REGISTERED COMPANY NUMBER: 00738023 (England and Wales) REGISTERED CHARITY NUMBER: 220392 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 FOR ELM TREES RETIREMENT LIVING LIMITED
ELM TREES RETIREMEKf LIVING LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Page Report ol Ihe Trustegs 1 10 4 Report of Ihe Independent Auditors 5 to 8 Statement of Finan¢lal A¢tivitios Balance Sheet 10 Cash Flow Statement Notes to the Cash Flow Statement 12 Notes to the Finan¢lal Stst8m8nts 13 to 23
ELM TREES RETIREMENT LIVING LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the ¢harity for the year ended 31 December 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Pracb"ce applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffecb've 1 January 2019}. OBJECTIVES AND ACTIVITIES Objectivgs and alms The objectives of the Charity are set out in the Mission Statement. These include the provision and management of properties, amenllies and seNices which support independent living for those aged 55 and over. The Charity shall have the power lo do all things necessary, or expedient, for the fulfilment of ils objectives. The Executive Committee have paid due lo regard lo guidance issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and Performance Elm Trees Retirement Living IETRL) continued to provide a high standard of Servi to its residents during the period despite ever increasing living costs. Wages were increased in line with inflation and rents in line with the cost of living increase. All staff training is current and maintained up to date. All Policies and Procedures were vieWed and updated as necessary. All Health and Safety issues have been addressed. The Trustees regularly review the financial situation. Lloyd$ bank have remained very supportive during th8 year The CUpancY levels have ¢onts'nued to fall, going below 70¥0 for the latter part of the ye8r. They were particularly low in Myfanwy House. It would appear that the style of living offered in Myfanwy is not as popular as that of the other houses. This led the Trustees to sponsor an advertising campaign with organisalions who have responsibility for people who might be interested in this type of accommodation. The organisations included Hospitals, County Councils, GP Surgeiies, Community Centres etc etc. This resulted in only minor increased interest. The situation did not improve throughout the remainder of 2025. A full report is available. This led the Trustees to consider selling Mylanwy House. Portsmouth City Council showed a Strong interest, as the type of accommodation on offer ¢losely matched their requirements for adult social care. The Trustees accepted an offer and proceeded to rehouse the residents. Staff and equipment in their other properties in December. The bank agreed to cover the additional costs that are likety to be incurred as a result of these changes until the resulting funds of the sale become available. Revised cash flow charts have been prepared for the transition period and accepted by the bank. EtRL continues to seek suitable persons to become TrusleeslDirectors. Oversighl by the Regulator for Social Housing has reduced during the year as a result of the improved financial position resulting from the sale of Redbridge in 2024. the subsequer¢l reduction in the size Df the loans and the strong financial management taken by the Trustees. Note this report is filed with the Regulator. Public beneflt The trustees confirm that they have referred to thè guidance contained in the Charity Commission's general guldance on public benefit when reviewing the charity's aims and objectives and in planning future acbvities. The tnjslees refer to public benefit throughout this report. Page 1
ELM TREES RETIREMENT LIVING LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 FINANCIAL REVIEW The Ststernent of Financial ActNilies reports net expenditure of £13,156 {2024." net income £6,535) of which £nil12024.. £nill is restricted net expenditure. At the 31 $1 December 2025 the lotal unrestricted reseNes of the charity stood at £715.79512024. £2,307,355}, endowment funds stood at £1,734,697 {2024'. £1,734,697} and restricted funds of £nil12024.' £nill.Other losses includes an unrealised property loss of £1.578,404. Future Plans A Future StrategylActs"on Plan has been in place for a number of years which is regularly reviewed by the Trustees. Note.. The strategy is not an integral part of the Annual Report but provides confidence that the Trustees are actively managing the Charity going forward. The Trustees have considerable confidence that the sale of Myfanwy House will occur soon as the negotiations with Portsmouth City Council and their solicitors are very well advanced. The proceeds will be utilised to repay the bank loans leaving approximately £500k of cash to reinvest in the existing properties. Expenditure will decrease as costs associated with Myfanwy Holtse will no longer be incurred. Elm Trees Future StrategylActlon Plan. Issue 7.. 1. To review all 11 financial informalion, identify wsl savingslefficiencies,. expenditure increases etc. This includes Cashflow, Executive Summary, Aged Payables (legacy contraclsl and is provided for review and action at each Trustee Meeting. 