Company registered number: IX)736150 Charlty nurnber: 216779 Regulator of Sodal Houslng reglstered number H0375 ABBEYFIELD SOUTH IX)WNS LIMrrED ANNUAL REPORT ANO FINANCIAL STATEMElWt5 FOR THE YEAR ENDED 31 MARCH 2025 ABBEYFIELD SOUTH DOWNS LIMITED CONTENTS The Board, ExecutNe Offior5 Advisers Report of the Board of Tnjstees 2-14 Independent aLJditors' report 15-19 Sratement of comwehensNe incorne 20 Statement of changes In reserves 21 8alance sheet 22 Statement of cash flows 23 Notes to the finand41 st*ernents 24-36 Oetailed incDwne and exppnditure xcount 37 ABBEYFIELD SOUTH DOWN5 LIMITED THE BOARD. EXECUTIVE OFFICERS, ADVISERS The Board as at the date of approwal ofthis Annual Rep Mr l Thoma5 CEng (Honsl MRICS MIStructE MCIOB Ichairmanl Mr D Byrne FCII Mr M Paris MBE MCIOB Miss J sorer￿on BA (Aonsl PGDipM Chortered Marketer Mr J fimbs FCMI Mr P A￿de￿on LLBIHonsl MBA Drl Conkn MBA FCCA Mr N Taylor Note.. Jll Bojrd mèmbers are 4190 trustees ol the charity Exttutive Officers as *the date of Mrs N Moss IGeneral Manager) approval of th15 Al￿￿￿1 Rep(xt Mr P Anderson LLB(HO￿￿j MBA Reglstered afflte and prknclpal address Holdenhu Mill Road Heathr￿ East Su55ex TN21 IbthpMdent audltoffs Lindeyer Francis Ferguson Lirniied Statutory Auditors North House 198 Hlgh Street Tonbrid8• Kent TN9 IBE Bankers Bardajs Bank plc 63167 Tem)inus Road EaStt￿SUme East Sussex BN213NE Legal rtatus Reiistered company fimited by 8uarantee No. ¢X)7361XI Registered ￿th the ReBd•tor of Social Ho￿1n£ No. H0375 Ile8lstered wlth the Charity Commission No. 216179 Page 1 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Annual Report statement The Trustees, who a150 seNe as dirertors of the charily under the Companie5 Act 2￿6, present their annual reFQrt, along wtth the audtled finanaal 5tatew*nts for Abbeyh"ehJ Souih Downs Limite(I, covering the finanual year ended 31 March 2025. Objectlves and A¢tMtle5 As of 31 March 2025, the charity retnains corntnitted io preventing arhd alIeV￿ling bneliness and reducing risk of isolatkjn in later lrfe. At the eTKI of the re￿rt1Tr8 year, Abbeyfleld South Down5 had 106 homes avallable to let acr0$5 ifs srK sheltered housin8 schemes in Eastboume. Heathfield. Tunbridge Wel￿. Hove, Worthin8. Pr￿iding comfortable and secure. Iow-COSt and affordable homes wtlhin 4 cornmunal liwng environment that encourage5 a SUP￿rtNe community, friendship and independencè. Thi5 is made pjssible by our dedicated worklor￿. which provides our home- cooked meal provtsion. maintains dafj￿ contatt with ourtenants, and offer5 Bood-nei8hbour support d companionship. To ￿￿11 It5 oblectNes. the charity seeks to generate a sustaiftable surplus from ￿TrtaI incorne over expendrture. This financbal approach underpirts the on8olng upkeep of its propert￿5 and supports the del￿ery of consi5tentty h¥h-qualtty services. The tharrty remain5 committed to maintaining and enhancing these standards wherever w$sib￿, while erLsurin8 fvll coMFdk7r￿ wrth all legislat￿n relevant to its Operat￿ts. 24 Ea#lVj￿￿ x2 16 NrA 6rigfvt￿ & 16 95% Heathfie NDTr Tunbridgewd 14 91X WorthlfflglBCH] 111 under 85% wmhiTr8 ts ClO5￿j 7D34 nder dwe ai¢ A1th5toffl ClowJJJn 2025 31 55 106 94% The Trustees have revEw¢d Charit￿$ aims and objectFves and confirm that, in planning and deliverire its actfvities. they have had due regard to the char￿ (£Jmmission's Euidante on public benefit, Includi￿ rts guidarKe on fee-chargin& The Trustees also ensure thatthe Charity comrAie5 with all appI￿aLle le¥i517tion Hnd re8uL8tory requlrements. Page 2 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 AchI￿ne￿￿ and PerfNrnanc• This reportin8 year has been oneofchan8e and resilipnce. in￿enceS that have dominated the vear under review.. ian Thomas. success￿n to the Chair in April 2024 The retirement of ourCEO, Nolan Taylor. in septern￿r 2024. Appointment of Nikki Mos5 as General ManaEer in April 2024 Restructu￿ and appointment of a new manaBementteam Absorption of Ab￿Vri￿1d Worthing Society Clo$ure of Ab1￿yF￿Id House. AIFrtston Following unanimous support from the knard of Trustees. lèn Thornas sUC￿eded David Byme as Chair of Abbeyfield South Downs. The Board extends its sin￿re thanks to David for a decade of dedicated leadersh¥). durinÉ which the or8ani53tK>n eXper￿nCe￿ 5ubstantrdl growth and transformation. Davicf5 many contrilxJtKJns Incl￿ Ihe ot*ning of Holdenhur5t in 2022, landmark projert deliveTin8 48 affo￿able rental apartments within a sheltered housing scheme. Wtth a lon6Standin8 commr(meni to charrtable work. David continues to Serve Abbeyr￿k1 South Downs a5 a Twstee. brirelng valuable axperknce and èxpertise to SUp￿rt its orÉoin8 misslon. lan's appointment represents a natural progressbon, folkywin8 his integral role as Devebpment Director in the ptsnnin& constructK)n. and completion of the Holdenhurst devekjprnent. Alon8 with his profeSs￿nal bathground as a buildingsuTheyor. lan brings tsvertwo decades of experience within the Abbeyfteld nN)vement. In¢ludln8 senlor Toles at Abbefftld Kent and the natlonal Abbeylield gjciety. His exten5Ne background ir) 500al housire and pro1￿rtY develoweni posf£ions him well to lead Abbeylield ￿￿th [)Owr￿ irrto its next chapter. Nolan Taybr, Chief ExecutNe Off￿r. forn)ally announced his ￿ireMent in Maich 2024 after 11 years of dedKated Ser¥1￿ to Abbeyfield South Downs. During his tenure. Nolan worked closely with Davld 8yrne and lan Thornas, playing a PNOtal rok in the charity'5 growth and development. He stepyed down frorn day-to-day management at the end of June 2024 and offKially retlred In Septernber. The Board expresses its sincere 8iatitude for Nokin's leadership and lasting eontributk)ns. Nolan's commttment to the chartW5 mission continue5, and in Ociober 2024. he joined the Board of Trustees. ensuring his eyrience remains Part of AbbeyF*ld South L￿Wns, future. The Board of Tru5tee5 are deli8hted to welcome Nikki Moss to the role of General Manager in April 2024, taking res￿ng1b1Ity for the operational management of the urganisation and rew)rtin8 directly to the board. Nikki ha5 11 years of Servi￿ wrth Abbeyfitld Struth Downs and 35 year5 of experience working in and manag1￿$ervKes forolder wple. HEr profe55x)nal credent1315 include Pagè 3 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 a rarEe of Level 3, 4, and 5 qualrfication5 from Hea￿h & S(xial Care and the CTharterèd Insttiute of Housi￿. Nikki has a clear per5pectNe on the charrty's m6s*)n and its need for its servi￿$ to b affordable to older people on the knwest incomes. Nlkki be credrfted wrfih