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← Hoylake Cottage

2025-03-31-accounts

Charity registration number 515591 (England and Wales) Company registration number 01844549

HOYLAKE COTTAGE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

‘&) xeinadin

HOYLAKE COTTAGE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees MrG Cooper
MrS Heywood
MrA Mitchell
MrJ Southworth
Mr R Oakden
Mr R Holmes
Mr M Sutton
MrsA Heseltine
DrP Humphrey (Appointed 29 October 2024)
Miss H Peel (Appointed 29 October 2024)
Secretary MrS Heywood
Charity number (England and Wales) §15591
Company number 01844549
Registered office Southworth House
35 Birkenhead Road
Hoylake
Wirral
Merseyside
CH47 5AQ
Auditor XeinadinAudit Limited
46 Hamilton Square
Birkenhead
Wirral
Merseyside
CH41 5AR
Bankers National Westminster
Solicitors Brabners LLP
Horton House
Exchange Flags
Liverpool
Merseyside
L2 3YL
Hill Dickinson
1 St Paul's Square
Liverpool
Merseyside
L39SJ

HOYLAKE COTTAGE

CONTENTS

Page
Trustees' report 1-5
Statement oftrustees’ responsibilities 6
Independent auditor's report 7-10
Consolidated statement of financial activities 11
Consolidated balance sheet 12
Charity balance sheet 13
Consolidated statement ofcash flows 14
Notestothefinancialstatements 15-31

HOYLAKE COTTAGE

TRUSTEES’ REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees present their annual report and financial statements for the year ended 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Charities SORP "Accounting and Reporting by Charities: 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 (FRS 102)".

Objectives and activities

Purpose and aims

The Trust's objects as stated in the Memorandum of Association are:

“The relief, care and assistance of older persons and provision of facilities in the interests of social welfare for recreation and leisure time occupation for the benefit of older members of the community and in particular but without prejudice to the generality of the foregoing, with the object of improving the condition of life of the older inhabitants of the community.”

Charitable activities that contribute to achievement of the Trust’s objects

The Trust's principal activities are provision of 24 hour nursing, dementia and respite care for older people who are unable to support themselves at home or in other care services. These services comprise almost 85% of the Trust's activity.

The Nursing Home, which is registered with the Care Quality Commission, comprises 62 rooms, of which currently 22 are for residents who suffer from dementia and 40 are for generat nursing and respite care.

The Day Centre offers 25 places a day for older people and those with dementia or mental health problems.

Brookfield Homecare Limited offers domiciliary care services to approximately 80 local residents, providing some 500 hours of care each week, but with the opportunity to substantially increase care hours delivered as local demand exceeds the available supply.

How our activities deliver public benefit

Our purpose is to offer services to the local community that are affordable and relevant to their needs. We do this by managing efficiently our expenses on day-to-day operations but in a manner which is consistent with our objective of providing the high quality care for which the Trust is recognised. Fee increases, whilst unwelcome, are necessary to meet rising costs due to regulatory compliance, inflation and to maintain competitive salary levels for our staff.

Fundraising activities are used mainly to fund capital expenditure which means that fees for services can be set at a lower level than would otherwise be the case. Services such as nursing respite care can be made available regardless of the beneficiary's financial means.

Decisions that would be judged uncommercial are also possible with support from fundraising activities and generous donations from supporters and the local community:

. for some time the Trust has provided day care services for those suffering from dementia at fees that do not cover the cost of their provision

. the premises used for the day centre have been extensively refurbished ° in the recent past a sensory garden was created for residents of the nursing home to enjoy.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

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HOYLAKE COTTAGE TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Achievements and performance

Significant activities and achievements against objectives

High occupancy at the nursing home continued throughout the year but with a reduction in NHS funded residents and an increase in residents funding themselves which delivered an 8% increase in total fees over the previous year. Staff recruitment continued to be difficult leading to substantial reliance on agency staff at much increased cost. Salary expenses increased by some 9% as a result of that and providing a comparable pay increase to the Nationa! Living Wage increase for the year.

Controllable overheads were managed well during the year, but loan interest increased substantially following the re-arrangement of the loans at the end of the previous financial year at a higher margin over bank base rate.

We were very fortunate in benefiting from 3 legacies during the year amounting to some £239,000. The funds have been used to replace cash reserves lost during the pandemic and to embark on gradual replacement of windows throughout the building which, after 18 years, were worn out and to replace a section of roof that had been leaking periodically.

