2024-03-31-accounts

Docusign Envelope ID.. E916288E.CAB146C742C6-C473FF4420F3 AEfjISTEREO COMPANY NUM8ER.. OD754694 {En￿and and Wales) REGISTERED CHARITY NUMBER.. 238168 IIEPORTOFThE TRUSTEES AND FI￿ANCIAL STATEMENTS FOR ThÉ YEAR EP+DED 31 MARCH 2024 THE ABBEYFIELD LOUGHBOROUfjH SOCIEfY LIMfTED Duncan & Topli5 Audit Limited. Statutory Avditor 3 Prince5 Court Royal W4y LDuBhborou8h Leicestershire LEII 5XR

Docusign Envdope ID.. E916288E-CAB146C7-A2C&C473FF442DF3 TNE ABBEYFIELD LOUGHBOROUGH SOCIETY LIMITED CONTENTS OFTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page Releiente and Administratbve Details Report ol the Trustees Report ol the Independeni Auoitors 7 to JD StatemÈnt of Cofflpfehensive Income li Statement ol Changes ir* Reserves 12 Statement ol Financial Position 13 Statement of Cash Fl¢wis 14 Notes to the Statement ol Cash Flows 15 NDtes to the Finan¢ial Statements 16 To 25

Do¢uslgn Envelope ID." E916288E.CAB146C7.A2C8-C473FF442DF3 THE AB8eYFIELD LOUGH6OROUGH soaETY UMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR E￿DED 31 MARCH Z024 TRUSTEE5 8RBunn FFav Mrs RJohn59n- Chairrnan C Jennison A Wood D M Ha5ting5- Treasurer W G Holland SÉCRtrARY Mrs R johnson REGISTERED OFFICE 44 Westfield Orive Lou8hbtsrouih Leicester5hlre LEII 3QL REGI￿ERED COMPANY PIUMBER 00754694 IEn8hnd and Wèlesl REGlsfERED CHARITY NUMBER 238168 SENIOR STATUTORY AUDITOR Niall Klwley FCA AUDITORS Ouncèn & Toplis Audr( ￿mIted, Statutory Auditor 3 Princes Court Royal Way Loughborough Leicestershire LFII SXR SOLICITORS Moss Solicitors 81 Wood8ate Lou8hborou8h Leicestershire LELI 2XE BANKERS N¥ttonal Westminster Bank plc Markèt Placè Louthborough Leicestershire LEII 3NZ Page I

Do¢u￿g￿ Envebpe ID E916288E.CAB146C7-A2C8-C473FF442DF3 THE A88EYFIELD LOUGHBOROUGH SOCIEfY LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The board of the trustees (who arè Also the directors of the Society for the purpose of company lawl present their report, which 5ncorporates the strateÉic report, and the financial staternent5 for the year ended 31 March 2024. STRATEGIC REPORT Achievement and performance Priniipal uchvitie5 The Society's principal activity for the year under review has beèn that of prtrvidin8 care for elderly residents with demenfja. The resident5 Wlth dementia are accommodated In Wesffield House and, slnce October 2022, Ingleslde House which are both registered for dementta care. The Board employ5 èn Achvitres Coordinator and provides a budget for athvitses. The Board regards this as an importènt aspect of the care that It provides because it W15he5 to provide an enjoyable and stimulating environmeDt for the residents. Similarly great care is takèn to ensure that residents ar Westfield House and Ingleside House receive food and drink which is in occord with their dietarv requirement5. Historically Westfield House had consistently received a 'Good- rating from the CQC and had achieved the LCC's~Gold Standard~ but, a5 reported last year, following the CQC visit in september 2023 the society were downgrèded to "inadeouate" As a result the Society were not allowed to admit new residents until the matters raised by the inspections had been re501ved. The Society took immediate action in orderto regain ourfofmer status. This involved recruitrnga new General Manager ond ftegistered Care Manager who have acti¥elyworked withthe care staff In ordèrto ensuretheyare corrèctlytfained and prèviousfailines remedied. Additsonallv, staff numbers have been increased to ensure that 311 resident5 receive the care that their condition require5. A subsequent inspection by CQC ènd LCC has raised the society's rating to 'Requires Improvement" which enabled us to begin adrnithnB new re51dents frarn May thi5 year. We are also confident thatfollowing a further inspectionwe will re8ain the"Good" rati•È that we believe appropriate. rinancial review Review of the business ThÈ Trustées can report an operatsng defi-cit for the year of £34.386 compared to èn oper3rnE delicit of £232.091 fer the previous year. The Society 3150 generated a total CDmprehen51ve Ios5 of £861,005 after inv25tment income and change5 in the ¥￿￿￿e of Investment5. The total comprehensive loss was partly Cornpounded by the two exceptional item5 referred to in note 5 to these linaniial statemÈnts which firstly relates to the need to provide for the porentyal repayment of Erants prevlously recelved ènd secondly relate5 to the impairment char8e put through CD freehold property. Last year, 3 total comprehen51ve Ios5 of £412,134 was generated after the inclusion of the surplu5 on the sale of May Mills House duringthe prior year. The operatin8 deficit ha5 resulted from a cornbinètion of the irtability to admit new residents for a period of six fflonthstu8Èthèr with the need to vse agency staff because of the continuing difficulty in recruiting suitable care staff. Additionally, the high interest rates and utrllty charges now Incurred have caused overheads to rise further. However. thanks ro the Sterling work ol our management team we now have a full cDm￿erne￿t of care staff rE(Jucin¥ the need to rely on expensive agency worker5. The reserves of the Soclety total £2,661,549 at the year end, of which £340,346 is available in cash as indicated on the Staterneni of Cash Flows. In order to fulfil Irs objective, the Society has two properties. Although these properties are unrestricted assets, they cannot be realised withDut underrninin8 the SocietY'5 work. The board of Trustee5 therefore consider it appropriate to reflect the investment In propemes of £5.204.067 by mean5 of a designated fund. Housing property repair and maintenance expenditure is charged to the Income and Expenditure accoijnt in the period in which it 15 Incurred. As part of the reserves of the Society there ex15ts a designated reserve for future 51gniftcant expenditure of this nature. rhe Board of Trusteès ttrnsiders it prudent to allocate funds In Ihis way so that such cogts do not threaten the Society's free resèrwes posityon The level of the reserve is calculated as a reasonable pstsmate af the level of expenditure which may ar15e and at 31 March 2024 was £lOO,000 A capital expenditure reserve ha5 been cre?ted to fund future expenditure on fixtures, ftthn85 and equipment. The arnount set aside at the year end Is £30,OCW) and is based on the Society'5 obligatron5 to replace assets of this type as they wear out A desi8nated eeneral charitsble reserve represent5 the accurnulated charitable donation5 received by the Society unexpended at the financial reporting date. There are no restrictions on the allocation of those receipts and at the year end the balance was £75.221. After taking account of the designated funds described above the unrestricted funds at 31 March 2024 are negative £2.747.739. The negative ligure tBke5 In to account the mortgÈge on InÈlÈside. This allows the Society to continue with its obiectrvè trf providing for and enhancing the quality of care reteived by the residents. Pa8e 2