developirE a dedKated workfor￿. a successfvl service mthlel and taking the HohJenhur5t development project to an operatlonal serv1￿. Following Board approval of the prO￿5¢d restructuri￿ plan in Ortober2023, implementation wa5 led by Nikki Moss throughout 2024. decis￿￿ was driven by the charr[￿$ substantial growth- from 58 to 123 housing units between 2022 and 2024. representing a 112% InC￿ase, and the resukin8 operational pressure5 On the Management Team. Nolan'5 rrtir*ment further underscored the need to reinforce leadership capacity3nd redutedependency on indNidual roles. The restructurlng was deslgned to ensure the charity ￿ equipped to (Selwer hl8h-quallty housing ser¥￿e5 while f05terin8 a re5ilierTL Values-1￿ organisation. It introduced the fOl￿WiTh8 strategic outcomes: Adequate resources to maintain servKe slandarrJ5 fortenant5 and staff. Company resll*nce to antiopate, adapt to. and recover from disrupt￿1& while contknuing to delNer Its mssion. safeguard peopk. aThJ uphold VBlue5. Reduced reliarKe on single indrvidua15, mitigatir* polnis of falhjre. A dNerse rdnge of skills to a¥a￿e organisatKtinal obpdNes. Improved workinE condrtions, acknowled8in6 staff welfare as Central to long-term succes Greater operational autonomy and thar accountsbilrtyforsejvice outcomes. Stren8thened regulatory compliance. Transparent reporting mechanisms to Inforni finarKial and strategic deosions at Boanl IÈVÈL As of 31 March 2025, significant pr￿re&S has been made across key operational and leadership areas. We are pleased to confirm our Finance Manager, Wendy Barrow, assumed addltional responsibilitles followin8 Nolan'5 retirement. Wendy has been a valued MeM￿r of the team foi over ten years, bringing continuity, expertise, and a deep understanding of our financial 5VStems. Her bng4tanding commiiment and leadership are deeply appreciated, partKularty during thls perlod of transltion. Addltionalty, two Operational Managers have been recruited to 5trpn8then 5UPPOrt for tenants and staff. as well as to enhance o¥ersEht of prorErty-related responsibilities. All planned outcomes are expected to be achieved during 2025n6, following a period of cor¢solidatK•n and ernbeddl￿. As of l April 2024, the ComtAaint Handling Code (the Code'l became stattrtory, rewirin8 all members of the Housing Orntr￿d$rnan Stheme lo cornp￿ wr(h its provtsions by law. Abbeyfield South Dowr￿ 15 proud to have xhieved full compliarKe. demoll5ttatlWl8 our commiiment totransparency. faimess. and continwus wnprovement. Page 4 ABBEYFIELD SOUTH DOWNS LIMrrED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The Company Secretary serves as the Member Responsible for Cornplaint5 IMRCI, a designated role within the AbbeYF￿ld south Downs Board. The MRC provides strate&K oversight of complaint handlin8 ￿rforManCe and ensures accountability is embedded across the organisation. Following a detailed ￿¥￿W of its vwbility, regrettabty. the Abbe￿Ield South DowrLS board had to declde to close Abbeyfield House. ￿fIl$ton. We acquired the Altrston and Dislrict Society in 2017. The service had strug*d to achieve a viable Occupa￿ in the preteding years. We implernented a Comprehe￿Ne dvdrlal rnjrketing plan. whKh proved successfvl for sweral years. Although the service wa5 kxated In a ￿aUt￿Ul vllla8e ai the foot of the South [k¥W￿ Natbonal Part the quality and size of the accomModat￿n no longei tnet the eXpertat￿nS of potential tenants. Due to t construction of the buildir& the cost ol refyrbishrnent 01 dthfeknpment was prohibitive, compounded tyfactors such as ￿ceSsibl11ty of servKes, transM)rtation. and stsffin8 in a rural area. A closure pr¢Ke5s Can be dlstresslng for tenants. their families, and staff. We strive to act as sensitively as possible. but it is the reswnsibility of Trustees to ensure that the d)arlty's assets are used to serve as many people as tK)5sible. Where a service becomes unable to support itself financialty, funds must be dwerted to covèr 0￿rat￿)nal costs. whKh erode5 charity fund5 the longterm. The closureconclu(led injanuary 2025. Thefijnds ￿￿1¥ed fromthe sak of the property will be used to support ihe devebtmnent of new low-cost or affordable homes, furthering the charrty's objettive5 and maximtsing the resources avaikble to The Abbe￿ield Worthin8 Society gifted its assets to Abbeyfield South Down5 in November 2023. The assets consisted of two properties in dose FKoximity to Ot￿r, txjth undèroccupied 5¢YA and requiring S4gntf￿ant refurbishment. Due to insuffi¢ient staffin& we decided to dose Seas(3￿$ and f¢Yus our resour￿ on improviTrd Beachside. Bea¢hslde had the ad¥anta8e of a pa55en8er lift. Beachside urKlerwènt refurbbhment to address k)ng-Sta￿lIng damp issues. as well as improvements to decorath)n. laundry. din1￿ and off1￿ space5. The previous live-in staff accommodation was remodelle(l and refurbtshed to create an additional setf-contained, Iow-CQSt lettable home. All tenants and staff from Seascapes rehxated to 8eachslde or otherASD propert under irnproved tErm5 Co￿tE10n5. The staff team athieved full occuparKy in Au8U5t 2024, level that has been sustained through¢yJt the year. Plans forthe Future ASD will continue to align decisions with its 2023 strategy. which prioritises sustainable growth, operal￿nal resilience, and tenant wellbeire. We will seek Op￿tunitieS for development within or adjacent to our current areas of operation. The nature and scale of future schemes will depend on the availablllty of suitable land, existin8 properties. or failedlfailing developments that may repurwsed to tneet bcal housSn8 needs. Pgge 5 ABBEYFIELD SOUTH DOWNS LIMrrED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR EAIDED 31 MARCH 2025 Strategic partnerships or mergers wrih other tharit*s and organtsatK)ns wil a￿0 be considered where they align with our values and enhance our capacity to deliver hEh-quality housing and support. Alongspje seThi¢e development. we remain focused on strengthening the 8overnance and managementof the company. including regular review of ourorganisational Structu￿ and systems to ensure they remain frt for purpose, ￿8allY compliant, and reswn5rve lo Lwjth operational demands and strategic priorities. All Inltratlves wlll be re¥￿Wed in light of the economlc dlmate and other Influenclng f*tors. ensuringourapFNoach remains benefKialtothe chartr's purF*)se, finan0a1￿5Wnd. and adaptable to change. The currentlyclosed Seascapes site presents an opportunityforthe tharrtytofurther rts obiectwe We intend to deVelOpth￿ site and create ewdht new. self-contained. Iow-C05L oraffordable homes. We are pleased io ￿ Worki￿ in partnetship with WorthitE Council to gain grant funding from Homes England. The plans are at the preliminary sta8es, but we are optiM￿lIC that planning permission will be granted. This work will continue in 2025126. We anticipate that homes will be available in 2026. 