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2025-08-31-accounts

Company registration number SC108570 (Scotland) Charity registration number SC015243 (Scotland)

GARVALD HOME FARM LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

GARVALD HOME FARM LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Huw Sheppard - Chairman
Alastair Pate - Treasurer
D Callan
J Cochrane
P Darwell
C Wannap
S Harrison (Appointed 10 December
2025)
Secretary M Brett
Charity number (Scotland) SC015243
Company number SC108570
Registered office Dolphinton
West Linton
EH46 7HJ
Auditor Thomson Cooper
22 Stafford Street
Edinburgh
EH3 7BD

GARVALD HOME FARM LIMITED

CONTENTS

Page
Directors' report 1 - 4
Independent auditor's report 5 - 7
Statement of financial activities 8 - 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

GARVALD HOME FARM LIMITED

DIRECTORS' REPORT (INCLUDING TRUSTEES REPORT) FOR THE YEAR ENDED 31 AUGUST 2025

The directors present their annual report and financial statements for the year ended 31 August 2025.

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 Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 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).

Objectives and activities

Garvald Home Farm offers long-term homes and work in an agricultural setting for a small community of adults with special needs and co-workers. The whole enterprise is founded on the philosophy of Rudolf Steiner and the farm follows the bio- dynamic method of agriculture. The aim is to grant people with learning disabilities an independent lifestyle at a level they can sustain and to allow them to experience at first hand basic farming activities, wood processing skills and organic food production. The farm also offers educational visits to school pupils to allow them to experience work with livestock and organic food production from farming activities.

The work of the farm and the beef and dairy enterprise has continued.

Work on adopting the supported living model of care progressed throughout the year. In addition work to complete the alterations required to complete the independent living areas have now been finished. The first cabin has been completed with final building warrant approval and completion certificates received. All were completed after the year end culminating in the change in registration to supported living with effect from 1 May 2026. It is expected that the second cabin will be constructed later in the year.

Achievements and performance

Two residents left during the year and, with the anticipated change in registration status to a supported living model, these places could not be immediately filled. At the time of writing a number of suitable replacements have been identified and the process to fill both these spaces are at an advanced stage. The new cabin is occupied with effect from 1 May 2026.

Meat and dairy production and sales are building slowly and firewood production continues.

It is pleasing to report that the cultural and social aspects of life at the farm continue.

The directors acknowledge and appreciate the work of staff to continue the high quality service provided by Garvald Farm. This has been a particularly challenging period with all the work and changes to practices required to meet the changed model none of which could have been accomplished without the management, direct input and support of all the staff who have been instrumental in both driving and making the necessary changes. Hopefully the next year will be a more settling one!

Financial review

The charity had total income for the year of £545,193 (2024: £578,890) and total expenditure of £607,924 (2024: £597,134), resulting in a deficit for the year of £62,731 (2024: £18,244).

GARVALD HOME FARM LIMITED

DIRECTORS' REPORT (INCLUDING TRUSTEES REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Reserves Policy

The Company seeks to maintain free cash reserves equivalent to at least 3 months of overheads excluding any charges relating to the depreciation or amortisation of Fixed Assets. Free cash reserves exclude cash received and earmarked for specific projects.

The designated funds total £698,198 (2024: £731,533) represent expenditure made on fixed assets less depreciation and finance on the assets. Restricted funds of £45,094 (2024: £39,420) are held to invest in the cabin development.

At 31 August 2025 free reserves amounted to £118,752 (2024: £153,822) which is equivalent to 22% of annual expenditure or expenditure for just under 3 months.

Risk Management

The Board have identified and addressed the following main risk areas facing the charity as follows:

  1. The requirement to comply with legislation, regulations, standards & guidance for residential and day care of adults with additional support needs: The residential home and farm are led by an experienced management team and trustees and is subject to external inspection by regulatory bodies including local authorities, Care Inspectorate and fire and rescue services.

  2. Financial risks arise from lower than budgeted occupancy levels, inadequate financial controls and substantially increased staffing costs: The Board takes a strategic role for the financial planning of the charity and receives regular updates on the Community’s financial position and is supported by professional advisers.

