Charity Number SC003369
THE LOTHIAN HOMES TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2025
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THE LOTHIAN HOMES TRUST
ANNUAL REPORT and FINANCIAL STATEMENTS
For the year ended 31 March 2025
| Contents | Page |
|---|---|
| Governors and Advisers | 1-2 |
| Report ofthe Governors | 3-6 |
| Independent Auditor's Report to the Governors | 7-9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | {1 |
| Statement ofCash Flows | 12 |
| NotesfotheFinancialStatements | 13-18 |
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THE LOTHIAN HOMES TRUST
GOVERNORS AND ADVISERS
For the year ended 31 March 2025
Principal Address Lothian Homes Trust 19a Canning Street Edinburgh EH3 8EG Ex Officio Governors Po Deputy Keeper of the Signet c/o Burness Paull LLP (Resigned 1 January 2025) 50 Lothian Road Edinburgh EH3 9WJ Po Deputy Keeper of the Signet c/o Pinsent Masons (Appointed 1 January 2025) 58 Morrison Street Edinburgh EH3 8BP PO Sheriff Principal of Lothian & Edinburgh Sheriff Court Borders 27 Chambers Street Edinburgh EH1 1LB Elected Governors Po Educational Institute of 29/1 Darnell Road Scotland Edinburgh EH5 3PQ PO The Society of Writers to His Anderson Strathern LLP Majesty's Signet 4 Rutland Court Edinburgh Finance Committee member EH3 8EY Pe The Society of Writers to His 36 India Street Majesty's Signet Edinburgh (Appointed 7 October 2025) EH3 6HB Finance Committee member Po The City of Edinburgh Edinburgh Council
Po The City of Edinburgh Edinburgh Council City Chambers High Street Edinburgh EH1 1YJ Pe The City of Edinburgh Edinburgh Council City Chambers High Street Edinburgh EH1 1YJ Pe The City of Edinburgh Council City Chambers High Street Edinburgh EH1 1YJ
The City of Edinburgh Edinburgh Council
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THE LOTHIAN HOMES TRUST
GOVERNORS AND ADVISERS (continued)
For the year ended 31 March 2025
Elected Governors John Christie's Trust (continued) Finance Committee member a John Christie’s Trust John Christie's Trust (Appointed 5 November 2024) Po The Presbytery of Edinburgh & 12 Haymarket Terrace West Lothian Edinburgh EH12 5JZ Po The Presbytery of Lothian 21 St Margaret’s Avenue & Borders Loanhead EH20 9FH The Clerk Pe to the Governors 19a Canning Street Finance Committee member Edinburgh (Resigned 7 October 2025) EH3 8HE C/O Lindsays LLP (Appointed 7 October 2025) 19a Canning Street Edinburgh EH3 8HE Investment Managers Rathbones Investment Management George House 50 George Square Glasgow G2 1EH Auditor CT Audit Limited Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL Bank Bank of Scotland Plc 20-22 Shandwick Place Edinburgh EH2 4RN
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THE LOTHIAN HOMES TRUST
REPORT OF THE GOVERNORS
For the year ended 31 March 2025
The Governors, who are the charity trustees for the purposes of charity law, present their report and the financial statements of the Trust for the year ended 31 March 2025, The financial statements have been prepared in accordance with the accounting policies set out on pages 13 to 14, and comply with the Trust deed and applicable law.
OBJECTIVES AND ACTIVITIES
The manner in which the Trust may operate is determined by the amended Scheme, copies of which may be obtained from the Cierk.
The primary objective of the Trust is the promotion of the education and training of young people under the age of 22 who are in need of care or are living in deprived circumstances or otherwise require assistance to become adjusted to living independent tives. These objectives are achieved through the organisation established by the Governors known as Bridges Project which, while operating under the auspices of The Trust until 31 March 2006, is now separately constituted as an independent charitable company limited by guarantee. The Lothian Homes Trust is now a grant making charity and the Governors have undertaken to provide annual funding for the Bridges Project for a number of years. A report on the Bridges Project activities can be obtained from its operational office at Bogpark Road, Musselburgh, EH21 6RT but in summary activities are focused on assisting young people to become more self-reliant and independent through the provision of education, housing support and life skills.
