OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2026-03-31-accounts

Abertay Housing Association Limited

Report and Financial Statements For the year ended 31 March 2026

Registered Social Landlord No. HAL297 FCA Reference No. 2517R(S) Scottish Charity No. SC030152

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

Contents

ontents
Page
Members of the Board, Executive and Advisers 1
Report of the Board 2 – 9
Report by the Auditors on corporate governance matters 10
Report of the Auditors 11 -14
Statement of comprehensive income 15
Statement of financial position 16
Statement of cash flows 17
Statement of changes in equity 18
Notes to the financial statements 19 - 34

ABERTAY HOUSING ASSOCIATION LIMITED

BOARD, EXECUTIVE AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2026

BOARD

Chairperson Vice Chairperson Resigned 5 February 2026

Ron Neave Chairperson Kathleen Mands Vice Chairperson Kevin Braidwood Ian Byers Paul Crichton Resigned 5 February 2026 Alan Fraser Darren Keddie Callum Main Jennifer McAughtrie Graeme Watson Michelle Murray Appointed 27 May 2026

EXECUTIVE OFFICERS

Barry Moore Marjorie Sloan

Chief Executive Corporate Services Director and Secretary

REGISTERED OFFICE

147 Fintry Drive Dundee DD4 9HE

AUDITORS

TC Group Business Advisors and Accountants 180 St Vincent Street Glasgow G2 5SG

INTERNAL AUDITORS

Cameron Audit 4/2 Grosvenor Gardens Edinburgh EH12 5JU

BANKERS

Royal Bank of Scotland Plc 3 High Street Dundee DD1 9LY

SOLICITORS

Thorntons WS 33 Yeaman Shore Dundee DD1 4BJ

1

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

The Board presents its report and the Financial Statements for the year ended 31 March 2026.

Legal Status

Abertay Housing Association Limited (the Association) is a registered non-profit making organisation under the Co-operative and Community Benefit Societies Act 2014 No.2517R(S). The Association is governed under its Rule Book. The Association is a registered Scottish Charity with the charity number SC030152.

Principal Activities

The Association is a not for profit organisation, governed by a voluntary Board. The principal activity of the Association is the provision of affordable rented accommodation in an efficient, caring and friendly environment for people in housing need.

Strategy and Objectives

The Association’s overall aim is to enhance the quality of life in our communities.

The Association’s structure should be whatever best serves the long term interests of its tenants and communities. The Association believes that, for the foreseeable future, these interests are best served by the Association being run by a strong, independent, locally focussed Board, which includes tenants and other members of its communities within its membership. In 2019, an Options Appraisal was carried out which confirmed this position.

It is an overriding objective that the Association remains financially viable into the long term future. This will be achieved through effective financial and treasury management. The Association’s long term (30 year) financial forecasts give confidence that the Association can afford to maintain and improve its housing stock to meet all known future quality standards, while remaining financially viable.

Risk is an integral part of everything the Association does. The Association will seek to identify the risks it faces and take a prudent approach to managing them.

A focus on providing the best possible value for money is a key consideration for the Association. The Association participates in Scotland’s Housing Network’s Value for Money benchmarking group. The Association uses this information to inform its decision making, and report on how value for money is being achieved. Annual reports on Value for Money are prepared for the Board.

The Association’s key objectives in setting rent levels are as follows:

  1. To keep rents affordable for tenants, without risking the Association’s long term financial viability or ability to maintain our housing stock to a good standard.

  2. To maintain stability and predictability from year to year, (i.e. to favour small steady rises each year, rather than having low rises one year with excessively high rises the following year).

  3. To maintain its rents at levels which are reasonably in line with other social landlords in the local area.

2

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

The Association aims to maintain and improve its properties to a standard which ensures they continue to make desirable homes, so long as it is cost effective over the long term to do so. With deadlines for meeting the Scottish Housing Quality Standard (SHQS) and the Energy Efficiency Standard for Social Housing (EESSH) now passed, we have ten properties in abeyance from SHQS as tenants or owners have not consented to the required works and 106 properties with an exemption due to excessive costs. These properties are regularly reviewed. 3 properties fail the SHQS at 31 March 2026 as they did not have the required electrical certification. One of these properties was purchased by the Association shortly before 31 March and had works ongoing. Further energy efficiency targets in the form of EESSH2 will require to be met by December 2032. Achieving this objective as cost effectively as possible depends on excellent asset management planning, informed by detailed and up to date knowledge of the Association’s stock.

The Association aims to deliver excellent, customer focussed, value for money services in all its core areas. This includes:

The Association aims to provide high quality and effective services in these areas, and for this to be recognised by its regulators and other key decision makers in the sector.

The Association desires to acquire new homes, to improve both the quality and age profile of its stock, and increase its rental income. Ideally, the Association would wish to have a development programme of 30 – 50 new homes per year, which could be managed with its existing staff team.

