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2025-03-31-accounts

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Registration number: 00702983 Homes England number: H0560 Charity Number: 222742

Abbeyfield Northumbria

(A company limited by guarantee)

Annual Report and Financial Statements

for the Period from 1 February 2024 to 31 March 2025

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Contents

Company Information 1 to 2
Report of the Board (including Strategic Report) 3 to 11
Independent Auditor's Report 12 to 15
Statement of Comprehensive Income 16
Statement of Financial Position 17
Statement of Changes in Equity 18
Statement of Cash Flows 19
Notes to the Financial Statements 20 to 37

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria Company Information

Registered office 40A The Grove Gosforth Newcastle upon Tyne NE3 1NH

Board of Trustees V R Wilkinson B Duell C L Eke A W Kay J C Woodman B J Ellis A J Craig G M Hodgson E Alexander D Fawcett

Chief Executive Mr P C Standfield

Key Management Personnel

The board consider the following to be the company's Key Management Personnel.

Mr P C Standfield - CEO Mrs C A Major – Director of Care and Quality Mrs N Glendenning - Manager, The Grove Care Home Mrs L Bunting - Manager, Castle Farm Care Home Mrs H Dixon - Manager, Alnwick Care Home Mrs P Lingwood - Manager, Armstrong House, Bamburgh Mrs J McStea - Administration Manager

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Abbeyfield Northumbria Company Information (continued)

Company secretary P C Standfield

Bankers Barclays Bank Plc Gosforth High Street 59 High Street Gosforth Newcastle upon Tyne NE3 4AA Investment Brokers Rathbone Investment Management Limited Earl Grey House 75-85 Grey Street Newcastle upon Tyne NE1 6EF CCLA PO Box 12892 Dunmow Essex CM6 9DL Auditor Azets Audit Services Chartered Accountants & Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025

The Board of Trustees presents their report and the financial statements for the period from 1 February 2024 to 31 March 2025.

Principal activity

The principal activity of the company is to provide accommodation, care and companionship for lonely or frail elderly people in accordance with the guiding principles of the Abbeyfield movement (Registered Charity No 1212467) and the ethos and mission of Abbeyfield England (Registered Charity No 1213760).

Members of the Board of Trustees

The Members of the Board of Trustees who held office during the period were as follows:

V R Wilkinson B Duell C L Eke A W Kay R MacKintosh (resigned 18 July 2024) P F Porter (resigned 15 April 2025) E M A Hardie (resigned 16 July 2025) J A Thompson (resigned 17 December 2025) J C Woodman M Anderson (resigned 15 April 2025) B J Ellis R R Baker-Cresswell (resigned 11 June 2025)

The following directors were appointed after the period end:

A J Craig (appointed 24 September 2025) G M Hodgson (appointed 24 September 2025) E Alexander (appointed 24 September 2025) D Fawcett (appointed 7 November 2025)

Applications for membership of the Board of Trustees are sought both by direct correspondence to individuals with relevant experience and skills and through open recruitment campaigns. Trustees serve for a three-year period and may be re-elected thereafter.

Registration of the Company

Abbeyfield Northumbria is a company limited by guarantee, a registered provider of social housing and a registered charity, governed by its articles of association. The company is registered under the Companies Act 2006 and the Housing and Regeneration Act 2008. The company was known as the Abbeyfield Newcastle upon Tyne Society Limited until 6th November 2023, during which year it merged its activities with three former Northumberland-based Abbeyfield Societies.

Financial statements and state of the company's affairs

The results for the period are shown in the Income and Expenditure Account.

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Achievements & Performance

Following successful completion of the complicated merger outlined in our 2023-24 report, this period included the first full year of combined operations and some significant investments aimed at positioning the charity for the more sustainable future envisioned by its four predecessor societies.

This activity was set against a difficult background for the charitable care sector as a whole, including a challenging environment for staff recruitment, significant additional employment costs following budget changes to employers’ National Insurance contributions, and ongoing societal changes that are increasing the age and dependency profiles of our residents as older people are enabled to remain in their own homes for longer than they used to.

During this reporting period we initiated programmes of major investment in staff, digitisation and premises improvements. Together, these sought to enhance the quality of the environment and services experienced by our residents, and the employment conditions for our staff team.

The resulting operating deficit of circa (£823,000) included over £500,000 of extraordinary expenses. These included £250,230 of consultancy/interim management expenses and exceptional staffing costs related to changes in working practices and operating culture. The balance was split between non-staffing post-merger expenses and reductions in fee income incurred during change implementation. The operating deficit was partially offset by better than expected investment income and otherwise funded by reductions in our unrestricted reserves, of which £5,349,669 remained at the period end.

The underlying operating deficit (c.£323,000) represents around 7% of our turnover. We had over £3.7m in unrestricted investments at the period end, which could sustain such deficits for several years, if required. We aim, however, to achieve a sustainable operating surplus as early as possible in the next few years and have no hesitation in preparing the accounts for this period on a going concern basis.

