Charity Registration No. NIC100773 Company Regl$trallon No. N1003511 (Northèm Ir•landl THE TOWELL BUILDING TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 THE TOWELL BUILDING TRUST LIMITED CONTENTS Pag• Legal and administrative information Trustees, report Slalement of Trustees, responsibilities Indgpendenl audlto¢s ￿pOrt 8- 11 Statement of financial activities 12 8alance Sheet Statement of cash flows 14 Notes to the financsal statements 15-26 THE TOWELL BUILDING TRUST LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trust Mr S Duffield (chairy)ers￿} Mrs L FosteT Mr D Galbraith Mrs M. A. Guiler (Treasurer) Mrs L Hyndman chai￿n) Mr D. Kealey Mr l.J. Laird Mrs V. Lap51ey MrA.J. Martin Mr 8. Robinson Mrs A Downey Mr M Johnston s￿retary Mrs J. 8rooker Charlty number NIC100773 Company numbor N1003511 Pr5nclpal addre TO￿11 Hous• 57 King Road BeNa¥t BT5 7BS Regl¥tèr•d offlc• 4th Floor Donegall House 7 Doftegall Square North Belfast BT1 SGB Audltor Moofe IN.1.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT15GB Banker Danske 8ank Donegall Square Bewast BT1 &JS Sollcitor5 Cravhord LLx*hart Bla¢ Linenhall House 13 Linenhall Street Belfast BT2 8AA THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2025 The Trustees present their report and accounts for the year ended 31 DecembeT 2025, which are also prepared to meet the requiremet)Is for a directors, report and aCr￿U￿ts for Companies Ad purposes. The accoun15 have been prepared in aCCOTdance wth the accounting poliues set out in note 1 to the acwijnts and comply with the Trusvs Memorandum and Artide of Assoriab"on. the Companies Act 20[￿ and 'Accounb"ng and Reporting by Chanties." Slalement ol Recommended Practice applicable to charib.es prepanng their accounts in accordance wth the Finanual Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191" Obje¢tlvg¥ and activitie¥ The Tnjsys objects are set out in Ihe Memorandum and Arbde8 OtAssorialion and may ￿ summarised as '. to provide accommodation for older peoF4e and people with physical disabilities irrespective of their finantyal means., to care for residents ol such accommodation indvding the provision of medi¢al Care and social activities ppropriale lo their needs and Consistent wth their wellbein9 and urcumstances., 1¢ provide ¥ti•rnabve ¢are to older people and people physical di5atslilie8 irrespective of their finanaal means. Our aim is to rna￿ the needs of our rasidents for safe acconwnodation ￿th good quality ¢alering, appropriate activities and care in a manner that reflects their right8 and is consistent wth our obligations lo them, their families and friends. Ensurlng our work dollvers our alms The policie5 bdopled In furtherance of these objects are that we keep our aim and objects'ves under continuous review to ensure that we meet the needs of our residents and there has b8&n no change in these during the year. In addition the Trustee8 carry out monthly telephone reviews with a selethon of relatives on the operation cif the home. The staff and Trustees also carry out 5epar¥le monthly inspecb'ons of the hcrne which. inter alia. in¢ludo reviews with a selection of residents and staff. These reviews ale designed to ensure that any issues that residents, their relatives or the staff have may be identified. consid*r*d and addressed. Additionally, a 5erie8 of inlemal audits artr ¢arri•d out aach nTrJnth. The outcome ol all the remews 1$ d¢xum•nt•d and reported to the eoard each month. The home 1$ also subject to regular inspection by the Regulaiion and Quality Improvement Authority. Our main objectives for the year eonlinued to be the provision of qLtalty aco7mmodalion, Ca￿ and activities for both our pemianenl and re$yie residents. The strategies that we used to meet our objectives induded.. -providing safe aeeommodalion for our residents -focusing tsn the PrO￿$10n of quality Catering -focusing on prowding a wide ran9? of •th"tiÈs and entertainment The Trustees have paid due regard to guidanee issueil by the Chanty Ccrfnmission in detiding the activffjes the Trust should undertake. Information on matters of potential cc￿reM lo staff is given through meth'ngs, Ihe monlhly stsff neW￿￿tter and reports which seek to achieve a common awareness on the part of all the staff of the operation of all aspects of the home Including economic factors that rnay impact these operatsons. Applications for emkloyment by disabled persons are aN¥3ys fully considered, bearing in mind the apliludes of the applicant concerned. In the event of mernbers of staff becoming disabled, every effort is made to ensure that their employwent wrthin the Trusi continues and that the appropriate training is aTrangeil. 