THE FENCE TRUST FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2025 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Contents Page Registered Social Housing Provider Infornialion Report of the Trustees Reporting Accountants, Report Stslement of Comprehensiv& Income Statement of Financial Position Notes to the Financial Statements THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Registered Charty number 237291 Regulator of Social Housing registration number A3989 Trustees of the Charity Cllr.Mr. N. P. Mannion (Chair) Mrs. D. Bentley Smith Mr. P. Tyr￿11 Mr. E.ilunter Manager Registered offlce Ms. F. Wllson 2 Sherwood Road Macclesfield Cheshire SK117RR Reporting Accounlanl Harts Ltd Westminster House 10 Westminster Rd Macclesfield Cheshire SK10 IBX Solicitor Wains Solicitors 39- 43 Churchside m￿Cle$field Cheshire SK101HW Bankers Natyyesl Bank 2 Cheslergate Macclesfield Cheshi SK11 6BS THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEES REPORT The Board of Trustees of The Fence Trust presents their report and financial stslements of the Registered Provider {RPI for the year ended 31 March 2025. structure> governance and management The Trustees of the Board who have served during the year were as follows.. Cllr. hAr. N. P. Mannion Mrs. D. Benuey Smith hllr. P. Ty￿ell Mr. E. Hunter The Tmst is govemed by 8 Charity Commission scheme dated 27 February 1986 and a further scheme made on the 8 June 19S2 and is 8 Registered Charity. It is also a Registered Social Housing Providei. Objectives and activities The Fence Trust is a Registered Charity and a Registered Social Landlord. The charity providès a¢¢ommodalTon for poor married couples and single people 55 years of age and over. Thè charty tsperates exclusively ￿thIn the Borough of Macdesfield las at 31 March 1974). Th& charity owns and maintains seven properties, specifically designated for eldedy people. The weekly maintenance contributions from tt)e ￿SidentS are the only source gf funds available to the Trustees to provide a safe environment for potentially vulnerable people, to maintain and improve the properties and to perfom ststutory safety Cheeks. There is additionally a small investment income from fijnds held in the COIF Charities Deposti Fund. Fence Trust is allowed to make Charitable payments to residents where appropriate_ The Trustees of the tharity maintsin that they have complied with the duty described in section 4 of the Charthes Act 2011 to have due regard to public L>enefil guidance published by the Commission. The Trustèes have considered this and believe that the charity provides public benefit by maintaining seven almshouses as qualty housing for elderty people at a Cost well below rnarkel levels. Achievements and perft)rniance The charity cgntinues to provide 1 Cl units of accommodation in a listed development nèar the eentre of Macclesfield. including three endowment prope￿.eS let at near market rents and a commercial office in the original hospicè. Overall, the finan¢i81 resu￿ show a surplus and the medium term business plan shows the charity being cash positive for the foreseèable future. Work continued to install new wndows at 1. 2 and 3 Fence Court and r8pair the facias and guttering al 1 and 2 Fence Court. Additional work has also been requitsd lo deal with water ingress at Fence House. The cost of this work included the scaffolding required. Routine maintenance has been undertaken as required. THE FENCE TRUST FINANCIAL STATEMENTS FQR THE YEAR ENDED 31 MARCH 2025 TRUSTEES REPORT Financial review Trustees have a reasonable expectation that the charity has adequate resources to continue operdtions for the foreseeable ￿ture. Reserves are held lo manage fluctuations in income due to voids. Vvhilsl the Amshouses are generally ￿ElY Occupied at present there have been period5 when empty properlies have resulted in a significant reduction of income. In the case of Fence House in particular repairs can be expensive due to the height of the building and akso its special architectural features. Samè T8serv6s are also n88ded for repair work which is done @n bloc to minimis8 scaffnlding costs. Analysis using financial and non.financial key perfomiance indicato The figures {expressed as £000) in the table below are tsken from the Annual Report & Financial Stslements for the year ended 31 March 2025. 