Doixjslgn Envelope ID.. E916288E-CAB146C7-N2C&C473FF442DF3 THE AB8EYFIELD LOUGHBOROUGH SOCIETY UMITED REPORT OF THE TRUSYEES FOR THE YEAR EP4DED 31 MARCH 2024 STRATEGIC REPORT Rewewofthebtssiness Icontinued} Given the straight forward nature of the business. the Soclety's Trustees are of the opinion that analysis usin8 KPIS 15 not necessary lor understandlng ol the development, perfoTm4nce or position of the bus¢ness. The Abbe¥theld Loughborough Society Is committed te providlngaftordable. carin8 and sustainable solutlonsfor olderpeople throvgh range of high quality seryices. Ourstren8th lie5 in professionally cateringfor the needs, want5 and a5pirotions of our rÈsirlents wlth dignity ind compasslon In a warm friendly family environment. Demand from an aiing population tor accornmod3tion offered is likely to be Steady glven our previoys reputstion for totsl quality £are at competitivè prices, ènd refletted In, In normal trMe5. low void leve15 and our prevlous posI￿ve Inspection and 4sse55ment reports from CQC and LCC. However, in thÈ medium term there Is Ilkely to be increased competition in d*mÈntia care and our previous in5pethons and quality grades have had a significant itnpèct on ourabillty to attract residents. The anticipatèd regaining of the"Good" ratrng will •llow us to reverse this po%tion. Budgetary considerafjons will form part of the above and will be refterted in our annuèl business plans. We can demonstrate sound finènces with adequate tash reserves of over £300.0(M), together with the continved support of Charlty Banl to ensure IDng term viabllity. We also have an effective comrnitteé and management structure to SUPPOrt and inform business detisions. Wearefortunateto have deditated and committed staff who underioon-gosngand extensivetrèinlng and developmentprograrnme5 to Pfovide a wlde ran8e of skills. The budget includes a substsntial amount to support this training. Howevèr, recruitment and reteniion of good quality staff has become a sericu5 issue for many in thp care businesses and Abbeyfield 15 no exception. It is the Soclety's policy to pay all of our Èmpk)yees the"Real UvSn8 Wa8e,° 35 a mlnirnurn which enbbled us to n¢)w hève a full cornplernent af quality staff. This reflects the Board's view that caring for resldents with dementia is a skilled job and that al who work atAbbèyfiÈld contribute to the high quality of care prOv￿e￿ 8t both Westfield House and In8leslde The Societywill need to be mlndful of the impact thi5 will have on our fee5. and consequentl¥ the abllity of potential residents to lun(S their own care In the future. or to access appropriète hnancial support from the County Council. Although there Is an elernent of uncertainty with the Ion8er-term future dlrection of care given concerns with fundln6 reduc￿en$. declining assets held by residents and their farnilies and the pro$ress of medlcal science. we rernain confident that there will be an on-zoing dernand lor ¢are of the elderly and parricularfy for care of people with demenfja. Public benefit The Society is run by a Board of Trustees comprised enttrely of vdufiteers. It also relles on volunteer5, who are Tecruited locallv. throughout the Society to a5515t with fundrai51n$, a£￿Vi￿e5 and events. The &)¢iety cu¥rentty budgets for £24,000 of unrecoverable residents, fees per annum and 15 very sympathetic to resident5 who become unable to pay their fe95 due to a chan8e in their clrcumstènces and the refusal of leicestershire County Council to pay the lull fees of their funded residents. The fee5 are currently rnaintained at a level that is consldered to be affordoble to all and is tompefjttve in the current market. The Board of Truttees has pald due re8ard to 8uidance issued by Charlty Commlsslon In decidlng which activities It should undertake. InvesrFnentpoliryundobiectfves Ad-hoc Me￿ing$ and phone conversations tske place with 8arclays Wealth and they have assessed Abbeylield'5 risk profile as being at the low end of medlum. The basic mix of the portfolio 15 67% 5t¢xk market and 33% bank deposits. The Boord is satlslied with the performance of its inve5trnents. Reserves policy Is proposed that the retalned defi¢lt Of £861.D05 Is deducted from reserve5. The 5ocietywill coTrtinue to maintain a sufficient level of reserye5 to enable it to meet any unforeseen events. As detai￿d in the rÈporL the 8tsard of Trustee5 Is aware of the chaTr¥in8 needs of the people in society and reco8nise5 that thE5E than8es may require addiiional fundin8. Page 3

Docusign Enveknpe ID". E916288E.CAB14ec7.A2C8.C473FF4420F3 THE ABBEYFIELD LOUGHBOROUGH SOCIETY LIMITEO REPORT OF ThE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 rRATEGIC REPORT Prlnupal risks and uncertainties The Board of Trustees have assessed the majorrisks to which thè charity 15 exposed. in parvcvlar those related to the operation5 an(J finance5 of the Society, and are 53tislied that system5 are In place to mitiEate our expD5ure to the major risks. However. volètile energy price5 and the contrnuing difficulty to recruit and retain good stBff will have short to medium-ierrn effects One of the main ri5k5 to the Society re￿ateS to the regulatory environment. Failure to rneet regulatory requirernents would 1rnPaCt both the operBttons and repuratson of the society. This rlsk is mitigated through the constant monitoring of reÉJ1atory rèquiretnents by man3Eement though the difficulties we experience in recruiting and retaining good stafF. parfjcularly at the higher lÈvel. have irnparted on cur ability to meet all regulatory requirements. Wetake advice from earclayswealth in rela￿o￿toouri￿ve5tMent5 and the Board, advised bytheTreasurer, savin85 in recogni5ed At￿n[la1 Institutions all covered by the Financi31 Services Compensatron kheme las per it5 Savin85 and Investment Poliryl- Fut¥re developments The objectives of the Society are to continue to provide a high level of tère ènd support in both Westfield HO￿Se and Ingleside and to that end a 5V5tem8ric prograrnme of training has been introducÈd to ensure that all staff are familiar with and capable of carryin out the demèndineroles of a carer. Westfield House and Ingleside conrnue to develop their provision for the care of those diagnosed with dementra. ensuring that new methods and InformaOon throu8h research are considered and implernented to ensure the besi possible care for our residents. It Is ènticipatÈd thit dementia care will rernain a key priority for the Society Demand from an ageing populatron for the accommodation Dffered by the Society Is likely to be steady 8iven our previou5 reputation for quality care at competitive prire5. As Irvsiees we were extremely disappointed tc have received the poor CQC ratings and immedlaiely set about implÈmentsng the retotnmerTrdatsons that they, and our local authority made. This continues to be of upmost importance and our highest prioritv in order to ensure that our re51dents receive ihe highest standards of core possible and ensure that we can support new residents In need of care. It kvas pleasing that dufin8 these in5pection5 people within our care and thelr relatrves who were Spoken to were extremely positsve èbout the t3re they or their family member receives Similarly, our staff member5 5pokp positively about their training and support received and about wor￿n@ With us In general. We cannot though and do not take these recommendation5 lighily as the implicatyons are too significant. We need to ensure that we are able to continue to operaie and provide quality care to thosewho need Itand also to maintain the levelsof occupancy required toensure we arefinènciallyviable for the foreseeable fLJture. Value for money The Strciety 15 charged with the re5pon51bilityfor providing and demonstratrng that It does offer value for Fnoney. The Society Views valuÈ for money èthievÈfflÈnt as being the optirnal b3lance between financial performance and the provision of a qualityservice that results in a high level of resident satrsfactsDn. The Society monitor5 financial and operational performance monthly and benthrn?rk5 Itself both within ihe Nation81 Abbeyh-eld 5ooety but ilso externallv- Page 4

DO￿￿gn Envekn￿ ILI.. E916288E-CAB14eC7-A2C8-C473FF442DF3 THE ABBEYFIELD LOUGHBOROUGH socim UMITED REPORTOFTrIÉ TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 ¥rRATEGIC REPOIiT Valuo lor money Icontinuedl Voluefor Money Metiics In response to the Regvlatorof Social HDU5ing Technicol note of April 2018 the So¢￿tY now repfirt5 on the Value for Monry metrics. There are 3 metrlcs covered by thls note. Metrlc l- Gearln This metrlt assesses how mtsch of the adjusted assets are made up of debt and the degree of dependence on debt finance. The gearlng of the Society15 49.24%12023- 42.46%). Metric 2- 0 eratiori l Mar The Operational Margin demonstrates the profltsbilityol tsperattng a55ets befoie exceptional expenses aretaken into account. The operafjor￿I marBln of the Soclety is neKative 3t-1.12%12023- negative at-13.92%1. rn This metric compares the operafjng surplus to total asset5 less current liabllthes. Forthe S¢ciety thi5 15 negative &t-0.57%12023- ne8atfve at-3.47%1. STRUCFURE, GOVERNANCÉ ANO MANAGÉMETrir status The SocSety Is a cornpanyi registered In England and Wale5 Ilmited by guaTontee (Number 7Y6941, havln8 no share capltal and with solely charitable purposes. It Is a150 a re8lStered charlty (Number 2381681 and with the Homes ind Comrnun￿es 4erTrcy asa hou51ng association (Number H05951. Members of the Board of Trustee5 Iri accordance with th2 Artitles of Association the members olthe Board of Trustees as below, are member5 ofthe SoThety. 8RBunn O Has￿￿¥$- Hon. Trtasurer FFay W G Holland- Vlce Chairman C Jennison R John50n- Chaifman and Hon. Secretary J Stephens Ideceased 10.07.20241 A Wood Reuultment and appointment of new tfU5tees The Board of Trustees Is typically £omprlsed Df between elght and tsvefve indlvidua15 Wlth a cross se¢tlon df manogement skills. Potenti31 trustees are initially approached by existing btsèrd members and invlted to attend two board meetrng5 to galn an understandln6 of the operations of the Society. They are also shown around the SDciety'5 houses to see how theyoperate. Following this prote$5 on iTrvhtatlontoJoin the board is made. Thetralnin8 needs of new board members are assessed based on thelr eXIs￿￿e skllls and experlerKe and the need for future training is kept under constant rewew. We are regularly looking to recruit other tru$tÈe$ arKI follobwry¥ the sad death of Mrs Stephens we currently have seven trustees èppointed which is Slsfficient to our requ1￿ments. Or¥an5$a￿onaI 5trucwre and8overnance The 5ocietyhas a clear fun£fjonal or8anSsational structurewlth each house benefitingfrom profe55ional r&re and cateringst8ff. There s also a well detined administration function within the Society and an athve board of trustees who oversee all decisio) rnakiJ& Day-to-day mana8ernent of the SociÈty is delegated by the Board te the General Manager Mr5 Kerry Cattell. The General Man4ee$ remuneration 15 revtewed annua15y by thÈ Chaim)an, discussed atthe staff sub-committee and a recommendation 15 made to the full Board. The salary of the Care Manager is reviewed by the General Manhger and then follows the same procedure ès that outlined for the General M3na8er. In both cases due atten￿On is glven to the Iccal recruitment 51tuation in determinirig the 5è1arie5. Th remuneration of all other employees is reviewed ann￿allY by the Flnance Committee. Pa8e 5

