MANORI TATES Housing Association MANOR ESTATES HOUSING ASSOCIATION LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Scottish Charity Number SC023106 Registered with the Financial Conduct Authority No. 2484RS Registered Housing Association No. HEP 284
MANOR ESTATES HOUSING ASSOCIATION LIMITED BOARD, EXECUTIVES AND ADVISERS Board lan Crawford (Chair} Phil Rowsby (Vice Chairl Andrew Clark Geoff Kitchener Ilie Raebum Roddy Elliott Laijra Fordyce Jo McFadyen Ainan Groat Shirelle White Zoe Purdie IC-OPted 27 May 20261 Erin Mullen (COpted 27 May 20261 Chief Executive CLqire Ironside Secretary Claire Ironside Registered office Suite 4, 5 New Mart Place Edinburgh EH14 1RW Independent auditor CT Audit Limited 61 Dublin Street Edinburgh EH3 6NL 8ankeTS Royal Bank of Scoland p 36 Sl Andrew Square Edinburgh EH2 24D Solicitors TC Young Melrose House 69 George Street Edinburgh EH2 2JG Financial Conduct Authority No. 2484R{SI Registered with the Scottish Housing Regulator: HEP 284 Scottish Charity Number: SC 0231C6
MANOR ESTATES HOUSING ASSOCIATION LIMITED CONTENTS Page Report of the Board Statement of the Board's responsibilities in respect of internal financial control Independent Auditorfs Report 10-12 Report by the Independent Auditor on Corporate Govemance 13 ststement of Comprehensive Ineome 14 ststement of Changes in Capital & ReseNes 15 Staternent of Financial Position 16 Statement of Cash Flows 17 Notes to the Financial Statements 18-37
MANOR ESTATES HOUSING ASSOCIATION LIMITED REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026 The members of the Board have pleasure in presenting their report on the Association for the year ended 31 March 2026. Principal Activities The principal activity of Manor Estates Housing As)CIation is the development, management and maintenance of housing for people in housing need. Membership of Board Members of the Board during the year {lo the dale of thts report) and their attendance at meetings that they could have attended in the year were.. - Board Attendanee 880 100% 100Y. 1000 880/0 880 100Vo 88° 1000 880 100% Audit Committee Attendance lan Crawford Phil Rowsb Rachel Hutton Andrew Clark Geoff Kitchener Willie Raeburn Rodd Elliott Laura Ford Jo McFad en Ainan Groat Martin Sloan {co-OPted in June. appointed September 2025. resigned on 29 September 2025 Shirelle Wnite Ic(Fopted in June, appointed 3rd tember 2025 Chair ice ChaiF resi ned Se tember 2025 100% 100/ l00V. 80% 33% 83% Business review Introduction: Based on our review of the current position and future forecasts the Board believe il is appropriate lo prepare the financial statements for Manor Estates Housing Association Ltd Ilhe Association or MEHAI on a going concem basis. No foreseeable rnalerial uncertainties Ihal cast significant doubl about the ability ol the Association lo continue as a going concem have been identsfied by the governing body. the Board. The Board is confident that we have sufficient reserves and income to cover the costs of the Association's business over future years and to carry out our long temi planned rnainlenance programme. The Association's main sOue of income is the rent paid by lenanls. In the current economic climate and because of both restrictions lo welfare benefit entitlements and austerity, there Is an increased risk that the Association's success in collecting rents may reduce. The ASSlatIon continues lo maximise its rental income by m8inlaining good performance in managing the level ol Tent arrears and rent lost as a result of properties being void and unlet. This combined with a proaclive approach and a5SiStance provided lo tenants seeking assistance in claiming welfare benefils wll continue lo mib.gale the impacts of reduced income available to tenants as well as the cosl-of-living crisis. The Board receives and reviews a range of key performance indicators and risks al regular intervals. In addition, a mid-year budget review is undertaken. These reviews allow the Board to ensure effective oversight of the Association's operations and financial affairs and lo quickly introduce appropriate or mitigating action should il be necessary. Business Activities During 2025126 thè Association conts.nued Ils major programme of expenditure on managing and maintaining ils properbes. The Association's subsidiary company. Manor Estate5 Associates Limited IMEA Limited)
MANOR ESTATES HOUSING ASSOCIATION LIMrtED REPORT OF THE BOARD (continued) FOR THE YEAR ENDED 31 MARCH 2026 Business Activtties (continued) continued trading, undertaking a nge of coMpleEntary activities. The Association has continued to work through a programme of energy efficiency measures, lo assist in meeting the Energy Efficiency Standard for Social Housing IEESSH11 with minimal exemptions. The Association has included an initial sum for cofflponenl spend profile in ihe 30-year Financial Plan for meeting the Scottish Social Housing Net Zero Standard {SHNZSI across our stock base. No allernalive funding streams have yel been identified that are available to the Associats"on to assisl in meeting the SHNZS largel al the present lime. The Association is still wailing for clarification from Scottish Govemmenl as to all the aspects of the revised SHNZS compliance criteria and bmescale. MEHA shares a Welfare Advice Officer with Muirhouse Housing as%)ciats"on from Community Help and Advice Initiative ICHAII. During 2025126 a total of £363,796 of addilK)nal income was attained for 151 of our lenanls. MEHA has a150 been working in partnership with ARCHIE (Alliance of Registered Co-operatives and Housing Associations, Independent in Edinburgh) members to ptovide an Energy Advice Service. The project supported 87 tenants with energy related issues and achieved £24,790 of financial benefits. The Association became the first landlord in Scouand lo become ac¢xedited by the Dogs Trust for its pel friendly policies and practices. MEHA also provided support to tenants using £22,062 from tts Tenancy Sustainment Fund lo assist 51 tenants with money for essential household items e.g. carpets, flooring, beds and while goods. This included £1,000 loaded lo Charis Shop for new home items and £4,000 added to Gateway Plus Fund for supporting new tenants moving into our homes. Through Ihe fund we were able lo support tenants with access lo Tenants Rewards Scherne, Anti-social behaviour reporting App and assisted tenants wtth downsizing through an incentive scheme payment of £500 each. In addition, we received fijnding for £21,342 through the Scottish Govemment 'Get Settled. Fund. A pilot project to support applicants as part of the 'Ask & Acr proa¢lNe homeless prevention duty that was introduced as part of the Housing (Scollandl Act 2025. Using these funds, we provided £9,000 to Gateway Plus for new home items including furniture such as beds and sofas along with the while goods. The remaining fijnd was used to provide carpets to support tenants lo rnove quickly from temporary accomrnodab"on. The Association completed its second phase of ils development in South Queensferry in December 2025 for 10 terrad family homes and at the end of March 2026 a further 15-. one- and 0-t)edrOOM flats. The Associat'on continues to spend significant sums of money each year maintaining and irnproving its properties, work identified in our regularfy reviewed asset management plan. A programme is in place lo address minor issues in meeting the SHQS and we continue lo seek cooperation to undèrtake works in our rnixed tenure stock. The Association continues to provide factoring services to around 1700 homeowners, principally in estates where we have an interest as a landlord. Administering factoring arrangements while recovering the costs of the factoring service remains a signifieanl area of work for the Association, and we take all practical steps lo ensure the effective management ofdebt. including taking legal action where neSsary. We are a Registered Factor and comply fully with the requiiements of the Property Factors IScolland} Act 2011. Manor Eslales is a member of ARCHIE with a view lo sharing experience, services and knowledge lo enhance services to tenants and the communities wilhin which the organisalion operates. The Association remains committed lo providing high quality services lo all our tenants.