The Sandhills Day Centre struggled to increase occupancy which remained fairly low and therefore it had a small negative contribution to the overall business.

The year end surplus after depreciating the properties was £449,000, the best result for many years and very weicome after the substantial deficits incurred during the pandemic, which had led to a large increase in the Trust's bank loan facility and much higher interest charges. Brookfield Homecare hada deficit of £1,628 in the year.

FINANCIAL REVIEW

Hoylake Cottage

The results for the year and the Trust's financial position at the end of the year are shown on the attached financial statements. The Trust's strategic aim is to recover the full cost of services from operating income. It is accepted that this may not always occur within a single financial year. Fundraising is used generally to fund non-operational activities.

Brookfield Homecare Limited

Brookfield Homecare had a more difficult year, being constrained by staff recruitment problems which limited care services we could provide despite office staff support. There was a small deficit at the year end but accumulated reserves were more than sufficient to absorb that.

Fundraising and other non-charitable activity income

Donations were lower than the previous year but legacies of £239,000 more than compensated for that.

Reserves policy

The Consolidated Balance Sheet of the Trust shows Unrestricted Funds of £4,572,853 an increase of £461,804 which included the surplus on activities as well as Unrestricted Funds at Brookfield Homecare of £86,624.

The Trustees regularly review the Trust's needs for Reserves in line with guidance issued by the Charity Commission. The Trustees’ policy in respect of Reserves is that minimum Reserves of £250,000 are required to fund working capital requirements.

Restricted funds shown in the Balance Sheet were £20,251 and represented donations for specific purposes which were unspent at the year end. These funds will be used for their intended purpose as soon as it is appropriate to do SO.

At the balance sheet date, free reserves were £672,635 and free cash reserves were £572,196 which the Trustees consider acceptable.

Funding sources

The strong cash generation from the nursing home and the legacies and donations adequately funded the business activities and funded improvements to the nursing home building as well as restoring cash reserves which had been depleted over the last 5 years.

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HOYLAKE COTTAGE

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Investment Policy

Under the Articles of Association the Trust has the power to make any investment the directors see fit. The investment portfolio was realised to fund the business during the pandemic. Cash generated from normal charitable activities and donations is needed to fund ongoing working capital requirements so further longer term investment is unlikely at present.

Principal risks and uncertainties

The main operational risks for the Trust which have influenced decisions in the current and previous years are:

Managing these risks is challenging for a relatively small charity. In recent years the Trustees’ main concern has been to ensure financial solvency making cash generation and cash flow management an integral part of financial control. The acquisition of the Brookfield Homecare business has provided an opportunity to offset periods of lower occupancy in the nursing home with growth in income from domiciliary care which is, currently, where investment in the care sector is being encouraged,although funding of these services is clearly under pressure locally and fee increases are barely sufficient to cover the increases imposed on businesses from National Living Wage and more recently, National Insurance.

Plans for future periods

Post balance sheet events & plans for future periods

Occupancy at the nursing home has been significantly higher up to the half year stage, again driven by increased demand from seif-funded residents which has been beneficial for fee income. However, staff expenses also rose by some 7.5% following the substantial increases in National Living Wage (to which most of staff salaries are linked) and National Insurance, imposed by Government. We have also incurred higher agency staff expenses as recruitment fell short of needs. Nevertheless, the surplus was higher than the equivalent period in the previous year and we have expectation that there will be a surplus at the 2026 year end.

Very sadly, Liz Burrell, finance manager and a member of the management team, died earlier in the year after a long iliness. Throughout that, she continued to work and support her colleagues and our residents as she always had during 17 years at Hoylake Cottage. She will be greatly missed by everyone.

Hoylake Cottage held their 40th Anniversary on 31st August 2024 to celebrate 40 years since "Hoylake Cottage” became independent from the NHS. It was a beautiful sunny day and all staff both current and retired were invited to celebrate the achievements of the past 40 years with residents and their families. Long service awards were presented to staff, some of whom have worked for Hoylake Cottage for over 20 years and recognition given to one of our long-standing friends and patron, who has consistently supported Hoylake Cottage financially over the years. Entertainment, music, food and drinks, awards and presentations on one of the warmest days of the year ensured a very enjoyable day was had by all who attended.