5ubjert to our achievin8 the requirEd lurKling the prijjett costs ￿MainIn8 viable. The Board remains firmty ￿thev￿WIhat our'lndependent deVe￿￿￿ent and fits assodated operating model represent a wogressive solution to meeting the evolving expectatiorts of an a8ein8 population, aloryKle emer8in8 wli(v rEalBnrnent5. Hoklenhur5t'$ Success has been very encoura8in& and we are commtied to exploring oP￿rtUnitieS to replTrcate similar rnode15 across our geographical footprint. We telieve this approach May serve 35 a blueprint for similar developments in the fuiure, for Abbeyf*ld South Dowrs and acros5 the sector. At the sarne time, we continue to SUPPgrt and invest in our exilting sheltered housing seNices, where demand remains stron& ThÈse schÈmes wovmle an a1￿int1uS￿e housingsolut￿)Tr fortenants with the lowest income5. partKularty those eligible for weware as5i5tance. Making a tèngible difference to the live5 ofthe tenants they serve. Demand for0ur5e￿iCe5 ha5 beer 5trongthroughoutthe year. andwe are COnf￿ert of maintainir or exceeding our occupancy rate in 2025126. Having duly consxlered the above, and taking into account the current economlc etNlronmènt and settor contex[ the Trustees have conduded that there are na matÈrial uncÈrtaintiÈs that cast SEntficant doubt on the charlvs ability to contlnue. Page 6 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Risk Mana8em•nt The Board maintains a risk rnanagemenl pmcess to identify. assw. and mrfiigate sgrnrfKant r￿kS across all operatK•ns and development artviities. DavKI Byrne and Nolan Ttylor lead oversight. The Board has reouested a Rsk Sub-committee. InVo￿l￿g operational stsff. to supwrt this process by cOntri￿lin8 froniline insights and ernsurlftg rlsks are grounded In day-to-day realities. Strèttgit Risk Risk: Operating wrthin a wrnplex and evolving market tnfiuenced by regulatory shift5. comWitiDn. demographic change, and economic pressure. Miligation: Annual rev*w of Risk Regi%ter A￿￿$t reporting to the Board of Tnjstees Sertor arml e¢onomic SU￿ellIance Adopted a l(PyearStrategTrc Plan12016-20261I grounded in sector research and operntional intelligence. Updated ien year Strategic Plan in development. Informed bVTnj￿ee and leadershlp expertlse and alEned wrth AbbeYf￿ld England's direction Finamial Ifiability Rlsk: Financial underpertomiance affecting Ser¥￿e quality and property maintenance. Mhlgatlon: operat￿n$ continue to woduce svfficient fuThls to support seryKe excellen￿ and property upkeep. Artnualffinancial budg￿ approved bythe Board. wilh quarterly reporting to track performance. Monthly operational in￿￿ele%pendrtVre Ye￿rtIng to SMT and house stsff. Occupanty levels adopted as the primary KPI-active tTrcked and reFK)rted. Facilrly Agreement in plac? with Chartty Bank and Bis Society Capital, secured after modelling to G2060. auarterfy covenant perfDnnance re¥￿w5 are conducted inteMal￿ and extemally Re¥￿W OfT￿asury and In%*stment Policies Reputatlonal Rlsk Rlsk: Threats to reputstion from poorsafe8uardin& falling seNi standaids. or detefw)rntlng housin8 condttiors. Continuous service monitorin8 by SMT. supported b¥ the 8oard. Operating Policies maintained and enacted. including Housire Ombudsman complaint handling code 0mplian￿. Rotwst safeguarding policy in place for res￿entS and staff. Page 7 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Art[￿e Board engagement with Abbeyfield Society at a national level. Independent rnaintenance sur¥ey commissioned- 10- year planned rnaintenan￿ prr*dramme adopted, wsth review underway. People Risk Risk: OrEanisatKJTral effectNeness may be compr0rn￿ed wiihout skilled and supported stafl and volunteers. Central fO￿S on staffhenant wellbein8. PolicEs and pru¢edures in pEacè to uphokl htahh and safety standards. Polic￿ and pr[)CedU￿ in place to en5Lire Employment rydhts and equality Committed io the ti¥in8Wa8e FoundatK)n recommendat￿n The board ￿vIarty evaluates rts composttK•n and diversity to ensure adequate oversi8ht and strategic sup￿rt. The Charity maintains a reser4es polity to ensure financial resI%en￿ and continuity of servi￿. Unrestricted cash funds not designated for speofK use are hekl at a level equr4alent to at least three months, antKbpated Operati￿ expenditufe. The Board considers th￿ level of reserves 5uffKient to safeguard core a¢trvitles in the ￿efit of a stgniflcant drop In Income. allowlng t5me to explore alrernatfve fundSng soUr￿S or operath)nal adjustments. Theadequacy of reserves LE le¥￿ell quarterty bythe FInan￿su1)-c0MmrtIee, which reFK•rts di￿rt￿ to the full Board. In addition to this core policy, the Board has dscussed the need for a supplementary provlsM)n relatingto HobJenhur5t. Gwen the increased risk of latent defects fo15owing the liquidathjn of the maln contractor. a ihorough investigation and remedial wor*s have been compleied. However, recognising the potential for I￿u￿ issues. the Board prokK￿$ setting aside a sum to it)itiate a sinking fund for Hol(knhur5L Thi% fund woukl Ordinari￿ be built up over time to cover long-terni rnaintenarKe and unforeseen cctsts associated with a new buiklin& As of 7 August 2024. the Board has agreed to designate £550.1￿ as operatiorbal reserves and £450,C*XJ specificallyfor Holdenhurst. Page 8 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Fknandal Re%4ew Abbeyr￿Id Swlh Down5. financial r￿SItIon stabilised during ihe year. sUPPOrted ty knproved occupancy, rnodest income growth. and cost control. Total turr#)ver increased to £2.13 milllon 12024.. EI.95 mlllionl, while operatin8 expenditure rose to £2.2 million 12024.. £2.08 million). reflecting innationary pressures linked to cost-of-livin8 increases, sustalned Investment in stalfJn& and repairs and improvements to the hous1￿ pmperties. The operatfj￿ def￿[t narrowed to E77.2K 12024= £134.7KI. driven by cost containment and improved ¢xcupancy. Byyear-end. ASD ach￿ed 95% occupancy ￿lo$S its avaikble hwsine siock, enhancing rental income and reducing void losses. This 0￿ratIonal re(y)very contrilxjted to a P05itivE EBITDA, indicatir#J that core artivitTres are ￿neratI1￿ (ash before h'nancing and depreciatlon. Cash at bank stood at £60.IK. with an addrtional £1.74 million held ITr