Review of business and future developments

The Association continued to provide affordable rented accommodation and to maintain and improve our properties to a high standard during 2025/26.

The Board, in consultation with tenants, applied a rent increase of 6.0% from 1 April 2025 (2024 – 7.7%). The Association strives to ensure that its rents remain competitive and affordable for its tenants. The rent increase from 1 April 2026 was 8.0%.

3

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

The Association owned 1,906 properties at the end of the year. Of these, 237 are used to provide retirement housing. During the year one property was sold and twenty were purchased under the Association’s Acquisition and Disposal Strategy. The Association’s new build development of 10 houses at Oak Gardens, Newtyle was handed over in September / October 2025. The Association was progressing a development of 8 homes at Angus Street, Dundee at the year end, which was handed over in May 2026, and is currently progressing a development of 31 homes at Clepington Road, Dundee. The intention is to progress a development of 44 homes at the former Mossgiel Primary School site in Dundee later in 2026/27 and at further sites thereafter should grant funding availability allow.

The Association’s priorities are to provide the best standard of homes for affordable let, and the best standard of service it can. The Association undertook a programme of improvements and planned maintenance during the year with a total spend of £3.1m. The work which was carried out included external works - re-roofing, chimney repair or removal, replacement of windows and doors, footpath repairs, works to balconies and our maintenance paint work programme. Internally electrical testing and gas servicing was carried out and kitchens, bathrooms, air source heat pumps, electric heating systems and boilers were replaced. The Association will continue to spend heavily on improving its stock over the coming years.

Details of movements of the Association’s fixed assets during the year are set out in note 12.

No further loan agreements were entered into during the year. £1.0m was drawn down on our revolving credit facility, leaving £6.09m of borrowing from this agreement to be drawn. Regular payments were also made on the existing loans. The total bank borrowings increased from £20.28m to £20.70m at the year end. The Association’s bank balances decreased over the year, from £2.6m to £1.5m. The Association is currently working with its current lenders, following a tender process, to enter into new loans to a value of £21m to replace £15.29m of lending which will be repaid in bullet repayments in the next two financial years and to fund development and maintenance of existing stock.

The Association’s Risk Management Framework consists of three documents: Risk Management Policy, Risk Management Tables and Risk Assurance Register. The Board and the Senior Management Team review strategic and operational risks on a regular basis using a scoring mechanism which considers both the likelihood and probability of the risk and the severity of the impact if the risk were to materialise.

No risks are currently classified as intolerable. There are ten serious and significant risks, serious and significant in that without efficient and effective monitoring and mitigation they would have a serious and significant severity of impact on the Association’s Business Plan.

  1. Breach of the SHR Regulatory Framework and consequential regulatory intervention.

  2. Inadequate corporate governance and non-compliance with the Association’s Rules.

  3. Serious health and safety breach.

  4. Breaching loan covenants.

  5. Borrowing facilities not being in place when needed.

  6. Inflation implications.

  7. Unsuitable and insufficient development feasibility and viability assessment and financial appraisal resulting in developments failing.

  8. Asset management – failure to invest in maintaining the existing housing stock. 9. Net zero carbon.

  9. Increase in prices due to the current global crisis.

In addition to the ten serious and significant risks, efficient and effective control mechanisms are also in place to monitor, manage and mitigate all strategic and operational risks.

4

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

The Association, like all Registered Social Landlords, has been significantly effected by inflationary pressures. The Association has an abundance of strength in terms of financial capacity and human resource competence and capability to tolerate difficult scenarios and was able to navigate its path through the storm. Additional scenario planning and constant monitoring throughout the year, enabled us to adapt to circumstances.

We have therefore had a very successful year despite the challenges of the economic climate.

Key performance indicators

In accordance with the Scottish Social Housing Charter, the Association submits an Annual Return on the Charter to the Scottish Housing Regulator. This consists of a number of performance indicators. Some of these are included in a separate annual report to members. The key indicators, including some which are non Charter indicators, are reported to the Board on a quarterly basis.

Housing Quality and Maintenance

Satisfaction

The Association’s satisfaction figures come from a survey of all tenants carried out in spring 2025.

Getting Good Value from Rents and Service Charges

Neighbourhood and Community

5

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

Governance

The Association’s governing body is its Board which is responsible to the wider membership. The Board serves in a voluntary capacity and the Association recognises this puts more onus on the Senior Management Team to ensure that they achieve high standards of professionalism in their work.

The Board is elected from among the members at the AGM. There are up to 15 places on the Board which are split as follows:

It is possible for people to be invited to join the Board provided co-options do not exceed one third of the number of elected members.

The Board met regularly during the year, with strategy and governance training held between meetings. Sub-committees can be set up to deal with particular aspects of the Association’s affairs.

The Board is responsible for the Association’s Business Plan, which incorporates the Association’s strategic objectives in respect of governance, finance, housing services, property services and human resource management.

