Charity registration number SC015748 (Scotland)
## RED HOUSE HOME TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
## RED HOUSE HOME TRUST
## LEGAL AND ADMINISTRATIVE INFORMATION
|Governors/Trustees|Mr A Knowles (Chair)||
|---|---|---|
||Mr J Tait||
||Mrs S Carradice||
||Mrs S Williams||
||Mr P Richardson (ex officio)||
||Mrs A Hoffman|(Resigned 5 March 2025)|
||Mr I Clark||
||Rev H Cohen||
|Charity number Scotland|SC015748||
|Secretaries and Treasurers|Azets||
||Quay 2||
||139 Fountainbridge||
||Edinburgh||
||EH3 9QG||
|Independent Examiner|Kevin Cattanach C.A.||
||Whitelaw Wells||
||Chartered Accountants||
||9 Ainslie Place||
||Edinburgh||
||EH3 6AT||
|Bankers|Virgin Money||
||83 George Street||
||Edinburgh||
||EH2 3ES||
|Investment Advisors|RBC Brewin Dolphin||
||6th Floor, Atria One||
||144 Morrison Street||
||Edinburgh||
||EH3 8EX||
|Solicitors|Lindsay WS||
||Caledonian Exchange||
||19A Canning Street||
||Edinburgh||
||EH3 8HE||
## RED HOUSE HOME TRUST
## CONTENTS
||Page|
|---|---|
|Governors' report|1 - 3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7 - 13|
## RED HOUSE HOME TRUST
## GOVERNORS' REPORT
## FOR THE YEAR ENDED 31 DECEMBER 2025
The Governors present their annual report and financial statements for the year ended 31 December 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 Trust's deed of trust, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) 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
## Objectives
The objectives of the Trust are to promote education and training of young persons under the age of 22 who are in need of care, or are living in deprived circumstances, or otherwise require assistance in adjusting to independent living.
## Review of activities
During the year the Trust continued to support young people in the local community both as individuals and through local organisations. This is achieved by awarding grants as disclosed in note 6.
## Grant making policy
In accordance with the objectives of the Trust, grants are made to individuals and groups for the education and training of young people under the age of 22 residing in East Lothian.
The availability of grants is advertised through schools and other organisations. Details of, and means of applying for, grants are listed on the website.
A standard application form is used to provide the information required for Governors to decide which individuals and groups should receive grants.
The Trust does not undertake regular core funding of university fees for individuals and currently does not fund salary or core costs for organisations. Any grant given would be for a specific purpose, for one year, with no longer term commitment.
## Achievements and performance
The Trust awarded grants to the value of £9,030 (2024: £9,458). Due to one grant from prior year not being claimed, grants paid in the year were £8,782 (2024: £9,308).
## Financial review
During the year the Trust’s income amounted to £17,106 (2024: £18,684). After grants and expenses are deducted the net expenditure for the year before movements on investments amounted to £13,049 (2024: net expenditure of £9,281). After movements on investments the net movement in funds generated a net income of £18,934 (2024: £16,248).
The value of fixed asset investments at 31 December 2025 increased to £586,865 (2024 - £569,331).
At the balance sheet date the unrestricted reserves were £593,129 (2024 - £574,195). There are no restricted funds.
- 1 -
## RED HOUSE HOME TRUST
## GOVERNORS' REPORT (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## Reserves policy
Grants are paid out of investment and other income after deduction of administrative expenses. Revenue surpluses brought forward from previous years are available if there is a shortfall. Endowment funds are not normally used for revenue purposes although there is no restriction as such.
At the year end £593,129 reserves are held, £479,521 being endowment funds and £113,608 being unrestricted general funds. Whilst there is no prohibition over spending the endowment fund, the long-term practice is that these monies are held as an investment to generate future income. These funds comprise income and surpluses retained over the history of the Trust. Free reserves at 31 December 2025, being those not tied up in the investment portfolio, amounted to £6,264 (2025 - £4,864).
