REGISTERED COMPANY NUMBER: SC539138 (Scotlandl REGISTERED CHARrrY NUMBER.. SC010314 Re ort ol the Trustees and Audited Con501idat d Financtal Statements lor the Year Ende(f 315t December 2025 for en's H Kelso Limit 8n's Housè Kfrlso Conten the Consolidated Inanclal Statements for the ear endèd 31 t December 2025 Page Rèf•rnnc• and Admlni$tratlvè Detalls R•port of the Truste Report of the Independent Audltars 6 to 8 Cons0lid4t•d Statement of Finanelal Actbvitios Siaiemfrnt of Flnanclal Activities 10 Consolidated Slatemtnt of Flnanclal PositTon Consolidated St#t•mont of Cash Flows 12 Not•s to the Consolldatgd Statèment of Cash Flows 13 Not•s to the Consolidatèd Flnanclal Statem¥nts 14 to 27 ueen'$ Hou$9 Ke150 Limlt*d Ref•r•ncè and Admlni$trativÈ DètBiIs for th6 ear ended 31st December 2025 Trustees: Miss D A Dobson Iresigned 1141261 Mrs R J J8¢kson A G Wemyss {resigned 1811W251 MTS V S Yongts Dr l A Sutherland W J Windram F Calder Dr G M Arbuckle A S W Amstrong IChairm8nl C R Baird lapptsinted 1314126} RegisteTed Office: Rennie Welch Academy House Shedden Park Road Kelso Roxburgltshl TD5 7AL Prin¢lpal Address., Angraflal Road Kelso Roxburghshire TD5 7NS Roglst8r8d Cifftipany Number: SC539138 Iscottandl Regl$ter&d Chgrlly Numbtrr- SCO10314 Audltors: Thomson Cooper 3 Castle Court Dunlermline KY11 8PB Chlel Executlv¢: Mrs K Brown RN, Bsc. Dip Page 1 Quo•n's K8lso Istgred nUrn￿r. 138 Re ar ort ol the Trust008 nded 31st D mber 202 for the The Truste8s who are also Directors of the Charity for the purposes of the Companiès Aet 2006, prasenl Iheir report with the financial stslements of the Charity for the y&ar ended 315t December 2025. The Trustees have adopted thè provisions of Accounting and Reporting by Charities.. Sialement of Recommen(Jgd Practice applicable to charities Preparing their acwunts in accordan¢e with the Financial Reportin9 Standard applicable in the UK and Republic of Ireland IFRS 1021 leff¢¢tNe 1 January 20191. Objectives and acti¥itie$ ObjKtl¥*$ and alm5 Throughout Ihe year the Home has been able lo achieve ex￿lIent average occupancy levels al 99.6% which is irt linè with the 2024 figure of 99.9%. Place and Spa¢è has been fully functional duriry the year and the service continues lo grow. Under the experienced leadership of the Chief Execvtive, Mr8 Kèlly Brown RN, MSC, 8S¢. Dlp a robust management 5lructure has continued to be developgd with the aim ol providing 8 high le¥el ol quality care for the residents. The Charitable Company ¢ontinues to place emphasis on the participation ol residents, relatives and staff In foTmtng key policies on the running of the Home and the Trustses are very receptive to ideas and suggestions reoived from these groups. As a result the Home has been able to provide a wide range of activities for residents lo partiapale in and enjoy with great 9mphasis on encouraging residènts to develop personal outcomes. This has been delivered, in particular, by the Place and Space and the Vvellbeing teams. With the availability of thè minibus, residents have been able lo tske trips away froTh the Homè throughout the year. In the past the Homé has built up a close relationship with the pupils of Kelso High School and th8 11)¢al primary schools and il is hoped thal visits by pupils can be encouraged. The Home ¢ontintJes lo work closely with the locol G.P. Practice and Scottish Borders Coun¢il and Is grateful for the supFvrt and en¢ouTagement which these organisations give. The Trustees continue to be very active in these ¢tifficult times of the health needs of the Scottish Borders and aim to assist in meeting these needs particularly of the elderly and those suftering from dementia. Ongoing development and future plans The Charitable Company has a structure of management with a Registeled Care Home Manager and Assistants takin9 forward the organisational delivery of care over all 3 Houses. They ar& supported by a team of senior stsff in the specsalist fields ol care. nursing, business management and psychological wellbeing wilh the oversight of 311 areas by the Chief Executive, allowng her to locus on high level quality aSS￿rances. monitoring, stralegic develupmenl, innovative PTacbce and strong leadership. Adraft strategic 5 year plan has been prepared lo assist Trustees, the M8n8gement Team and staff lo Continue to provide exceptional care in the fulyre. The Trustees have ¢onl>nued the priyJramm& of upgrading the laciliti&s of Queen's House lo br4ng them up lo the same standards os the purpose built dementia unils. This work is ongoing. A programme of further capital improvements and refurbishment to the buildings, furnishings and equipment has