  3. The Covid19 pandemic was a major risk to the health and welfare of residents and staff. Scottish Government and Public Health guidelines continue to be followed as required with staff and residents regularly monitored for signs of Covid19 infection.

The directors regularly review all the risks to which the charity is exposed and the procedures in place to manage these risks.

Plans for future periods

The charity will continue to work in a meaningful way with residents to secure a long- term independent future for them. The adoption of the supported living model is now in place and this should provide the possibility for new and interesting ways to develop life at the farm. Plans for the development of the second self-contained cabin accommodation continues and completion of that is expected in later in the current year.

The charity aims to continue to improve the farm output of bio-dynamic products as well as firewood.

Structure, governance and management

Governing Document

Garvald Home Farm Limited is a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association dated 1 October 1987. The liability of each member is limited to £5. It is a registered charity with the Office of the Scottish Charity Regulator (OSCR) and its residential service is registered and monitored by the Care Inspectorate.

GARVALD HOME FARM LIMITED

DIRECTORS' REPORT (INCLUDING TRUSTEES REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

The directors who served during the year and up to the date of signature of the financial statements are listed below.

Huw Sheppard - Chairman Alastair Pate - Treasurer D Callan J Cochrane P Darwell J Jackson (Resigned 30 September 2025) C Wannap S Harrison (Appointed 10 December 2025)

Steve Harrison who was co-opted to the Board in December 2025 offers himself for election. Peter Darwell retires by rotation and being eligible offers himself for re- election. The Directors did not receive any remuneration or refund of expenses.

Appointment of new Directors

Directors are appointed at the Company’s Annual General meeting. Directors can be co-opted during the year and these new appointments stand for election at the following Annual General meeting.

Recruitment of new Directors

The Directors are recruited to maintain a balance of skills within the Board. Most appointments come from parties who already know the work of Garvald Home Farm and who have visited and attended events held at the Farm.

Structure

The Directors appoint the residential manager, the farm manager and the meat and dairy enterprise manager, carry out financial management and are available to assist the managers on more complex issues. The residential manager is responsible for placement of residents, the engagement and training of staff and the day to day management of the residential home. The farm and enterprise managers are each responsible for their respective enterprises. The Directors meet on average four times a year to receive reports from the manager and farmer and to carry out management and financial reviews.

Induction and Training of Directors

New directors are briefed on their legal obligations under charity law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, and recent performance of the charity. Directors are encouraged to attend appropriate external training events where these facilitate the undertaking of their role.

Key Management Remuneration Policy

The key management of the charity during the year consisted of two residential management staff and the farm manager.

GARVALD HOME FARM LIMITED

DIRECTORS' REPORT (INCLUDING TRUSTEES REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025

Statement of directors' responsibilities

The directors, who also act as trustees for the charitable activities of Garvald Home Farm Limited are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The directors' report was approved by the Board of Directors.

Huw Sheppard - Chairman

Chair

29 May 2026

GARVALD HOME FARM LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE DIRECTORS OF GARVALD HOME FARM LIMITED

Opinion

We have audited the financial statements of Garvald Home Farm Limited (the ‘charity’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 directors' 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 directors are responsible for the other information contained within the annual report. 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.

GARVALD HOME FARM LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF GARVALD HOME FARM 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 Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the statement of directors' responsibilities, the directors 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 directors 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 directors are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of grant income and the posting of transactions to the correct funds. We discussed these risks with management, designed audit procedures to test the timing and existence of donations and grant income, including reviewing of grant paperwork and terms and conditions, reviewing the allocation of costs against the correct funding and reviewed areas of judgement for indicators of management bias.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards). We focused on specific laws and regulations which may have a direct material effect on the financial statements or operation of the charity, including the Charities and Trustees Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended),

We assessed the extent of compliance of the laws and regulations identified above by inspecting any legal correspondence, the Care Inspectorate report and making enquiries of management.

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

GARVALD HOME FARM LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF GARVALD HOME FARM LIMITED

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.

