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2026-03-31-accounts

Charity registration number SC008959 (Scotland) Company registration number SP0735RS (Scotland) Mutuals Public Register number 735RS

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

The Scottish Garden City Housing Society Limited (Society) is a Registered Friendly Society and a Scottish Charity. The rules governing the Society were rewritten, approved, and registered with the Financial Conduct Authority on 9th November 2021. The operating name, Veterans Housing Scotland (VHS) was adopted in 2021 and is the name the charity uses during its operation.

Patron Her Royal Highness The Princess Royal (December 2024)
President The Duke of Hamilton and Brandon
Trustees Group Captain R G Kemp CBE QVRM AE DL
Mr G W Michie
Mr P Henry
Major D J Hamilton
Major R J W B Proctor MBE OStJ FSA SCOT
Lieutenant Commander G K Nicolson MBE
MCGI RN
Wing Commander A M Moodie OBE QVRM
AE RGN RM
Group Captain D C Coombes OBE
Mr A G Dzierzek
Lady Anne Dalton
Chief Executive Mr K Gray MM
Charity number SC008959
Company number SP0735RS
Mutuals Public Register number 735RS
Registered office 3 Redheughs Rigg
Edinburgh
EH12 9DQ
Tel No 0131 557 1188
Website: www.vhscot.org.uk
Auditor Saffery LLP
9 Haymarket Square
Edinburgh
EH3 8RY
Bankers Royal Bank of Scotland plc
32 St Andrew Square
Edinburgh
EH2 2YB
Solicitors Brodies LLP
58 Morrison Street
Edinburgh
EH3 8BP

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Investment Managers

RBC Brewin Dolphin 6th Floor, Atria One 144 Morrison Street Edinburgh EH3 8BR

Building Consultants

Hardies Property and Construction Consultants 12 Atholl Crescent Edinburgh EH3 8HA

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Statement of changes in equity 13
Notes to the financial statements 14 - 31

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2026

The Trustees submit their annual report and audited financial statements for the year ended 31 March 2026. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) FRS102 “Accounting and Reporting by Charities” (issued 2019) in preparing the annual report and financial statements of the Charity.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (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)" (effective 1 January 2019).

Trustees retiral

No trustees retired from the Charity during the financial year and up to the date of signing the annual report and financial statements.

Objectives and activities

Veterans Housing Scotland will promote, advance and further the following charitable purposes:- The prevention or relief of :-

(a) such persons who have previously served in the UK Armed Forces and who while serving or after completion of service have been or become disabled (veterans); and

(b) dependents of veterans as the charity trustees may determine from time to time, in need by reason of age, ill health, disability, financial hardship or other disadvantage by:-

(i) the provision, construction, improvement and management of affordable rented homes;

(ii) the provision of wellbeing support; and

(iii) such other means as the charity trustees may from time to time determine

"dependents" means any person:-

(i) to whom a veteran is married;

(ii) who is the civil partner of the veteran; or

(iii) with whom the veteran is living as husband and wife or, where the veteran and other person are of the same sex, in an equivalent relationship.

Achievements and performance

The Trustees are pleased to present the achievements and performance of the charity for the year ended 31 March 2026. The report focuses on the achievements, performance, and plans for People, Properties, Partnerships, and Promotion.

The charity provides comfortable, affordable, and secure housing for disabled veterans and their dependents across Scotland. It also delivers wellbeing and tenancy sustainment, ensuring beneficiaries lead better lives with brighter futures as part of the VHS family.

Despite national and international challenges, we have made progress in serving our beneficiaries, enhancing our properties, forging partnerships, and raising awareness about our work.

We thank our beneficiaries, staff, trustees, partners, and supporters for their dedication and support. Together, we will continue to build a brighter future for disabled veterans and their families, ensuring they have a place to call home and the support they need to thrive

The financial year to 31 March 2026 was an important year for Veterans Housing Scotland. It marked our 110th anniversary and gave us the opportunity to reflect on our long history of providing homes for disabled veterans and their families.

Our work remains guided by five clear areas: People, Properties, Partnerships, Promotions and Funding. These areas help us focus our resources where they matter most, namely safe homes, practical support and better outcomes for the people we serve.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

People

People remain at the heart of Veterans Housing Scotland.

Our Tenancy Sustainment Service continued to provide direct support to beneficiaries across Scotland. Our Visiting Officers completed 510 home visits during the year and made 341 referrals to external support organisations, including SSAFA, Citizens Advice Bureau, DMWS and Glasgow’s Helping Heroes.

This support helps beneficiaries manage issues before they become more serious. It also allows VHS to remain close to the people we support, understand their needs and respond quickly when circumstances change.