been prepared with work likely to take place over the nexl couple of yoar8. Pl8ce and Space has been open lor the whole year for residents and the comrnunity providing a focal point with activities and also a ckfè for people in Ihé tommunily living with Otrmentia and for their relatives. Page 2 ueen's House Kelso Llmlted Re st number: 39138 Re ort of the Truste•8 r ènded 318t Decembèr 2025 ObjectNtr$ •nd a¢￿vItIeS Volunteers The Trustees of the Charitable CDmp3ny consist entirely ol volunteers. ts well as dealing with 9overnance and slr8tegic isstles Ihe Twslees Continue a prffjr8mme of visits lo the Horne lo meet residents and stsff lo monitor and discuss with them various aspects of the runniryJ ol the Home. Volunteers also rÈgularly visit the Home lo provlde entertainment religious servi￿8 and recreational activities. Home is in the process of developing a moTe sltudured mrKlg1 of involving voluntee¥s lo inleracf with residents. Thè Trustees are indebleLrf to the donors and grant funders who h8¥e been so generous in providiro support for Ihe various capital and development prOgraMn￿5. The Trustees are also very grateful to the local ¢ommunSty ft>r Ihe conlinued support and assistance which it gives to the Home. Financial review Flnanclal posltlon During the year the Charikbfe Company produced a surplus or £418,985 in its 9eneral fund12024- £425,942>. The results are considered to be satisfa¢tory. Hl9h levels of o¢¢upanw throughout the yèar and strong cc>ntrols over expenditure have been key factors in aCh￿ving this resuh. Reservès policy The Truslee5' long term aims a￿ to operate the Home at a level lo generate suffiGienl surplLts lo cover ils borrowing commitment. unexpected c<>ntingèn¢ies, provi$ton foi future maintenance sufficient lo keep the fabric of the Hom& at a high stsndaid Jrnd generate resource5 nece55ary to explore ways of improving fa¢ilslitrs for the care of the elderly in the Scotlish Borders and endeavourtodevelop these. To cover 811 Ihls the Truslees estimate that the uniestricted reserves target should be £1,794,464. The actual unrestricled reserves balance al 31st Decemb¢r 2025 was £2,874,630 so therefore the Charitsbla Company has mel this target. The TnJ$téÈs' also fèel that it is prudent to have enough unrestricied reserves to Cover four months gross wages together with a contingency fund of £250,000. Based on salary costs for the four months lo 31$1 Decemb&r 2025 the unrestrlded reserves target would be £1,566.012. The actual unrestricted reservos tsalan￿ at 31st December 2025 was £2.874.630 so thei¢foTe thtr Charitsble Company ha$ mel this target. Thp Tnjstees have ennsidered the Charltable Company financial position lor 2 peri(xl of 12 months from Ihe date of signing these financial statements and have reasonable expectation that the Chariiable Company have ad8qu8ta rèsouic@s to continuè in opar8tion81 èxistence lor the next 12 months. Accordingly, they conts'nue lo adopt the going concern basis in prepar¢no these finanual Statements. Strurtur¢, 9ov¢mane¢ and managemgnl Governlng document QLJeen's House IKelsol Limited is a Company limited by guarantee registered with the Office of Scollish Charity Regulator. The Trustees operale 8 Company, a wholly owned substdiary of Qu¢ens House IKelsol Limited, Angraflat Development Company Limlled ISC5508911 (Scollandl, which has undertaken Ihe building of the Dementsa Unit and Central Hub and which lease these facilities to Queen's House IKelsol Limited. Page 3 ue•n's House Kel¥0 Imlt•d r: SC539138 ort cf the TTUSteg ear ended 3 December 202 lor the Struclure, govemanc? and management Organisation#l $tructur• The Twstees who meet frequently consist of members with a whle variety of experience in the main fields of operation of the Charitsble Company. New membprs are chosen because they have k￿0wIe￿9e gf somg particula¥ aspect of the opefalion and new members will be fully briefed about the working ol the operation. Various members of the Committee are earm8Tkèd to consult with the m8n8gers on particular issues. Finan￿ Committee, Clinical Governance Committee and a Slaffing Committee also meet as and when appropriate. In December 2025 Mr A G Wèmyss stepped down as Tnjstee and Chairman, Hg had served as a Trustee for 9 yeaTS and had been Chaimian IOT three years. His leadership and guidan￿ has been greatly appre¢iated by the Trustees and the managemènt team. Mr A S W Armstrong has taken over as Chairman. The Trustees delegated responsibilty ol tho overall slr8tgglc managgmenl of tho Homg to Mrs Kelly Brown. ihe Chief Executwe. Mrs Brown manages an operational team of man3gers lo run the day-tO-d8y opèralions