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2025-03-31-accounts

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST REGISTERED CHARITY NO: SC007311

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

CONTENTS

Page
Trustees and professional advisers 1
Trustees annual report 2 - 6
7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 27

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TRUSTEES & PROFESSIONAL ADVISERS

Registered charity name The Gordon Highlanders Museum and Regimental Trust

Principal office

Charity number SC007311 Trustees

Auditor Hall Morrice LLP 6 & 7 Queens Terrace Aberdeen AB10 1XL Investment advisers Brewin Dolphin Blenheim House Fountainhall Road Aberdeen AB15 4DT Bankers The Royal Bank of Scotland plc 40 Albyn Place Aberdeen AB10 1YN Solicitors Shepherd and Wedderburn LLP 37 Albyn Place Aberdeen AB10 1YN

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TRUSTEES ANNUAL REPORT YEAR ENDED 31 MARCH 2025

The Trustees present their report and the financial statements of the charity 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 (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and 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).

Reference and Administrative Details

Reference and administrative details are shown in the schedule of trustees and professional advisers on page 1 of the financial statements.

The Trustees

The trustees who served the charity during the period were as follows:

Structure, Governance and Management

The Trust is an unincorporated Scottish charity and was established by a scheme sanctioned by an Interlocutor of the First Division of the Court of Session dated 18 July 1968. The scheme amalgamated a number of Gordon

The Trust Deed empowers Trustees to create Standing Orders that then determine how the Trust operates and is administered, albeit always within such constraints as set out in the Trust Deed.

Trustees are appointed in accordance with the conditions set out in the Trust Deed i.e. that they have a connection with the Gordon Highlanders or with the North East of Scotland. Furthermore, Trustees are also selected in compliance with Standing Order No 7 (Trustee Board). This ensures that the Board has the appropriate mix of skills to ensure that the objectives set out in Trust Deed are delivered.

Under Trust Standing Orders, the full Board of Trustees meets as a body at least every six months. These meetings are usually in November (which is normally focussed on governance including approval of the audit) and in March (usually concentrating on the setting and agreeing next years budget.) The Board are also empowered to conduct business by email and this is being increasingly used to enable decisions to be made which are then recorded at the next formal meeting. This process was used to agree the creation of another Restricted Fund after the donation of £200,000 from a local charitable foundation, which funded after the year end.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TRUSTEES ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2025

The Trustees have also delegated certain powers, responsibilities and duties to separate groups and committees, also governed by standing orders. At present these are an Executive Board, an Advisory Group, an Investment Committee and a Remuneration Committee. The Executive Board is responsible for the day to day operational activities of the Trust. Its composition is made up of 3 Trustees (Chairman, Treasurer and Buildings & Property) as well as the Museum CEO and Head of Visitor Experience who It is specifically responsible for the detailed oversight of the Trust financial performance and the Trust Risk Register. It meets on an as required basis. Some matters are specifically reserved to the full Board of Trustees and these include all matters concerning staff (remuneration and permanent contracts) and the Accessioned Regimental Collection held by the Museum.

This structure enables the Trustees to discharge their full set of responsibilities including the review and revision of the methods and policies under which the Trust is operated. Key to this is the Trust Risk Register whereby risks to the Trust are evaluated and mitigated. Separately, the Trustee Board also maintain a governance checklist that ensures not only compliance with its legal obligations but best practice too.

Trustees invite new appointees to the Board and any appointment is agreed by the Board. Training for new Trustees is provided. All decisions are made by the Trustees.

the Chief Executive of the Museum, is responsible for the Museum senior staff. These are the now part time senior Curator, , the full time Curator and they are jointly responsible for the Regimental Collection. The Chief Executive is also the line manager of who is responsible for the trading activities of the Trust.

