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2026-03-31-accounts

ALBYN HOUSING SOCIETY LIMITED

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Registered Housing Association Number 64 Financial Conduct Authority Number 1776 R (S) Charity Number SC027123

ALBYN HOUSING SOCIETY LIMITED

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Contents Pages
Board, Executives and Advisers 1
Report of the Board 2 - 16
Statement of Board Responsibilities 17
Board’s Statement on Internal Financial Controls 18
External Auditor’s Report on Corporate Governance Matters 19
Independent Auditor’s Report 20 - 23
Statement of Comprehensive Income 24 - 25
Statement of Changes in Capital and Reserves 26 - 27
Statement of Financial Position 28 - 29
Statement of Cashflows 30 - 31
Notes to the Financial Statements 32 - 49

Registration Particulars

Financial Conduct Authority Scottish Housing Regulator Charity Number

Co-operative and Community Benefit Societies Act 2014 Registration number – 1776 R (S) Housing (Scotland) Act 2010 Registration number – 64 SC027123

ALBYN HOUSING SOCIETY LIMITED

BOARD, EXECUTIVES AND ADVISERS

FOR THE YEAR ENDED 31 MARCH 2026

Board

L McInnes C Patching C Warner S Macleod C Levy J Bugden L Holburn N Owen E McGarrie A Newlands T Semple

Executive Officers

M Knight A Martin R Buchanan L Macleod

Registered Office

98-104 High Street Invergordon IV18 0DL

Auditor

RSM UK Audit LLP Third Floor 2 Semple St Edinburgh EH3 8BL

Internal Auditor

Wylie & Bisset 168 Bath Street Glasgow G2 4TP

Bankers

Royal Bank of Scotland Fifth Floor, Kirkstane House 139 St Vincent Street Glasgow G2 5JF

Solicitors

Harper MacLeod LLP Citypoint 65 Haymarket Terrace Edinburgh EH12 5HD

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

The Board presents its report and the audited financial statements for the year ended 31 March 2026.

Principal Activities

The principal activity of Albyn Housing Society Limited (“Albyn”) is the development, management and maintenance of housing in the Highlands of Scotland for people in housing need.

Albyn is registered with the Financial Conduct Authority as a Co-operative and Community Benefit Society, The Office of the Scottish Charities Regulator (“OSCR”) as a Scottish Charity and the Scottish Housing Regulator as a Registered Social Landlord (“RSL”).

Our Strategic Aims

Our Vision

To maintain and build quality homes, providing excellent customer service and giving opportunities for people and communities to flourish.

Our Strategic Objectives

Albyn has as its Strategic Objectives:

1. Our homes - Develop 600 properties across the Business Plan period. Work with partners developing innovative solutions to embed future sustainability and affordability into existing and new homes to improve the customer experience.

2. Our customers – Support the welfare of all our customers by providing proactive energy advice, and practical assistance in maintaining a tenancy and to ease cost pressures associated with starting a tenancy thus promoting long-term housing stability. Through targeted support and advocacy, we will help ensure our customers can maintain and enjoy their homes while promoting energy efficiency and long-term customer satisfaction on the services we provide.

3. Our people – We will develop and improve recruitment, retention and succession plans. Staff development will be framed around staff and organisational ambition. We will continue to focus on staff engagement, communication and organisational culture to be an ‘employer of choice’ and demonstrate our values.

4. Our finances and digital Services – We will implement measures to manage the Society’s finances to meet regulatory obligations for affordable rents whilst ensuring that there are sufficient financial resources to meet our day-to-day commitments, business plan objectives and future capital investment needs.

We will successfully implement identified actions to strengthen and enhance our ICT network and data management arrangements and will continue the implementation and exploitation of the CX housing and asset management software to provide improved digital services and efficient and effective processes.

5. Our partnerships – We will use our expertise to influence social housing policy and develop partnerships across the Highlands that add value to our communities.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Albyn works to the following core values and behaviours:

Albyn has three wholly owned subsidiaries. Albyn Enterprises Limited (“AEL”), the objective of which was to undertake activities of a non-charitable nature that will help Albyn to meet its objectives, Highland Residential (Inverness) Limited (“HRL”), the objective of which is to undertake factoring and low-cost home ownership and rental and one dormant entity, Suund Limited, which has been formed for the potential exploitation of innovation and currently remains a dormant company.

AEL has moved to a non-trading status following the transfer of assets and liabilities to HRIL at the beginning of the 2025/26 financial year.

The table below shows the homes that we manage:

Managed Property Numbers 2026 2025
TenantedProperties 3,515 3,490
Managed on Behalf of Others 12 12
Shared Ownership Properties 102 105
PropertiesLeased toHRL for MidMarketRent 258 251
**Total ** **3,887 ** 3,858

Financial Review

Albyn made a surplus of £1,326k (2025 - £475k) during the year. This is as a result of increased income and effective cost control during the year, particularly regarding repairs costs and loan interest charges. The consolidated results of Albyn and its trading subsidiaries, Albyn Enterprises Limited and Highland Residential (Inverness) Limited gave a surplus of £1,116k (2025 - £482k).

The surplus recorded for the financial year to 31 March 2026 includes charges and actuarial losses and gains to the statement of comprehensive income for the defined benefit pension scheme. The surplus for the year prior to these losses, gains and charges was £1,157k (2025 - £394k) for the Society and £947k (2025 – £401k) for the consolidated result of the Society and trading subsidiaries.

The defined benefit liability as at 31 March 2026 is £1,100k (2025 - £1,200k). This has therefore resulted in a reduction in the liability at 31 March 2026 of £100k (2025 – reduction in liability of £21k).

At the end of the financial year, the actuarial assessment of the future liability resulted in an actuarial gain of £169k (2025 - gain of £81k) and other charges to the Statement of Comprehensive Income of £69k (2025 - £60k), arriving at a closing liability at 31 March 2026 of £1,100k (2025 - £1,200k).

Deficit reduction payments have been reintroduced from April 2026.

Due to the unpredictable nature of the underlying assumptions in calculating the future liability, there is likely to be some volatility in the pension liability at each financial year end.

Albyn has held discussions with its main bankers and as the movement on the liability is a non-cash movement, it does not anticipate there being any adverse impact on the Society’s loan covenants.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

The cash surplus generated by Albyn Housing Society in the year continues to be reinvested in homes for our tenants through our new build programme and our investment in the quality of our existing homes.

Albyn remains in a strong financial position; we continue to have a substantial major repair investment programme with work to comply with the Scottish Housing Quality Standards (“SHQS”) and the Energy Efficiency Standard for Social Housing (“EESSH”), as well as maintaining the quality of our homes. We have budgeted for expenditure on improvements to our homes of £3.0m in the next financial year (2025: £2.5 million) as our programme meets our own lifecycle replacement requirements and the identified needs of the Stock Condition Survey.

Our ongoing budget for improvements will continue to increase in each year as the delivery of our Asset Management Strategy is realised and the requirements of meeting more stringent environmental and energy efficiency measures becomes clearer, including the Social Housing Net Zero Standard.

The Board of Albyn has approved a development programme of around 600 units over the course of a 5-year planning period which begun in 2025/26. This follows a previous commitment to deliver 500 homes over the same period with the increase in response to the Highlands Housing Challenge. The achievement of this stretching target will depend upon the availability of land, securing private finance at the appropriate time and the continued support form Scottish Government grants through the Affordable Homes Supply programme.

Cash surpluses will continue to be made, subject to our planned major repair programme over the next few years, and we will continue to make efficiency savings in our operational costs wherever possible.

Following the wider economic challenges, we continue to focus on the issues facing our customers in the current economic climate by securing support with the cost of living enabling tenancies to be maintained and for tenants to meet their obligations to housing costs. Our budgets and plans have been prepared to provide support for these challenges whilst maintaining cash flows and meeting key performance indicators.

Development and Performance

This report details developments that have occurred during the year relating to the main activities undertaken by Albyn and how we have performed.

Corporate Governance

Albyn has a Board (detailed on page 15) which is elected by the members of the Society. It is the responsibility of the Board to develop the strategy, setting of policy and overall direction for Albyn. They also monitor the operational activities of Albyn. Board members undertake this work in a voluntary, unpaid capacity.

The Executive Team (listed on page 16) together with the managers have been responsible for delivering the strategy and undertaking the operational activities in line with the agreed policies throughout the year.

The Board monitor the implementation of the Business Plan regularly throughout the year resulting in good progress in meeting our planning objectives. The Board was able to submit its annual assurance statement to The Scottish Housing Regulator in October 2025 which concluded that the Society was compliant with the Regulatory Framework. The Scottish Housing Regulator concurred with this assessment in its annual engagement plan published on 31 March 2026.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

The Regulator continues to classify Albyn as being of “systemic importance”. The Regulator refers to a number of RSLs as ‘systemically important’ because of their stock size, turnover or level of debt or because of their significance within their area of operation. They need to maintain a comprehensive understanding of how our business model operates and the risks we face, so they seek some additional assurance through our regulation plans. It is important to bear in mind that higher levels of regulatory engagement do not therefore mean we are poorly performing.

Operational Review

Customer facing delivery teams focusing on Income, Tenancy Sustainment, Operations, and Repair & maintenance teams continue to operate well and support the delivery of our plans and objectives.

Our Housing Management System, Civica CX continues to be developed and bring benefits to our operations since its implementation 2022. The system provides a platform from which we can meet our strategic objectives for our Customer Experience and build further integration of our systems in accordance with our IT strategic goals.

We continued our focus on our rent collection figures, in light of the ongoing cost of living pressures and its impact on the ability of tenants to meet their rental obligations. We provide access to a tenant support fund to assist those most vulnerable.

