THE RAF BENEVOLENT FUND HOUSING TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS **For the year ended 31 December 2024** Companies House No: 1058896 Charity Commission: 264636 OSCR: SC038218 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Directors and Trustees** Air Vice-Marshal Chris Elliot CB CBE MA BSc DL (Chair) Wing Commander Sarah Davis MBA MSc FCIPD Mrs Victoria Akinboro BSc (Hons) ACMA CGMA Air Commodore Simon Harper OBE MA FCIPD Mr Emrys Rogers Mr Patrick Aylmer FCA Mr Alan Porter (appointed 25 March 2025) ## **Secretary** Mrs Victoria Akinboro BSc (Hons) ACMA CGMA ## **Independent Auditors** Crowe U.K LLP 55 Ludgate Hill London EC4M 7JW ## **Bankers** Barclays Bank Plc, 1 Churchill Place London E14 5HP ## **Solicitors** Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Gillespie MacAndrew 5 Atholl Crescent Edinburgh EH3 8EJ ## **Registered office** 67 Portland Place London W1B 1AR 1 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Annual Report** The Directors, who are also the Trustees of the charitable company, present their report and financial statements for the year ended 31 December 2024. **Governing Document** The objects for which the Company is established are set out in the Memorandum of Association dated 2 June 1972. The Articles of Association of the Company were approved by a written resolution by the Directors on 24 June 2003 **.** ## **Principal activity** The RAF Benevolent Fund Housing Trust Limited is a charitable company limited by guarantee and is a wholly owned subsidiary of The Royal Air Force Benevolent Fund. Its sole activity is to hold and operate properties for beneficiaries of the Royal Air Force Benevolent Fund. The Company is financed and controlled by the Royal Air Force Benevolent Fund and assists in the attainment of the Fund’s objectives by purchasing properties for occupation by its beneficiaries. These properties are let for rentals, and rents charged are based on a recognised benchmark, the Joseph Roundtree Foundation Living Rent and take into account the means of beneficiaries. The Company takes responsibility for insurance, external repairs and redecorations, and the preservation of the main structures and installations. Further details of the activities and policies of the Royal Air Force Benevolent Fund and its subsidiaries are included in its Annual Report, a copy of which may be obtained by writing to the registered office at the address shown on page 1 or by accessing it at the Fund’s website www.rafbf.org. ## **Public benefit** As stated in the principal activity section, the Royal Air Force Benevolent Fund Housing Trust Limited’s sole activity is to hold and operate properties for beneficiaries of the Royal Air Force Benevolent Fund. It exists to provide security and support to particularly vulnerable beneficiaries through the provision of bespoke housing solutions. When reviewing the Company’s aims and objectives, and in planning future activities and policies, the Directors have given careful consideration to the Charity Commission’s general and supplementary guidance on public benefit and fee charging. The Company uses the published Joseph Rowntree Foundation’s Minimum Income Standard figures to assist with assessing financial need. This provides a highly respected sector standard that represents the minimum income required to provide a socially inclusive standard of living in the UK. In addition to this, the Company allows additional expenditure for mortgage, rent, council tax, childcare and formal carer costs. Disability benefits are disregarded as income. Where a contribution is invited towards the costs of occupying a residential property, the beneficiary’s means based on the above standard are always considered. No eligible member of the RAF Family is prevented from benefiting from the support of the Royal Air Force Benevolent Fund and this means that the rent charged is considerably below the market rate. 2 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Fundraising Activities** The charitable company had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. ## **2024 Review** During 2024, four properties were purchased, one other adapted and eight sold. The properties purchased enabled the relocation of existing occupants to more suitable accommodation and one supported a serviceman and his family to relocate from Service Families Accommodation as a result of him being medically discharged due to disability resulting from his service. The purchase of a further three properties were awaiting completion at the end of the year following the beneficiaries identifying suitable properties that would meet their needs. 