ACHIEVEMENTS AND PERFORMANCE
The Trust has continued to fund the Bridges Project activities through payment of a quarterly grant under a Funding Agreement between the Trust and Bridges Project which commits the Trust to fund the Project with an annual amount equal to the net annual income of the Trust for an initial six years (from 1 April 2006) and renewable thereafter. The Governors have thrice extended the Trust's undertaking to provide continued funding, subject to satisfactory annual performance, and the current undertaking extends to 31 March 2030. ,
Plans for the future
The Trust continues to view Bridges Project as its main means of discharging its charitable responsibilities and as mentioned previously is committed, subject to satisfactory performance reports from Bridges Project, to provide funding for the period to 31 March 2030. FINANCIAL REVIEW The financial position of the Trust at the year end is as disclosed in the attached Balance Sheet. Unrealised gains within the investment portfolio stood at £1,000,907 at the year end (2024: £1,072,953), The market value of the portfolio was £4,731 ,800 at the year end (2024: £4,789,745). The results of the year are shown in detail in the attached Statement of Financial Activities. Under the commitment to fund the continuing activities of the Bridges Project, the Trust is to give an annual grant of its “net annual disposable income’ for the year and grants of £223,242 (2024: £252,601) are payable in relation to the year.
Net expenditure, before investment gains and losses, was £80 (2024: Net income of £280).
Investment policy and performance
The Governors have appointed Rathbones, Stockbrokers, Glasgow to manage the Trust's share portfolio on a discretionary basis. The primary investment objective is skewed towards a large income stream as opposed to capital growth. There are no specific investment restrictions or limitations applicable. Surplus liquid funds are held on short term deposit with the Bank of Scotland where they can be accessed readily. The Governors were pleased with the investment performance during the year.
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THE LOTHIAN HOMES TRUST
REPORT OF THE GOVERNORS (continued)
For the year ended 31 March 2025
FINANCIAL REVIEW (continued)
Reserves policy
The Governors of the Lothian Homes Trust have a responsibility to ensure the best management of their financial resources in the continuing interest of the Trust’s current and future beneficiaries. As a consequence, the Trust’s current reserves of £5.244 million (including unrestricted funds of £363k) at 31 March 2025 are regarded as an investment for the future funding of charitable activities and the maintenance of capital reserves to enable the ongoing funding of the commitments made to the Bridges Project activities of providing direct services to vulnerable young peaple and young people “at risk",
Whilst the Trust’s terms and conditions retain an option for the Governors to fund other projects, it is the intention of the Governors (assuming good governance) to continue viewing Bridges Project as its chosen vehicle for discharging its charitable responsibilities for the foreseeable future. The Trust's terms and conditions also allow it to consider applications from any previous, current or future beneficiary.
Represented within the reserves are a property and investments which make up a permanent capital endowment of the Trust and regarding which the Governors must act prudently to protect the income generating resources for planned funding as well as maintaining an element of reserves for contingencies. Sufficient sums must be held in reserve to manage the maintenance of the properties.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution and objects
The Governors of the Lothian Homes Trust are a body established originally under an Educational Endowment Scheme of 1934 under the Educational Endowmenis (Scotland) Acts 1928 to 1935 and currently under a Scheme of 1955 under Education (Scotland) Act 1946 (which Scheme revoked the 1934 Scheme and a subsequent Scheme of 1946) as revised said 1955 Scheme by Decree granted in the Court of Session on 16 February 1984 in respect of an application formally presented under Section 105 (4A) of the Education (Scotland) Act 1980 as amended by Section 15 and paragraph 4 of Schedule 6 to the Education (Scotland) Act 1981.
The Trust is a charity and is recagnised as such by H M Revenue & Customs for Taxation purpases. The charity number of the Trust is SC003369.
Organisation
The Governors who served during the year and since the year end are set out on pages 1 and 2.
Under the provisions of the Scheme the governing body consists of ex officio Governors and elected Governors,
There are two ex officio Governors:-
The Sheriff Principal of Lothian and Borders or a person to be appointed by them.