Our development programme continues to deliver, and we remain committed to the role that Albyn can play in expanding the supply of social and affordable housing in the Scottish Highlands. The declaration of a Housing Challenge by the Highland Council in June 2024 suggests that up to 24,000 new homes will be needed in the area across the next 10 years driven by housing need and the economic opportunities presented by the new Inverness and Cromarty Firth Green Freeport.

As a key delivery partner of affordable housing in the Highlands, the Albyn Board has made plans to expand its commitment to build up to 600 new homes over the next five years to support this collective challenge. The 2025/26 year was the first of this five-year period.

Customer Services Team

High quality customer service is central to the success of our business. Over the last few years, we have been developing new ways to improve our service delivery, both through changes to organisational structures and through building on the successful methods we currently use.

We have continued to develop our Customer Services Team to push day to day decision making through to the front-line staff, enabling them to respond more effectively and efficiently to our customers’ needs. Local initiatives on arrears accounts and new, improved ways of ensuring that our new tenants have the best possible chance of sustaining a successful tenancy have delivered against our objectives for our customers who are living in our homes.

Albyn continues to have an increasing proportion of tenants who are supported with their housing costs. We continue to encourage direct payment of housing related benefits and have improved our direct debit facilities to provide greater flexibility for those wishing to manage their rent payments using this system.

We are committed to ensuring our tenants have direct input into our service delivery and are continually looking for new ways to enable them to do this. We have developed a number of specialist focus groups where tenants can participate and gain knowledge in areas of interest to them. We have

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

communicated regularly with our tenants providing notification of changes to service delivery and how they can get support for housing needs.

We have once again surveyed our tenants during the financial year on rent levels. Responses to our surveys have been consistently strong providing valuable information on which to drive further service improvement. Tenants selected a 4.8% increase in rent levels effective from 1 April 2026 to continue the implementation of our policy of raising rents in line with CPI inflation plus 1%.

We continued to work in partnership with our tenants to be able to publish a Tenants’ Charter Report that delivers the information that matters to them on our performance against the requirements of the Scottish Social Housing Charter in an easy-to-read format.

Allocations

We recognise the importance of allocating houses to new tenants to minimise the cost of empty homes. This urgency supports minimising costs and enables Albyn to maximise its impact to house applicants on the waiting list as quickly as possible. With the on-going development activity both within Albyn and our partner organisations in the Highlands, we re-housed a large number of families in the year.

Families re-homed in the year 2026 2025
Re-lets 227 232
New Build / other Acquisitions 27 -
Total 254 232
AverageDays takentofillanemptyhome 24 24

The average number of days taken to fill our empty homes remined consistent in the year. The costs of void periods in the year as a percentage of income was 0.80% (2025 - 0.64%). Current and historic voids performance is set out in the graph below:

Historically we have found that it takes us longer to allocate homes in Caithness and a handful of developments in the more rural parts of the Highlands. With experienced officers dealing with the homes in these areas, and the Choice Based Lettings initiative implemented, we continue to work hard to keep our lost income as low as possible.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

We achieve high levels of satisfaction with the condition of our homes, with 86% (2025 - 86%) of tenants responding to tenancy surveys indicating that they are satisfied with the quality of their home.

We constantly review the performance of our homes in terms of the amount of money they cost us and how happy our tenants are with them, so that we can be proactive in deciding the future use of our homes.

Rent Arrears

Rent arrears performance has consistently improved over the past few years as we continue to work hard to support tenants to meet their rental obligations during challenging economic circumstances and realise the benefits of our focused income team. We have continued to improve our internal reporting and monitoring processes, maintaining early intervention whilst respecting the importance of sustaining tenancies.

At the end of the year a total of 1,975 tenants (2025 – 1,948) elected to have their housing costs paid directly to their landlord. We continue to encourage tenants to elect for this method of payment of rent as it supports a managed control of housing rental arrears. We are continuing to work in partnership across the Highlands on a number of initiatives with local RSLs and the Highland Council to establish access to support for our tenants who may be struggling with the cost of living.

The graph below details our recent performance on rent arrears for tenants in our homes:

Tenancy Management

We work in partnership with other local agencies to tackle Anti-Social Behaviour (“ASB”) and to manage our estates.

**Number of ASB Cases opened inthe year ** **Number of ASB Cases opened inthe year ** 2026 2025
Total 304 305
Cases per 1,000 properties 8.55 9.44

The number of reported nuisance and anti-social behaviour cases we have to deal with at any one time reduced slightly in the year, although remains a low proportion of all tenancies. It is always worth noting that whilst the ASB cases can be small in numeric terms as a proportion of the overall number of homes we manage, the cases often require a disproportionate amount of time and effort to find a resolution. These cases invariably require close customer liaison and support.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

The number of tenancies created in the financial year that were still successfully in place after a year remains high at 95.71% (2025 – 92.91%).

Reactive Repairs

Our performance in Reactive Repairs has seen further improvement in the year as our specialist repairs and maintenance team begins to deliver a positive impact and is detailed in the following table:

Category Performance Measure Target 2026 2025
Emergency Average time to complete 8 hours 4.18 hrs 4.28 hrs
Non-Emergency Average time to complete 10 days 4.44 days 4.82 days
RightFirstTime 86.30% 92.10%

The total number of reactive repairs completed during the reporting year was 8,474 (2025 – 8,879). This reduction, alongside a focused management of the repairs management process has seen costs managed in line with the previous year despite ongoing inflationary pressures.

88.54% (2025 – 88.54%) of tenants who returned the satisfaction survey were satisfied with the overall quality of our repairs service.

Communities

Albyn works with tenants and communities to develop innovative solutions to enable people to live in their own homes as long as it is safe for them to do so.

During the year the Board made a decision to stop further development of the Fit Home technology which has been in place, supported by the Highlands and Islands City region Deal programme since 2017. Whilst the programme has been very successful for a number of service users, the decision has been taken in order to enable Albyn to focus on its core business priorities and embed the improvements in systems and processes that have been introduced over the past few years.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Asset Management

We have commissioned a programme of stock condition surveys to ensure that we hold accurate and up to date information on all of our housing stock to inform the targeting of our improvement and energy efficiency improvement budget.

During the year we incurred expenditure on improvements to our homes as follows:

Replacement Type 2026 2025
£000’s £000’s
Energy Efficiency Measures 1,272 735
WindowandDoor Replacements 304 349
Kitchen Replacements 232 187
Bathroom Replacements 447 590
Individual Property Upgrades and OtherCosts 237 138
Total **2,492 ** 1,999

Expenditure on improving our homes increased in 2026 compared to 2025 and will continue to increase investment in existing homes in 2026 with planned expenditure of £3 million.

During 2026 we will accelerate work to set out a long-term plan on meeting decarbonisation and energy efficiency improvements alongside the Governments communication on targets for the social housing sector. Our programme will continue into the planning period being informed by our Asset Management Strategy which was approved by the Board in 2023.

It is essential that all properties with gas central heating are serviced at not more than 12 monthly intervals, and we put in place procedures which ensured that we hit this target. Where access to carry out gas servicing is not possible, we have followed HSE advice and guidance in risk assessing each situation on a case-by-case basis. All properties where it was not possible to meet this obligation are evidenced by this process.

Category Performance Measure Target 2026 2025
Gas Servicing Within 12 Mths of previous inspection 100% 100.0% 100.0%
Within 13 Mths of previous inspection 100% 100.0% 100.0%

The development programme has continued in year and whilst we have seen a rapid acceleration in the number of schemes now getting on site, completions have been modest due to the challenges in mobilising schemes due to delays in the planning process. In addition, we are seeing tendered costs significantly in excess of benchmark which is leading to further assessment and requirements of larger Government grants.

Looking ahead, the Board have committed to a medium-term ambition to develop around 600 properties over a 5 year period to enable resources to be focused on stock improvement as well as new home development. We purchased 7 homes for rent during the year to 31 March 2026 (2025 – 11) and completed 27 new build homes. (2025 – 0).

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Developments completed in the year Rented MMR Total
Various former shared equity purchases from Scottish Government 0 7 7
Castleparkphase2,Dingwall 27 0 27
**Total ** 27 7 **34 **

The table below details our expenditure on these completed projects and the way in which they were financed:

Development Funding 2026 2025
£000’s £000’s
Expenditure 8,564 1,912
Grant 6,536 930
Commercial Debt 2,028 982
Own resources 0 0

Corporate Services Teams

Albyn’s Corporate Services Teams, which includes Finance and ICT, continued to support the Albyn Group throughout the year. The team supported the Board in reviewing the number of houses we would build and ensuring that the corporate and financial governance of the Society remained strong.

The team has continued to work with the operational teams in Albyn and HRL to provide up to date and streamlined processes and systems to help them provide good service to our customers on a dayto-day basis.

Our IT strategy continues to be implemented focusing on the implementation and exploitation of core systems within Housing, Finance, HR and Asset Management. The output of this work will aim to deliver robust secure systems, enabling efficient and effective processes enhancing the customer experience of Albyn as a landlord.

Albyn Enterprises Limited

Albyn Enterprises Limited (AEL) is a wholly owned subsidiary.

The Board made a decision to transfer AELs activities, assets and liabilities to other parts of the group. This was initially affected in the March 2025 financial statements when the company ceased trading and then in the current year the remaining assets and liabilities were transferred to Albyn Housing Society. The closure of the bank accounts at the end of March 2026 now puts the company into a nontrading status and the company will be dissolved once it's accounts are signed.

Highland Residential (Inverness) Limited (HRIL)

HRIL has continued to develop its offering to the affordable homes market through expansion of MMR and development of the factoring service.

In the year to 31 March 2026, the Factoring Services team continued to deliver services to tenants of Albyn as well as the owners of homes in our developments. The portfolio of mid-market rental homes grew, and our other sales and lettings activities performed well. Against this backdrop, the business continued its improved performance delivering a strong operating surplus for the year.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Other Matters

Credit Payment Policy

Albyn’s policy concerning the payment of its trade creditors complies with the Confederation of British Industry guidelines. The average payment period is within thirty days.