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HOYLAKE COTTAGE

TRUSTEES’ REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management

Legal Structure Hoylake Cottage (‘the Trust") is a charitable company limited by guarantee incorporated in England on 30th August 1984 and is established under Articles of Association which set out its objectives and powers and how it is governed. There are no activities outside England. It is managed by a Board of Directors ("the Board") whose members are the directors for the purposes of Company Law and charity trustees for the purposes of Charity Law.

On1tth March 2019 Hoylake Cottage acquired the entire issued share capital of Brookfield Homecare Limited. The subsidiary was registered as a charity on 1st November 2019.

The Trust Board of Directors

The Board currently comprises10 Trustees and normally meets in alternate months. The Articles of Association specify that the Board should comprise a minimum of 5 and a maximum of 20, the ideal number is considered to be 8-12.

The Articles of Association permit “virtual” Board meetings, which facility has been used effectively when necessary.

Trustees are carefully selected to ensure that they have the necessary skills and experience and are willing to attend regular Board and other meetings. New Trustees are briefed on their legal obligations, the committees and decision-making process and the business plan and financial performance of the Trust.

Trustees are elected (or re-elected) in accordance with the Trust's Articles of Association at its AGM.

Management

Day-to-day operational management is under the control of the management team comprising the Finance Manager, the Business Manager and the Care Manager who are responsible to the Board. They attend meetings of the Board to ensure that the Trust's objectives continue to be met. Operational decision-making is delegated by Trustees to the management team, including financial transactions that are within the annual budgets agreed by the Board and monitored in both formal and informal meetings by members of the Board. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr G Cooper

Dr R Stokeil (Resigned 15 September 2024)

Mr S Heywood Mr A Mitchell

Mr J Southworth

Mr R Oakden

Mr R Holmes

Mr M Sutton

Mrs A Heseltine Dr P Humphrey (Appointed 29 October 2024) Miss H Peel (Appointed 29 October 2024)

Remuneration policy

Pay policy for key management personnel

The directors consider the senior management team comprise the key management personnel of the charity in charge of controlling, running and operating the Trust on a day to day basis.

The pay of the senior staff is reviewed annually and normally increased to the same extent as the rest of the staff. All the directors give of their time freely and no director received remuneration in their capacity as a director in the year.

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HOYLAKE COTTAGE

TRUSTEES' REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees’ report was approved by the Board of Trustees.

Mr S Heywood Trustee Date: Dede: OES.

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HOYLAKE COTTAGE

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also the directors of Hoylake Cottage for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable flaw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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HOYLAKE COTTAGE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOYLAKE COTTAGE

Opinion

We have audited the financial statements of Hoylake Cottage (the ‘charity’) and it's subsidiary for the year ended 31 March 2025 which comprise, the consolidated statement of financial activities, the consolidated and charity balance sheet, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs ({UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on ihe 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:

HOYLAKE COTTAGE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HOYLAKE COTTAGE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary 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 group and charity'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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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HOYLAKE COTTAGE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HOYLAKE COTTAGE

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

° agreeing financial statement disclosures to underlying supporting documentation; . enquiring of management as to actual and potential litigation and claims; and . reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// 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. 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.

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HOYLAKE COTTAGE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HOYLAKE COTTAGE

Helen Furlong FCCA (Senior Statutory Auditor)

For and on behalf of Xeinadin Audit Limited, Statutory Auditor Accountants

46 Hamilton Square Birkenhead Wirral Merseyside CH41 5AR Date: ATR A2S

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HOYLAKE COTTAGE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
Notes £ £ £ £ £ £
Income and endowments from:
Donations and legacies 3 270,400 2,317 272,717 34,178 2,468 36,646
Charitable activities 4 4,909,069 - 4,909,069 4,633,148 - 4,633,148
Other trading activities 491 - 491 - - -
Investments 5 51,231 - 51,231 45,632 - 45,632
Other income 11,308 - 11,308 3,149 - 3,149
Total income 5,242,499 2,317 5,244,816 4,716,107 2,468 4,718,575
Expenditure on:
Raising funds 6 15,002 - 15,002 10,126 - 10,126
Charitable activities 7 4,778,162 2,317 4,780,479 4,533,217 1,858 4,535,075
Otherexpenditure - - - 2,072 - 2,072
Total expenditure 4,793,164 2,317 4,795,481 4,545,415 1,858 4,547,273
Net income 449,335 - 449,335 170,692 610 171,302
Transfers between
funds 12,469 (12,469) - - - -
Net movement in
funds 461,804 (12,469) 449,335 170,692 610 171,302
Reconciliation of funds:
Fund balances at 1 April 2024 4,111,049 32,720 4,143,769 3,940,357 32,110 3,972,467
Fund balances at 31 March
2025 4,572,853 20,251 4,593,104 4,111,049 32,720 4,143,769