Objectives and Activities

The trustees are required to apply the capital and income of the Trust Fund and property in such a manner as they think fit for any purposes which appear to them, in their absolute discretion, to be directed to the improvement, efficiency, benefit or welfare of the Gordon Highlanders or their successor regiment, The Royal Regiment of Scotland. The Trust Fund is also to be used for the benefit of any needy person or persons who have served in the Gordon Highlanders (or The Royal Regiment of Scotland) or are their dependents, widows or orphans. There is significant overlap between our welfare objectives and that of The Gordon Highlanders Regimental Association (a separate charity) and to avoid duplication we have agreed that the Association takes the lead on the delivery of welfare whilst we provide the administrative support (providing an office and clerical support as well as funding the salary of the Regimental Secretary). In this we are further helped because the Regimental Secretary is also now Chairman of the Regimental Association. The Trust Fund and property is required under the Trust Deed to be used to support the management of the Museum and the Regimental Collections.

Charitable Activities

The Trust conducts a range of charitable activities in accordance with the Trust Deed. The most important is the Museum telling and preserving the history of The Gordon Highlanders. We are fortunate that HM The King has remained Patron of the Museum. The audio guide in 9 languages including the local dialect and Gaelic is still unique in Scotland (to our knowledge.) This audio guide which has commentary specifically designed for children is at the heart of our revised learning programme for local schools. The replica WW1 Trench is of particular importance for this too. In addition, community engagement is provided by volunteering opportunities at the Museum where still around 80 volunteers carry out a range of duties including guiding, café services, gardening, research and conservation. Many of the volunteers are elderly and others have physical and other disabilities, therefore the Museum and the volunteers provide each other with mutual benefit. The Museum has also made a determined effort to support the intangible cultural heritage of North East and Scotland with the development of the museum as a very successful venue for Highland Bagpipe recitals and displays on the Highland roots of the Regiment.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TRUSTEES ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2025

Not emphasised in previous reports is the work carried out by the Museum Research Team. This team answers queries about those who served in the Regiment, bringing to light stories that had been forgotten or never told. Its research is also casting new light on the how the Regiment operated (e.g. we now know that it recruited freed slaves at a time when all other Regiments appear to have operated a colour bar. One researcher has published 3 well received books about the Gordon Highlanders in WW2 with all proceeds coming to the Trust. The Museum has a significant oral history archive (over 255 veterans with 1000 hours of recording).

The Trust also ensures the delivery of welfare support to ex-Gordon Highlanders and their dependants and works alongside our sister charity (The Gordon Highlanders Association) to ensure that local Gordon Highlander Association groups are helped as required. The Trust also supports the 4th Battalion Royal Regiment of Scotland with important loans of silver, paintings and property so that it, as the successor unit to The Gordon Highlanders, has items appropriate to its history.

Related Parties

to provide the Museum with financial support in its day to day activities. There is a formal agreement between the 2 parties that underpins this.

Achievements, Performance and Financial Review

Principal Funding Sources

The principal funding sources of the Trust are its Investment Fund, legacies and donations from the public and local companies, along with Grants received towards the running of the museum. Income from these support staff ensuring that the principal objects of the Charitable Trust are met.

Investment Performance

Investment performance is reviewed by Trust officials, together with the representatives from the investment brokers on a six-monthly basis. The forecasts made by these brokers are reviewed at each subsequent meeting in light of the investment objectives set and the market results for the period. The trustees also receive quarterly updates of the investment performance. Investment objectives are to maintain current level of income and resources for charitable purposes. The performance objective has been achieved and current income and resources are consistent with previous years. The move of our portfolio from RBC Brewin Dolphin to Evelyn Partners took much longer than expected but is now complete.

Financial Review

Our investment in improved facilities is now (slowly) paying dividends unlike some of our comparator museums. Unfortunately, as our income was increasing our costs driven by an uplift in the minimum wage and NI contributions have also been increasing. We have taken measures to keep our costs low e.g. not awarding pay increases except such as required by law. Unlike last year we have been able to increase staff numbers albeit by one part time (one day a week role.) The improvements made to the infrastructure of the Museum coupled with changes to processes and staff responsibilities have all improved our resilience.