Board members act in a voluntary capacity and do not receive payment for their work beyond reasonable out-of-pocket expenses. They do not benefit from their position and cannot receive favourable treatment in any way – neither can their close relatives.

The Association’s engagement plan from the Scottish Housing Regulator shows its Regulatory Status as Compliant. The Board in its latest Assurance Statement is satisfied that the Association is compliant with the requirements of the Regulatory Framework and the Regulatory Standards of Governance and Financial Management.

The Association has appointed internal auditors who carried out four reviews during 2025/26 along with a follow up review looking at recommendations made in previous years. These are an important resource in demonstrating compliance with legislation and regulatory standards. They made four recommendations which, have been or will be implemented over the coming months.

Going concern

The Board has reviewed the results for this year and the budgets going forward. The Board has a good expectation that the Association has adequate resources to continue operational existence for the foreseeable future. The going concern basis of accounting has been adopted in preparing the financial statements.

Related Party Transactions

The tenants who sit on the Board have entered into tenancies on the Association’s normal terms and conditions and they cannot use their position to their advantage.

6

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

Board and Executive Officers

The members of the Board and the Executive Officers are listed on Page 1.

Each member of the Board holds one fully paid share of £1 in the Association unless they are Co-opted in which case they are not required to be a Share Member until they are elected at the next Annual General Meeting. The Executive Officers hold no interest in the Association's share capital and, although not having the legal status of Directors, they act as Executives within the authority delegated by the Board.

The members of the Board are also Trustees of the Charity. Members of the Board are appointed by the members at the Association's Annual General Meeting.

Statement of Board’s Responsibilities

The Co-operative and Community Benefit Societies Act 2014 requires the Board to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the Association and of the surplus or deficit of the Association for that period. In preparing those Financial Statements, the Board is required to:

The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to: ensure that the Financial Statements comply with the Co-operative and Community Benefit Societies Act 2014, the Housing (Scotland) Act 2014 and the Determination of Accounting Requirements 2024. It is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. It is also responsible for ensuring the Association's suppliers are paid promptly.

The Board must, in determining how amounts are presented within items in the income and expenditure account and balance sheet, have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting practices.

In so far as the Board is aware:

Statement on Internal Financial Control

The Board acknowledges its ultimate responsibility for ensuring that the Association 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:

7

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

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. Key elements of the Association's systems include ensuring that:

During 2025/26, the following internal audits were carried out:

Treasury Management: Level of Assurance - Substantial Assurance Factoring: Level of Assurance - Substantial Assurance Gas Safety: Level of Assurance - Substantial Assurance Tenant Engagement: Level of Assurance - Substantial Assurance Follow Up Audit on previous years recommendations: Level of Assurance - Reasonable Assurance

The Board has reviewed the effectiveness of the system of internal financial control in existence in the Association for the year ended 31 March 2026. No weaknesses were found in the internal financial controls which resulted in material losses, contingencies or uncertainties which require disclosure in the financial statements or in the auditor's report on the financial statements.

Donations

During the year the Association made charitable donations amounting to £1,953 (2025 - £2,500).

Auditors

A resolution to re-appoint the Auditors, TC Group will be proposed at the Annual General Meeting.

8

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026

By order of the Board

MARJORIE SLOAN Secretary 26 August 2026

9

ABERTAY HOUSING ASSOCIATION LIMITED

REPORT BY THE AUDITORS TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED ON CORPORATE GOVERNANCE MATTERS

In addition to our audit of the financial statements, we have reviewed your statement on pages 7 and 8 concerning the Association’s compliance with the information required by the Regulatory Standards in respect of internal financial controls contained in the publication “Our Regulatory Framework” and associated Regulatory Advice 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. The Bulletin does not require us to review the effectiveness of the Association’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 of Internal Financial Control on pages 7 and 8 has provided the disclosures required by the relevant Regulatory Standards within the publication “Our Regulatory Framework” and associated Regulatory Advice 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.

Through enquiry of certain members of the Board and Officers of the Association and examination of relevant documents, we have satisfied ourselves that the Board’s Statement on Internal Financial Control appropriately reflects the Association’s compliance with the information required by the relevant Regulatory Standards in respect of internal financial controls contained within the publication “Our Regulatory Framework” and associated Regulatory Advice Notes issued by the Scottish Housing Regulator in respect of internal financial controls.

TC Group Statutory Auditors GLASGOW 26 August 2026

10

ABERTAY HOUSING ASSOCIATION LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026

Opinion

We have audited the financial statements of Abertay Housing Association Limited (the ‘Association’) for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Equity and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 audit 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 Association’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

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

11

ABERTAY HOUSING ASSOCIATION LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)

Other Information (Contd.)