The Trust attempts to maintain a cash balance in excess of the average quarterly expenditure, which in the year under review amounted to approximately £7,539, cash at the year end of £8,123 was over this threshold. The charity continues to hold a investment portfolio with market value in excess of £500,000 which can be readily converted to cash if required.
## Investment policy
The Governors engage RBC Brewin Dolphin as fund managers to manage the portfolio on a discretionary basis. The investment objective is one of a balanced portfolio subject to a medium degree of risk. No investments are made in tobacco companies but otherwise there are no specific investment restrictions or limitations applied to the portfolio. Due to the portfolio now being managed on a Total Return basis there is no revenue income target on the portfolio. However the Trust have agreed that a quarterly amount should be paid to the portfolio which is made of income and capital returns. The performance of the portfolio is bench marked against a bespoke bench mark. The fund managers meet the Governors at least once a year and one of the Governors has been given the responsibility of monitoring the portfolio on a regular basis. The Governors are satisfied with the investment performance during the year.
## Risk management policy
The Governors have assessed the major risks to which the Trust is exposed and are satisfied that systems are in place to mitigate those risks. The variability of investment returns and of the market value of investments are considered to be the charity’s major financial risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. The Trust recognises that the nature of financial markets will generate fluctuations in market value and investment level on a year by year basis, but consider this appropriate when managed on a long-term basis.
## Structure, governance and management
The Red House Home Trust was constituted under a deed of trust in 1931 when its principal objective at that time was to provide a home for children. The trust deed was amended in 1980 and again in 1992.
The Governors who served during the year and up to the date of signature of the financial statements are listed
on the charity information page.
The management of the Trust is the responsibility of the Governors who consist of the Headmaster of Loretto School and eight other Governors (maximum of nine governors, there are currently two vacancies).
## Appointment, induction and training of Governors
New Governors are provided with a copy of the constitution, the annual report and accounts and are briefed as to their duties by the Chairman and Secretary. From time to time the Governors are updated on their duties and responsibilities.
In the case of a vacancy caused by the expiry of the normal term of office, a successor shall be elected at the Annual General Meeting. In the case of a Governor who has vacated office before the end of their normal term of office it is in the power of the governing body to co-opt a Governor to hold office until the ensuing annual meeting. A new successor shall be elected and the co-opted Governor is eligible.
## Decision-making process
The Governors normally meet three times a year to decide on grants to be made and to administer the Trust. The Governors have appointed Secretaries & Treasurers to handle day to day administration.
- 2 -
## RED HOUSE HOME TRUST
## GOVERNORS' REPORT (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## Statement of Governors' responsibilities
The Governors are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in Scotland requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.
In preparing these financial statements, the Governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Governors are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## Plans for Future Periods
The Governors wish to continue to support young people in East Lothian.
The Governors' report was approved by the Board of Governors.
## Alastair Knowles
## Alastair Knowles
Governor Dated: 3 June 2026
- 3 -
## RED HOUSE HOME TRUST
## INDEPENDENT EXAMINER'S REPORT
## TO THE GOVERNORS OF RED HOUSE HOME TRUST
I report on the financial statements of the Trust for the year ended 31 December 2025, which are set out on the statement of financial activities, balance sheet, and related notes.
## Respective responsibilities of Governors and examiner
The Trust's Governors are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Trust's Governors consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention
## Basis of independent examiner's statement
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the Trust and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the Governors concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
## Independent examiner's statement
In the course of my examination, no matter has come to my attention:
- (a) which gives me reasonable cause to believe that in any material respect the requirements:
- (i) to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
- (ii) to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations.
have not been met; or
- (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Kevin Cattanach C.A. Whitelaw Wells Chartered Accountants 9 Ainslie Place Edinburgh EH3 6AT
Dated: .........................