MANOR ESTATES HOUSING ASSOCIATION LIMITED REPORT OF THE BOARD Icontinuedl FOR THE YEAR ENDED 31 MARCH 2026 Board: The Association presently has len Board members. including one lenanl. The Board continues lo set the strategic direction of the Association and is committed lo ensunng that the organisalion adheres lo the highest standards of governance and probity. The Association's Chair and Vice- Chair conb.nue to conduct individual and collective assessments of Board performance as well as holding annual review meetings with any new Board members, where their skills and knowledge are appraised and where both collective and individual training needs are identified. Principal Risks & Uncertainties The Association recognises the irnportan of identifying. evaluating and managing strategic and operational risks, and remains focussed on ensuring events and challenges whh could compromise the Association's ability to deliver SeNiS are minimised. Risk Management addresses a wide spectsum of risks. not just those associated with ftnance, health and safety, business continuity and insurance. It also incorporates those risk5 associated with se1 provision, effectiveness and continuity. public image {reputalion}, compliance with legislal¥)n, regulation and environment. The principal risks frdcing the Association are.. Operatrng environnEnl uncertainty Service failure of a principal contractor Cyber security breach Health & safety Complian failure Repulalional damage Major damage to a propety and lor office Deterioration of the condilK)n of our Estates Stock Condition and Fire Safety Regulations The Association's Risk Management Strategy identtfies tx)th major and minor risks. The Audit Committee, as well as the Board, is responsible for monitoring the management of major risks while management of lower-level risks is delegated lo the Senior Managemenl Team_ Staff The Association keeps rts staff resources under review to ensure that rt continues to be appropriate lo the scale and scope of the organisation's activities and enables us to operate effectively and efficiently in rneeling the strategic objectives set by the Board. The Association continues to engage with Investors in People IIIPI and has Gold accredilalion (March 20251. It remains the objective of the Association to ensure all of ils employees are engaged, developed and resourced lo meet the challenges of providing qual-ty services to our tenants and customers. The Association remain Tnembers of Employers in Voluntary Housing IEVHI and through this engagement ensures that staff terms and conditions are in line with the sector generally and that all aspects of Human Resources and Health and Safety managemenl are effectively operated. The Association remains an accredited employer with Disability ConfidenL an inilialive promoted by Jobcenlre Plus. The Board and senior staff, including the Chief Executive, the Depute Chief Execulivelcorporale Services Director, Housing Management Director and Propety Services Director are defined as the key management personnel within the Asso¢iab"on. Remuneration for all staff including the key management personnel is based on EVH salary scales (further information is ¢x>nlained within note 81. The Board are all voluntary members and receive no remuneration.
MANOR ESTATES HOUSING ASSOCIATION LIMtrED REPORT OF THE BOARD {continued) FOR THE YEAR ENOED 31 MARCH 2026 Financial Review Income and Expenditure Reserve Details of movements in the year are below. under the surplus for the year and transfers to reserves. Surplus for the year The results for the Association are shown in the Statement of Cotnpiehenswe Income on page 13. The surplus for the Association is £1.349.23912025- £1,139.977). The surplus reSued in an increase in reserves to £25,249.647 (2025- £23.807.426) Statement of the Board's Responsibilities The Board is responsible for preparing the report and financial statements in accordan with applicable law and regulations. Slalute requires the Board lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the Associab"on. and of irbcome and expenditure for the year ended on that dale. In preparing these financial statements. the Board is required to.. select suitable accounting poIleS and then apply them consistently., make judgements and estsmales that are reasonable and prudent., stste whether applicable UK Accounb"ng Standards and the Ststemenl of Recommended Practrce have been followed, subject to any material departures disclosed and explained in the financial statements," ppare the financial statements on the going cOnM basis unless il is inappropriate lo presume that the Associats'on will continue in business." and prepare a statement on intemal financial control. The Board is responsible for keeping proper accounting records whh disclose with reasonable accuracy at any lime, the financial position of the Association and to enable rt to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014, the Housing (Scotlandl Act 2010 and the Determination of Accounting Requirements- 2024. The Board is also responsible for safegu2rding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Information for the Auditor The Board members have confirmed. as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Board members has conlirnEd that they have taken all the steps they ought lo lake as Board Members in order lo make themselves aware of any relevant audit information and to establish that il has been communicated to the auditor. Treasury Management Policy 11 is the policy of the Associabon that any surplus funds {thal is. cash not ne&ed lo meet immediate short- term needs) are invested lo maximise interest income without the Associalion becoming open to unnecessary risk. Rent Policy The Rent Policy is designed lo set rents that are Iransparenl, consistent and affordable lo current and prospective tenants. Rents and service Charges musl howevef cover the Associab'on's cos15 and promote confidence in the Association's ability to fulfil its obligations. Internal Financial Control The Board is responsible for ensuring that the Assctiation has an appropriate system of internal financial
MANOR ESTATES HOUSING ASSOCIATION LIMITED REPORT OF THE BOARD Icontinuedl FOR THE YEAR ENDED 31 MARCH 2026 control. INhilsl no system of intemal financial control can provide absolute assuranTr against material loss or misstatement, the Association's systems and procedures are designed to provide reasonable assurance that the controls in place are operaling effeclivety. These controls are regulaty reviewed. Audit Committee In line with good practice. the Association has an Audrt Committee. This committee rrEet quarterly and rUlarlY re1ve reports. review risks and obtain independenl comrrenl as well as appropriate reassurances from our Internal and external auditors. Internal Audlt The Association operates an independent intemal audit function, which reports directly lo the Audit Committee. A programme of work has been agreed based on an AL¢dil Needs Assessment by the internal auditors ITIAAI, which assess those areas of the Association's activity where potential risks have been idenlilied. Overall the reviews carried out by TIA4 indicate that the A$slatIOn has in place systems that are designed and operated tr) provide effective control and minimise risk. Consolidation exemption On 27 October 2024 the Association was granted FCA approval not to prepare consolidated financial slalements which included the trading subsidiary Manor Estates Ass(13teS Limited. The exemption was granted on the basis that the results of the subsidiary were immaterial to the overall group position. Auditor A resolution to appoint the auditor will be presenled at the Annual General Meeting. By order of tDe Board Claire Ironside Secretsry Date." 24 June 2026