2. Continue efforts to maintain occupancy levels. 3. Produce a budget and cashflow modelslplans covering 1 year 4. Maintain liaison with Lloyds Bank and provide regular updates to the cashllow forecasts. 5. Identify options for improving funding. 6. Review the implications of selling more properlies. eg Myfanwy House. House Valuatlons Jane Gillitt House - £1.2M b. Abbeywesl House - £750k c. Myfanwy House- £1.275M R15k Management Committfrg The Executive Committees has conducted its own review of the major risks lo which the society is exposed and systems have been established lo miligale those risks. Internal risks are minimized by the implementation of procedures for authorisation of all transactions. These procedures are periodically reviewed lo ensure that they still meet the needs of the charity. STRUCTURE, GOVERNANCE AND MANAGEMENT Goveming document Elms Trees Retirement Living Limited is a company limited by guarantee, having no share capital, governed by ils Memorandum and Articles of Association. The company was incorporated on 17 October 1962. It registered as a charity on S December 1963 wth the Charity commission. It also registered with the Regulator of Social Housing. In the venl of the company being would up members are required to contribute an amount not exceeding £1. Recruitment and appointment of new committee members A nomination for election as an ordinary member of the Executive Committee may be put forward.. al by the Executive Committee bl if accompanies by a signed statement from the nominee that helshe is willing to act as such. by at least o members of the society who are entitles to vote. The Executive Committee, which can have beeen three and eighteen member, administers the Charity. The committee have appointed a General Manager the day to operations of the Charity under the sUpeiS1On of the Executive Committee. The Committee have delegated authority of operational matters to the adminislralion staff. Page 2
ELM TREES RETIREMENT LIVING LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 STRUCTURE. GOVERNANCE AND MANAGEMENT Induction and trainlng of new trustees New comrnittee members undergo on orientation period to brief them on the legal obligations under charfty and company law, the conlenl of the Memorandum and Articles of Association, the committee and decision making and processes and the recent financial perfomiance of the charity. During the induction period they meet key employees and other committee members. Committee member are encouraged lo attend appropriate external training events where these facilitate the undertaking of the role. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00738023 {England and Wales) Ragistered Charlty number 220392 Registered offlee ELM Jane Gillel House 50 St Edwards Road Southsea Portsmouth Hampshire P05 3DJ Trustees C Rodwell J Wesl Mrs J Giles E Burns (resigned 8.7.2025) Audltors MC Audit Limited Statutory Audltors Lake House 2 Port Way Port Solent Portsmouth Hampshire P06 4TY STATEMENT OF TRUSTEES. RESPONSIBILttlES The tru51ees (who are also the directors of Elm Trees Retirement Lwing Limited for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the fi'nancial statements in accordance with United Kingdom Generalty Accepted Ac¢ounkn'ng Practice Iunited Kingdom Accounting Standards and applicable law}. Under company law the trustees must not approve the financial statements unless they are satisfied that they giv& a ttue and fair view of the slate of affaiTS of the charitable company and of the incoming resources and application of resources, including the income ar¢d expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates th81 are reasonable and prudent.. prepare the thnancial statements on the going concem basis unless it is inappropriate lo presume that the charitable cofflpany will continuè in business. Page 3
ELM TREES REllREMENT UVING LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 STATEMENT OF TRUSTEES. RESPONS181UTIES- contlnu•d The trusl88s ar8 responsile for keeping prop8r accountirvj records which disclose wlh reasonable accuracy al any time the financial positson of the thartsble cornpany and lo enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen for tan9 reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Iruslees are aware: there is no relevant audit inlormalion of which the eharitable ecAnpanYs audtiors are unaware., and the trustees have taken all steps that they ought lo have taken to make themse aware of any relevant audit informalw)n and to estsblish that the auditors are aware of that inft)mialKJn. AUDITORS The auditots, MC Audit LinNted, will be proposed for re4ppointrnenl at the forthcoming Annual Gener Meetlng. Approved by order ofthe board of tmstees on ..................... . and signed on its behaK by= Paga 4