Post-merger harmonisation of operating and administrative practices and maximisation of economies of scale are key components of our strategy for achieving this. Good initial progress was made with harmonising administrative functions in the prior year. This continued throughout the reporting period and is expected to conclude in the spring of 2026, following digitisation of our HR management processes and introduction of a common pay progression framework across all sites.

During this period, we also made good progress with preparing for and commencing implementation of strategic investments in information technology systems and building improvements. Our aim was to both minimise the time spent by care staff on inappropriate administrative processes, and hence maximise their capacity for direct care tasks, and to improve the physical environment enjoyed by both residents and staff. Following completion of detailed condition surveys of each of our sites and Board agreement on a longer-term strategic framework, we developed a strategic approach to premises improvement and a detailed programme of planned and preventative maintenance, to inform investment decisions over a five-year planning horizon. This identified significant sums required for rectifying a maintenance backlog that had accumulated on each site as investment decisions were delayed during preparations for the merger. Since the period end we have also completed detailed assessments of the fire risk on each site and agreed an overlapping programme of investments to improve both fire safety and the physical environment of each home in line with our operational strategy.

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Our highest priority during this period was to improve and gradually standardise the pay and employment conditions for our staff. Key to this were: (1) the introduction of a comprehensive package of employee assistance and wellbeing support in August 2024; and (2) the harmonisation of employment-related policies and procedures, which was largely achieved during the period and has since been completed.

Predictably, some staff members were more reluctant to embrace changes to their operating practices and organisational culture than others. The latter half of 2024 therefore involved both increased staff turnover and higher-than-usual overtime and agency costs, especially in our home at The Grove. By the spring of 2025 however, these issues had been overcome and we were well placed to pursue further service improvements. These have continued throughout 2025/26, with a particular focus on re-balancing contracted care hours, in order to reduce overtime and agency costs, and improving both the quantity and quality of en-suite facilities available for residents.

In parallel with this, we were also able to resume strategic planning for improving or replacing the ageing buildings in both Bamburgh and Berwick and extending our services to reach a wider range of beneficiaries in North Northumberland. Since the period end, however, we have reluctantly been forced to conclude that the investment required to ensure continued regulatory compliance in Berwick until our longer-term aspirations could be delivered would not represent a reasonable investment of our charitable resources. Increasing dependency had reduced occupancy levels significantly during 2025, and admission of new residents had been delayed until planned maintenance works could be completed. We therefore consulted with the two remaining Berwick residents, their families/sponsors and our affected staff, around a proposal to cease providing supported living services in Berwick once suitable alternative arrangements could be made for meeting their needs. By December, both residents had been safely supported into residential care in the Berwick area. We have since reviewed the economic viability of upgrading the now empty premises and determined to dispose of the property. We are about to embark on discussions with the relevant authorities around potential future uses for the balance of the Social Housing Grant attached to the premises.

Despite the significant changes introduced during the period, our residents have continued to enjoy high standards of care, food and activities. The close personal relationships between residents and staff in each of our homes continue to ensure high levels of satisfaction. Regular feedback is received both via day-to-day contact and more formal periodic residents’ meetings. Very few complaints are submitted. Informal compliments continue to be received - and are now being captured and recorded more diligently than before. Since the period end we have updated our complaints policy and procedures to align more closely with the Housing Ombudsman’s Complaint Handling Code. We have also published our first Complaint Handling and Service Improvement Report, which is available via the feedback section of our website in line with the Code.

2024/25 was expected to be a challenging period of post-merger consolidation and increasing harmonisation. It did not disappoint in this regard. Staffing difficulties consumed more time and resources than we would have wished, but also brought to light some opportunities for service improvement and cross-site collaboration that might otherwise have taken longer to emerge. We entered 2025/26 with a clearer focus on the improvement opportunities yet to be grasped and a continued determined to deliver the enhanced service and sustainability benefits originally envisaged at the point of merger.

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Governance

The Board of Trustees adheres to the principal recommendations of the National Housing Federation’s code of governance insofar as these are considered applicable to an organisation of this size.

The Board meets four times per year and discharges its responsibilities with support from three Board committees: a Finance and Risk Committee, an Estates and Facilities Committee and a People Strategy Group. Each operates under specific terms of reference, with certain functions delegated from the Board of Trustees and recommendations outside their delegated authority requiring ratification by the full Board.

The Trustees serving throughout this period saw themselves as a transitional post-merger Board, with a key responsibility for positioning the company for a sustainable future. Since the period end, they have begun to implement a planned renewal programme, which has seen four trustees retire from the Board and be replaced by openly recruited new trustees with extensive expertise in legal, financial, business and HR matters.

The Chief Executive and Home Managers are delegated authority from the Board of Trustees for the day-to-day running of the respective homes.

Risk Management

The major risks, to which the company is exposed, as identified by the Board of Trustees, have been reviewed and systems have been established to mitigate those risks.

Value for money

Abbeyfield Northumbria is committed to maintaining a value-for-money culture. Continuing to unlock additional value through economies of scale remains a key focus of the integration and harmonisation programme outlined above.