MANOR ESTATES HOUSING ASSOCIATION LIMITED Statement of the Board's Responsibilities in respect of Internal Financial Control The Board acknowledges its ulty.mate responsibility for ensuring that Ihe Associab"on has in pla a system of controls that i% appropriate for the business environment in whh il operates. These controls are designed to give reasonab assuran with respect to.. the reliability of financial infomiab.on used wthin the Ass(cialK)n, or for publThtion", the Maintenan of proper accounting records., the safeguarding ofassets against unauthonsed use ordpoSIti13n. 11 is the Board's resp)nsibilty lo eslabli8h and maintain the systerns of internal finanryal control. Such systems can only provide reasonable and not absolute assuran against material financial misstatement or loss. Key elements ofthe $Slab"0n's syslems iThJude ensuring that". fomial poIleS and prctedures are in pLace, including the on-going dwunEntation ol key systems and rules in relation to the delegation of authority. whth allow the Mon[tng of controls and restrict the unaulhorised use of the AsstKiab"on's assets.. experienced and suitabty qualified staff take responsibility for inwrtant business funenS and annual appraisal prwedures have been established to maintain standards ol performan", forecasts and budgets are prepared which allow the management team and the governing body to rnonitor the key business risks. financial objectnies and progress teing made towards achieving the financial plans set for the year and for the ndIUM term". quarterly financial management reports are prepared promptty. ptowding relevant, reliable and up lo date financial and other infomiation, wth sonificant variances from budget being invests"galed as appropriate., RulatOry returns are prepared. aulhorised and submitted prompuy lo the relevant regulatory bodies.. all srgnificanl new initiatives. major MmItmentS and investment projects are subject to formal authorisab'on procedufes, through the PKHd(rfManagemenl.' the Audit CommitteelBoard received reports from management and from external and internal auditors, to provide reasonable assurance that control edureS are in pLice and are teing followed and that geneol review of the Major risks Ing the Assoa"alion is undertaken." formal ProdureS have been established for instituting appropriae acti(x) to correct any weaknesses enlified through internal or external audit reFK)rts. The Board has reviewed the effectiveness of the system of inlemal financial control in existence in the Association for the year ended 31 March 2026. No weaknesses were found in internal ffinancial controls which resulted in Material losses. contingencies or un¢ertainb"es %thich require disck)sure in the financial slalements or in the auditor's report orb the financial Statents. By order of the Board Claire Ironside Secretary Dated: 24 June 2026
MANOR ESTATES HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MANOR ESTATES HOLISING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 Opinion We have audited the financial statements of Manor Estates Housing Association {Ihe 'Associalion'l for the year ended 31 March 2026 which cornprise the statement of comprehensive income. statement of financial position, slaternent of changes in reserves, statement of cash flows and notes to the financial slatemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" {Uniled Kj'ngdom Generally Accepted Accounting Practice). In our opinion the financial stateNEnts". give a true and fair view of the stale of the Associab"on's affairs as at 31 March 2026 and of rts income and expen(lilure for the year then ended", have been properly prepared in accordance with United 'ngdoM Generally Accepted Accounting PraCts., have been prepared in accordance with the requirements of the Co-operatrve and Community Benefit Societies Act 2014. the Housing (Scollandl Act 2010 and the Detemiination of Accounting Requirements 2024. Basis for opinion We conducteiS our audit in accordan with Intemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are fvrther described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical sponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identsfied any material uncertainties relating to events or conditions that, individually or colleclively. may cast significant doubt about the Association's ability lo continue as a going concern for a period of at least e1ve months from when the fin3ncial statements are aulhorised for issue. Our responsibililies and the responsibilities of the Board with respEct of going concern are described in the relevant sections of this reporL Other information The other information comprises the informab'on included in the annual report, other than the financial slalemenls and our auditor's report Ihereon. The Board is responsible for the other information contained within Ihe annual report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assuran conclusion thereon. Our responsibility is lo read the other information and. in doing so. consider whether the other infom)alion is materially inconsislenl with the financial 51atemenls or our knowledge obtained in the course of the audit or otherwise appears lo be materially mi55taled. Ifwe idenljfy such material inconsistencies or appaonl material misstalemenls, we are required lo determine whether this gives rise to a material misstatemènt in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstalemenl of this other information. we are required to report that fact. We have nothing lo report in this regard. 10
MANOR ESTATES HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MANOR ESTATES HOUSING ASSOCIATION LIMITED FOR THE Y&4R ENDED 31 MARCH 2026 Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Cooperab"ve and Community Benefit Societie5 Act 2014 requires us to report to you rf. in our opinion.. proper books of account have not been kept by the Association in accordance with the requirements of the legislation", a salisfaclory system of control over transactions has not been maintained by the Association in accordance with the requirements of the legislation". the financial slalements are not in agreement with the books of account of the Association," or we have not received all the infomialion and explanab.ons we require for our audit_ Responsibilities of the Board As explained more fully in the Board's reswnsibililies stalemenl set out on page 7, the Board is responsible for the preparation of the financial stslements ar7d for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstalernenL whether due to fraud or error. In preparing the financial statements, the Board is responsible for assessing the Association's ability lo conb.nue as a going concern. disclosing, as applicable. matters retaled to going concern and using the going concern basis of accounting unless the Board erther intends to liquidate the Association or lo cease operab"ons. or have no realistic alternative bul to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whelher due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level ofassurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will avaYS delecl a material misstatement when it exists. Misstslemenls can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-complian with laws and regulab"ons. We design procedures in line with our responsibilities, outlined above. to delect material misstatements in respect of irregularities, including fraud. The extent lo which our proTrdures are capable of detecting iegUlarl11eS, including fraLJd is detsiled below. In relation to fraud, the objecb'ves of our audit are lo identify and assess the risk of material misstatement of the financial statements due to fraud. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond approprialely to fraud or suspected fraud idenb.fied during the audit. However. it is the primary responsibilrty of managemenL with oversight of those chatged with governance, lo ensure that the entity's operab'ons are Conducted in accordan with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misststernent in respect of irregularities, including fraud. the audit engagement team.. obtained an understanding of the nature of the sector. including the legal and regulatory frameworks that the Associab'on operates in and how the Association is Complying with the legal and regulatory frameworks, inquired of management and those charged with govemance, about their own idenlificalion and assessment of the risks of irregularities. including any known actual, suspected or alleged instances offraud,. and discussed matters atx)ul non-compliance with laws and regulations and how fraud might (Kcur Including assessment of how and where Ihe financial statements may be susceptible to fraud.