REPORT OF THE INDEPENDENT AUDrroRS TO THE MEMBERS OF ELM TREES RETIREMENT LtVlNG LIMITED Opinion We have audited the financial statements of Elm Trees Retirement Living Limited {Ihe 'charitable company,) for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United tQngdom Accounting Standards IUr¢ited Kingdom Generally Accepted Accounting Practice). In our opinion the financial slatemenls.. give a true and fair view of the stale of the charitable company's affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been propedy prepared in accordan with United Kingdom Generally Accepted Accounting Practice-, and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audll In accordance wlth Internatlonal Standards on Auditing IUKI {ISAs {UKI) and applicable law. Our responsibilitie5 under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitsble company in accordance wtth the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to golng concern We draw attention lo note 24 of the financial stalemenls, which ir¢dicates that the charity incurred a deficit of £1,591,560 during the year ended 31 December 2025, and at that dale, the charity's current liabilities exceeded ils current assets by £138.693. As slated in note 24 and the future plans section of the trustees report. the situation. along with other matters set fourth in note 24 indicate that uncertainty exists that may cast doubt on the charity's ability to continue as a going concern if the sale of Myfanwy HoLsse does not complete. Our opinion is not modified in respect of this matter. In auditing the financial 51atemenls, we have concluded the Executive Committees, use of the going concem basis of accounting in the preparation of the financial statements as appropriate. Our responsibilityes and the responsibilities of the executive committee with respect to going concem are described in the relevant sections of this report. other infomiation The trustees are responsible for the other Informatlon. The other Information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infomialion ané, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audrt of the financial statements, our responsibility is to read the other informats.on and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo detemine whether this gives rise to a material misstatement In the financial statements themselves. If, based on the work we have performed, we Conclude that the is a material misstatement of this other informalior), we are required to report that fact. We have nothing to report in this regard. Opinions on other matters pr¢scrlb&d by the Companles Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Trustees for the financial year for which the financial statements are prepared 15 consistent with the financial 5taternents,' and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 5
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ELM TREES RETIREMENT LIVING LIMITED Matters on whlch we are requlred to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not idenb'fied material misstatements in the Report of the Trustees. We have nolhlng to rewrt in respect of the followng matters where the Companies Act 2006 requi$ us to report to you if. in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been receNed from branches not visited by us., or the financial statements are not in agreement wlh the accounting records and returns- or certain di$¢losures of trustees. remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to take advantage of the small companies exemption from the requirement lo prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustges As explained more fully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misslatemenl, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable ¢ompanVs ability lo continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either Intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ELM TREES RETIREMENT LIVING LIMITED Our responslbilities for the audlt of tho financial statements Our objectives are to oblairi reasonable assurance about whetherthe financial statements as a whore are free from material misstatement, whether due to fraud or error, and to issue a ReFX)rt of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Conducted in accordance with ISAS (UK) will always delecl a material misstatement when it exists. Misstatemènts can arise from fraud or error and are considered material if, individually or in the aggregate, they coukl reasonably be expected to influenc? the economic decisions of us8rs taken on the basis of these financial statements_ Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line wth our responsibilities, outlined above, to detect malenal misslalements in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of delecling Irregularilies, inclLtding fraud is detailed below.. From discussion with management and those charged with governance information about the entity is documented lo assess the activity within the organisation. We discuss managemenys assessment of risk in respect of irregularities, fraud and going concern. Based on these discussions and our own assessrnents we determined that the key risk areas were incomerecognition in respect of cul off issues concerning ticket sales and management override concerning the size of the Organisatn. We sel financial statement materiality level based on the level of income. As a not for profil organisation raising income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confimied