The Deputy Keeper of the Signet or a person to be appointed by them;
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THE LOTHIAN HOMES TRUST
REPORT OF THE GOVERNORS (continued)
For the year ended 31 March 2025
STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
Organisation (continued)
The elected Governors are:-
One person appointed by the Church of Scotland Presbytery of Edinburgh & West Lothian (formerly the Presbytery of Edinburgh);
One person appointed by the Church of Scotland Presbytery of Lothian and Borders ( formerly the Presbytery of Lothian);
One person elected by the Educational Institute of Scotland;
Two persons elected by the Society of Writers to Her Majesty's Signet from its members;
Four members of the City of Edinburgh Council with an interest in Education, Social Work & Housing. Council members are appointed by Council (only three members have currently been appointed).
Three persons elected from their own number by the Trusteesa
ony
two members have currently been appointed).
Day to day overseeing of the Trust is undertaken by the Chairman and the Clerk to the Governors. Overall financial surveillance is entrusted by the Governors to the Finance Committee appointed from the Board’s own number. The Governors met once in the year, in order to discuss strategic and operational matters relating to the Trust. Newly appointed Governors are provided with a copy of the governing document, a copy of the most recent financial statements, and a minute of the most recent Governors’ meeting. In addition, a verbal briefing is given by the Clerk.
Key Management Personnel
The Governors constitute the key management personnel of the Trust. No Governor of the Trust received any remuneration or reimbursement of expenses during the year (2024: ENil).
Related Parties
The Lothian Homes Trust is closely connected with the TrusteesEVho each year allocate a fixed proportion of their free income to the funds of the Lothian Homes Trust. Two of the Governors of The Lothian Homes Trust are also directors of the Bridges Project whose activities have been set out above.
Risk Management
The Governors have assessed the major risks to which the Trust is exposed and are satisfied that systems are in place to mitigate the Trust's exposure to those risks. The major risk is considered to relate to a loss in the value of the charity's investments. In order to reduce this risk, the investments are professionally managed on a discretionary basis and significant liquid reserves are kept on bank deposit.
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THE LOTHIAN HOMES TRUST
REPORT OF THE GOVERNORS (continued)
For the year ended 31 March 2025
GOVERNORS RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The Governors are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),
The law applicable to charities in Scotland requires the Governors 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 of the charity for that period.
In preparing these financial statements, the Governors are required to:
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e select suitable accounting policies and apply them consistently; e observe the methods and principles in the Charities Statement of Recommended Practice 2019 (FRS 102);
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e make judgements and estimates that are reasonable and prudent; e state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Governors are responsible for keeping proper 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 Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity's constitution.
The Governors 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.
Approved by the Governors and signed on their behalf by:
2o Date: >O0as:10:OF
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Independent Auditor’s Report to the Governors of The Lothian Homes Trust
Opinion
We have audited the financial statements of The Lothian Homes Trust (the ‘charity') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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 FRS102 “The Financial Reporting Standard applicable in the UK and Republic of lreland’(United Kingdom Generally Accepted Accounting Practice),
In our opinion the financial statements:
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e give a true and fair view of the state of the charity's affairs as at 31 March 2025, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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e have been prepared in accordance with the requirements of 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 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 avents 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 governors are responsible for the other information. The other information comprises the information included in the governors’ 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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Independent Auditor’s Report to the Governors of The Lothian Homes Trust (continued)
Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ report.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:
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e the information given in the financial statements is inconsistent in any material respect with the governors’ report; or
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e proper accounting records have not been kept; or
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e the financial statements are not in agreement with the accounting records; or
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e we have not received all the information and explanations we require for our audit.
Responsibilities of governors
As explained more fully in the governors’ responsibilities statement set out on page 6, the governors are responsible for the preparation of financial statements which give a true and fair view, and for such internal contro! as the governors 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 governors are responsible for assessing the 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 governors either intend to liquidate the charity 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 section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act.
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.
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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:
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e Through gaining a detailed understanding of the business and operations this allowed for identification of irregularities.
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e Review of minutes of board meetings throughout the period; e Specific consideration was given to transactions with related parties. e Completing testing on investment income and donations and their systems for recognising them to ensure that they have been accounted for accurately and in the correct period.
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e Testing within the investment portfolio to gain assurance over the value and ownership of the investments.