More importantly donations and legacies continue to provide the safety net the Museum needs whilst it continues to grow its business. The donation of £200,000 from a local benefactor to create a fund for the care of the Accessioned Collection of the Museum sets a welcome precedent for future success in this field especially as we hope to build on this with other benefactors in the years ahead.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TRUSTEES ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2025

Reserves

The unrestricted reserves of the Trust total £3,247,316 as at 31 March 2025 made up as follows

Tangible Fixed Assets (Note 10)
Heritage Assets (Note 11)
Investments held to generate income (Note 12)
Freely Available Reserves
Total Unrestricted Reserves (Note 19)		 £
2,164,962
173,014
815,821
93,519
3,247,316

Future Plans

The execution of the Transformation Plan has resulted in a Museum that is one of the major attractions in Aberdeen. It has earned an enduring 5* Visit Scotland classification but more importantly it is now categorised by Trip Advisor as one of the top 10% attractions in the world. As Trip Adviser is now the go to app for offering information to tourists, this is extremely useful for our long term success. Closer to home the Museum was also shortlisted for a 2025 Community Tourism award. The Museum has no plans for any significant capital expenditure in the short term. What is needed instead is an unremitting focus on increasing our income from all our activities, in which marketing is key.

Marketing the Museum has been helped by a series of high profile events this year. (the culmination of sustained effort) generated significant publicity and exposure for the Museum. The memorial service of our last Colonel of the Regiment (remarkably also attended by HM The King) maintained public interest and the media coverage of our oldest volunteer receiving his BEM at the Museum on the occasion of his 100th Birthday was incredibly helpful. Our future plans build on this momentum and look to reach new international customers whether as cruise ship visitors into Aberdeen or prestige tourism visiting Royal Deeside. We are still understanding how best to exploit the opportunities provided by cruise ships. Concentrating on the larger ships seems to be most effective. These visit in the summer and early autumn and we already know we can generate over £1500 a day in additional revenue when they are in port.

The focus of our future plans is to improve the marketing of the Museum so that we no longer are Key to this is a complete redesign of our website so that it is structured around the needs of our customers. The contract for this has been let with a local marketing firm Fifth Ring with the aim that this is launched no later than Easter 2025. Whilst this should see a rise in visitors to the Museum, Café and Gardens, its primary purpose is to see an significant increase in the use of the Regimental Gallery and Dining Room. Our research tells us that there is a demand for the services we can offer and which we must exploit.

Docusyjn Envelope ID: E3B2DE2AQCC742224A￿3lFD29JcD925 THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST TRUSTEES ANNUAL REPORT CONTINUED YEAR ENDED 31 MARCH 2025 Statement of Trustees, Responsibilities The trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting practi￿>. 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 income and expenditure of the charity for that period. In preparing these financial statements. the trustees are required Select suitable accounting policies and then appty them cx>nsistently" Observe the methods and principles in the Charities SORP. Make judgement and accounting estimates that are reasonabk and prudent: state whether applicable accounting standards have been folk)wed. subject to any material departures discbsed and explained in the financial statements; and Prepare the finan￿al statements on the going concem basis unless rt is inappropriate to presume that the charity will continue in operation. 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 Charities and Trustee Investrnent (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity's trust d￿d. 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. Signed on behalf of the trustees Trustee 29 December 2025

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

TO THE TRUSTEES OF THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

Opinion

We have audited the financial statements of The Gordon Highlanders Museum and Regimental Trust (the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 a 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 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 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 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

financial 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.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

(CONTINUED) TO THE TRUSTEES OF THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trust , the trustees are responsible for the preparation of 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.

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 charity or to cease operations, or have no realistic alternative but to do so.

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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined about, 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:

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

(CONTINUED) TO THE TRUSTEES OF THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Docusyjn Envelope ID: E3B2DE2AQCC742224A￿3lFD29JcD925 THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST INDEPENDENT AUDrroR'S REPORT CONTINUED TO THE TRUSTEES OF THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST A further description of our reS￿nSibIlitieS for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This description foms part of our auditorfs report. Use of our report This report is made solely to the charitys trustees, as a body, in accordan￿ with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charitys trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullesl extenl pennitted by law, we do not a¢￿pt or assume responsibility to anyone other than the charity and the charitls trustees as a body. for our audit work. for this report. or for the opinions we have formed. Hall Morrice LLP Statutory Auditors Aberdeen. 29 December 2025 io