duMented systems which have been designed lo act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identfy errors. The testing did not identify any material isslatements in areas lested. Audit subslanlive tests concluded no material errors over the key risk areas of income recognition and management override. The audrt considers the organisation is not exposed to matellal risk of error as a result of assessing laws andregulalions that are appropriate to the organisalion. Management assessed there is no going concern risk. The audit undertook a review of budgets, managemenlaccounts and the review of board minutes and came to the same conclusion as management. A further description of our responsibilities for the audit of the ffnancial statements is located on the Financial Reporting Council's website al www.frc.org.uklauditorsresponsibilitie5. This description forms part of our Report of the Independent Audit¢Jrs. Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ELM TREES RETIREMENT LWING LIMITED Use of our report This report is made solely to the charitable ¢ompanl5 members, as a boéy, in accordance with Chapter 3 of Part 16 01 the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitable companys rnember5 those matters we are required to slate lo them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's member5 as a body, for our audit work, for this report. or for the opinions we have formed. P Underwood (Senior Statutory Auditor) for and on behalf of MC Audit Limited Statutory Auditors Lake House 2 Portway Port Solenl Portsmouth Hampshire P06 4TY Date.. Page 8
ELM TREES RETIREMENT LIVING LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2025 2025 Total funds 2024 Totsl funds Unrestricted Endowment fiJnds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 500 500 Charltable activities Sheltered accomi)dation for the actsve elderly 452.777 452,777 526,173 Investment income 188 188 240 Totsl 453,465 453,465 526,413 EXPENDITURE ON Raising funds 151 Charitable a¢tivities Sheltered accomodation for the aclNe elderly 466,621 466,621 519.727 Total 466,621 466,621 519,878 NET INCOMEI(EXPENDITURE) other recognised galnslllosses) Gainsl{losses} on revaluation of frxed assets 113,1561 113.1561 6,535 {1,578,404) {1,578,4041 Net movement in funds {1,591,560) {1,591,560) 6,535 RECONCILIATION OF FUNDS Total fvnds brought fOard 2,307,355 1.734.697 4,042,052 4,035,517 TOTAL FUNDS CARRIED FORWARD 715,795 1,734.697 2,450,492 4,042,052 The notes form part of these financial statements Page g
ELM TREES RETIREMENT LMNG LlhlTED BALANCE SHE 31 DECEMBER 2025 2025 2024 Notes FIXED ASSErs Tangible assets 13 3,232,183 4.813,584 CURREvf ASSETS Debtors Cash al bank 14 980 5,550 S,917 37.799 6,530 43.716 CREDITORS Amounts falling due within one year 15 {145,2231 (131,724) NET CURRENT ASSETS {138,6931 {88,008} TOTAL AssEfs LESS CURRENT LIABILMES 3,093,4 4,725,576 CREDITORS Amounts falling due after more than on& year 18 (642.998) (683.524) NET ASSErs 2,450,492 4,042,052 FUNDS Unrestricted fvnds Endowment funds 715.795 1.734.697 2.307,35S 1,734,697 TOTAL FUNDS 2,450,492 4.042,052 These financkgl statements have been prepared in acrdanCe wf(h the provisions applicable to charitable companies subject to the small companies regie. Th financial statemonts were approved by the Board of Trust885 and authori$ for issue on - Trustee ustee The notes fomi part ofthes8 financial statem8nts Page 10
ELM TREES RETIREMENT LIVING LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Notes Cash flows from operating actlvftles Cash generated from operations Interest paid 35,198 127,2761 74,583 {80,664} Nel cash provided byl{used inl operating activities 7,922 16,0811 Cash flows from investing a¢tlvltles Sale of tangible fixed assets Interest received 711,000 240 188 Net cash provided by investing activities 188 711,240 Cash flows from Ilnanclng actlvltles Loan PaYmentS in year 140,359) {682,8121 Net cash used in financing activities 140,359) (682,8121 Change in cash and cash oquivalonts in the reporting period Cash and cash equlvalents at the b8ginning of the reportlng period 132,2491 22,347 37,799 15,452 Cash and cash equivalents atthe end of the reportin9 period 5,560 37,799 The notes form part of these financial statements Page 11
ELM TREES RETIREMENT LMNG LIMITED NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025 RECONCILIATION OF NET IEXPENDITUREYINCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2025 2024 Nfjt lexp8ndilureylncomo for the reporting perlod las per the statement of Financlal Activities) Adlustmgnts for. Depreciation charges Loss on disposal of fixed assets Interest received Interest paid Decreasellincrease) in debtors Increasel(decreasel in creditors 113,156) 6,535 2,996 2,998 151 (2401 80,664 {4,4421 111,0831 1188) 27,276 4,937 13,333 Net cash provld8d by operations 35,198 74,583 ANALYSIS OF CHANGES IN NET DEBT At1.1.25 Cash flow At 31.12.25 Net cash Cash al bank 37.799 {32,2491 5,550 37,799 (32,2491 5,550 Debt Oebls falling due within 1 year Debts falling due after 1 year 183.328} 1683,524) 11661 40,526 183,4941 (642,9981 1766,852) 40.360 1726,4921 Total 1729,053} 8,111 1720,9421 The notes form part of these financial statsmenls Page 12