Our Income Maximisation Service, also continued to develop. This work helps beneficiaries navigate the benefits system, update housing costs and manage household finances. It also helps prevent rent arrears from becoming unmanageable.

The value of this support can be seen in individual cases.

One veteran faced homelessness after being given two weeks to leave his rented home. VHS was able to provide him and his family with a secure home in Montrose.

A former Army Nurse, had been sleeping in his car before VHS helped him into a safe home within one of our communities. He described the day he moved in as one of the best days of his life.

A single mother who had been sleeping on a sofa bed, secured a safe home through our Nomination Rights scheme in West Dunbartonshire. This gave her children the stability and space they needed.

These examples show why our work matters. A home is not only a building. It gives people safety, dignity and a base from which to rebuild.

Properties

VHS owns and manages 625 properties across Scotland. Many were built during the interwar years or in the 1950s. They have served generations of veterans well, but they now require major investment to meet modern standards.

During 2025/26, we invested £2.2m in essential upgrades and completed over 1800 repairs and maintenance jobs on our properties costing almost £1.4m.

To support better long-term planning, we have completed a national programme of property condition surveys. These surveys will support a fully costed ten-year asset investment plan.

We also continued to review the performance of our estate. During the year, we disposed of 7 properties, generating £814k for reinvestment. This allows VHS to focus resources on homes that are sustainable, affordable and right for future need.

Partnerships

Partnerships are central to how we extend our reach and strengthen support for beneficiaries.

During the year, VHS became formal members of the Scottish Veterans Wellbeing Alliance and Unforgotten Forces. These partnerships help us connect beneficiaries with the right support at the right time.

Our partnership with the Defence Medical Welfare Service also continued to play an important role. Backed by funding from the Armed Forces Covenant Fund Trust, this service supports beneficiaries with complex clinical and welfare needs.

We also expanded our Nomination Rights scheme. Agreements with Midlothian Council, West Dunbartonshire Council and Hanover Scotland secured homes for disabled veterans, with partner organisations maintaining the properties and VHS providing wider tenancy and wellbeing support.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

This model allows VHS to support more veterans without carrying the full cost of ownership and maintenance.

Our work with the wider Armed Forces community was also recognised through the Defence Employer Recognition Scheme Gold Award. This award reflects our ongoing support for veterans, reservists and the Armed Forces community.

Promotions

Raising awareness of VHS remains essential. It helps us attract support, build partnerships and ensure the voices of our beneficiaries are heard.

Our 110th anniversary gave us a strong platform to tell the VHS story. We held civic receptions in Perth, Glasgow, Dunfermline and Edinburgh, bringing together beneficiaries, partners, supporters and civic leaders.

The anniversary was formally marked at a reception in the Great Hall at Edinburgh Castle, attended by our Patron, HRH The Princess Royal. Her Royal Highness met beneficiaries, staff and supporters, and her support brought significant recognition to the charity.

We were also delighted to once again host our Patron during a visit to Earl Haig Gardens in January during which HRH The Princess Royal planted a tree to commemorate her visit and met with beneficiaries, trustees, staff and Leonard Harper Gow, the great-grandson of our founder Lord Salvesen. This was a powerful link between our founding history and the work we continue to deliver today.

Our digital reach also grew, with more website visitors during the year. We strengthened our public profile further through the recruitment of Leonard Harper-Gow as an ambassador.

Funding

VHS continues to charge low rents, with an average rent of £316 per month. This is central to our purpose, but it also creates a financial challenge.

Rental income alone cannot meet the rising cost of maintaining and improving older homes. Many of our properties need major investment, and construction, compliance and repair costs continue to rise.

For this reason, funding has become a core part of our long-term strategy.

We launched a ten-year plan to raise £2 million per year. This work is now being taken forward with our new Head of Fundraising with a clear focus on charitable trusts and foundations.

During the year, VHS secured significant funds from the Armed Forces Covenant Fund Trust. We thank the trust for their outstanding support which has enabled us to refurbish properties through their capital grants

Looking Ahead

VHS enters its next century with a clear purpose.

We will continue to provide safe, warm and affordable homes for disabled veterans and their families. We will invest in our properties, strengthen our services and build the partnerships needed to meet growing demand.

Our founding principle remains unchanged. Disabled veterans should not struggle to secure a safe and affordable home.

That principle guided VHS in 1915. It continues to guide us today.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Financial review

Net Income and Expenditure for the year, as at 31 March 2026, shows a surplus before transfers of £899,028 (2025: surplus £2,150,354). There was a surplus of £617,116 (2025: surplus £399,661) on restricted funds and there was a surplus of £281,912 (2025: surplus £1,750,693) on unrestricted funds.