Total 2024 £ 60,386 11,569 45,995 117,950 - (10,944) (337,745) (348,689) (230,739) (68,000) 182,805 (115,934) - (115,934) 4,224,109 4,108,175
Unrestricted
Restricted
Endowment
Total		 funds
funds
funds
2025		 Notes
£
£
£		 2
132,974
1,000
-
133,974		 3
6,705
-
-
6,705		 4
45,566
-
-
45,566		 185,245
1,000
-
186,245		 5
-
-
-
-		 6
(10,619)
-
-
(10,619)		 7
(296,562)
(1,000)
-
(297,562)		 (307,181)
(1,000)
-
(308,181)
(121,936)
-
-
(121,936)		 (65,000)
-
(65,000)
(130,000)		 71,709
-
69,894
141,603		 8
(115,227)
-
4,894
(110,333)		 99,442
-
(99,442)
-		 (15,785)
-
(94,548)
(110,333)		 3,263,101
86,826
758,248
4,108,175		 3,247,316
86,826
663,700
3,997,842

Income and endowments from		 Donations and legacies Other trading activities Investments Total
Expenditure on:		 Costs of raising donations and legacies Investment management costs Expenditure on charitable activities Total Investment realised Net gains on investments Net (expenditure)/income Transfers Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward

Docusyjn Envelope ID: E3B2DE2AQCC742224A￿3lFD29JcD925 THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST BALANCE SHEEr AS AT 31 MARCH 2025 2025 2024 Notes Flxed assets Tangible assets Heritage assets Investments 10 2,164,962 173,014 1,479.521 3,817.497 2.175,103 173,014 1,608,541 3.956,658 11 12 Totsl Fixed Assets Current assets Stock 1.200 147,666 1.200 144,047 Debtors 13 Cash at bank and in hand 225,899 203,884 Creditors: Amounts falling due within one year Net Current Assets 206,451 4,023.948 26,106 3 997 842 182737 Total Assets less Current Liabilltles 4.139,395 31,220 4 108 175 Creditors: Amounts falling due out wlth one year Net assets 15 Funds of the Charity Endowment funds 17 663,71X) 86,826 3,247.316 758,248 86,826 3.263,101 Restricted income funds 18 Unrestricted income funds 19 Total Charity Funds 3,997,842 4.108,175 The financial statements have been prepared in accordan￿ with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland.. These financial statements were approved by the trustees and authorised for issue on 29 December 2025 and are signed on their behalf by: Trustee Trustee 12

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Reconciliation of Net Incoming Resources before
Transfers to Net Cash Inflow/(Outflow) from Operating
Activities
Net outgoing resources before transfers
Adjustments for:
Income from investments
Interest receivable
Unrealised gain on revaluation of investment assets
Depreciation
Changes in:
Stocks
Debtors
Creditors
Net cash outflow from operating activities
Cash Flows from Investing Activities
Payments to acquire tangible fixed assets
Acquisition of investments
Disposal of investments
Investment drawdown
Income from UK listed investments
Interest received
Net cash inflow from returns on investments and servicing of finance
Cash Flows from Financing Activities
Repayment of bank loans
Changes in cash and cash equivalents in reporting period
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Analysis of Cash and Cash Equivalents
Cash at bank
Cash in hand
Total cash and cash equivalents		 2025
£
(110,333)
(45,566)
-
(124,983)
10,140
-
(3,618)
(1,825)
(276,185)
-
(111,692)
235,695
130,000
44,465
1,101
299,569
(4,988)
18,396
58,637
77,033
2025
77,033
-
77,033		 2024
£
(115,934)
(45,995)
-
(182,576)
8,461
(1,200)
57,201
(7,224)
(287,267)
-
(894,388)
973,103
68,000
46,509
(514)
192,710
(4,262)
(98,819)
157,456
58,637
2024
58,637
-
58,637

