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← WCH Trust for Children

2025-03-31-accounts

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN (Scottish Charitable Incorporated Organisation)

REPORT AND FINANCIAL STATEMENTS

for the year ended 31 March 2025

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

CONTENTS

Page
Reference and administrative details 1
Trustees’ Report 2-6
Independent Examiner’s Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10-15

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

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Secretaries and Treasurers MHA, Chartered Accountants and Principal Address 6 St Colme Street Edinburgh EH3 6AD Bankers Virgin Money 83 George Street Edinburgh EH2 3ES Investment Managers Rathbones 10 George Street Edinburgh EH2 2PF Independent Examiner RLH Crawford, BA CA CTA Jeffrey Crawford & Co Chartered Accountants 25 Castle Terrace Edinburgh EH1 2ER Solicitors Anderson Strathern LLP 1 Rutland Court Edinburgh EH3 8EY SCIO Number SC003724 Companies House number CS000004

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WCH TRUST FOR CHILDREN

TRUSTEES’ REPORT

The Trustees present their report along with the financial statements of the charity for the year ended 31 March 2025.

Objectives and Activities

The charitable purposes of the SCIO are:

Achievements and Performance

As detailed in Note 4, during the year, grants were made to 27 (2024 - 22) Scottish registered charities as well as 29 (2024 - 33) individual grants to former residents of the Home. The grants for the year ended 31 March 2025 were mainly determined at the grants committee meetings held in June and December 2024.

Financial review

The results of the year are shown in the financial statements. As planned, there is net expenditure before investment gains and losses of £194,038 (2024: £67,265). The deficit increased substantially in the year due to the contribution to the Scottish Government’s Redress Scheme of £143,333 (2024: £30,000). The net movement in funds for the year after investment gains and losses was a decrease of £180,405 (2024: £1,014).

Reserves Policy

The Trustees intend to continue the policy of expending at or in excess of 150% of annual investment income to meet grant funding objectives. Funds brought forward from previous years are available if needed. Reserves at 31 March 2025 were £1,062,152 (2024: £1,242,557).

Investment policy and performance

There are no restrictions on the charity’s power to invest. The investment objective of the Trust is to grow both capital and income over the longer term. The investment managers attend a formal meeting of the Investment Committee twice yearly and operate on a discretionary management basis.

The total value of the investment portfolio as at 31 March 2025 was £1,046,764 (2024: £1,222,911), made up of securities of £1,038,633 (2024: £1,212,658) and cash of £8,131 (2024: £10,253). Income generated was £40,093 (2024: £42,574).

2

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

TRUSTEES’ REPORT (continued)

Investment policy and performance (continued)

The WCH Trust’s investment portfolio generated a total return, net of all fees, of 2.9% over the 12 month period to end of March 2025. This is behind the MSCI All Country Benchmark (+5.37%) but broadly in line with the peer group, as measured by the ARC Steady Growth risk category, which appreciated by 2.1%.

Global stockmarkets continued to recover in 2024 as attention turned to interest rate cuts due to weak growth and falling inflation, China announced measures to stimulate growth, and corporate earnings were solid. Politics played a prominent role in markets, with more than half of the world going to the polls in 2024. The UK electorate voted overwhelming for change with a large Labour majority, and the US re-elected Donald Trump to the White House. Trump wasted no time in carrying out his election pledges, with Canada and Mexico the first to be imposed by Tariffs. This theme continues to impact markets, as businesses and investors delaying decisions whilst trade conditions remain uncertain. The unveiling of Chinese company DeepSeek’s Artificial Intelligence (AI) model in January sent shockwaves through US technology companies, as they announced similar performance to OpenAI at a fraction of the cost, leading investors to question the large AI spend by these companies. Chip maker Nvidia, which had become the world’s largest company in June, lost $590 million in market value in one day.

In addition to funds being withdrawn to pay usual gifts and for the Scottish Government’s Redress Scheme, we took the decision to make a number of changes to the composition of the portfolio, as we look globally for opportunities that are not available on the traditional UK market. Position sizes in some of the larger UK holdings were reduced to provide funds, and we elected to sell Prudential which is now primarily exposed to Asia which continues to be a challenging market, and Schroders where performance has been volatile. We introduced a number of new names in Europe and the US, and whilst timing has been against us due in part to the afore-mentioned reasons, markets have since recovered, and we continue to have strong conviction in the companies we selected over the long term. The UK was reduced by around 9% to 25%, with the allocation to Europe and the US increased.