Rental Income

Albyn’s Rent Policy is based on the size, type and facilities available to each home. The policy ensures that the rent structure is easy to administer and covers the wide variations of properties that we own and manage. The rent charged is reviewed annually to ensure that the rents cover the required costs. The rent increase was consulted with tenants for the 2025/26 financial year. This policy follows the generally accepted practice / principles of the RSL Sector.

Sales of Housing Properties

We sold 2 homes on the open market in 2026 (2025 – 1) and sold 3 (2025 - 2) Shared Ownership properties in the year to their sharing owners.

Management Structure

The Board has overall responsibility for Albyn and there is a formal schedule of matters specifically reserved for decision by the Board.

Risk Management Policy

The Board has a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the six critical success factors for Albyn then analysing the types of risks Albyn faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of this process the Board has reviewed the adequacy of Albyn’s current internal controls.

The Board has set policies on internal controls which cover the following:

In order to ensure that these policies are adhered to, management has:

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Albyn holds a full strategic risk register but has identified the following key risks in the year and has in place appropriate mitigation measures:

Health & Safety

A failure to maintain and operate an effective Health & Safety management System leading to a breach of legal obligations and significant regulatory or statutory intervention.

Mitigation Measure

Health & Safety Management System including a consultative Health & Safety Committee.

Cyber Security

Breach of IT security leading to a significant loss of data, functionality and service.

Mitigation Measure

Network management security controls and testing.

IT Management

Failure of the capability or capacity of the IT management system leading to potential service failure and/or data loss

Mitigation Measure

Contractual Obligations of the provider and monitoring of service performance

Housing Development

Failure of the development programme to deliver the outcomes either on time or within budget leading to financial and/or reputational loss.

Mitigation Measure

Project management techniques and stakeholder partnership working.

Recruitment & Retention of Staff

Failure to recruit or retain suitably qualified and experienced staff leading to an erosion of the organisations ability to deliver for its customers.

Mitigation Measure

Recruitment policy and use of multiple recruitment techniques.

External Economic Conditions

Adverse changes in external economic conditions resulting in financial loss and a failure to deliver our objectives.

Mitigation Measure

Engagement with stakeholders and use of respected forecasting data.

Financial Viability

A failure in the financial management of the society leading to loss and breach of obligations to key stakeholders.

Mitigation Measure

Budgeting and financial management including sensitivity testing of financial models.

Asset Management

A failure of asset management resulting in statutory breach or failure to meet regulatory standards for the condition and quality of our housing stock.

Mitigation Measure

Asset management strategy and stock conditions surveys.

Data Protection

A failure in the governance, protection or integrity of data leading to serious breach.

Mitigation Measure

Data protection policy, professional advice and staff training.

Customer Experience

Poor customer service delivery leading to decline in customer satisfaction, and a failure to meet customer expectations.

Mitigation Measure

Regular KPI monitoring and customer satisfaction survey, procedural review.

Legal & Regulatory Compliance

Failure to meet our legal and regulatory obligations leading to intervention or failure of the society.

Mitigation Measure

Board approved policy, reporting of legal and regulatory compliance.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Sustainability and Asset Management

Albyn has a Sustainability Strategy, with a focus on sustaining Albyn as a business whilst helping improve the quality of life for the residents in our communities. This Strategy is supported by an Asset Management Strategy which identifies initiatives for sustaining / improving the performance of our property assets. Our Asset Management Strategy was updated following the completion of the stock condition survey in 2023.

Albyn has a long-term programme of major repairs to cover work which has become necessary since the original development was completed, including works required for subsequent legislative changes such as SHQS, EESSH and carbon net zero. This includes replacement or repairs to parts of the properties which have come to the end of their useful economic lives. The costs of these repairs are charged to the Income and Expenditure Account, unless it is agreed they be capitalised within the terms outlined in the Statement of Recommended Practice for Registered Social Landlords.

Budgetary Process

Each year the Board approves the five-year budgets and rolling thirty-year strategic Business Plan. Key risk areas are identified. Performance is monitored and relevant action taken throughout the year through quarterly reporting to the Board of variances from the budget, updating forecasts for the year where necessary together with information on the key risk areas. Approval procedures are in place in respect of major areas of risk such as major contract tenders, expenditure and treasury management.

Treasury Management

Albyn has an active treasury management function, which operates in accordance with the Treasury Policy approved by the Board. In this way Albyn manages its borrowing arrangements to ensure that it is always in a position to meet financial obligations as they fall due, whilst minimising excess cash and liquid resources held. The Treasury Management Policy was reviewed by the Board on 23 January 2024 and will be reviewed again in a further three years’ time.

The Audit and Risk Management Committee receives an annual report on the implementation of the Treasury Management Strategy as part of their assurance work.

Albyn, as a matter of policy, does not enter into transactions of a speculative nature. Albyn has a mix of fixed and variable rate finance, which it considers appropriate at this time.

Going Concern

Over the past few years, the period of high inflation followed by high interest rates and borrowing costs have eased. Whilst this is positive news, there remains many uncertainties and sensitivities in projecting the economic climate in which Albyn operates. The Board have considered a number of sensitivities within the organisation’s financial plans and have a reasonable basis on which make to judgements on the impact.

On 31 March 2026, the Board approved the annual budget and financial forecast for the next five-year period. The key assumptions and targets have been set with reference to the management of business risk. The Board continues to employ sensitivity testing with a number of differing scenarios after which the Board has further considered the impact on the business as a going concern.

Based on the budgetary processes detailed above, the Board has a reasonable expectation that Albyn has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Quality and Integrity of Staff

The integrity and competence of staff is ensured through high recruitment standards and subsequent training and development. High quality personnel are seen as an essential part of the control environment and the ethical standards expected are communicated through the Chief Executive. Our staff also have the opportunity to take part in a range of training opportunities to develop their skills and knowledge.

Albyn is committed to involving staff in decision-making and drafting policy. Albyn enjoys strong relationship with its recognised trade union working collaboratively to establish new and revised policy to meet the interest of the business and its staff.

Employee Involvement and Health and Safety

Albyn encourages employee involvement in all major initiatives and maintaining Health & Safety standards in all areas. A Health and Safety Committee is in place which includes membership from across the society. The outcomes of the work of the Committee inform both the Board and Leadership Team’s oversight of the health and safety system.

Disabled Employees

Applications for employment by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with Albyn may continue. It is the policy of Albyn that training, career development and promotion opportunities should be available to all employees.

Future Prospects

Albyn will continue with its policy of improving the quality of housing and housing services within its area of activity working with its existing and new partners.

The Board have approved an ongoing commitment to develop additional houses to contribute to the government’s overall targets for growth in affordable housing in Scotland. This commitment is reviewed each year as part of the Business Planning process. The medium-term commitment as set out in our Business Plan is to complete an additional 600 social housing units across the five-year business planning period subject to affordability and the support provided through Government grants.

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ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Board

The Board of Albyn during the year to 31 March 2026 and up to 30 June 2026 was as follows:

Name Office Bearing Date Appointed Attendance
(to year end
31March
2026)		 Committee
Membership
Ms L McInnes Chairperson
01/22 –present		 Board Member 09/22 – present 100%
Ms C Warner Vice Chair
09/23 - present		 Board Member 09/20 – present 91% REM
Mr C Patching Vice Chair
01/22 - 09/23		 Board Member 09/20 – present 100% REM
A&RM
Mr I Fosbrooke Secretary
09/20 -09/25		 Board Member 09/16 – 09/25 67% Rem
Ms F Mustarde Board Member 09/20 – 09/25 100% A&RM
Mr S MacLeod Board Member 09/23 -present 91% A&RM
Mr C Russell Board Member 09/23 – 09/25 100%
Mr C Levy Board Member 09/23 -present 80%
Ms J Bugden Board Member 09/23 -present 73%
Ms L Holburn Board Member 09/23 - present 92% A&RM (to
09/25)
Mr N Owen Board Member 09/23 -present 82% A&RM
Ms A Newlands Board Member 09/25 -present 75% REM
Ms T Semple Board Member 09/25 -present 50% A&RM
Mr E McGarrie Board Member 09/25 -present 100% A&RM

Committees

Audit & Risk Management Committee (“A&RM”) Remuneration Committee (“Rem”)

Each member of the Board holds one fully paid share of £1.00 in Albyn. The executive officers of Albyn hold no interest in Albyn's share capital and although not having the legal status of “director” they act as executives within the authority delegated by the Board.

Board and Officers' Insurance

Albyn has purchased and maintains insurance to cover its Board and officers against liabilities in relation to their duties on behalf of Albyn, as authorised by the Society’s rules.

15

ALBYN HOUSING SOCIETY LIMITED

REPORT OF THE BOARD

FOR THE YEAR ENDED 31 MARCH 2026

Executive Team

The Directors of Albyn during the year and up to the date of signing the financial statements was as follows:

Ms Maureen Knight Interim Group Chief Executive Ms Kirsty Morrison Group Chief Executive (Resigned 20 October 2025) Mr Andrew Martin Executive Director of Group Services Ms Laurie MacLeod Head of Human Resources Mr Robert Buchanan Director if IT & Business Services

Disclosure of Information to the Auditor

The members of the Board at the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant information of which the auditors are unaware. They confirm that they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.

Auditor

A resolution for the reappointment of RSM UK Audit LLP, as auditors of the Society, will be proposed at the Annual General meeting.