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 require us to report to you if, in our opinion:

Responsibilities of the Board

As explained more fully in the statement of Board’s responsibilities as set out on page 7, the Board is responsible for the preparation of the financial statements and for being satisfied that they give true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of the 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 Association’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 intend to liquidate the Association 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

12

ABERTAY HOUSING ASSOCIATION LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Association’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

13

ABERTAY HOUSING ASSOCIATION LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud (Contd.)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our Report

This report is made solely to the Association's members as a body, in accordance with Part 7 of the Cooperative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Association's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association's members as a body, for our audit work, for this report, or for the opinions we have formed.

TC Group Statutory Auditors GLASGOW 26 August 2026

14

ABERTAY HOUSING ASSOCIATION LIMITED

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026

Notes 2026
£
£		 2025
£
£
Revenue
2
15
Operating costs
2
OPERATING SURPLUS
Gain on sale of housing stock
7
Interest receivable and other income
Interest payable and similar charges
8
Other Finance income/(charges)
11
SURPLUS FOR THE YEAR
Other comprehensive income
Actuarial gains/(losses) on defined benefit
pension plan
18
TOTAL COMPREHENSIVE INCOME		 12,142,996
9,405,280
2,737,716
228,069
45,901
(1,094,213)
8,301
(811,942)
1,925,774
(92,317)
1,833,457		 11,076,256
8,742,136
2,334,120
116,532
32,432
(1,011,489)
168,619
(693,906)
1,640,214
(176,909)
1,463,305

The results relate wholly to continuing activities.

The notes on pages 19 to 34 form an integral part of these financial statements.

15

ABERTAY HOUSING ASSOCIATION LIMITED

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026

Notes 2026
£
£		 2025
£
£
NON-CURRENT ASSETS
Housing properties - depreciated cost
12a
62,570,998
57,578,919
Other tangible assets
12b
70,544
90,490
62,641,542
57,669,409
CURRENT ASSETS
Receivables
13
764,434
520,463
Cash and cash equivalents
14
1,513,800
2,642,360
2,278,234
3,162,823
CREDITORS:Amounts falling due within
one year
15
(7,307,230)
(1,917,653)
(NET CURRENT LIABILITIES) / ASSETS
(5,028,996)
1,245,170
TOTAL ASSETS LESS CURRENT
LIABILITIES
57,612,546
58,914,579
CREDITORS:Amounts falling due after
more than one year
16
(14,732,805)
(19,531,175)
PENSIONS AND OTHER PROVISIONS
FOR LIABILITIES AND CHARGES
Tayside pension fund
18
-
-
-
-
DEFERRED INCOME
Social housing grants
19
(20,685,700)
(19,022,803)
(20,685,700)
(19,022,803)
NET ASSETS
22,194,041
20,360,601
EQUITY
Share capital
20
76
93
Revenue reserves
22,193,965
20,360,508
22,194,041
20,360,601

The financial statements were approved by the Board and authorised for issue and signed on their behalf on 26 August 2026.

Committee Member Committee Member Secretary

The notes on pages 19 to 34 form an integral part of these financial statements.

16

ABERTAY HOUSING ASSOCIATION LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026

Notes £ 2026
£		 £ 2025
£
Surplus for the Year
Adjustments for non-cash items:
Depreciation of tangible fixed assets
2,840,166
Amortisation of capital grants
19
(502,739)
Gain on disposal of tangible fixed assets
(228,069)
Non-cash adjustments to pension provisions
(92,317)
Share capital written off
20
(25)
Interest receivable
Interest payable
8
Operating cash flows before movements in
working capital
Change in debtors
(153,971)
Change in creditors
154,119
Net cash inflow from operating activities
Investing Activities
Acquisition and construction of properties
(7,807,613)
Purchase of other fixed assets
(13,129)
Social housing grant received
2,075,636
Social housing grant repaid
-
Proceeds on disposal of housing properties
236,512
Net cash outflow from investing activities
Financing Activities
Loan Advances Received
1,000,000
Interest received on cash and cash equivalents
45,901
Interest paid on loans
(1,094,213)
Loan principal repayments
(562,912)
Share capital issued
20
8
Net cash outflow from financing activities
(decrease)/increase in cash
21
Opening cash & cash equivalents
Closing cash & cash equivalents
Cash and cash equivalents as at 31 March
Cash
21		 1,925,774
2,017,016
(45,901)
1,094,213
4,991,102
148
4,991,250
(5,508,594)
(611,216)
(1,128,560)
2,642,360
1,513,800
1,513,800
1,513,800		 2,751,031
(457,381)
(116,532)
(176,909)
(10)
146,972
211,350
(5,785,475)
(12,473)
1,705,888
(14,818)
138,095
1,000,000
32,432
(1,011,489)
(552,841)
3		 1,640,214
2,000,199
(32,432)
1,011,489
4,619,470
358,322
4,977,792
(3,968,783)
(531,895)
477,114
2,165,246
2,642,360
2,642,360
2,642,360

The notes on pages 19 to 34 form an integral part of these financial statements.