2025 2024 63.1 Tumover Administrative expenditure Operating SUr￿lIUS Interest receivable & payable and other charges Total comprehensivè income for the year 55.5 Incorne & expenditure reserve 267.7 257.9 Assessment of how we are achievlng value for money Including perfomlance metrics The Tnjstees believe that the quality ofworkmanship from their selected Ioc21 contractors to be important for their client group. 2025 ', 2024 0% Reinvestment % New Supply (Social hokjsing units) % New supp￿ (Non-social housing unilsl % l Gearing % EBITDA hARI interest cover % Headline social housing cost £ Operating margin (social housing lett¢ngs) % Operating margin loveralll ' Retum on capital employed % oo 00 00 2,579Q £4,033 ,, £4,356 14% e°h 150 6% 10 1% 1 Major RÈsks and uncertainties are ¢onsider&d to be 3. The homés no longer provide accommodation orfacilitie5 Suitable for our client group b. There are 5ignifiGant changes to the housing benefit system c. HM Government forces rent reductions onlo the supported housing sector d. The age of the properties necessit8tes significant expenditure e. The Trustees lose key members and are not able to replace them with members with ￿levant skTIIs Assessment of cornpliance with the Governance and Financial Viability standard Trustees have developed a medium li.e. five year) financial model which shows that the charty remains ash positive. This model has been reviewèd by the Regulator of Social Housing. THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEES REPORT Code of Governance The Trustees hav8 adopl8d the Charity Commission Good Governance Code. Board's responsibilitles The Board is responsibl8 fi)r preparing the report and financial statements in accordan￿ applicable law and regulations. Registered social housing legislation requires the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the aSS￿lation and of its income and expenditure forlhat period. In preparing these financial statements, the Board is required lo= select suitable accounting p￿]¢￿e$ and then apply them consislentty., make judgements and estimates that are reasonable and prudent- stsle whether applicable acccsunting standards have been followed. subject lo any material departu￿$ disclosed and explained in the financial statements.. and prepare the financial slatemeAts on the going concern basis unless it is inappropriate to presume that the association will continue in business. The Board is responsible for keeping proper accounting records which disclose wtth reasonab6e accuracy at any time the financial position of the agsocialion and enable it to ensure that the finan¢ial slalements comply with the Housing and Regeneration Act 2008 and the A¢¢ounting Direction for pnvale registered providers of social housing in England 2Q22. 11 has general responsibility for taking reasonable steps to safeguard the assets of the association and to prevent and dete¢t fraud and other iffegularities. The 8oard 15 responsible for the Maintenan￿ and integrity of the corporate and financial infonnation included on the association's websrte. Legislation in the United ￿ngdoM governing the preparation and dissemination of finanual statements may differ from legislation in other jurisdiGtions. We, the Trustees of the Board who held office at tre date of approval of these Financial Statement5 as set out above each confirm, so far as we are aware, Ihat.- there is no relevant accounting inforniation of which the Trusys reporting accountsnts are unaware-, and we have taken all the steps that we ought to have taken as Twstees in order lo make ourselves aware of any relevant accounting information and to establish that the Trust's reporting aw)untants are aware of that infomiation. By order of the Board Mr. E. Hunter, Trustee Dated '. THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REPORTING ACCOUNTANTS, REPORT Accountsnts. report to the Board on the unaudited accounts of The Fenco Trust We report on the accounts for the year ended 31 ￿ March 2025 set out on pages 7 to 15. Respective responsibilities of the Board and independent reporting accountants The Board of the Registered Social Housing Provider is responsible for the preparation of the accounts, and they Consider th* the Registered Social Housing Provider is exempl from an audit. 