11 is the policy of the Trust that the training, career development and PTomobon of disabled pèrsons should, as far as possible, be identical lo that of other employees. THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 How our 3¢tivitie5 deliv•r public b8n•fit Public benefit frorn our serwces 15 direded al the frail and eldedy population aged over 65 years or physically disabled population aged under 65 years. irrespective of their means. Direct benefits are derived from a number of our serwices.. .ProMsion of accommodation." .Assessing need and providing c3r• appropriat& to these ass¢ssed needs. -Pr¢wding an all indusive facilty wth a rnnge of activities approwate to the individual to tyevent feelings of boredom and social isolation., .Prowding an environment that promotes improved physical and mentsl health and well being., -ProMding re$￿'te care to the frail and elderty populab.on aged ovw 65 y•ors or phy$i¢ally disabled population aged under 65 years, enabling carers to have a break. This provide5 addits.onal supwt to ¢8or8, assisting Ihern in continuing Ih&r caring role at ht)me 4wlh Ihwr service user, an -Prowding stepdown care to hospitalised patients are either froil and dd•rfy and 8ged 65 yearG and abov• or physically disabled and aged under 65 years. We assist with the recovery and Tehabilitation as a Stepping stone to retuming to their own homes. Achlevements and ￿rf0Mlane• Demand l¢r th* typè of care we offer has remained high with average occupancy over 97%12024- 97%). v￿en vacaled, room$ ar* refilled quickly. The buildings and gardens are maintained to a high standard and improvement$ ar• mad• when finances allow. The substantial building and refvrbishmenl programme. which commenced in 2023. was ¢￿pleted in July 2025. Disnjptson to residents was minimised and new and refurbished rooms were wldely welcomed by re$id•nl$, families and staff and gfeaily enhanced the ambiance of the horne. Flnancial rev5ew The Trustees believe r( is very impartanl that the Trust 1$ financially secure and that the finanaal yrfoMian￿ Is rèviewed rtsgularty. A *Judget IS Prepared annualty and is diycvs¥ed and agreed by thè board. In the course of thè discussion the directors consider issues that are likely to imp8¢t on th¢ current year and known issuès that will arise in the lulure. The key issues that have been identified are the adequary of the level of funding paid by the Health & Sorial Care Trusts and the ￿$1 implieab"¢)ns of retaining and recruiting staff in a competitive labour market. The financial performance is reviewed at each board meeting. A report detailing the p&rfom)ance for the pr&wous month and the year lo dale relab've to the budget. together with ojmmentary ther￿. 1$ arculaled in advance of each meeting. The Trust's investments are managed on • dis¢rÈtionary basis by Investment Managers who submit a report on the performance of the investments on a quarterly ba515. This is ￿￿eWed by the Chief Executive Officer and the Finance Direetor and is available to all the Tnjstees. Meetings are held with the Investment Manager5 to review the perfomance of the investments as required. After consideration of the exceptional refU￿iShment expenditure in 2025. the Trust recorded a sth'sfaciory financial outcome lor the year. The operating surplus for the year was £66.640 12024 defiat £4,294). This was within the budgetary limits set by the Trustees at the beginning of the year. Government policy has conlintjed and is continuing to implement above irfab.on inueases to National Living wages and other employer costs and thus 1115 essents'al that Government increases the fijnding of care for the elderfy to a level that adequately reflects the cost of providing this service. The Trustees consider it prudent to hold monies in reserve in the event that unforeseen circumstances should lead to financial difficulties which might put the ftrture of its trading as a going