Investments

The appointed investment managers are RBC Brewin Dolphin. The Trustees have previously given the investment managers discretion to manage the portfolio with an agreed risk profile classified as “Diversified Risk”.

The investment managers provide a written report every quarter and meet with the Finance Sub-committee regularly to review the portfolio.

An investment register is held with the charity and is updated and reconciled on a monthly basis. The value of the investment portfolio as at 31 March 2026 was £2,759,803 (2025: £2,575,758). The Finance Subcommittee are satisfied with the figures achieved by the Investment Managers.

Reserves Policy

The Charity’s Reserve Policy is that the Charity aims to hold enough reserves to function over 2 years. The Trustees have reviewed this years reserves, and recognise that due to increased costs throughout the year, the Charity’s free reserves are below that stated in the policy. After review, the Charity concludes that it has sufficient reserves to meet demands for property provision and maintenance as required by the Society’s Rules and will work back up to two years reserves levels. As at March 2026, the charity held £22,725,670 of reserves, of which £1,545,405 is restricted and £3,262,941 is unrestricted and £17,917,314 designated.

Staff Pensions

The Charity contributes to individual employee pension schemes. The amount charged to the statement of financial activities represents the contributions to the scheme in respect of the accounting period.

Remuneration of key management

The Charity’s key management was carried out by a Chief Executive, and Deputy Chief Executive. The Chief Executive works with the Main Board to identify and implement the strategic aims of the Charity. The senior management team is responsible for managing the day-to-day operation of the Charity. The arrangements for setting pay and remuneration for these key personnel are benchmarked against third sector salaries and other agencies that operate in the same sector.

Bribery Statement

This is a statement by the Board of the Scottish Garden City Housing Society Limited regarding the Charity’s commitment to meet its responsibilities under the provisions of the Bribery Act 2010 (which came into force on 1 July 2011).

“The Board and Executive Team will not tolerate bribery or corruption from Board members, staff, or anyone working on our behalf, including contractors. We are committed to carrying out our business transparently and fairly, and therefore, we operate a zero-tolerance policy towards bribery.

As an organisation with charitable status, The Scottish Garden City Housing Society Limited is committed to eliminating corruption and bribery and achieving the highest governance standards in all of its activities.”

Structure, governance and management

The Trustees who served during the year and up to the date of signature of the financial statements were:

Group Captain R G Kemp CBE QVRM AE DL Mr G W Michie Mr P Henry Major D J Hamilton Major R J W B Proctor MBE OStJ FSA SCOT Lieutenant Commander G K Nicolson MBE MCGI RN Wing Commander A M Moodie OBE QVRM AE RGN RM Group Captain D C Coombes OBE Mr A G Dzierzek Lady Anne Dalton

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Appointment and induction of Trustees

The Board of Trustees considers the appointment of new Trustees throughout the year to maintain a diverse profile and ensure that different areas of expertise are represented. The maximum number of Trustees shall be twelve, and the minimum number of Trustees shall be six.

Trustees are appointed for three years, and after that, they are eligible for re-appointment for a further three years and only in an exceptional case may Trustees complete a final three-year term.

New Trustees are invited to attend a half-day induction to become familiarised with the work of the Charity. Areas covered include:

Decision making

Under the Rules of the Society, the Charity business is managed by a Board of Trustees, which meets a minimum of three times a year and may exercise all of the organisation's powers.

Risk management

The Charity has a Risk Register that considers all risks the Charity may be exposed to, which is reviewed regularly.

The Trustees consider the adequacy of internal control procedures and are taking steps to ensure that systems appropriate to the size and activities of the organisation are regularly reviewed, adjusted where necessary and then maintained. The appointment of our outsourced finance function to JSCA Ltd, our auditors, Saffery LLP and our legal representatives, Brodies LLP, demonstrate the Trustees’ commitment to conducting regular reviews to ensure best practices are adopted by an evolving and forward-thinking Charity.

Auditor

A resolution proposing that Saffery LLP be reappointed as auditor was put to the members at the Annual General meeting in 2025.

The Trustees' report was approved by the Board of Trustees.

..............................

Group Captain R G Kemp CBE QVRM AE DL Chairman Date: .............................................13 August 2026

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2026

The Trustees are responsible for preparing the Trustees' report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (the United Kingdom Generally Accepted Accounting Practice).

Trustees are required to prepare financial statements for each financial year, giving a true and fair view of the charity's state of affairs and the incoming resources and application of resources, including the income and expenditure of the Charity for that year. In preparing those 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 Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Co-operative and Community Benefit Societies Act 2014.

They are also responsible for safeguarding the Charity's assets and taking reasonable steps to prevent and detect fraud and other irregularities.