- 4 -
## RED HOUSE HOME TRUST
## STATEMENT OF FINANCIAL ACTIVITIES
## FOR THE YEAR ENDED 31 DECEMBER 2025
|Unrestricted Endowment
funds
funds
2025
2025
Notes
£
£
Income from:
Investments
3
17,106
-
Expenditure on:
Raising funds
4
-
7,842
Charitable activities
5
18,068
4,245
Total expenditure
18,068
12,087
Net (losses)/gains on
investments
9
-
31,983
Net movement in funds
(962)
19,896
Fund balances at 1 January
2025
114,570
459,625
Fund balances at 31
December 2025
113,608
479,521|Total Unrestricted Endowment
funds
funds
2025
2024
2024
£
£
£
17,106
18,684
-
7,842
-
7,805
22,313
16,941
3,219
30,155
16,941
11,024
31,983
-
25,529
18,934
1,743
14,505
574,195
112,827
445,120
593,129
114,570
459,625|Total
2024
£
18,684|
|---|---|---|
|||7,805
20,160|
|||27,965|
|||25,529|
|||16,248
557,947|
|||574,195|
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 5 -
## RED HOUSE HOME TRUST
## BALANCE SHEET
## AS AT 31 DECEMBER 2025
|Notes
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Funds
Endowment funds
Unrestricted funds|2025
£
3,169
8,123
11,292
(5,028)|£
586,865
6,264
593,129
479,521
113,608
593,129|2024
£
2,115
11,215
13,330
(8,466)|£
569,331
4,864|
|---|---|---|---|---|
|||||574,195|
|||||459,625
114,570|
|||||574,195|
The financial statements were approved by the Governors on 3 June 2026
## Alastair Knowles
Alastair Knowles Governor
- 6 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 DECEMBER 2025
## 1 Accounting policies
## Charity information
Red House Home Trust is a public benefit entity as defined by FRS 102.
## 1.1 Accounting convention
The financial statements have been prepared in compliance with 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 Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The Trust has taken advantage of the provisions in the SORP not to prepare a Statement of Cash Flows.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## 1.2 Going concern
At the time of approving the financial statements, the Governors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors 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 order to ensure that funds are available for specific projects, certain funds are set aside and designated by the trustees into separate funds. Restricted funds are those which have been given to the Trust for use in accordance with the wishes of donors, commonly for use in relation to a specific service.
## 1.4 Income
Income is recognised when the Trust 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.
Investment income interest is recognised using the effective interest rate applicable to the asset. Royalties are recognised on an accruals basis. Dividend income is recognised when the right to receipt is established and is measured at the fair value.
- 7 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 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.
Expenditure is recognised on an accruals basis and related where practicable to the Trust’s activities. Where possible, expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Where this is not possible it is allocated on the basis of time spent by staff on that activity.
Costs of raising funds comprises those costs which are associated with the generation of income from sources other than undertaking charitable activities, and includes investment management costs.
Charitable expenditure comprise those costs incurred by the Trust in the delivery of its charitable activities and services.
Support costs are apportioned between activities or the basis of time spent by staff on that activity.
## 1.6 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.
Unlisted investments are stated at their fair value at the reporting date.
## 1.7 Financial instruments
The Trust 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 Trust's balance sheet when the Trust 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.
## Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
- 8 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 Accounting policies
(Continued)
## 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 Trust’s contractual obligations expire or are discharged or cancelled.
## 2 Critical accounting estimates and judgements
In the application of the Trust’s accounting policies, the Governors 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.
The Governors are of the opinon that there are no such critical accounting estimates and judgements that will have a material impact on the financial statements.
## 3 Income from investments
||Unrestricted|Unrestricted|
|---|---|---|
||funds|funds|
||2025|2024|
||£|£|
|Other income|17,106|18,684|
- 9 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## 4 Raising funds
||Endowment|Endowment|
|---|---|---|
||funds|funds|
||general|general|
||2025|2024|
||£|£|
|Administrative costs|2,981|2,943|
|Investment management|4,861|4,862|
||7,842|7,805|
During the current and prior years, all expenditure on raising funds was allocated to endowment funds.
