. Initial thoughts about Seascapes were pushing us toward5 a fomial review of the sitè for redevelopment. In providing a safe envlronment, continued effort has been made to meet the evolving requirement5 of health and safety and fire regulations. Support Is offered to residenis by directing them to services appropriate lo their needs. Every effort is made to provide nutritious. home- cooked meals for the residents to enjoy and to involve them in aspects of the day-to4ay managemènt of thelr homes. Thechaiity is supported by its willingstaff team andvolunteers to ensufe our services offer a happy and well-run Ènvironment. Thè Charity values Its staff highly and appreciates those who continue to show commitment and dedicatlon to the organisation and its resldents. We consider ongoing coll3boralion between paid staff and volunteers essential to thecharity's future sUC$S. Following the cost-of-living cri515, high inflation, and increased energy Costs, the Charity remalns committed to paying Its staff the voluntary real Living Wage, as the Real Living Wa8e Foundation proposed. The Charlty has continued to Use targeted soclal medla-based marketing to Invite enquirie5 and convey a positive message. Thls approach has proved to be very effective in helpin8 maintain good occupancy levels. Our marketin8 team ha5 become adept at focussing the effort on the houses needin8 ihe most support. Plan5 for the future We will be monitoring the bedding in of the rnanagement restruaure. In so dolng the Board recognised thal this must be a priority and 5trate8ic rnatters such a5 a new develi)pment may have to take a back seat for a short while. In terms of the Board, succession planning again will be an ongoingtheme. Some restructuring was planned. In the year we lost two Board Members who stood down and gained two. Bill Rendall had been invofved with Abbeyfield for a number of years and the Board are very grateful for hi5 contrlbutlon. HIS counsel wlll be m155ed. Our Chalr David Bryne, while wanting to remain as a Trustee, also considered it would Suit him to step down as Chair. lan Thomas who recently joined the Boardvolunteeredio be considered forthe post subjecttothe SLFPPOrt of the Board. The Board were delighted also to inwte Nolan Taylor to become a Trustee after a perlod of leave In the new financial year and after hisemployment was completed. Subjertio è review of Circumstan nearer the time. Nolan Indicated hls willlngness to join the Board. Pe4
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Our comrnitment for ihe year ahead: Support the operational team to successfully deliver the restructure in management. Review investment in our older housing Stock and undertakè viabillty assessments which would embrace general principles of the quality of the accommodation as well as financial mea5ure5 to gain an overall assessment of future market demands as well as the business viabllity. Start thinklng about a new development and review the Seascapes Worthing site if resources allowed In terms of the management restrutture and financial retums. Review investment stratebry. Implement the Board Changes dlscvssed durlng the year. Flnanclal revSew The cost-of-llving cr15is from the prevlous year continues still to influence our day-to-day life, In particular interest rate5 and ovr loan repayments. Belng posltive the last rise was mid-year and the signs coming out of the year were rnore stablè and early talk of base rate reductions. The legacy of poor construction left from the liquidation of the main contractor for Holdenhulst ¢ontinved to generate management challenges and additional Spend through the year. However, the problems were all known ones, and we seemed to not be facing any new challen8es. Absorbing two servi5 which were making a kiss was a huge challenge. However, the assets transferred by the Abbeyfield Worthing Society made the year Into one of abundant surplus. But underlying ihiswas a strong performance by our original South Downs houses. If you drill down Into Ihe figures for these properties, we were on budget in tem)s of EBITDA, Income and Expenditure and met loan covenants. A tremendous effort by our staff team across the organisation. Financial Summary- South Downs Housès IExcludinB Worthingl.. Core incorne of £1,857k against a budget of £1.824k Operatlng Expendlture of £1,270k against a budget of £1,289k EBITDA of £587k against a budget projection of £535k The effert of the Worthing Houses was a loss which reduced the above EBITDA by £74k. However. the overall surplus as a result of the Worthing merger was £2,253,758. In anothèi year of unprecedented change for the Charity and financial uncèrtainty for the country we have emerBed in good shape to navigate the future. Page 5
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 ReseNe$ pollci It Is the policy of the Charity that unrestricted cash funds whl¢h have not been ¢Je5ignated for specific use should be maintained at a level equivalent to at least three monih's cash oper3tinR expenditure. The Board tonsiders that rèsetves at this 5evel will ensure that. in the event of a significant drop in incomÈ, the Charity will be able to continue its current activities while consideration 15 &'ven to ways in which additlonal funds may be raised or alternative options explored. For the financial year 24125 a review of opeiating reserve will be undertaken. In addition to the normal reserves pollcy, the Board ha5 Set aside a further sum of £450.c as a target reserve for defects work whlch may be required for Holdenhurst. Our overall operating reSee was therefore set at £825,OCQ. This will be reviewed durine 2024125.11 was also tonsldered to be prudentto condutt a further rèvièw of a treasury and investment policywith a viewto gainln8 better return on cash fijnds and lookSng at the investments transferred from the Worthin8 meTger. Rtsk mana8Èment The Board has a Risk Committee compri5in8 members from the Board and management and risk management is a standing agenda item for consideration ai quarterly Board meetings. Asubsidiary risk. The impact of Increaslng energy prices and inteTest rates are currently under review by the committee. The key risk5 to which the Charity is exposed, and their mitigations are noted below= Page 6