17

ABERTAY HOUSING ASSOCIATION LIMITED

STATEMENT OF CHANGES IN EQUITY AS AT 31 MARCH 2026

Share
Tayside
Pension
Revenue
Capital
Reserve
Reserve
Total
Balance as at 1 April 2024
Issue of Shares
Cancellation of Shares
Other comprehensive income
Other movements
Surplus for the year
Balance as at 31 March 2025
Balance as at 1 April 2025
Issue of Shares
Cancellation of Shares
Other comprehensive income
Other movements
Surplus for the year
Balance as at 31 March 2026		 £
£
£
£
100
-
18,897,203
18,897,303
3
-
-
3
(10)
-
-
(10)
-
(176,909)
-
(176,909)
-
176,909
(176,909)
-
-
-
1,640,214
1,640,214
93
-
20,360,508
20,360,601
93
-
20,360,508
20,360,601
8
-
-
8
(25)
-
-
(25)
-
(92,317)
-
(92,317)
-
92,317
(92,317)
-
-
-
1,925,774
1,925,774
76
-
22,193,965
22,194,041

The notes on pages 19 to 34 form an integral part of these financial statements.

18

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS

1. PRINCIPAL ACCOUNTING POLICIES

Statement of Compliance and Basis of Accounting

These financial statements were prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Statement of Recommended Practice for social housing providers 2018. The Association is a Public Benefit Entity in terms of its compliance with Financial Reporting Standard 102, applicable for accounting periods beginning on or after 1 January 2019. They comply with the Determination of Accounting Requirements 2024. A summary of the principal accounting policies is set out below.

Revenue

Revenue comprises rental and service charge income receivable in the period, income from shared ownership first tranche sales, sales of properties built for sale, other services provided, revenue grants receivable and government grants released to income in the period.

The Association recognises rent receivable net of losses from voids. Service Charge Income (net of voids) is recognised with expenditure as it is incurred as this is considered to be the point when the service has been performed and the revenue recognition criteria is met.

Government grants are released to income over the expected useful life of the asset to which they relate. Revenue grants are receivable when the conditions for receipt of the agreed grant funding have been met.

Retirement Benefits

The Association participates in the Tayside Pension Scheme which provides benefits on final pensionable salary, up to 31 March 2015, thereafter, these are based on a career average. The assets of the scheme are held and invested seperately from those of the Association.

The Association accounts for this scheme as a defined benefit pension scheme in accordance with FRS 102. Contributions to the scheme are charged to the Statement of Comprehensive Income so as to spread the costs of pensions over the employees' working lives with the Association.

The difference between the actual and expected return on assets during the year, including changes in actual assumptions, is recognised in the Statement of Comprehensive Income.

Going Concern

On the basis that the Board has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future, the Association has adopted the going concern basis of accounting in preparing these financial statements.

19

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

1. PRINCIPAL ACCOUNTING POLICIES (continued.)

Housing Properties

Housing properties are held for the provision of social housing. Housing properties are stated at cost less accumulated depreciation and impairment losses. Cost includes acquisition of land and buildings and development cost. The Association depreciates housing properties over the useful life of each major component. Housing under construction and land are not depreciated.

Component Useful Economic Life
Land Not Depreciated
Structure Over 50 years
Roofs Over 40 years
Windows and Doors Over 20 years
Bathrooms Over 15-20 years
Kitchens Over 15 years
Central Heating Over 15-20 years

Depreciation and Impairment of Other Tangible Assets

Non-current assets are stated at cost less accumulated depreciation. Depreciation is charged over the expected economic useful lives of the assets at the following annual rates:

Asset Category Depreciation Rate
Office Premises 4%
Housing Stock Improvements 5%
Machinery & Equipment 6.67%
Furniture & Fittings 10-20%
Computer Hardware & Software 25%

The carrying values of non-current assets are reviewed for impairment at the end of each reporting period.

Social Housing Grants and Other Capital Grants

Social housing grants and other capital grants are accounted for using the Accrual Method as outlined in Section 24 of Financial Reporting Standard 102. Grants are treated as deferred income and recognised in income on a systematic basis over the expected useful life of the property and assets to which they relate.

Social housing grant attributed to individual components is written off to the statement of comprehensive income when these components are replaced.

Although social housing grant is treated as a grant for accounting purposes, it may nevertheless become repayable in certain circumstances, such as the disposal of certain assets. The amount repayable would be restricted to the net proceeds of sale.

Sales Of Housing Properties

Disposals under shared equity schemes are accounted for in the statement of comprehensive income. The remaining equity in the property is treated as a non-current asset investment, which is matched with the grant received.

Taxation

The Association is a Registered Scottish Charity and is not liable to taxation on its charitable activities.