It was with this in mind, and having exhausted all other potential avenues, that the Board of Trustees felt obliged to withdraw the supported living service previously provided in Berwick. It was also the driving factor behind its decision to implement a comprehensive programme of premises and service improvements aimed at ensuring the company continues to offer appropriate value for money to the residents it serves.

Insisting on securing best value from all our resources is essential to ensuring we can continue to deliver quality care, accommodation and support for all our residents. The Board of Trustees therefore remains committed to ensuring that value for money is considered in decision-making at all levels.

To assist in monitoring this, we have appointed a Director of Quality and Care since the period end, who now supports the Chief Executive in working closely with the Board to provide even greater assurance around the quality of service delivery and continuous improvement across all sites.

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Statement of public benefit

The Board of Trustees has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the Board of Trustees considers how planned activities will contribute to the aims and objectives they have set.

The Board of Trustees is committed to furthering the charity’s objects primarily by providing high-quality care and support to elderly users of the company facilities. It is the objective of the Board of Trustees each year to maximise the public benefit of the company in providing care and support, having regard to the extent of the company’s income and reserves, the cost of facilities and the ability of residents to make payments from their own resources.

Reserves policy

We have in place a formal Reserves Policy. This requires us to maintain £750,000 of immediately available reserves, which is considered sufficient to cover three months of running costs.

Investment funds are immediately available if so required. At period end the free reserves (which are the sum of net current assets less restricted, designated and endowment funds) were negative £224,489 (2024: positive £579,278). The reduction since the prior period represents deliberate reductions in net current assets in order to maximise returns from fixed asset investments.

Rathbones Investment Management provide the necessary financial management for the majority of our fixed asset investments. The two portfolios previously managed by Rathbones were combined during the period into a single portfolio with a growth objective aligned to the risk appetite of the Board of Trustees. A portfolio inherited from the former Berwick society was realised during the period and the proceeds invested with Rathbones. A small portfolio received from the former Bamburgh Society continued to be managed by CCLA throughout the period but is currently being considered for transfer, to maximise its potential returns.

Fair value adjustments in the investment portfolios are monitored in our monthly management accounts. Detailed analysis reports are provided by the investment managers periodically and are available on request at any time. Our Chief Executive Officer maintains regular contact with the Rathbones investment manager, who also presents a detailed annual review to the Finance and Risk Committee.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Financial review

The full details and analysis of our financial performance is set out in the main body of this report.

Key performance indicators

The company's key financial and other performance indicators during the period were as follows:

Unit 2025 2024
(Deficit)/Surplus as % of Total turnover % (12.81) 58.28
Occupancy at The Grove % 85.28 88.96
Occupancy at Castle Farm % 85.42 95.18
Occupancy at Berwick % 88.40 88.89
Occupancy at Bamburgh % 80.21 57.30
Occupancy at Alnwick % 91.86 93.37
Total Staff costs as % of Total turnover % 79.06 71.95
Food costs as % of Total turnover % 5.68 5.76
Light/Heat cost as % of Total turnover % 4.76 4.80
Voids as % of Housing Income % 13.92 10.00

Internal Control Assurance

The Board of Trustees has overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness.

The Board of Trustees recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the charity’s assets and interests.

In meeting its responsibilities, the Board of Trustees has adopted a risk-based approach to internal controls which is embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of the risks to which the company is exposed.

The process adopted by the Board of Trustees in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework includes:

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

The Board of Trustees confirms that there is an ongoing process for identifying, evaluating and managing significant risks faced by the company.

Status

The charity is:

A registered charity for tax purposes (No. 222742)

A company limited by guarantee (No. 00702983), having no share capital and with solely charitable objectives

Registered with Homes England as a registered provider of social housing (No. H0560)

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

Statement of Board of Trustee’s Responsibilities

The Board of Trustees acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Board of Trustees to prepare financial statements for each financial year. Under that law the Board of Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Board of Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the Board of Trustees are required to:

The Board of Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, Housing and Regeneration Act 2008, The Housing SORP2018 and the Accounting Direction for private registered providers of social housing in England 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board of Trustees acknowledges its ultimate responsibility for ensuring that the company has in place a system of controls that is appropriate to the business environment in which it operates. These controls are designed to give reasonable assurance with respect to:-

It is the responsibility of the Board of Trustees to establish and maintain systems of internal financial control. Such systems can only provide reasonable and not absolute assurance against material financial misstatement or loss. Key elements include:

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Abbeyfield Northumbria

Report of the Board (including Strategic Report) for the Period from 1 February 2024 to 31 March 2025 (continued)

The Board of Trustees has reviewed the effectiveness of the system of internal financial control in existence in the company for the period ended 31 March 2025. No weaknesses in internal financial control resulted in material losses, contingencies, or uncertainties which require disclosure in the financial statements or the auditors’ report on the financial statements.

Disclosure of information to the auditor

The Board of Trustees has taken steps that they ought to have taken as a Board of Trustees in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The Board of Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company was proposed and agreed at a recent meeting of the members.