Statement of disclosure of information to the auditor

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included in the charity website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

Opinion

We have audited the financial statements of The Scottish Garden City Housing Ltd (the ‘society’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the statement of changes in equity and 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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the society'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 society with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Board is responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on 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.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

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 Co-operative and Community Benefit Societies Act 2014 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of the Board

As explained more fully in the Trustees' Responsibilities Statement set out on page 6, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the society’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 Board either intends to liquidate the society 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 the Charities and Trustee Investment (Scotland) Act 2005 and under the Co-operative and Community Benefit Societies Act 2014 and report in accordance with regulations the Act made under those Acts.

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.

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 specific procedures for the engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable society’s financial statements to material misstatement and how fraud might occur, including through discussions with the Board, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the society by discussions with the Board and updating our understanding of the sector in which the society operates.

Laws and regulations of direct significance in the context of the society include Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and guidance issued by the Office of the Scottish Charity Regulator.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the society's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the society’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available 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 society in accordance with Section 87 of the Co-operative and Community Benefit Societies Act 2014, and to the Society’s trustees, 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 society those matters we are required to state to it 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 society for our audit work, for this report, or for the opinions we have formed.

Saffery LLP Statutory Auditors

Date:.........................19 August 2026

9 Haymarket Square Edinburgh EH3 8RY

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2026

Unrestricted
funds
2026
Notes
£
Income and endowments from:
Donations and legacies
3
8,022
Charitable activities
4
2,419,884
Investments
5
100,512
Other income
24
575,278
Total income
3,103,696
Expenditure on:
Raising funds
6
17,479
Charitable activities
7
3,005,993
Total expenditure
3,023,472
Net gains/(losses) on
investments
11
201,688
Net incoming resources
before transfers
281,912
Gross transfers between
funds
17,19,
20
752,366
Other gains or losses
-
Net movement in funds
1,034,278
Fund balances at 1 April 2025
20,145,987
Fund balances at 31 March
2026
21,180,265		 Restricted
funds
2026
£
-
1,021,381
-
91,516
1,112,897
-
495,781
495,781
-
617,116
(752,366)
-
(135,250)
1,680,655
1,545,405		 Total Unrestricted
funds
2026
2025
£
£
8,022
3,423
3,441,265
2,359,412
100,512
103,282
666,794
1,481,494
4,216,593
3,947,611
17,479
16,779
3,501,774
2,196,056
3,519,253
2,212,835
201,688
15,917
899,028
1,750,693
-
523,530
-
(1)
899,028
2,274,222
21,826,642
17,871,765
22,725,670
20,145,987		 Restricted
funds
2025
£
10,000
867,134
-
39,696
916,830
-
517,169
517,169
-
399,661
(523,530)
-
(123,869)
1,804,524
1,680,655		 Total
2025
£
13,423
3,226,546
103,282
1,521,190
4,864,441
16,779
2,713,225
2,730,004
15,917
2,150,354
-
(1)
2,150,353
19,676,289
21,826,642
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
24
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net gains/(losses) on
investments
11
Net incoming resources
before transfers
Gross transfers between
funds
17,19,
20
Other gains or losses
Net movement in funds
Fund balances at 1 April 2025
Fund balances at 31 March
2026

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

BALANCE SHEET

AS AT 31 MARCH 2026

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds
Designated funds
20
General unrestricted funds
19
Share capital		 2026
£
£
17,697,778
2,759,803
20,457,581
411,073
2,140,499
2,551,572
(283,483)
2,268,089
22,725,670
1,545,405
17,917,314
3,262,941
10
21,180,265
22,725,670		 2026
£
£
17,697,778
2,759,803
20,457,581
411,073
2,140,499
2,551,572
(283,483)
2,268,089
22,725,670
1,545,405
17,917,314
3,262,941
10
21,180,265
22,725,670		 2025
£
£
15,912,464
2,575,758
18,488,222
285,382
3,238,620
3,524,002
(185,582)
3,338,420
21,826,642
1,680,655
16,337,098
3,808,879
10
20,145,987
21,826,642		 2025
£
£
15,912,464
2,575,758
18,488,222
285,382
3,238,620
3,524,002
(185,582)
3,338,420
21,826,642
1,680,655
16,337,098
3,808,879
10
20,145,987
21,826,642
18,488,222
3,338,420
21,826,642
1,680,655
20,145,987
21,826,642
The notes on pages 14 to 31 form part of these financial statements.
The financial statements were approved by the Trustees on .........................
..............................
..............................
............................
Group Captain R G Kemp CBE QVRM AE DL
Mr G W Michie
Mr K Gray MM
Trustee
Trustee
Secretary
Company registration number SP0735RS
Charity registration number SC008959
Mutuals Public Register number 735RS
13 August 2026