By order of the Board

Maureen Knight Secretary 30 June 2026

16

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF BOARD’S RESPONSIBILITIES UNDER THE COOPERATIVE AND COMMUNITY BENEFIT SOCIETIES ACT 2014 FOR A REGISTERED PROVIDER OF SOCIAL HOUSING/REGISTERED SOCIAL LANDLORD

FOR THE YEAR ENDED 31 MARCH 2026

The Co-operative and Community Benefit Societies Act 2014 and registered social housing legislation require the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Society and of the Group and of the surplus or deficit for that period. In preparing these financial statements, the Board is required to:

The Board is responsible for instituting adequate systems of internal control and for:

The Board is responsible for the keeping of proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the Society and of the Group and to enable it to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014, the Housing (Scotland) Act 2010 and the Registered Housing Associations Determination of Accounting Requirements 2019.

The Board is responsible for the maintenance and integrity of the financial information included on the Albyn Housing Society website (www.albynhousing.org.uk).

By order of the Board

Maureen Knight Secretary 30 June 2026

17

ALBYN HOUSING SOCIETY LIMITED

BOARD’S STATEMENT OF INTERNAL FINANCIAL CONTROL

FOR THE YEAR ENDED 31 MARCH 2026

The Board acknowledges its ultimate responsibility for ensuring that the Society has in place a system of controls that is appropriate for the business environment in which it operates. These controls are designed to give reasonable assurance with respect to:

It is the Board’s responsibility to establish and maintain systems of internal financial control. Such systems can only provide reasonable, and not absolute, assurance against material financial misstatement or loss or failure to meet objectives. Key elements of the Society’s systems include ensuring that:

The effectiveness of the Society’s system of internal financial control has been reviewed by the Audit & Risk Management Committee for the year ended 31 March 2026. No weaknesses were found in internal financial controls which resulted in material losses, contingencies, or uncertainties which require disclosure in these financial statements or in the auditor's report on the financial statements.

By order of the Board

Maureen Knight Secretary 30 June 2026

18

REPORT BY THE AUDITOR TO THE MEMBERS OF

ALBYN HOUSING SOCIETY LIMITED

ON CORPORATE GOVERNANCE MATTERS

FOR THE YEAR ENDED 31 MARCH 2026

In addition to our audit of the Financial Statements, we have reviewed your statement on page 18 concerning the Society’s compliance with the information required by the Regulatory Standards for systemically important RSLs in respect of internal financial controls contained within the publication “Our Regulatory Framework” and associated Regulatory Advisory Notes which are issued by the Scottish Housing Regulator.

Basis of Opinion

We carried out our review having regard to the requirements to corporate governance matters within Bulletin 2006/5 issued by the Financial Reporting Council through enquiry of certain members of the Board and Officers of the Society and examination of relevant documents. The Bulletin does not require us to review the effectiveness of the Society’s procedures for ensuring compliance with the guidance notes, nor to investigate the appropriateness of the reason given for non-compliance.

Opinion

In our opinion the Statement on Internal Financial Control on page 18 has provided the disclosures required by the relevant Regulatory Standards for systemically important RSLs within the publication “Our Regulatory Framework” and associated Regulatory Advisory Notes issued by the Scottish Housing Regulator in respect of internal financial controls and is consistent with the information which came to our attention as a result of our audit work on the Financial Statements.

RSM UK Audit LLP

RSM UK AUDIT LLP Statutory Auditor Chartered Accountants Third Floor 2 Semple St Edinburgh EH3 8BL

Date 03/07/26

19

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

ALBYN HOUSING SOCIETY LIMITED

FOR THE YEAR ENDED 31 MARCH 2026

Opinion

We have audited the financial statements of Albyn Housing Society Limited (the ‘Society’) and its subsidiaries (the ‘Group’) for the year ended 31st March 2026 which comprise the Statement of Comprehensive Income - Group, Statement of Comprehensive Income – Society, Statement of Changes in Capital and Reserves – Group, Statement of Changes in Capital and Reserves – Society, Statement of Financial Position – Group, Statement of Financial Position – Society, Statement of Cashflows – Group, Statement of Cashflows – Society and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Co-operative and Community Benefit Societies Act 2014 and report in accordance with regulations made under those Acts.

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the association’s ability to continue as a going concern basis for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Board with respect to going concern are described in the relevant sections of this report.

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit

20

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

ALBYN HOUSING SOCIETY LIMITED

FOR THE YEAR ENDED 31 MARCH 2026

or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion:

Responsibilities of the Board

As explained more fully in the Board’s responsibilities statement set out on page 17, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the Society’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the Society or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

21

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

ALBYN HOUSING SOCIETY LIMITED

FOR THE YEAR ENDED 31 MARCH 2026

In relation to fraud, the objectives of our audit are to 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 appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Housing SORP 2018, the Scottish Housing Regulator’s Determination of Accounting Requirements – February 2019 and the Housing Acts. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures.

The most significant laws and regulations that have an indirect impact on the financial statements are the Housing (Scotland) Acts 2006, 2010 and 2014, the Co-operative and Community Benefit Societies Act 2014, the Scottish Housing Regulator’s Regulatory Framework (published 2019) and the Data Protection Act. We performed audit procedures to inquire of management and those charged with governance whether the Society are in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Society’s members as a body, in accordance with Part 7 of the Cooperative and Community Benefit Societies Act 2014 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Society’s members those matters we are required to state to them in an auditor’s report and for no other purpose.

22

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

ALBYN HOUSING SOCIETY LIMITED

FOR THE YEAR ENDED 31 MARCH 2026

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLP

RSM UK Audit LLP Statutory Auditor Chartered Accountants Third Floor 2 Semple St Edinburgh EH3 8BL

Date 03/07/26

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

23

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF COMPREHENSIVE INCOME - GROUP

FOR THE YEAR ENDED 31 MARCH 2026

Notes
Turnover
2
Operating expenditure
2
Operating Surplus
7
Loss on disposal of fixed assets
6
Interest receivable
9
Interest and financing costs
10
Surplus before tax
Taxation
11
Surplus for the Year
Other Comprehensive Income
Actuarial Gain in respect of pension schemes
30
Total Comprehensive Income for the year
24		 2026
£'000
25,995
(20,459)
5,536
(8)
42
(4,623)
947
-
947
169
1,116		 2025
£'000
24,992
(19,515)
5,477
(206)
94
(4,965)
400
1
401
81
482

The accompanying notes form part of these financial statements.

24

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF COMPREHENSIVE INCOME - SOCIETY

FOR THE YEAR ENDED 31 MARCH 2026

Notes
Turnover
2
Operating expenditure
2
Operating Surplus
7
Loss on disposal of fixed assets
6
Interest receivable
9
Interest and financing costs
10
Surplus before tax
Taxation
11
Surplus for the Year
Other Comprehensive Income
Actuarial Gain in respect of pension schemes
30
Total Comprehensive Income for the year
24		 2026
£'000
25,302
(19,804)
5,498
(8)
291
(4,623)
1,157
-
1,157
169
1,326		 2025
£'000
24,398
(19,043)
5,355
(205)
209
(4,965)
394
-
394
81
475

The accompanying notes form part of these financial statements.

25

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF CHANGES IN CAPITAL AND RESERVES - GROUP

FOR THE YEAR ENDED 31 MARCH 2026

Balance at 01 April 2025
Total comprehensive Income for the year
Balance at 31 March 2026
Balance at 01 April 2024
Total comprehensive Income for the year
Balance at 31 March 2025
The notes form part of these financial statements		 Share
Capital
£000
1
-
1
1
-
1		 Revenue
Reserve
£000
44,123
1,116
45,239
43,641
482
44,123		 Total
Reserves
£000
44,124
1,116
45,240
43,642
482
44,124

26

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF CHANGES IN CAPITAL AND RESERVES - SOCIETY

FOR THE YEAR ENDED 31 MARCH 2026

Balance at 01 April 2025
Total comprehensive Income for the year
Balance at 31 March 2026
Balance at 01 April 2024
Total comprehensive Income for the year
Balance at 31 March 2025
The notes form part of these financial statements		 Share
Capital
£000
1
-
1
1
-
1		 Revenue
Reserve
£000
43,870
1,326
45,196
43,395
475
43,870		 Total
Reserves
£000
43,871
1,326
45,197
43,396
475
43,871

27

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF FINANCIAL POSITION - GROUP

AT 31 MARCH 2026

Notes
Fixed Assets
Housing properties
13
Other tangible fixed assets
14
Investments
15
Current Assets
Stock and Work in Progress
16
Trade and other debtors
17
Cash and cash equivalents
25
Current Liabilities
Creditors due within one year
18
Net Current Assets
Total Assets Less Current Liabilities
Creditors: amounts falling due after
more than one year
19
Provision For Liabilities
22
Provisions for Liabilities - Defined Benefit Liability
30
Total Net Assets
Capital and Reserves
Share capital
23
Income and Expenditure Reserve
24		 £'000
£'000
314,994
2,010
1
317,005
1,172
1,802
12,671
15,645
(11,611)
4,034
321,039
(274,516)
(183)
(1,100)
45,240
1
45,239
45,240
2026		 £'000
£'000
311,640
1,987
1
313,628
796
1,812
9,604
12,212
(11,391)
821
314,449
(268,951)
(174)
(1,200)
44,124
1
44,123
44,124
2025

The financial statements on pages 24 to 31 were approved by the Board and authorised for issue on 30 June 2026 and are signed on its behalf by:

Lesley McInnes - Chair

Clea Warner - Vice Chair

Maureen Knight - Secretary

28

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF FINANCIAL POSITION - SOCIETY