Statement of compliance

The board confirms that this Report of the Board (including Strategic Report) has been prepared in accordance with the principles set out in Para 4.7 of the Housing SORP 2018 Update for Registered Social Housing Providers.

Approved by the Board on .................... 30 March 2026 and signed on its behalf by:

......................................... V R Wilkinson Chair of Trustees

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Abbeyfield Northumbria

Independent Auditor's Report to the Members of Abbeyfield Northumbria

Opinion

We have audited the financial statements of Abbeyfield Northumbria (the 'company') for the period from 1 February 2024 to 31 March 2025, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), the Housing and Regeneration Act 2008, the Statement of Recommended Practice (SORP) accounting by Registered Social Housing Providers 2018 and the Accounting Direction for private registered providers of social housing in England 2022.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with 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 to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Independent Auditor's Report to the Members of Abbeyfield Northumbria (continued)

Other information

The Board of Trustees is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the report to the board.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the Board of Trustees responsibilities (set out on page 12 and 13), the directors 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Independent Auditor's Report to the Members of Abbeyfield Northumbria (continued)

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiries with management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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Abbeyfield Northumbria

Independent Auditor's Report to the Members of Abbeyfield Northumbria (continued)

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: compliance with Care Quality Commission, UK Companies Act and the Housing and Regeneration Act 2008.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

30 March 2026 Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Statement of Comprehensive Income for the Period from 1 February 2024 to 31 March 2025

Note
Revenue
3
Operating expenses
4
Other operating income
5
Operating (deficit)/surplus
6
Gain on financial assets at fair value through profit and loss
account
Income from other fixed asset investments
Other interest receivable and similar income
7
(Deficit)/surplus for the financial period
(Loss) / gain on revaluation of other assets
11
Total comprehensive (deficit)/income for the financial
period		 2025
£
4,431,156
(5,280,174)
25,808
(823,210)
189,960
83,325
5,343
(544,582)
(22,901)
(567,483)		 2024
£
2,631,406
(2,817,710)
1,633,843
1,447,539
12,465
69,648
3,877
1,533,529
86,411
1,619,940

The above results were derived from continuing operations.

Included within other operating income in 2024 is an amount of £1,440,298 relating to the transfer of assets from the newly merged organisations.

30 March 2026 Approved and authorised by the Board on .................... and signed on its behalf by:

......................................... V R Wilkinson Chair of Trustees

The notes on pages 20 to 37 form an integral part of these financial statements.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

(Registration number: 00702983) Statement of Financial Position as at 31 March 2025

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Investments
13
Cash at bank and in hand
Creditors: Amounts falling due within one year
14
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
14
Net assets
Capital and reserves
Revaluation reserve
18
Restricted reserves
18
Unrestricted reserves
18
Endowment fund
Total equity		 2025
£
2,527,457
3,695,806
6,223,263
84,485
57,203
158,465
300,153
(337,887)
(37,734)
6,185,529
(428,591)
5,756,938
288,858
77,580
5,349,669
40,831
5,756,938		 2024
£
2,563,622
3,561,478
6,125,100
134,101
195,811
573,295
903,207
(253,471)
649,736
6,774,836
(450,415)
6,324,421
311,759
70,458
5,942,204
-
6,324,421

30 March 2026 Approved and authorised by the Board on .................... and signed on its behalf by:

......................................... V R Wilkinson Chair of Trustees

The notes on pages 20 to 37 form an integral part of these financial statements.

17

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Statement of Changes in Equity for the Period from 1 February 2024 to 31 March 2025

Revaluation
reserve
£
Restricted
reserve
£
At 1 February 2023
225,348
70,458
Total comprehensive income
86,411
-
At 31 January 2024
311,759
70,458
Endowment
Fund
£
Revaluation
reserve
£
At 1 February 2024
-
311,759
Total comprehensive deficit
-
(22,901)
Movements in period (see
reserves note)
40,831
-
At 31 March 2025
40,831
288,858
At 1 February 2024
Total comprehensive deficit
Movements in period (see reserves note)
At 31 March 2025		 Revaluation
reserve
£
Restricted
reserve
£
At 1 February 2023
225,348
70,458
Total comprehensive income
86,411
-
At 31 January 2024
311,759
70,458
Endowment
Fund
£
Revaluation
reserve
£
At 1 February 2024
-
311,759
Total comprehensive deficit
-
(22,901)
Movements in period (see
reserves note)
40,831
-
At 31 March 2025
40,831
288,858
At 1 February 2024
Total comprehensive deficit
Movements in period (see reserves note)
At 31 March 2025		 Unrestricted
reserve
£
4,408,675
1,533,529
5,942,204
Restricted
reserve
£
70,458
-
7,122
77,580		 Unrestricted
reserve
£
4,408,675
1,533,529
5,942,204
Restricted
reserve
£
70,458
-
7,122
77,580		 Total
£
4,704,481
1,619,940
6,324,421
Restricted
reserve
£
70,458
-
7,122
77,580		 Unrestricted
account
£
5,942,204
(544,582)
(47,953)
5,349,669
Total
£
6,324,421
(567,483)
-
5,756,938

The notes on pages 20 to 37 form an integral part of these financial statements.