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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HOYLAKE COTTAGE

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2025

;

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 13 5,099,674 5,021,162
Current assets
Debtors 16 364,603 299,597
Cash at bank and in hand 592 447 315,864
957,050 615,461
Creditors: amounts falling due within 19
oneyear (290,277) (291,964)
Net currentassets 666,773 323,497
Total assets less current liabilities 5,766,447 5,344,659
Creditors: amounts falling due after
more than one year 21 (1,173,343) (1,200,890)
Net assets 4,593,104 4,143,769
Thefunds ofthe charity
Restricted income funds 22 20,251 32,720
Unrestricted funds 23 4,572,853 4,111,049
4,593,104 4,143,769

The financial statements were approved by the trustees on wie Low ©

Mr G Cooper Mr S Heywood Trustee Trustee

Company registration number 01844549 (England and Wales)

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HOYLAKE COTTAGE

CHARITY BALANCE SHEET AS AT 31 MARCH 2025

2025 2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 14 5,099,674 5,020,848
Investments 15 2 2
5,099,676 5,020,850
Current assets
Debtors 17 330,855 242,856
Cash at bank and in hand 487,217 237,391
818,072 480,247
Creditors: amounts falling duewithin 20
one year (237,925) (244,240)
Net current assets 580,147 236,007
Total assets less current liabilities 5,679,823 5,256,857
Creditors: amounts falling due after
morethan one year 21 (1,173,343) (1,200,890)
Net assets 4,506,480 4,055,967
Thefunds ofthe charity
Restricted income funds 22 20,251 32,720
Unrestricted funds 24 4,486,229 4,023,247
4,506,480 4,055,967
Thefinancial statementswereapproved bythe trusteeson(2:12 2OUS
MrGCooper MrS Heyfood
Trustee Trustee

The financial statements were approved by the trustees on (2:12 2OUS

Company registration number 01844549 (England and Wales}

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HOYLAKE COTTAGE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

==> picture [469 x 287] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |Notes|£|£|£|£| |Cash|flows|from|operating|activities| |Cash|generated|from|operations|29|458|233|199,544| |Investing|activities| |Purchase|of tangible|fixed|assets|(207,488)|(51,594)| |Proceeds|from|disposal|of tangible|fixed| |assets|-|1,000| |Investment|income|received|§1,231|45,632| |Net cash|used|in|investing|activities|(156,257)|(4,962)| |Financing|activities| |Repayment|of bank|loans|(25,393)|(99,431)| |Net|cash|used|in|financing|activities|(25,393)|(99,431)| |Net|increase|in|cash|and|cash|equivalents|276,583|95,151| |Cash|and|cash|equivalents|at|beginning|of year|315,864|220,713| |Cash|and|cash|equivalents|at|end|of year|592,447|315,864|

----- End of picture text -----

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HOYLAKE COTTAGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Charity information

Hoylake Cottage is a private company limited by guarantee incorporated in England and Wales. The registered office is Southworth House, 35 Birkenhead Road, Hoylake, Wirral, Merseyside, CH47 5AQ. In the event of a winding up, the liability in respect of the guarantee is limited to £5 per member.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP “Accounting and Reporting by Charities: 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 (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from charitable activities includes income received under contract or where entitlement to the grant funding is subject to performance conditions. Income is recognised in the Statement of Financial Activities when the related services have been provided, income in advance of those services being provided is deferred.

Income from trading activities, includes income from fundraising events and trading activities to raise funds for the charity. Income is recognised when earned and the charity is entitled to the receipt.

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HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

(Continued)

Donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in expenditure.

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable activities.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Support costs are those that that assist the work of the charity but are not directly attributable to the charitable activities. Support costs include office costs, administrative payroll costs and governance costs which support the charity's activities. Where the support costs cannot be attributable to a direct activity they have been allocated to the costs of raising funds and charitable activities on a pro-rata basis.

Governance costs represent costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 1% on cost Fixtures and fittings 10%/20%/25%/33.33% on cost Computers 33.33%/20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Tangible fixed assets costing more than £500 are capitalised and included at cost including any incidental expenses of acquisition.