concem and its efnploymenl capaoty, general charrtable work and woperty in jeopardy. The Trustees believe the strength of the Balan¢ Sheet has helped maintain the business as a going concern during this year. THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 R•$ervgs The Trustees have examined the charity's requirements for reserves in light of the main risks to ihe organisation and established a fomal policy whith sb"pulales that free reserves be maintained al a level which ensures that thè charity's core activity could continue during a period of unforeseen diffiujlty. Free reserves are defined by the Trustee5 as unrestricted income funds freely available for use as the chaflty so detefmines and thereby exdudes any funds committed, invested in tangible fixed assets held by the charity and re5tncted or designated funds. The Trustees consider that the most appropriate policy for invests.ng lund5 continues to be In a balanced portfolio of investments with a minimum risk mainly quoted on the London Stock Exthange that spread5 thè risk and prowdes opportunity for in¢ome and fN capital grovrth. This portfdio is managed by an external firm ?f investment managers. Rlsk management The Trustees have assessed the major risks to which the Tnjst is exposed and are satisfied that systems are in place to mitigate exposure to the major ri5k5. However. confLnued above-inflationary increases to Nab'onal Living Wage and the Government poli¢y on Employer's National Insurance together wth inflats'onary pressures on operating costs are a Matter of concEm. Plans for future perfods & factors affKtlng the financlal posltion in future p8rfod• The fruslees will continue to comprehensively review ihe operats'onal activity of the home. Positive steps are underway for the future to establish new links wthin the local community thereby lrfting the charity profile and the 8eNces it has to offer. Towell Hous& continues lo operate successfulty arbd provides high quality accommodation and care lo all rt$ residents. There remains a high demand for residential care. The buildings and gardens are maintained lo a high standard and improvements are made vthen finances allow. The SLtbstantial building programme commenced in 2023 was completed during the year. The number of re￿dent rooms 1$ now 92. wth 50% ensuite and facilities for residents and staff have been upgraded lo a hbgh stsndar¢J. thu8 maximi$ing income for the Trust and prowding good working environment. Planning our estate maintenance, training matrix and our staffing requirements for the fvIuTe will ensure we keep abreast of the cart industry standard requirement$ and ￿sUre we meet organisational goals and tsrgels. The main factors which are likely to affect the financial performance or position going lo￿ard are:. the impact of the substantial annual increases in National Living Wage on all Staff c4)yts in an intreasingly competitive labour market the related pension costs and national insurance the ability lo rec¥uit and retain staff - the demand for appropdale qualty ￿SidentIal care in the ¢ObY*nunty - thè cost Impli¢alions of new and onerous regulatory Standards imposed in the care industry - the impad of the current inflationary pres$LFre on all aspeds of costs of operating the home. induding those resulting from ongoing-geo pol¢tical events. - the continuing inadequacy of the fvnding provided by the Heallh and SOCI￿ Care Trusts THE TOWELL BUILDING TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2025 Strueturè, govemance and manag•mont The Trust is a cornpany limited by guarantee. nol having a share capital. It is registered in Northern Ireland (registration number.. N10035111 and ha$ obtsined tharrtable stslus wrth The Charity Commission for Northern Ireland (reference number.. NIC1007731. 