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Rlsk Strateglc Mltl atlon The Charity operates In a complex, fluid market dependent on numerous extèrnal fattors, including reBulaiion, competition. ¢ustomer expectations and requiremenis and the economic environment. The Charity adopted a 10-year strategic plan 2016-2026 which was prepared based on sector research, analysis of changes in the ChaTItVs defined area of operation and the relevant experience of the trustees and management team, particularly knowledge of The Abbeyfield Society and its strategic plan. The Charity is currently preparin8 an update to the Strategic Plan covering 2023- 2033 for consideration and adoption by the Board. FinancSal vlability Operations contlnue to generate sufficieni fynds to provide high standard seNlces and maintenance of the houses. The Board age$ an annual financlal budget on a timely basis and receives quarterly reports to monltor progress agalnst eypecthtlons. All budget planning and major capital expenditure is subject to approval by the Board. Thè Sènior Mana8ement Team receNes monlhlv operat50ns income and expènditure reports for revlew wlth the house staff. The Chartty strives to maintain high resldential occupancy levels by sustainlng lo¢al awareness as to the benefits which the Charhty has to offer those in need, in the communities we servp. Ocrupanry levels have been adopted as the primary KPI and as such are regularly reported to management and the Board. The Boaid has a Facility Agreement (FAI with Charity Bank and BIB Society Capital to fundthe development and provide for residual debt following completion. This was Secured following exhaustive modelling to G2060 bv the Charit and its advisers. the results of Page 7
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 which were made available to the Board. Performance against the covenants within the FA and any later deeds of variation are monitored uarterl intemall and externall Reputation The Charity's reputation may be impacted bv inadequatesafeguarding of residents, a fall in service standards and deteriorating accommodation. Services are Continual reviewed and monitored by the Senior Management Team with 5UPPOrt and regulaT Scrutiny by Board members. Operating Polioe5 are devÈloped, logged and implemented a5 required. Policies for resident5, including a clear complaints procedure, are in place for use by residents. The Btsard has adopted a tlèar policy and process to safeguard all residents and staff. Mernber5 Qf the Board are actively ensaged with The Abbeyfield Society, to which Abbeield South Downs is affiliated, and contribute to developments at a national level. The Board ¢ommissioned an Independent maintènance survey of all houses and has adopted a IOV planned rnaintenan¢e programme to ensure compliance with ccepted standards. A reviewlupdate of the survey is currèntly under consideration. People Thè succèss of the Charity is dependent on its staff and volunteers. The welfare of the staff and residents 15 of ntral importance to successful operatlons. Thè Btsard support the m3naBement team to ensure appropriate policies and procedure5 are in place to protert the health and safety of staff and resldents al all tlrnes. Thè Charity is tommittèd to boing both a knving Wage and equal opportunities employei. The Board and management team must have an appropriate mix of skills to ovèrsee existing operations and future plans. The Board regulaily assesses Its own composition and diversity to ensure an adequate mix of skills. Experience is present to direct the Charity and provide 5ub5tantive support to the management team. Pag8 8
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Value for Monev Value for Money IVFMI is about bèlng effective in how we plan. manage and operate the Charity. It requtres making the best use ol the resources available to us to provide quality home5 to improve the quality of life of our residents, togethèr with high quality servlces and support. The Regulator forSo¢ial Housing IRSHI issued a new Valve for Money Standard in April 2017 and a Technical Note in Aprll 2018. Thesè identlfled 7 metTiCS which soaal housing txovide15 are expeLted to report iheir perf0rrnan agalnsl In the annual rep)rt. The latter document acknowledge5 that the metrics will not nece55arily be appropriate for all providers and any influencing factors should be explained inthe commentary. MÈtrlc Reinvestment % New su delivered Gearing % EBITDA MRI interest cover % Headline social cost er unlt Operatln8 margin % Return on capital employed 2023124 0.56% NIA 15.81% 43% £16,9J9 -6.9% -0.75% 2022123 2.8% 45.3% 16.09% 497% £13.676 6.3% OS4% The basis forthe metrics is usfollows.. Reinvestment %-theinve5tment rn propertres {existtng stockond newsupplyjas o percentoge OJ the vulue of tott71propertie5 held. New 5uppfy delivered (50ciuI hou5ino unffts) % - the number of new social housino unirs delivered os (J proportion of total so¢iolhouslng unltsowned. Get7ring%- net debti75 a percentoge of the volue of totulproperties held. EBITDA MRI Interest cover %- the levelof surplus generotedcompored to the inrerestpoyoble. HeGdlrne sociolhousing costperunit-sociolhousin9 costs {o5definedbythe regulotor) divlded by totol units ownedond/ormanoged. 6A. Opeftiting margin (sociol housing lettin onlyj %- operotifTrg surplus/(deficitJfrom sociol housing lertings divided by turnoverfrom 50cioI housing lettings. 68. Operating margin lovenillJ% overoll operotin9 surplus/ldefKitJ divided ty ovenill turnover. Return on cupitalemployed IROCEJ %- wmpO5 the overallopeniting surplus to tot(71 u55ets less current liabilitie5. A. Excludes Properties under development. 8. All interest payable relate5 to housing under development and Is being capitalised until the development is open and generatin8 income. C. This metric does not apply as the Charity had no 5hort- or long-tèmi borrowings durir8 the vear under revlew. Page 9