ol the Home which include the Registered Care Home Marsager and Assistant Managers. Mrs Brown's Business Manager and Finance ManageT 8180 stÈpport th8 Home with management matters of a non-cllnical nature. In February 2025 the Trustees organised and attended a Trustees 8way day. The day included, amongst olhor things, discussions with employeès from Scottish Borders Council about lutur8 car8 needs. Risk management Th8 Trusteès have a duty to id8ntify and review the risks lo which the Charitable Company is exp¢)sed and to ensure appropriale controls are in pl￿ to provide reastsn8ble assurance against fraud and error. The key business risks affecting the Charitable Company are: Inflation Interest rates - Ot¢vpancy stsffing Cyber security The Trustees regularly review risk strategy and make arrangements 10 réduce exposure using appropriate financial inslrumenls. Thè Charitable Company mana9e its cash an¢J borrowing in order to minirni88 int$rest expense whilst ensuring the Charitable Company has sufficient liquid feswrces lo meet the opeiab.ng needs of the organisation. The Charrtable Company Cothoperates fully wilh IhE regulatory servi¢es ol the Care Ir¥speclor8le who monitor the services provided by Queen's House IKels01 Limited. Prinelpal actlvity The principal activity of the Charitable Company in the year under review was Ihal of residéntial and nursing care foi the elderfy in the Borders. In addition to providing long term care the Gharilable Company could also Pfovide respite care. From December 2018 Ihe Charitable Company w85 also able to provide specialist dementia care and now Blso pr()vide5 a Café and Activity Centre aimèd at providing a faGilty for people living with demenlia and their carers to meet. Statèmènt of Trustees. re5pon$ibIll￿es The Trustees {who are alsu IhE directors ol Queen's House IKe15ol Limited for the purposes of Company IBw} are responsible lor weparing thè Rèport ol the Trustees and the financial stalemgnts in accordance wilh applicable law and United Kingd(xn Accounting Standards (United Kinodom Generalty Accepted A¢¢ounlir¥J Praclicel. Page 4 ueen's House Kel80 Limit•d R• I t d numbèr: SC 39138 ort of thg Trustpg èar •nded 31st December 2025 for thè Statement of Tru$t•¢s' r•sponslbllltlè$ - contlnued Company law reqL*ires the Trustees to prepare financial stalemenls lor each fif)ancial year. Under Ihat18W, the Trustees have elected lo prepare thé financial statements in accordance with United Kingdom Generally Accepted A¢¢ounling Prath'¢¢ (United Kingdom Accwnling Standards and applicable lawl. Under company law the Trusle¢s must nol approve the financial statements unless they are satisfied that they give a truè and lair vw of the state of affair5 of the Charilable Company as lo the incoming rèsources and application of resources, including the in¢ome and $xp¢nditure, of the Charitable Company for that period. In preparing those finanual statements, the Trustees are required lo.. select suitable accounting poI￿leS #nd IhÈn 8pply Ihèrn consislently., observe ihe meth¢xSs and principles in the Charities Siatement of Recommended Pra¢lice', make judgements and estimates Ihal are reasonable and pA￿ent., prepare the financial statements on Ihp gosll9 con¢em basis unless rt is irwpropriate lo presurne that th& Charitable Company will continue in business. The Trustees are r8sponsible for keeping proper accounting records which disclose wtth rèasonable accuracy al any lime Ihe financial Pcssition of the Charitable Company and lo énablè them lo ensure that th8 financi3 statements comply wilh the Companses Act 2006. They are also responsi￿e for safeguarding the assets of the Ch8ritable Company and hence for taking reasonable steps for the prevention and detection of fraud and other iNegulaTltie5. In so lar as the Trustees are aware.. there is no relevant audil information of which the Charrtable Company's auditors are unaware.. and Ihe Ttustètrs have taken all steps that they OL¢ghl to have taken to mak8 thernselves awa￿ ol any relevant audit infoTmalion and lo estsblish that the auditors are aware ol that infomialion. Auditors In Novèmbèr 2025 Thomson Cooper were appointed auditors of Cueen's House (Kelsol Limited. The auditors. Thomson Cooper, will be pyoposetl for re-appointment al Ihtr forihwmirYJ Annu81 General Meeting. This report has been prepared in 8¢¢ortsn¢e with the special provisions ol Part 15 of the Companies A￿ 2006 felaling lo srnall companies. Approved by Order of the board of Tnjstees on 30th July 2026 and signed on its behalf by.. A S W Armslron9- Trustee Pa9e 5 Re orto •en's House •ndgnt Audltors t th• rust••s and Members of