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Independent Auditor’s Report to the Governors of The Lothian Homes Trust (continued)
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Trust's Governors, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the Trust’s Governors 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 Charity and the Charity’s Governors as a body, for our audit work, for this report, or for the opinions we have formed.
CT Audit Limited Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL
Date: 23 October 2025
CT Audit Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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THE LOTHIAN HOMES TRUST
STATEMENT OF FINANCIAL ACTIVITIES
For the year ended 31 March 2025
| Un- | Un- | |||||
|---|---|---|---|---|---|---|
| Restricted | restricted | restricted | ||||
| Note | Capital Fund |
Pension Reserve |
General Funds |
2025 Total |
2024 Total |
|
| £ | £ | £ | £ | £ | ||
| Income from: | ||||||
| Donations Investments |
2 3 |
- - |
- - |
40,707 233,228 |
40,707 233,228 |
67,467 235,129 |
| Total | - | - | 273,935 | 273,935 | 302,596 | |
| Expenditure on: | ||||||
| Raising funds: Investment management fees Property management costs Charitable activities |
4 | - - 6,180 |
- - - |
34,783 3,360 229,692 |
34,783 3,360 235,872 |
34,115 3,360 264,841 |
| Total | 6,180 | - | 267,835 | 274,015 | 302,316 | |
| Net (expenditure)/income before investment gains |
(6,180) | - | 6,100 | (80) | 280 | |
| Realised loss from | ||||||
| Quoted investments | 9 | (55,772) | - | - | (55,772) | (39,520) |
| Unrealised gain/(loss) from Quoted investments |
9 | 18,509 | - | ~ | 18,509 | 49,733 |
| Net income fortheyear | (43,443) | - | 6,100 | (37,343) | 10,493 | |
| Transfers | - | 6,100 | (6,100) | - | - | |
| Net movement in funds | (43,443) | 6,100 | - | (37,343) | 10,493 | |
| Funds at 1 April | 5,003,716 | (85,400) | 363,472 | 5,281,788 | 5,271,295 | |
| Fundsat31March | 4,960,273 | (79,300) | 363,472 | 5,244,445 | 5,281,788 |
All activities are continuing.
The notes on pages 13 to 18 form part of these financial statements.
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THE LOTHIAN HOMES TRUST
BALANCE SHEET
As at 31 March 2025
| Notes | 2025 £. |
2024 £ |
|
|---|---|---|---|
| Fixed assets | |||
| Tangible fixed assets Investments at market value |
8 9 |
396,556 4,731,800 |
396,556 4,789,745 |
| 5,128,356 | 5,186,301 | ||
| Current assets | |||
| Accrued income and sundrydebtors Investment Managers’ cash balances Cash at bank |
11,988 54,907 162,882 |
17,260 69,649 157,366 |
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| 229,777 | 244,275 | ||
| Creditors: amounts falling due within one year | 10 | (34,388) | (63,388) |
| Net current assets | 195,389 | 180,887 | |
| Total assets less current liabilities | 5,323,745 | 5,367,188 | |
| Defined benefit pension scheme liability | 7 | (79,300) | (85,400) |
| Total net assets | 5,244,445 | 5,281,788 | |
| The funds ofthe Charity: Restricted Capital |
4,960,273 | 5,003,716 | |
| Unrestricted Revenue | |||
| General Funds | 363,472 | 363,472 | |
| Pension Reserve (deficit) | (79,300) | (85,400) | |
| 11 | 5,244,445 | 5,281,788 |
Approved by the Governors on ZB Aw Cont <OC* ang signed on their behalf by:
The notes on pages 13 to 18 form part of these financial statements.