Do¢usign Envelope ID". E916288E.CAB146C7.A2C8-C473FF442DF3 THE ABBEYFIELD LOUGHBOROUGH SOCIETY LIMITED REPORT OF ThE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT STRucfuRE, GOVERNANCE AND MANAGEMENT Corporate governance The Society has adopted a Code of Conduct for Board members. This code reflects the seven principle5 of public life a5 adopted by the Nolan Committee. This 15 cornpliant with the Natron31 Housing Federation5 Excellence in Governance code in a￿1 areas with the exception of only one relarng to the adoptton of a Membership Policy with defined terms of oflice for all Board members. This is considered to be potentrally detrimental to the orgaDisatron'5 wèll-being in terrDs of CQC inspecknon&, the Society's current developmènt prograrnme, and the challenge5 the CBre sector 15 experiencing. The Board has condurted an értnual review of the effectiveness of the 5VStems of internal control. No instances have been identilied of intemal control weaknpsses resulting in material mi55tatement or1055. EVENTS SINCE THE END OF THE YEAR Informatyon rel8tyng to event5 since the end of the year 15 given in the notes to the financial 5tatement5. STAT£MENT OFTRUSTE£S' RESPONSIBILITIES The tru5tee5 (who are a150 the director5 of The Abbeylield Loughborough Society Lirnited for the purposes of cornpany lawl are responsible for preparing ihe Report of the Trustees and the financial statements in accDrdance Ylith applicable law and United Kin8doTn Accountrns Standard5 Iunited Kin8dorn Generally Accepted Aciounting Practice). Cornpany law requires the trustees to prepare financlal siarements for each financial yeac whlch give a true and fairview of the slate of affaiis of the charitable company énd of the Intoming resources and applicaknon af re50urce5, Including the income afid expenditure, ol the charitable cornpanyfor that period. In preparing thc>5e financial 5tstements. the trusiee5 are required to select suitable èccounbnÈ policies and then apply them consistently., observè the methods and principles in the Charity SORP,. makeiudgements and estifflate5 that are reasonable and prudent.. statewhetherapplicèble UK Accountrng Standards and the statement of Recommended PracbcE Accountin8 by Registered Social Housing Providers 2018 and FR5102 have beeD followed, subjèct to any rnatèrial departures disc105ed and explained In the h-nancial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate 10 presume that the charitèble tompany will conttnue in business. The trustee5 are re5pon5ible for keeping properaccounting records which di5closewith reasonableaccuracy èt any tirne the fina￿la1 posiron of the charitable company and to enable them to ensure thatthe financial statements comply with the Companies Art 2006 and the housing and Regeneration Act 2008 and the Ac¢ountiD8 Direction for Registered PrDvider5 of Social Hou51ng 2022. They are also responsible forsafeguarding the assets of the ch4ritable company and hence fortaking reasonable step5 for the prevention and derecDon of fraud and other Irregularities. In 50 far a5 the tru5tee5 are aware.. thEre 15 no relevant audit information of which the charitable cornpany's auditors are unaware,. and the trustees have taken all steps that they ought to have taken to make them5elve5 aware of any relevant audit information and to ￿tablIsh that the auditors are aware of that Informarion. AUDITORS The auditor5, Duncsn & Toplis Audit Limited, Siarurory Auditor, will be proposed for re-appointment at the forthcoming 14nnual General Meeting Repon of the trustees. incorporatyng & strateElc reporr. approved by ordef of the board of trustees, as the company directors, on and signed trn the board'5 behalf by.. 84E01D6%E1E488 Mr5 R Juhn50n- Chairman Page 6

Oocjjslgn Enve￿￿ ID.. E916288E-CAB146C7-A2C&C473FF442DF3 REPOIIT OFTHE INDEPENDENT AUDITORS TO THE MEMBERS OF TME ABBEYFIELD LOUGHBOROUGH SOCIETY LIMITEO Opinlon We have èudited t￿ finantial siatements of The Abbeyheld Loughborough Society ￿rnIted (the '¢ornpany'l for the year ended 31 March 2024 which comprise the Statement of Compreh2nsive Income, the Statement of Changes in Re5erve5, the Statement of Financial Position, the Statement of Cash Flows ond note5 to the financwl 5tsternent5. including a summary of significant accounting policie5. The linancial reporfjng framework that has been aPpl￿d in their preparaiion 15 applicable law arFd United Kin8dom Accounting StJndards (United Kingdom Generally Accepted Accountin8 Prathcel. In ouroplnlon the flnantial statements.. give a true and fairwew ol the State of the company's affairs as at 31 March 2024 and of its Sncome and expeTrditure, fortheyear then ended., have been propedy prepared In accordance wlth Unlted Klngdom Generally Accepted Accounting Prartl¢e.' and have been prepared in Accordance with the requirements of the Companies Act 2006. the Houslng and Regeneration Act 2OJ8 nd the Accounting Direcfjtrn for private registered providers of social housing in Engl6nd 2022. Baslsfor oplnlon We tonduttÈd our audlt in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitie5 under th05e 5tandard5 are further destribÈd in the Auditors. responslbiiilles for the atydit of the linancial staternents section of cur report. We are independent ol the campany in accordance with the ethical requirements that are relevantto our audit of the linantitl statements in the UK, including the FRC'S Ethlcal Standard. and we hove fulfilled our othe¥ Èthital responsibilities In a£cordance with these requlretnents. We believe that the audlt evldence we have obtalned is suffi'cient and appropriate to provide a basls for our opinlon. Materlal urKertalnty ¥¢lated to 801tt8 con¢e¥n We draw attention to the sectron related to going mncern in note 2 of the financial stbtements which Indicates that In order to continue ttr opÈratÈ, and operate at the occupancy levels that make that financially possible, the tompany needs to implement irnprevements and recomrnendation5 ari5in8from Teont inspectionsand pass follow up In5pe¢nons. As stated In note2,these events or condSYons. along with other matters as set forth in note 2, ind￿ate that è material uncertaiftty exists that may cast signilicant doubt on the compinvs abllltylo Con￿nUe a5 a going concern. Our opinion is not modilied in respect of this matter. In auditfn8 the Inancial statements, we have concluded that the dirertors, use (rf the golni concern basls of accountin8 in the preparotion of the financial statements is appropr4ate. Our responsibl1S￿e5 and the respon5ibllthe5 01 the dirertor5 Wlth respect tD 8cHn8 concern are descrlbed In the relevant 5ecbon5 of thls report. Other iTrfvJrm4ti The directors are responsible for the other Informabon. The other Information comprises the infomiallon included In the annual report. other than the financial statements and our Report of the IndependentAuditors thereon. Our oplnlon on theftnancial statements does not coverthe other information and. excepttoihe extent otherwSse expltitly stated in our reptsrt, we do not express any ferm of assurance conclusion therwn. In connection wlth our audit of the financial 5tsternents, ourre$ponslbillty is to read the 0therlnforma￿On and, In d¢in8 so, consider whether the othèr informa￿On Is mateyially Inconsistent wlth the financial statements or our krFowled8* obtained in the audlt or otherwise appe3r5 to be materially rni55tated. If we identify suth mèterlal Inconsistencies or apparent material mis$tatemÈnts, we are required to determine whether this gives rise to a material rnisststerTSent irithe financlal statsments thernselves. If, based on the work we have performed, we conclude that there is a materlal mSsst3tement Df thi5 Other inforrnation, we are required to report that fact. We have nothing to report In this regard. Oplnlons oh other mattets pres£rlbed by the Companles Art 2006 In our opinion, based on the work undertaken in the covrse of the audit.. Informa￿On given in the Strategic Report and the Report of the TrusteÈs for the flnancial year for whSch the financial staternent5 are prepared 15 consistent with the financlèl statements. and the Strate8lc Report and the Report of the Trustee5 has been prepared in accordance wth appllcèble legal requirements. Pagt 7