20

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

NOTES TO THE FINANCIAL STATEMENTS (Continued)

1. PRINCIPAL ACCOUNTING POLICIES (continued.)

Works to Existing Properties

The Association capitalises major repairs expenditure where these works result in an enhancement of economic benefits by increasing the net rental stream over the life of the property, a material reduction in future maintenance costs, or a significant extention of the life of the property.

Capitalisation Of Development Overheads

Directly attributable development administration costs relating to ongoing development activities are capitalised.

Borrowing Costs

Interest incurred on financing a development is capitalised up to the date of practical completion of the scheme. All other borrowing costs are expensed to the statement of comprehensive income using the effective interest rate method.

Property Development Cost

The proportion of the development cost of shared ownership properties expected to be disposed of as a first tranche sale is held in current assets until it is disposed of. The remaining part of the development cost is treated as a non-current asset. Surpluses made on the disposal of first tranche sales are taken to the Statement of Comprehensive Income.

Property developments that are intended for resale are included in current assets until disposal.

Financial Instruments - Basic

The Association classes all of its loans as basic financial instruments including agreements with break clauses. The Association recognises basic financial instruments in accordance with Section 11 of Financial Reporting Standard 102.

The Association's debt instruments are measured at amortised cost using the effective interest rate method.

Cash and Liquid Resources

Cash comprises cash at bank and in hand, deposits repayable on demand less overdrafts. Liquid resources are current asset investments that cannot be disposed of without penalty and are readily convertible into amounts of cash at their carrying value.

Impairment

The Association asseses at the end of each accounting period whether there are indications that a noncurrent asset may be impaired or that an impairment loss previously recognised has fully or partially reversed.

Where the carrying value of non-current assets is less that their recoverable amounts the shortfall is recognised as an impairment loss in the Statement of Comprehensive Income. The recoverable amount is the higher of the fair value less costs to sell and value-in-use of the asset based on its service potential.

Impairment losses previously recognised are reversed if the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Comprehensive Income.

21

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

1. PRINCIPAL ACCOUNTING POLICIES (continued.)

Key Judgements and estimates made in the application of Accounting Policies

The preparation of financial statements requires the use of certain accounting judgements and accounting estimates. It also requires the the Association to exercise judgement in applying the accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or estimates are most signficant to the financial statements are disclosed below.

Key Judgements

a) Categorisation of Housing Properties

In the judgement of the Board the entirety of the Association's housing stock is held for social benefit and is therefore classified as Property, Plant and Equipment in accordance with FRS 102.

b) Identification of cash generating units

The Board considers its cash-generating units to be the schemes in which it manages its housing property for asset management purposes.

c) Financial instrument break clauses

The Board has considered the break clauses attached to the financial instruments that it has in place for its loan funding. In their judgement these break clauses do not cause the financial instrument to be classified as a complex financial instrument and therefore they meet the definition of a basic financial instrument.

Estimation Uncertainty

a) Rent Arrears - Bad Debt Provision

The Association assesses the recoverability of rent arrears through a detailed assessment process which considers tenant payment history, arrangements in place and court action.

b) Life Cycle of Components

The Association estimates the useful lives of major components of its housing property with reference to surveys carried out by external qualified surveyors.

c) Useful life of properties, plant and equipment

The Association assesses the useful life of its properties, plant and equipment and estimates the annual charge to be depreciated based on this assessment.

d) Defined pension liability

In determining the value of the Association's share of defined benefit pension scheme assets and obligations, the valuation prepared by the Scheme actuary includes estimates of life expectancy, salary growth, inflation and the discount rate on corporate bonds.

e) Allocation of share of assets and liabilities for multi employer schemes

Judgements in respect of the assets and liabilities to be recognised are based upon source information provided by the administration of the multi employer pension schemes and estimations performed by the Tayside Pension Fund.

22

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

2. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT

Notes
Turnover
£
Affordable letting activities
3
11,248,004
Other Activities
4
894,992
Total
12,142,996		 Operating
costs
£
8,699,697
705,583
9,405,280		 2026
Operating
surplus /
(deficit)
Turnover
£
£
2,548,307
10,466,079
189,409
610,177
2,737,716
11,076,256		 Operating
costs
£
8,194,117
548,019
8,742,136		 2025
Operating
surplus /
(deficit)
£
2,271,962
62,158
2,334,120

3. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT FROM AFFORDABLE LETTING ACTIVITIES