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THE LOTHIAN HOMES TRUST
STATEMENT OF CASH FLOWS
For the year ended 31 March 2025
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Cash flows from operating activities: Net cash provided by operating activities (see below) |
(29,908) | 3,579 | |
| Cash flowfrom investing activities: | |||
| Proceeds from sale of investments | 960,241 | 562,555 | |
| Purchase of investments | (939,559) | (515,246) | |
| Net cash used in investing activities | 20,682 | 47,308 | |
| Change in cash and cash equivalents | (9,226) | 50,888 | |
| Cash and cash equivalents at the beginning ofthe year | 227,015 | 176,127 | |
| Cash and cash equivalents at the end ofthe year | 217,789 | 227,015 | |
| Cash and cash equivalents: | |||
| Investment manager's cash balances | 54,907 | 69,649 | |
| Cash at bank | 162,882 | 157,366 | |
| 217,789 | 227,015 | ||
| Reconciliation of net income/(expenditure) to net cash flowfrom operating activities | |||
| Net income before investment gains/(losses) | (80) | 280 | |
| (as per the statement of financial activities) | |||
| Adjustments for: | |||
| Pension cost | (6,100) | (6,700) | |
| (Increase)/decrease in debtors | 5,272 | (190) | |
| (Decrease)/Increase in creditors | (29,000) | 9,589 | |
| Netcash provided by operating activities | (29,908) | 3,579 | |
| Reconciliation of Net Debt | |||
| As at1 | As at 34 | ||
| April | March | ||
| 2024 | Cashfiows | 2025 | |
| Cash | 227,015 | (9,226) | 217,789 |
The notes on pages 13 to 18 form part of these financial statements.
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THE LOTHIAN HOMES TRUST
NOTES to the FINANCIAL STATEMENTS
For the year ended 31 March 2025
- Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with the Statement of Recommended Practice — Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102)(updated October 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
The Trust constitutes a public benefit entity as defined by FRS 102. The functional and presentational currency of the financial statements is pounds sterling.
Going concern
The financial statements have been prepared on a going concern basis. The Governors have assessed the Trust's ability to continue as a going concern and have reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these financial statements,
Restricted funds The permanent endowment of the Capital Fund represents the Restricted Funds of the Trust.
Financial instruments
The Trust has only basic financial assets and liabilities comprising investments, income debtors, cash at bank and creditors for grants and operating costs. These assets and liabilities are initially recorded at cost and subsequently at market value in the case of investments and in respect of other assets and liabilities at the amounts that are expected to be, or have been, received or paid.
investments
In order to comply with the Statement of Recommended Practice, investments are included in the Balance Sheet at market value at the period end date, the unrealised gain being added to Funds. Gains or losses on sale of investments are credited or charged to the Statement of Financial Activities (calculated as net proceeds less previous valuation or cost if purchased in the period),
Fixed assets
Investment property consists of the operational centre at Bogpark Road in Musselburgh which is let to Bridges Project. The operational centre meets the definition of a social investment property under FRS 102, as it is let to tenants that further the charity's own purposes or benefit the charity’s beneficiaries and is required by the SORP to be shown in the balance sheet at cost value af each year end. Income Income is recognised when the Trust becomes entitled to the income, when it is probable that the income will be received and when it can be reliably measured. Therefore, grants are included in the financial statements in the year in which they are receivable and income from investments is accounted for when receivable.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to the expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
Expenditure allocation
Costs directly attributable to charitable activities are allocated to the appropriate activity. Support costs, including governance costs are similarly directly attributed to an activity.
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THE LOTHIAN HOMES TRUST
NOTES to the FINANCIAL STATEMENTS
For the year ended 34 March 2025
1. Accounting policies (continued)
Costs of raising funds
Costs of raising funds consist of investment manager's fees.
Costs of charitable activities
Charitable activities consist of grant making, and the costs include the grants awarded and the support costs inherent in the activity.
Value Added Tax
The Trust is not registered for VAT and accordingly, all expenditure includes VAT where applicable.
Pensions
The Trust participated in the Lothian Pension Fund, a multi-employer defined benefit scheme. The trust no longer has any active members and hasa liability of £122k to be paid to the trust over the next 20 years. In accordance with FRS 102, the Trust's share of a scheme deficit is recognised in full on the balance sheet.
| 2. | Donation income | 2025 | 2024 |
|---|---|---|---|
| £ | £ | ||
| Share | of surplus from John Christie’s Trust | 40,707 | 67,467 |
| 3. | investment income | 2025 | 2024 |
| £ | £ | ||
| Listed | investments | 197,694 | 199,624 |
| Rental | incorne— operational property (Bridges Project) | 31,000 | 31,000 |
| Interest on deposits | 4,534 | 4,505 | |
| 233,228 | 235,129 | ||
| 4, | Charitable activities | 2025 | 2024 |
| £ | £ | ||
| Grants to Bridges Project | 223,242 | 252,601 | |
| Support costs - administrative costs and fees |
6,450 | 6,420 | |
| - governance costs - auditors remuneration (note 6) |
6,180 | 5,820 | |
| 235,872 | 264,841 |
Auditors remuneration of £6,180 (2023: £5,820) has been allocated against the Restricted Capital fund as is allowed by the Funding agreement with the Bridges Project.