MANOR ESTATES HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MANOR ESTATES HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 As a result of these procedures, we consider that the mosl significant laws and regulations that have a direct impact on the financial statements were, but not limited to, FRS 102, Housing SORP 2018, the Scottish Housing Regulator's Determination of Accounting Requirements 2024. the Co-operative and Community Benefit Societies Act 2014 and the Housing IS¢otland Acll 2010. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures against the requirements of Ihe relevant financial reporting standards. We also performed audit procedures lo inquire of management. and those charged with govemance whether the Association is in compliance with these laws and regulations. inspected correspondence with gUlatOry authorities including mandatory submissions to the Regulator, reviewed minutes of meetings of the Board of Management and relevant sub-committees, and reviewed available online inforrnation. A further description of our resp)nsibilrties for the audit of the finanryal statements is located on the Financial Reporting Council's website at wM.frc_org.uklaudttorsresponsibilth"es. This description forms part of our audilorfs reporL Use ofour report This report is made solely lo the Association's members as a body, in accordance with Part 7 of the Co- operative and Community Benefit Societies Acl 2014. Our audit work has been undertaken so that we might stste to the Association's members those matters we are required lo slate lo 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 lo anyone other than the Association and the Association's mernbers as a body, for our audit work, for this report. or for the opinions we have formed. CT Audit Limited Chartered Accounlanls and Statutory Audilor 61 Dublin Street Edinburgh EH3 6NL Date 2026 12
MANOR ESTATES HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORTON CORPORATE GOVERNANCE mAERs TOTHE MEMBERS OF MANOR ESTATES HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 In addition lo our audit of the Financial Stsiements, we have reviewed your slalemenl on Page 9 concerning the Association's compliance with the inlomialion required by the Regulatory Standards in respect of inlefflal financial controls contained within the publication "Our Regulatory Framework" and associated Regulatory Advisory Notes which are issued by the Scottish Housing Regulator. Basls of Opinion We carried out our review having regard lo the requirements to rpOrate governance matters within Bullets"n 200615 issued by the Financial Reporting Council through enquiry of certain members of the Management Committee and Officers of the Association and examination of relevant documents. The Bulletin does not require us to review the effecbveness of the Association's procedures for ensuring compliance with the guidanTr notes, nor to investigate the appropriateness of the reason gwen for non-complian. Opinion In our opinion the Ststemenl on Internal Financial Control on page 9 has provided the disclosures required by the relevant Regulatory Standards within the pUblicatn "Our Regulatory Framework" and associated Regulatory Advisory Notes issued by the Scottish Housing Regulator in respect of inlemal financial controls and is consistent with the information which came to ourattenb.on as a result ofour auditwork on the Financial Statements. CT Audit Limited Chartered Accountsnts and Statutory Audilor 61 Dublin Street Edinburgh EH3 6NL Date g 2026 13
MANOR ESTATES HOUSING ASSOCIATION LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026 Notes 2026 2025 Tumover 8.221.221 7,804,557 Operating exFÉndilure 16,316.4191 (5.913, 117) Operating surplus 1,904.802 1. 897.440 Interest receivable Interest and financing cosls Gift aid from subsidiary 10 10 23 13.631 1593.3111 24,117 33,630 (185,093) Surplus before tax 1,349,239 1, 139,977 Tax Surplus for the year 1,349.239 1. 139.9T7 Other comprehensive incorne Actuarial gain in respect of pension schen 22 93.000 98,000 Totsl comprehensive income foryear 1,442.239 1,237,977 All tltieS relate to continuing operations. Ql-(al__ lan Crawford Chair Rowsby WI Chair Claire Ironside Secretary The notes on pages 18 to 37 fomi part of these financial statements. 14
MANOR ESTATES HOUSING ASSOCIATION LIMITED STATEMENT OF CHANGES IN CAPITAL AND RESERVES FOR THE YEAR ENDED 31 MARCH 2026 Ineome & Total Share Expenditure Unrestricted Capital Reserve Funds Balance at 1 April 2025 Total comprehensive income New shares issued Shares canGelled 91 23.807.335 1,442,239 23,807,426 1.442,239 1201 120) Balance at 31 March 2026 73 25,249,S74 25.249,647 Income & Total Share Expendtture Unrestricted Capital Reserve Funds Balance at 1 April 2024 Total comprehensive income New shares issued Shares cancelled 89 22,569.358 1,237.977 22.569,447 1.237.977 Balance at 31 March 2025 91 23,807,335 23.807.426 The notes on pages 18 10 37 form part of these financial statements. 15
MANOR ESTATES HOUSING ASSOCIATION LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026 Notes 2026 2025 Fixed assets Tangible fixed assets". Housing properties Other fixed assets Investments 12a 12b 13 47.669,950 1.118,099 100 44.939. 178 1.144.610 loo 48.788,149 46,083, 888 Current assets Debtors Cash and cash equwalents 14 15a 458,242 1,165,770 965.090 651.820 1.624.012 1.616.910 Creditors.. amounts falling due within one year 16 {1.982.5341 {2.032,263) Net current liabilities 1358,5221 (415,353) Totsl assets less current Ilabilities 48,429,627 45,668,535 Creditors.. amounts falling due after more than one year Pension - defined benefit liability 17 22 122,629,980) {21,254, 109) 1550,000) (60T,000) Total net assets 25,249,647 23,80T,426 Reserves Share capital Inwme and expenditure reserve 18 73 25,249.574 91 23, 80T,335 Totsl reserves 25,249.647 23,807,426 The financial statements were approved by the Board on 24 June 2026 and were signed on ils behalf by.. lan air ows Chair Claire Ironside Secretary The notes on pages 18 to 37 form part of these financial slalem nl5. 16
MANOR ESTATES HOUSING ASSOCIATION LIMITED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2026 Note 2026 2025 Net cash generated from operating activities 19 3,252,367 1.023.312 Cash flow from investing activities Purchase of tangible fixed assets Grants received Grants repaid Gift aid Interest received Share capital Canlled {4,024.2081 (2,414,345) 1.217.975 1,311,264 24.117 13,631 (20) 33, 630 483,862 (46, 139) Cash flow from financing activities Interest paid New secured loans Repayment of botrowings RCF drawdowns Share capital issued {593.3111 (785,093) 9,000,000 1626.603) (10,303,203J 1.250.000 30.088 (2,088,294) Net change in cash and cash equivalents 513.950 (2, 134,433) Cash and cash equivalents at beginning ofyear 651.820 2, 786,253 Cash and cash equivalents at end of year 1.165.770 651,829 The notes on pages 17 to 39 fom part of these finar)cial statements. Anatysis of changes in nel debt Other non- cash At 31 March changes 2026 At 1 April 2025 Cash flows Cash and cash equivalents Cash Cash equivalents 651,820 513.950 1.165.770 651,820 513.950 1,165.770 Borrowings Debt due within one year Debt due after one year 626.603 8,278,819 1626.6031 623,398 626.603 626.603 8.902.217 Totsl 8,905,422 3.205 626.603 9.528,820