11 is our responsibilty to cary out procedures designed to enable us to report our opinion. Basis of opinion Our prOCedu￿S conslsted of comparing the accounts wlth the accounting records kept by the Regislere Social Housing Provider and making such enquiries of the officers of the Registered Social Housing Provider as we considered necessary for the purpose of this rèporL These proceQures provide the only assurance expressed in our opinion. Oplnlon In our opinion: the accounts for year endecl 3151 March 2025 are in accordance with tho accounting records kept by the Registered Social Housing Provider under paragraph 1 ￿(2)18) of the Housing and Regeneration Act 2008., having regard only to, and on the basis of the information contained in the accounting records.. the accounts comply with the requirements ol the Charities Act 2011., the Registered Social Housing Provider has sat"sfied the conditions for exemption from an audit of the accounts for the year ended 31￿ Mareh 2025 specified in section 136161 of the Housing and Regeneration Act 2008", the accounts comply with the requirements of the Housin9 and Regeneration Act 2008 and the Accounting Direction for private Tegistered provider5 of social housing in England 2022. Mèlissa Bowers FCCA For and on behalf of Harts Limited Chartered A￿ountantS and Statutory Auditors Westminster House 10 Westminster Rd Maedesfield Cheshire SK10 IBX THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF COMPREHENSIVE INCOME Ilncluding Income and Expenditure Account) 2025 2024 COMiNing Opor9110Tr5 TOTAL CoTrtinuing CyÈr4Uons TOTAL Tumover Donations recenied Administrative expendlture $4.811 63,075 {55,5211 159,C681 Operating surplus I (def[¢￿> 9,290 4,007 Interest receivable and similar income Interest payable and similar charges 522 512 15851 Surplu5 1 IdefiGitI on ordinary activitie5 for the year before tax 9,812 3.934 Tax on surplus I Idefieitl on ordinary activities Surplus I Idefi¢itl for the year after tax 9,812 3,934 Total comprehensive Incorne for the year 9,812 3,934 Dated '. Signed On behalf of the Board of Trustees Mr. E. Hun rustee Mrs. D. 8entley Srnith, Trustee THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF FINANCIAL POSITION 2025 2024 Fixed assets Tangible fixed assets Improvements to property e25,418 34,124 625,418 45,279 659,542 670,697 Current assets Debtors Cash at t*ank and in hand 10.24e 81,559 4,995 72.639 91.805 77,634 Creditors: amounts falllng due withln one year {6,5571 {13,3531 Net current assets l (Ilabllltlesl 85,248 64,281 Total assets less current liabilities 744,790 734,978 Credltors: amounts falling due after more than one year Total net assets I Iliabilitiesl 744,790 734,978 Reseryes Income and eXpendrtu￿ reserve Endowment reserve 14 14 267,679 47T,111 257,867 477,111 Totsl Reserves 744,790 734,978 The financial statements were approved and authorised for issue by the Board of Trustees on Dated = Signed on behaff of the Board of Trustees Mr. E. Hunter. lee Mrs. D. Bentley Smith, Trustee The notes on pages 9 to 15 form part ofthese acwunts. THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Summary of sIgn￿¢an1 accountlng pollcles la) General inforniation and basis o* preparation The Fence Trust is a Registered Chartty12372911 and a private Registered Provider of Social Housing IA39391 In the United Kingdom. The address of the registered Offi￿ is given in the RP information on page 2 of thèsé financial statements. The nature of the RP'S operations and principal activities are that of an Almshouse Charty providing accommodation for poor single people or married Gouples of age 55 years and over within the borough of Macclesfield. The RP constilules a public b&nefil &ntity as d8fined by FRS 1 Q2. The finanei81 stalements have been prepared in accordance wyth applicable accounting standards including Financial Reporting Sland8rd 102 the Financi81 Reporting StandardApplicable in the UK and Republic of Ireland IFRS 1021, the Statement of Recommended Practice for Social Housing Providers 2018 and with the Accounting Direction for private registered providers of soryal housirE in England 2022. The financial slalements are also prepared under the requirements of the Housing and Regeneration Act 2C08. The financial statements have been prepared on a going concem basis under the historical cost convention, modified to include certain items at fair value. The financial Statements are p￿pared in sleding, which is the ftJnction31 currency of the RP, and rounded lo the nearest pound. The signrficAnt accounting policies applied in the preparation of these financial statements are set out below. These policres have been consislenlly applied to all years presented unless othe￿iSe staled. Ib) Tangible fixed assets Tangible fixed assets (including social housing properties) are staled at cost (or deemed Cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs direcuy attribLEtable to making the asset capable of operating as intended such a5 the cost of awuillng land and buildings, developments wsts, int&￿st charges tin loans during the development period and expendtture on improvements. Expenditure on improvements will only be capitalised when it results in incrementsl future benefits such as increasing rental incorne, reducing maintenance costs or resulting in a significant extension of the useftjl economic life gf the propefty. DeP￿CIatiOn is provided on all tangible fixed assets, at rates calculated to write off the CDSt, less estimated residual value, of each asset on a systèmatic basis over its expected usefvl life as follows.. Housing properties, houses Nil Properties for non-social housing lettings Nil Improvements to propety 10% on cost Major components of housing properties, such as propety improvements and heating systems. have been aceounled for and depreciated separately from the connected housing propèrty. over their expected useful economic lives and are included in property, plant and equipment The useful economie lives of 811 tangible ffx@d assets are reviewed annually. THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Icl Debtors and credltors recelvable I payable wlthln one year Debtors and creditors with no stsled interest ratè and receivable or payable wilhln one year are recorded al transaction price. Any losses arising from impaimient are r￿Qgnised in the statement of comprehensive ineome in other administratnie expenses. Rights of social landlords to have improvement works carried out to properbes by a third party (such as a local authorityl are recognised as prepayments where payment has occurred in advance of the w0￿S being carried out and receipts in advance from the samè third paty recDgnised as liabilities. Assets and liabilities or income and ex￿ndi￿re are not offset. {dl Investments Investments are recognised initially at fair value which is nomially 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. lèl Loans and borrowings Loans and boffowings are initialty ￿COgnISed al the transaction prfts including transaction costs. SLtbsequenlly, they are measured at amortised cost using the effective interest rate method, less impaim)ent. tf an arrangement constitutes a financing transaction it is measurgd at present value. lfj Turnover and other income Tumover represents rentsl and service charges In￿Me receivable in the year nel of rent and service charge losses from voids Property Managed byAgents Where Ihe RP Carries the financial risk on propety rnanaged by agents, all the income and expenditure arising from tho propety is induded in th¢ stslement of Comprehensive In￿rne. ere the agency carries the financial risc the statement of comprehensive income indudes only that income and expenditure which relates solely to the RP. Inte￿st and dNidends rec8wable Interest incom8 is recognised using the effective interest method and dividend income is recognised as the RP'S right to receive payment is established. (gi Endowment Reserves Endowment reserves are those resèNes which are only èxpendable in accordance the wishes of the funder or regu18tory body- Endowment ftjnds represent those assets which must be held pem)anenlly, revenue and expenditure cannot be diredy sel against endowment reserves but is tsken through the statement of comprèhènsNe income and then a transfer to enéowment reserves Ss made as appropriate_ 10 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 2 Particulars of turnover and administrative expenditure from social housing lettings 2025 2024 Total Total Turnover Rent receivable net of identifiable service charges 64,811 63,075 Donations received Turnover from social housing lettings 64,811 83,075 Administrative expenditure Managels remuneration Routine maintenance Garden upkeep Council tax Electricity Insurance Legal & Professional Accountancy fees Subscriptions Training Print, post & stationery Depreciation of housing properties 7,410 26,272 4,174 7,020 26,910 2,875 645 2.657 563 2,232 401 782 2,498 2,448 348 12 11,155 32 11.155 Administrative expenditure on social housing lettings 55,521 59,068 Operating surplus l (defictt) on social housing lettlngs 9,290 4,007 Void losses 11 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Accommodation owned and in management Numberof untts at 31" March 2025 Numberof units at 31" March 2024 Completed units.. General needs housing Housing for older peopk Commercial propety 11 Interest and othor