5. Key management personnel
The Trust has no employees and the Governors constitute the key management personnel of the Trust. No Governor of the Trust received any remuneration or reimbursement of expenses during the year (2024: ENil).
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THE LOTHIAN HOMES TRUST
NOTES to the FINANCIAL STATEMENTS (continued)
For the year ended 31 March 2025
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|6.|Auditors|remuneration|2025|2024|
|£|£|
|Auditor’s|remuneration|6,180|5,820|
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- Pension scheme
The Trust participated in the Lothian Pension Fund which provides benefits payable to members on their retirement from employment or to their dependants on death before or after retirement. The assets of the Fund are held separately from those of the participating employers.
The last employee of Lothian Homes Trust who was an active member of the Lothian Pension Scheme ceased employment with Lothian Homes Trust in 2007. Lothian Homes Trust is considered to be an exiting employer as defined in Regulation 61(1)(b) of the Local Government Pension Scheme (Scotland) Regulations 2018.
The cessation valuation was prepared following the Lothian Pension Scheme’s triennial actuarial valuation process for the period ended 31 March 2017. Based on this valuation, the Trust is due to make an Exit Payment of £122,000 to Lothian Pension Fund. It has been agreed with Lothian Pension Fund that this liability shall be paid in equal instalments over 20 years with no interest being charged.
Once the Exit Payment has been settled the Trust will have no further liability to Lothian Pension Fund.
The net pension fiability as at 31 March 2025 represents the Exit Payment due.
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|---|---|---|---|---|---|---|
|2025|
|£|
|Opening|net|pension|liability|85,400|
|Exit|Payment|instalments|paid|(6,100)|
|Closing|net|pension|liability|79,300|
|8.|Tangible|fixed|assets|Total|
|£|
|Cost|
|At|1|April|and|31|March|396,556|
----- End of picture text -----
At 31 March 2025, fixed assets consisted of one property, the aperational centre at Bogpark Road in Musselburgh which is let to the Bridges Project. This is considered to be a social investment property, and as such is included in the financial statements at cost.
15
THE LOTHIAN HOMES TRUST
,
:
NOTES to the FINANCIAL STATEMENTS (continued)
For the year ended 31 March 2025
| 9. Quoted Investments |
2025 | 2024 |
|---|---|---|
| £ | £ | |
| Market value at 1 April 2024 | A,789,745 | 4,826,841 |
| Additions during the year (cost) | 939,559 | 515,246 |
| Disposals during the year (proceeds: £960,241: realised losses £55,772) | (1,016,013) | (602,075) |
| Movement in unrealised gains | 18,509 | 49,733 |
| NViarket value of listed securities at 31 March 2025 | 4,731,800 | 4,789,745 |
| Historical book cost of investments | 3,730,893 | 3,716,792 |
| Total unrealised gains | 1,000,907 | 1,072,953 |
| 2025 | 2024 | |
| £ | £ | |
| Net gains/(losses) on investments for the year: | ||
| Realised gains/(losses) | (55,772) | (39,520) |
| Unrealised gains/(losses) | 18,509 | 49,733 |
| (37,263) | 10,213 |
All investments are UK listed securities or gilts.