We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. However, the primary responsibi.lity for the prevention and detection of fraud rests with the trustees. To address the risk of fraud we identified internal controls established to identify risk, performed analytical procedures to identify unusual movements, assessed any judgements and assumptions made in determining accounting estimates, reviewed journal entries for unusual transactions and identified related parties.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charity’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 charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Senior statutory auditor exemption

Thomson Cooper is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Fiona Haro (Senior Statutory Auditor) for and on behalf of Thomson Cooper, Statutory Auditors Edinburgh

29-05-26 .........................

GARVALD HOME FARM LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2025

Current financial year

Unrestricted
Designated
Restricted
funds
funds
funds
2025
2025
2025
Notes
£
£
£
Income from:
Donations and legacies
2
979
-
30,000
Charitable activities
3
504,249
-
8,581
Investments
4
1,384
-
-
Total income
506,612
-
38,581
Expenditure on:
Charitable activities
5
531,639
71,105
5,180
Net (outgoing)/incoming resources before
transfers
(25,027)
(71,105)
33,401
Gross transfers between funds
(10,043)
37,770
(27,727)
Net (expenditure)/income for the year/
Net movement in funds
(35,070)
(33,335)
5,674
Fund balances at 1 September 2024
153,822
731,533
39,420
Fund balances at 31 August 2025
118,752
698,198
45,094		 Total
2025
£
30,979
512,830
1,384
545,193
607,924
(62,731)
-
(62,731)
924,775
862,044		 Total
2024
£
43,213
533,889
1,788
578,890
597,134
(18,244)
-
(18,244)
943,019
924,775

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

GARVALD HOME FARM LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2025

Prior financial year

Unrestricted
Designated
Restricted
funds
funds
funds
2024
2024
2024
Notes
£
£
£
Income from:
Donations and legacies
2
2,346
-
40,867
Charitable activities
3
531,353
-
2,536
Investments
4
1,788
-
-
Total income
535,487
-
43,403
Expenditure on:
Charitable activities
5
520,055
74,543
2,536
Total expenditure
520,055
74,543
2,536
Net (outgoing)/incoming resources before transfers
15,432
(74,543)
40,867
Gross transfers between funds
(125,352)
200,933
(75,581)
Net (expenditure)/income for the year/
Net movement in funds
(109,920)
126,390
(34,714)
Fund balances at 1 September 2023
263,742
605,143
74,134
Fund balances at 31 August 2024
153,822
731,533
39,420		 Total
2024
£
43,213
533,889
1,788
578,890
597,134
597,134
(18,244)
-
(18,244)
943,019
924,775

GARVALD HOME FARM LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2025

2025
Notes
£
Fixed assets
Tangible assets
10
Current assets
Stocks
11
65,782
Debtors
12
45,452
Cash at bank and in hand
158,270
269,504
Creditors: amounts falling due within
one year
15
(107,954)
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
18
Unrestricted funds-general
Designated funds
19
698,198
General unrestricted funds
118,752		 2024
£
£
700,494
72,052
41,088
183,178
296,318
(115,212)
161,550
862,044
-
862,044
45,094
731,533
153,822
816,950
862,044		 £
745,963
181,106
927,069
(2,294)
924,775
39,420
885,355
924,775

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Directors on 29 May 2026

Huw Sheppard - Chairman Trustee

Alastair Pate - Treasurer Trustee

Company registration number SC108570

GARVALD HOME FARM LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Payment of obligations under finance leases
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
£
(25,636)
1,384
(12,137)		 £
11,481
(24,252)
(12,137)
(24,908)
183,178
158,270		 2024
£
(97,835)
1,788
(30,880)		 £
115,063
(96,047)
(30,880)
(11,864)
195,042
183,178

GARVALD HOME FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1 Accounting policies

Charity information

Garvald Home Farm Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Dolphinton, West Linton, EH46 7HJ.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, 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 directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least 12 months. Thus the directors 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 directors in furtherance of their charitable objectives.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. The aim of each designated fund is set out in the notes to the financial statements. The Trustees have the discretion to undesignate these funds at any time, returning them to general reserves

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.