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 ACCOUNTING POLICIES Charity informatlon Elm Trees Rel1ment Living Limited is a company limited by guarantee, registered in England and Wales. It is also a registered Charity and registered with the Regulator of Social Housing. The Society's registrab'on numbers and registered offe can be found in the Legal and Adrninistration section of these financial statements. Basi5 of preparlng the finan¢lal statements The financial statements have been prepared in accordance with the charivs Memorandum and Articles of Association, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102"} and the Charities SORP A¢Munting and Reporting by Charities.. Statement of Recommended Practh'ce applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191, the Statement of Recommended Practice.. Accounting by Registered SoGial Landlords 2010 and with the Accounlillg Requirements for Register Social Landlords General Determination 2015. The financial statements are prepared in steding, which is the functional currency of the charity- Monetary amounts in these financial statements are rounded to the neaffsl £. The financial slalements have been prepared under historical cost convention, mlf1 to include the revaluation of freehold properties. The principle accounting policies adopted are set out below. Income Income from charitable activities represents rental income and is recognised on a recewable basis. Voluntary income including donations and legacies that are of general nature are recognised where there is enbllement, certainty of receipt and the amount can be measured wth suffi¢ienl reliability. Such income 1$ only deferred when.. The donor specifies that the donation must only be used in future accounting periods- or The donor has imposed conditions which must be mel before the charity has unconditional entitlement Investment income is recognised on a receivable basis. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. it is probable that a transfer of economic benefits will be required in setdement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an a¢cruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to aclivities on a basis consistent with the use of resources. Expenditure on charitable activities includes the cost of Tunning the charity's properties and their associated support costs. other expenditure represents those items falling in the above category. Support costs are those functions that assist the work of the charity but do not dire¢Uy undertake charitable activities. Support costs include office costs, ffinance and goverrwce Costs. Tangible flxgd assèts The charitys freehold property is revalued in line with the requirements of FRS102. Depreciation is recognised so as lo write off the c05t or valuation of assets less their residual values over their useful lives on the following bases.. Page 13 ontinued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 DECEMBER 2025 ACCOUNTING POLICIES - Contlnugd Tangible flxed assets Freehold property Frxtures and frtlings No depreciation 10Ya on cost depending on the assets expected life Individual fixed assets costing £500 or more are capitalised at cost. The gain or loss arising on the disposal of an asset is determined as the difference bedveen the sale proceeds and the carrying value of the asset, and is recogni in the statement of financial activities. Freehold propety - the charity has a F(slicy of upgrading its properties to a standard that would In¢ase the properties residual value, so that a depreciation charge is inappropriate. Social Housing Grants Whe developments have been tinanced wholly by housit)g association grants, the cost of these developments has been reduced by the grant received. Vvhilst SHG has been treated as a grant it is repayable under certain circumstances, primarity followng the sale of a propety. Impalrment of fixed assets At each reporting end date. the charity reviews the Carrying amounts of its tangible assets to detemiine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the e0Verable amount of the asset is estimated in order lo determine the extent of the impaimenl loss {if any). Cash and cash equivalents Cash and cash equivalents include5 cash and short term IiqLrid investments with a short matLtrity of three months or less from the date of acquisition Of opening of the deposit or similar accounts. Taxatlon The charity is ex8mpt from corporab'on tax on its chatitable activities. Fund accounting Unrestricted funds can be US in accordance wlh the charitable objectives at the discretion of the truslees Restricted funds can only be used for particular stricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The Permanent Endowment Fund is restricted and represents the property known as Jane Gillill in Southsea which is occupied by the charity. The charity 15 entitled to the income bul the propety Is owned by The Jane Gillitt Home Trust, a uniting direction dated 23 March 2005 is in place. Penslon costs and other post-retlrement benefft8 The charitable company operates a defined contribution