Ke15Q Limited Re Istered number: SC539138 Opinion We havè Audit6d Ihe gTOUP and par8nt financial statements ol Queen's House IKelsol L1rn￿ed Ithe'Charit8b18 Companll for the year ended 31st December 2025 which Comprise the consolidated StalerTient ol Financial Activities, the consolidated Slatement of Financial Position, the consolidat8d Statement of Cash Flows and notes lo the consolidated lin8ncial statements, including a summary ol significant accour41ing policies. The financial reporting framework that has been applied in their preparation is applicablè law and United KingdoTn Accounting Star￿ards, including Financial Reporting SlarKlard 102 Thp Financial Reporting St8ndard applicable in the UK and Republic of Ireland (United Kin9dom Generally Accepted Accounting Practs'cel. In our oplnion the financial 513lements'. give a truè and fair view of the stste tsl the Group's and P8rent Chartiable Company'$ affairs as 81 31 st December 2025 and of its incoming ￿sourceS aJ(J appli¢ation Df resovrces. for the year then ended., have been property prepared in accordance with United Kingdom Genérally Accepled Accounting PractrA- 8nrJ have been prepayed in a¢¢ordance with the requirem&nts of Ihe Companies Act 2006, the Charities and Trusteè Invastrnenl (Scollandl Act 2005 and Regulation 8 of the Charits"es Accounts Iscollandl Rggul81ions 2006 la5 arnendedl. Ba$1$ for opinlon We ¢ondu¢tod our audit in accordance with International Standards on Audiiing IUKI IISAS IUKII and applie2ble law. Our responsibilities under those sl8ndard5 are further described in the AtJditDrs' responsibilities for the aud(( of the financial statements se¢tion of our report. We are independent ol the Group and Parent Charitable Company in acwrd8nGe with the eihical requiTements that aTe ￿levant lo our audit of the financial stalements in the UK, induding the FRC'S Ethical Standard, and we havè fulfi116d our other elhical responsibllilies in accordance with these requirement5. We believe that the audit evidence wo have obtsined is sulficienl and appropnate to provide a basis for our gpinlon. Concluslons relating to golng concern In auditing the consolidated financial stalèm8nts, we have conclude(f Ihat the Tnjstees. use of the golng concern basis of accounting in the pieparation of the financial slatements is appropriate. Based on the Work we have performed, we have not identified any malerial uncertainties relaling to events or conditions that, individually or collect¢vely. may ¢ast SIgn￿1r￿nt doLibl on the Group and Parenl Charilable Company's 2bility to continue as a going concem lor a period of at least twelve rnonlhs Irom when the consolidated financial statements are aulhorised lor issue. Our responsibilities and the responsibilities of ihe Tn&stees wilh respect lo going concern are described in the relevant sections ol this report. other infomatlon The Trustees ale responsible lor the other information. Th* other information comprises the inlormation Included in the Annual Report, olher than Ihg (xinsolidated financial ststements and o¢Jr Report of the Independent Auditors thereon, Our opinion on Ihe con501Klaled financial statements tloes nol cover the other infomation and, except to the extent otherwise explicitly stated in our report, wè do not eXp￿$S any form of assurance conclusion Ihereon. In connection with our audit of the consolidated fin8n¢ial statements, our responsibility is to read the olher information and, in doing 50. consider whether the other inforrnalion is malerially incon51slenl with the ¢Ons01idated financial slatemÈnts or our knowledge obtained in the athlit or othenwisè appears to be materially misstated. If we IL1enlify such malerial inconsistencies or apparent material misstatements. we ere roquired lo dèt6m)ine whether this gives rise to a material rnisstslgment in the consolidated financial statements themselve5. If. base¢J on the work we have pertormed, we conclude that there is a material misstatement of this other Inlormation, we are required lo report that lact. W8 have nothing to report in this regard. Page 6 Re ort of th* Inde ond¢nl Audltors to th• T Mgmb8rs of Queen's House Kelso Limited Re istered number- SC539136 Oplnlons on other matters prescribed by the Companies Act 2006 In our opinitsn, based on the work undertaken in the course of the aud((-. the information given in the Report of the Tiuslees lor the financial year for which the consolidated financial slatements are prepared 15 consistent with the financial statements.. and Ihe Report of the Trustees h8s been prepared in accordance with epplicable legal requirements. Matters on whlch we are required to