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Sciutiny of VFM Is provideil by the Boaid through the receipt of management accounts with KP15 tonsiderèd appropriate for thè rnanaÉemènt of thè Charrty and a report from the Management Committee which meets weekly to oversee operations. In particular, the Board are aware thai the headline social cost per unit melric as ported at 5 above is high for the sertor. This is due to the Charity following the Abberfield Servi model which incorporates at its heart the provision of nutritlous meals for resldents. The cost of preparing and providing food are not factors highlighted by the RegulatorforSo¢ial HousinB in Its analysis of additional costswhich may influence thè estalation of unit cost. G(Y4emance The Board of Trustees. who are also the directors for the purpose of company law, and who served duringthe year are set out on page l. Each member is recrulted for his/her relevant experience and skills to provide substantive support to the mana8ement team. The Charity 15 managed by the dirèctors in atcordants with the company's Memorandum and Articles of Association dated 25 July 2016. Non• tsf thp B03rd of TrustpÈs has any bene.ficial Intprest In the company. All mpmbers Df the Board of Trustees are members of the company. Appointmeftts to the Board of Trustees are proposed and ratrfied by the Board at their regular meetings. Co-option is rmItted prior to ratification. They are recruited by invitation and by advertisement. Those with regular access to resldents are subject to D8S (Dlsclosure and Barring Service) checks plus two other references. New trustees a gwen an inducilon In accordancewith thè Charity's Trustee IrKluction Process which not only covers governance and operational issue5 but also a briefing on thè Abbèyfield ethos. Trustees are given a5$ to the comprehensive Director5, Information folder in the Charity'5 shared cloud storage. Trustee training is available on requesi and where a subject of mutual interest is identified, for example GDPR, Board training is provided. The Board continues to develop an approprlate method for Appraisal of Board Skrlls and Oiversity. The Board of Trustees meets Quarterly to review perfoimanre and en5UTe that the Charity operations and dÈvelopmÈnt are bÈin8 rnanagèd in atcordance with established policies. The Board approves any changes in opÈrating polFry when deemed necessary and Is responsible for approving and monitoring all major expenditure. It is an objectNe of the 8oard that staff should feel valued and be appropriately rewarded_ To further this objective the Society has adopted the voluntary 'living wage,. Overall pay awards arè approved by the Board as part of the annual budget Setting process_ The salarie5 of senior staff are considered by an ad-hoc Remuneration Committee which is chaired by the Chairman. The committeè considers.. P¢ 10
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The overall performance of the management team and the financièl position of the Society The bench marking of salarles against slmllar roles in comparable charilies and or8anisation5 operating inthesector and the same geo8raphical arèa The salarie5 paid within the Abbeyfleld movement for tomparable roles. Recommending discretionary bonus awards. aoUh no formal method or basis for performance related pay has been ad¢pied. The recommendations from the Remuneration Committee are approved by Board. The Charity is a member of Abbeyfield England IFormerly T1 Abbeyfield Society ITAS}l. The benefits offered to member societles irKlude providing relevant information on national developments in the charitable housing sector and professional semces in support of the affiliates. The Charity pays an annual feeto Abbeyfield England. The Charity complies with the Governance and Financlal Vlabillty Standard IApril 20151 issued by the Regulator for Social Houslng and princlpal recommendations of the 2014f N*ional Housing Federation Code of Governance. The Charity a150 adheres to the principles of the Code of Governance for Smaller Charities. Statement of Board of trustees, re5ponsibilitie5 The trustees are responsiblè for preparing the tru5tees' report and the finanaal ststements in accordance with applicable law and Unlted Klngdorn Atcounting Standards (United Kingdom Generally Accepted Atcounting Practice). Cornpany law and socia5 housirg le8islation requires the trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unle55 they are sat15fied that they give a true and fair vlew of the state of affalrs of the charitable company and of the incoming resources and application of resources, including the income and expendlture, of the charltable company for that pefiod. In prepariftB these financial statements, theTrustees are required to.. select suitable accountin8 policies and then apply them con515tently. make judgments and accounting estimates that are re450nable and prudent. prepare the financial statements on the 8oin8 concern basis unless it is inappropriate to presume that thecharitable company will continue in operation. The tru5tee5 are responsible for keeping adequate accounting record5 that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any tim8 the financial position of the charitable company and enable Ihem to ensure that the financial statements complywith the Companies Act 2006. the Housing and Regeneration Act 2008 and the Page 11
ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Accountlng Direclion for reglstered provlders of sockil trous1 In England 2019. They are also responsible lorsafeguardiivdthe assets of the th¥itable company and herKe for taklryq reasonable steps forthe preventlon and dete¢tlon of fraud aThJ other irregularltles. ststement of disdowre to audltor Each of the PersOr who arè trustees at the tlme when th15 trustees. report Is approved has confirmed that: so tsr asthe trustees are aware.there is no relevant audlt Information of whlchthe cornpany's auditor5 are unaware, and thè tru5tee5 have taken all reHsonablesteps thal ought to have been taken as trustees In order to be aware of arry inforrnation needed by company's auditors In connectlon wlth preparin8 thelr report and to establish that the companvs auditors are aware ol that infomiation. Audltor The audltors. Undeyer Francis Fergu50n Lwnlted. are detrned to have been re-appolnted in accordano wlth sectlon 487121 of thè Companles Act 2006. In preparing thls report thE Trustees ha taken &Jvantage of the small ¢ompanles' exemptlons provlded by sèttion 415A of the Companiès Act 2006. Thls report was approved by the aoard of TNstee5 on ..................... October 2024 and signed on their behalf by.. Mr l A Thomas clImIn of truitees Page12
ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDtroRS' REPORT TO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED Opinion We have audited the financial statements of Abbeyfield South Oowns Limited Ithe 'charitable companVI for the year ended 31 March 2024 which comprise the statement of comprehenslve income, the statement of change5 in reserves, the balance sheet, the staternent of cash flows and notesto the financial staternent5, including a summary of si8nifi¢ant accountlng policies. The financial reporting framework that has been applied in their preparation is applicable IHW and United Kingdom Accounting Standards. includSn8 Financial Reporting Standard 102 The Financial Reportin8 Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accountln8 PraLticel. In our opinion the financial statements.. Eive a true and fair view of the state of the charitable compan$ affair5 as at 31 March 2024, and of its incoming resour5 and application of re50urce5, includirE its income and expenditure, for the year then ended,. have been property prepared in accordancewith United Kingdom GenerallyActepted Accountlng Pract5.. and have been prepared in accordance with the requirements of the Cornpanie5 Act 2006, the Housing and Re8eneration Act 2C4)8 and the Accounting Dirertion for private re8lStered providers of social housin8 in England 2019. Basls for oplnSon We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our responslbilitie5 under those standards are further deScrid in the Audltorfs responsibilities for the audit of the financlal statements sertion of our report. We are independent of the charitable company In accordance with the ethical requirements that are Televanl to our Budit of the financial statements Iri the UK, including the FRCS Ethlcal Standard, and we have fulfilled our other ethicol responsibilitie5 in accordancè with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. ConcIlonS relatln8 togokng concern In auditing the financial statement5, we have ¢on¢luded that the trustees. use of the going concern basis of accountin8 in the preparatitsn of thÈ financial statÈmÈnts is appropriate. Based on the work we have performed, we have not identified any mateTial uncert4intiès relating to events or wnditions ihaL irKlividually or collectively. may castsignificant doubt on the charity's ability to continue as a goine concern for a perlod of at least e1ve months from when the financial statements are authorised for Issue. Our responsibilities and the responsibilitie5 ofthe trustees with respectto going cot)cern are described in the relevant sections of this report. Page 13
ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED Other Informatlon The board is responsiblefor the other information. The other information comprisesthe information included in the annual report. other than the financial statements and our auditorf5 report thereon. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwSse eKplScitly stated in Dur report, we do not express any form of assurance comlusion thereon. In Connection wSth our audit of the financial statements, our responsibility is to read the other informatlDn and, in doin8 so, consider whether the L)ther information is materially inconsistent with the financial statements. or ourknowledge obtained in the audit or otherwisè appears to be material misstated. If we identify such material intonsi5tencies or apparent materlal misstatements, we are required to determine whether there is a material misstatement in the financial statements or a rnaterial misstatement of the other information. If, based on the work we have performed, we conclude that there Is a material mls5tatement of thi5 Other information, we are required to report that fact. We have nothlng io report in this regard. Opinions on other matters pre5crlbed by the C(xnpaniÈs Ad 2006 In our opinion, based on the WO undertaken In the course of the audit-. the infomiation given in the report of thÈ board of trustèes for the financial year for which the financial statements are prepared is con515tent wkth the financial statements- and the report of the t*)ard of trustees has been prepared In accordance with applicable legal requirements. Matters on whi¢hwe are reqwred to report by exception In the light of our knowledge and understanding of the tharitable company and Its environfflent obtained in the course of the audlt, we have not identified rnaterial misstatements in the reFA)rt of thÈ board of trusiees. We have noihing to ieport in respe¢t of the followSng matter5 in relation to which the Companies Act 2006 requires us to report to you if. in our opinbon.. adequate accounting records have not been kept or returns adequate for tsur audit have not been re1Ve from branches not visited by us" or the financial statements are not in agreement with the accounting rerdS and returns,. or certain disclosures of directors, remuneration specified by law are not made- or we have not receNed all the inforTnation and explanations wè require for our audit- or the board was not entitled to prepare the flnancial statements in accordance with the small Companies regime and take advantage of the small companle5' exemption In preparirg the directors, retx)rt and from the requirement to prepare a strategic report. Page 14
ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED In addition, we have nothing to report in respert of thè following Matter where the Housrng and Regeneration Ad 2008 require5 U5 to report to you if, in uur opinion= a satlsfactory system of Control over transactions has not been mainlalned. Respmsibilities of the board As explained more fully in the boards responslbilities statement, the board members Iwho are also the dlrectors of the assoclation forthe purposes of company lawl are responslbfe for the preparation of the financial statements and for being satisfied that they gwe a true and fair vlew, and for suth internal control as the board determine 15 ne55ary to enablèthe preparation of financial statements that are free fr¢m malerial mi5Statement, whether due to fraud or error. In preparingthe financlal statements. the board Is responslble forassessingthe charitable companls abilityto continue a5 a Boing conrn, disclosin& as applicable, matters rel*ed to 80iAg ¢on¢ern and U5in8 the going concern basi5 of accountin8 unles5 the board either intends to Ihquidatethe charitable company or to cease operations, or has no realistic alternative but to do $0. Audhorfs responslbllltlesfor the audlt of the financlal statements Our objettivès are to obtain re3nab1è assuran about Whherthe financial statements as a whole are free from material mi55tatement, whether due to fraud or error, and to issuè an auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran, but 15 not a guarantee that an audit conducted in accoidance with ISAS IVKI wlll always detect a materlal mlsstatement when It exosts. Mlsstatements can arI5e from fraud or error and are considered material if. individually or in the aggreEate, they could reas¢)nably be expected to 5nflUen the econom1¢ de¢151ons of users takèn on the basi5 of these financial statèments. Irregularities, Includi fraud, are instances of non<ompliance with laws and regulations. We deslgn procedures in line with our responsibllhles. outllned below. to detect material misstatements in respect of Irregularities, including fraud. The exrent to which our procedures are capable of detecting Irre8ularitlès, including fraud is detallèd below. We obtalned an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the Charity. and the procedures that management adopt to ensure complian. We have considerèd the extent to which non-complian night have a material effett on the financial statements, and In partic¢Jlar we identified the Companies Act 2006. the Housing and Regeneration Act 2008, and the Accounting Dirertion for Private Registered Provbders of So¢ial Housing 2019, and the procedures that management adopt to ensure complian, including those relatinE to the Housing SORP 2018. We have also Identified other law5 and regulations that do not have a direct effect on the amounts or disdosures within the financial statements, but for which compliance Is fundamental to the charftvs operations and to avoid material penalties, including GDPR, health and Safety, employmènt law, and fundraisin8 re8ulations. Page 15
ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED Having reviewed the laws an¢J regulations applicable to the charity, we designed and performed audit procedures to obtain suffioent appropriate audit evidence. Specifically, we: Assigned an engaBement tèam to the audlt with particular familiartiy in dealing with registered pioviders of social housing- Obtained an understandinB of the charitys procedure5 for ensuring compliance with laws and regulations- Obtalned and revlewed Internal poll¢y and procedure documents,. Made enqulrles of management and the trustees regardirg whether they were aware of any actual or suspected incidences of nr)n-compliance with laws and wulatlons,. Obtained and reviewed meeting minutes. Reviewed legal expenses accounts for indications of any possible non-compliance- and Reviewed the completenes5 and accurary of any disclosures made in thefinancial statements. We assessed the 5usceptibS1ity of the charity's financial statements to materlal mlsstaternent, including considering how fraud might occur. This was performed bv.. We obtained the Board of Trustees, a5se55ment of fraud risk and enquired as to any known or suspected instan5 of fraud., We con5i(kred whether management have incentNes and opportunities to manipulate flnancial results lintluding overriding tontrtslsl and dètèrrninÈd that thè kèy risks related to the non-compliancè with thè Hovsing SORP 2018 in terms of cornpc>nÈnt accounting in previou5 year5, completeness of income, completeness of creditors, non4epreciation of properties irb previou5 years and the Tisk of management override: We obtained an understanding of Internal control relevant to the audit in order to design audit procedures ihat arè èpproprlatè In the tlrcumstantes, but not for the purpose of expresslng an opinion on thè effectivene of the charity's intefnal contro5.. We tested journal enrries to Identlfy unusual transactlons.. and We designed and performed audit procedures to obtain sufficient appropriate audit evidence regarding compliance with laws and re8ulations. includinB enquiry of the Board of Trustees, review of minutes and correspondence. and review of the completeness and accuracy of disc105ures made in the financial statements. A further destription of our responsibilities for the audit of the financial statements 15 located on the Financial Rèporting Council's website al: wv.fr au Thi forms part of our audi10rf5 report. Pe18
ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS UMITED Use of our report This report is made solèW to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and sgctlon 137 of the Housing and Regeneratlon Act 2008. Our audit work has been undertaken so that we might state to the charitable companWs mernbers those matters we are required to state to them In an auditorf5 report and for no other purpose. To thefulle5t extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charTrtable companvs members as a body. for our audit worl for this report, or for the oplnlons we have formed. Jonathan Healey BA FCA Isenlor statutory audftor} for and on behalf of Date.'s CI tLi Lindtyer Francis Ferguson Umlted Chartered Accountants Statutory Auditors North House 198 High Slreet Ttsnbridge Kènt TN9 18E Page17
AB8EYFIELD SOUTH DOWNS UMITED STATEMEKfoF COMPREHENSIVE INCOME FOR THEYEAR EPID£D31 MAR012024 ReIthd Unrestrktrd funds Y¢t¥l fwd5 2014 fwds IQ24 1023 L5?30 12mWI IW9.659) I yA416591 1134A571 56,671 9&6n Interest Irrrf*5tMertknto 33.775 I.143 194 13,77S 194 122W3 928 UZ6 lntomefrlWO+tyQThO LWE5fjn reOn offix•J3Ef•t I1.15890) l l.is&) MrlThon Pw18
ABBEYFIELD SOUTH DOWNS LIMITED STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2024 Asrestated Restrlrted Unrestrlrted Income Income and expendire expendlture rese ieserve Asrestated Endowment Totcl reserve Balance at l April 2022 7,835,180 240,121 8,075,301 Total comprehenslve irKome for the year Transftr from endtswment reserves 81.090 3,384 81,090 13,3841 Balan¢e at 31 March 2023 and l Aprl 2023 7,919,654 236,737 8,156,391 Total comprehensive income for the year Transfer from endowment reserves 2,OC*J 2.251.758 3,384 2,253,758 13,3841 Balancè at 31 March 2024 2.0 10.174.796 233,353 10,410,149 Page 19