GARVALD HOME FARM LIMITED

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

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.

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. Expenditure is capitalised as a fixed asset where it represents either a new asset or an enhancement to an existing asset. Depreciation is provided at the following annual rates and charged to the designated Capital Fund in order to write off each asset over its expected useful life less estimated residual value. No depreciation is provided on building expenditure which is partly completed.

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:

Leasehold land and buildings 10 and 20 years straight line
Tractors and implements 25% reducing balance
Motor vehicles 20% reducing balance

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 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).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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.

GARVALD HOME FARM LIMITED

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

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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.

1.13 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

GARVALD HOME FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

2 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2025
2025
£
£
Donations and gifts
979
30,000
979
30,000
Unrestricted
Restricted
funds
funds
For the year ended 31 August 2024
general
2024
2024
£
£
Donations and gifts
2,346
867
Grants
-
40,000
2,346
40,867
3
Charitable activities
Residential &
Day Care
Farm
Wood
Processing
2025
2025
2025
£
£
£
Farm and wood sales
-
71,226
20,888
Care fees
412,031
-
-
Other income
8,685
-
-
420,716
71,226
20,888
For the year ended 31 August 2024
Residential &
Day Care
Farm
Wood
Processing
2024
2024
2024
£
£
£
Farm and wood sales
-
62,925
20,766
Care fees
447,537
-
-
Other income
2,661
-
-
450,198
62,925
20,766		 Total
2025
£
30,979
30,979
Total
2024
£
3,213
40,000
43,213
Total
2025
£
92,114
412,031
8,685
512,830
Total
2024
£
83,691
447,537
2,661
533,889

GARVALD HOME FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

4 Income from investments

Interest receivable
Charitable activities
Residential
Day Care
2025
£
Staff costs
250,553
Depreciation and impairment
44,319
Farm costs
35,370
Household costs
81,550
Resident costs
4,427
Wood processing costs
-
Rent
15,390
Insurance
18,771
Motor expenses
9,346
Telephone
1,292
Subscriptions
4,028
465,046
Share of support costs (see note 6)
19,871
Share of governance costs (see note 6)
8,610
493,527
Analysis by fund
Unrestricted funds - general
444,028
Unrestricted funds - designated
44,319
Restricted funds
5,180
493,527		 Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
1,384
1,788
Farm
Wood
Processing
Total
2025
2025
2025
£
£
£
32,375
8,094
291,022
24,372
2,414
71,105
32,491
-
67,861
-
-
81,550
-
-
4,427
-
2,921
2,921
7,900
-
23,290
2,086
-
20,857
1,038
-
10,384
258
-
1,550
448
-
4,476
100,968
13,429
579,443
-
-
19,871
-
-
8,610
100,968
13,429
607,924
76,596
11,015
531,639
24,372
2,414
71,105
-
-
5,180
100,968
13,429
607,924		 Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
1,384
1,788
Farm
Wood
Processing
Total
2025
2025
2025
£
£
£
32,375
8,094
291,022
24,372
2,414
71,105
32,491
-
67,861
-
-
81,550
-
-
4,427
-
2,921
2,921
7,900
-
23,290
2,086
-
20,857
1,038
-
10,384
258
-
1,550
448
-
4,476
100,968
13,429
579,443
-
-
19,871
-
-
8,610
100,968
13,429
607,924
76,596
11,015
531,639
24,372
2,414
71,105
-
-
5,180
100,968
13,429
607,924
Total
2025
£
291,022
71,105
67,861
81,550
4,427
2,921
23,290
20,857
10,384
1,550
4,476
579,443
19,871
8,610
607,924
531,639
71,105
5,180
607,924