Docusign Envelopè ID." E916288E-cAB146C7-A2C￿4nFF442DF3 REPORT OF THE INDEPENDENT AUDITORS TOTHE MEMBERS OF TFIE ABOEYFIELD LOUGHBOROUGH SOCIETY LIMITED Matters on which we are required io report by exceptfon In the light of the knowledge and under5taridin8 of the company Ènd its environment obtained In rhe course of the iudit, we have not identified material misstaiements in rhe Strategic Report and the Report of the Trustees. We have nothing to report in respéct of the following rnatter5 where the Companie5 Act 2006 requires us to repon to you If, in our opinion-. adeouate atcounting records have not been kept or returns adequate for our audit have not been received froffl branches not V15ited by us,. or the financial staiements are not in agreemeni With the accounrng records and returns., or Certain disclosures of directors, remuneratson specilied by law are not made,. or we have not received all thÈ information and explanations we require for our 3udit' or In addition, we have nothing to report in respett of the following mètter where the Housing arid RegenerBtion Act 2008 requires u5 to report to you if, in oilr opinion.. 5ati5factory system of control over transactions has not been rnairTrtained. Re5pon5ibilities ol trustees As Èxplèinèd more fully In the Statement of Trustees. Respon*bilities, the trustees Iwho are also the directors of the company for the purposes ol company13wl are re5pon5ible for the prepBrabon of the linancial statements and for being satisfied that they Rive a true and fair view. ond for such internal control as the trustees determinE 15 nece55ary to enable the preparation of linancial statemÈnts that are free from material misstatement, whether due to fraud OT error. In preparing the financial statements. the director5 are responsible for assessing the compény'$ ability to tontinue a5 a going concern, distlosin& as applicable, matters related to 80in8 concern and usin£ the going concern basis of accountrng unle55 the directofse1t￿r intend to liquidate the company or to cease operation5, or have rio realistic alternative but to do SD. Page 8

Dowslgn Envebpe ID. E91628eE-CA8146C7-A2C8-C473FF442DF3 REPORT OFTHE INDtP£NDÉNT AUDITORSTOTHE MEMBERS OF THE ABBEYFIELD LOVGH8OROUGH SOCIETY UMITED Our re$poTr$iblll￿e5ft¥ the audit ol the finanaal statements Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from matertal m1S5taternent, whetherduetofraud orerror, ¢ndtO 155ue a Report of the IndependentAuditors that includèsouropinion. Reasonable a55urance is a high level of assurance, but Is not a Euarantee that èn aud￿ condurtÈd in actordante ￿th ISAS IUKI will ahvay5 detert a materSal misstatement when it exists. Mi5Statefflènt5 can arise from fraud orerror and are considered material Sf. Sndividuallyor in the a8gre8ate, they could rea50nobly be expected to influence the economic decisi¢ns of users taken on the basis of these linancièl Statements. IrrÈgularitie5, including froud, are instances of non-compliance wth laws and re8ul8tions. We design procedures ITI line with our responsibilities. outlined above, to detett mèterial mlsstatements in respert of irre¥ul4ritiè5, includin8 fraud. The extent to which our procedures are capable of deteci*ng irrngularities, includin8fr3ud 15 detailed below.. We have identified areas of laws and regulattons that could reasonttbly be expected to have a moterial effect on the financiol statÈments frtsm Our general comrnercial experlence, knowledge of the sector, a revlew of reÉulatory and legal correspondence and through discus5ion5 Wlth Directors and other manaÉement obtained as part of the work required by auditin8 5tandard5. We have also discussed with the Directors and othèr managernent the policies 3nd PTocedures rel3tynE to compliance with laws and re8ulaUons. We communit&tÈd laws and resulations throughout the team and remained alert to any Indlcatrons of non-co)npllance throughout the audiL The potential impactof different laws and regulationsvaries considerably. Flr5tly. thecompany is stsblectto laws and regulations that dirertly in7PaCt the h-nancial statements (for example ftnancial reportinÉ le¥i51ationl and we have a55es5ed the extent of compliance wlth such laws as part of our financial statemènts avdit. We evHluated management's incentives and opporrunitre5 for fraudulent manipulation of the financial staternents lincludlng risk of override of controlsl and determined that the principal rlskswere related to managementbids In accotsntingestimate5 a)djud8emental areasof the financial ststements such as depreciationof tangible fixed assets as well as the risk of inappropriate journal entrie5 to En3riipvlate reported protitability- Audit procedures performed by the en8a8Èment team irKluded the identification and testing of unusual material Journ&1 entries and £hallen&ng management on key e5timate5, a55umptions and judgements made In the preparation of the finantial statements. We tBrried out detailed substantive tests on accountsng esi(mates, Includin8 revlewln8 the methods and dats used by man#gement to m3ke those estrmates such 0$ residual value5 and expected a55et replacementcycles, reperformingthe calculation, revlewlnB the outcome of prlor yearestimates, and reviewing the outcome of Current year esnmates since the ftnanoal report5n8 date. SEcundly. the iompany is subject to other law5 and regulatyon5 where the consequence lor non-compllance could have a mateflal effect the èrnounts or di5c105ures in the financial statements. We identslled the foll¢wn8 areas as those most liketyto have such an effect.. The Landlord and Tenant Att, Health and Social Care Att, Forxl SafÈty regylatlons, COVID-19 infe¢tion control Ind Employment laws. Avditing standard5 limitthe required audlt procedtsres to identtfv non-compllance wth these laws and rÈ8ulations to en4uiry of t Directors and other mana$ement and inspethon. Thi5 included a review uf inspethon reports for ariy evidence ol non-compllance, in addition to 8 review of statutory meeting minutes and solicitor correspondence. Through these procedures, if we became awère of any non-compliance, we considered the impact on the procedures performed on the related financlal statemènt items. Owin8 to the inherent limitation5 of an oudit, there is an unavoidable rysk that we may not have detected some materK41 m1s5tsternents Sn the flnanclal statements, even though we have properly planned and performed our audit In a¢Eor(SHnce with auditing standards. The further rernoved non-compliance with law5 and re¥ulBtions is from the events and tr•nsaclions reflected In the financial staterTrent5, the less likely the inherently limited procedures required by auditing standards would idenfjfy It. As wlth any 8udit,there 15 a greater rfsk of non-detecfjon of iire8ularl#es asthese may Involve colluslon, Inten￿o￿al omissionsof the override of irTrtemal Controls. We are not re5pon5ible for preventing rh)n-compliance and cannot be expected to detect non-cornpllance with all laws and regul8tion5. A further description of our responsibilities for the audit of the fvnanclal staterneTrts is located OD the Financial Ileporfjng Councll's website atwwi.frc.org.uklauditorsresponsibil5tres. This descriptron forms part of our Report of the Independent Auditors. P3ue 9

rJoW$￿n En¥eiope ID.. E918288E-CAB146C7.A2G&C473FF442DF3 REPORTOFTHE INDEPENDENT AUtyTORSTOThE MEMBERS OF THE AB8EYFIELO LOUGH8OROUGH SOCIEfY UMrrED Ux of our report This report Is made solely to the company'5 members, as a bedy, in attordancewith Chapter 3 of Part 16 olthe Companies Att 2006 and section 137 Of the Housin8 aDd Regeneration Act 2008 Our audit work has been undertaken 50 that we rni8ht State to the company's members those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest extent perTnhtÈd by law, we do not acceptor assume responsibility to anyone other than the company and thecompany's rTTembers as a body. for our audlt work, forthis report, or for the opinions we have fermed. Nlall KingslÈy FCA (Senior Ststutory AudV(orl for ènd on behalf of E)uncan & Toplls Audit Limittd, Statutory Audltor 3 Princes Court Royal Way Lou8hborou8h Leicestershire LEII 5XR 27-NOV-24 1 16:14 GMT Page 10