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026

2026 2025
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 25 201,970 653,189
Investing activities
Purchase of tangible fixed assets (2,232,243) (1,013,977)
Proceeds from disposal of tangible fixed
assets 814,000 1,613,550
Purchase of investments (503,072) (1,299,467)
Proceeds from disposal of investments 520,712 1,325,645
Investment income received 100,512 103,282
Net cash (used in)/generated from
investing activities (1,300,091) 729,033
Financing activities
Proceeds from issue of shares - 1
Redemption of shares - (2)
Net cash used in financing activities - (1)
Net (decrease)/increase in cash and cash
equivalents (1,098,121) 1,382,221
Cash and cash equivalents at beginning of year 3,238,620 1,856,399
Cash and cash equivalents at end of year 2,140,499 3,238,620

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026

Notes
Balance at 1 April 2024
Year ended 31 March 2025:
Net income/(expenditure)
Issue of share capital
Redemption of shares
Transfers
Balance at 31 March 2025
17,19,20
Year ended 31 March 2026:
Net income/(expenditure) before transfers
Transfers
Issue of share capital
Balance at 31 March 2026
17,19,20		 Share
capital
Unrestricted
Designated
£
£
£
11
3,596,081
14,275,673
-
570,519
1,180,174
1
-
-
(2)
-
-
-
(357,721)
881,251
10
3,808,879
16,337,098
-
115,393
166,519
-
(661,331)
1,413,697
-
-
-
10
3,262,941
17,917,314		 Restricted
£
1,804,524
399,661
-
-
(523,530)
1,680,655
617,116
(752,366)
-
1,545,405		 Total
£
19,676,289
2,150,354
1
(2)
-
21,826,642
899,028
-
-
22,725,670

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

Charity information

The Scottish Garden City Housing Society Limited is a Registered Society registered under the Co-Operative and Community Benefit Societies Act 2014 and Registered Charity. Charity number SC008959.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Constitution, the Co-operative and Community Benefit Societies Act 2014, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

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

1.3 Charitable funds

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

Designated funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. These funds have been designated to specific purposes by the Trustees.

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

1.4 Income

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

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

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

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Costs are allocated to restricted and unrestricted funds according to the use of resources expended.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Property 70 years to residual value (Note: WW1 and WW2 have their
initial cost fully depreciated to residual value)
Roof, Render and CWI 70 years
Doors and Windows 30 years
Kitchens and Bathrooms 20 years
Office equipment 3 years

The pre and post 2008 properties transferred from The Scottish Garden City Association were fair valued at the date of transfer in 2021. The fair value was treated as the deemed cost of the properties transferred and as such are not required to be subsequently revalued. In the absence of detailed records of the original cost of individual properties, the cost of property disposed of is arrived at based on average cost.

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

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies

(Continued)

1.10 Financial instruments

The Charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially measured at transition value and subsequently measured at their settlement value.

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

2 Critical accounting estimates and judgements

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

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Bad debt provision. This estimate is based on management's knowledge of tenants and historic recoverability of rental income.

Depreciation rates used for fixed assets. These estimates are based on management's assessment of useful economic life.

Residual value of property. This estimate is based on management's assessment of residual value after 70 years.

3 Income from donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2026 2026 2026 2025 2025 2025
£ £ £ £ £ £
Donations and gifts 8,022 - 8,022 3,423 10,000 13,423

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2026
2026
£
£
Rental income
2,419,884
-
Performance related
grants
-
1,021,381
2,419,884
1,021,381		 Total
Unrestricted
Restricted
funds
funds
2026
2025
2025
£
£
£
2,419,884
2,359,412
-
1,021,381
-
867,134
3,441,265
2,359,412
867,134		 Total
2025
£
2,359,412
867,134
3,226,546

Performance related grants analysis

The Armed Forces Covenant Fund Trust
OVA Major Capital Grant
Defence Garden Scheme
The Armed Forces Covenant Fund Trust - Second Tranche
RP Milroy Trust
Home Starter Kit Grant
Veterans Foundation		 2026
£
126,989
565,510
-
290,882
5,000
8,000
25,000
1,021,381		 2025
£
435,392
428,242
3,500
-
-
-
-
867,134

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

(Continued)

Performance related grants

The grants from The Armed Forces Covenant Fund Trust are for reducing veterans homelessness. The OVA Major Capital Grant is for property improvements and renovation. The Defence Garden Scheme for communal garden work. The RP Milroy Trust Grant is for providing low cost housing and support in East Lothian. The Home Starter Kit Grant is from B&Q for Home Starter Kits.

The grant from The Veterans' Foundation is for the salary costs of a new income Maximisation Officer post. There is a contingent asset of £50,000 (2025: £nil) in relation to the grant from The Veterans Foundation. There is also a contingent liability in relation to this grant as amounts totalling £69,920 (2025: £nil) will be paid as salary to the Maximisation Officer.