ABBEYFIELD SOUTH DOWNS LIMITED BALANCE 5HEEr AsAf31 MARCH2024 2023 Tan8lbk fweJa55ets hwestnts 17,44ira 97L275 16,162.192 14414,448 16,162,192 22,%)4 1,133,456 859,653 7&151 14,368 2257.7Ks Cashat bInk•1 In h•nd Shorttermushdeposlts In¥wA¥tnt5 io WJ1764 1271128 wlthlnoneyebr li 15¥2271 (430,9911 I55S537 1,137 19.969.985 14QJ3,329 CYedbtors:mDurtshlHn8 du• AA 19.559361 19,817.5381 rn¥ldonsforlknbWtles 129AO)I NÈt4550ts WiOJ49 Unrestrlcted lncomeabelveThlItWe reseNÈ Restrlcled Iorne aThl la174796 7,919.654 17 233353 236.737 iOA49 ts&391 These accounts havebew pTrpared In acord•rKe vAth the pwAskns •ppllubletocompanles subJecttott sm•ll companle5' ThearLtyJMS weRapprtyed bythe Bo¥d ofTrustees on.A.g.- 4L'f-2¥tr.4..* Mr l ThtsmJ5 Chlrnwn CompKry reilstraiion rwmber. 007361X• Paue 20
ABBEYFIELD SOUTH DOWNS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 As restuted 2023 2024 Net cash generated Irom operating arti¥ities 2,476,104 1,198,592 Cash flow from Investlng activitie5 Purchase of tangSble fixed assets Disposal of tangible fixed a55et5 Purchase of Investments Investment Income Interest received 11,593,545) 1549,2511 131,430 11,049,426) 126,143 33,775 2,381 Net cash used In Investlng *ti¥ities 12,483,0531 1415,4401 Cash flow from Investlng a¢tlvltle$ Grants receivedllpaidl Loans received 167,6741 { 190,0281 150,499 1166,888 Net cash provided by investing a¢ttvltles 1257.7021 116,3891 Net increase in cash and cash equlvalents and change in net lund5 { 264,6511 766,763 Cash and cash equivalents at the beginnlng of the year 2,257.760 1,490,997 Cash and cash equlvalents at the end of the year 1,993,109 2,257,760 Cash and cash equivalents consists of: Short temi cash deposits Cash at bank and in hand 859.653 1,133,456 2,257,760 A. Recon¢lllatlon of net cash generated from operating artlvltles Cash Ilow from operatln8 artlvities Surplus for the year 2,253,758 81.090 Adjustments for non cash item5: Depreciation Impairment of fixed assets Increase in debtors Increase/lDecTeasel in creditors IDecrea5el/increase in provisions Ailjustments for investing or financing activltles- Investment Income Interest receivable 312,564 298,899 1.158,890 19011 366,4051 29,400 18,1361 107,236 129,4001 1126,1431 133,7751 12,3811 Cash generated from operating artivities 2,476,104 1,198,592 Page21
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL sTATEME[s FOR THE YEAR ENDED 31 MARCH2024 Attountlng policies 1.1 Legal Status Abbeyfield South Down5 Limited is a private company limited by guarantee incorporated in England and Wales and is a registered housing provlder. The registered office is Holdenhurst, Mill Road, Heathfield, East Sussex, TN21 OGG. 1.2 Basls of preparatian The financial statement5 of the charity are prepared in accordance with UK Generally Actepted Accounting Prartice (UK GA4PI including Financial Reporting Standard 102 IFRS 1021 and the Housing SORP 2018: Statement of Recommended PrartKe for Re8lStered Social Housing Providers and comply with the Accountin8 Direction for private registered providers of social housin8 in England 2019. The charity is public beneflt entity as defined by FRS 102. The accounts have been prepared on the historical c05t convention, modified to include certain items at falr value. The financial statements are presented in pounds sterling and rounded to the nearest pound. The principal accountin8 policies adopted are set out below. 1.3 Income Income is measured at the fair value ol the consideratior+ received or receivable net of VAT. Tumover represents rental income receivable In the year net of losses from voids. Rental income Is recognised in the period the rents fall due. Income from government grants is recognised as turnover when the charity is entitled to the funds, the receipt is probable and the amount can be measured reliabty. This is usually when a fomial offer is made in writing. 1.4 Expenditure All expenditure 15 accounted for on an accruals basis and ha5 been classified under the headings that classify all costs related to the category. Expenditure is inclusive of VAT. PaBe 22
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH2024 Accounting polithes Icontinuedl 1.5 Charitable funds General fund5 are unrestricted fund5 which are available for use at the discretion of the trustees in furtherance of the general objectives of the Society and which have not been designated for other purposes. Endowment reserves are those SelveS which are only expendable in accordance wlth the wSshes of the funder or regulatory body. Revenue and expenditure cannot be directly set against endowment reserve5 but is taken through the Statement of Comprehensive Income and then a transfer to endowment reseNes is made as appropriate. 1.6 Tangible fixed assets and depreciation Tarsgible red assets, other than freehold land. are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Housifig Propertie5 Housing propèrties are held for the provision of social housin8 or to otherwise provide social benefrt. Houslng propertles are printipally properties available for rent and a stated at cost less atcumulated depreciation and impairment losses. Costs include the cost of acquiring land and buildings, development Costs, and interest charges inCUrd during the development period. Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the INes of the propertles. thereby enhancln8 the economlc benefits of the assets, are capitalised. Depreciatlon 15 provlded on houslng properties, excluding land, so as to write off the net cost less estimated residual value of each asset over its remaining estimated useful life. Major components are treated as separable assets and depreciated over their expected useful economic lives or the lives of the structure to which they relate. if shorter. as follows: Freehold buildin8S Roofs Windows Kitchens Bathrooms Lift5 Heating systems 50- 80 years straight line 40- 50 years straight line 25 years straight line 33 years straight line 11- 20 years Straight line 15 years straight line 33 years straight line Page 23