11 is governed by its Memorandum and Artides of Associats'on. In the event of th8 company being wound up and a shortfall enswng. the members are required to eontribute an amount not exceeding fifty pence. The Trusl&&s, are also the direclors for the purpose of cg)mp3ny law. and who seryed during the year and up lo the dale of signature of the finandal statements were.. Mr S Duffield Ichairperson) Mrs L F¢slèr Mr D Galbraith Mrs M. A. Guiler ￿reaSltr8TI Mrs L Hyndman (Vice chairperson) MT D. Kealey Mr l.J. Laird Mr8 V. Lapsley Mr A.J. Martin Mr B. Robinson Mrs Aoowney Mr M Johnston Under the term5 of the Artides of Association one third of the Trustees are required to retire ead) year bul niay offer themselves for r&velection at the Annual General Meets'ng. All of the Trustees give their time and skills Voluntarily and receive no payments for th• wvi¢¢¥ they Provide. The Trustees aim to ensure that the Board ¢on$i$l$ of suilatrAy qualthed wlh wde experience frorn variaty of backgrounds so as to bdng a broad skills mix to the management of the company. The Trustees have established a Risk Regisler lo f¥ililale the development of the risk management process. The Register seek5 10 identify all significant ri5k5 that the Home faces along wth action to mitigate and man8ge each iisk that has been identified. The Register is subjed to regular review an(J utrdaled as deemed appropriate. The Board of TTUSlee5. appointed by Ihe members of the Trusl, meet regularty throughout the year. The executive management. in charge of the day-to-day operations, reports to the Board on a mtsnlhly basis. Sutr committees which have been established by the Board to deal wth specific issues, m&&1 as required and report to the Board accordingly. The Trustees. at the board meetings, make all tr)e major deusions. including strategic decisions, regarding all aspects of the operation of the Trust. This includes the approval of the budget annually. all Signifi￿nI expenditure of a capital nature, the level of fees charged to privately fundeil residents and any additional or supplementary fees that have lo be charged lo Trust fvnded residents. Deusons regarding the day to day running of the Tru51 are made by the Chiel Executive Officer and the Senior Managernent Team vtho meet regularfy in order to en3ure the efficient management of the operatsons. The CEO is the member of the Senior Management Team to whom the Charity Trustees delegate day to day management. The other members of the Senior Management team are a5 fo51ows". - Home manager Depuly home manager Support service rnanager Executive chef - Training manager - Assistsnt manager Night service manager THE TOWELL BUILDING TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Most new Trustees have some knovAedge of the work caTried on by Towell House before they join the Board. A "Cooks Tourf. of the organisation is available along vthh meetings with the Chief ExecAJtive Offic£r and the Home Manager for potential new directorsltrustees. The Trust retains the servic•s of a Human Re$our¢es Ath"sor who provides infomiation on pay levels for the Senior ma￿gement Team a3 and w)aen requi￿d. The company has no relationships third parties that would bts considered lo be related undertakings. The Towell 8uilding Trust holds total unre51ricted reserves of £1.928.570. Audltor The auditor, Moore IN.I.I LLP, is deemed to be reappointed und•r section 487{2> of the Companies Act 2008. Dlscl¢Yaur• of Informatlon to oudltor Each ol the Trustees has confimed that there is no irtformaty.on of whith they are aware whith is relevant lo the audit, but ol which the auditor is unaware. They have fijrther confirmed that they have taken appropriate steps to identify such relevant information and lo estsblish that the auditor is aware of such informab'on. The Trustees, wport was approved by the 8oard of Truslee& MrSDuffl Id Ichalrpersonl THE TOWELL BUILDING TRUST LIMITED STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2025 The Trustees, who are also the director3 of The Towell Building Trust Limitèd for the purpose of eompgny law, are responsible for preparing the Trustees. Report and the finanual statements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Ac£epted Aeeounbng Practice). Company law requires the Twstees to pTrp8re )Inanci81 ststement8 for eath ffinan(>al year which give a true and fair VI￿ of the state of affairs of the Trust and of the incoming resources and application of resources, induding the income and expenditure, of the charIta￿e cunpany for that year. In preparing these financial statement5. the Trustees are required to. select suitable accounting policies and then apply them consi5tenlJy; observe thè methods and prinaples in the Charities SORP., make judgements and esbmale5 that are reasonable and pru