There is a contingent asset of £290,882 (2025: £126,989) in relation to the grants from The Armed Forces Covenant Trust as these grants are based on performance. There is also a contingent liability in relation to these grants as amounts totalling £107,774 are due to the Defence Medical Welfare and Glasgow’s Helping Heroes (2025: £29,018 to Defence Medical Welfare) contingent on receipt of grants from The Armed Forces Covenant Fund Trust.

There is a contingent asset of £60,065 (2025: £569,306) in relation to the OVA Major Capital Grant as this grant is based on performance.

5 Income from investments

Unrestricted Unrestricted
funds funds
2026 2025
£ £
Other income 100,512 103,282

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

6 Raising funds
**Unrestricted ** Unrestricted
funds funds
2026 2025
£ £
Investment management 17,479 16,779
17,479 16,779
7 Charitable activities
in relation to Housing
Staff costs
Depreciation and impairment
Charitable activities
Support and consultancy
HR
Training
Central office
Insurance
Legal
Finance
Grant funding of activities (see note 8)
Support costs
Governance costs
Analysis by fund
Unrestricted funds
Restricted funds		 2026
£
547,120
299,726
2,261,669
1,187
1,935
4,670
82,600
9,710
2,093
103,179
3,313,889
136,682
48,535
2,668
3,501,774
3,005,993
495,781
3,501,774		 2025
£
445,987
259,950
1,638,708
1,077
3,483
5,638
54,063
10,120
22,309
92,718
2,534,053
99,180
77,511
2,481
2,713,225
2,196,056
517,169
2,713,225

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

8 Grants payable
Grants Grants
payable payable
2026 2025
£ £
Grants to institutions:
The Defence Medical Welfare Service 136,682 99,180
9 Net movement in funds 2026 2025
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 23,730 20,430
Depreciation of owned tangible fixed assets 299,726 259,950
Gain on disposal of tangible fixed assets (666,794) (1,453,697)
10 Employees
The average monthly number of employees during the year was:
2026 2025
Number Number
14 12
Employment costs 2026 2025
£ £
Wages and salaries 468,040 386,689
Social security costs 49,533 33,745
Other pension costs 29,547 25,553
547,120 445,987
After the year end, staff pension contributions of £3,328 were outstanding (2025: £3,087).
The number of employees whose annual remuneration was more than £60,000
is as follows:
2026 2025
Number Number
£70,000 - £80,000 1 1

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

11 Net gains on investments

**Unrestricted ** Unrestricted
funds funds
2026 2025
£ £
Realised and unrealised gains on investments 201,688 15,917
Property Post
Total		 2008 £
£		 1,471,543 17,168,637 26,255
2,232,243		 (121,308)
(156,221)		 1,376,490 19,244,659 85,124
1,256,173		 19,007
299,726		 (7,826)
(9,018)		 96,305
1,546,881		 1,280,185 17,697,778 1,386,419 15,912,464
Property Pre 2008 £ 5,757,786 63,778 - 5,821,564 223,957 77,297 - 301,254 5,520,310 5,533,829
Houses for Heroes £ 4,768,531 - - 4,768,531 695,571 61,969 - 757,540 4,010,991 4,072,960
Office & IT Equipment £ 26,463 7,691 - 34,154 23,238 5,017 - 28,255 5,899 3,225
WW2 £ 3,989,084 1,334,870 (34,913) 5,289,041 173,437 95,749 (1,192) 267,994 5,021,047 3,815,647
WW1 £ 1,155,230 799,649 - 1,954,879 54,846 40,687 - 95,533 1,859,346 1,100,384
Tangible fixed assets Cost At 1 April 2025 Additions Disposals At 31 March 2026 Depreciation and impairment At 1 April 2025 Depreciation charged in the year Eliminated in respect of disposals At 31 March 2026 Carrying amount At 31 March 2026 At 31 March 2025
12

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

12 Tangible fixed assets

(Continued)

Included in WW2 are 16 leasehold properties. (2025: 16 properties) These are included at cost £315,310, total depreciation £9,233 and carrying amount of £306,077. (2025: Cost £205,614, total depreciation £4,756, carrying amount £200,858).

Included in Houses for Heroes are 12 shared ownership properties (2025: 12 properties). These are included at cost £371,956, total depreciation £54,702 and carrying amount of £317,254. (2025: Cost £371,956, total depreciation £49,920 and carrying amount £322,036).

Included in Houses for Heroes are 14 leasehold properties. (2025: 14 properties) These are included at cost £1,387,663, total depreciation £222,352 and carrying amount of £1,165,311. (2025: Cost £1,387,663, total depreciation £204,510 and carrying amount £1,183,153).