AT 31 MARCH 2026

Notes
Fixed Assets
Housing properties
13
Other tangible fixed assets
14
Investments
15
Current Assets
Stock and Work in Progress
16
Trade and other debtors
17
Cash and cash equivalents
25
Current Liabilities
Creditors due within one year
18
Net Current Assets
Total Assets Less Current Liabilities
Creditors: amounts falling due after
more than one year
19
Provisions for Liabilities
22
Provisions for Liabilities - Defined Benefit Liability
30
Total Net Assets
Capital and Reserves
Share capital
23
Income and Expenditure Reserve
24		 £'000
£'000
314,994
1,949
1
316,944
1,172
2,469
11,752
15,392
(11,354)
4,039
320,983
(274,516)
(169)
(1,100)
45,197
1
45,196
45,197
2026		 £'000
£'000
311,640
1,924
1
313,564
796
1,964
9,018
11,778
(11,160)
618
314,183
(268,951)
(161)
(1,200)
43,871
1
43,870
43,871
2025

The financial statements on pages 24 to 31 were approved by the Board and authorised for issue on 30 June 2026 and are signed on its behalf by:

Lesley McInnes - Chair

Clea Warner - Vice Chair

Maureen Knight - Secretary

29

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF CASHFLOWS - GROUP

FOR THE YEAR ENDED 31 MARCH 2026

Surplus before Tax for the year
Adjustments for non-cash items:
Depreciation of tangible fixed assets
Amortisation of capital grants
Increase in provisions
Gain on disposal of tangible fixed assets
Interest receivable
Interest payable
Taxation paid
Operating cash flows before movements in
working capital
Decrease/(Increase) in properties held for sale
Decrease/(increase) in trade and other debtors
Increase/(decrease) in trade and other creditors
Cash generated from operations
Cash flow from investing activities
Development of own property
Purchase of other fixed assets
Proceeds from sale of tangible fixed assets
Grants received
Interest received
Net cash used in investing activities
Cash flow from financing activities
Interest paid
Loans received
Loans repaid
Payments to pension past service deficit
Net cash from financing activities
Net Increase/(decrease) in cash and cash equivalents
Note 25 should be read in conjunction with this statement.		 2026
£'000
£'000
947
6,417
(3,306)
9
8
(42)
4,623
-
7,710
8,657
(375)
(463)
570
(269)
8,388
(10,153)
(202)
(8)
5,858
42
(4,464)
(4,554)
6,000
(2,303)
-
(857)
3,067
3,067		 2025
£'000
£'000
400
6,391
(3,255)
9
206
(94)
4,965
-
8,222
8,622
(154)
(86)
556
315
8,937
(10,494)
(163)
35
6,193
94
(4,335)
(4,905)
1,000
(2,213)
-
(6,118)
(1,516)

30

ALBYN HOUSING SOCIETY LIMITED

STATEMENT OF CASHFLOWS - SOCIETY

FOR THE YEAR ENDED 31 MARCH 2026

Surplus for the year
Adjustments for non-cash items:
Depreciation of tangible fixed assets
Amortisation of capital grants
Increase in provisions
Loss on disposal of tangible fixed assets
Interest receivable
Interest payable
Operating cash flows before movements in
working capital
Decrease/(increase) in properties held for sale
Decrease/(increase) in trade and other debtors
Decrease/(increase) in trade and other creditors
Cash generated from operations
Cash flow from investing activities
Development of own property
Purchase of other fixed assets
Proceeds from sale of tangible fixed assets
Grants received
Interest received
Gift Aid donation received
Net cash used in investing activities
Cash flow from financing activities
Interest paid
Loans received
Loans repaid
Payments to pension past service deficit
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Note 25 should be read in conjunction with this statement.		 2026
£'000
£'000
1,157
6,410
(3,306)
9
8
(291)
4,623
7,453
8,610
(375)
(464)
29
(810)
7,800
(10,153)
(197)
(8)
5,858
44
247
(4,209)
(4,554)
6,000
(2,303)
-
(857)
2,734
2,734		 2025
£'000
£'000
394
6,385
(3,255)
9
206
(209)
4,965
8,100
8,494
(154)
(266)
643
223
8,717
(10,494)
(103)
(24)
6,193
97
112
(4,219)
(4,905)
1,000
(2,213)
-
(6,118)
(1,620)

31

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

1 Accounting Policies

The principal accounting policies of the Group and the Society are set out in the paragraphs below.

a. Legal Status

Albyn Housing Society Limited is registered with the Financial Conduct Authority as a Cooperative and Community Benefit Society, and the Scottish Housing Regulator as a Registered Social Landlord under the Housing (Scotland) Act 2010. Albyn Housing Society Limited adopted Charitable Rules on 18 March 1997 and its Charity Number is SC 027123.

The Society’s address is listed on page 1. Its principal activities and the nature of its operations are detailed on page 2.

b. Basis of Accounting

These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), the Housing SORP 2018 “Statement of Recommended Practice for Registered Housing Providers” and the comply with the Determination of Accounting Requirements 2019, and under the historical cost convention.

Albyn Housing Society Limited is a public benefit entity (PBE). The financial statements are prepared in Sterling (£).

The consolidated financial statements consolidate the accounts of the Society and its commercial subsidiaries, Albyn Enterprises Limited (“AEL”) and Highland Residential (Inverness) Limited (“HRL”).

d. Critical Accounting Estimates and Areas of Judgement

Preparation of the financial statements requires management to make critical judgements and estimates concerning the future. Estimates and judgements are continually evaluated and are based on historical experience, advice from qualified experts and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are included below:

32

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

iii. Defined benefit obligation

e. Going Concern

Each year the Board approves the five-year budgets and rolling thirty-year strategic plan. Key risk areas are identified. Performance is monitored and relevant action taken throughout the year through quarterly reporting to the Board of variances from the budget, updated forecasts for the year where necessary together with information on the key risk areas.

On 31 March 2026, the Board approved the annual budget and financial forecast for the forthcoming period. The key assumptions and targets have been set with reference to the management of business risk during the previous year in which greater uncertainty of the global economic impacts of rising inflation, energy costs and conflict. The Board continues to employ sensitivity testing with a number of differing scenarios after which the Board has further considered the impact on the business as a going concern.

On that basis the Board has a reasonable expectation that the Group and Society has adequate resources to continue in operational existence for the foreseeable future. As a result, we continue to adopt the going concern basis of accounting in preparing the annual financial statements.

f. Turnover and Revenue Recognition

Turnover comprises rental and service charge income receivable in the period, income from shared ownership first tranche sales, sale of properties built for sale, other services provided at the invoice value (excluding VAT) and revenue grants receivable in the period.

Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting, net of any voids.

Income from first tranche sales and sales of properties built for sale is recognised at the point of legal completion of the transaction.

Revenue grants are receivable when the conditions for receipt of agreed grant funding have been met.

g. Government Grants

Government grants include grants receivable from the Scottish Government, local authorities and other government bodies. Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received, such as relevant costs being incurred and paid for.

Government grants received for housing properties are recognised in income over the useful economic life of the structure of the asset and, where applicable, the individual components of the structure (excluding land) under the accruals model.

On disposal of an asset for which a government grant was received, if there is no obligation to repay the grant, then any unamortised grant remaining is derecognised as a liability and recognised as income. Where there is a requirement to repay a grant, a liability is included in the Statement of Financial Position to recognise this obligation.

33

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

h. Other Grants

Grants received from non-government sources are recognised using the performance model. Grants are recognised as income when the associated performance conditions are met.

i. Gift Aid Policy

Donations received under the gift aid scheme to the parent association, Albyn Housing, from its subsidiaries are recognised as turnover upon receipt as it relates to the principal activities of the association and is eliminated on consolidation.

j. Tangible Fixed Assets - Housing Properties

Housing properties are properties for the provision of social housing or to otherwise provide social benefit and are principally properties available for rent and shared ownership.

Completed housing and shared ownership properties are stated at cost less accumulated depreciation and impairment losses. Cost includes the cost of acquiring land and buildings, and expenditure incurred during the development period.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that enhance the economic benefits of the assets, are capitalised as improvements. Such enhancements can occur if improvements result in either:

Shared ownership properties are split proportionally between fixed assets and current assets based on the element relating to expected first tranche sales. The first tranche proportion is classed as a current asset and related sales proceeds are included in turnover.

The remaining element is classed as a fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment. Where the first tranche has been sold prior to the acquisition of the properties, these are included in fixed assets only.

k. Depreciation of Housing Properties

Freehold land or assets under construction are not depreciated.

The Society separately identifies the major components of its housing properties and charges depreciation so as to write-down the cost of each component to its estimated residual value, on a straight line basis over the following years which are estimated lives for accounting purposes:

Land Nil
Assets under Construction Nil
Structure 100 Years
Roof 70 Years
Windows and Doors 30 Years
Heating 15 Years
Kitchen 20 Years
Bathroom 30 Years
Other Mechanical and Engineering Works 30 Years

l. Impairments of Fixed Assets

An assessment is made at each reporting date of whether there are indications that a fixed asset (including housing properties) may be impaired or that an impairment loss previously

34

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

recognised has fully or partially reversed. If such indications exist, the Society estimates the recoverable amount of the asset.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use of the asset based on its service potential, are recognised as impairment losses in the income and expenditure account.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in income and expenditure. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

m. Low Cost Initiatives for First Time Buyers (“LIFT”)

LIFT transactions are grants received from a grant making body and passed on to an eligible beneficiary. A grant making body has a benefit of a fixed charge on the property entitling the grant making body to a share of the proceeds on the sale of the property by the beneficiary. These are classified as investments and are carried at historical cost with the linked finance cost (the grant received) being deducted from the gross amount of the LIFT asset.