pension scheme. Contributions payable lo the charitable MpanY'S pension scheme are charged to the Statement of Financial Activities in the period lo which they relate. Employee benefits The cost of any unused holiday entitlemenl is recognised in the period in whh the employee's services are re*ived. Termination benefits are recognised immediately as an expense when the charty is demonstrably committed to terminate the employmenl of an employee or to provide termination benefit5. Flnancial instruments The chanty has elected lo apply the provislons of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, Of FRS 102 to all of its financial instruments. Page 14 continued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS- ¢ontlnued FOR THE YEAR ENDED 31 DECEMBER 2025 ACCOUNTING POLICIES- contlnu¢d Flnanclal Instruments Financial instruments are recognised in the charity's balance sheet when the charity becomes a party lo the conlraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the finallcial statements. when there is a legally enforceable right lo set off the recognised amounts and there is an intention to settle on a new basis or to realise the asset and settle the liabilty simultaneously. Baslc flnanclal assets Basic financial assets, which include debtors and cash and bank balances, are initially measured al transaction pri including transaction costs and are subsequently carried al amortised cost using the effectsve interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of Interest. Financial assets classified as receivable within one year are not arnortised. Basic financial liabllltles Basic fi'nancial liabilities, including creditors and bank loans, are initially recognised al transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rale of interest. Financial liabilities classrfied as payable within one year are not amortised. Debt instruments are subsequenly carried at amortised cost, using the effective interest rate rnethod. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of Dperations from suppliers. Amoun15 payable are classified as current liabilities if payment is due within orle year or less. If not, they are presented as non-currenl liabilities. Trade creditors are recognised initially al transaction price and subsequently rneasured at amotti5ed cost using the effective interest method. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the chariws accounting policies, the Executive Committee are required lo make judgements, estimates and assumptions aboLrt the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on hisloncal experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. The estimates and undertying assumptlons are reviewed on an ongolng basls. RevSslons lo accounting estimates are recognlsed in the period in which the esUmate is revised, where the rev15ion affects only that period, or in the period of the revision and future periods, where the revision affects both current and future periods. DONATIONS AND LEGACIES 2025 2024 Donations 500 Page 15 continued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2025 INVESTMENT INCOME 2025 2024 Deposit account interest 188 240 All investment income 15 derived from assets held in the United Kingdom. INCOME FROM CHARITABLE ACTIVITIES 2025 2024 Acb'vity Sheltered accomodation for the active eldedy Charitable rental ir¢come 452,777 526,173 RAISING FUNDS Othor Iradlng activities 2025 2024 Loss on sale of assets 151 CHARITABLE ACTIVITIES COSTS Support ¢0sts15ee note 8) Direct Cost$ Totsls Sheltered accomcdalion for the active elderly 432,868 33,753 466,621 SUPPORT COSTS Governance costs Finance Totals Sheltered accomcyjation for the active elderly 27,601 6,152 33,753 Support costs. included in the above. are as follows.. Finance 2025 Sheltered accomodalion for the active elderly 2024 Total activities Bank charges Bank loan interest 325 27.276 737 80,664 27.601 81,401 Page 16 conb'nued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2025 SUPPORT COSTS - ¢ontinued Governance costs 2025 Sheltered accomodation for the active elderly 2024 Total activities Auditors remuneration Auditors, remuneration for non audll work Legal fees 3.784 4,426 1,500 1.450 10.555 6,152 16,431 NET INCOMEI(EXPENDITURE) Net incomellexpenditurel is Stat after chargingl{credilingl'. 2025 2024 Audibrs remuneralon Auditors, remuneration for non audit work Depreciation - owned assets Deficit on disposal of fixed assets 3,784 1,500 2,997 4.426 1.450 2,998 151 10. TRUSTEES. REMUNERATION AND BENEFITS There were no trustees. remuneration or other benefits for the year ended 31 December 2025 nor for the year ended 31 December 2024. Trustees, expenses Expenses were reimbursed to a committee member of £402 for mileage. {2024= £399). 11. STAFF COSTS 2025 2024 Wages and salaries Social security costs Other pension costs 199,110 14,640 2.280 190,461 10,691 3,796 216.030 204,948 The average monthly number of employees dLJring the year was as follows.. 2025 10 2024 10 Staff The total remuneration and benefits of the key management personnel of the charity, which consists of the tNstees and the Group Manager was £64,17112024'. £63,828). Page 17 continued...