DocuskJn En￿lope ID.. E916288E-CAB146C702C&C473FF442DF3 THE ABBEYFIELD LOUGH8OROUfjH SOCIETY LIMITED STATEMEP+T OF COMPREHENSIVE INCOME IINCORPORATING AN INCOME AND EXPENDITURE ACCOUNr) FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Twnover 3,078,134 1,667,144 Cost of sales 771119 Gross surpluslldefitltl 307.015 138.9511 Adrnini51rative expenses 1341.4011 1238,3601 Otkeroperating inrome 45,220 Operatinideficit 134.3861 1232,0911 Provision tor grant repayment Impairment of tsn8lble fixed assets 1271,2091 1426,9391 Interest payable and otherfinènce costs Investment irKome Other incorne Movement in fair value of fi￿ncIal instruments 1197,7631 28.931 7.185 33,176 1131,5911 119,8491 13,601 142,2041 TOTALCOMPREHENSIVE LOSS FOR THE YEAR 1861.fK151 1412,1341 Cop￿INUING OPERAnONS I Inconie and expenditure h35 ari5eft from contynijing artivities. The StatÈmÈnt of Comprehen5bve lrtomÉ was approved by the board on ............................................. (¥lL*S6￿1￿￿e6........,........... Mrs R Johnson- Trustee D Hasttn8s- Trtsstee The note5 form part of these Ilnancial ststements Pa8e 11

Docusign Envdope ID". E916288E-CAB1-46C7-A2C8-C473FF442DF3 THE ABBEYFIELD LOUGHBOROUGW socIFrY LIMITED srATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2024 Income and expenditure reserve rot31 At l Ap¥il Z023 3.522.554 3,522,554 I861,￿5) 1861,0051 Totsl comprehensive income 1861,(h)51 1861,0051 At 31 March 2024 2.661.549 2.661.549 The notes form part of these financial statemÈnt5 Page 12

Docuskjn Envelope ID.. E9162B8ELA8146C7.A2CPX473FF4I2DF3 THE A8BEYFIELO LQUGHBOROUGH SOCIETY UMITED STATEME￿ OF FINA￿a￿ pOS￿10N 31 MARCH 2024 2024 2023 Notes FIXED ASSErs Tangible asset5 ls)¥estments li 12 5,559,242 512,371 5,996.061 576,567 6,071.613 6,572,628 CURRÈNf ASSÉTS Debtors Cash at bank and in hand 13 47,480 339,340 55,228 326.913 386,820 382,141 CREDITORS Amount5 falling due within one yeor 14 1430.2351 1268,3501 NET CURRENT ILIABILITIESI IASSETS 143.4151 113,791 TOTAL ASSEfs LE55 cuRRE￿{lA81L￿IEs 6.028,198 6,686.419 CREDITORS Amounts falling due after more than one year 15 12.536,0411 13.L63,8651 PROVISIONS FOR LIAOIUTies 1830,6081 NET ASSETS 2,661,549 3,522.554 CAPITAL AND RESERVES Income arid expendlture reserve 27 1,661,549 3,522.554 TOTAL FUNOS 2,661.549 3,522,554 The financial statement5 %Yere #pproved bythe Board of Trustees and authorised for issue on................ signed on Its behalf by.. . and were f. EEe*1YA14F34EO. D M Hast5n8s- Trustee "'14¥thitl8¥É1'g4è1J':" R Johnson- Trustee The t)otes form part of these fI￿ncial statements Page 13

Docutsi9n Envelope ID.. E916288E-CA8146C7-A2ce-C473FF4420F3 THE ABBEYFIELD LOVGHBOROUGH SOCIETY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note5 Cash Ilows fr¢Jm opera#t)g athvlries Cash generated frorn operation5 214,533 1575.1251 Net cash used in operating activitie5 214,533 1575,1251 Cash flows from investing artivities Purchase of tangible h-xed asseis Sale of fixed asset investment5 Interest received and similar Incorne 1119,9591 101,439 31,752 11,421,402) 600.970 40,814 cash provided by/lu5ed inl In¥e5hng activibe5 13,232 1779,6181 Cash flows frorn financirbg activities New loans In year Capital rÈpèymÈnts in year Interest paid 1,865,635 117.8721 1197.7631 120.6161 Net cosh provided by financing activities 1215,6351 1.845,019 Change in tash and cash equlvalents in ihe reparting period 12,130 1752.1911 Cash and cash equivalents at the beEinning of the reporting period 328,216 1,080,407 Cash and cash equivaltnts at the of the report*ng period 340,346 328,216 The notes form pan of these fi.nancial 5taternent5 Page 14

Docusign Enve*)pe ID". E916288E-CAB148C742C&C473FF442DF3 THÈ ABBEYFIELD LOVGHBOROUGH SOCIEfY UMITED NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 RÉCONOUATION OF NET EXPENDNRE TO N￿Cl$￿ FLOW FROM OPERATING AcfwiTIES 2024 2023 Operat￿8 defitil far the yeor 134,3861 1232,0911 Adjustments for.. Depreciation charge5 Provlsion for grant rep?yrnent Movement on deferred capital 8rant Decrease/lincrea5el in debtor5 Increaselldecreasel in credltors Increase in provisions 129,839 1271,2091 1581,9591 7,748 133.892 830,608 B2,917 18,5631 124,2951 1393,0931 Net cash used In oper•dons 214,533 1575,1251 ANALYSIS OFCASH AND CASH EQUIVALENTS 2024 2023 Cash in hand Notice deposit5 (less than 3 months) Cash deposrt on FIMed Asset Investment 2,122 337,218 324,LK)7 1,303 Total cash arml cash eq￿￿ents 340,346 328.216 ANALYSIS OF CMANGE5 IN DEBT At 1.4.23 Cash flow At 31.3.24 Net Cash at bank and in hand 326,913 12,427 339,340 326,913 12,427 339,340 P¢bt Debts falling due within I year Debts falling due after I year 117,8721 12,581,906) 127,9931 45,865 145,8651 2,536,0411 12,$99,7781 17,872 12.58J,9061 T￿al 12,272,865) 30,299 2,242,5661 The notes form part of these flnancial 5t3tement5 Pa8e 15

Docusign Envelope ID.. E916288E-CAU146C7-A2C8-C473FF4420F3 THE ABBEYFIELD LOUGHBOROUGH SOCI￿ LIMITED NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GENERAL INFQRMATIQN The socieiy is 4 company limited byguarantee, incorporated in Englafid and Wale5 INumber7S46941. having no share caprtal and with solely charitable purposes. It is also reEistefed as a charity (Number 2381681 and with the Housing corpora￿0￿ as a housing association (Nurnber H05951. The cornpany 15 governed by the Landlord and Tenant Act 1985. The reglstered ofh.ce is 44 Westfield Trrive. LoughborouEh, le￿eSter$hIre, LEII 3QL. The financial 5tatement$ are prepared in Sreding which isthe functionèl currency of the Society and rounded to the nearest The financial st3tements cover the individual entity The 50cietycon5titutes a public benelit entity a5 defined by FRS 102. The significant accounting pollcies applled in the preparation of the fi-nanclal statements are set out below. These policies have been con513tently applied to all years presented unless otherwise stated. ACCOUNfiNG POLICIES &asis of preparing the financial statements The flnancial starernents have been prepared lft accordance wlth applicable accounttn8 Standards includin8 Financial Reporhng Standard 102 The Financial Reporhng Standard Applicable in the UK and Republic of Ireland IFRS 1021, the Staterneni of Recommended Practice for Social Housing Providers 2018. and with the Accounting Oirethon for p*i¥ate reElStered providers of social housing in Engiand 2022 The financial siarements are also prepared under the reouirements of the Housing and Regeneration Act 2008 and the Cornpanie5 Ait 2006. The financial staiement5 h3¥e been prepared on a 8oln8 concern basis under rhe historical cost conwenfjon, modified to include certain item5 at fair value. Turnover Turnovèr is measured at the fair value of the consideratron received or receivable. The polities adopted for the rpcognition of turnover are as follow5.. Turnover represents rentil and service charges income receivable In the year net of rent and service charge 1055e5 from v(%d5. revenue graDt5 from the 8overntnent (local authorities) and Home5 England and the Regulator of Sociol Hovsin& Tangible lixed assets and depreciation Tan8ible lixed assets (including social housing propethesl ère stated at tost lÈss accumulBted depreciation and Occurnulated Impairment losses. Cost includes costs directly attribtstable to making ihe asset capable of operatyng as intended such as the cost of acquiring land and buildinÉs, developrnents costs, interest charges on loèns during the developrnent period and expenditure on irnprovernent5. Expenditure on improvements will only be capita115ed when It results In incremental future benefits such as increasing rentsl IncDme, reducing maintenance Costs or resulttng in a significant extension of the useful econllmic life of the prtrperty. Depreciatron is provided on all tangible fixed assets Èxcept freehold land which Is not depreciated on accountof Its indefinSte useful economic life. at rates calculèted to write off the cost, less esknmèted residual vèlue. of each a55et on a 5Y5temati A55ets and their component5 are deprecièted overtheir useful lives on the following ba515'. DescrSpfjon E5trmated useful life Land & Buildings.. struCt￿le Kitchen Bathroom White goods Roof5 Lifts 30 30 io 50 15 Fi¥tures, litbngs & equipment Page 16 conttnued...