1.7 Impairment of fixed assets

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HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.9 Financial instruments

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank ioans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.

The charity is exempt from corporation tax on its activities.

1.11 Employee benefits

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

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

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

-17-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.13 Basis of consolidation

The group financial statements consolidate the financial statements of Hoylake Cottage and its subsidiary, Brookfield Homecare Limited, drawn up to 31 March 2025. The results of the subsidiary are consolidated for the period from the date on which control passed.

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made io the financial statements of the subsidiary to bring the accounting policies used into line with those used by the parent charitable company. Alt intra-group transactions, balances, income and expenses are eliminated on consolidation.

Advantage is being taken of Section 408 of the Companies Act 2006 not to present the Parent Company's Statement of Financial Activities including Income and Expenditure Account.

2 Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting . estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Donations and gifts 31,434 2,317 33,751 34,178 2,468 36,646
Legacies 238,966 - 238,966 - - -
270,400 2,317 272,717 34,178 2,468 36,646

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Income from charitable activities

;

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Nursing Unit
Services within charitable activities 4,201,541 3,898,593
Day dementia care
Services within charitable activities 158,274 161,793
Domiciliary care
Services within charitable activities 549,254 572,762
4,909,069 4,633,148
5 Income from investments
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Rental income 47,490 44,175
Interest receivable 3,741 1,457
51,231 45,632
6 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Fundraising and publicity
Other fundraising costs 237 216
Apartment expenses 14,765 9,910
Totalcosts 15,002 10,126

-19-

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HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

8 Support costs allocated to activities

Nursing unit Total
2025 2024
£ £
Staffcosts 332,882 310,812
Admin expenses 1,467 766
Professional fees 3,100 2,800
Bank charges 7,468 18,217
Bank interest 101,139 85,585
Governance 40,408 52,162
486,464 470,342
2025 2024
Governance costs comprise: £ £
Audit fees 13,500 10,396
Accountancy 5,750 8,900
Legal and professional 8,124 21,567
Trustee indemnity insurance 11,466 11,286
General expenses 1,568 13
40,408 52,162

Governance costs includes amounts payable to the auditors of £ 13,500 (2024 - £10,396) for audit fees.

] Employees

The average monthly number of employees during the year was:

2025 2024
Number Number
Administrative 10 9
Nursing 100 97
Ancillary 27 25
Domicilliary 25 25
Total 162 156

-22-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

9 Employees (Continued)
Employment costs 2025 2024
£ £
Wages and salaries 3,439,666 3,249,758
Social! security costs 267,450 233,487
Other pension costs 57,450 51,341
3,764,566 3,534,586

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separate from those of the group.

The key management personnel of the group comprise the Finance Manager, Office Manager and Care Manager whose employee benefits total £ 197,060 (2024:£222,614).

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11.‘ Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Brookfield Carehome Limited
Asummary of the results of the subsidiary is shown 2025 2024
below:
£ £
Turnover 549,254 574,434
Expenditure (550,882) (557,254)
(1,628) 17,180
Aggregate assets and
liabilities
Fixed assets - 314
Current assets 141,251 136,021
Current liabilities (54,625) (48,081)
86,626 88,254
86,626 88,254

-23-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

13. Tangible fixed assets -Group
Freehold fand Fixtures and Computers Total
and buildings fittings
£ £ £ £
Cost
At 7 April 2024 7,269,665 685,905 5,976 7,961,546
Additions 56,256 151,232 - 207,488
At 31 March 2025 7,325,921 837,137 5,976 8,169,034
Depreciation and impairment
At 1 April 2024 2,380,157 554,565 5,662 2,940,384
Depreciation charged in the year 76,838 51,824 314 128,976
At 31 March 2025 2,456,995 606,389 5,976 3,069,360
Carrying amount
At 31 March 2025 4,868,926 230,748 - 5,099,674
At31March2024 4,889,508 131,340 314 5,021,162

The charity acquired the freehold of the site from Mersey Regional Health Authority in April 1992, but with a covenant limiting its use to Health and Social Care.