repc¢rt by exceptlon In the light of the knowledge and un(Serstanding of the Group and P8renl Charatable Company and its environment obtained in the ¢outse of the auilil, we have not identified material mis3talements in the Rew)rt of the Trustees. We have nothing to report in respecl of the foll¢ywing matters where the Companies Act 2006, the Charitiès Accounts {Scot¢andl Règula&'ons 2006 (as amendèd) and Charitiès and Trustèès Inveslment (Scollandl Act 2005 requires us to re￿ lo you if, in our opinion". dequate and proper accountiThJ recorés have not been kepl or returns adequale for our audit have not b8en re¢eiv$d Iiom braA¢hps ntsl vbsitsd by u5.. or the Cor￿11￿3ted financial statements are not in agree￿ent with the accounting records and returns., or certain disdosures ol Trustees, remuneration specified by law are nol made., or we have not receive¢J all the inlomiation and explanations we require for our audil. Responslbbll￿eS of Trustees As explained more fvlly in the Stalernenl of Trustees. Responsibilities, the Trustees, who arè 81so the directors of Ihe Charitable Ct>rnpany for the purpose of cotnpany law, are fesponsible for the preparation ol the consolidated finarKial statements and for being satisfied thatthey give a true and fair view, and for such intemal control as thè Trustees detem)inè Is neceysary to enable thÈ prèparation of coftsolidated ffinanci815talements that are free from malerial misstatement, whether dLSe to fraud or error. In preparing Ihe consolidated financial slalements, the Trustees are responsible fora5se5sing the Group's and Parent Chafitable Compan￿5 ability lo continue as a going c￿Cern, disclosing, as applicable. matters related lo going concem and using the 90ing concern basis of accounting unless the Trustees either inlend to liquinths trom the date ol s¥Jning these consolidated financial ststemenls have reasonable expeciation that Ihe Charitable Company has adequate resou¥¢es to continue in operational existence for the loreseeable fvlure. Accordingly, they continue lo adopt the going concern basis in PTgparing these consolidated financial statements. Employèè benef Short temi employee benefits, including holiday pay, are recognised as an expense in thè consolidated Stalem8ftt of finoncial activitie5 in the perK•d in which they relate. Cash and cash equivalents Cash and cash equivalents compr15e cash on hand and rnoney held in bank accounts. F¥nan¢lal p¢rfornianc• of the Charltable Company The consolid8ted statèment of financial act¢vities inclijdes the resuFts of Ihe Charltsblè Company's wholly owned subsidiary which was eslablished to develop the new Demeniia Unit and now leases this to the Charitable Company. The summary financial perfomiance of the Charitable Company alone is.. 2025 2024 In¢oming resources 5,313,366 5,052.654 Expènditure on charitablè activities S,062,883 4,677.888 Net income 250,483 374,766 Total fijnds brought forward 5,884,115 5,509,349 Total funds carried forward 6,134,598 5.B84.115 Page 16 contlnugd... u•on's House Ke150 Llmlted Notes to the Con$olldated FSnancSal Statements- contlnyed Èar •ndad 31st Dèe•mbèr 20 Flnanclal pertarnianee of the Charltsblè Company - ¢ontlnu•d Re resented b Unrestricted funds Rèstrictèd funds 2,639.459 3495.139 2,327,593 3 556 522 6,134.598 5.884,115 An9raflat Dovtlopment Company Limited The whDlly owned trading 5ubsidkgry, Angrafial Development Company Limlled, is incorporated in the United Ktngdom Icompany number SC5508911. Angrafl3t Devek>pment Company Limited 15 developing the new Dément18 Unit. The Charitable Company owns the entire share capital of 1 ordinary Sha￿ of £1 each. A summary ol the Ir8ding results Is shown below. The summary finan¢ial perftsrman¢e of the subsidiary alone is.. 2025 2024 Incorrte 300,000 300,QIK) Total expenditure 207,653 Profil before taxation 92,347 54,636 Tax on profil {37,387) 140,3121 et profit for thè pwiod 54,960 14,324 Retained oarnings 81 b8ginnTrr¥J of year 96,7921 111,1161 Retained earnings at end ol year 41,832} 96.7921 The assets and liabilfÉie5 of Angrafl81 Development Company Limited were.. 2025 2024 Assets Liabilities 5,642,042 5,683.8731 5,750,208 5 846,9991 41.8311 96.791 Donations and lega¢l•s 2025 2024 Dot)ations Grants 6,302 4,4J6 197,334 22.553 11,208 219.887 Donations lotalled £6.30212024 £197,334) of which £6.30212024 £154.5871 was unrestricted and £Nil12024 - £42,7471 was rÈslrict8d. Grants lotslled £4,90612024 - £22,553) of which £2,90612024 - £7.0531 was unre5tllcted and ￿,00Q? {2024 - £15.500} was restrict¢d. Page 17 continued... 