2024 rental income was £1M (2023: £1M), with the considered application of welfare principles such as ability to pay, Joseph Rowntree Foundation Living Rent calculation and Local Housing Allowance rates being taken into account when calculating affordable rent. ## **Future plans of the Company** The Company intends to continue to manage a portfolio of properties in support of the beneficiaries of the RAF Benevolent Fund for the foreseeable future. ## **Organisational structure and governance** Unless otherwise determined, the number of Directors shall not be less than three nor more than twelve. The Directors shall at all times include the Controller of the Fund ex-officio, who shall be the chair of the Board, and shall also include such members of the Grants Committee of the Fund as shall from time to time be nominated by the Fund. The Directors may also appoint any member of the company as a Director, either to fill a casual vacancy or by way of addition to the number of Directors, provided the maximum is not exceeded. At every AGM, one-third of the Directors (except the Controller of the Fund), shall retire from office and shall be eligible for re-election. The business of the Company is managed by the Directors but may be delegated to any Director and/or employee of the Fund. The Company has no employees but pays a charge for the use of Fund staff to carry out operational activity. ## **Major risks and uncertainties** Trustees of the Royal Air Force Benevolent Fund have overall responsibility for managing risks faced by the Charity and its subsidiary entities. Therefore, the identification of major risks associated with the Housing Trust operation is carried out as part of the risk management process of the Royal Air Force Benevolent Fund. The major risks, have been reviewed and appropriate mitigation measures put in place to manage downside risks and take advantage of opportunities presented. The major risks identified as having the potential to affect the reputation and subsequent successful performance of the Royal Air Force Benevolent Fund and hence the Royal Air Force Benevolent Fund Housing Trust Ltd along with mitigating actions are: 3 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** - **Income and Financial Sustainability:** This can be caused by the inability to generate sufficient income to cover the expenditure required to meet beneficiary needs on a consistent basis. Underlying risk pertaining directly to the Housing Trust are the conditions of the property market leading to properties being vacant for extended periods of time and economic climate leading to rent not being paid by a good number of beneficiaries. These risks are being managed by considering market assessments provided by external RICS registered surveyors and taking proactive steps to sell properties when they become vacant and active oversight and monitoring by an Operations Board. Rental income risk is managed by active regular monitoring, annual rent reviews to identify changes in beneficiary circumstances and enable assistance as required, such as support from the Royal Air Force Benevolent Fund Benefits Advisors to maximise beneficiary income potential - The Royal Air Force Benevolent Fund continues to provide institutional support to the Housing Trust. - **Meeting the needs of the RAF Family:** This can be caused by the failure of third parties to deliver timely and quality services on behalf of the Housing Trust or the Royal Air Force Benevolent Fund, who are then not able to carry out this work to an acceptable standard; and not being innovative and responsive to the changing needs of the RAF Family. The main underlying risk of direct relevance to the Housing Trust is Property Management consultants (surveyors) not providing accurate information on property maintenance requirements. This risk is mitigated through the monitoring done by an Operations Board, regular reviews of surveyor performance and engaging with partner organisations to foster wider sector insight. - **Safeguarding and the duty of care:** This can be caused by an activity that gives rise to a safeguarding incident in which a beneficiary or member of staff is adversely affected by the actions of the Company or the parent Charity. - This risk is being mitigated by ensuring that we have robust safeguarding policies, procedures, and training plans. There is a Safeguarding Committee that maintains oversight and a designated Safeguarding lead Trustee on the Board of the Royal Air Force Benevolent Fund and assurance from independent audits. Policies are renewed annually with the Royal Air Force Benevolent Fund Safeguarding Lead Trustee - **Governance and compliance with regulatory requirements:** This can be caused by stricter regulation on housing providers and /or insufficient awareness of regulation changes across all nations. This is mitigated by using the services of duly qualified surveyors and maintaining membership of the Cobseo Housing Cluster and Scottish Landlord Associations. Continuous monitoring of legislation around climate change measures and including energy efficiency in routine maintenance programme. ## **Reserves policy** As a wholly owned subsidiary of the Royal Air Force Benevolent Fund the reserves of the Company are considered alongside the Reserves policy of the parent charity. Free reserves are the resources the Company has available to spend on revenue expenditure in line with its purposes once it has met its commitments and covered its other planned expenditure. The Royal Air Force Benevolent Fund Housing Trust Ltd has free