ELM TREES RETIREPIIENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2025 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unreslricled Endowment funds funds Total funds INCOME AND ENDOWMENTS FROM Charitable actlvltles Sheltered accomodation for the active elderly 528,173 526,173 Investment income 240 Total 526,413 526,413 EXPENDITURE ON Raising funds 151 151 Charltable actlvltles Sheltered accomodation for the active elderly 519,727 519,727 Tolal 519.878 519,878 NET INCOME 6,535 6,535 RECONCILIATION OF FUNDS Total funds brought foward 2,300,820 1,734,697 4,035,517 TOTAL FUNDS CARRIED FORWARD 2,307,355 1,734,697 4,042,052 13. TANGIBLE FIXED ASSETS Fixtures and ftttings Freehold property Totals COST OR VALUATION At 1 January 2025 Revaluations Impairments 4,803,404 21,640 11,600,044) 57,337 4,860,741 21,640 11,600,044) At31 December 2025 3.225.000 57,337 3,282,337 DEPRECIATION At 1 January 2025 Charge for year 47,157 2,997 47,157 2,997 Al 31 December 2025 50,154 50,154 NET BOOK VALUE Al 31 December 2025 3,225,000 7,183 3,232.183 At 31 December 2024 4.803,404 10,180 4,813,584 Cost or valuation at 31 December 2025 is represented by. Page 18 continued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS- contlnuad FOR THE YEAR ENDED 31 DECEMBER 2025 13. TANGIBLE FIXED ASSETS - conllnued Freehold property 5,612,317 (97,9131 (711.0001 1,578,404 Valuation in 2018 Valuation and impairment in 2023 Disposals in 2024 Valuation and irnpairment in 2025 3.225,000 The Jane Gillet House and Abbey West House properties were revalued during January 2025 by independent valuers Fox and Sons on a market value basis. The Executive Committee have carried out a review of this earlier valuation and have now updated the valuations within these financial statements lo reflect what they beIve lo be are current Maet values of the properties within their portfolio. The Myfanwy House has been revalued lo the offered sales price shortty after year end. The sales price of the propety is deerned lo be the most reliable fair value at year end. The historical cost of the properties if they were not revalued is £295,015. 14. DEBTORS." AMOUNTS FALLING DUE wrrHIN ONE YEAR 2025 2024 Trade debtors Prepayments 980 5,362 555 980 5,917 15. CREDITORS: AMOUNTS FALLING DUE WH1N ONE YEAR 2025 2024 Bank loans and overdrafts (see note 17) Trade creditors Social security and other taxes Other creditors Accruals and deferred income 83,494 1.100 4,175 19,800 36,654 83,328 7,497 5,020 35,879 145,223 131,724 Page 19 continued...