The top performers on a total return basis have been HSBC (+54.39%), London Stock Exchange (+22.25%), Unilever (+19.87%) and BAE Systems (+18.22%), whilst Diageo (-28.84%), Salesforce (-22.73%), Schneider Electric (-19.92%) and ASML (-18.76%) have detracted from performance. Gold has been a useful diversifier in the portfolio, rising by 8.38% from original purchase midJanuary to the end of March, as investors and governments continue to favour this safe haven.

The portfolio’s overall yield reduced to 2.99% or £31,200 as at the end of March, reflecting the withdrawal of funds, and the move to more overseas holdings.

Grant making policy

The Trust welcomes applications for grant aid from registered charities whose aim is the protection, care and welfare of children in Scotland. Applications are reviewed at each meeting of the Grants Committee and are assessed on an individual basis taking into account the nature

of the project being undertaken, knowledge of the charity and the impact that the grant aid would make to the project. Where it is felt appropriate, grant aid can be spread over the lifetime of a particular project. The Trustees on the Grants Committee monitor the effectiveness of the grant aid by obtaining and reviewing periodic updates from the charities concerned.

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WCH TRUST FOR CHILDREN

TRUSTEES’ REPORT (continued)

In addition, the committee receive individual requests for financial assistance from former residents of the home. Where support is given, it can either be in the form of a grant or loan depending on the circumstances. These are dealt with as and when the requests are received.

Risk management

The Trustees have considered and maintain a risk register of the major risks to which the charity is exposed. They are satisfied that systems are in place to mitigate exposure to those risks. In common with many Children’s Homes operating in the 1960s and ‘70s, former residents have raised allegations in the past about mistreatment during their time in the Widowers’ Children’s Home. As the Home closed in 1980 and therefore no longer exists, this charity, which has the financial welfare of ex-residents as one of its charitable objectives, has been the focus for reporting these allegations. The Trustees have always advised former residents to speak to the appropriate authority.

In January 2017 the Trust was given notice under section 21 of the Inquiries Act 2015 to provide reports relating to the Widowers’ Children’s Home as part of the Scottish Child Abuse Inquiry. While the information available to the trustees was limited a detailed report was provided to the Inquiry in April 2017. The Inquiry is ongoing and at the end of 2024, we forwarded documentation requested by them. We understand that the allegations concerning incidents that took place while the Home was in operation will be considered in Phase 10 of the Inquiry.

In June 2018, the charity received formal notification that 10 ex-residents felt they suffered abuse while resident at the Widowers’ Children’s Home in Edinburgh. As a result of a recent change in legislation they wished to sue this charity for as yet unquantifiable compensation. This matter remains in the hands of our solicitors and OSCR has been informed. In 2019, 4 of the cases brought by ex-residents were found to relate to a period where the Home had insurance in place. Accordingly, these cases have been passed on to the relevant insurers. As at the balance sheet date, 3 claimants had sadly passed away.

The Scottish Government’s ‘Redress for Survivors (Historical Child Abuse in Care) (Scotland)’ bill received royal assent in April 2021 and began accepting applications in December 2021. The Trustees, after carefully considering the matter including taking legal advice, resolved in November 2022 that the charity should join the Redress Scheme "RS" as a Contributor. The Trust formally joined the scheme on 27 September 2023. Since notifying the Scottish Government in December 2022 of our intention to join the RS, the Trustees have been informed that 12 former residents of the Home and/or their next of kin have contacted the RS to note a claim. During the year to 31 December 2024, the RS made determinations which resulted in the Trust incurring a liability of £173,333 and we have recently been informed of a further determination which will result in us being due a further amount of £46,667 in March 2026.

Plans for the future

The Trust’s investment income was broadly consistent with the prior year, being £40,093 in the year to 31 March 2025 compared with £42,574 in the year to 31 March 2024. The anticipated income for the year to 31 March 2026 is £31,258. The expected decrease is due to the disposal of shares in the year to fund the Redress Scheme contribution. The Trustees intend to continue to consider charity applications for funding on a biannual basis in line with reserves and grant making policies.

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

TRUSTEES’ REPORT (continued)

Structure, Governance and Management

The WCH Trust for Children is a Scottish Charitable Incorporated Organisation (SCIO) and is governed by its constitution dated August 2016.

Structure, Governance and Management (continued)

The Trustees meet formally twice yearly and those who served during the year are listed on page 1. The day-to-day management of the Trust is undertaken by the Secretaries and Treasurers, MHA Chartered Accountants.

Organisational structure

The responsibility for the management of the charity’s investments and the review of grant aid applications and making recommendations thereon is split between the Investment Committee and the Grants Committee. Each Trustee serves on one of either the Grants or Investment committees which then report to the Trustees. These committees also meet twice yearly although they convene and consult on other occasions as required.