Docusyn Envdope ID.. E916286E¢A8146C7.A2C8£473FF442DF3 THE ABBEYFIÉLD LOUGH80ROUGH SOCIETY UMITED NOTES TOTHE FINANCIAL STATEMENTS. ¢￿tynued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNnNG POLICIES- continued TarE8ible fixed asset$ and doretiation Housing properties under construction are not depreciated unfjl they are In use. At each repothng date, tangible lixed èssets are rev￿Wed te deterrnlne whethew there 15 any indication that those èssets have suffered an Impairment b55. If there 15 an indicatityn of possible impèirment, the recoverable arnount of any affected •sset is esttmated and compared wlth Its carryingamount. Ifthe ÈstiFnatÈd retoverableamountis lev4er, thecarryin8 amount is reduced to its e5tirnated iecoverable amounL and an impèirment loss 15 recoEni5ed immediately in the statement of tomprehensfve Income, If an impairment 1055 5ub5equenfjy feverses, the carrwng amount of the asset is increased to the revised Èstimate of its recoverable amount. but not In excess of the omount thHt would have bèen detem)Sned had no impairment 195s been reco8ni5ed for the asset in prior years. A reversal of an impairment 15 recognised imrnodiètely In the statement of cornprehen5we Income. Corptyr•tkn tax nd VAT The seciety has charitable statu5 and is exempt frorn Corporation Tax on the Sncome it has receDied. The society is not registered for VAT. Ac£ordlngly no VAT 15 ch3r£ed to residents and the expendlture In the statement of cornprehen5fve income Include5 the r¢levantVAT. Peftslon costs and other pOst￿ellIerne￿t benefits The society operates a dellned ¢OntrIbu￿On pension scheme. ContrSbutyons payable to the sotiety's pension scheme are charged to the Statement of Comprehensive Intorne in the period to which they relate. Socl•l hou4hg 8r•nt Where Soclèl Housing Grènts1SHGI, are received in respect of developments these Erènts are recoEnised atthe fairvalue of the èsset received or rtcelvable. Where the assets are accountÈd for using the cost model then the government 8Tènt 15 ccounted lor using the attruals model. The dlfference between the falr value of the asset and the conslderatron is reeo6nised as a liability and arnorbsed over the useful etonomlc life of the asset. Thi5 dmorti5ation is retO8rwsed wlthln ttsmover. Where disposal of 8ovemrnent donated assets are reqtsired to be fecycled, a liability 15 included to recognlse this obllgatron. Monetary Oonatlons Monetary donation5 to the Society are cred￿ed in the finanual ststements on a feceipt5 basis. Debtws and credkors recehable I payablowllhln on¢y¢Jr Debtors ènd creditors Wlth no Stated inteiest rate and receivable or payable within one year are recorded at transaction price. Any losses arisintfrom impairrnent are recognlsed In the statement of comprehensive inwmt in other administrattve e¥penses. PrO￿510n$ Provisions are recognised when the soclety ha5 an obll8ation at the financial reportln8 date as a result of o p4st event, it IS probable that an oythow of econorni£ ber￿Tt5 will be reouired in settlement and the amount tan be rellablyesfjmated. Provisioni for tytlital maintenance or major works to existing stock are not rnade unless they represent commitments or obliEotions at the financial reportin8 date where there Is no discretion to avosd OT delby the expendlture. Recycled Capitsl Grants Fund Capital grantscon be rerycled under certain condition, If è propettr is sold, or rf another relevant eventtakes place. Recycled grant5 tan be used for projects approved by Homes England andthe Re8ulatorof Soclal Housing and they are tredited tothe Recycled Caplt41 Grant Fund within15ablli￿e$. In certain clrtumstances. such 85 the sale of housing properdes, capital grants may be repayable, and, in that event is subordinèted to the repayment of othèr loafis by a8reement wlth Home5 England and the Reiulator of Social Housing. It 15 accounted for as s¢xn as the liability 3rise5 within crditors.' amounts falling due within one year. When any grant to be recycled or repaid is less than the grant relating to the disposal, the difference is treated a5 abated Érant. Abated rapitsl grants are treated as a component of the 5urplu5 or deficit on disposal. e5tmer Fixed asset investments are reco8nised initially at fair value whSch is nomially the transaction price excluding transactson costs. Subsequently. they arè measured at fair value through the statement of comprehenswe incorne rf the shares are publiclytraded or theiT fairvalue can otherwlse be measured reliably. Page 17 condnved...

Dowsign Envdope ID.. E916288E.CAB146C7_A2C8-C473FF442DF3 ThE ABSEYFIELD LOUGHBOROUGH SOCIETY LIMThED NOTESTOTHE FINANCIAL STATEMENTS- (M￿nUed FOR THE YEAR ENO£D 31 MARCH 2024 ACCOUNTING POLICIES- contlr+ued Loan5. bcrrowings and short terni deposlls These Instruments arÈ initially recorded at the transaction price less any transaction costs Ihistorical costl. FRS102 requires that the basic linanci31 Instrumenls are subseouefttly mèasured èt arDorhsed cost5, however the society ha5 calculated thar the (IifFerence between historical cost ènd amorti5ed cost ba515 1$ not material and 50 these financial instruments are stated in the statement of flnancial posi￿0￿ èt historical cost. Loan5 and borrowings that are repayable or recèivable within one year are not discounted. Gotng concern The Society has made operating delicits in the last four years and now sees itself in a net current liability positron at the year end. De5pire the poor performance, the sotiÈty remains In a net a55et P05ibon. During th15 period the society Suffered a hi8h level of voids at both it5 Westfield Drive and Ingleside House properries. In addibon, wages for care staff and agency labour nearly doubled. 80th voids and labour Costs Increased signilicantly following the inspectian carried out by the Care Qualitv Commission ICQCI In September 2023 where the society received an overall rating of 'inadequéte" Separate inspections were carried out by the Leice5tershife County Council ILCCI just a few days later as part of their contfatt mtsnitorin£ ¥15115 and theytoo idenbfied contract cornpliance points to be actioned. Followin8 the CQC inspection in Septernber 2023. the societywere suspended from actopting any fflore resident5 untrl their recommendation5 were implemented and overèll rotin8 wa5 boosted at the next inspection visit in February 2024 This did ot prevent the society from confjnuing to care for the resident5 already in It5 care during the intervening six month period. The society were also Informed that they were understsffed and needed more care staff per shift to care for resident5. The society Subsequently improved their overall rating with the CQC to 'reqJires Improvement. in February 2024. The society also addressed all contract compliance points raised by the LCC However. occupancy levels hève been slow to pick up since the inspections carried out in September 2023. The society's forecasts and plans to return to ari operating surplus were bèsed on achievin8 sufficiont occupancy at both Ingle5ide House and at its WestField Drive Property. Whilst another operating delicit is expected for the next h-nancial year. the 50cietV IS OPDrnlStic that results can be turned around. Frorn January 2025. the Society are aiming to Improve otcupènty by two residents at eich house each rnonth. In additrDn. the Sociery have temporèrlly closed the upper floor at In8￿SIde House to reduce operating costs whi15t contrnuing to provide an adeqvate standard Df care to re5ident5. If the society is unsuccessful in athievin¥ budgeted occupancy levels, then this could 5erlousiy impact its ability to continue. The sotiety di5P05Ed of all remaining investments after the year end and with significant operating deh'cits being incurred, there is a risk that the Society runs out of sufficient working capital to continue. Furthermore, Should the Society receive another Inadeouate ratinÈ frotn the CQC, thi5 15 listed as B default event on the sociÈtY'5 loan with the Charity bank and therefore could result in the loan relerred to in note IS becorning repèyable in addinon to any future breaches of loan CDvenant5 that are not waived by the bank. The trustees are tommitted to maintaining an adeouate standard of care for residents with the goèl of regtiniryg the CQC rating of 'good" The trusiees believe they have ihe senior practice management team in plate to ensure that the standard of care continues to Improve. F)rthis reason, the linancial staternent5 have been prepared on thegoing concern basis asthis is still considered appropriate bythe trustee5. There are though as a result of the above mèterial uncertainbes related to events or Cond￿On$ thèt may tast doubt on the enDt¢s ability to £ontsnue going concern for the foreseeable luture and, thereforp the society rn18ht be unable to realise its assets and discharge it5 liabiliDes in Ihe nofmal course of business. Judgements and kry SO￿rreS of estimation yncertainty On transitton to FR5102 the historical informauon to breèk down housing property assets into componentswas notavailable without undue cost or effort, and therefore has been included as structure within land and buildings and consequently depreciated over 100 years. Housini property a55et5 will in future be broken down into components based on management's a55essment of the properhes and useful economic lives will be assigned to these components. PagÈ 18 cont5nued...