short-term deposits. Long- term liabilities of £4.42 mlllon (excluding housin8grantl represent a manageable POSit￿n relatNe to r*t assets of f 10.44 million, wilh £2k in ￿$tricted fund5. A p05t-balance sheet event. the sale of Abbeyfield Alfriston, generèied an addrlional £625K before kgal fees. further strengthenin8 the company's liquidity. Abbeylield South [￿Wn5 remain5 a goin8 concern, with ￿n￿Str￿ted reseNes and Interest Income from deposits prov•Jing resilience against 5hort-term fluttual￿n$. The organisat￿n continue5 10 review its strategic optb)rt% ?rnd remains committed to maintainir¥ Safe. secure housln8 and responsrble financial mana8ement. The Board recogntsethai,followin8 oursubstantialgrowth of 112%. ourturrentdevelopment capacity remains constiained. While core operations are generat[1￿ posltNè cash flow. operatin8 Costs continue to ex￿ed tumover. and infiat￿nary pressures persist. The Board further aCkrth1￿dg￿5 that fijtu￿ expansion must be approached with 5trdtegK caution. Investments will be con5Klered onty where they align wrih ASD'S charrlable wdlues. operational stren8ths, octupancy perforrnance, and long-term sustainabihty. The organi5ation rernains focused on sequencing growth carefulty to avoid 0¥e￿¥tenS￿￿ and continues to monitor financial and operational indiL3tors to ensure that any deveknpment is both vuable and aligned wtth ihe charity'5 purpose. Value f¢Y ￿￿1•Y Slatement-year Ended 31 2025 Value for Money IVFMI is aboLrt ￿ng effedNe in ￿lW we plan. manage and operate the charity. 1¢ requires rnakiryg the besi use of the resources available to us to provide high-qualrty homes that enhance the quality of &fe lor our tenant5. along wtth excellent services and support. Page 9 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 The Re8ulalorforS(Kial Housing IRSHI ￿sued avalue for Money Standard inApril 2017 and a Techn￿al Note in Apn'l 2018. Seven rnetr￿S We￿ identified against wh￿h social housing pro¥Klers are expected to repLTrrt their perforniance In the annual ￿￿K)rt. The latter document acknowledges that the ￿tric$ may noi be suftable for all provKlers. and any infiuencing f¥tors should be explained in the commentary. RSH MetrK 2025 2024 Relnv•stmert % 0.6% New supply del￿￿ed % 0.0% Gearlng 16.2% 15.8% EBifDA MRI Interest tover % 63.9% 43.2% Headline soclal housin8 Cost per unit 18,446 16.9( Operating Maryin % A. Operating Margirn lsotial housing lettings ontyl X B. Operatlng Margin loverèlll% -3.6% Retuwn Dn capital empbyed IROCE) % -0.4% -0.7% Basls for Metrics l. Reinvesiment %- inveslment in proF*rties as a X of total properties hekl. l New suppty delrvered- new social hwsing units delNered . total units owned. 3. Gearin8 %- net debt . housing propert￿. 4. EBITDA MRI Inte￿St cover %- EBITDA-. intertrt ptyablÈ. 5. Headline social housing cost per unit- Costs - units1126). 6. Operating mar￿n %- operatinÈ suwuslldeficitl . turnover. 7. ROCE %- operatin8 surplus ". total a55ets less current l￿bIlItIes. Commentary Reinvestment 105e rnode5tty to 0.8% In 2025. up from 0.6% in 2024. Whlle stlll below sector avera8es, this irKrease reflerts our cautious return toasset in¥estment following a period of rapid organisational growth. Our forus rernains on maintaining and improving existing 5to¢k. with relnvestmeni dectskjns guided by tenant need, safety. and long-temi valuè. No new hoffles were defNered in either 2024 or 2025. This demonstrate5 J Str*egic pause followingour 112% growth between 2022 and2024. alk>wing us to wn501idate operations, embed quality standards, and ensure sustalnable seNke dellvery acTOSS our expanded footprint. Pap10 ABBEYFIELD SOUTH DOWNS LIMrfED REPORT OF THE BOARD OF TRusfEES FOR THE YEAR ENDED 31 MARCH 2025 Gearing increased sliEhtly to 16.2%. up from 15.8%. rernains cornfortab￿ bel¢wi sector risk thresholds, $￿nrfYInE prudent boTfowin8 10 support operational rÈslI￿n￿. Our EBrtDA MRI Inierest tover imKxoved sv8nificantty to 63.9%. up from 43.2% in 2024. This marks positive shift in cash fltrw atmj operdtK)nal efficiery. Our headline Social housir¥ cost per unrl rose to £18,446 in 2025, refiectinB both infiationary pressures and the distinrtNe nature of our seryKe Tr￿de1. Thls enhanced rnodel Inevttably cardes hlgher O￿TatIng costs. txrt It dèltvers sEnific•nt xna1￿. tt adheres to the principal recommendations O￿lIned in the 2015 Nat￿nal Hous1￿ Federal￿n Code of Governance, ensuring sound leadership, financial over5i8ht, and accountability across all actrvities. As a smaller charity. rt also adheres to the pri￿l￿e5 of the Co(Je of G￿ernan￿ for Smaller Charities. Thts dual algnment supwts Page 12 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 proportionate, Miss￿n-fOr￿sÈd govemance while upholding sector best pwtts. Statement of ReSp￿s￿bIlItIeS of thè Board of Trustees Tn￿tee$ are reskxynsible for prer0f11￿ the Trnstee￿ Report and the financial statements in a¢cordance with applicable lew's1at￿n and Urnite(l Kingdom Accounting Standards (UK General Accepted Accountin8 PrartI￿1. Company law and social ￿￿Sing le8i51ation require that financial statements be prepared for each fw)ancial year. In accordance wf(h company law, the Trustees must not approve the financial statements unless satisf*d that they provide an acujrale and fair view of the charftable company's affalrs, Induding Its incomire resources and 1heir applicatioTh, as well as the incoffte and expenditure foi that periDd. In preparin8 these financial statements, the TNstee5 are required to.. Select suitable xcounting polKies and appty them con5i5tentty Make reasonats￿ and pn￿eTht judEements and accountire esiimates Prepare the finandal statements on a 801ng-co￿ern basls unbess tt 15 Inappropriate to presume the tharitabk tompany will tontlAue in tyeration The Trustees are also responslblefor malntalnln8 adequate accountlng records that are sufflclent to.. Accurate￿ refiect and explain the charitable cornpany's trarfjart•)n5. Disclose its financial posiéK)n wrth rea50nabk accura¢y at any time. Ensure cornpli4nre wlth the Cgtnpanps Alt 2(w)6. Housing and Regenefatknn Act 2￿)8. and the Accounting Dirertion for Re¥islered Provider5 of So(ial Housing in England 2019. In addltlon. Trusiees a￿ resw)nslble for safe8uardln8the &sets of thè charftabse company and tsklng reasonable steps to prevent detect fiaud a￿1 ot￿r irregularities. Statsm•nt of Dlsdosurn toth• Audltor Each Trustee in office at the date of approval of thls ￿pOrt confimis th*: So far as they are aware. there is no ￿thnt audit infomiation of whKh the charitfs