18

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Statement of Cash Flows for the Period from 1 February 2024 to 31 March 2025

Note
Cash flows from operating activities
(Deficit)/surplus for the period
Adjustments to cash flows from non-cash items
Social housing grant recognised in income and other grants
Depreciation
6
Finance income
Working capital adjustments
Decrease in debtors
12
Increase in creditors
14
Net cash flow from operating activities
Cash flows from investing activities
Interest received
Merged entities
Acquisitions of tangible assets
Acquisition of investments
Proceeds from sale of investments
Other investment movement
Net cash flows from investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 February
Cash and cash equivalents at 31 March		 2025
£
(544,582)
(21,824)
145,958
(88,668)
(509,116)
49,616
84,416
(375,084)
88,668
-
(109,793)
(2,456,729)
2,299,500
138,608
(39,746)
(414,830)
573,295
158,465		 2024
£
1,533,529
(14,794)
94,770
(73,525)
1,539,980
35,249
67,307
1,642,536
73,525
(1,440,298)
(257,027)
(480,784)
529,259
136,817
(1,438,508)
204,028
369,267
573,295

The notes on pages 20 to 37 form an integral part of these financial statements.

19

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025

1 General information

The company is a company limited by guarantee, incorporated in England and Wales and registered with Homes England, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

The address of its registered office is 40A The Grove, Gosforth, Newcastle upon Tyne, NE3 1NH.

The company is:

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,' the Accounting Directions for Private Registered Providers of Social Housing 2022 and the Statement of Recommended Practice Accounting by Registered Social Landlords, Update 2018 ('SORP2018'). The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006.

In accordance with FRS102 PBE3.3A the directors confirm that this Registered Social Housing Provider is a Public Benefit Entity.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in sterling which is the functional currency of the entity.

Included within other operating income in 2024 is an amount of £1,440,298 relating to the transfer of assets from the newly merged organisations.

Disclosure of long or short period

During the period, the accounting period was extended from 31 January 2025 to 31 March 2025. The comparative amounts in the financial statements cover the year to 31 January 2024 and therefore the comparatives and related notes are not entirely comparable.

20

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

2 Accounting policies (continued)

Going concern

The financial statements have been prepared on a going concern basis. The company meets its day to day working capital requirements through cash generated from operations.

The company’s forecasts and projections for the next twelve months show that the company, given its strong cash balance and investment portfolio, should be able to continue in operational existence for that period.

The directors have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company's ability to continue as a going concern.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There have been no accounting judgements (apart from those involving estimates) made in the process of applying the above accounting policies.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible assets. The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

Revenue recognition

Turnover represents rental income and service charges receivable net of rent and service charge losses from voids as well as social housing grants released. Turnover is recognised as the period of rent is due.

Government grants

In accordance with the performance method, government grants are released to the statement of comprehensive income when performance conditions have been met.

21

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

2 Accounting policies (continued)

Tax

The company has charitable status and is exempt from corporation tax on the income it has received.

The company is not registered for VAT. Accordingly no VAT is charged to residents, and expenditure in the income and expenditure account includes the relevant VAT.

Tangible assets

Tangible assets (including social housing properties) are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of properties is their purchase price together with incidental costs of acquisition including interest payable. Interest payable is capitalised by applying the company’s cost of borrowing to expenditure during the construction of the property up to the date of practical completion. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

Surpluses or deficits on the sale of housing land and buildings are accounted for in the income and expenditure account as the difference between the net sale proceeds and the net carrying value.

None of the company's housing properties are considered to be investment properties.

Major components of housing properties, such as the internal fittings and heating components, have been accounted for and depreciated separately from the housing structure, over their expected useful economic lives.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

construction over their estimated useful lives, as follows:
Asset class Depreciation method and rate
Land Not depreciated
Structure & roof 50 years straight line
Kitchens, bathrooms, doors and windows 30 years straight line
Lift 15 years straight line
Heating - boilers 10 years straight line
Heating - radiators 25 years straight line
Fixtures and fittings 15% reducing balance

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. The difference between the historic cost and the Market Value is shown as a revaluation reserve which can be both positive and negative at a year end.

22

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

2 Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Rent arrears and advances

In accordance with the Accounting Direction for Private Registered Providers of Social Housing, rent arrears and advances are not net-off and are presented as part of debtors and creditors respectively. Where a payment plan has been entered into for rent arrears, which is considered to be material, then the rent arrears debtor is adjusted to its net present value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Lease payments are recognised as an expense over the lease term on a straight line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis.

23

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

2 Accounting policies (continued)

Social housing grant

Social Housing Grant received as a capital contribution, in line with SORP2018 and the ‘accruals method’, is held separately as a creditor due more than one year, unless part of the Social Housing Grant relates to a disposal of property and becomes recycled or repayable, in which case it is apportioned to creditors due less than one year accordingly. The ‘accruals method’ is applied as the company holds all social housing properties at their historic cost.