's House Kel$0 Li éd Notes to the Con for the alldat•d Financial Stat¥m•nts . eontlnued ear ended 31st D mber 2025 Donalions and legacie5 . ¢ontlnued Grants received, included in the above, are as follows: 2025 2024 Student Awards Agency Scouand SBC Sl James, Place Border5 Community Aclon 2,906 7,053 5,000 2.500 8.000 2,000 22,553 Oth9r tradlng ?ctlvitltr$ 2025 2024 Fundraising events 1,582 545 All fundraising events rela18 to the unrestricted lund. Inv•stment Income 2025 2024 Deposit account interest 12,586 12,127 All inveslmenl income relates lo the unreslricted fund. Ineome from charitable ¥rtlvi11gS 2025 2024 A¢tlvlty Residential care Residential care Residents fees Sundry income 5.261,101 26,889 4,786,486 33.609 5,287,990 4,820,095 All income from charitable activities relate lo the unrestrictgd hjnd. Charltable activitièy ¢o$ts Direct C95ts1s?e note 91 Support costs (see not? 101 Totals ResKlenli81 care 4,906,226 64.311 4,970,537 Ch8ritable a¢tivilies costs lolalled £4,970,537 of which £4.860,386 was tknr9Stricted and £110,151 was restrided. Page 18 continued... ueon's Housg Kolso Llmbt•d Note5 to the Consolidated Flnanclal Statém•nt$- eontlnu for Èar Onded 31st December 202S Dlr•¢t co¥1$ of charitable activltie5 2025 2024 Staff costs Other operating leases Ratss and water Insuran¢e Light and heal Telephone Repairs and renewals Advertising, postagè and stationery Sundries Staff training 3,847,257 2,688 18,005 42,362 99.956 9,389 152,625 17,8B9 15,146 7.776 3.478,099 2,160 14,998 38,478 125,858 9,801 170,811 10,926 4.669 15,gTI k 11 Garden upkeep Laun(Jry Annual iegi51ration fee Professional fees Food suppliès Resident activities Computer costs Travel and subslstence ConsLsmable supplies Molor vehicle expenses Depreciation Interest payable and similar char9èS 18,731 21.652 9,310 54.008 198.319 3,974 28,537 1,489 60,711 2,527 207,632 86,243 13,305 19,378 9,299 33.800 182,023 4.489 25,061 779 61.202 2,639 211,535 125.294 4.906.226 4,560,581 Dlrect costs of charitable activitie5 totalled £4,906,22612D24- £4.560,581 I of which £4,796,07512024 £4.465,2521 was unrestrictèd and £110,151 12024 - £95,329> was restri¢lgd. 10. Support costs SLtpport costs. 4nclud&d in the above, are a5 follow5.. 2025 2024 Auditors. remuneration Secretarial f8ÈS 17,856 46,455 13,172 49.499 64,311 62,671 All SLtpport ￿StS relate lo the unreslricled fund. 11. Net IncomellexpendEiurel Net incomollexp8n(Siturel is $1818d after charging1{cr8dilingl'. 2025 2024 Aud¢tors' remuneratb)n Depreciation - owned 8s$et$ Other operating leases 17,856 207,632 13,172 211,535 2,160 Pagè 19 Ct)ntinued... House Kelso Llmltèd Notes to the Consg1-dat8d Financi •m•nts- contlnued or tho ar end 1 t December 2025 12. T￿stee5. rFmyneratlon and bènefits There were no Trustees. remuneration or other benefits for the year ended 31st December 2025 norfDr the year 8nded 31st December 2024. Trustee$, ex￿nseS During the year expenses 01 £10412024- £NILI were pAid to Ihe Trustees. 13. Staff costs 2025 2024 Gross salaries Social security costs Pension cosis 3,322,704 347.166 177.387 3,074,619 249,018 154,462 3,847,257 3,478 099 2025 136 2024 135 The average number of employetss during the year was as follows.. The Company contributes lo pelsonal pensK>n plans ol employees. C¢)ntribulions are charged lo the statement ol financial activitles as Ihey fall due. The c051 during the year amountod lo £177,387 {2024 - £154,4621. Thg aggiggate employee benefits lor three kèy management personnel for the year end8d 31st De￿rnber 2025 amounted to £184,29812024- £166,679). 14. C¢mparatlves for the stat¢ment of finan¢lal a¢tlvltSes Unrestrlcttd R•strlct•d funds funds Total fund$ Incgme and endowments from Donations and legacies 161,640 58,247 219,887 Charltable aclivitigs Residential care 4,820.095 4.820.095 Other Ir8ding activities Investfflvnt income 315 72,127 230 545 12,127 Total 4 994.177 58,477 5,052,654 Expenditure on Charltat)le actlvltles Residential care 4,527.923 95.329 4.623.252 Oth8r 40.312 40,312 Total 4.568.235 95.329 4.663,564 Net in¢¢mèllèxpenditur•l 425,942 136.8521 389,090 Page 20 ¢ontinu8d... u8on's Hotssè Kélso Llmitod Notes to the Consolidat•d Flnanclal Statèmènts - continued for the ear ended 31st December 2025 14. Comparatives for the statement of financlal a¢tlvltlps- ¢ontlnu¥d Unrestrlcted R¢$trl¢ted funds funds Total funds Net incomellttxpenditurel- from prevlous page 425.942 136.852) 389.090 Reconclllatlon of lunds Total funds bT(yJghl forward 2,029.703 3,318,530 5.348,233 Total funds earrled lorward 2,455 645 3,281,678 5.737,323 15. Tangible fixed assets Group Flxtur¥$. flttSngs and equipment Freehold Pfoperty Motor vehl¢les Totals Cost Al 1st January 2025 Additions 7,876.761 9,112 641,157 13,291 42,234 