The overall strategy, policy and general control of the charity is the responsibility of the Trustees but the day-to-day co-ordination of management of the charity is devolved by the Trustees to the Secretaries and Treasurers.

Recruitment, appointment and training of Trustees

New Trustees are appointed by the existing Trustees in accordance with the terms of the Constitution. The number of Trustees shall not be fewer than three and not be more than nine.

Appropriate training is provided, and all the current Trustees are familiar with the practical work of the charity and their responsibilities as Trustees.

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TRUSTEES’ REPORT (continued)

Trustees’ responsibilities statement

The Trustees are responsible for preparing the Trustees’ Report 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 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees 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 Investments (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the constitution. 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.

For and on behalf of the Trustees

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19 November 2025

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

Independent Examiner’s Report to the Trustees of WCH Trust for Children

I report on the financial statements of the charity for the year ended 31 March 2025 set out on pages 8 to 15.

Respective responsibilities of Trustees and Independent Examiner

The charity’s Trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity Trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention.

Basis of Independent Examiner’s statement

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

Independent Examiner’s statement

In the course of my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that in any material respect the requirements:

  2. to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

  3. to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

have not been met; or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

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19 November 2025

Jeffrey Crawford & Co 25 Castle Terrace Edinburgh EH1 2ER

7

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2025

Income from:
Note
Investments
Total income
Expenditure on:
Raising funds
2
Other expenditure
3
Charitable activities
4
Total expenditure
Net expenditure before gains on investments
Net gains on investment assets
8
Net (expenditure) and net movement in funds
Fund balance at 31 March 2024
11
Fund balance at 31 March 2025
11		 2025
£
40,093
40,093
8,785
143,352
81,994
234,131
(194,038)
13,633
(180,405)
1,242,557
1,062,152		 2024
£
42,574
42,574
8,481
30,000
71,358
109,839
(67,265)
66,251
(1,014)
1,243,571
1,242,557

8

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

BALANCE SHEET at 31 March 2025

Note
Fixed assets
Investments
8
Current assets
Cash at bank
Cash at brokers
Debtors
9
Creditors: amounts falling due within one
year
10
Net current assets
Net assets
Represented by:
Unrestricted funds -General Fund
11		 2025
£
1,038,633
21,202
8,131
1,794
31,127
(7,608)
23,519
1,062,152
1,062,152		 2024
£
1,212,658
23,516
10,253
2,734
36,503
(6,604)
29,899
1,242,557
1,242,557

These financial statements were approved by the Trustees on 19 November 2025 and are signed on their behalf:

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2025

The significant accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied unless otherwise stated.

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The financial statements have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102 and UK Generally Accepted Accounting Practice.

WCH Trust for Children meets the definition of a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

Income recognition

All income is recognised as soon as the charity has entitlement to the resources, it is probable that the income will be received, and the amount of income receivable can be measured reliability.

Dividends are included when receivable and the amount can be measured reliably by the charity. This is normally once the dividend has been declared and notification has been received of the amount due.

Expenditure recognition

Expenditure is recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, 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 costs related to that activity. All expenditure is accounted for on an accruals basis inclusive of any VAT which cannot be recovered.

10

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2025

Expenditure recognition (continued)

Expenditure on raising funds includes costs associated with generating income for the charity through its investment portfolio. Other expenditure relates to contributions towards the Redress Scheme. Expenditure on charitable activities includes costs incurred in the delivery of the charity’s objectives. It includes both the direct cost of grant making and those costs of an indirect nature necessary to support them.

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the charity.

Support costs are allocated between governance costs and other support costs. Governance costs comprise those costs including the public accountability of the charity and therefore include the cost of independent examination. Other support costs relate to the administrative costs of running the charity.

Investments

Investments are a form of basic financial instrument and are initially measured at their transaction value and subsequently measured at fair value at the balance sheet date. Gains and losses on disposal and revaluation of investments are credited or charged to the Statement of Financial Activities throughout the year.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to underlying economic conditions, the attitude of trustees to investment risk and changes in sentiment concerning equities within particular sectors or sub sectors.

Debtors

Debtors are recognised at the settlement amount due.

Cash at bank and in hand

Cash at bank and in hand include cash and short term highly liquid investments with a short maturity date of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable the transfer of funds to a third party will be required and the amount due to settle the obligation can be measured reliably.

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2025

Funds structure

The charity’s funds are all considered by the trustees to be unrestricted and are therefore available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Taxation

The charity is recognised by HM Revenue and Customs as a charity and is therefore not liable to tax on its income and gains to the extent that these are applied to its charitable objectives.