finance incorne and charges al Interest receivable and similar income 2025 2024 Bank interest receivable 522 512 bl Interest payable and similar charges 2025 2024 Bank loans and overdraft5 585 Surplus I Idefi¢itl on ordinary a¢tiviti¢$ Surplus J {deficitl on ordinary activiti8S is stated after charging I Icrediting)-' 2025 2024 Accountancy fees Depwiation of tangible fixed assets 2.232 11,155 2,448 11,155 13,387 13,603 12 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Remuneration The total remuneration for the Board of Trustees amounted to £ nil12024 - £ nil). The remuneration figure of £7,410 {2024- £7.0201 is in respèct of the Manager, Ms F ￿180￿ who has been employed on a part time basis since October 2016. Tanglble fixed assets- houslng propertles FtOU5ing properties for letiin9 includtng T￿n- 80¢ial housiftg lettlng$ Improvemerts to proporty Total Cost.. At 1st April 2024 Addrtions 625.418 111,546 736,g64 At 31￿ March 2025 625,418 111,546 736,964 Depreciation: At 1st AprÈl 2024 Charge for year 68,267 11.155 e6,267 11.155 Al 31 Sl March 2025 77.422 77,422 Nel book value.. Al 31￿ March 2025 625.418 34,124 659,542 At 31st March 2024 625,418 45279 670,697 The Fence and Endowm8nt Houses logether wth the Almshouses were constructed in the late Nineteenth Century. There is no record of the original cost. The housing properties are includeL1 in kne ffnaneial slalemenls at their historic estimated value. The development and improvement Gosls that relate to improvements carried out Sin￿ 1992 which wère funded by a Housing Corporation grant and a mortgage loan from the Housing Corporation secured by a charge on housing, land and buildin95 and from The Fence Trust5 own resources. The Charities SORP IFRS1021 states that a tangib￿ fixed asset musl be depreciated over its usefijl economic life. The Charity should ¢hocJse a depreciation method which reflects the use of the a55el and the expected liming or consumption of its economic beneffts. This residual value of the properties has been considered and not deemed to be lower than cost. as sueh no depreeiation has b&n applied. Oepreciation is Provided on property improvements at a straight line rate of 1 Ooh on cost. This is in accordance with FRS102, a charity may ¢h¢ose to adopt an accounting policy of revaluation bLrt if rt does so then all assets in thal class musl be rèvalued. 13 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS The net book value of land and buildings ccmprised.. YJ25 2024 Land and buildings: Freehold fj59,542 670,697 Debtors 2025 2024 Trade debtors other debtors Prepayments and accrue¢J income 8,452 801 993 3,233 801 10,24e 4,995 Creditors: amounts falling dug within one year 2025 2024 Rents paid in advancè Other creditors Accruals and deferred income 1,856 2,601 2,100 2,029 2,601 8.723 6,557 13,353 10 Contlngont Ilablllties As al the 31 March 2025 thère werè no conb"ngenl liabilities. Related party transactions The Stsnley & Brocklehurst Almshouses shares the same Board of Trustees as the Fence Trust. The Fence Trust also shares the same Manager as the Stanley & Brocklehurst ￿m$houSe$. Ms F Ison is remunerated by the Stanley & Brvthlehursl Almshouses of which 50% is re¢harged to the Fence Trust. Over the course of the year £7,41CI 12024 - £7,020). was paid lo the Stanley & BrOc￿ehUrst Almshouses in respect of Ms F Wlson's salary, there is no balance outstanding in respect of salaries at the year end of 31 March 202512024- nil). There were £12 12024 - £321 re-imbursements this year in respect of printing supply items to Ms F Ison. 14 THE FENCE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMEMrs 12 Average number of employees The avèrage number of employees during the year was 1 (2024.. 11. Ms F Wlson the TrJst Manager has been employed on a part time basis since October 2016. The 4 Trustees 12024.. 41 are not remunerated for their services to the Trust. 13 Post balance sheet events The board of trustees have confim)ed that there are no signfficant post balance sheet events. 14 Reserrfos al Totsl reserves 2025 2024 Income & expenditure reserve brought fofward Endowment reserve brought forward 257,867 477,111 253,933 471,111 Balance brought forward 734,978 731,044 Income and expenditure surplus I Ideficitl al year end 9,812 3,934 Totsl reseNes caThied forward 744,790 734.978 b) Shown as 2025 2024 Income and expenditure reserve lunre5tricted reserve) Endowment reserve Ire5tricled reserve) 267.679 477,111 257,867 477,111 Balan￿ carried forward 744.790 734,97B 15