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcies Icontlnuedl Borrowing costs directly attributable to the acqui51tion, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets a substsntially ready for their inten(led use. Other fixed assets Depreciatlon is provided on other fixed assets, 50 as to write off the net cost less estimated resS(lual value of each asset over S remaining estimated useful life as follows.. Fixtures, frttings and equSpment 10 years straight line 1.7 Impatrment of fixed assets Assets not rneasured at fair value are reviewed for any indication that the asset may be Impaired at each balance sheet date. Where indicators a identified, an assessment for impalrment is undertaken comparlng the carryin8 amount to tts recoverable amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in expenditure through the Statement of Comprehensive Income. 1.8 Yed asset Investments Fixed asset investment5 are intially measured at transartion price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomellexpenditurel for the year. Transaction costs are expensed as incurred. 1.9 Cash and cash equivalenls Cash and cash equivalents include cash in hand, deposit5 held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. 1.10 Finandal Instruments The charity only has financiol instruments which are classified as basic financial instruments. Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in income and expenditure. Long-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in income and expenditure. Loans and l)orrowings are initially recor(led at the transaction price including transaction costs. Subsequentlyi they are measured at amortised cost usin8 the effective interest rate method. Page 24
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountln8 policies Icontinuedl 1.11 Retirement beneffts The Charity operated a defined contribution pension scheme. Contributions are charged in the accounts as they become payable in accordan with the rules of the Scheme. 1.12 Government grants Government grants include 8rants receivable from Homes England IHEI, kncal authorities, and other government organi5ation5. Government grants received for housing properties arè recognised in income over the useful life of the housing property structure and, where applicable, its individual components {excluding landl under the accruals model. Turnover and costs 2024 2023 Rent receivable Social housing General housing Void losses Social housing Amortised government grants 2,046,845 26,368 1,834,505 24,643 1201,2591 68,074 (384,2881 68,074 Turnover from housing lettlngs 1,940,028 1.542,934 Income from other artivities Sundry 5,178 3.396 Total 1,945,206 1,546,330 Operatin8 Costs from Social housing artivities.. Management expenses Property maintenance and refurbishment co515 Depreciation of housing properties Other costs 1,009,165 153,091 266,879 650,728 818,894 123.390 265,489 241,886 Total 2,079,863 1,449,659 Net l(lefKitl/surplus from housin8 activitie5 1134,6571 96,671 Page 25
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 IDeficltl/surplus on ordinary activities 2024 2023 Thls is stated after charging: Depreciatlon of housing properties Depreciation of other tangible assets Auditors, remuneration for audit Auditors, remuneration for non-audit services 266,879 45,685 9,OCM) 8,100 265,489 33,410 7,800 5,946 Stsff costs and key management personnel 2024 2023 Wages and Salaries Social securf(y costs Other pension costs 628,416 38,621 14,456 474,496 33,461 10.511 681,493 518,468 The averaEe number of employees for the yèar based on monthly headcount is as follows: 2024 Number 2023 Number Housekeeping Adminlstration 39 42 37 The average number of employees for the year based on full time equrvalent was 1312023: 191 Board and key management personnel remuneratlon None12023: nonel of the trustees were reimbursed for any expenses. The total remuneration. including social security and pension costs, for key management personnel amounted to £159,23312023: £120,311). The Chief Executive is a member of the company's defined contribution pension scheme. Contributions payable for the year were £3,38812023: £2,457). Pa8e 26
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Board and key manaEement personnel remuneration Icontinuedl The number of employees whose total employee benefits including pension contributions earning over £60,000, classified within bands of £IO,OOQ is a5 follows.. 2024 2023 £70,000- £79,999 £80,C¥JO~£89,999 Taxatlon The Society, having exempt charitable rtatus, Is not Ilable to taxation. Tangible fixed assets Housing Properties Fixtures, fittlngs ond equipment Totol At l April 2023 Addrtions 16,880.546 1,416,581 406,558 176,964 17,287,104 1,593,545 At 31 March 2024 18,297,127 583,522 18,880,649 Depredation At l April 2023 Charge for the year 885.556 266,879 239,356 45,685 1,124,912 312,564 At 31 March 2024 1,152,435 285,041 1,437,476 Net book Wdlue At 31 March 2024 17,144,692 298,481 17,443,173 At 31 March 2023 15,994,990 167,202 16,162,192 Pa8e 27
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Tanglble fixed assets Icontlnuedl During the prior year, followin8 the completlon of the developmerTrt at Holdenhurst, Heathfield, the charitv Made a claim under the tem)s of a property bond in relation to this property. This was due to additional works being needed to remedy construction issues during thè course of the development. As a result of this claim, the charity received a total payment of £1.13m from the bond and, due to the nature of this additional income, this has been treated a5 an extraordinary item on the Statement of Financial Activity. Investments COIF Investment Fund COIF Ethical Investment Fund Tott71 C05t or valuation At l April 2023 Additions/Gift5 Received Transfer to current investments Interest and dividends receivedl change in market value 569,144 18,6141 80,873 290,714 14,6541 43,812 859.858 113.2681 124,685 At 31 March 2024 641,403 329,872 971,275 Carrying amount At 31 March 2024 641,403 329,872 971.275 At 31 March 2023 Debtors.. amounts falling due wiihln one year 2024 2023 Rent and service charges receivable Prepayments and accrued income Other debtors 9.272 13,232 4,050 9,118 1,200 22,504 14,368 Page 28