All investments are carried at their fair value. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The significance of investments to the ongoing sustainability of the Trust is considered in the Report of the Governors as the Trust relies on investment income to fund its activities. The main risk to the Trust lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all investment assets are traded. The Governors manage investment risks by retaining professional investment managers.
| 10. Creditors: amounts falling due within one year |
2025 | 2024 |
|---|---|---|
| £ | £ | |
| Grants payable | 23,242 | 52,602 |
| Sundry creditors and accruals | 6,180 | 5,820 |
| Deferred rental income | 4,966 | 4,966 |
| 34,388 | 63,388 |
16
THE LOTHIAN HOMES TRUST
NOTES to the FINANCIAL STATEMENTS (continued)
For the year ended 31 March 2025
11. Analysis of net assets between funds
Fund analysis for the year ended 31 March 2025
| Fixed | Net | Current | Pension | ||
|---|---|---|---|---|---|
| Assets | Investments | Assets | Liability | Total | |
| £ | £ | £ | £ | £ | |
| Restricted capital fund | 396,556 | 4,563,717 | - | ~ | 4,960,273 |
| Unrestricted fund | - | - | - | - | - |
| General | - | 168,083 | 195,389 | ~ | 363,472 |
| Pension reserve | - | - | - | (79,300) | (79,300) |
| 396,556 | 4,731,800 | 195,389 | (79,300) | 5,244,445 | |
| Fund analysis forthe year ended 31 March 2024 | |||||
| Fixed | Net | Current | Pension | ||
| Assets | Investments | Assets | Liability | Total | |
| £ | £ | £ | £ | £ | |
| Restricted capital fund | 396,556 | 4,607,160 | ~ | ~ | §,003,716 |
| Unrestricted fund | |||||
| General | - | 182,585 | 180,887 | - | 363,472 |
| Pension reserve | - | - | - | (85,400) | (85,400) |
| 396,556 | 4,789,745 | 180,887 | (85,400) | 5,281,788 |
- Contingent financial commitments and asset
The Trust continues to view Bridges Project as its main means of discharging its charitable responsibilities and, subject to satisfactory performance reports from Bridges Project, has agreed to provide funding for the period to 31 March 2026,
The funding agreement in place with the Bridges Project states that the Trust shall provide up to £60,000 to the Project to cover the financial obligations of the Project in the event of the Project being wound up, having to make staff redundant or a similar event. Any surplus after payment of costs arising on the winding-up of the Project shall be repaid to the Trust. The Trust paid the Bridges Project the maximum £60,000 in the year ended 31 March 2007, and therefore a contingent asset exists for any surplus of costs incurred if the Bridges Project is wound up.
13. Related party transactions
As noted in the Report of the Governors, the John Christie Trust and Bridges Project are related parties and the transactions with these bodies are disclosed in notes 2, 3 and 4. The grant balance due to Bridges Project at the year end is noted in note 10 as ‘Grants payable’.
17
THE LOTHIAN HOMES TRUST
NOTES to the FINANCIAL STATEMENTS (continued)
For the year ended 31 March 2025
14. Comparative statement of financial activities
| Un- | Un- | |||
|---|---|---|---|---|
| Restricted | restricted | restricted | ||
| Capital | Pension | General | 2024 | |
| Fund | Reserve | Funds | Total | |
| £ | £ | £ | £ | |
| Income from: | ||||
| Donations | - | - | 67,467 | 67,467 |
| Investments | - | - | 235,129 | 235,129 |
| Total | - | - | 302,596 | 302,596 |
| Expenditure on: | ||||
| Raising funds: | ||||
| Investment management fees | ~ | - | 34,115 | 34,115 |
| Property management costs | - | ~ | 3,360 | 3,360 |
| Charitable activities | 5,820 | - | 259,021 | 264,841 |
| Total | 5,820 | - | 296,496 | 302,316 |
| Net (expenditure)/income before | ||||
| investment gains | (5,820) | ~ | 6,100 | 280 |
| Realised gain from | ||||
| Quoted investments | (39,520) | - | - | (39,520) |
| Unrealised gain from | ||||
| Quoted investments | 49,733 | - | - | 49,733 |
| Net income for the year | 4,393 | - | 6,100 | 10,493 |
| Other recognised gains/ (losses): | ||||
| Transfers | ~ | 6,100 | (6,100) | - |
| Net movement in funds | ||||
| Funds at 7 April | 4,999,323 | (91,500) | 363,472 | 5,271,295 |
| Fundsat31March | §,003,716 | (85,400) | 363,472 | 5,281,788 |
18