2
Raising funds
Investment management charges
3
Other expenditure
Redress scheme contribution
Tax withheld on foreign dividends
4
Charitable activities
Grants
Aberlour Childrens Charity
Asthma and Allergy Foundation
Baltic Street Adventure Playground
Beeslack All Star Disabled Sports Club
Branch Out Together
Butterfly Trust
Callander Youth Project Trust
Camphill School Aberdeen
Carers of West Lothian
Cerebral Palsy Scotland
Children Health Society
Crew 2000 (Scotland)
Cruse Bereavement
Dean & Cauvin Young Peoples Trust
Dr Bell’s Family Centre
Edinburgh Young Carers Project
Epilepsy Scotland
Balance c/fwd		 2025
£
8,785
2025
£
143,333
19
143,352
2025
£
-
2,400
-
-
3,000
2,000
1,000
-
3,400
-
2,000
-
3,000
3,000
3,000
3,000
-
25,800		 2024
£
8,481
2024
£
30,000
-
30,000
2024
£
3,000
-
3,000
2,000
3,000
-
-
2,000
3,000
3,000
-
2,000
3,000
-
-
-
2,000
26,000

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2025

4
Charitable activities (continued)
Grants (continued)
Balance b/fwd
Equi-power Central Scotland RDA
Families First
Families Outside
Fetlor Youth Club
Fife Young Carers
Friends of Forthview
Glasgow Children’s Hospital Charity
Hillhouse
Homelink
Hopscotch
Kidney Kids
Kindred
Leith Athletic F.C
Light Up Learning
Money Advice Scotland
Pleasance Theatre Trust
Plus (Forth Valley)
Pregnancy Counselling & Care (Scotland)
React
Strange Town
Sunrise Partnership
Sunshine Wishes Children’s Charity
Super Power Agency
Tailor Ed Foundation
The Cottage Family Centre
The School Bank West Lothian
The Wee Haven Youth Project
The Yard Adventure Centre
YDance
Grants to organisations
Individual grants to former residents of the Home - 29 (2024: 33)
Total grants
Support costs
Secretaries and Treasurers’ fees
Other professional fees
Governance costs (see note 5)
Total support costs
Total costs		 2025
£
25,800
-
3,000
-
-
-
3,000
-
2,000
2,000
2,000
-
3,000
1,000
-
-
2,000
2,000
-
3,000
2,000
-
-
2,000
3,000
1,000
4,000
-
2,000
2,000
64,800
6,154
70,954
5,880
-
5,160
11,040
81,994		 2024
£
26,000
2,000
-
2,000
3,000
2,000
-
3,000
-
-
-
3,000
-
-
3,000
3,000
-
-
3,000
-
-
1,000
1,000
-
-
-
3,300
-
-
-
55,300
5,850
61,150
4,954
782
4,472
10,208
71,358

13

Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2025

5
Governance costs
Secretaries and treasurers’ fees
Independent examiner’s fees		 2025
£
3,920
1,240
5,160		 2024
£
3,302
1,170
4,472

6 Staff numbers

The charity operated with no employees during the year (2024: None).

7 Trustees’ remuneration and expenses

Trustees received no remuneration (2024 - £nil) and were not reimbursed for any of their expenses in the year (2024 - £nil).

8
Fixed asset investments
Market value at start of year
Add: Acquisitions at cost
Less: Disposal proceeds
Net investment gains in year
Market value at end of year
Historical cost at end of year		 2025
£
1,212,658
242,482
(430,140)
13,633
1,038,633
777,771		 2024
£
1,189,018
63,399
(106,010)
66,251
1,212,658
837,730

The charity’s investments are all in listed securities. Investments in holdings at 31 March 2025 which are over 5% of portfolio by value are:

Aviva Investors US Equity Income Fund
JP Morgan US Equity Income Fund
9
Debtors
Dividends receivable		 64,948
60,854
79,131
77,606
2025
£
2024
£
1,794
2,734

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Docusign Envelope ID: 23961B7D-0EDB-4C62-A2FD-975626FF62FE

WCH TRUST FOR CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2025

10Creditors: amounts falling due within one year
Secretaries and treasurers’ fee
Investment management fees
Independent examiner’s fees
11Analysis of net movement in funds
At 1 April
Income
Expenditure
£
£
£
General fund
2024/25
1,242,557
40,093
(234,131)
General fund
2023/24
1,243,571
42,574
(109,839)		 2025
£
4,256
2,170
1,182
7,608
Gains/
(losses)
£
13,633
66,251		 2024
£
3,314
2,165
1,125
6,604
At 31 March
£
1,062,152
1,242,557

12 Related party transactions

There were no related party transactions in the year (2024: None).

15