Do￿￿j￿ Envelope ID.. E916288E-CA8146C7-A2C&C473FF442DF3 THE AB8EYFIELD LOUGHBOROUGH 50CIÉYY UMITED NOTES TO THE FINANCIAL STATEMENTS- ¢ontlnuÈd FOR THE VEAR ENOED 31 MARCH 2024 TURNOVER 2024 2023 Rent5 received Vold losses Amorhsed government grdnts 3,925,858 1856,2821 8,558 2,274,598 1616,0171 8,563 Net income from re%dential charges 3.078,134 1,667.144 OTHER OPEftAn14G INCOME 2024 2023 Grant 45,220 other operayng incorne relates to intome recelved In the prior year frorn the local councll In relation to InfEction Control, Rapid Testin8and Workforce Capacity. IncornÈ 15 recognised on a systematic basis ower the PÈTiod in which the related cost5 for which the grant is intended to compensate are re¢o8rtised. EXCEPTIONAL ITEMS 2024 I023 Provision for 8rant repayment Impairment of tsngible fixed 4sset5 271,209 426,939 Exreptional items 698,148 The society chan8ed the purpose of one of their housin6 propertie5 from 5UPPOrted housing to dernenti4 Care. This resulted in historic grants from Home5 England relating to thÈ hcusirvd property becorning repayèble in the year. Impairment losse5 in respect of tangible fixed assets arose following a professional valuatron being performed for freehold property in May 2023 based on a current a55e55fflent of market value as a fully equipped operafjonal enrty. The number LTrf units imparted by thè impairment loss is two. The ￿rry1r% value cf these assets prlor to the re¢ointNon of the impairment loss was £5,626,93912023.. £5,640,6171. INVESTMENT INCOME 20Z4 2023 Income frcm listed investments Profitll10551 on disptssèl of Ilsted Irwestments Bank interest 17,972 4.364 6.595 25,461 147,0621 1,752 28.931 119,8491 MOVÉMENT IN FAIR VALUE OF FINANCIAL INSTRUMENTS 2024 2023 Movemtnt in fairvalue of Fixed A55el invÈstmÈnts 33,L76 142,2041 P3Ee 19 confjnued...

DOcus￿n Etwelope ID.. E916288E£AB146C7-A2C8-C473FF442DF3 THE ABBEYFIELD LOUGHBOROUGH SOCIETY UMrrED NOTESTO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 SURPiUS/IDEFICITI ON OROINARY A￿1VITIEs Surplus/ldeh'citl is stated after char8indlcreditin81-. 2024 2023 Depreciatron- owned assets Impairment of tangible fixed a55et5 Auditor'5 rernuneration for audit Grants released to income Provision for grant repayment 129,839 426.939 25.680 18.5581 271.209 82.917 10,680 18.5631 The auditors remunerafjon shown in 2024 includes a £7.680 under-provision relating to the 2023 audit. TRUSTEES, REMUNERATION AND BENEFITS Key managefflent personnel neither received or waived any remuneration during the yeèr12023'. nill. No rernuneration was recewed by non-execurve board members12023.' nill. Trustees, expenses There were £478 trustees, expenses pèid during the Veèr ended 31 March 202412023.- £3381. io. STAFF cosrs 2024 2023 Wa8e5 and salarie5 Social security costs Other pension cost5 1,728,920 112,093 19,972 1,010,848 65,751 15,453 1,860,985 l.U92.052 The average monthly number of employees duringthe year was as fo11ows'. 2024 2023 Administration Care staff 83 47 87 51 No employees received emolurnents in excess of £60,000. Pa8e 20 conttnuÈd...

Docu5iJn Erwebpe ID.. E918288E-CA6146C7-A2C8-C473FF4420F3 THE ABBEYFIELD LOUGH8OROUGH SOCIETY LIMITED NOTES TO THE FINANCIAL STAfEMEKfs- continued FOR THE YEAR ENDED 31 MARCH 2024 ii. YANGIBLE FIXED Assrrs F￿xtureS and fitb Freehold property Plant and mhchinery Tota15 coFr At l Aprll 2023 Addittons 6.172,510 48,212 8,124 677,751 71,747 6,858,385 119.959 At 31 Maich 2024 6,220,722 8,124 749,498 6,978,344 DEPRECIATION At l April 2023 Charge for year lrnpairment 531,893 61,890 426,939 3,894 163 326,537 67,786 862,324 129,839 426,939 At 31 March 2024 1.020,722 4,057 394,323 1,419,102 NEf 8OOK VALUE At 31 March 2024 5.200,rh)o 4,067 355,175 5,559,242 At 31 Marth 2023 5,640,617 4,230 351,214 5,996,061 All freehold prOpe￿e$ held for letrn8 are tornpleted propÈthes and therÈ ttrè none under tttrtstruthtsn. Total attumulated irnpairments of £Nil are recognised In the opening Posi￿On. 12. FIXED Assrr INVESfMÉNts Cash and settlements pending Listed Snvestments Totals KEfvALVE At L Aprll 2023 DispDsals Rev4luation$ Cash movement 575,264 197,0751 33,176 1.303 576,567 197,0751 33,176 12971 12971 At 31 March 2024 511,365 1,006 512,371 NET BOOK VALUE At 31 March 2024 511.365 1,006 S12,371 At 31 March 2023 575,264 1,303 576.567 There were no investmentassets outsidethe UK. Cost orvaluat5on at 31 March 2024 is represented by.. Cash 3nd settlements pending investments valUa￿an in 2024 511,365 I,￿6 512.371 The historical cost of these investments Is £388.092120Z3.. £466,8761. The falrwalueof listed investments is deterniined by reference to the quoted prlce for Identical a55ets in 4n acttve rnarket at the linantial reporting date. Page 21 continued...