auditors are unaware. They haveiaken all wsonable steps ne￿Sarytts ensure they are aware ofsuch infomiatlon, and to establtsh that the charitvs auditors a￿ aLso aware of it. Page13 ABBEYFIELD SOUTH DOWNS LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Audlror The Trustee5 res9￿ed to reappoint Lindeyer Franci5 Ferguson Lirnited as the company's auditor for Ihe year ènded 31 March 2025. In preparing thi5 report, the Trustees have taken a￿antage of the small companies. exemptions provided ty sett￿n 415A ofthe Companies Art 2¢￿. This reFk)rt was approved the Board of Trustees on 2 October 2025 and signed on their behalf by.. Mr lan Thomas Chairman of Trustees P8ge14 ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDrroRS' REPORTTO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED Oplnl We have audited the financial statements of Abbeyf*ld Swth Downs ￿mited (the 'charitable cornpanVI for the year ended 31 March 2025 whith comprise the statement of comprehensive i￿Ome, the slatewnent of chan8es in reserves, the balan￿ sheet, the statement of cashflows and r￿te$ to the finanu)l statement5. including sEnrficant accounting polKtes. The financial reporting framework that has been applied in their preparation is applKable law •nd Untted Kingdom AccountlnÉ Standards, including Financial Reporting Standard 102 The FiThan¢ki1 Reporting Standard applicable in the UK and Republtc of Ireland (United Kinglknn Gelleralfy Accepted Accountin8 Practicel. In our oplnhjn the financial ststements.. give a trne and fair view of the state of the assocMtit)n's affairs as at 31 March 2025 and of rt5 Incorne and expendrtUTe for the yearthen ended- have been property p￿pared in ￿(OrdanCe wth Unlted Kin8dorn Generdlty A¢opted Axounting PractKe,' and have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and RegeneratK)n Act 2008 and the Accounting Direction for private registered Pro￿￿e[S of social housin8 in En8land 2022. Basls for oplnlon We conducted our audit in accordance with Intern4tiDnal Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our reswnslbllrtks under th0￿ rtandard5 a￿ further de5crlbed In the audltor respon5ibilr(ie5 forthe audit of the finènaal Statements section Of our report We are independent of the aSs￿lation in accordan￿ with the ethical requirements that are re￿ant to our audit of the financlal staiements in the UK, includin8 the FRCS Ethi(Jl Stsndard, and we have fvlfilled our othèr ethKal re5wn5ibilities in accordance with these requirements. We believe that the audit evidell￿ we have obtained is sufficient and appropriate to provide a basts for our opin￿n. Cathtlusions relat1￿ to 8cth)g concern In auditing the financial statements. we hae coniludell that the tru5tee5' use of the 80in8 concern basis of accounting in the preparatK)n of the finan¢41 ststements 15 appropriat Based on the work we have pèrfonned, we have not wlentlfied any material Un￿rtaIntleS relatln8 to ents or conditKins thal, individually or collectivelyi may cast s￿n￿1Cant dc￿bE on the assc*iation's abiltty to continue a5 3 going concern for a period of at kast twehe months from when the financial staiements a￿ authorised for issue. Pa8e 15 ABBEYFIELD SOUTH DOWNS UMITED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED Our responsibilities andthe res￿)nSI￿1it￿ of the trullees with respe¢tiogoi￿ror￿erD are described in the relevant sections of this ieport. The other information comprises the infomiation i￿l￿ded in the annual report, other than the financial statements and our audltorfs rep)rt thereon. The tfU5tee5 are re5poTrsible for the other information contained within the annual report. Our opinion on the financial statements does not coverthe other inforrnètion and. except to the extent otherwise explicitfy stated in our ￿p)rt we do not eXp￿$S any fomi of assurance condusion thereon. Our responsibility is to read the other infomiation and. in doing 50. con5Kler whether the Diher Information is materially inconsstent wrth the h"nancial ststernents or our knowle(*e obtained in the course of the audth, or otherwL%e appears io ￿ materialty misstated. ff we Identify such material COns￿enc1es orapparent material mi55tatements. we are required to determbne whether this gives rise to a material m$staternent in Ihe financial statementsthemselves. ￿. based on the work we have performed. we condude that theie is a material misstatÈrnent of this other information, we are requlred to retK¢rt that fact. We have Th)thiTr8 to reF¥)rt In this re8ard. OpiThons on other matters prestrdjtd by tht Ctynpanies Art 2￿6 In our opin*)n, base(l on the work undertaken in the ¢ourse ol the audil: the information 8Nen in the report ol the board of trustees for the financial year fof which the finanaal statements are prepaTrd s con5i5tent with thefinancial statements- and the report of the board of trusteès has been wepared in ar£Ordan￿ with applicable legal requirements. Matters on which we are requSred to report by exception In the light of the knOw￿dge uNlerstanding of the Charitab￿ company and its environment obtained in the courseof the audit. we have T¥Jt identified m*eiial misststements in the report of the ard of trustees. We have noihlngto reFM)rt In respÈtt of the folbwlng matters in relation to wh￿h the Compan*s Act 2￿6 requires us tts rew)rt to you if, in our opinw)n: adequate accounting records have rnt been kept. L)r returns adequate for our audit have not been rèceNed from braThd￿$ not Vi51ted by us,. or the financial statements are r#)t in agreement with the accounting records and rpturn5,' or Page IS ABBEYFIELD SOUTH DOWNS LIMITED INDEPENDENT AUDrroRS' REPORT TO ThE MEMBERS OF ABBEYFIELD SOLrrH DOWNS LIMITED ¢Èrtain disclosvres of directors. remuneratK)n spectfied by law are not made: or we have not receTried all the infom)ation and èxplanatitins wè requye for our audit: or the board were not entftled to p￿pa￿ ihe financial Statements in accordance with the small companies regime and take advanta8e of the small companies, exemptions in p￿parIng the dlrectors, report and from the requirement to prepare a strategic report In addition. we have nothi￿t0 re￿)rt in resp*rt of the followlng matter where the HouslnB and Regeneratbn Act 2CM)8 ￿￿￿Te$ us io reporr to you rf, in our opinK)n: a 5atlsfattory System of control overtransart￿)rts ha5 not been maintained. Responsibiktie5 of the Imwrd As explalned mo￿￿lIty in the board's respons￿111￿5 Statement the board Iwho are also ihe dlrectors of the asscn Art 2￿8, and the Accountlng Directb)n for PrNate Re8lStered