The Social Housing Grant is then amortised in line with the depreciation of the ‘structure’ component of the housing properties and released over 50 years (2%). The amortisation released in respect of the Social Housing Grant is recognised in the Statement of Comprehensive Income as ‘income’.

Social Housing Grant received towards revenue expenditure is matched against that expenditure by being included in turnover in the income and expenditure account. The related expenditure is included under operating costs. Social Housing Grant is recognised in the same period as the related expenditure provided the conditions for its receipt have been satisfied and there is reasonable assurance that the grant will be received.

Social Housing Grant received and not matched by development expenditure or relevant expenditure in the income and expenditure account is included in current liabilities. The amount of Social Housing Grant in advance is calculated by reference to the aggregate of all schemes in the Social Housing Grant funded development programme.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Financial instruments

Classification

A financial instrument is a contract that gives rise to a financial asset or liability within the financial statements. The Board of Trustees has reviewed the financial instruments held within the financial statements and considers them to be ‘basic’ and as such they are recognised at their transactional value.

24

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

3 Turnover, operating costs and operating (deficit)/surplus for the period

Social housing lettings
Other
Social housing lettings
Other		 Turnover
£
4,431,156
25,808
4,456,964
Turnover
£
2,631,406
1,633,843
4,265,249		 Operating
costs
£
(5,280,174)
-
(5,280,174)
Operating
costs
£
(2,817,710)
-
(2,817,710)		 Operating
deficit
2025
£
(849,018)
25,808
(823,210)
Operating
surplus
2024
£
(186,304)
1,633,843
1,447,539

Particulars of the company's revenue for the period from continuing operations is as follows:

Rent receivable net of identifiable service charges
Amortised government grants
Other grants
Void losses (being rental income lost as a result of property not
being let, although available for letting)		 2025
£
4,409,332
21,476
348
4,431,156
(616,657)		 2024
£
2,616,612
14,444
350
2,631,406
(291,334)

25

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

4 Analysis of Turnover, Operating Costs and Operating Surplus for the period

Operating Expenditure
Management charges payable
Routine maintenance
Depreciation of housing properties
Payroll costs
Other staff costs
Food
Other hire
Travelling and subsistence
Rent and rates
Light, heat and power
Insurance
Telephone and fax
Office expenses
Other costs
Legal and professional fees
Computer software, maintenance and expensed
hardware
Cleaning
Advertising
Auditor's remuneration
Bank charges
Premises expenses
Total operating expenditure		 Social
housing
letting
expenditure
£
26,939
107,636
145,958
3,503,491
364,330
251,693
16,796
5,869
40,919
211,018
48,073
12,407
46,844
312,395
107,210
16,835
44,417
514
13,500
1,450
1,880
5,280,174		 2025
£
26,939
107,636
145,958
3,503,491
364,330
251,693
16,796
5,869
40,919
211,018
48,073
12,407
46,844
312,395
107,210
16,835
44,417
514
13,500
1,450
1,880
5,280,174		 2024
£
22,099
50,767
94,770
1,893,427
95,545
151,484
8,848
3,447
21,599
127,427
29,110
5,780
26,858
55,005
128,498
16,399
22,344
611
13,200
626
49,866
2,817,710

26

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

5 Other operating income

The analysis of the company's other operating income for the period is as follows:

Miscellaneous other operating income 1 February
2024 to 31
March 2025
£
25,808		 Year ended
31 January
2024
£
1,633,843

Miscellaneous other operating income in 2025 includes donations received, monies raised through fund raising and the final £8,046 from assets transferred on merger with Alnwick.

Miscellaneous other operating income in 2024 includes £1,440,298 relating to the net assets transferred on merger with the three former Abbeyfield Societies in Bamburgh, Berwick and Alnwick. £188,761 relates to legacies received in the year and the remaining £4,784 relates to donations received.

6 Operating (deficit)/surplus

Arrived at after charging/(crediting)

Depreciation expense
Auditors remuneration
Amortised government grants
7
Other interest receivable and similar income
Interest income on bank deposits		 2025
£
145,958
13,500
(21,476)
2025
£
5,343		 2024
£
94,770
13,200
(14,444)
2024
£
3,877

27

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

8 Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

The aggregate payroll costs (including directors' remuneration) were as follows:
Wages and salaries
Social security costs
Pension costs, defined contribution scheme		 1 February
2024 to 31
March 2025
£
3,160,238
274,389
68,864
3,503,491		 Year ended
31 January
2024
£
1,721,881
129,124
42,422
1,893,427

The average full time equivalent number of persons employed by the company (including directors) during the period, analysed by category was as follows:

during the period, analysed by category was as follows:
Administration and support
Other		 2025
No.
7
86
93		 2024
No.
7
62
69

One employee earned between £70,001 and £80,000 in the 14 month period to 31 March 2025 (year to 31 January 2024: none). None of the Board of Trustees received any emoluments during the period to 31 March 2025 (year to 31 January 2024: £nil).