5 Charitable activities

GARVALD HOME FARM LIMITED

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

Charitable activities
For the year ended 31 August 2024
Residential
Day Care
2024
£
Staff costs
241,420
Depreciation and (gain)/loss on disposal
42,391
Farm costs
25,146
Household costs
97,852
Resident costs
11,789
Wood processing costs
-
Rent
15,390
Insurance
17,391
Motor expenses
8,901
Telephone
1,244
Subscriptions
2,200
463,724
Share of support costs (see note 6)
20,133
Share of governance costs (see note 6)
5,775
489,632
Analysis by fund
Unrestricted funds - general
444,705
Unrestricted funds - designated
42,391
Restricted funds
2,536
489,632
Support costs allocated to activities
Basis of allocation
Staff costs
Time spent
Rent
Direct
Printing and stationery
Direct
Telephone
Direct
Bank charges
Direct
Accounting and payroll
Direct
Professional fees
Direct
Website costs
Direct
Interest payable
Direct
Sundry expenses
Direct
Governance costs
Direct
Analysed between:
Residential Day Care		 (Continued)
Farm
Wood
Processing
Total
2024
2024
2024
£
£
£
30,328
7,582
279,330
27,115
5,037
74,543
25,146
-
50,292
-
-
97,852
-
-
11,789
-
1,394
1,394
7,610
-
23,000
1,932
-
19,323
989
-
9,890
124
-
1,368
245
-
2,445
93,489
14,013
571,226
-
-
20,133
-
-
5,775
93,489
14,013
597,134
66,374
8,976
520,055
27,115
5,037
74,543
-
-
2,536
93,489
14,013
597,134
2025
2024
£
£
7,775
7,251
1,710
1,710
783
812
1,034
1,121
623
612
1,269
1,270
4,381
5,632
73
53
607
607
1,616
1,065
8,610
5,775
28,481
25,908
28,481
25,908		 (Continued)
Farm
Wood
Processing
Total
2024
2024
2024
£
£
£
30,328
7,582
279,330
27,115
5,037
74,543
25,146
-
50,292
-
-
97,852
-
-
11,789
-
1,394
1,394
7,610
-
23,000
1,932
-
19,323
989
-
9,890
124
-
1,368
245
-
2,445
93,489
14,013
571,226
-
-
20,133
-
-
5,775
93,489
14,013
597,134
66,374
8,976
520,055
27,115
5,037
74,543
-
-
2,536
93,489
14,013
597,134
2025
2024
£
£
7,775
7,251
1,710
1,710
783
812
1,034
1,121
623
612
1,269
1,270
4,381
5,632
73
53
607
607
1,616
1,065
8,610
5,775
28,481
25,908
28,481
25,908
571,226
20,133
5,775
597,134
520,055
74,543
2,536
597,134
2024
£
7,251
1,710
812
1,121
612
1,270
5,632
53
607
1,065
5,775
25,908
25,908

GARVALD HOME FARM LIMITED

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

6
Support costs allocated to activities
Governance costs comprise:
Audit fees
Accountancy		 (Continued)
2025
2024
£
£
4,950
4,690
3,660
1,085
8,610
5,775		 (Continued)
2025
2024
£
£
4,950
4,690
3,660
1,085
8,610
5,775
5,775

7 Directors

None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
Other staff costs		 2025
Number
18
2025
£
271,060
14,722
8,314
4,701
298,797		 2024
Number
16
2024
£
259,306
15,059
7,740
4,476
286,581

The directors consider the residential and farm managers as the key management personnel. The total remuneration and employee benefits of the key management personnel of the charity during the year was £116,852 (2024 : £109,062).

There were no employees whose annual remuneration was more than £60,000.

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

GARVALD HOME FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

10
Tangible fixed assets
Cost
At 1 September 2024
Additions
At 31 August 2025
Depreciation and impairment
At 1 September 2024
Depreciation charged in the year
At 31 August 2025
Carrying amount
At 31 August 2025
At 31 August 2024		 Leasehold
land and
buildings
Tractors and
implements
£
£
1,324,698
169,351
24,326
1,309
1,349,024
170,660
634,368
133,867
57,877
9,199
692,245
143,066
656,779
27,594
690,330
35,483		 Motor
vehicles
£
36,291
-
36,291
16,140
4,030
20,170
16,121
20,150		 Total
£
1,530,340
25,635
1,555,975
784,375
71,106
855,481
700,494
745,963

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £6,628 (2024 - £8,696) for the year.