Providers of Social Housing 2019. and the prO￿dureS that management adopt to ensure compliance, includin8 those relaling to the HousSng SORP 2018. We have also Identi￿ other laws and re8uLaiioAS that do h￿e a dirert effea on the amounts or dlgclosures within the financial statement5. but for which cOmpl￿nce is fvndamental to the charlty's operations and to avoid material penaltie5, indud1￿ GDPR, health and safety, emlknmenl law. and fundraising regulations. Having reviewed the laws and regulations applicabk to charrty. we de5iBned and perfom)ed audit pro¢edures to obtain suffrcient appropriate audrl evidence. specifKa1￿, we.. Assigned an engagement team to the audit with particular familiarity In deallng with registered providers of social housin Obtalned an understanding ofthe ¢harWs procedures for er￿Uring compliance with laws and regulations,. Obtained and reviewed internal and procedure dowments: Made enquirie5 of manaBernent and the trustees re8afding whether they were aware of any actual or su5r*rted inodentes of non-complian￿ with laws and regulation5: Obtalnèd and reviewed meetlng mlnutes: Reviewed legal expenses acccMJnts for lThjkaI￿ns of any kKJssible non-corrpliance- and Reviewed the completeness atturacy of any di5dosures made in the financial statements. We assessèd the susceptibiltty of the charity's finanaal statements to material mi5ststernent, Includi￿ considerin8 how fraud might occur. Thiswas perfomied ty: We obtalnedthe Board of Trustees, assessrnent of fraud r￿k and enquirèd as to any known or SU5PeCted instances of fraud,. We consKlered whether management have intentives and oprA)rturnities to manipulate fjnancial results lincludir￿ Ove￿￿1ng controlsl and detemiined that the key ri5k5 related to the non-complian￿ with the Housln8 SORP 2018 in terms of comwnent ac¢tsunting in previous years, completeness of intome. COrn￿￿tenesS ol credr(ors, non-depreciation of Pfoperties in prevK)U5 year5 and the ri5kof rnanaeement override. We obtained an understandingof intemal control ￿lL￿arrt totheaudit in order to designaudit procedu￿5 that are appropriatè In the circumstances. but not for the purp)se of expresslng an opinion on the eftectNeness of the charitvs inlemal control- We tested journal entri& to identify unusual transart*ons- and We designed and perforrned audit procedures to obtain suffirient appropriate audti evTrdence r￿ardir8 Cornplian￿ with laws and re8ulat*)ns, inckKling enquiry of the Board of Trustee5. review of minute5 and correspondence. and ￿¥*W of the completenes5 and accuracy of d￿lOsUre5 made in the financial statements. Page 18 ABBEYFIELD SOUTH DOWNS LIMtfED INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ABBEYFIELD SOUTH DOWNS LIMITED A further descriPt￿n of our reswnsibilrtvèsforthe audit of the financial staternent5 is located on the Financial Reporting Council's website at= W￿.frc.o auditorsres nsibilrties. This description fomis part of our auditorfs reFX)rt. Use of our report This le￿rt is made s¢)letyto the compan(s members. as a body. in accordan¢e with Cl)3pter 3 of Part 16 irfthe Companies Act 2[116 and Sert￿n 137 of the Hou5in8 and Re8enerdlion Att 2LU. Our audit work has been undertaken so that we mi8ht state to the companlls rnembers those matters we are required to stste to them in an audrtorfs report and for no other purpose To the fvlle5t extent permltted by law, we do not accept or assume reswnsSbillty to anyone other than the company and the companvs members as a bc¥fy. for our audrt wcrfk for this or for the opinlons we have mied. Jon3th ealey BA F￿(SenIor statvtoryaudrfiorl for and on behalf of Date"S Ccfrs￿ Llndeyer Ffancis Fèrguson Limited Stat￿ory Auditors North House 198 High Street TontrNid8e Kent TN9 IBE Page 19 ABBEYFIELD SOiThH tK)WNS UMITED STATEMENT OF COMPREHENStVE INCOME FOR THE YEAR ENDED31 MARCH2025 iot* uNestdrteO Restrkted fur￿5 2924 Twal lufxls IQ25 fvThJ5 3024 2014f NOtÈ5 2,131.631 its1.621 1.945.2C6 operating￿paid[Iw¢ I22￿,789) (ZA￿7891 I2￿?9163) 12P79.8631 Op0Th￿nId0dCh1 I￿,168 {77,1681 (134h5 1134.65 Inte￿5¢receI￿￿b1e IrNeStrnent Inwme OthÈi ifits•ne Grftof asxètsfrom rffleryin8s¢cieves 73,636 31.144 73,6 31.144 33.77S 136.143 194 33,775 126.143 194 2228J03 zi SurFlusonordlnaryacthltl*sltsr **d totsitrynpr•lwnSrnllvm 27.612 17,612 51.7 Z353.75B The accounts*treapry(fvedbythe Bwd cITn￿￿ 20ctober202S Thoma5 Charm Page20 ABBEYFIELD SOUTH DOWNS LIMITED STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH2025 Totul BalarKe at I Wl IQ13 7919.654 236,737 ,156,391 Total cvrnprehen5￿ [r￿Qmefryt￿ year Tran5ferfrom endcNvmentre5er¥es 2251.75B 1253.7S8 13.3841 8•larKe at31 Mwch 2024*hd IAw112fj24 IOJ74.796 233353 IQ410.149 T￿81 tomprehÈn5Ne irwme for￿￿1 Transferfromendcwnerrt re5erbf5 27,612 27,612 13.3841 ealan£è at li M￿h 2015 10.205.792 229.969 10.437,761 Page Zl ABBEYFIELD SOUTH DOWNS LIMITED BALANCE SHEEr ASA T31 MARCH 2025 2025 2024 os re5tuted FLKed a5SÈts TarEible fixed assets Investments 17376,092 927,398 17.443,173 971,275 18,303,4 18.414.448 Current atsets Debtors Cash at bank and in hand Shortterm cash deposits Inve5trnent5 1.047 60.101 1,743,077 109.295 22.504 1,133,456 859.653 78,151 io 2.(K)2.520 2.093.764 Crèjitors.. amOW￿ fallino due wlthln one yew li 1305.4191 1320.029) Nel cment assets 1,697,101 1,773,735 Totsl assèts kn cwrert ￿a￿litIeS 20.CO),591 20,188,183 Credlttys.. arn￿nts falltbyduè aft4r on• ygar 19.56Uall 19,778,034) Net assets IOA37.761 10.410,149 Reseryes Incorne and expenditure re5erye Rèstricted Income and expenditure reserve Endowment reserves 10.205.792 10,174,796 2.C￿l0 233.353 19 229.969 IOA37,761 IOAIO,149 These accounts have been prepared in accordarKe wfth the provtsw)ns applKable to companies 5ubJert to the srnall companies. ￿lffle. The accounts were approved the Bo¥LI dTrustee5 on 2 October 2025 Mr l Thornas Chairman Company reglstra11on nurrt*r: l))7361511 Page 22 ABBEYFIELD SOUTH DOWNS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH2025 2025 2024 Netca5h ienerated fromoperollrq a¢tl¥l 223A71 2A76,104 Cash fflow from in¥estin8 acthAtlps Purchase oftsngible fixed assets Purchase OF Investments Investment income Interest receNed 1272.2341 11593,5451 11,049,42SI 126,143 33,775 Nei¢ash us•d In 11985981 12,483,053) Grants received Loans repald 167,6741 1147.5301 167,6741 119),0281 14ei Cash Pro￿e1 ty1ths*sVr18¥¢ti¥i 1215,2041 1257,7021 Net Incraise In cash and cash •qUha￿￿tsafid clw4È In funds 1 ￿9.931) 1264,6511 Qsh and cash ewiv4entsat the beg1nn5￿ of the year L993,IC8 2,257,760 Cash and tash equivalentsat