Docusign Envelope ID: E3B2DE2A4cC74222-9Ac￿1FD29JcD925 THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Basis of accounting The Gordon Highlanders Museum and Regimental Trust is a charitable trust in the United Kin address of the principal Offi￿ is The Gordon Highlanders Museum, The nature of the charitls operations and principal clbl, ¢llV iv provide support to veterans and their dependents, and to promote the history of the Gordon Highlanders dom. The egimenta Regiment. The charity constitutes a public benefit entty as defined by FRS 102. The financial statements have been prepared in accordance with Accounts'ng and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing t￿￿1r accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 JU￿ 2014, the Charities and Trustee Investrnent (Scotland) Act 2005 and the Charrties Accounts (Scotland) Regulations 2006 (as amended). The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The significant accounb'ng policies have been consistently applied to all years presented unless otherwise ststed. The functional currency of the Trust is pound sterling. Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The tNstees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these finanaal statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concem. Judgements and key sources of estimation uncertainty In preparing the financial statements, management is required to make estimates and assumptions. which affect reported income, expenses, assets. liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the fonnation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstsnces. Actual results in the future could differ from such estimates. Areas of estimation uncertainty are residual values of fixed assets and their estimated useful lives and the market value of investments. Donations. grants and legacies Income from donations or grants are recognised when there is eV￿￿en￿ of entitlement to the gift. receipt is probable and its amount can be measured reliably- In the case of a grant, evidence of entttlement will usually exist when the formal offer of fijnding is communicated in writing to the charity unless there are ternis or ￿ndItionS that must be met before the charity has entitlement to the resources. In the case of a donation. entiuement usually arises immediately on its receipt unless there are terms or (x>nditions which must be met before the tharity is entitled to the reSour￿s. The re￿ipt in advance of a grant for expenditure Ihat must take pla￿ in a future accounting period is accounted for as defe￿ed income and is recognised as a liability until the accounting period in which the charity is allowed by the condilion to expend the resour￿. 14-

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

Receipt of a legacy is recognised when it is probable that it will be received. Receipt is normally probable when there has been grant of probate, the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy and any conditions attached to the legacy are either within the control of the charity or have been met.

Government grants

Government grants shall be recognised as income over the periods necessary to match them with related costs which they are intended to compensate, on a systematic basis.

Expenditure

All expenditure is included on an accruals basis. As VAT cannot be recovered, expenditure is reported including VAT.

Liabilities arise from legal or constructive obligations that commit the charity to expenditure. A liability and related expenditure is recognised when all of the following criteria are met: a present legal or constructive obligation exists at the year end as a result of a past event, it is more likely than not that a transfer of economic benefit, often cash, will be required in settlement and the amount of the obligation can be measured or estimated reliably.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for the beneficiaries. It includes both costs which can be allocated directly to those activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity. Costs are apportioned between activities based on time incurred.

Grants payable

The award of a grant is recognised as a liability when the criteria for a constructive obligation are met, payment is probable, it can be measured reliably, and there are no conditions attaching to its payment that limit its recognition.

Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The contributions payable are charged to the statement of financial activities.

Tax

The charity is an exempt charity within the meaning of the schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Tangible fixed assets

All tangible fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost less residual value of an asset over the useful economic life of that asset as follows:

Museum Equipment 10% Straight Line Fixtures & Fittings 10% Straight Line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

The trustees reviewed and revised their accounting estimates with regard to the useful lives and residual March 2025. This resulted in there being no depreciation charge for depreciation on freehold buildings in the period ended 31 March 2025. The trustees will continue to reassess their accounting estimates with regard to the useful lives and residual values of

Heritage assets

The charity holds heritage assets, which are tangible fixed assets of historical, artistic or scientific importance that are held to advance preservation and conservation objectives of the charity. Newly purchased heritage assets are capitalised and included at cost including any incidental expenses of acquisition. Donated assets are valued during the year of acquisition.

Where heritage assets were acquired in past accounting periods and not capitalised, it can be difficult or costly to attribute a cost or value to them. In such cases, these assets are excluded from the balance sheet if reliable cost information is not available and conventional valuation approaches lack sufficient reliability or significant costs are involved in the reconstruction or analysis of past accounting records or in valuation, which are onerous compared with the additional benefit derived by users of the accounts in assessing the tewardship of the assets.

therefore not depreciated. Heritage assets are reviewed at the reporting date for impairment. Impairment may be due to physical deterioration, breakage, new evidence giving rise to doubts as to its authenticity, or other factors.