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 General inforniation The financial slalements have been prepared in accordan wrth applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland. Iuniled Kingdom Generally Accepted Accounting Prathel and compty with the requirements of the Determination of Housing Requirements 2024 as issued by the Sco"5h Housing Regulalorand the Slalement ofRecommended Practice for Social Housing Provhlers issued in 2018. The principal &counting poIleS are sel out below_ The preparation of these financial statements in ¢xJmpljan with FRS 102 requires the use of certain aecounbng esb'mates. It also requires managen*nt to exercise judgement in apptying the Associ8tion's accounts'ng policies Isee note 31. The presentation currenry is pounds slerfing. and the financial statements are rounded to the nearest whole number. The Association is a CIFoperabve and Community Benefit &xiety limited by shares and is incorporated in the United Kingdom. The Association is a registered sooal ndlOrd in Scotland, and its registered number is HEP 284. The regtstered address is available on the first page of the financial statements. The Associab'on is defined as a public benefft entity and thus the Asswalion complies wth all disclosure requirements relatirKJ lo public benefft enlities. Principal accounting policies Basis of accounting The financial statements are prepared under the historical cost basis of accounting. Going concern The financial statements have been prepared on a going concern basis_ The Board have assessed the Ass(lation'S ability to continue as a going concern and have reasonable expectation that the Association have adequate resources lo continue in operational existen for the foreseeable future. Thus, they continue to adopt the going concem basis of accounting in preparing these financial slalemenls. Tumover Tumover represents rental and service income r1vable and fees and grants from local authorities and the Scottish Government. Also included is any income from management fees for the factoring of properties for private owners as the provision of factoring ser¥eS is aecounled for on an agency basis. Income from rental and service charges and factoring actwilies is recognised when the Association is entitled to it, il is probable il will be received. and rt can be measured reliably. Income from revenue grants receivable have been covered in a separate accounb'ng policy below. 18
MANOR ESTATES HOUSING ASSOCIA TION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Principal accounting policies leontinuedl Leasing Rentals payable under operating lease are charged lo the Ststeffnt of Income and Retained Earnings on a straight line basis over the period of the lease. Grant income here a grant is paid as a contribution towards revenue expendrture. it is included in turnover. Where a grant 15 received from government and other bodies as a contribub.on towards the capital cost of housing schemes, the granl is recognised as income using the accrual model in accordance with SORP 2018. unamotb.sed capilal giant is held as deferred incoNE on the statement of financial position. Bad and doubtful debts Provision is made against rent arrears of current and former lenanls, as well as other miscellaneous debts due lo. the extent that Ihey are considered potentially irrecoverable. Debts are classed as uncollectable after an assessment of the legislative opb.ons available lo recover and consideration of specific circurrtstans. Interest re1Vable Interest receivable is recognised in the Statement of Comprehensive Income using the effective interest rate method. Interest payable Finance costs are charged lo Ihe Statement of Comprehen5Ne Income over the term of the debt using the effective interest method so that the amount charged is al a wnstanl rale on the carrying amount. Issue Costs are initially recognised as a reduction in the proceeds of the associated capital inslrumenl. Tangible fixed assets - Housing properties Housing Properties are slated al cost less accumulated deprecialK)n. Works to existing properties will generally capilalised under the following cirCumstanS-. lil ere a component of the housing property that has been treated separately for depreciation purposes and depreciated over its useful econom life is replaced or restored., or lil) ere the subsequent expenditure provides an enhanrrent of the economic benefits of the tangible fixed assets in excess of the previously assessed standard of performance. Such enhanment can occur rf the improvements result in an increase in rental income, a material reduction in future maintenance costs or a significant extension of the life of the propety. rks lo existing properties which fail to meet the above criteria are charged lo the Statement of Comprehensive Income. 19
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Principal accounting policies {continued) Depreciation Depreciation is charged on a straight line basis over the expect economic useful lives of each major component that makes up the housing propety as follows.. Land Roof Walls Bathroom Kitchen ndows Boilers External Doors not depreciated 65 years 65 years 30 years 15-18 years 30 years 20 years 40 years {Depreciated al 1 540kn per annuml (Depreciated al 1.54°1o per annuml {Deprecialed al 3.33Yo per annuml (Depreciated al 5.56Q/o per annurnl {Deprecialed al 3.330/0 per annuml {Depre¢ialed at 50A per annuml (Depreciated at 2.50A per annuml Other fixed assets Other tangible fixed assets are staled al cost less accumulated depreciation. Depreciation is Charged on a slraighl-line basis over the expected economic useful lives of the assets al the following annual rates". offi Propety Leasehold improvements Office furniture and equipment Computer equipment 4% 125 years} 20% 15 years) 10% 110 years) 250h 14 years) Mid-market Rent properties- Fl(h)r Coverings Appliances 10 /0 110 years) 20Yo 15 years) Social Rent properties- Floor Coverings Appliances 10% 110 years) 20% 15 year5) Impairnient Reviews for impairment of housing propertses are carried out al scheme level when a possible impairment is highlighted by a change in circumstan$ {su¢h as high repair costs or difficulties in letb"ngsl. Any impairment in an income generating unil is recognised by a charge in the Slalemenl of Comprehensive Incorne and is recognised when the carrying value Df the unil exceeds the higher of ils nel realisable value or value in use. The nel fealisable value is determined by an external valuation by a RICS approVj valuer. Housing Association Grant and other capitsl grants Housing Association Grant and other capital grants certain developments have been financed wholly or partly by Housing Association Grant IHAGI or other capital grants. HAG 15 repayable under certain circumstances. primarily following sale of the related propety but will normally be restricted to nel proceeds of sale. Capital grants are accounted for using the accrual model and are recognised in incorne on a systematic basis over the useful life of the related housing asset. The Association uses the useful lives of all housing components on a pro-rata basis to calculate the annual arnortlsation. Financial instruments (Debtors and creditors receivable/payable within one year) Debtors and creditors Wlth no slated interest rale and re1vable or payable within one year are recorded al the transaction price. Any losses arising from impairment are recognised in the slalemenl of comprehensive income in other adminislraltve expenses. 20
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Principal accounting policies {continued) Financial instruments (continued) (Loans and bOOlgS) Bank loans provided by Private Lenders are classed as basic under the requirements of FRS 102 and are therefore measured al arrKTrrtised cost. (Payment aryangements with tenants) In the case of payment arrangements that exist wtth tenants, these are deemed lo constitute financing transactions and, where material. are measured al the preseF)t value of futu payments discounted at a market rate of interest applicable to similar debt instruments. Cash and cash equivalents Cash is represented by cash in hand and deposits with ffinancial institutions repayable wilhoul penalty on notice of not more than 24 hours. Cash equivalents a hKJhty liquid investments that mature in no more than three months from the dale of acquisttion and that are readily convertible lo known amounts of cash with insignificant risk of change in value. Debtors Short term debtors are measured 21 transacb.on wice, less any impaimEnt Creditors Short term creditors are measured at the transaction price. Olher financial liabilities, including bank loans. are measured initially at fair value, net of trallsaclion costs, and are measured subsequently at amortj.sed cost using the effective interest method. Pension costs The Association participates in The Scottish Housing Associations. Defined Benefits Pension Scheme ISHAPSI and retirement benefits to employees of the As50cialion are funded by the contributions from all participating employers and employees in the scheme. Payments are made in accordance with periodic