ELM TREES RETIREMENT LIVING LIMtTED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2025 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2025 2024 Bank loans (see note 171 642,998 683,524 17. LOANS An analysis of the maturity of loans is given below.. 2025 2024 Amounts falling due within one year.. Bank loans 83,333 83,328 Amounts falling due between one and two years.. Bank loans - 1-2 years 83,333 83,307 Amounts falling due befvleen kn and five years.. Bank loans- 2-5 years 250,000 249,984 Amounts falling due after five years.. Repayable by inslalmenls.. Bank loans more than 5 yeats by instalments 309,825 350.233 The balances above represent knvo separate loans all of which are repayable by monthty instalmenls and which are charged al a fi'xed and variable rale of interest. Secured debts The bank loans are secured against the Charitys three properties12024'. Three properties). 18. LEASING AGREEMENTS Minimum lease payments under non<ancellable operating leases fall due as follows.. 2025 2024 Within one year Befvrfeen one and five years 4,402 2,934 4.402 7,336 7.336 11,738 Page 20 continued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2025 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2025 Total funds 2024 Total funds Unrestricted Endowment funds funds Fixed assets Current assets Current liabilities Long lemi liabilities 1,497,486 6,530 (145,2231 (642.9981 1,734,697 3.232,183 6,530 (145,2231 {642,9981 4,813,584 43,716 {131,7241 {683,5241 715,795 1,734.e97 2,450.492 4,042,052 20. MOVEMENT IN FUNDS Nel movement in funds At 31.12.25 At1.1.25 Unrestricted funds General fund Revaluation reserve 1.164.620 1,142,735 11.591,5601 (426,9401 1,142,735 2,307,355 {1,591,5601 715,795 Endowment funds Property equity fund Revaluation reserve 124.217 1,610.480 124,217 1,610,480 1,734,697 1,734.697 TOTAL FUNDS 4,042,052 {1,591,5601 2,450,492 Nel movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and Movement losses in funds Unrestrlcted funds General fund 453,465 1466.621) {1,578,4041 {1,591,5601 TOTAL FUNDS 453,465 1466.621) 11,578,404} 11,591,560) Page 21 continued...
ELM TREES RETIREMENT LIVING LIMrrED NOTES TO THE FINANCIAL STATEMENTS - contlnugd FOR THE YEAR ENDED 31 DECEMBER 2025 20. MOVEMENT IN FUNDS- contlnuod Comparntives for movement in funds Net movement in funds At 31.12.24 At1.1.24 Unrestrictod funds General fund Revaluab'on reSee 1.158.085 1,142.735 6,535 1,164,620 1.142,735 2,300,820 6,535 2,307,355 Endowment funds Propety equity fund Revaluation SeNe 124.217 1,610.480 124.217 1,610,480 1,734,697 1,734,697 TOTAL FUNDS 4,035,517 6,535 4,042,052 Comparative net movement in funds, included in the above art as follows.. Incoming resources Resources expended Movement in funds Unrestrlcted funds General fund 526,413 1519.878} 6,535 TOTAL FUNDS 526,413 (519,878) 6,535 Revaluation reserve The revaluation reserve is reqLJired by the Companies Act 2006 and represents the amunt by which the Chartty's properties exceed their historical cost. 21. CAPITAL COMMITMENTS At 31 December 2025 the charity had no capital commitments (2024.. Nil). 22. RELATED PARTY TRANSACTIONS During the year. Carole Rodwell, one of the trustees lent the charity £19,800 {2024-. £Nil). Page 22 continued...
ELM TREES RETIREMENT LIVING LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnu¢d FOR THE YEAR ENDED 31 DECEPJIBER 2025 23. ULTIMATE CONTROLLING PARTY The charitable company is not under the control of another entity or any one individual. 24. GOING CONCERN As discussed within the future plans section of the Report of the Trustees, the Trustees have been assessing the future financial viability of the Charity given the deficit in the year of £1,592k {2024'. of surplus of £6.5k) and nel working capital deficit of £138,693 {2024.' £88,008) at 31 December 2025. The negative net assets position suggest that the charty can not meet their working ca'tal quiremenls. However, the management team have produced budgets that support the that the charity can meet their working capital requirements.This indicates the charity can continue lo operate for a further 12 months from the approval of these accounts and therefore the accounts have been prepared on a going cOnM basis. The golng concern is fvrther strengthened by the pending sale of the Myfanwy House. The proceeds will be used to settle outstanding loan obligations with the bank which will improve the net current asset position and cash flow. The cost of utilities associated Mith the Myfanwy House will no longer be incurred, further improving the profitability of the charity's operations. Page 23