reserves of £0.4M as at 31 December 2024 (2023: 4 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** £0.8M). This amount is represented by net current assets excluding the amount owed to the parent charity disclosed in note 9. On the basis of the continued support from the parent charity, the Directors have decided that the minimum level of reserves held should be sufficient to cover about six months operating costs to fund the on-going programme of maintaining the Company’s property portfolio. The minimum requirement on 31 December 2024 was £0.5M (2023: £0.5M). The Directors have no concern regarding the free reserves held as at 31 December 2024 as the cashflows for financial year 2025 forecast that the value owing from Housing Trust to Main funds will reduce significantly. The Reserves policy is reviewed each year by the parent charity as part of the annual planning process. Performance against the reserves policy is monitored during the year as part of regular financial management and is reflected as a key performance indicator at Board level. Full details of the parent charity financial position can be obtained from the Annual Report and Accounts which are available on request from 67 Portland Place, London, W1B 1AR or from www.rafbf.org. ## **Going concern** The Directors have given consideration to the Company reporting a net current liability position as a result of the large balance owed to the parent undertaking. However, the Company is assured that the Royal Air Force Benevolent Fund has no intention of calling upon this debt and has received written confirmation to this effect. The Directors have also given consideration to the external economic environment, the financial strength of the parent undertaking and income and expenditure forecasts, and concluded that the Company will be able to continue to operate for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements. The net assets of the Company as at 31 December 2024 were £15M (2023: £14.7M). £9.9M (2023: £10.9M) was owed to The Royal Air Force Benevolent Fund, the parent undertaking. Given that the Company manages properties solely in order to support the beneficiaries of the Royal Air Force Benevolent Fund, the Trustees of the parent undertaking are committed to providing continued institutional support to the Company in the form of an interest free facility for the foreseeable future. This means that whilst the debt is a short-term liability, the Royal Air Force Benevolent Fund will not be requesting repayment within the next twelve months. On this basis the Directors have reviewed the Royal Air Force Benevolent Fund Housing Trust Ltd and consider that adequate resources continue to be available to fund the activities for the foreseeable future. The Directors are of the view that the Company is a going concern. ## **Financial review** The Statement of Financial Activities (SOFA) for the year is set out on page 12 of the financial statements and shows a surplus of £287K (2023: £62K). ## **Income** There was a £256K/ 13% increase in income from £1.9M in 2023 to £2.2M in 2024, due mainly to the £231K /31% year on year increase in the profit on disposal of properties. Eight properties were sold in 2024 compared to five in 2023. The £2.2M total income is made up of rentals received (2024: £1.1M, 2023: £1.1M), the profit on the disposal of properties (2024: £980K, 2023: £749K), bank interest (2024: £48K, 2023: £50K) and some legacy income (2024: £2K, 2023: £35K). 5 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Expenditure** Expenditure also increased by 1% from £1.849M in 2023 to £1.879M in 2024. This was primarily due to an increase in expenditure on repairs and maintenance which rose to £866K in 2024 from £692K in 2023, a 25% year on year increase. This was offset with depreciation decreasing from £667k in 2023 to £448k in 2024 following an adjustment to depreciate properties only inline with the depreciation policy. ## **Tangible fixed assets** As at 31 December 2024, the Trust owned 194 properties (2023: 198). During the year, 4 properties were purchased (2023: 10) and 8 were sold (2023: 5), resulting in a net decrease of 4 properties. Total cost of new properties was £1.34M (2023: £3.38M) and this includes £183K spent on adaptations on properties purchased. £0.1M (2023: £0.1M) on adaptations. Proceeds from the sale of properties amounted to £2.26M (2023: £1.3M) and profits on these sales were £1M (2023: £0.8M). The net book value of properties held was £24.5M at 31 December 2024, (2023: £24.7M). Reported values are based on historical cost, but the Directors recognise that the total market value will in all probability be materially higher. ## **Directors** The Directors during the year, and up to the date of approval of the financial statements, are as shown on page 1. ## **Statement of Directors’ responsibilities** The Directors (who are also Trustees of the Royal Air Force Benevolent Fund Housing Trust Ltd for the purposes of charity law) are responsible for preparing the Directors’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires directors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the