Impairment of fixed assets

Assets not held at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of that asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Investment assets and income

Investments are included in the balance sheet at market value.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value of their purchase value if acquired subsequent to the first day of the financial period. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Investment income is stated on an accruals basis.

Stocks

Stocks are valued at the lower of cost and estimated selling price, after making due allowance for obsolete and slow moving items.

Debtors

Debtors, that are receivable within one year, are measured at their recoverable amounts and include amounts owed to the charity for the provision of goods and services or amounts paid in advance for goods and services that the charity will receive.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

Cash at bank

Cash at bank and in hand is held to meet the cash commitments as they fall due rather than for any investment purposes.

Liabilities

Liabilities are amounts due to creditors as a result of an obligation to transfer economic benefits, usually in the form of a cash payment, to a third party. A liability is recognised for the amount that the charity anticipates it will pay to settle the debt or the amount it has received as an advance payment for goods or services is must provide.

Fund accounting

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

The General Fund is used to make donations to the Gordon Highlanders Association Trust which supports old soldiers, widows and welfare cases. It also supports, to a lesser degree, The Royal Regiment of Scotland, the successor Regiment to The Gordon Highlanders. It is also used to support the Museum which represents the Regimental heritage and makes donations to other appropriate charities.

The Gordon Highlanders Museum Support Fund was a separate charity which on 11 April 2019 was removed as a separate charity from the Charity Register, with the approval of OSCR. Whilst it was a separate charity it was accounted for in the financial statements as a restricted fund. However, upon closure of the fund it was transferred to the unrestricted funds.

The RCW Luff Fund is a permanent endowment fund, was set up by Major RCW Luff CBE, the capital of which must be preserved. The revenue from this Fund, on the instructions of the donor, continues to be the General Fund.

The James and Erika Hutton Fund is an expendable endowment fund arising from a legacy left to the Trust, the capital of which has been invested for the long term but is expendable at the discretion of the trustees. The revenue from this Fund, on the instructions of the donor, can be spent for any purpose in furtherance of the charitable objects.

Transfers between funds are approved by the Trustees and are permitted by the Trust Deed.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

2 Donations and legacies


Donations
Legacies
Grants receivable
Luff Foundation
Grants from Friends of Gordon Highlanders
Museum
 Unrestricted
funds
£
87,974
10,000
35,000

-
132,974		 Restricted
funds
£
-
-
-
1,000
1,000		 Total
2025
£
87,974
10,000

35,000
1,000
133,974		 Total
2024
£
23,611
-
35,000

1,775
60,386

For the year ended 31 March 2024, income from donations and legacies that related to restricted funds was £1,775 and unrestricted funds was £58,611.

3 Other trading activities


Royalties
Research
Other
 Unrestricted
funds
£
5,000
-
1,705
6,705		 Total
2025
£
5,000
-
1,705
6,705		 Total
2024
£
5,000
25
6,544
11,569

For the year ended 31 March 2024, all other trading activities related to unrestricted funds.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

4 Investment income


Income from UK listed investments
Other interest receivable
 Unrestricted
funds
£
44,465
1,101
45,566		 Restricted
funds
£
-
-
-		 Total
2025
£
44,465
1,101
45,566		 Total
2024
£
46,509
(514)
45,995

For the year ended 31 March 2024, investment income that related to restricted funds was £24,308 and unrestricted funds was £21,687.

5 Costs of raising donations and legacies


Event costs		 Unrestricted
funds
£
-		 Total
2025
£
-		 Total
2024
£
-

For the year ended 31 March 2024, all costs of raising donations and legacies related to unrestricted funds.