## 5 Expenditure on charitable activities
||Grants|Grants|
|---|---|---|
||payable|payable|
||2025|2024|
||£|£|
|Direct costs|||
|Grant funding of activities (see note 6)|8,782|9,308|
|Share of support and governance costs (see note 7)|||
|Support|5,041|4,449|
|Governance|8,490|6,403|
||22,313|20,160|
|Analysis by fund|||
|Unrestricted funds|18,068|16,941|
|Endowment funds|4,245|3,219|
||22,313|20,160|
- 10 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## 6 Grants payable
|Grants payable|||
|---|---|---|
||Grants|Grants|
||payable|payable|
||2025|2024|
||£|£|
|Grants to institutions (6 organisations):|||
|Musselburgh Grammar School|-|2,200|
|Can Do|-|1,000|
|The Space Scotland CIC|320|-|
|Bridges Project|3,100|600|
|Ross High|1,500|-|
|The Fraser Centre|-|300|
|Branch Out Together|820|-|
|The Ridge SCIO|700|-|
|Teens Plus|1,000|-|
||7,440|4,100|
|Grants to individuals (2 grants)|1,342|5,208|
||8,782|9,308|
|7
Support costs
Support
costs
Governance
costs
£
£
Finance and
administration
5,041
-
Secretary and treasurer
-
4,478
Independent Examiner
fees
-
2,152
Legal Fees
-
1,860
5,041
8,490
Analysed between
Charitable activities
5,041
8,490|2025
Support
costs
Governance
costs
£
£
£
5,041
4,449
-
4,478
-
4,414
2,152
-
1,989
1,860
-
-
13,531
4,449
6,403
13,531
4,449
6,403|2024
£
4,449
4,414
1,989
-|
|---|---|---|
|||10,852|
|||10,852|
## 8 Governors
None of the Governors (or any persons connected with them) received any remuneration or benefits from the Trust during the year.
The trust has no employees during the current or prior years.
- 11 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## 9 Gains and losses on investments
||Endowment|Endowment|
|---|---|---|
||funds|funds|
||2025|2024|
|Gains/(losses) arising on:|£|£|
|Revaluation of investments|24,968|24,560|
|Sale of investments|7,015|969|
||31,983|25,529|
## 10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
## 11 Fixed asset investments
|||Listed|Cash in|Total|
|---|---|---|---|---|
|||investments|portfolio||
|||£||£|
||Cost or valuation||||
||At 1 January 2025|568,244|1,087|569,331|
||Additions|163,927|-|163,927|
||Valuation changes|24,968|-|24,968|
||Cash changes|-|(1,020)|(1,020)|
||Disposals|(170,341)|-|(170,341)|
||At 31 December 2025|586,798|67|586,865|
||Carrying amount||||
||At 31 December 2025|586,798|67|586,865|
||At 31 December 2024|568,244|1,087|569,331|
|12|Debtors||||
||||2025|2024|
||Amounts falling due within one year:||£|£|
||Other debtors||3,169|2,115|
- 12 -
## RED HOUSE HOME TRUST
## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
## FOR THE YEAR ENDED 31 DECEMBER 2025
## 13 Creditors: amounts falling due within one year
|Creditors: amounts falling due within one year|||
|---|---|---|
|Other creditors
Accruals and deferred income|2025
£
3,319
1,709
5,028|2024
£
3,590
4,876|
|||8,466|
## 14 Analysis of net assets between funds
|Unrestricted
Endowment
funds
funds
2025
2025
£
£
At 31 December 2025:
Investments
107,344
479,521
Current assets/(liabilities)
6,264
-
113,608
479,521
Unrestricted
Endowment
funds
funds
2024
2024
£
£
At 31 December 2024:
Investments
109,706
459,625
Current assets/(liabilities)
4,864
-
114,570
459,625|Total
2025
£
586,865
6,264|
|---|---|
||593,129|
||Total
2024
£
569,331
4,864|
||574,195|
## 15 Related party transactions
There were no disclosable related party transactions during the year (2024 - none).
- 13 -