Tractors and implements
Motor vehicles
11
Stocks
Finished goods and goods for resale
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2025
£
14,766
6,824
21,590
2025
£
65,782
2025
£
7,040
6,213
32,199
45,452		 2024
£
19,688
8,531
28,219
2024
£
72,052
2024
£
15,370
10,877
14,841
41,088

GARVALD HOME FARM LIMITED

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

13 Designated Bank Accounts

The charity operates designated bank accounts on behalf of the residents. At 31 August 2025 the bank balance includes £33,870 (2024 - £60,013) which is also included in the other creditors figure.

14 Finance lease obligations

Future minimum lease payments due under finance leases:

Within one year
Within two and five years		 2025
£
2,294
-
2,294		 2024
£
12,137
2,294
14,431

Finance lease payments represent rentals payable by the company for certain items of tractors and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

15 Creditors: amounts falling due within one year

Notes
Obligations under finance leases
14
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Obligations under finance leases
14
17
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2025
£
2,294
10,335
29,951
35,409
29,965
107,954
2025
£
-
2025
£
8,314		 2024
£
12,137
5,000
19,043
61,414
17,618
115,212
2024
£
2,294
2024
£
7,740

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.

GARVALD HOME FARM LIMITED

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

18 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.

Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at
1 September resources expended 31 August
2024 2025
£ £ £ £ £
Log Cabin development 39,320 30,000 - (24,326) 44,994
Staff Wellbeing fund 100 - - - 100
Garvald Trust Seminar - 8,581 (5,180) (3,401) -
39,420 38,581 (5,180) (27,727) 45,094
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 September resources expended 31 August
2023 2024
£ £ £ £ £
Log Cabin development 74,034 40,867 - (75,581) 39,320
Staff Wellbeing fund 100 - - - 100
Garvald Trust Seminar - 2,536 (2,536) - -
74,134 43,403 (2,536) (75,581) 39,420

Cabin Development

Funding has been received to contribute towards the build of two cabins to provide supported living accommodation. Funding in the year of £25,000 and £5,000 was received from the Nancy Massey Charitable Trust and Foundation Scotland respectively. Cabin 2 will be completed in the 2026 year.

Staff Wellbeing Fund

Small fund for the purpose of staff's wellbeing.

Garvald Trust Seminar

Funding received to cover expenses for this event.

GARVALD HOME FARM LIMITED

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

19 Designated funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Balance at Resources Transfers Balance at
1 September
expended		 31 August
2024 2025
£ £ £ £
Fixed Asset Fund 731,533 (71,105) 37,770 698,198
Balance at Resources Transfers Balance at
1 September
expended		 31 August
2023 2024
£ £ £ £
Fixed Asset Fund 605,143 (74,543) 200,933 731,533
20 Analysis of net assets between funds
Unrestricted Designated Restricted Total
funds funds funds
2025 2025 2025 2025
£ £ £ £
Fund balances at 31 August 2025 are represented
by:
Tangible assets - 700,494 - 700,494
Current assets/(liabilities) 143,752 (2,296) 20,094 161,550
143,752 698,198 20,094 862,044
Unrestricted Designated Restricted Total
funds funds funds
2024 2024 2024 2024
£ £ £ £
Tangible assets - 745,963 - 745,963
Current assets/(liabilities) 153,822 (12,136) 39,420 181,106
Long term liabilities - (2,294) - (2,294)
153,822 731,533 39,420 924,775

GARVALD HOME FARM LIMITED

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

21 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
In over five years
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment		 2025
£
19,000
24,390
43,390
2025
£
21,958		 2024
£
19,000
29,810
48,810
2024
£
24,325

23 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

24
Cash generated from operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
(Increase) in debtors
Increase in creditors
Cash generated from operations		 2025
£
(62,731)
(1,384)
71,105
6,270
(4,364)
2,585
11,481		 2024
£
(18,244)
(1,788)
74,544
6,730
(4,919)
58,741
115,064