Oocusign Envelope ID.. E91e288E-CA8146C7J2C8-C473FF442DF3 THE AB8EYFIELD LQUGHBQROUGH SOCIETY tIMITED NOTES TO THE FINANCIAL STATEMENTS- com￿nUed FOR THE YEAR ENDED 31 MARCH ZO24 13. DEBTORS.. Amouwfs FAILING OUE WITHIN ONE YEAR 2024 2023 RÈsidential ch3rge5 due and unpaid Other debtors Prepayments 20,484 1,514 25,482 37,576 1.405 16,247 47,480 55,228 14. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans and overdrafts15ee note 171 Trade creditors Payments rEceNed trn account Social security Bnd other taxe& Other creditors Accrua15 and deferred income 45,865 156,531 SO,046 27.716 10,381 139,696 17.872 112.622 27,817 18.149 10.728 81,L62 430,235 268,350 The average number of days between receipt and payment of purchase invoices is 4512023." 101 days. 15. CREOITORS.. AMOUNfs FALLING DUE AFTER PAORE THAN ONE YEAR 2024 2023 Bank loans (see note 171 Deferred capital Érants 2,536,041 2,581.906 581,959 2,536,041 3,163,865 16. LOANS An analy515 of the rnaturity of loans is given below.. 2024 2023 Amovnts falling due within one year on demand.. Bank loans 45,865 17,872 Amounts falling between onè two yeèrs.. Bank loans- 1-2 years 50,437 45.183 Amounts fallin8 due between two and five years.. Bank loans- 2-5 years 176,039 157.941 Amounts falling due in more than five years-. Repayable by Instèlments-. Bank loan5 rnorp 5 yr by instsiments 2,309.565 2,378.782 The society has ene bank loan outstanding at the yeir-end. The society Is required to repay the capital and interest on thè loan by monthly instalments up un￿1 the final repayment date. The interest rate is ser at 2 65% above the bank base rate. Page 22 contrnued...

t)ocusign En¥elope ID.. E916288E.CA8146C7-N2C84473FF4420F3 THÈ ABBEYFIÉLD LOUGHBOROUGH SOCIETY LIMITED NOTES YOTMe FINANCIAL sfATEMENfs- contlnued FOR THE YEAR ENDED 31 MARCH 2024 16. LOAN5 Icontinuedl Durlngthe year the sodety breathed one loan covenartt clause relattngto debt serv1￿ cgver. Dve to this breach. the bank ￿S ontr4ctu3lly entitled to request immediate repayment Of the ovtst4ndinE loan arnount shown above. However, the b4nk has adreed not to take anyfurtheraction as a resultofthls breèch. Therefore, it has not been deemed necessary to reclasslfy the bank loan asfulw owing wlthin one year. The society will be ￿qUIred to comply with the ban covenants 8oin8 forward. 17. SECURED DEBTS The followin8 secured debts are included wtthin creditors.. 2024 2023 Bank loans 2,581,9D6 2.599,778 Afixed and floating char8e dated 16 Marth 2021 15 heldover 190Ashby Road and 44Westfield Drive to securet￿borrOWingS from the society bankers. PROVISIONS FOR UABILITIES 2024 2023 Prowsions for grant repayment 830.608 The society changed the purpose of one of their housing properties from supported housin8 to deMen￿a carè. TNS resulted In historic grants of £830.608 from Hornes England relating to the housing property becoming repayable in the year. Homes England havÈ allowed the deferral of the grant repèyment until there is an improvemeffl In the society's ftnèncial pOsi￿On such that repayrnent of the 8rant 15 P055ible Bnd appropriate. The trustee5 are unable to estimate when the society will be in a financial positron to repay the grant and for thi5 rea50n the wovision has not been discounted for the effect of the time value of money. Instead the provision is reco8nised at the face value ol the amount a8reed wlth Hornes England to settle the obli8ation. 19. PENSION COMMITMENTS The Society ope¥ate5 a delined contribyvon pension scherne. The assets of the 5rherne are held 5eparatelyfrtrm those ofthe soclety in an Independently administered fund. Contrlbut(ons payable bythe society amounted to £19,97212023.. £15,453>. OTHER FINANCIAL COMMITMENTS The Company has the following commitments due as ksllows.. 2024 2023 Due In less than one year Due between two and five years Due in more than five years 44.402 70,245 640 26,341 70,272 5.741 115,287 102,354 Page 23 ¢ontlnued...

Docuswn Envelope ID.. E916266E-CA8146C7.A2C8-C473FF442DF3 THE ABBEYFIELD LOLIGHBOROUGH SOCIÉTY LIMITED NOTES TO THE FINANCIAL STATEMENTS- contfnued FOR THE YEAR ENDED 31 MARCH 2024 21. RELATED PARTY DISCLOSURES There were no related party transacrions forihe year ended 31 March 2024. 22. EVENTS AFTER THE REPORTING OATE Folltrwing the year-end, the seciety disposed of all of its listed Investments for £516.022. The Charity Bank extended their available loan Facility to the society by £IOO,WO after the year-end. 23. flNANCIAL INSTRUMENTS The carrying amounts of The Abbeyfield Lou8hborou8h Soclety Limlted's financlèl Instruments are as follows.. 2024 2023 Financial assets Measured at fair value through the statement of comprehenswe Income.. Fixed asset inve5tment5 Inote 121 511,365 575.264 511.365 575.254 Income and expense 2024 2023 Flnènclal assets measured ai fair ¥alue through comprehensive incorne 33,176 142,2041 The total Interest incorne and interest expen5eforfinancial a55et5 and linancial liabilitse5 that are not measured Et fèir value through profit or loss was £Nil12023.. £NIll and E197,76312023.. f 131,5911 respecknvelv. Impairment1055e5 recogni5ed or? tangible h-xed assets totalled E426,93912023.- £NIll. 24. SOCIAL HOUSING GRANT The society hÈs receivod Social Htsusin8 8rants, which were used to fund the acquisit5on and development of hou&n8 properhes and their components The society had a fuiure obligation lo recycle such grants once the propertyes are disposed of. At 31 Mèrch 2024. the value of grantg received in respect of these propernes that had not been d15posed of wa5 £830,608 12023.. £858,1421. The afflount of retytled capital grant at 31 March 2024 is £Nil12023.- £36.6731. The society changed the purpose of one of their housing propertres from sUPPOrted housing to dementia care This resulted in historic grants from Homes England becoming repèyable and the right of the society to recycle the grant funds was withdravm The £830,608 value shown above has been reco8nised within provision5 at Ihe year end a5 there 15 a probable outflow of Economic resources to Homes En￿and but the knming of this outflow is uncertain. 25. ACCOMMODATION IN MANAGEMENT At thè year-end. the society owned two housing units for older people. The number of rooms under management was 6412023.. 641. 26. CONTROL The Society is controlled by the Board. Page 24 continued...

DocLk8lgn En¥lope ID.. E916288E-CA8146C7-A2C8¢473FF442DF3 THE ABBEYFIELD LOUGHBOROUGH socirry UMITED NOTESTO THE FINANCIAL STATEMEpifs- corrtlnued FOR THE YEAR ENDED 31 MARCH 2024 27. RESERVÉ5 Balance at Incorne Expenditure Balan￿ at 31 March 2024 2013 Unre5trlrted funds 11.744,4321 2,927.315 3,930,622 12.747,7391 Oe5iBll•tedfunds Capital expenditure resetve HousSn8 property repO￿r resetve General charitable reserve Property fi.xed a55et reserve 30,000 100,000 74,098 5,062,888 71.747 71.747 30,000 100,000 75,221 5,204,067 7,185 14L179 6,062 3,522.554 3,147,426 4.008.431 2.661,549 galance at l Apiil 2022 Inrome Expenditure B81ènce at 31 March 2023 Unrestricted funds 1259,9041 259,118 1,743.646 11,744,432) Designated lunds Capltal expenditure reserve Housin8 property repalr reserve General charitable reserve Property fixed a55et reserve 30,000 loo,000 68,066 3,996,526 314,831 324,831 30,000 loo,000 74,098 5.062,888 13.601 1,066.362 7.569 3,934,688 1,663.912 2,076,046 3.522,554 Unrestrlcted funds relate to an Income and expenditure reserye, reprt$Ènti￿ cumulatfve svrplus and deficrts net of other édjustmentsfor the below funds. Designated funds are rhose unrestrfcted funds which have been set aside by the trustees for a speclfic purpose. The designatÈd fund5 of the Society are noted below. The capital expenditure reserve was set up to fund future expenditure on fixture5. hthn¥s ènd equipment. The housln8 property repaSr reserye wa5 set up to ensure that funds are avallable for housln8 property repair maintenance, without impathn8 the society's free reserves position. The general £harftable reserve represents accurnulated charitab donatfons receiwed by the society uneKpended at the year-end. The propertyfixed asset reserve was set up to reflertthe net investrnent in properbes. In previous years, the deferred capStal grant was deducted frorn thi5 reseNe. During the year, the capital erant has been transferred to provisions and is m longer dedutted from the property fiyed a55et re$erwe. Page 25