calculations by consulting actuaries and are based on pension costs applicable across the various parbcipating Associations taken as a whole. The SHAPS is accounled for as a defined t*nefft scheme and as such the amount charged lo the Statement of Comprehensive Income in respect of pension costs and other w)St-reb"remenl benefits is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. The interest cost is included within other finance th)511ncoMe. Actuarial gains and losses arising from new valuations and from UFMlating valuations lo the reporb.ng date are recognised in Other Comprehensive InconE. Defined benefit schemes are funded. with the assets held separately from the Association in separate trustee administered fvnds. Full actuarral valuatsons. by a professionally qualrfied actuary, are obtsined al least every three years, and updated to reflect current conditions at each repotting dale. The pension scheme assets are measured at fair value. The pension scheme liabilib.es are measured using the projected unit method and discounted al the current rale of return on a h1gh quality corporate bond of equivalent lem and currency. A pension scheme asset is recognised on the Stslement of Financial Position only lo the extent that the surplus may be recovered by reduced future contributions or lo the exlenl that the Iruslees have agreed a refvnd from the sctreme al the reporting dale. A pension scheme liability is recognised to the extent that the Association has a legal or conslru¢live obligation to settle the liability. Value Added Tax The Association is not registered for VAT and operaling expenditure therefore includes Input VAT. 21
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 3. Judgement in applying policies and key sources of uncertainty In preparing the financial statements. management are required to make estimates and assumptions which affect reported income, expenses. assets, and liabilities. Use of available informab.on and application of judgement are inherent In the fomation of eslimales, together with past experience and expectations of future events that are believ to be reasonable under the circumstances. Actual results in the future could drffer from such eslimales. The memt*rs of the Board consider the following to be criti"c21 judgements in preparing the financial ststements.. The calegorisation of housing properties as propety, plant and equipment in line with the requirements ofthe SORP". The amount disclosed as 'operaling profit. is repre5entsiive of activrties that would normally be regarded as 'operating'" and The identification of a cash-generating Unit for impaim)ent purposes. The members of the Board are satisfied that the accounty.ng wliaes are appropriate and applied consistently. Key SoUrS of estsmab.on have been applied as follows". Estimate Basis of estimation Valuation of housing properties Housing Properties are held at deemed cost which is based on exists.ng use valuations at the date of transition lo FRS 102 of 1 April 2014. Useful lives of property. plant and equipment The useful lives of propety. plant and equipment are based on the knowledge of Senior managerrEnt, with reference lo expected asset life cycles. The main components of housing properties and their Ljseful lives The cost of housing properties is split into separately idenb"fiable components. These components were identtfied by knowledgeable and experienced staff members and based on expected asset life cycles. Recoverable amount of rental and other trade receivables Rental arrears and other trade receivables are teviewed by appropriatety experIend senior management team members on a case by case basis th the balan outstanding together with the payment history of the individual lenanl being taken into account. The obligations under the SHAPS pension scheme This has relied on the actuarial assumptions of a qualified acttjary which have been reviewed and are considered reasonable and appropriate. Additionally. the impact of Guaranteed Minimum Pension IGMPI equalisalion has been included in the SHAPS defined nefil liability. Impairment of debtors The Asswalion makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, managernenl considered factors including the ageing profile of debtors and historical experience. See note 14 for carrying amount of debtors. 22
MANOR ESTATES HOUSING ASSOCIA TION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Particulars of turnover. operating costs and operating surplus Operating Surplus 2026 Qperatin Surplu 202 Operating Costs Notes Tumover Affordable letting actrvities Other activities Pension re-measuremenl debit 6,928,487 1,292,734 5,627.083 689.336 1,301.404 1,333.058 603,398 560, 781 (2,399) Total 8.221,221 6.316,419 1.904.802 1.891,44Q 2025 7.804.557 5,913.117 1,891.440 5. Particulars of tumover. operating costs & operating surplus from affordable letting activities Ger*ral Retyrernent Need5 Social Housing Houslng AccomrnodatioTr Total 2026 Total 2025 Income from rent and ser¥iee charges Rent receivable net of service charges Service charges 5.573,264 49,069 808,879 210,973 6,382,143 260,042 6. 124.294 249, 420 Gross income from rents & service charye Less.. Voids 5.622.333 132.7541 1,019,852 {16,0421 6.642,185 148,7961 6,373.714 135.045) Net income from rents & service charge Grants released from deferred income 5.589,579 335,098 1.003,810 6,593,389 335,098 6.338, 669 272. 198 Total turnover from affordable letting activities 5,924,677 1,003,810 6.928,487 6,610.867 23
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 5. Particulars of turnover. operating costs & operating surplu$ from affordable letting activilies Icontinuedl Gtnernl Retiremènt Need5 Sock?1 Housing HOIng Acc¢)mmodats"on Total 2026 rotal 2025 Expenditure Management & maintenance administralion cost5 servi costs Planned & cyclical maintenance including major repair costs Reactive maintenance costs Bad debts (Tents and seivice charges) Depreciation of affordable let properb.es 1.966,018 45,588 595.126 286.432 142.607 157.523 2,252,450 188,195 752.649 2.084,604 180,473 709,465 1,187,890 17.647 956.907 171,066 2,542 97.737 1.358,956 20,189 1.054,644 1,207,777 22,444 t,073,046 Operating expenditure for affordable letting properties 4.769.176 857.907 5,627.083 5.277,809 Operating surplus for affordable letting properties. 2026 1.149.270 145.906 1,301.404 1.333,058 2025 1,141.969 191,089 1,333,058 24
oocbo) 00) otov (bl E£
P4lANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Surplus for the year 2026 2025 Surplus for the year is slated after Auditor's remuneration linduding Value Added Tax)". for external audit services for taxation services 22,800 1,950 21.120 1.212 Emoluments and intsrests of key management personnel The Board and senior staff, including the Chief Executive, tkpute Chief Executivelcorporate ServIs Director, Property servIs Director, and Housing Management servIs Director, are defined as the key management personnel within the AsscNialion. No emoluments were paid to any member of the Board during the year. 2026 2025 The emoluments of key managemerbt personnel were as follows.. Salary Pension eonlribulions Swial security costs 284.303 29.612 36.802 249,537 32,808 29,311 350.717 311,656 The emoluments of the Chief Executive were as follows.. 2026 2925 Salary Pension contnbulions 64,004 44,311 63,959 40,239 108.315 104, 198 The Chief Executive is an ordinary member of the Association's pension scheme as described in note 22. No enhanced or special lemis apply to their membership_ The number of key rnanagemenl personnel whose emoluments, excluding tension contributions, were above £60.000 for the year were". 2026 2025 £60,00110 £70.000 £80.00110 £90,000 Expenses payable to the Board amounted to £2.107 (2025- £1,666J. 26