General
Needs 2026 2025
Housing Total Total
£ £ £
Revenue from Lettings
Rent receivable net of service charges 10,584,106 10,584,106 9,877,411
Service charges receiveable 262,176 262,176 232,737
Gross income from rent and service charges 10,846,282 10,846,282 10,110,148
Less: Rent losses from voids 101,017 101,017 101,450
Income from rents and service charges 10,745,265 10,745,265 10,008,698
Grants released from deferred income 502,739 502,739 457,381
Total turnover from affordable letting activities 11,248,004 11,248,004 10,466,079
Expenditure on affordable letting activities
Management and maintenance administration costs 2,800,713 2,800,713 2,600,717
Service costs 146,829 146,829 156,423
Planned and cyclical maintenance, including major repairs 207,116 207,116 193,709
Reactive maintenance costs 2,600,785 2,600,785 2,411,725
Bad Debts - rents and service charges 137,163 137,163 126,181
Depreciation of affordable let properties 2,807,091 2,807,091 2,705,362
Operating costs of affordable letting activities 8,699,697 8,699,697 8,194,117
Operating surplus on affordable letting activities 2,548,307 2,548,307 2,271,962
2025 2,271,962

23

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

4. PARTICULARS OF REVENUE, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT FROM OTHER ACTIVITIES

Grants
from
Scottish
r
Ministers		 Grants
from
Scottish
r
Ministers		 Other
evenue
grants		 Operating
Operating
Operating
Other
surplus
surplus
Other
Total
costs -
operating
/ (deficit)
/ (deficit)
income
Turnover
bad debts
costs
2026
2025		 Operating
Operating
Operating
Other
surplus
surplus
Other
Total
costs -
operating
/ (deficit)
/ (deficit)
income
Turnover
bad debts
costs
2026
2025		 Operating
Operating
Operating
Other
surplus
surplus
Other
Total
costs -
operating
/ (deficit)
/ (deficit)
income
Turnover
bad debts
costs
2026
2025		 Operating
Operating
Operating
Other
surplus
surplus
Other
Total
costs -
operating
/ (deficit)
/ (deficit)
income
Turnover
bad debts
costs
2026
2025
Wider role activities
Care and repair
Factoring
Support activities
Other activities
Total From Other Activities
2025		 £
-
225,643
-
-
-
225,643
69,100		 £
£
£
1,200
-
1,200
-
-
225,643
-
245,831
245,831
-
186,675
186,675
-
235,643
235,643
1,200
668,149
894,992
3,400
537,677
610,177		 £
£
-
-
-
158,420
(8,025)
263,898
-
55,647
-
235,643
(8,025)
713,608
7,426
540,593		 £
£
1,200
-
67,223
(31,436)
(10,042)
(27,017)
131,028
120,611
-
-
189,409
62,158
62,158
62,158

24

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

5. OFFICERS' EMOLUMENTS

2026 2025
£ £
The Officers are defined in the Co-operative and Community Benefit Societies Act
2014 as the members of the Board, managers and employees of the Association.
Aggregate emoluments payable to Officers with emoluments greater than £60,000
(excluding pension contributions) 380,804 354,695
Pension contributions made on behalf on Officers with emoluments greater than
£60,000 86,538 76,435
Emoluments payable to Chief Executive (excluding pension contributions) 133,076 124,137
Pension contributions paid on behalf of the Chief Executive 29,910 26,515
Total emoluments payable to the Chief Executive 162,986 150,652
Total emoluments paid to key management personnel 598,738 431,130

The number of Officers, including the highest paid Officer, who received emoluments, including pension contributions, over £60,000 was in the following ranges:-

Number Number
£60,001 to £70,000 2 -
£70,001 to £80,000 1 1
£80,001 to £90,000 - 1
£90,001 to £100,000 1 -
£100,001 to £120,000 - 1
Over £120,000 2 1

6. EMPLOYEE INFORMATION

Average total number of employees employed during the year
Staff costs were:
Wages and salaries
National insurance costs
Pension costs
Temporary, agency and seconded staff
Average monthly number of full time equivalent persons employed during the year		 2026
No.
33
40
£
1,589,334
196,819
243,903
-
2,030,056		 2025
No.
32
39
£
1,458,917
155,778
278,339
340
1,893,374

25

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

7.
GAIN ON SALE OF HOUSING STOCK
Sales proceeds
Cost of sales
Gain on sale of housing stock		 2026
2025
£
£
241,000
168,500
12,931
51,968
228,069
116,532
8.
INTEREST PAYABLE AND SIMILAR CHARGES
On bank loans and overdrafts 2026
2025
£
£
1,094,213
1,011,489
9.
SURPLUS FOR THE YEAR
Surplus For The Year is stated after charging/(crediting):
Depreciation - non-current assets
Auditors' remuneration - audit services
Gain on sale of other non-current assets		 2026
2025
£
£
2,560,255
2,527,191
13,447
11,682
(228,069)
(116,532)

10. CORPORATION TAX

The Association is a Registered Scottish Charity and is not liable to United Kingdom Corporation Tax on its charitable activities.