the end oltheyear L803,178 1,993,109 Cash and (ash ¢4ufrAlentsC0r￿ of: Short tem) cash deF*)Sits Cash at bank and in hand L743,077 f￿.101 859,653 1.133,456 L803,178 1,993,109 A. Aecondllatlon dnet cash generated from Operati￿ actl¥ltles Cash IIty*Tfrom operatlnganl Surplus forthe year 27.612 2.253.758 Adjustrnents lor non cash iterns.. OepwiatioN Increase in debtor5 IDecreasel[Increa5e in rredittJr5 Oecre3se in provisions Unrealiseé loss on in￿trn￿ts InvestmEnt income Loss on di5PD5al of fsxed a55ets 333.705 { 67.5431 { 14.610) 312.564 18.1361 107.236 129.4001 43,877 131.1441 5.610 Adjustment5 f(Yimiestin8 or finanun8 aCtMIi* Investment income Interest recÈivable 1126.1431 133,7751 173.636) Cash gentratedfrom op¢watln8 artmtles 223,871 2,476,104 Page 23 ABBEYFIELD SOUTH DOWNS UMITED NOTES TO THE FINANCIAL STATEMEKts FOR THE YEAR ENDED 31 MARCH 2025 Ac¢ounfjn8polk*s Legal st*$ Abbeyfield South Downs Limite(J is a priwate com￿nY limited by guarantee incorporated in England and Wales and 15 a registered housing pr￿lIde￿. The registered Offi￿ is Holderthut5t. Mill RDad. Heathfield. East Sussex, TN21 OGG. la Baslsof prgparatlm The flnandal statements of the charlty are prepared In acC￿￿nCe wlth UK Ge￿IallY Accepted Accountin8 Prartice (UK GAAPI including Finanrial Reporting Standard 102 IFRS 1021 and the Housing SORP 2018.. Statement of RLrommended Prattl￿ for Re￿'Stered S(Kial Housing Prowder5 and comply with the Accounting Direction for pnvate registered P￿￿derS of soaal housing In En8laThd 2019. The charity 15 public benefit entity as defined by FRS IOZ The accounts have been prepared on the historfcal cost Con￿nti￿, modified to indLhle certain items atlair value. The financial statements are presented in pourxls 5teding and roundedio the nearest pound. The principal a¢countin8 pcdiaes adopted are set out below. 13 Income Income is measured * the fair value ol Considerati(￿ received or receivable net of VAT. Tumover represents rent31 rec*¥a￿ in the year net of losses from voids. Rental incorne is recr*ni5ed in the period the rents fzll due. Income from govemment grants ts rLrLwSsed as turnover when the tharfry is entiled to the fvnd5, the receipt is wobable and Ihe arnount can be measured reliatAy. This is usually vthen a formal offer is made in writin& 1.4 Expendtture All expenditure is accEyJnted for on an accruals basis and ha5 been classified underthe heading5 that classify all ctssts relatéd tothe category. Expenditure is indusive ol VAT. Page 24 ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMEMrs FOR THE YEAR ENDED 31 MARCH 2025 A¢¢ountJn8 poli¢les I￿ntinued) 1.5 thiritable funts General funds are unre5trirted fivbd5 which are available for ￿ at the discretion of the trustee5 in rtherance of the Éeneral (*lectives of the Society and %thch have not been designated for other purposes. Endowrnent reser¥e5 are those reseD4es wthlth a￿ only expendable In accordance wlth the wlshes of the funder or regulatory body. Revenue and expenditure cannot be direttty set ￿ZIn$t endowment reserves but is taken thrO￿h the Statement of Comprehenslve Income. Tanglble fixed assets and depre¢la¥on Tanglble fixed assets, other than freeh(Ad land, arè initially measured at cost and subsequently measured at cost net of deweciation and any impairfflent losses. Hous1￿ PropÈrtlÈs Housing propertie5 are held for the provision of Social hOu￿rg or to otherwise provide social benefit. Housing properties are principalty prtjperties available for rent and are stated at cost less accumulated depreciation and impaimient losses. Costs incI￿￿e the cost of acquiring land and buildings. development costs. and Interest tharges lrnjjrred duriry the development period. Wort(s to existing propertles whlch replace a component that has t*en treated separatety for depreciation wrposes. along wlth those w0￿S that result In an increase In net rental intome o¥er the Ilves of the properties, thereby enhanarg the economic benefits ofthe assets, are capitali5ed. Depreclation is pro¥idei* on h￿l$Ing pror*rtiÈs. èxduthng land. so as io wiiie off the net cost less estimated residual value of each asset over its remainin8 estimated useful life. Major component5 are treated a5 separatrAe assets and depreciated over their expected useful economic lives ￿ the INes of the structure to which they relate. ff shorter, as follows: Freehdd bJildin85 Roof5 Window5 Itchens Bathroom5 fts Heatin8 5YStern5 50- 80years straight line 40- 50 years Straight line 25- 4Q years 5trai8ht line 10- 20 years straight line 10- 33 year$ 5tralght line IS years straight line 33 years straiBht line Page 25 ABBEYFIELD SOUTH DOWNS UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounti￿ polldes (¢oniinued Borrowng costs directly attributable to the acqui51tion. construction or produrti¢)n of qualifying assets, which are assets that necessarily tske a substantial period of tirne 10 get ready for their intended use, are added to the cost of those assets. until SLth time as the assets are substantially ready for their Intended Use. (*h•rflxed assets Depreciation is pmwéed ￿ otherfixed assets. so as to write off the nei cost less estimated ￿Sid￿31 valw of each asset over it5 remaininB esiimated useful Ilfe as follu4¥S: Ftxture5, f￿1r*S and equipment 10 years straight line Impairrn￿t offth•d ass•ts ts not measured at fair value are reviewed for any Indlcatlon that the asset may be irnpaired at each balance sheet date. Where indicators are identified, an a55essment for impaim7ent is undèrtaken comparlng the carrylng amount to It5 recoverable amount. Where the carry7ng amount exceeds its recoverable arnount. an impaimient loss is recognised in expenditure thrO￿h the stsiemènt of Comprehengve Incorne. 1.8 Cash and cash eqthfalents Cash and cash equivalents Ind￿le cash in hand. depostts hekl at call with banks, other short-tefrn liquid investments ￿th ￿[81￿al matu￿[l@S of three month5 or le55, 3nd bank over(Jral 1.9 Short tsrni cash depostts Short term cash deposit5 15 cash that ho5 been deposlted with orvainal maturities of more than three months but at the balance sheet date has a maturity of le$5 than one yeai. 1.10 flmndal Instruments The tharity only has fin￿0a1 instruments whith are da55ified as basicfinancial instruments. Short-term debt￿ and creditors are measured at the settlement value. Any losses from Impairment are reco8ni5ed In income expendftvre. Long-term debtors and credrf¢ors are measured at the Sett￿ment value. Any10$5es from impairment are recognised in incorne arKI experdrture. Loans and borrowings are Initial￿ recorded at the transaction price incjuding tr3n5acbon costs. Subsequently, they are measLred at amorti5ed c05t using the effective interest rate method. Page 26 ABBEYFI ELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMEKf5 FOR ThIE YEAR ENDED 31 MARCH 2025 A¢¢ounting pdicies (continwll 1.11 Retirement beneffts The Charity operated a defined contritrwJtion pension stherne. ContribLrtiOll5 are charged in the accounts as they becc*ne payable in accordance wrth the njks ofthe Scheme. 