8,560,152 22,403 At 31st D8c&m￿r 2025 7 885 873 42.234 8,582,555 Dèpr•clatlon Al 1st January 2025 Charge for year 1.209,210 146 737 361,042 51,876 6,159 9.019 1,576,411 207,632 Al 31st December 2025 1,355,947 412,918 Net book value At 31st December 2025 6,529,926 241.530 27,056 6.798.512 A(31sl December 2024 6.667.551 280,115 36.075 6,983,741 Included in freehold property is freehold land of £233,91312024 - £233,913) wh￿h is not depreciat&l. Thg a99regate Amount of fiftan¢e ¢iJsts ¢8Prt8&sed In freehold property is £43.06812024 - £43,068). Page 21 continued. Hous• Kelso Not•s to the Con39lidatèd Flnancial Statem•nts - contlnuod aren ed 31st D8eember 2025 15. Tangible fix¢d assets- continued Charlty Fixtur•$, fittln98 and equlpment Fmhold property Motor vehicles Totals Cost Al 1st January 2025 Addith)ns 1,724.91 S 9,112 465.429 13.291 42,234 2,232.578 22.403 At 31sl December 2025 1,734,027 478.720 2,254,981 Depreclatlon At 1st January 2025 Charge for year 647,017 50,700 257,913 34.302 6,159 9,019 911,089 94.021 Al 31$1 December 2025 697717 292,215 15.178 1,005,110 Net book value At 31st December 2025 1,036,310 186,505 27.056 1.249.871 Al 31st December 2024 1,077.898 207,516 36,075 1.321,489 16. Stocks Group 2025 Group 2024 Charity 2025 Charlty 2024 Stocks 6.000 8,000 6.000 8,000 17. Dèbtors: amounts falllng duè wlthSn one yeor Group 2025 Group 2024 Charlty 2025 Charity 2024 Amounts lalling due wrthin one year.. Trade debtors Amounts owed by group undertakings Other debtors Due by Communities Connected Iscollandl Lld VAT PrepayThents 171,125 128.568 171.125 128.568 4,182,762 3,884 4,049.489 6,432 3.884 6,432 5,235 190 36,771 5,235 220 55.014 229,904 226.388 230,243 177,196 4.587,675 4,416.112 Page 22 conlinuecs... •n' Kel Llmltgd Notes to th• Consolldat•d Flnanclal Stat•m•nts - continued for the ar ended 31st Dè¢Èmber 2025 18. Cr•dEtors: amounts falllng due wlthln ont year GfOUP 2025 Group 2024 Charlty 2025 Charfty 2024 Bank loans and overdrafts Isee note 20} Tradè Creditors Deferred tax Social seGur¢ty and other taxes Pension Contributions A¢¢wed expenses 91,254 89,270 116,811 70,976 22.450 410,880 267.140 66.872 79.424 61,677 21,498 394,843 8,550 65.731 87.949 70.976 22,450 401,982 61,677 21,498 386.554 801,641 891,454 583.357 544,010 19. CT•ditors.' amounts lalling due after more than onè year Group 2025 Group 2024 Char 2025 Charlty 2024 Bank108fts (sèe notè 201 1,093,210 1,260.449 20. Loans An 8nalysis ot the m8liJrtty of108ns is given below.. Group 2025 Group 2024 Charity 2025 Ch#rity 2024 Amounts falling due wthin one year on demand.. B8nk loans 91,254 267,140 8,550 Amounls falling due between and fi've yeafs.. Bank loans - 2-5 year8 422,170 394,362 Amounts18lling due in more than five years.. Repayable by instalments.. Bank loans more 5 yr by instal 671.040 866,087 Page 23 continued... n's Houso K•lso Llmlted Notes to the Conso Ids •d Flnancial Stat•m - contlnued for the ear ende ecèmber 2025 21. Le8$ing agrgemonts Minimum ltrase payments under non-cancellable operaling leases f811 due as follows.'- Group 202S Group 2024 Charlty 2025 Charlty 2024 Wllhin one year Be￿een one 8nd fiv6 yèars In more than five years 2.880 10.800 302.880 1,210,800 3,￿J0,000 300.OtKI 1,200,000 4.200.000 13,680 5.413,680 5.700 000 22. Sacur•d dobts Thè following secured debts are included wilhin ¢redilors'. Group 2025 Group 2024 Charity 2025 Charfty 2QZ4 Bank loans 1,184,464 1,527.589 8,550 One bank loan is secured by 8 standard secuflty over the property together with a bond and floating harge ovBr the Ch8rilablg Company assets gen8rally. Thg Royal Bank of Scotland PIC hokjs security over an area of land owned by the Charitable Cornpany and by way ol 8 floating ¢h8rge over the property. 23. Movem•nt in lunds Nel movement In funds Transfers between funds At 31.12.25 Al 1.1.25 Unr•strlct•d funds General fund Devélopment project fund Donations lor specific spends fund 2,267,802 150,0(K) 37,843 419.430 5,392 2,692,624 150,000 32.006 5.8371 2,455,645 413.593 5.392 2.874,630 Restri¢t*d funds Staff fund Property fund Equipmgnt fund Community SL¢PPQrt fund Care fund 7.342 3,173,809 76.160 4,802 19.565 12,7241 176,2911 113,3911 14,8021 10.9431 4.618 3.097.518 62,769 3,230 3 281.678 108 1511 5,392 3 168 135 Total funds 5,737 323 305,442 6.042,765 Page 24 conlinu8d... ueen'$ Ho Notes to the Consolidaled Flnancial Statements - contlnued d 31st Dècembér 2025 23. Movement In funds - contlnued Net movement in funds, inclLtded in the above are as lollows= In¢¢xnÉng resources Re50urcK Movement èxpendèd in funds Unrestrlcted funds Ganeral fund Donations for specifi¢ spends lund 5,309.619 1.747 14,890, 1891 