outgoing resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP (FRS102); - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures which are disclosed and explained in the financial statements; and - prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) 6 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** Act 2005 and the Charities Accounts (Scotland) Regulations 2006, Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Directors are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. By order of the board on 27 May 2025 ## **Victoria Akinboro** Secretary Date: 27 May 2025 7 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Independent Auditor’s Report to the Directors of The RAF Benevolent Fund Housing Trust Limited** ## **Opinion** We have audited the financial statements of The RAF Benevolent Fund Housing Trust Limited for the year ended 31[st] December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including 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). In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. ## **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 charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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. 8 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Other information** The directors are responsible for the other information contained within the annual report. 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. 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 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. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion based on the work undertaken in the course of our audit - the information given in the annual report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the annual report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion: - adequate accounting records have not been kept or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit [or - if the small companies regime has been used the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the annual report. 9 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Responsibilities of directors** As explained more fully in the directors’ responsibilities statement set out on page 6 the directors (who are also the trustees of the charitable company for the purposes of charity law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary 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 trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under the Companies Act 2006, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 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. ## **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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified and assessed the risks of material misstatement of the Financial Statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the Financial Statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s 10 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were; General Data Protection Regulation (GDPR), Health and safety legislation and Taxation legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the Financial Statements from irregularities, including fraud, to be the override of controls by management which includes estimates and judgement. Our audit procedures to respond to these risks included enquiries of management, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with Companies House, Charity Commission, OSCR and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the Financial Statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the Financial Statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Vincent Marke** Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor **London 18 September 2025** 11 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **for the year ended 31 December 2024** ## **(incorporating income and expenditure account)** |unrestricted.
**Income from:**
Note
Legacies
Charitable activities
Other activities
**Total income**
2
Expenditure on charitable activity
3
**Net income**
**Net movement in funds**
Total funds brought forward
**Total funds carried forward**|**2024**
**£**
2,164
1,136,669
1,027,578
2,166,411
(1,878,907)
287,504
287,504
14,724,216
**15,011,720**|All
funds
are
**2023**
**£**
34,868
1,076,657
799,262
1,910,787
(1,849,138)
61,649
61,649
14,662,567
**14,724,216**| |---|---|---| There are no recognised gains or losses in either period other than as disclosed above. All incoming and outgoing resources arise from continuing activities. 12 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **BALANCE SHEET** ## **as at 31 December 2024** |Note
**Fixed assets**
Tangible assets
6
**Current assets**
Debtors
7
Cash at bank and in hand
Creditors: amounts falling due within one year
8
**Net current liabilities**
**Net assets**
**Unrestricted general funds**|**2024**
**£**
24,482,040
65,651
722,377
788,028
(10,258,348)
(9,470,320)
**15,011,720**
**15,011,720**|**2023**
**£**
24,742,138| |---|---|---| |||123,980