6 Investment management costs


Investment management fees		 Unrestricted
funds
£
10,619		 Restricted
funds
£
-		 Total
2025
£
10,619		 Total
2024
£
10,944

For the year ended 31 March 2024, investment management costs that related to restricted funds was £4,871 and unrestricted funds was £6,073.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

7 Costs of charitable activities
















 Direct costs
Staff Costs
Museum Expenses
Education Expenses
Establishment Expenses
Subscriptions
Sundries
Donations
Loan Interest
Depreciation
Support costs
Governance Costs
Audit Fees
Costs of Trustee Meetings
Total		 Unrestricted
funds
£
158,790
7,904
-
33,442
834
133
75,000
849
10,140
287,092
124
9,000
346
9,470
296,562		 Restricted
funds
£
-
-
1,000
-
-
-
-
-
-
1,000
-
-
-
-
1,000		 Total
2025
£
158,790
7,904
1,000
33,442
834
133
75,000
849
10,140
288,092
124
9,000
346
9,470
297,562		 Total
2024
£
182,074
14,803
-
31,315
504
216
90,000
1,575
8,461
328,948
80
8,120
597
8,797
337,745

For the year ended 31 March 2024, costs of charitable activities that related to restricted funds was £775 and unrestricted funds was £336,970.

8 Net income resources


This is stated after charging
Depreciation
Auditors' remuneration:
- audit of the financial statements
- accountancy fees		 2025
£
10,140
9,000
124		 2024
£
8,461
8,120
80

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

9 Staff costs and emoluments


Total staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs
 2025
£
142,041
11,529
5,220
158,790		 2024
£
161,045
16,015
5,014
182,074

The total remuneration paid to Trustees in the current period and in the previous year was £nil. No trustee expenditure has been paid.

Particulars of employees:

The average number of employees during the period, calculated on the basis of full-time equivalents, was as follows:


Number of management staff		 2025
No.
6		 2024
No.
6

No employees received more than £60,000 in employee benefits in the period.

10

Tangible fixed assets

Tangible fixed assets
Cost
At 1 April 2024
Additions
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
At 31 March 2025
Carrying Amount
At 31 March 2025
At 31 March 2024		 Heritable
Property
£
2,124,167
-		 Museum
equipment
£
44,794
-		 Fixtures and
fittings
£
141,212
-		 Total
£
2,310,173
-
2,124,167
-
-
-
2,124,167
2,124,167		 44,794
43,194
400
43,594
1,200
1,600		 141,212
91,876
9,741
101,617
39,595
49,336		 2,310,173
135,070
10,141
145,211
2,164,962
2,175,103

In 2025 and 2024, all tangible assets related to unrestricted funds.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

11 Heritage assets


Cost
At 1 April 2024
Additions

At 31 March 2025

Carrying amount
at 31 March 2025

At 31 March 2024

Summary analysis of heritage
Purchases

Museum pieces		 asset transactions
2021
2022
£
£
-
10,000		 2023
£
-		 2024
£

-		 Heritage
Assets
£
173,014
-
173,014
173,014
173,014
2025
£
-

Heritage assets relate to an item purchased for display within the museum.

No valuation was obtained in respect to heritage assets due to cost of valuation and the difficulty in measuring at open market value. Assets are measured at historical cost and there is no evidence that the assets have been impaired. More information on the treatment of Heritage assets can be found at Note 1.

In 2025 and 2024, all heritage assets related to unrestricted funds.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

12 Investments


Movement in market value
Market value at 1 April 2024
Acquisitions at cost
Disposals at opening book value
Investment withdrawal
Net gains on revaluations
Market value at 31 March 2025

Historical cost at 31 March 2025

Analysis of investments 31 March 2025

Listed Investments
UK Quoted shares
Other investments
UK cash held as part of portfolio
 Unrestricted
funds
£
874,602
68,353
(135,618)
(65,000)
73,484
815,821
727,913
between funds
Unrestricted
funds
£
801,308
14,513
815,821		 Endowment
funds
£
733,939
43,339
(100,077)
(65,000)
51,499
663,700
628,823
Endowment
funds
£
654,239
9,461
663,700		 2025
£
1,608,541
111,692
(235,695)
(130,000)
124,983
1,479,521
1,356,738
Total
Funds
2025
£
1,455,547
23,974
1,479,521		 2024
£
1,572,680
894,388
(973,103)
(68,000)
182,576
1,608,541
1,478,940
Total
Funds
2024
£
1,585,126
23,415
1,608,541

Investments are held primarily for an investment return.