Completed properties for outright sale (mainly LIFT Properties) and work in progress are valued at the lower of cost and net realisable value. Cost comprises the cost of land, development and interest. Net realisable value is based on estimated sale price after allowing for all further costs of completion and disposal.

n. Sales of Housing Accommodation

Properties are disposed of under the appropriate legislation and guidance. All costs and grants relating to the share of property sold are removed from the financial statements at the date of sale, except for first tranche sales. Any grants received that cannot be repaid from the proceeds of sale are abated and the grant removed from the financial statements.

o. Shared Ownership

Proceeds from first tranche disposals of shared ownership properties are accounted for in the Income and Expenditure account of the period in which the disposal occurs, with any surpluses on disposal recognised in the Income and Expenditure account as turnover. The cost of disposal of first tranche disposals is included within cost of sales. The first tranche element of any unsold properties is shown as a current asset.

p. Other Tangible Fixed Assets

Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:

Freehold buildings Up to 75 years
Computer equipment 4 years
Fixtures, fittings and equipment 7 years

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

35

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

q. Leases and Hire Purchase Contracts

Rentals paid under operating leases are charged to income as incurred.

r. Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition and construction of qualifying properties are added to the cost of those properties until such a time as the properties are ready for their intended use or sale.

All other borrowing costs are expensed as incurred.

s. Value Added Tax

The Society is VAT registered, however a large proportion of income, namely rents, is exempt for VAT purposes therefore giving rise to a Partial Exemption calculation. Expenditure is shown inclusive of VAT.

t. Deposits and Liquid Resources

Cash comprises cash in hand and deposits repayable on demand less overdrafts repayable on demand. Liquid resources are current asset investments that are disposable without curtailing or disrupting the business and are readily convertible into known amounts of cash at or close to their carrying value.

u. Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

Employees are entitled to carry forward up to five days of any unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the period in which the employee’s services are received.

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the Society is demonstrably committed to terminating the employment of an employee or to provide termination benefits.

v. Retirement Benefits

Defined contribution plans

For defined contribution schemes the amount charged to income and expenditure is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Defined benefit plans

Scottish Housing Association Pension Scheme (SHAPS)

The Association recognises its share of scheme assets and scheme liabilities as a past service deficit liability based on the present value of the Association’s deficit funding agreement.

As at the year ended 31 March 2026, the net defined benefit pension deficit liability was £1,100k (2025 – £1,200k), which has been included within the provisions for pensions liability in the financial statements.

In the year ended 31 March 2025, the current service cost and costs from settlements and curtailments are charged against operating surplus. Past service costs are recognised in the current reporting period within the income and expenditure account. Interest is calculated on the net defined benefit liability. Remeasurements are reported in other comprehensive income. Refer to Note 30 for more details.

36

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

w. Provisions

Provisions are recognised when Albyn Housing Society Limited has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

x. Taxation

Albyn is considered to pass the tests set out in paragraph 1 schedule 6 of the Finance Act 2010 and meets the definition of a charitable company for UK corporation tax purposes. Accordingly, it is potentially exempt from taxation in respect of income or capital gains received within categories set out in chapter 3 part II of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent such income or gains are applied exclusively to charitable purposes.

The tax expense for subsidiary undertakings represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable. Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

y. Financial Instruments

The Association has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Association becomes a party to the contractual provisions of the instrument and are offset only when the Association currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Receivables

Receivables which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Receivables are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a trade receivable constitutes a financing transaction, the receivable is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of receivables is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade receivable over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in

37

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

Income and Expenditure.

Financial liabilities

Trade and other payables

Trade payables payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a trade payable constitutes a financing transaction, the payable is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, 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. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled, or expires.

38

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

2.1
Particulars of Turnover, Operating Costs and Operating Surplus - Group
2026
Turnover
Operating
costs
Operating
surplus
Notes
£'000
£'000
£'000
Affordable Letting Activities
3
25,356
(19,157)
6,199
Other Activities
4
639
(1,302)
(663)
Total
25,995
(20,459)
5,536
2025
24,992
(19,515)
5,477
2.2
Particulars of Turnover, Operating Costs and Operating Surplus - Society
2026
Turnover
Operating
costs
Operating
surplus
Notes
£'000
£'000
£'000
Affordable Letting Activities
3
25,051
(18,982)
6,069
Other Activities
4
251
(822)
(571)
Total
25,302
(19,804)
5,498
2025
24,398
(19,043)
5,355
3.1
Particulars of Turnover, Operating Costs and Operating Surplus from Affordable Letting Activities - Group
General
Needs
Housing
Shared
Ownership
Housing
2026
£'000
£'000
£'000
Rent Receivable Net of Service Charges
21,007
300
21,307
Service Charges
841
-
841
Gross Income from Rents and Service Charges
21,848
300
22,148
Less Voids
(142)
-
(142)
Net Income from Rents and Service Charges
21,706
300
22,006
Grants Released from Deferred Income
3,350
-
3,350
Total Turnover from Affordable Letting Activities
25,056
300
25,356
Management and Maintenance Administration Costs
7,159
185
7,344
Service Costs
929
-
929
1,021
-
1,021
Reactive Maintenance Costs
3,442
-
3,442
Bad Debts - Rents and Service Charges
183
-
183
Depreciation of Affordable Let Properties
6,216
23
6,239
Operating Costs for Affordable Letting Activities
18,950
208
19,157
Operating Surplus for Affordable Lettings Activities
6,107
92
6,199
2025
5,581
226
5,807
Planned and Cyclical Maintenance
including Major Repairs Costs		 2025
Operating
surplus
£'000
5,807
(330)
5,477
2025
Operating
surplus
£'000
5,786
(431)
5,355
2025
£'000
20,584
806
21,390
(146)
21,244
3,331
24,575
7,076
708
1,075
3,609
109
6,192
18,768
5,807

39

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

3.2 Particulars of Turnover, Operating Costs and Operating Surplus from Affordable Letting Activities - Society

Rent Receivable Net of Service Charges
Service Charges
Gross Income from Rents and Service Charges
Less Voids
Net Income from Rents and Service Charges
Grants Released from Deferred Income
Total Turnover from Affordable Letting Activities
Management and Maintenance Administration Costs
Service Costs
Reactive Maintenance Costs
Bad Debts - Rents and Service Charges
Depreciation of Affordable Let Properties
Operating Costs for Affordable Letting Activities
Operating Surplus for Affordable Lettings Activities
2025
Planned and Cyclical Maintenance
including Major Repairs Costs		 General
Needs
Housing
£'000
20,702
841
21,543
(142)
21,401
3,350
24,751
6,866
1,047
1,021
3,442
183
6,216
18,775
5,976
5,561		 Shared
Ownership
Housing
£'000
300
-
300
-
300
-
300
185
-
-
-
-
23
208
92
226		 2026
£'000
21,002
841
21,843
(142)
21,701
3,350
25,051
7,051
1,047
1,021
3,442
183
6,239
18,982
6,069
5,786		 2025
£'000
20,313
806
21,119
(146)
20,973
3,331
24,304
6,683
850
1,075
3,609
109
6,192
18,518
5,786

4.1 Particulars of Turnover, Operating Costs and Operating Surplus from Other Activities - Group

Factoring
Uncapitalised Development
Administration Costs
NSSE Properties for Sale
Housing Adaptations
Subsidiary Operating Costs
Other Activities
Operating Deficit
2025		 Grants from
Other
Scottish
Ministers
Revenue
Grants
Other
Income
Total
Turnover
£'000
£'000
£'000
£'000
-
-
247
247
-
-
-
-
-
-
-
-
-
-
228
228
-
-
-
-
-
-
163
163
-
-
639
639
-
-
417
417		 Operating
Costs
£'000
(168)
(566)
-
(242)
(285)
(42)
(1,302)
(747)		 2026
Operating
Surplus
/(Loss)
£'000
79
(566)
-
(14)
(285)
121
(664)
(330)		 2025
Operating
Surplus /(Loss)
£'000
34
(432)
-
-
-
68
(330)

The Determination includes additional information lines to those shown in notes 3 and 4 above.

The Board does not feel that any additional information is required with regards to these notes.

4.2 Particulars of Turnover, Operating Costs and Operating Surplus from Other Activities - Society

Uncapitalised Development
Administration Costs
Housing Adaptations
Other Activities
NSSEPropertiesfor Sale
Operating Deficit
2025		 Grants from
Scottish
Ministers
Other
Income
Total
Turnover
£'000
£'000
£'000
-
-
-
-
228
228
-
23
23
-
-
-
-
251
251
-
94
94		 Operating
Costs
£'000
(565)
(242)
(15)
-
(822)
(525)		 2026
Operating
Surplus
/(Loss)
£'000
(565)
(13)
7
-
(571)
(431)		 2025
Operating
Surplus /(Loss)
£'000
(431)
-
-
-
(431)

The Determination includes additional information lines to those shown in notes 3 and 4 above.

The Board does not feel that any additional information is required with regards to these notes.

40

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

5
Accommodation in Management - Group and Society
Tenanted
Mid-Market
Shared
Rent
Ownership
2026
The number of properties in management were as follows:
No
1 April
3,490
251
12
105
3,858
Additions during the year
27
7
34
Conversion from Shared Ownership
-
Disposals
(2)
(3)
(5)
31 March 2026
3,515
258
12
102
3,887
2025
3,490
251
12
105
3,858
6 a
Surplus on Sale of Fixed Assets - Housing Properties
2026
2025
2026
2025
£'000
£'000
£'000
£'000
Sale proceeds
411
181
411
181
Carrying value of fixed assets
(251)
(149)
(251)
(149)
160
32
160
32
Capital Grant repaid
-
-
-
-
160
32
160
32
6 b
Deficit on Replacement of Components
(169)
(237)
(169)
(237)
(8)
(205)
(8)
(205)
7
Operating surplus
Operating surplus is stated after charging:
Auditors' remuneration
37
43
33
32
Operating lease rentals [note 29]
47
47
47
50
Surplus on disposal of tangible fixed assets [note 6]
160
32
160
32
Depreciation of housing properties
6,239
6,193
6,239
6,192
Depreciation of other tangible fixed assets
178
199
172
192
Depreciation of intangible fixed assets
-
-
-
-
RSM UK Audit LLP's associated company received £0 (2023 - £0) for professional services other than audit.
8
Key Management Personnel and Employees
2026
2025
2026
2025
£'000
£'000
£'000
£'000
[a] Staff costs including Key Management Personnel's emoluments
Salaries
3,851
3,806
3,643
3,522
Social security costs
532
408
498
385
Severance Costs
132
-
132
-
Defined contribution pension cost
380
335
362
320
Other pension costs
-
-
-
-
4,895
4,549
4,635
4,227
Temporary, seconded and agency staff costs
104
246
92
224
Development administration costs capitalised
(158)
(147)
(158)
(147)
4,842
4,648
4,570
4,304
No
No
No
No
Average monthly number of full time equivalent persons employed
Asset Management and Investment
23
23
23
23
Customer Services
36
39
36
39
Factoring
4
3
-
-
Sales and Letting
4
3
-
-
Innovative Projects
-
-
-
-
Finance and Corporate Services
22
23
22
22
89
91
81
84
Group
Society
Managed on
behalf of
others
Group
Society		 2025
No
3,852
11
-
(5)
3,858

41

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

[b] Key Management Personnel

Under FRS102 Albyn Housing Society has defined "key management personnel" as the members of the senior management team whose posts are set out on page 16 of the Report and Financial Statements.