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Employee infomiation 2026 2025 Staff costs during the year were as follows Salaries Social Security costs Pension costs (note 221- current contributions expenses 1.268.085 137,993 307,959 10.633 15.585 1. 127, 217 114. 581 296.833 10,024 2,460 Costs of recrurtmenl 1,740,255 7,551,115 2026 2025 The average number of persons {full time equivalenlsl employed by the Associatron during the year was as follows". Housing management Administration 21 22 29 3Q 10. Interest 2026 2025 Interest receivable 13,631 33, 630 Ir¢leresl payable on bank loans Finance cost of setting up loans Defined benefit pension liability - interest charge {Note 22) TPT Growth Plan- interest charge {note 22} 538,023 19,200 36,000 88 734,234 17,859 33,000 593.311 785.093 11. Tax on surplus on ordinary activities The Association has eharilable status, and no Corporation Tax charge arises on activities in the year. The subsidiary company. Manor Estates A550ciales Limited is liable to corporats.on Tax, however no CorF)oralion Tax charge has arIn in the year. 27
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 12. Tangible fixed assets Housing Properties under development Housing properties held for letting Mid-market rent properties lal Housing properties: Total Cost Al 1 April 2025 Addilionsrtransfers during year Propety Components Transfers Disposals during year Components 1.391.049 44.673,629 11,516,853 57.581,531 2,988.781 2,988.781 942.864 942,864 4,379,830 14.379.830) {17S,6411 1175.6411 Al 31 March 2026 49.820,682 11.516.853 61.337,535 Depreclation Al 1 April 2025 Charge for the year Disposals during year-. 11.434.193 1.054,644 1.208,160 146,229 12,642,353 1,200.873 Property Components 1175,6411 1175.6411 Al 31 March 2026 12,313.196 1.354,389 13,667,585 Net book value Al 31 March 2026 37,507A86 10.162,464 47,669.950 At 31 March 2025 1,391.049 33.239,436 10,308.693 44,939, 178 Housing units: MMR Mainstream Retirement No No Total No At 1 April 2025 At 31 March 2026 95 95 873 898 143 143 1,111 1,136 Additions lo Housing Properb"es during the year include no capitalised interest (2025 - £nil) and no capitalised administration costs (2025 - £nilJ Comw)nents with a cost of £175.641 (2025 - £182,367) and accumulated depreciation of £175,641 (2025- £182.367) have been disposed of in the year for net proceeds of £nil12025- £ nifj. Ineluded in freehold housing properbes is land with a historic cost allocation of £19,866,435 12025." £18.082,2091. 28
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 2026 12. Tangible fixed assets continued Office & IT Equipment MMR and social fumishings Office Property Total Ib}Other fixed assets: Cost Al 1 April 2025 Addib"ons Disposa15 1.090.418 489,850 33,889 (8,166} 286,120 58,674 117,3831 1,866,388 92,563 125.5491 At 31 March 2026 1,090,418 515,573 327,411 1,933,402 Depreciation Al 1 April 2025 Provided in year Disposals 130,673 43,617 382,047 50,929 18.1661 209,058 24,528 117.3831 721,778 119,074 125,5491 At 31 March 2026 174.290 424.810 216,203 815,303 Net book value 31 March 2026 916,128 90,763 111.208 1,118.099 Nel book value 31 March 2025 959. 745 107,803 77,062 1, 144, 610 13. Investments Manor Estates Housing Associabon has invested in its wholty owned subsidiary, Manor Estates Associates Limrted IMEALI. 2026 2025 Al 1 April 2025 and 31 March 2026 100 ordinary shares of £1 each 100 100 The subsidiary has net assets, eapitsl and reserves of £100 al 31 March 2026. 29
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 14. Debtors 2026 2025 Rent arrears Doubtful debt provision 168.963 {99,9281 178,836 (110,900) 69.035 67,936 Other debtors Prepayments Finan costs Inote 171 217,092 36,415 135,700 640,240 102.014 154.900 458.242 965.090 15 Cash and cash equivalents 2026 2025 Balances held in current account 1.165,770 651,820 16. Creditors- amounts falling due within one year 2026 2025 Trade creditors Other creditors Social Security and other taxes Prepayments of rent & service charges Accruals and deferred income Loan Inte51 currently due Subsidiary Company Inole 231 Bank loan repayable within one year {nole 171 SHAPS deficit repayment plan Inole 221 Deferred capital grant (note 21) 203,266 41,144 28,497 198.323 468.755 2.302 41.290 626.603 815 371.539 388,248 31.715 26.428 783, 774 425.906 24,907 626, 603 815 323,867 1.982.534 2,032,263 Pension amounts oulstanding at the yearond were £88412025.. £ni4- 30
MANOR ESTATES HOUSING ASSOCIATION LIMED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 17. Creditors: amounts falling due afterone year 2026 2025 Bank loan Deferred Housing A$s(latIOn Grant (note 21) SHAPS delicil repayment plan 8,902,217 13,727,020 743 8,278,819 12,973,820 1,470 22.629.980 21.254, 109 During 2024125 the Santander loan was repaid and replaced with a loan facility from the Royal Bank of Scotland. The facility consists of a loan of £gm and a rolling credit facility IRCF) of £4m. Shortly after the refinancing, 610/0 of the loan1£5.49m} was fixed at 5.6260/0 and is repayable over the next len years. The balance of £3.51 m is variable and repayable over 15 years_ The average rale of interest paid in the year is 5.78%12025-6.71 %)- The net Ix)ok value of housing properties secured al the yeai-end was £3,691,969 {2025- £3,733,278). We are conb"nuing lo pay off the loan of £266.030 from the Energy Savings Trust. This is repayable over 10 years al interest rale from May 2017_ Loans are repayable as follows.. 2026 2025 Within one year Beeen one and two years Between two and five years After five years 626,603 602,217 1.800,000 6,500.000 626.603 626. 603 1,802.216 5, 850.000 9.528,820 1626.6031 8, 905.422 (626, 603) Less.. amount shown in current liabilrties 8.902,217 8,278.819 31
MANOR ESTATES HOUSING ASSOCIATION LIMED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 18. Share capitsl Ownership of a share does not enliue the holder to participate in the Association's assets. Each member of the Board holds one share of £1 in the Association. 19. Reeonclllation of operating surplus to net cash inflow from operdting aclivities 2026 2025 Surplus for the year Depreciation charges Decrease l {increasel in debtors Increase in creditors Adjustments for investing or financing activities.. Housing Association Grant used in year Interest and financing costs Interest receivable Gift Aid 1,349.239 1, 139,977 1,319,947 1,325,956 506,848 {627,516) {62.1271 (1.212,365) 1417,1031 593.311 {13,6311 {24,1171 (354,203) 785,093 (33, 630) Net cash flow from operating activity.es 3,252.367 1,023,312 20. Capital commitments 2026 2025 Capital expenditure that has been contracted for but not been provKJed for in the financial statements 457.248 2, 990,357 32
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 21. Deferred capitsl grants 2026 2025 Summary of HAG movement in the year".- Deferred caprtal grants al 1 April Grants received in the year Grants released in the year 13.297,687 1.217,975 1417,103) 12.340.626 1,311,264 (354.203) 14.098.559 13.291.687 Due lo be released < 1 year Due lo be released > 1 Year 371,539 13,727,020 323.867 12,973,820 14.098,559 13,297,687 22. Pension scheme li}The Pensions Trust- Scottish Housing Associations. Pension Scheme (SHAPS) Manor Estates Housing AssiKiabon participates in a mulli-ernployer scheme which provides benefits lo some 150 non-associaled ernployers. The scherne is a defined benefit gheme in the UK. The scherne is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This. together with documents issued by the Pension5 Regulator and Technical Actuarial Standards issued by the Financial Reporting Council. set out the framework for funding defined benefit occupab.onal pension schemes in the UK. The last published triennial valuab.on of the Scheme for funding purposes was carried out as at 30 September 2021. This valuation revealed a deficit of £27m.A recovery plan wa5 put in place to eliminate this debt by September 2022.The results of the rnosl recent triennial valuation carried out as at 30 September 2024 have yet to be published. The Scheme is classified as a 'last-man Standing arrangemenv. Therefore, the company is potentially liable for other participating employers. obligations if those employers are unable lo meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their Sha of the Scheme deficit on an arinuity purchase basis on withdrawal from the Scheme. For financial yeats ending on or kfore 28 February 2019, il was rx)t possible for the company lo obtain sufficient information lo enable il lo account for the Scheme as a defined benefit scheme. therefore the company has accounted for Ihe Scheme a5 a defined contribub.on scheme. For financial years ending on or after 31 March 2019, it is px)ssible lo obtain sufficient Information lo enable the company to account for the Scheme as a defined benefit scheme. For accounting purposes, a valuation of the scheme was carried out with an effective dale of 30 September each year. 33