The total expenses reimbursed to the Board of Trustees not chargeable for UK income tax during the period ended 31 March 2025 was £nil (year to 31 January 2024: £nil).

There were no further related party transactions with the board beyond those separately disclosed in the Related Party note.

The key management personnel of the company comprise the Chief Executive Officer, the Director of Care and Quality, the Administration Manager and four Home Managers. During the period to 31 March 2025 salaries totalling £380,573 (year to 31 January 2024: £173,982) were paid to key management personnel. Pension contributions totalling £15,555 (year to 31 January 2024: £11,981 were made on behalf of key management personnel).

During the period the Chief Executive’s pension arrangements continued to be a defined contribution scheme and the company contributed £5,136 employer contributions (year to 31 January 2024: £7,111) into the scheme.

28

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

9 Auditor's remuneration

9
Auditor's remuneration
Audit of the financial statements
Other fees to auditors
Accounts preparation		 2025
£
11,500
2,000		 2024
£
11,450
1,750

10 Tangible assets

Cost or valuation
At 1 February 2024
Additions
At 31 March 2025
Depreciation
At 1 February 2024
Charge for the period
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 January 2024		 Housing
properties for
let
£
4,222,156
109,343
4,331,499
1,912,351
101,526
2,013,877
2,317,622
2,309,805		 Furniture,
fittings and
equipment
£
725,684
450
726,134
471,867
44,432
516,299
209,835
253,817		 Total
£
4,947,840
109,793
5,057,633
2,384,218
145,958
2,530,176
2,527,457
2,563,622

Armstrong House in Bamburgh is subject to conditions established in a Deed of Trust dated 20th March 1925, as modified by Charity Commission schemes dated 23rd May 1978 and 16th March 1982 governing The Armstrong Home of Rest (Registered Charity No 222742-1), of which Abbeyfield Northumbria is the sole trustee.

29

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

11 Investments

Non-current financial assets
Cost or valuation
At 1 February 2024
Additions
Disposals
Fair value adjustments
At 31 March 2025
Historic cost
At 1 February
Additions
Disposals
At 31 March 2025 / 31 January 2024
Realised (loss)/gain
Opening market value of disposals
Proceeds
Realised losses/(gains)		 Financial
assets at fair
value through
profit and
loss
£
3,561,478
2,456,729
(2,299,500)
(22,901)
3,695,806
31 March
2025
£
2,755,192
2,456,729
(1,843,022)
3,368,899
31 March
2025
£
1,870,695
(2,036,123)
(165,428)		 Financial
assets at fair
value through
profit and
loss
£
3,561,478
2,456,729
(2,299,500)
(22,901)
3,695,806
31 March
2025
£
2,755,192
2,456,729
(1,843,022)
3,368,899
31 March
2025
£
1,870,695
(2,036,123)
(165,428)		 Total
£
3,561,478
2,456,729
(2,299,500)
(22,901)
3,695,806
31 March
2025
£
2,755,192
2,456,729
(1,843,022)
3,368,899
31 March
2025
£
1,870,695
(2,036,123)
(165,428)		 31 January
2024
£
2,515,475
794,053
(554,336)
2,755,192
31 January
2024
£
529,259
(541,724)
(12,465)

30

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

11 Investments (continued)

11 Investments (continued)
Opening market value of investments
Closing market value of investments
Additions
Disposals
Unrealised loss / (gain) per Statement of Comprehensive Income		 2025
£
3,561,478
(3,695,806)
(134,328)
2,456,729
(2,299,500)
22,901		 2024
£
2,721,448
(3,561,478)
(840,030)
1,282,878
(529,259)
(86,411)

Monies held by the broker as cash in a separate bank account are held on the balance sheet as current assets. At the period end the amount held in cash in current assets was £57,203 (2024: £195,811).

Investment holdings > 5%

The following investment accounted for more than 5% of the total closing market value at 31st March 2025:

31

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

12 Debtors

Trade debtors (gross rent arrears)
Other debtors
Prepayments		 2025
£
43,060
-
41,425
84,485		 2024
£
79,225
3,400
51,476
134,101

13 Current asset investments

13 Current asset investments
Investments
14 Creditors
Note
Due within one year
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
Due after one year
Other capital grants
Social housing grant (amortised cost)
16		 2025
£
57,203
31 March
2025
£
156,806
53,509
20,628
106,944
337,887
1,638
426,953
428,591		 2024
£
195,811
31 January
2024
£
77,219
20,770
17,598
137,884
253,471
1,986
448,429
450,415

15 Financial Instruments

Included in the loans and borrowings are the following amounts due after more than five years:

The other capital grants relate to grant funding received from Newcastle City Council in 2008 in respect of two of the houses. These grants are to be written off at 15% reducing balance in line with the depreciation policy for fixtures, fittings and equipment.