917,365| |||1,041,345| |||(11,059,267)| |||(10,017,922)| |||**14,724,216**| |||**14,724,216**| The notes on pages 15 to 19 form part of these financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. Approved and authorised for issue by the Board on 27 May 2025 and signed on its behalf by **Victoria Akinboro** Date: 27 May 2025 Director Company registration number: 01058896 13 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **STATEMENT OF CASH FLOWS** ## **For the year ended 31 December 2024** |**Cash flows from operating activities**
Net cash inflow/(outflow) from operating activities
**Cash flows from investing activities**
Proceeds from sale of tangible fixed assets
Payments to acquire tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Reconciliation of net income to net cash flow from**
**operating activities**
Net income for the year ended 31 December
Adjustments for
Depreciation charges
Profit on disposal of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Analysis of cash and cash equivalents**
Current account
**Analysis of changes in net debt**
Current account:
As at 1 January
Movement in year
As at 31 December|**2024**
**£**
(987,345)
2,614,805
(1,312,826)
1,301,979
(194,988)
917,365
**722,377**
287,504
447,659
(979,918)
58,329

(800,919)
(987,345)
**722,377**
917,365
(194,988)
**722,377**|**2023**
**£**
1,178,306
1.299,732
(3,517,822)| |---|---|---| |||(2,218,090)| |||(1039,783)
1,957,148| |||**917,365**| |||61,649
667,336
(749,272)
(34,495)
1,233,088| |||1,178,306| |||| |||**917,365**| |||1,957,148
(1.039.783)| |||**917,365**| 14 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Notes to the Financial Statements** ## **For the year ended 31 December 2024** ## **1. Accounting Policies** ## **Accounting convention** These financial statements are prepared on a going concern basis, under the historical cost convention. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006, the Charities Act 2011 and Charities Accounts (Scotland) Regulations 2006 as amended by The Charities Accounts (Scotland) Amendment (No. 2) Regulations 2014. The principal accounting policies adopted in the preparation of the financial statements are set out below. ## **Going concern** The Directors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including the impact of the economic volatility and high interest rates that might cast significant doubt on the ability of the Company to continue as a going concern. The Directors have made this assessment for a period of at least one year from the date of approval of the financial statements. The most significant assets included on the Company’s balance sheet are fixed assets, the purchase of which is facilitated by a loan from the parent charity, Royal Air Force Benevolent Fund . Amounts due to the Royal Air Force Benevolent Fund are unsecured, interest free, have no fixed date of repayment and are repayable on demand. The Directors have given consideration to the Company having reported a net current liability position as at 31 December 2024 as a result of the large balance owed to Royal Air Force Benevolent Fund. However, the Trustees of the Royal Air Force Benevolent Fund are committed to providing continued institutional support to the Company for the foreseeable future and have provided written confirmation to the Directors of the Company to this effect. The group is in a healthy position at 31 December 2024 with net current assets of £21.6M including cash balances of £15.7M. The Directors therefore have a reasonable expectation that the Company has access to adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis in preparing financial statements. ## **Rental income** Rental income is accounted for on the basis of amounts received in the accounting period. In the opinion of the Directors, this policy is appropriate in view of the uncertainty over whether the rental income, which is not a contractual commitment, can be collected. 15 ## **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Other income** Other income consists of the net realised gain on the sale of four properties (five sold in 2023). ## **Fixed assets and depreciation** Fixed assets that cost more than £5,000 are capitalised and included at cost, including any incidental expense at acquisition. Depreciation is provided on freehold (excluding land) and long leasehold properties at rates calculated to write off the cost less estimated residual value, based on prices prevailing at the date of acquisition, of each asset evenly over its expected useful life as follows: Freehold buildings - over 50 years Leasehold buildings - over the periods of the leases or 50 years, if shorter A full year of depreciation is charged in the year of acquisition and none in the year of disposal. The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. ## **Expenditure** All resources expended relate to the one charitable activity undertaken by the Company. Property repair and renewal expenses are written off to the Statement of Financial Activities as they are incurred. The Company has no employees but pays a charge for the use of Royal Air Force Benevolent Fund staff to carry out the operational activity. ## **Recognition