MANOR ESTATES HOUSING ASSOCIATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Pension scheme {¢ontinued) Full judgement in the Verity Trustees v Wood court case is still awaited_ Should the Court decide that historic benefit changes need to be applied differently. then some member benefits would need to be increased, which would increase the value placed on Scheme liabilities. No allowance has been made for potential additional liabilities wrthin the estimate made. although this will be addressed if required by the potential extension of the Recovery Plan referend above. Present values of defined benefit obligation. falr value of assets and defined benefit liabillty 31 March 2026 £'ooo 31 March 2025 £'ooo Fair value of plan assets Present value of defined benefit obligation 4,424 14,9741 4.360 (4.967) Defined benefit liability to be recognised (5501 f697) Reconciliation of opening and closing balanees of the defined benefit obligation Year ended 31 March 2026 £'ooo Year ended 31 March 2025 £'ooo Defined benefit obligation al start of period Current service cost Expenses Interest expense Actuarial Ilossesl due to scheme experien Actuarial gainslllossesl due lo changes in demographic assumptions Actuarial gains due to changes in financial assumpb.ons Benefits paid and expenses {4.967 (5.497) 19) 1285) 73 (265) {58J 1511 66 199 666 196 Defined benefit liability at the end of the period (4.9741 f4.967) 34
MANOR ESTATES HOUSING ASSOCIATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Pension scheme (continued) Reconciliation of opening and closing balances of the fair value of plan assets Year ended 31 March 2026 £'ooo Year ended 31 March 2025 £'ooo Fair value of plan assets al start of the period Interest income Experience on plan assets (excluding amunts included in interi income) - gain Contributions by the employer Benefits paid and expenses 4.360 249 4.825 232 (510) 11991 ff 96) Fair value of plan assets at end of period 4.424 4,360 Defined benefrt costs recognised in the Statement of Comprehensive Income Year ended 31 March 2026 £'ooo Year ended 31 March 2025 £'ooo Current service cost Admin expenses Net interest expense 33 Defined benefit costs recognised in Slatement of Comprehensive In¢orne 42 Defined benefit costs recognised in Other Comprehensive Income Year ended 31 March 2026 £'ooo Year ended 31 March 2025 £'ooo Experience on plan assets lexclLtding amounts included in net interest cost- Ilossl Experience gains and losses arising on the plan (510) 73 (58) Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation- gainl Effects of changes in the financial assumptions underlying the present value of the defined benefft obligation- gain {51) 66 666 Total amount recognised in other eornprehensive incorne -gainlllossl 93 98 35
MANOR ESTATES HOUSING ASSOCIATION LIMrtED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Pension scheme Icontinuedl lill Pension Trust's Growth Plan The company participates in the scheuE. a murti*mployer scheme which provides benefits lo some 521 non-associaled participating ernployers. The scheme is a defined benefit scheme in the UK. 11 is not possible for the company lo obtain sufficient information to enable it lo account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme. The scheme is subject to the fvnding legislation ouuined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, sel out the framework for fijnding defined benefit occupatK)nal pensi)n schemes in the UK. The scheme is classified as a'last man standing arrangemenl' Therefore, the company is potentially liable for other participating employers, obligations if those employers a unable to meet their share of the scheme delicil following withdrawal from the scheme. Parb'cipaling employers are legally required to meet their share of the scheme deficrt on an annuty purchase basis on withdrawal from the scheme. A ftjll actuarial valuation for the scheme was carTted out at 30 September 2023. This valuation showed assets 01 £514.9m, liabilities of £631.Om and a deficit of £16.1 m. To eliminate this funding shortfall. the Trustee has asked the participating employers to pay additional contributions to the scheme as follows". Deficit contrrbutions From 1 April 2025 to 31 March 2028.. £2,100.000 per annum Ipayable nnthly) The recovery plan contributions are allocated to each partiapaling employer in line with their estimated share of the Series 1 and Series 2 Itabilities. As the Growth Plan is in deficit and the Association has agreed lo a deficrt funding arrangement the Associab'on recognises a liability for this obligation in the amc>unl of the net present value of the deficit reduction contributions payable under the agreement. The present value is calculated using the discount rate detailed below The unwinding of the discount rale is recognised as a finance cost. 2026 2025 Current service cost Rate of discount 0/0 per annum 4.92 4.84 The discount rates shown above are the equivalent Sing dis(x)unl rates which, when used to discount the future recovery plan contn'bulions due, would give the sarne resu115 as using a full A4 corporate bond yield curve lo discount the same recovery plan contributions. 36
MANOR ESTATES HOUSING ASSOCIATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Pension scheme (continued) liiil Employer Debt on Withdravrnl Following a change in legislath.on in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer a$arng lo participate in the Scheme or the Scheffle winding up. The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme Icalculaled on a buyout basis i.e., the cost of securing benefits by purchasing annuity poIleS from an insurer. plus an allowance for expensesl with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debl. The leaving employerfs share of the buy-out debt is Ihe pro[ortn of the Scheme's liability attributable lo employment with the leaving employer compared lo the total amount of the Scheme's liabilities Irelaling lo employmentwith all the employers). The leaving employeffs debt therefore includes a share of any 'orphan' liabilities in respect of previotjsly participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performan, the liabilities In respect of current and former employees ol the employer, financial conditions at the time of the cessation event and the insurance buy-out markel. The amounts of debt can therefore be Volati over time. The Association has been notified by the Pensions Trust of the eslimaled employer debt on the withdrawal from the relevant schemes based on the financtal position of the schemes as at 30 September 2025. As of this dale the lotsl estimated employer debt ft)r the Association is £1.2m for both schemes. 23. Related Party Transactions Management and adminislrab.on services are provided to Manor Estates Associates Limited (the subsidiary company). These costs amounted lo £16,076 in the year (2025 - £17,901). In addition, managemenlcharges of£60.000 (2025- £65,291) and lease costs of£580.895 (2025-£574,767J have been incurred by Manor Estates Associates Limited in relation lo the MMR properties. Manor Estates Associates Limited agreed a gift aid distsibutKTrn of £24,117 (2025 - £ nilj to the Association. The balance owed by Manor Estales Housing Association to Manor Estates Associations Limited at 31 March 2026 is". £41,290 Subsidiary Company Icredilorl The balance owed to Manor Estates Associates Limited as at 31 March 2025 was". £24.907 There is a proposal lo re1ve a distribution in the form of a gift aky payment £48,78312025- £24, 117) next year from Manor Estates Associates Limited. 24. Tenant Board Members During the year, one tenant eontsnued their membership of the Board12025 - one). The Board member has a standard tenancy agreement and was awarded their tenancy in line with best practice allocations policy. Rent charged lo the tenant Board Member dunng the year was £6,12012025- £5,904) and the nel balance outstanding from the tenant Board Member as al 31 March 2Q26 was £nil 2025- £nill. 37