Severance payments totalling £132k (2025: £Nil) were recognised during the year. These relate to termination benefits, including amounts paid under settlement agreement, recognised in accordance with FRS 102. Included within this balance is an amount relating to former members of staff. No further amounts are payable at the year end 2026 2025

to former members of staff. No further amounts are payable at the year end
Number of Key Management Personnel earning:
60,001
£
70,000
£
70,001
£
80,000
£
80,001
£
90,000
£
90,001
£
100,000
£
100,001
£
110,000
£
120,001
£
130,000
£
130,001
£
140,000
£
Aggregate emoluments payable to key management personnel
(excluding pension contributions but including benefits in kind)
Aggregate pension contributions in relation to the above key management personnel
Emoluments payable to the Chief Executive
(excluding pension contributions)
Board members are not paid for there services.
Expenses paid to Board Members totalled £3,335 (2025 - £4,790).
9
Interest Receivable and Similar Income
2026
2025
£'000
£'000
Interest receivable from banks
42
94
Gift Aid Donation from Subsidiary
-
-
42
94
10
Interest and Financing Costs
Bank and Building Society loans and overdrafts
4,624
4,905
Defined Benefit pension charge
69
60
4,693
4,965
Less: Interest Capitalised on housing properties constructed
(70)
-
4,623
4,965
11
Taxation
Current Tax:
UK corporation tax on profits of current year
-
-
Deferred Tax:
Origination and reversal of timing differences
-
1
-
1
Reconciliation of Current Tax charge:
Profit on ordinary activities before taxation
52
119
Profits exempt due to charitable exemption
(52)
(112)
0
7
Effects of depreciation in excess of capital allowances
(2)
(18)
Tax adjustments and other timing differences
-
11
Profits subject to Corporation Tax
(2)
-
Tax charge at 25% / 25%
-
-
Salary Bands
Group		 2026
2025
Group and Society
No
No
-
-
1
1
1
1
-
1
1
1
1
-
1
1
2026
2025
£
£
587,360
435,520
45,956
36,302
215,405
139,840
2026
2025
£'000
£'000
44
97
247
112
291
209
4,624
4,905
69
60
4,693
4,965
(70)
-
4,623
4,965
-
-
-
-
-
-
Society

Albyn Housing Society Limited was recognised as a Charity on 18 March 1997. Albyn Housing Society Limited does not undertake any activities outwith those associated with its charitable activities. Albyn Housing Society Limited has no liability to Corporation Tax.

42

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

12 Intangible Fixed Assets - Group

Intangible Fixed Assets - Group
Cost
1 April 2025
Additions
Disposals
31 March 2026
Amortisation
1 April 2025
Charge
Disposals
31 March 2026
Net Book Value
31 March 2026
31 March 2025
Tangible Fixed Assets - Housing Properties - Group and Society
Rented
Occupation
£'000
Cost
1 April 2025
370,233
Additions
-
Transfers
7,452
Properties acquired
1,111
Works to existing properties
2,492
Schemes completed
-
Adjustments
-
Disposals
(1,235)
31 March 2026
380,054
Depreciation
1 April 2025
74,130
Depreciation charged in year
6,216
Released on disposal
(877)
31 March 2026
79,469
Net Book Value
31 March 2026
300,585
31 March 2025
296,103
Expenditure on works to existing properties
Improvement work capitalised
Replacement component spend capitalised
Amounts charged to income and expenditure
Total major repairs spend
Finance costs
Aggregate amount of finance costs included in the cost of housing properties		 Shared
Ownership
£'000
3,587
-
-
-
-
-
-
(80)
3,507
985
23
(3)
1,004
2,503
2,602		 Under
Construction
£'000
12,934
8,916
(7,452)
-
(2,492)
-
-
-
11,906
-
-
-
-
11,906
12,935
2026
£'000
261
2,231
-
2,492
2,252		 Website &
Branding
£'000
21
-
-
21
21
-
-
21
-
-
Total
£'000
386,754
8,916
-
1,111
-
-
-
(1,315)
395,467
75,114
6,239
(880)
80,473
314,994
311,640
2025
£'000
-
1,999
106
2,105
2,182

13 Tangible Fixed Assets - Housing Properties - Group and Society

The cost of land included in the costs above totals £48,858,487 (2025: £48,348,487)

Albyn Housing Society Limited considers individual schemes to be separate cash generating units when assessing for impairment, in accordance with Statement of Recommended Practice 2014.

43

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

14.1 Tangible Fixed Assets - Other Fixed Assets - Group

Cost
1 April 2025
Additions
Disposals
31 March 2026
Depreciation
1 April 2025
Charge
Disposals
31 March 2026
Net Book Value
31 March 2026
31 March 2025
Tangible Fixed Assets - Other Fixed Assets - Society
Cost
1 April 2025
Additions
Disposals
31 March 2026
Depreciation
1 April 2025
Charge
Disposals
31 March 2026
Net Book Value
31 March 2026
31 March 2025		 Offices
£'000
2,438
-
-
2,438
753
39
-
792
1,646
1,684
Offices
£'000
2,437
-
-
2,437
755
38
-
793
1,644
1,682		 Equipment
£'000
2,164
202
-
2,366
1,862
140
-
2,002
364
302
Equipment
£'000
1,990
197
-
2,187
1,748
133
-
1,881
306
242		 Total
£'000
4,602
202
-
4,804
2,616
178
-
2,794
2,010
1,986
Total
£'000
4,426
197
-
4,623
2,503
172
-
2,674
1,949
1,924

14.2 Tangible Fixed Assets - Other Fixed Assets - Society

Other Investments - Group and Society

Apple Juice (Applecross) Ltd 1,000 shares in Community Benefit Society Community Hydro Scheme

Subsidiary Undertakings - Society

Albyn Housing Society Limited's subsidiary undertakings are:

Class of
Name of undertaking
shareholding
Albyn Enterprises Ltd
Ordinary
Highland Residential (Inverness) Ltd
Ordinary
Sunnd Ltd
Ordinary
Stock and Work in Progress
Properties for Sale		 Proportion of nominal
value held directly
100% (2024: 100%)
100% (2024: 100%)
100% (2024: 100%)
2026
2025
£'000
£'000
1,172
796
1,172
642
Group		 Nature of business
Property related activities
Renting/operating of housing real estate
Dormant
2026
2025
£'000
£'000
1,172
796
1,172
642
Society

44

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

17
Debtors
2026
2025
Amounts falling due within one year
£'000
£'000
Rent and service charges receivable
820
877
Less: provision for bad and doubtful debts
(114)
(102)
706
775
HAG receivable
208
167
Other debtors
255
378
Prepayments and accrued income
633
492
Amounts due from Group undertakings
-
-
1,802
1,812
Amounts falling due after more than one year
Amounts due from Group undertakings
-
-
1,802
1,812
18
Creditors: amounts falling due within one year
Debt [note 20]
2,903
2,843
Rent and service charges received in advance
1,268
1,183
Deferred capital grants [note 21]
3,284
3,121
Trade creditors
1,794
1,708
Corporation tax [note 11]
-
-
Other taxation and social security costs
122
118
Other creditors
1,671
1,695
Accruals and deferred income
569
723
Amounts due to Group undertakings
-
-
11,611
11,391
Included in creditors is an amount of £1,296,925 (2025 - £1,229,556) relating to payments due
to the Scottish Government. £0 (2025 - £0) relates to capital and £1,296,925
(2025 - £1,229,556) to revenue activities.
19
Creditors: amounts falling due after more than one year
Debt [note 20]
98,604
94,967
Deferred capital grants [note 21]
175,912
173,984
274,516
268,951
Included in creditors are:
192,778
191,498
58,050
55,171
250,828
246,669
20
Debt Analysis - Borrowings
2026
2025
£'000
£'000
Creditors: amounts falling due within one year
Bank Loans
2,903
2,843
Creditors: amounts falling due after more than one year
Bank Loans
98,604
94,967
The loans are secured by specific charges on Albyn Housing Society Limited's properties and
the capital instalments are repayable over periods as indicated at varying rates of interest
ranging from 0% to 5.82% (2025 - 0% to 5.82%).
Based on the lender's earliest repayment date, borrowings are repayable as follows:
In the next year
2,903
2,843
In the second year
2,993
2,925
In the third to fifth year
10,011
9,321
In more than five years
85,600
82,721
101,507
97,810
Group
Group
Amounts repayable other than by instalments falling due after
more than five years
Amounts repayable by instalments falling due after more than
five years		 2026
2025
£'000
£'000
428
523
(20)
(28)
408
495
208
167
200
312
627
490
958
426
2,400
1,890
68
74
2,469
1,964
2,903
2,843
1,268
1,183
3,284
3,121
1,727
1,656
-
-
115
112
1,510
1,548
548
697
-
-
11,354
11,160
98,604
94,967
175,912
173,984
274,516
268,951
192,778
191,498
58,050
55,171
250,828
246,669
2026
2025
£'000
£'000
2,903
2,843
98,604
94,967
2,903
2,843
2,993
2,925
10,011
9,321
85,600
82,721
101,507
97,810
Society
Society