14 Tangible fixed assets - Charity

Freehold land ‘Fixtures and Total
and buildings fittings
£ £ £
Cost
At 1 April 2024 7,269,665 674,025 7,943,590
Additions 56,256 151,232 207,488
At 31 March 2025 7,325,921 825,257 8,151,178
Depreciation and impairment
At 7 April 2024 2,380,157 542,685 2,922,842
Depreciation charged in the year 76,838 51,824 128,976
At 31 March 2025 2,456,995 594,509 3,051,504
Carrying amount
At 31 March 2025 4,868,926 230,748 5,099,674
At31March2024 4,889,509 131,339 5,020,848

-24-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

15 Fixed asset investments - Charity investment in subsidiary

The charity holds 2 shares of £1 each in its wholly owned charitable subsidary company Brookfield Homecare Limited which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The company was acquired on 11 March 2019. Activities and results of the company are summarised in note 14.

16 Debtors - Group

.

16 Debtors - Group
2025 2024
Amounts falling due within one year: £ £
Trade debtors 258,550 263,065
Other debtors 800 780
Prepayments and accrued income 105,253 35,752
364,603 299,597
17 Debtors - Charity
2025 2024
Amounts falling due within one year: £ £
Trade debtors 229,374 208,942
Other debtors 500 480
Prepayments and accrued income 100,981 33,434
330,855 242,856
18 Loans and overdrafts -Group & Charity
2025 2024
£ £
Bank loans 1,199,456 1,224,849
Payable within one year 26,113 23,959
Payable after one year 1,173,343 1,200,890
Amounts included above which fall due after five years:
Payablebyinstalments 1,043,195 1,081,481

-25-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

18 Loans and overdrafts - Group & Charity

(Continued)

A lega! mortgage is held by National Westminster Bank on the land and buildings of 35 Birkenhead Road, Hoylake, Wirral CH47 5AQ. There is also a second mortgage which protects the covenant to the Mersey Regional Health Authority and its successors in title.

At the end of the financial year National Westminster Bank agreed to amalgamate the 2 loans repayable over 20 years by monthly instalments including interest accrued at a rate of 3.5% above base rate secured on the Trust's jand and buildings.

19 Creditors: amounts falling due within one year - Group

19 Creditors: amounts falling due within one year - GroupGroup
2025 2024
Notes £ £
Bank loans 18 26,113 23,959
Other taxation and social security 56,312 54,315
Trade creditors 66,008 56,303
Other creditors 62,109 53,291
Accruals and deferred income 79,735 104,096
290,277 291,964
20 Creditors: amounts falling due within one year - Charity
2025 2024
Notes £ £
Bank loans 18 26,113 23,959
Other taxation and social security 49,376 47,201
Trade creditors 65,778 56,303
Amounts owed to fellow group undertakings 2,273 807
Other creditors 24,439 18,174
Accruals and deferred income 69,946 97,796
237,925 244,240
21 + Creditors: amounts falling due aftermore than one year
Group & Charity 2025 2024
Notes £ £
Bankloans 18 1,173,343 1,200,890

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

22 ~Restricted funds - Group & Charity

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April Incoming Resources Transfers At31 March At31 March
2024 resources expended 2025
£ £ £ £ £
Nursing Unit Fund 7,469 - - (7,469) -
Sandhills Fund 25,251 - - (5,000) 20,251
Entertainment Fund - 447 (447) - -
Sandhills Events Fund - 1,870 (1,870) - -
32,720 2,317 (2,317) (12,469) 20,251
Previous year: At 1 April Incoming Resources Transfers At 31 March
2023 resources expended 2024
£ £ £ £ £
Nursing Unit Fund 6,859 659 (49) - 7,469
Sandhills Fund 25,251 - - - 25,251
Entertaining Fund - 714 (714) - -
Sandhills Events Fund - 1,095 (1,095) - -
32,110 2,468 (1,858) - 32,720

The Sandhills Fund represents donations from supporters and families of those who attend the Day Centre towards the cost of creation of a Dementia Village, the purpose of which is to stimulate memories of those attending. Creation of the Dementia Village was delayed by the Coronavirus epidemic and consequent closure of the Day Centre, then by the need to replace the flat roof over part of the building. Subsequently with attendance at the day centre substantially below former levels, priority has been given to supporting the main business,the nursing home until full recovery has been achieved. When that point is reached a decision will be taken on what further investment in the day centre is appropriate.

The Nursing Unit Fund represents donations from families of residents to be used for the benefit of residents for entertainment and for additional decorative items to enhance the environment.