32

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

15 Financial Instruments (continued)

The company considers that its financial instruments comprise of the Social Housing Grant (SHG) and Other Capital Grant, as both are included as liabilities within the financial statements. The company has listed one of its properties at Berwick for sale and intends to enter discussions as to the potential recycling of the SHG related to this property. The property has not yet been sold and therefore the balance is reflected as falling due in five years or more. As the company has no intention to dispose of any of the other housing properties or contents to which the grants relate, the grants will not become repayable. As a result the total balance of the grant creditors is presented as falling due in five years or more. The financial instruments held and fair value through the profit and loss are repayable as follows:

In five years or more
16 Social housing grant
Gross grant creditor
At 1 February 2024
At 31 March 2025
Amortisation
At 1 February 2024
Transfers
At 31 March 2025
Carrying amount
At 31 March 2025
At 31 January 2024		 31 March
2025
£
~~428,591~~
-
Social
housing
grant
£
920,392
920,392
471,963
21,476
493,439
426,953
448,429		 31 January
2024
£
~~450,415~~
-
Total
£
920,392
920,392
471,963
21,476
493,439
426,953
448,429

The company considers that its financial instruments include the Social Housing Grant which is included as a liability within the financial statements. The Social Housing Grant will only become repayable if the properties are sold and if there is no agreement to recycle any of the grant.

33

Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

17 Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £68,864 (2024 - £42,422).

Contributions totalling £13,142 (2024 - £2,176) were payable to the scheme at the end of the period and are included in creditors.

18 Reserves

Revaluation reserve

The revaluation reserve represents the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Unrestricted funds

The income funds of the charity include the following unrestricted funds, including designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Designated funds relate to an emergency repair fund for the Armstrong Home of Rest.

Transfers out of the unrestricted general funds comprised £68,344 transferred to the Armstrong Home of Rest designated fund, £1,698 transferred to the Resident's restricted fund and £40,831 into the Armstrong House endowment fund.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

18 Reserves (continued)

Restricted funds

The income funds of the charity include restricted funds comprising the following donations and grants held on trust for specific purposes:

The restricted funds are held for the following purposes

Castle Farm historical - Legacies and donations received specifically relating to the home at Castle Farm home.

The Grove historical - Legacies and donations received specifically relating to the home at The Grove.

Residents' Fund - Funds received for the benefit of residents in the specific homes to which donations are given.

Staff Fund - Funds received for the benefit of staff in the specific homes to which donations are given.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

18 Reserves (continued)

Sensory Garden - Donations received specifically towards the cost of establishing a sensory garden at Abbeyfield House in Alnwick.

Handley Trust - Funds donated by the Handley Trust for the benefit of residents at The Grove and Castle Farm.

Family Room - Donations received specifically towards the cost of establishing a room to accommodate residents' families and friends at Abbeyfield House in Alnwick.

Northumberland workforce - Funds received from Northumberland County Council to ease staffing cost pressures.

International recruitment - Public funds received via Durham Council specifically to offset additional costs of international recruitment.

Endowment funds

The movement in the endowment fund held by the charity is detailed below:

The endowment fund represents the value at 16 March 1982 of investments which, together with the land and buildings known as Armstrong House in Bamburgh, are subject to conditions established in a Deed of Trust dated 20 March 1925 (as modified by Charity Commission schemes dated 23 May 1978 and 16 March 1982) governing The Armstrong Home of Rest (Registered Charity No 222742-1), of which Abbeyfield Northumbria is the sole trustee. These funds have been transferred to endowment funds from unrestricted funds in the period.

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Docusign Envelope ID: 2F513543-5182-451E-955E-A3C572679342

Abbeyfield Northumbria

Notes to the Financial Statements for the Period from 1 February 2024 to 31 March 2025 (continued)

19 Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

Not later than one year
Later than one year and not later than five years
Later than five years		 2025
£
19,626
59,950
16,428
96,004		 2024
£
2,900
8,701
1,089
12,690

20 Contingent liabilities

By a Deed of Declaration of Trust dated 14 April 1981 made by Abbeyfield Northumbria (formerly Abbeyfield Newcastle upon Tyne Society Limited) (the Charity) (and registered with the Charity Commission under reference SEW – 227870 – A1 – L1) the Charity declared inter alia that if it for any reason ceased to maintain the Doctor H.M. Gurney Wing at The Grove or if the wing ceased to be known as the Doctor H.M. Gurney Wing the Charity would either sell the building of which the said wing forms part or have the building valued by a competent valuer and shall hold the proportion of the proceeds of sale or of the amount of the valuation attributable to the said wing for the general purposes of some other Charity having for its object the provision of after care benefit for elderly gentlewomen.

21 Related party transactions

There were no related party transactions during the period (2024: invoice received from Cresswell Builders, a company owned by Ralph Baker-Cresswell for £360).

22 Parent and ultimate parent undertaking

The ultimate controlling party is the Board of Trustees.

23 Non adjusting events after the financial period

The care services at Berwick have ceased since the period end and the property is currently listed for sale. The property continues to be held as a fixed asset until it is sold and no adjustment is required to its carrying value. The Social Housing Grant relating to the property continues to be held as a long-term liability until the property is sold. At which point it will move to a recycled capital grant held as less than one year and subsequently repaid or recycled into future capital costs.

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