45

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

21
Deferred Capital Grant
2026
2025
£'000
£'000
1 April 2025
177,105
174,700
Grants received in the year
5,616
5,761
Grants reduced in the year
(220)
(101)
Grant released in the year
(3,306)
(3,255)
31 March 2026
179,195
177,105
Amounts to be released within one year
3,284
3,121
Amounts to be released in more than one year
175,912
173,984
179,196
177,105
Capital Grants received to 31 March 2026 total £233,437,740 (2025 - £228,041,441);
if the Society were to sell its assets this amount would be repayable from the proceeds.
22
Provisions for liabilities and charges
Biomass Infrastructure Replacement Fund
169
161
Deferred Tax
14
13
183
174
1 April 2025
174
166
Added in the year
9
8
Deferred tax charge in statement of comprehensive income
-
-
31 March 2026
183
174
23
Share Capital
Allocated, allotted, called up and fully paid
2026
2025
Ordinary shares of £1 each
No
No
1 April 2025
43
49
Joined during the year
6
-
Left during the year
(7)
(6)
31 March 2026
42
43
Group
Group		 2026
2025
£'000
£'000
177,105
174,700
5,616
5,761
(220)
(101)
(3,306)
(3,255)
179,196
177,105
3,284
3,121
175,912
173,984
179,196
177,105
169
161
-
-
169
161
161
152
8
9
-
-
169
161
2026
2025
No
No
43
49
6
-
(7)
(6)
42
43
Society
Society

Each member of Albyn Housing Society Limited holds one share of £1 in Albyn Housing Society Limited. These shares carry no rights to dividends or distributions on a winding up. When a shareholder ceases to be a member, that person's share is cancelled and the amount paid thereon becomes the property of Albyn Housing Society Limited. Each member has a right to vote at a members' meeting.

24
Reserves
1 April 2025
Surplus for the year
31 March 2026
25.1 Cash and Cash Equivalents - Group
Analysis of the balance of Cash as shown in the balance sheet.
Bank and Cash in hand		 2026
2025
£'000
£'000
44,123
43,641
1,116
482
45,239
44,123
2026
£'000
12,671
12,671
Group		 2026
2025
£'000
£'000
43,870
43,395
1,326
475
45,196
43,870
Change
2025
£'000
£'000
3,067
9,604
3,067
9,604
Society

46

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

25.2 Cash and Cash Equivalents - Society

Analysis of the balance of Cash as shown in the balance sheet.
Bank and Cash in hand		 2026
£'000
11,752
11,752		 Change
£'000
2,734
2,734		 2025
£'000
9,018
9,018

26 Treasury Management

Albyn Housing Society Limited has an active treasury management function, which operates in accordance with the Treasury Policy approved by the Board. In this way Albyn Housing Society Limited manages its borrowing arrangements to ensure that it is always in a position to meet its financial obligations as they fall due, whilst minimising excess cash and liquid resources held. At 31 March 2026 Albyn Housing Society Limited has a revolving credit loan facility in place which is fully drawn down, and a £10million loan facility with £4million not yet drawn.

Albyn Housing Society Limited, as a matter of policy, does not enter into transactions of a speculative nature. At 31 March 2026 Albyn Housing Society Limited has a mix of fixed and variable rate finance, which it considers appropriate at this time.

27 Related Party Transactions

Members of the Board are related parties of the Society as defined by FRS102. The related party relationships of the members of the Board are summarised as:

Ms J Bugden, Mr S Macleod, C Levy and I Fosbrooke served as members of the Board of Albyn Housing Society Limited and were tenants of Albyn. The rent which tenant Board members pay for their home and any balances on their tenancy accounts are managed at arms' length in accordance with the Society's policies and procedures in force from time to time.

Albyn Housing Society is in receipt of a non Interest bearing loan provided by The Highland Council to support the acquisition of development land for social housing. An amount of £490,000 was outstanding at the balances sheet date and is disclosed under Creditors: amounts falling due within one year.

Capital Commitments Group
Society
Capital expenditure contracted for but not provided in the 2026
2025
2026
2025
£'000
£'000
£'000
£'000
financial statements 19,640
6,735
19,640
6,735

28 Capital Commitments

All developments in progress have been approved by Scottish Government for payment of HAG. Albyn Housing Society Limited expects that the Scottish Government will finance most of the expenditure by HAG with the remaining expenditure financed by loans from lenders.

29 Obligations under Operating Leases

The total future minimum lease payments under non-cancellable operating leases for
fixed assets are as follows:
2026
2025
Land and Buildings
Expiring
£'000
£'000
In the next year
40
48
In the second year
26
41
In the third to fifth year
62
70
In more than five years
251
270
380
429
Group		 2026
2025
£'000
£'000
40
48
26
41
62
70
251
270
380
429
Society

30 Retirement Benefits

Scottish Housing Association Pension Scheme (SHAPS)

The company participates in the Scottish Housing Associations’ Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 150 non-associated employers. The Scheme is a defined benefit scheme in the UK.

The Scheme 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 Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2024. This valuation revealed a deficit of £79.5m. Deficit contributions will be reintroduced from April 2026 following a pause introduced in September 2022. The next triennial valuation will take place in 2027.

The Scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme.

47

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

Under the defined benefit pension accounting approach, the SHAPS net deficit is £1,100k as at 31 March 2026.

Present Values Of Defined Benefit Obligation, Fair Value Of Assets And Defined Benefit Asset (Liability)

2026 2025
£'000 £'000
Fair value of plan assets 8,420 8,513
Present value of defined benefit obligation 9,520 9,713
(Deficit) in plan
(1,100)
Reconciliation Of Opening And Closing Balances Of The Defined Benefit Obligation
2026
£'000
Defined benefit obligation at start of period
9,713
Current service cost
-
Expenses
16
Interest expense
544
Contributions by plan participants
-
Actuarial (gains)/losses due to scheme experience
(145)
Actuarial (gains)/losses due to changes in demographic assumptions
104
Actuarial (gains)/losses due to changes in financial assumptions
(125)
Benefits paid and expenses
(587)		 (1,200)
2025
£'000
10,497
-
15
503
-
192
-
(1,064)
(430)
Defined benefit obligation at end of period
9,520
Reconciliation Of Opening And Closing Balances Of The Fair Value Of Plan Assets
2026
£'000
Fair value of plan assets at start of period
8,513
Interest income
475
Experience on plan assets (excluding amounts included in interest income)
3
Contributions by the employer
16
Benefits paid and expenses
(587)		 9,713
2025
£'000
9,276
443
(791)
15
(430)
Fair value of plan assets at end of period
The actual return on the plan assets (including any changes in share of assets) over the
was £478,000 (2025: £348,000).
Defined Benefit Costs Recognised In Statement Of Comprehensive Income (SoCI)		 8,420
8,513
period ended 31 March 2026
Expenses
Net interest expense
Defined benefit costs recognised in statement of comprehensive income (SoCI)
Defined Benefit Costs Recognised In Other Comprehensive Income
Experience on plan assets (excl amounts included in net interest cost) - (loss)
Experience gains and losses arising on the plan liabilities - gain/(loss)
Total amount recognised in other comprehensive income - gain
Effects of changes in the demographic assumptions underlying the present value of
the defined benefit obligation - gain
Effects of changes in the financial assumptions underlying the present value of the
defined benefit obligation - gain
Total actuarial gains and losses (before restriction due to some of the surplus not
being recognisable) - gain
Effects of changes in the amount of surplus that is not recoverable (excluding
amounts included in net interest cost)		 2026
£'000
16
69
85
2026
£'000
(791)
145
125
1,064
169
-
169
 2025
£'000
15
60
75
2025
£'000
(791)
(192)
-
1,064
81
-
81

48

ALBYN HOUSING SOCIETY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2026

Assets
Absolute Return
Alternative Risk Premia
Cash
Credit
Credit Relative Value
Currency Hedging
Distressed Opportunities
Emerging Markets Debt
Global Equity
High Yield
Infrastructure
Insurance-Linked Securities
Investment Grade Credit
Liability Driven Investment
Liquid Alternatives
Long Lease Property
Net Current Assets
Opportunistic Illiquid Credit
Private Equity
Private Debt
Private Credit
Property
Real Assets
Risk Sharing
Secured Income
Total assets		 2026
£'000
-
-
3
384
-
-
-
-
1,112
-
-
16
353
2,324
1,610
-
126
-
18
-
1,086
439
835
-
114
8,420		 2025
£'000
-
-
45
362
-
14
-
-
986
-
2
32
389
2,397
1,568
3
11
-
7
-
1,062
422
1,016
-
197
8,513

None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.

Key Assumptions 2026 2025
£'000 £'000
Discount Rate 6.02% 5.77%
Inflation (RPI) 3.33% 3.11%
Inflation (CPI) 3.02% 2.78%
Salary Growth 4.02% 3.78%
75% of 75% of
maximum maximum
Allowance for commutation of pension for cash at retirement allowance allowance

Allowance for commutation of pension for cash at retirement

The mortality assumptions adopted at 31 March imply the following life expectancies:

2026 2025
Life Life
expectancy expectancy at
at age 65 age 65 (Years)
Male retiring now 20.7 20.2
Female retiring now 22.9 22.7
Male retiring in 20 years 21.9 21.5
Female retiring in 20 years 24.2 24.2

49