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10 Current asset investments 2024 2023 Unlisted Investments 78,151 Current asset it)vestments comprise of a COIF Charities Deposit Fund of £78,ISI12023 - £Nill. This is part of the overall Deposit Fund which is retained for working capital purposes. 11 Credltors: amounts falllng due within one aT 2024 2023 Govemment grants Trade creditors Rent and Service charge5 received in advance Accruals and deferred income 8ank loans Other creditors 77,542 63,587 28,014 12,842 354,438 77,942 89,852 30,533 46,093 291,672 26,328 538,227 562,420 12 Deferred 8rant Income 2024 2023 At l April 2023 Grants recelved Released to income in the year 5,356,492 5.243.373 181.193 168,0741 68,0741 At 31 Marth 2024 5,288,418 5,3S6,492 The movements on recycled capital grant is as follows.. 2024 2023 At l April 2023 Grants reteNed Released to income in the year At 31 March 2024 4,606,525 4,483,642 181,193 158,3101 4,606,525 158.3101 4,548,215 Page 29
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13 Credltors: amounts falling due after one year 2024 2023 Bank loan5 Government grants 4,348.960 5,210,876 4.538,988 5,278,550 9,559.836 9,817,538 Grants due in more than one year relate to housing properties under development. These include £4.66m of Recycled Capital Grarbt Funds and £749.063 grant income received from Home5 England. See Note 14 in relation to the development. The Charf(y holds two long term loans, wlth a maximum facility of £5m. At the year end. £4,703,39812023- £4,830,660) of this facility had been utilised. 14 Housing stock 2024 2023 The number of units in management at the end of the year We-. General hou5ing- social rent Supported housing 120 103 123 106 15 Pr<wisions lor liablllties 2024 2023 Provlslon 29,400 The provision tateS to a settlement agreement reached durlng the earw part of the 2023124 financial yearto cancel the development of bespoke software. 16 Financial commltments Social Housing Grant was received in prior years totalling £40,129 in connertion with work on improving one of the houses. This would be repayable if the relevant property is soFd. Further Soclal Housing funding was recewed for work on the new development, totallin8 £4.66m. This would be repayable if the relevant property is sold. There is a fixed and floating charge on the properties and all assets held by Abbeyfield South Downs Limrted, in relation to a lonB term third party loan. The amount owed under this guarantee at 31 March 2024 amounted to £4,703,39812023: £4,830,6601- Page 30
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17 Endowment reserves Currentyear Bolonce ot I April 2023 Income Expenditure Tmnsfrrs 8olonce ot31 Morch 2024 Permanent endowment An8us Lodge endowment fund 236.737 13,3841 233,353 Prior year Balance ut I April 2022 Income Expenditure Tmnsfvrs 8olance at 31 Morch 2023 Permanent endowment A Trgus Lodge endowment fund 240,121 13,3841 236,737 The pem)anent endowment fund represents the funds of Angus Lodge Trust, a linked charity of the Abbeyfield South Downs Limlted, that were applied in purchasing 28.2% of the freehold land and buildin8S at 3, 5 and 7 Cadogan Gardens Tunbridge Wells (Abbeyfield House). A transfer is made to income and expenditurè reserve, in rèspect of depreciation on the property. 18 Restrlcted reser¥e5 Current year Bolance at i Apri12023 Income Expenditu Transfers Bolonce ot 31 March 2024 The Abbeyfield Worthing Society 2,000 2,000 A5 part of the gift of funds from The Abbeyfield Worthing Society, a restrirted reserve was received in relation to the Anniversary Celebrations of this Society. Page 31
ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19 Glfts ol a5set5 from merEing societies The Abbeyfield Worthing Soclety Total Freehohj properties Fixed asset investments Current asset investments Cash Other net liabllitie5 1,320,000 898.283 25,000 14,673 129,6531 1,320,0(KJ 898,283 25,0 14,673 129,6531 2,228,303 2,228,303 The Abbeyfield Worthin8 Society transferred its operatlons to Abbeyfield South Downs Llmited on 31 October 2023. Under the terms of the agreement the freehold property and a cash sum were gifted to Abbeyfield South Downs. The gifts were included at fair value. 20 Prlor perlod adlustment During the preparation of the 2023-24 financial statements, it was noted that tapital additions totalling £131,430 had Incorrectly been included twice within fixed asset additions in the prior year. As result of this, an amendment was made to the prior to year to correct this position, with the financial effect being to reduce the loss on the revaluation of the fixed assets a5 at 31 March 2023 arid thus increase the charitvs unrestricted reserves by £131,430. Page 32
ABBEYFIELD SOUTH DOWNS LIMITED DEfAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 2024 2024 2023 2023 Turnover Social housing lettin85 General needs rent Amortised 8overnment8rants Sundry 1,845,586 26,368 68,074 5,178 1,450.217 24,643 68,074 3,396 1.945,206 1.546.330 Admlnlstratlve expenses- management House staff costs Staff training & welfare Food and other household c05t5 Water rates Council tax Electricity Gas Insurance Cleaning AdvertisSng Llfellne Telephone Television Ilcence Depreciation of fixtures and fittings 499,234 2,196 173,573 14,959 16,986 60,998 69.795 29,869 14.522 24.784 41.656 12.084 2.824 45,685 41)4.363 3,478 154.735 8.133 37,349 62,334 21,125 9,771 20,201 36,752 17,140 1,460 33,409 11.009.165) 1818,8941 Administrativè èxpensg$- oth•r Administrative staff costs Printin& postage and stationery Travelllng expenses Legal and professlonal fees Auditors, non-audlt fees Audit fees Afliliation fees 8ank charges and Interest paid Service contrads Sundry expenses 205,066 12.943 4.035 29.417 8.1 9,OCrf) 16.586 334.389 26.220 4,972 148.017 10,129 2,456 45,609 7,8 15,933 743 2,030 3,223 1650,7281 1241,8861 Repalrs and malntefian¢e Routine malntenance Depreciation of housing properties 153,091 266,879 123.390 265,489 1419,9701 { 388,8791 Interest receivable Gifts received Other income Losses on revaluathon of fixed asset Income from property bond 159.918 2,228,303 194 2,381 10.928 11.158,8901 1.130,000 2,388.415 115,5811 Surplus forthe year 2,253.758 81.090 Page 33