7,5841 419.430 5,311,366 14.897.773} 413,593 R•$trldfrd funds Staff fund Propèrty fund Equipment fund Communty suppixt fund Care fund 12.7241 178,2911 (13,3911 14,8021 12.7241 176.2911 (13,3911 14,8021 10,9431 2.000 2.000 110,1511 108,1511 Total funds 5,313,366 5,007,924> 305,442 Comparativè$ for movtmont Én fvnd$ N•t movemènt in funds At 31.12.24 At 1.1.24 ilnrostrlctèd funds General fund Development pioje¢t fund Donations for specific spends fLFnd 1.963.282 304,520 150,000 28.5781 2,267,802 150.000 37,843 2,029.703 425.942 2,455,645 Restricted funds Stsff fund Property fund Equipment lund Community support f4Jnd C8re fund 11,032 3,247.864 45.200 2,250 12.184 13,6901 174.0551 30,960 2,552 7,381 7.342 3.173,809 76,160 4,802 19.565 3,31B,530 36,8S2 3.281.678 Total funds 5,348,233 389.090 5,737,323 Page 25 continued.. ueon's Housg Kglso L5mlted Not•s to the Consoli clal Statements- ¢ontlnued ear ended 31st Decemb•r 025 23. Mov¢mènt In lund5 . continued Cornparalive net movement in funds. in¢ltKJeiJ in the above are as follows.. Incoming r¢$ources Re$ources expendtrd Movement In funds Unrestri¢t¢d fvnds General fund Developmenl projgct fund Dortalions for specifi¢ $p8nds lund 4.843.574 150,0Th) 603 14,539,054) 304.520 150.000 28,5781 29,1811 4,994,177 14,568,235) 425.942 Re5trScted funds Staff fund Property luncs Equiptnent fund Community support fund Care fund 40 2,500 42.937 5.000 8,000 13,730) {76,5551 {11,9771 12,4481 6191 13,6901 174,0551 30,960 2,552 7.381 58.477 95,329 36,852 Total funds 389,090 The baL9nce on reslrfcted funds al 31st December 2025 is made up as follows.. Developmtnt proS•ct fund- this fund is an unrestricted designaigd lund which arose from a donat50n received. The lund balance has been designated to a capital project that is hoped will Commen￿ in 2026. The fund is reprès8nted by cash al the bank. Donatlons for speclfi¢ $p¢nds fund - this fund arose from fvndraising events whicth has been designated lor activities, smèll equipmenl and capital expenditure. The fijnd is represented by tsngible fixed assets. Stsff fund - This tund arose Irom various donations and grants feceived and 15 uspij to pur¢hase treats for stsff members. This fund is represeryted by cash at bank. Property fund - This fvnd ar05e from various ijonations and grants rts¢dved from organi5alions and individuals and is use(* to fund various improvements to the property and grounds. Some of the depreci81ion on property held in the subsidiary is reslricted on consolidation as it relaies to restricted income received to build Murray House and Evanlhea House. This lund is Tepresenled by cash at Ihe bank and tangible ftxed assets. Equipment fund - This fund arose from various donations and grants from organisations and individuals and is used to fund the purchase of new equipment to be used by the Charitable Comp8ny. This fund is represenle(J by ¢ash at th& bank. debtors and tangible fixed assel5. CommL¢nlty support fund This fund arose from grants from Scottish Borders CL)uncil. The fund Ss used to support events and 8ctivities lor Ihe local ¢ommunily. This fund is represented by cash at Ihe bank. Care lund - This fund arose from fundraising, donations received gnd grants received. This fund is used to further support our T8si¢Jenls, both existing and new, along Wlth their famili&$ and friènds. This fund is represented by cash at bank and tangible fixed assets. Page 26 Continued... uoen's Hou$9 Kelso Limited Notgs to the Cons for the Ildat Flnancial Statements - contlnued ear ended 31st December 24. Rel¥ted party disclosures sactions with sub iaries Ch8ritsble Com an onl Angraflal Development Company Limited is a fL>lly own8d subsidiary ol Queen's House IKelsol L4mited. During the year Queen's House IKelsol Limited paid for goods and servic*$ totalling £173 (2024 £11.6671 on behalf of Anoraflal Development Company Limited. During the year aueen's House IKeL801 Limited paid rent of £300.00012024 - £300,000) to Angr8fl31 Developmenl Company Limited. Al 31st December 2025 Aftgraftai Development Company Limited w&ie due Queen'5 HoLtse (Kelsol Limited £4.182,762 12024 £4,049,4891- This loan is unsecured, interest free and is repayable on demand. Transa tions wtlh olhei related riles Charitable Com an ond Grou During the year unconditsonal dofialions received from Truslees and related parties amunted lo £30 12024- £175). Dvrino the year Queen's House IKelsol Limtted paid for goods and servic05 totalling £348 12024 £5,235) on behalf of Cc>mmunrties Connected IS¢otlandl Ltd. At 3151 Llecember 2025 Communilies Connected (Scotland) Ltd were due Queen'5 House (Kelsol Limited £NIL12024 - £5,235). Page 27