of liabilities** Expenditure approved for payment but not paid is recorded as a liability in the balance sheet. Current liabilities consist of amounts expected to be settled within 12 months from the balance sheet date. Current liabilities include payments due to the parent undertaking which is technically payable on demand although the Trustees of the Royal Air Force Benevolent Fund have offered assurances of their continued support to the Company in the form of interest free finance for the foreseeable future. ## **Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less. ## **Taxation** All the Company’s income is applied for charitable purposes and therefore the Company is exempt from Corporation Tax. ## **Financial instruments** Basic financial instruments are measured at amortised cost. 16 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **Critical accounting estimates and areas of judgement** In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Directors in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements except depreciation, nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. ## **2. Income** |Legacies
Rental income
Bank interest
Profit from the disposal of properties|**2024**
£
2,164
1,136,669
47,660
979,918
**2,166,411**|**2023**
£
34,868
1,076,657
49.990
749,272| |---|---|---| |||**1,910,787**| ## **3. Resources expended on charitable activities** |General rates
Insurance
Repairs and maintenance
Occupational therapist fees
Legal fees
Property management fees
Lease amortisation
Property depreciation
Audit fees
Staff costs
Others
Staff costs include:
Wages and salaries
Pension costs
Social security|**2024**
£
13,471
38,772
866,412
12,157
29,304
263,318
9,427
438,232
8,380
197,329
2,105
**1,878,907**
**2024**
£
151,598
29.314
16,417
**197,329**|**2023**
£
9,038
46.180
692,022
7,579
8,242
232,101
12,619
654,717
9,240
172,580
4,820| |---|---|---| |||**1,849,138**| |||**2023**
£
134,863
23,231
14,486| |||**172,580**| 17 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** Staff costs relate to five people employed by the Royal Air Force Benevolent Fund and represents amounts recharged based on their time spent on the Company’s operational activity. ## **4. Directors’ remuneration** None of the Directors has received any remuneration or reimbursement of expenses from the Company. The Directors are deemed key management personnel. ## **5. Related party transactions** The Company maintains an inter-company balance with the RAF Benevolent Fund, its parent undertaking and the balance owed to the RAF Benevolent Fund as at 31 December 2024 was £9.9M (2023: £10.9M). The movement during the year consisted of payments by the RAF Benevolent Fund for various property maintenance costs and staff costs recharged. Three of the directors are members of the Executive Leadership Team of the Royal Air Force Benevolent Fund. There are no other related party transactions that require disclosure. ## **6. Tangible fixed assets** |Cost at 1 January 2024
Additions during the year
Disposals during the year
Cost at 31 December 2024
Depreciation at 1 January 2024
Depreciation for the year
Depreciation on disposals during the year
Accumulated depreciation at 31 December 2024
Net book value:
At 31 December 2024
At 31 December 2023|**Freehold**
**properties**
£
32,735,824
1,342,369
(1,441,552)
32,636,641
8,374,121
438,232
(385,704)
8,426,649
24,209,992
24,361,702|**Long**
**leasehold**
**properties**
£
630,938
-
(159,615)
471,323
250,502
9,427
(60,654)
199,275
272,048
380,436|**Total**
£
33,366,762
1,342,369
(1,601,167)| |---|---|---|---| ||||33,107,964| ||||8,624,623
447,659
(446,358)| ||||8,625,924| ||||24,482,040| ||||24,742,138| The Directors recognise that because properties are recorded on an historical cost basis, the market value is likely to be materially different. 18 **The RAF Benevolent Fund Housing Trust Limited Report and Financial Statements 31 December 2024** ## **7. Debtors** |Accrued income - legacy
Prepayment
HMRC
Other|**2024**
£
-
20,126
41,247
4,278
**65,651**|**2023**
£
36,816
35,740
34,516
3,348| |---|---|---| |||**123,980**| **8. Creditors:** amounts falling due within one year |Trade creditors
The Royal Air Force Benevolent Fund – Gulf Trust
Interest free finance provided by the RAF Benevolent Fund|**2024**
£
280,978
107,120
9,870,250
**10,258,348**|**2023**
£
105,204
93,124
10,860,939| |---|---|---| |||**11,059,267**| Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. However, the Trustees of the Royal Air Force Benevolent Fund are committed to providing continued institutional support to the Company for the foreseeable future. ## **9. Parent undertaking** In the Directors’ opinion, the ultimate parent undertaking is The Royal Air Force Benevolent Fund, incorporated by Royal Charter, and registered in England and Wales (charity number 1081009) and Scotland (charity number:SC038109). Copies of its group financial statements, which include the results of the Company, are available from 67 Portland Place, London, W1B 1AR. ## **10. Guarantee** In the event of the Company being wound up, each director is liable to pay £1. 19