-27-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

23 Unrestricted funds - Group

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April Incoming Resources Transfers At31 March
2024 resources expended 2025
£ £ £ £ £
Designated fund 1,547 - - - 1,547
General funds 4,109,502 §,242,499 (4,793,164) 12,469 4,571,306
4,111,049 5,242,499 (4,793,164) 12,469 4,572,853
Previous year: At 7 April Incoming Resources Transfers At31 March
2023 resources expended 2024
£ £ £ £ £
Designate funds 1,547 - - - 1,547
General funds 3,938,810 4,716,107 (4,545,415) - 4,109,502
3,940,357 4,716,107 (4,545,415) - 4,111,049
Unrestricted funds - Charity
The unrestricted funds ofthe charity comprise the unexpended balances of donations and grants which are
not subject to specific conditions bydonors donors and grantors as to howtheymay be used. These include
designated funds which have been set aside out ofunrestricted funds bythe trustees for specific purposes.
At 1 April incoming Resources Transfers At31 March
2024 resources expended 2025
£ £ £ £ £
Designated fund 1,547 - - - 1,547
General funds 4,021,700 4,706,445 (4,255,932) 12,469 4,484,682
4,023,247 4,706,445 (4,255,932) 12,469 4,486,229
Previous year: At 1 April Incoming Resources Transfers At31 March
2023 resources expended 2024
£ £ £ £ £
Designate funds 1,547 ~ - - 1,547
General funds 3,867,738 4,155,672 (4,001,710) - 4,021,700
3,869,285 4,155,672 (4,001,710) - 4,023,247

24 ~ Unrestricted funds - Charity

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

-~28-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

25 Analysis of net assets between funds - Group

Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 31 March 2025:
Tangible assets 5,099,674 - 5,099,674
Current assets/(liabilities) 646,522 20,251 666,773
Long term liabilities (1,173,343) - (1,173,343)
4,572,853 20,251 4,593,104
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 March 2024:
Tangible assets 5,021,162 - 5,021,162
Current assets/(liabilities) 290,777 32,720 323,497
Long term liabilities (1,200,890) - (1,200,890)
4,111,049 32,720 4,143,769
=Analysis of net assets between funds -Charity
Unrestricted Restricted Total
funds funds
2025 2025 2025
£ £ £
At 31 March 2025:
Tangible assets 5,099,674 - 5,099,674
Investments 2 - 2
Current assets/(liabilities) 559,896 20,251 580,147
Long term liabilities (1,173,343) - (1,173,343)
4,486,229 20,251 4,506,480

26 =Analysis of net assets between funds - Charity

-29-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

26 Analysis of net assets between funds - Charity

(Continued)

Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 March 2024:
Tangible assets 5,020,848 - 5,020,848
Investments 2 - 2
Current assets/ (liabilities) 203,287 32,720 236,007
Long term liabilities (1,200,890) - (1,200,890)
4,023,247 32,720 4,055,967

27 ~+Related party transactions

Hoyiake Cottage Care Manager is the daughter of trustee Michael Sutton, who was not involved in the process of her appointment. Her salary is paid at Hoylake Cottage standard pay rates.

During the year Hoylake Cottage received rent of £13,200 (2024: Enil) from its subsidiary Brookfield Homecare Limited for the use of office space. Both charities are a related party by virtue of Hoylake Cottages (parent) control of Brookfield Homecare Limited (subsidiary). The transaction was conducted on normal commercial terms. No balances were outstanding at the year end (2024: £nil).

28 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellabie operating leases, which fall due as follows:

2025 2024
£ £
Within one year 9,768 9,058
Between two and five years 36,168 11,160
45,936 20,218

-30-

HOYLAKE COTTAGE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

29 Cash generated from operations 2025 2024
£ £
Surplus for the year 449 335 171,302
Adjustments for:
Investment income recognised in statement offinancial activities (51,231) (45,632)
(Gain)/loss on disposai of tangible fixed assets - 2,072
Depreciation and impairment of tangible fixed assets 128,976 119,803
Movements in working capital:
(Increase) in debtors (65,006) (56,047)
(Decrease)increase in creditors (3,841) 8,044
Cash generated from operations 458,233 199,542
30 = 3=©Analysis ofchanges in net (debt)/funds
At 1 April 2024 Cash flowsAt 31 March 2025
£ £ £
Cash at bank and in hand 315,864 276,583 592,447
Loans falling due within one year (23,959) (2,154) (26,113)
Loans falling due after more than one year (1,200,890) 27,547 (1,173,343)
(908,985) 301,976 (607,009)

-31-