Included in Post 2008 is 1 leasehold property. (2025: 1 property) This is included cost £121,308, total depreciation £8,604 and carrying amount of £112,704. (2025: Cost £121,308, total depreciation £7,044 and carrying amount £114,264).

13 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 April 2025
2,553,124
Additions
503,072
Valuation changes
118,137
Movement in cash
-
Disposals
(441,103)
At 31 March 2026
2,733,230
Carrying amount
At 31 March 2026
2,733,230
At 31 March 2025
2,553,124
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments		 Cash in
portfolio
£
22,634
-
-
3,939
-
26,573
26,573
22,634
2026
£
113,876
265,329
31,868
411,073		 Total
£
2,575,758
503,072
118,137
3,939
(441,103)
2,759,803
2,759,803
2,575,758
2025
£
122,774
102,318
60,290
285,382

14 Debtors

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
16
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2026
£
11,396
167,620
9,219
95,248
283,483
2026
£
29,547		 2025
£
8,577
119,977
4,783
52,245
185,582
2025
£
25,553

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

17 Restricted funds

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

Post 2008 Properties
Houses for Heroes Appeal
Iraq Veterans' Fund
Shawmuir Cottage
Armed Forces Covenant Fund
Trust
AFCFT - OVA Major Capital
OP Cairngorm
Armed Forces Covenant Fund
Trust - Second Tranche
RP Milroy Trust
Home Starter Kit Grant
The Veterans Foundation		 At 1 April
2025
Incoming
resources
Resources
expended
£
£
£
1,370,569
91,516
(19,005)
239,625
-
-
10,140
-
-
14,640
-
-
29,489
126,989
(156,478)
6,192
565,510
(24,336)
10,000
-
-
-
290,882
(290,882)
-
5,000
-
-
8,000
-
-
25,000
(5,080)
1,680,655
1,112,897
(495,781)		 Transfers
At 31 March
2026
£
£
(205,000)
1,238,080
-
239,625
-
10,140
-
14,640
-
-
(547,366)
-
-
10,000
-
-
-
5,000
-
8,000
-
19,920
(752,366)
1,545,405		 Transfers
At 31 March
2026
£
£
(205,000)
1,238,080
-
239,625
-
10,140
-
14,640
-
-
(547,366)
-
-
10,000
-
-
-
5,000
-
8,000
-
19,920
(752,366)
1,545,405
1,545,405

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

17
Restricted funds
Previous year:
Post 2008 Properties
Houses for Heroes Appeal
Iraq Veterans' Fund
Shawmuir Cottage
Armed Forces Covenant Fund
Trust
AFCFT - OVA Major Capital
OP Cairngorm
Defence Gardens Scheme		 At 1 April
2024
Incoming
resources
Resources
expended
£
£
£
1,505,502
39,696
(19,629)
239,625
-
-
10,140
-
-
15,000
-
(360)
34,257
435,392
(440,160)
-
428,242
(53,520)
-
10,000
-
-
3,500
(3,500)
1,804,524
916,830
(517,169)		 (Continued)
Transfers
At 31 March
2025
£
£
(155,000)
1,370,569
-
239,625
-
10,140
-
14,640
-
29,489
(368,530)
6,192
-
10,000
-
-
(523,530)
1,680,655

The Post 2008 Properties fund holds funds restricted in connection with the values of the fixed asset properties.

The Houses for Heroes fund is to enable the Charity to build houses for disabled ex-Service personnel.

The Iraq Veterans' Fund purpose is to provide adaptation to houses for veterans of the war in Iraq.

The Shawmuir Cottage Fund purpose is to provide funding for the refurbishment of Shawmuir Cottage.

Both the Armed Forces Covenant Fund Trust and the Second Tranche of this fund have the purpose of reducing homelessness for Scottish veterans.

The transfer in 2024 was authorised for reallocation and used for property improvements, in 2025 to reallocate proceeds from property given for unrestricted purposes and for capital funds released to relevant asset class as work carried out.

OVA Major Capital fund purpose is for property improvements and renovation.

OP Cairngorm fund purpose is to provide outdoor experiences to beneficiaries through Operation Cairngorm.

Defence Gardens Scheme purpose is for maintenance and improvements to communal garden areas.

The RP Milroy Trust fund is for providing low-cost housing and support in East Lothian.

The Home Starter Kit fund is for provision of home starter kits.