1.12 G￿rnMentsy4nts GovernrHent grants indude grants receryable from Homes England IHEI, local authorities, and other government organisations. Government g¥ar￿ received for hoL6irE propertie5 are recognised in income over ihe useful life of the h￿sing property 5tnKiure and, **thefe applicable, rts indr¥idual components lexduding larKII under the Kcrua15 model. Turntr4èr and costs 2025 2024 Rent receivable Sotial housing Gerneral housing Void losses Sooal housing Amortised governmentgrants 2.446.$01 30,621 2,046,845 26,368 {414.6601 68,074 1201.2591 68,074 Turnover from housing lettin85 2.130.536 1?40,028 Intome from other activities Sundry I,￿5 5,178 Total 2,131,621 1.945.206 Operatlng costs from sc*ial housin8 activrthes: Management expense5 Property maintenance and refurbishment costs Depreciatiun oFhou5ing properties Other costs 1.118.295 158,362 287,025 645.107 I,CKJ9,165 153,091 266,879 650,728 Total 2.208.789 2,079,863 Net defictt frorn housin8 activities 177.1681 1134.6571 Page 27 ABBEYFIELD SOUTH DOWN5 LIMITED NOTE5 TO THE FINANCIAL STATEMErirs FOR THE YEAR ENDED 31 MARCH 2025 Ioelltltllsurplus on ordIn￿ actIv￿leS 2025 2024 This Is stated after char8ing'. DeFxeciation of housing propertie5 Deweciaiion of other tangible assets Auditors, remuneration for aLbYit Au(Itors' remunerauon fw n￿-aUdIt services 287.025 46,680 10,8(KJ 5,886 266.879 45.685 11,700 5,400 si*Y¢osts ¥Rd k•y M￿￿m•nIpvs￿Thel 2025 2024 Wages and salaries Soclal security costs Other pension costs 643A71 39.346 16.654 628,416 38.621 14,456 699A71 681,493 Duri￿ the year redundanLy payments of £885312024: £Nill were made following the closure of Abbeyfield House, North Road, ￿lrIst0rb. The average numbw of employeesfor year based on mcffjthty headtwnt is as tdlows.. 2025 Numb 2C124 Number Housekeepir Administration 41 39 42 The average rwmber of employees fry the year based on full time equNalent was 1312024: 131 Pa8e 28 ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Board and key management personnd renwneratlon None12024: nonel of the trustees were reirnbJrsed for any expenses. A chlld of a trustèe was employed dudng the year. the totsl remur￿rItI0n, induding social seoJiSty and pension costs, for this employee amounted to£2.46712024- £Nill The total remuneratlon, Indudlng S￿la1 Security and pEn5ion losts. for key management personrel amounted to £155,76612024.. £159.2331. The Chief EKecutwe and General Mana8er ￿￿e 19%,6161 9,205.792 DesI￿ated funds Operatlonal Holdenhur5t 550,IXQ 450.000 550,000 450.000 Total desi8nated funds I,wo,ThJo I,OCK),000 Total unrestrided funds 10.174,796 2.236,401 12,208.7891 3,384 10,205,792 Deslgnated fvnds Transfers to desi￿ated funds represents funds setagde to be used as operational reserves and £450,CKKI speclficallyfor Hcddenhurst forthe flat rLMJf and the painted f350a board5. Page 34 ABBEYFIELD SOUTH DOWNS UMITED NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2025 19 EndNment ieserves Currentheor 8olonce at I Apri12024 Income Expenditure Tronsfers 8olcrnce ot 31 Murch 2025 Pem)anent endowmert Angus Lodge en¢lowment fund 233,353 13,3841 229,969 Prlof yeor Boltyn￿￿ti Apri12023 Incon Expendffure rronsftrs Bolontt t7t31 Mt7rch 2024 Pemtsnent endowment Angus LodÉeendowment fund 236.737 13,3841 233,353 The permanent endowrnent fund represents the funds of Awls LC￿le Trust. a linked charity of the bbryfield s￿jth Downs knrn￿l. that We￿ applSed In purchaslng 28.2% of the freehold land and bulldlngs at 3, 5 and 7 Cadogan Gardens Turbridge We115 IAbbeyfield HO￿). A transfer is rnade to income and expenditure reserve, in respert of depreciation ffl the property. Pa8e 35 ABBEYFIELD SOUTH DOWNS LIMITED NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31 MARCH 2025 20 Restrkted reserves Currentyeor Balgnce atl Apfi12024 Incon7e Expe￿lture Tronsftrs Buloncg ut31 Morch 2025 The Abbeyfield Worthing Societv 2,000 Prioryeor Bolunce ot I Apn12023 Income Expenditure Tronsfers Balance ot31 Morch 2024 The Abbeyfield Worthing S(Kiety 2,000 21 61fts of assetsfr¢m merylni so¢ieties The AbbEyAeld Worthin£ Total Freehold properties Fixed asset investments Current asset Investments Cash Other net liabilities 1,320,IJ(JJ 898.283 25,0 14,673 129.6531 1,320,000 898,283 25,000 14,673 129.6531 2,228.303 2,228303 In the prfjor year, The Abbeyfield Worthir¥ Society transferred its oper8tions to Abbeyfield south Downs Limited on 31 October 2023. Under the ternis of the agreement the freehold property and a cash swn were wfted to Abbeyfield 5￿th Downs. The 8lfts were included at falrvalue. Page 36 ABBEYFIELD SOUTH DOWNS UMITED DETAIiED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH2025 Z025 2025 2024 2024 Turno¥er Social houyThg lettin85 Gener31 ￿e￿S ￿nt Amort6ed government gr JThttry 2.031.841 30,621 68.074 1.085 1.845586 26.368 68,074 5.178 2.13L621 1,945,206 AdmInI￿ratIve*￿Per￿e5. mawemerrt Housestaff costs Staff training & weK3re Food and rther hNsehobJ co*s Water rate5 560.473 4.262 222,557 J3.012 J7.810 60,898 67,039 32.899 18.701 21,086 39.148 11.118 2,612 46,680 499,234 173.573 14.959 16.986 60.998 69,795 29369 14522 24.784 41ffj56 12,084 2I24 45,685 Insurance CleèninR Adverrisir Lifeline TelepPone Televlslon h"ceKe Depreckii￿n of fLXturesand f￿1 11.118.295) l l.C119,1651 Adminlstratfve expenses. ott*er Adrninistr*ive staff costs Printi￿. postage and 5tstion Traveifing expenses Le8al and professionalfees Aud￿or5. ￿D-aUd[tfees Audit fEe5 Affiliation lees bank char8es and interest Paid Service COntr￿ts Unreali52d bsseson Investments LossoTr disposal of fLxed assets Sundry expenses 178.419 11.267 3.J31 7,653 5.886 10.8(M) 31.253 327.C(12 15.532 43,877 5.610 4,626 205.1 12.943 4,Q35 29.417 11.7 16y6 334289 26220 4972 1645.1071 1650,7281 Repl1￿ and malnienan¢è Routine maintenarfe Dep￿CIat(C￿ of houskn8 propethes 15&362 287.025 153,091 266,879 l M5a871 1419,9701 Int2re5t r￿e1vak￿￿ Investment inco Gifts received Other incrffie 73.636 31.144 33,775 126,143 2228,303 194 104.780 2,388,415 surp11￿ lortheyear 27.612 2,253,758 Page 37