At 31 March 2024, investments that related to endowment funds was £733,939 and unrestricted funds was £874,602.

13 Debtors


Amounts owed by St Luke's Limited
Other debtors
Prepayments
 2025
£
137,666
10,000
-
147,666		 2024
£
137,666
5,655
726
144,047

per annum. The loan is repayable on demand.

In 2025 and 2024, all debtors related to unrestricted funds.

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

14 Creditors: Amounts falling due within one year

Bank loans
Other creditors
Accruals		 2025
£
5,115
-
14,333
19,448		 2024
£
4,989

7,500
8,658
21,147

In 2025 and 2024, all creditors related to unrestricted funds.

15 Creditors


Bank Loans		 2025
£
26,106		 2024
£
31,220

16 Pensions

The charity operates a defined contribution pension scheme. Contributions totalling £11,180 (2024 - £12,449) were paid in the period and there was outstanding contributions included within creditors at year end £893 (2024 - £883). Defined contribution pension scheme costs are paid from unrestricted funds.

Balance at
Balance at		 1 April
Investment
Investment
31 March		 2024
Income
Expenditure
withdrawn
Gain/Loss
Transfers
2025
£
£
£
£
£
£
£		 James & Erika Hutton Fund
758,248
-
-
(65,000)
69,894
(99,442)
663,700
758,248
-
-
(65,000)
69,894
(99,442)
663,700
James & Erika Hutton Fund		 The James and Erika Hutton Fund is an expendable endowment fund arising from a legacy left to the Trust, the capital of which has been invested for the long term but is expendable at the discretion of the trustees. The revenue from this Fund, on the instructions of the donor, can be spent for any purpose in furtherance of the charitable objects. Restricted income funds Balance at
Balance at		 1 April
31 March		 2024
Income
Expenditure
Transfers
2025
£
£
£
£
£		 External Building Repairs
73,435
-
-
-
73,435		 Museums Galleries Scotland Carbon Footprint
12,391
-
-
-
12,391		 Schools Transport Grant
1,000
1,000
(1,000)
-
1,000
86,826
1,000
(1,000)
-
86,826		 External Building Repairs The external building repairs have been funded by a grant from the City of Aberdeen Common Good Fund and can only be used for this purpose. The repairs are being undertaken by Graeme W Cheyne Building Contractors and are being supervised by heritage architect

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

18 Restricted income funds

Museums Galleries Scotland Carbon Footprint

Museums Galleries Scotland provided a grant to assist in the costs of the installation of specialist low energy

Schools Transport Grant

Friends of Gordon Highlanders Museum provided a grant to assist with the transport costs of school visits to the museum.

19 Unrestricted income funds

General Fund Balance at
1 April
2024
£
3,263,101		 Income
£
185,245		 Expenditure
£
(307,181)		 Investments
£
6,709		 Transfers
£
99,442		 Balance at
31 March
2025
£
3,247,316

20 Analysis of net assets between funds


Restricted income funds:
Endowment funds
Restricted income funds
Unrestricted income funds
Total funds		 Tangible
Fixed and
Heritage
assets
£
-
-
2,337,976
2,337,976		 Investments
£
663,700
-
815,821
1,479,521		 Net current
assets
£
-
86,826
119,625
206,451		 Long
Term
liabilities
£
-
-
(26,106)
(26,106)		 Total
£
663,700
86,826
3,247,316
3,997,842

21 Related party transactions

the premises.

A loan from the 137,666 (2024 - £137,666) was in place at the start of the year and had no repayment terms. Interest received on this loan during the year amounted to £1,101 (2024 - £1,202).

A donation of £75,000 (2024 £90,000

At 31 March 2025

4 - £137,666).

THE GORDON HIGHLANDERS MUSEUM AND REGIMENTAL TRUST

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

22 Capital commitments

There were capital commitments of £nil at 31 March 2025 (2024 - £nil).

23 Controlling party

The Trustees as a body control the entity.

24 Analysis of changes in net debt


Cash in bank and in hand		 Balance at
1 April 2024
£
58,637		 Cash
Flow
£
18,396		 Balance at
31 March 2025
£
77,033