The Veterans Foundation fund is for salary costs for the income maximisation officer.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

18 Analysis of net assets between funds

Unrestricted
funds
2026
£
Fund balances at 31 March 2026 are represented by:
Tangible assets
16,459,698
Investments
2,759,803
Net current assets/(liabilities)
1,960,764
21,180,265
Unrestricted
funds
2025
£
Fund balances at 31 March 2025 are represented by:
Tangible assets
14,541,895
Investments
2,575,758
Net current assets/(liabilities)
3,028,334
20,145,987		 Restricted
funds
2026
£
1,238,080
-
307,325
1,545,405
Restricted
funds
2025
£
1,370,569
-
310,086
1,680,655		 Total
2026
£
17,697,778
2,759,803
2,268,089
22,725,670
Total
2025
£
15,912,464
2,575,758
3,338,420
21,826,642

The unrestricted funds include designated funds outlined in note 19.

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026		 19
Unrestricted funds
These are unrestricted funds which are material to the Charity's activities.
Movement in funds
Movement in funds
Balance at
1 April 2024
Incoming
resources
Resources
expended
Transfers
(Losses)/gains
Balance at
1 April 2025
Incoming
resources
Resources
expended
Transfers
(Losses)/gains
Balance at
31 March 2026
£
£
£
£
£
£
£
£
£
£
£
General
Reserve
3,596,081
2,533,611
1,979,009
(357,721)
15,917
3,808,879
2,528,418
(2,614,713)
(661,331)
201,688
3,262,941
Designated funds The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: Movement in funds
Movement in funds		 Balance at
Incoming
Resources
Transfers
Balance at
Incoming
Resources
Transfers
Balance at		 1 April 2024
resources
expended
1 April 2025
resources
expended
31 March 2026		 £
£
£
£
£
£
£
£
£		 Property Development/Property Fund and Repairs & Maintenance
253,428
282,800
-
74,923
611,151
-
-
162,800
773,951		 OVA Major Capital
-
-
-
183,532
183,532
-
-
242,361
425,893		 Selkirk Funds
9,752
-
-
-
9,752
-
-
-
9,752		 Capital additions
79,524
989,800
-
(380,908)
688,416
-
-
(688,416)
-		 WW1 Properties
892,418
-
(23,628)
231,595
1,100,385
-
(40,688)
799,649
1,859,346		 WW2 Properties
3,210,374
-
(72,321)
677,594
3,815,647
575,278
(95,749)
725,870
5,021,046		 Pre 2008 Properties
5,561,441
-
(75,907)
48,295
5,533,829
-
(77,297)
63,778
5,520,310		 Post 2008 Properties
7,092
-
-
8,759
15,851
-
-
26,255
42,106		 Houses for Heroes
4,134,930
-
(61,970)
-
4,072,960
-
(61,969)
-
4,010,991		 Special Projects
126,714
141,400
-
37,461
305,575
-
(133,056)
81,400
253,919		 14,275,673
1,414,000
(233,826)
881,251
16,337,098
575,278
(408,759)
1,413,697
17,917,314
20

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

21 Capital commitments and post balance sheet events

At the year-end date of 31 March 2026 there were capital commitments, amounts contracted for capital projects but not provided for in the financial statements, of £1,125,491. Since the year end capital commitments of a further £979,732 have been made. Grant income of £615,788 will be received towards funding these commitments. The contingent asset of £60,065 in note 4 will also be used towards this.

22 Operating lease commitments

Lessee

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

Within one year
Between two and five years
In over five years		 2026
£
87,354
280,385
187,528
555,267		 2025
£
85,156
311,895
270,807
667,858

Lease payments made in the year amounted to £89,256 (2025: £57,328).

23 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2026 2025
£ £
Aggregate compensation 162,830 146,478

1 Trustee was reimbursed travel and accommodation expenses incurred in attending meetings. These totalled £197 for the year to 31 March 2026 (2025: 2 Trustees were reimbursed £486).

24 Other income

The Other income in the year ended 31 March 2026 includes a £666,794 (2025: £1,453,697) gain on disposal of tangible assets, £nil (2025: £14) bank compensation and £nil from an insurance claim (2025: 67,479).

THE SCOTTISH GARDEN CITY HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

25 Cash generated from operations 2026 2025
£ £
Surplus for the year 899,028 2,150,354
Adjustments for:
Investment income recognised in statement of financial activities (100,512) (103,282)
Gain on disposal of tangible fixed assets (666,794) (1,453,697)
Fair value (gains) and losses on investments (201,688) (15,917)
Depreciation and impairment of tangible fixed assets 299,726 259,950
Movements in working capital:
(Increase) in debtors (125,691) (209,733)
Increase in creditors 97,901 25,514
Cash generated from operations 201,970 653,189
26 Analysis of changes in net funds
At 1 April 2025 Cash flows
At 31 March 2026
£ £ £
Cash at bank and in hand 3,238,620 (1,098,121) 2,140,499
3,238,620 (1,098,121) 2,140,499