11. OTHER FINANCE INCOME / (CHARGES)

Net interest on pension obligations

2026 2025
£ £
8,301 168,619

26

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

12. NON-CURRENT ASSETS

Housing
Housing
Properties
Properties
Held
In course of
for Letting
Construction
Total
£
£
£
(a)Housing
Properties		 Housing
Housing
Properties
Properties
Held
In course of
for Letting
Construction
Total
£
£
£
(a)Housing
Properties
COST
At 1 April 2025
85,583,102
Additions
4,997,806
Disposals
(1,135,277)
Transfers
2,408,749
At 31 March 2026
91,854,380
DEPRECIATION
At 1 April 2025
30,430,576
Charge for Year
2,527,180
Transfers
-
Disposals
(846,923)
At 31 March 2026
32,110,833
NET BOOK VALUE
At 31 March 2026
59,743,547
At 31 March 2025
55,152,526
Component
Improvement/
£
£
2,862,764
75,429
-
2,807,901
Expenditure on Existing Properties
Amounts capitalised
Amounts charged to the statement of
comprehensive income
2026		 2,426,393
88,009,495
2,809,807
7,807,613
-
(1,135,277)
(2,408,749)
-
2,827,451
94,681,831
-
30,430,576
-
2,527,180
-
-
-
(846,923)
-
32,110,833
2,827,451
62,570,998
2,426,393
57,578,919
Component
Improvement/
£
£
2,268,184
99,120
-
2,605,434
2025

All land and housing properties are heritable.

The Association's lenders have standard securities over housing property with a carry value of £38,668,127 (2025 - £38,625,104).

The depreciation charge on housing properties as shown above differs from that per Note 3 due to accelerated depreciation on component replacements.

27

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

12. NON CURRENT ASSETS (continued)

Office Furniture Machinery & Computer
(b)Other tangible assets Premises & Equipment Equipment Equipment Total
£ £ £ £ £
COST
At 1 April 2025 380,133 79,841 45,294 114,537 619,805
Additions - 7,269 - 5,860 13,129
Eliminated on disposals - (7,499) - (20,959) ( 28,458)
At 31 March 2026 380,133 79,611 45,294 99,438 604,476
DEPRECIATION
At 1 April 2025 345,864 74,021 25,726 83,704 529,315
Charge for year 11,946 533 4,235 16,361 33,075
Eliminated on disposals - (7,499) - (20,959) ( 28,458)
At 31 March 2026 357,810 67,055 29,961 79,106 533,932
NET BOOK VALUE
At 31 March 2026 22,323 12,556 15,333 20,332 70,544
At 31 March 2025 34,269 5,820 19,568 30,833 90,490

13. RECEIVABLES

2026 2025
£ £
Gross arrears of rent and service charges 247,819 238,750
Less:Provision for doubtful debts (85,851) (87,487)
Net arrears of rent and service charges 161,968 151,263
Social housing grant receivable 90,000 -
Other receivables 512,466 369,200
764,434 520,463

14. CASH AND CASH EQUIVALENTS

2026 2025
£ £
Cash at bank and in hand 1,513,800 2,642,360
1,513,800 2,642,360

28

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

15. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026 2025
£ £
Bank loans 5,817,142 581,684
Trade payables 208,089 173,269
Rent received in advance 331,410 324,472
Other taxation and social security 46,401 38,189
Other payables 246,305 237,271
Accruals and deferred income 657,883 562,768
7,307,230 1,917,653

At the statement of financial position date there were pensions outstanding of £35,950 (2025 - £33,481).

16. PAYABLES: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026
2025
£
£
Bank loans
14,732,805
19,531,175
14,732,805
19,531,175		 2026
2025
£
£
Bank loans
14,732,805
19,531,175
14,732,805
19,531,175
17. DEBT ANALYSIS - BORROWINGS
2026
2025
£
£
Bank Loans
Amounts due within one year
5,817,142
581,684
Amounts due in one year or more but less than two years
4,655,581
5,817,142
Amounts due in two years or more but less than five years
2,211,679
5,085,955
Amounts due in more than five years
7,865,545
8,628,078
20,549,947
20,112,859

The Association has a number of bank loans the principal terms of which are as follows:

Number of Effective
Properties Interest Maturity Variable or
Lender Secured Rate (Year) Fixed
Royal Bank of Scotland 1,519 6.25% 2037 Fixed
Royal Bank of Scotland - 5.6% 2039 Fixed
Royal Bank of Scotland - 3.03% 2026 Fixed
Royal Bank of Scotland - 6.5% 2028 Variable
CAF Bank 109 6.25% 2042 Fixed / Variable
CAF Bank - 6.25% 2043 Fixed / Variable

All the Association's bank borrowings are repayable on a monthly or quarterly basis with the principal being amortised over the term of the loans.

In accordance with FRS 102 the Association's bank borrowings are valued at amortised cost using the effective interest rate method.

2026 2025
£ £
Due to lenders at 31 March 2026 20,702,705 20,284,389
Effective interest rate adjustment (152,758) (171,530)
20,549,947 20,112,859

29

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

18. RETIREMENT BENEFIT OBLIGATIONS

The pension cost figures used in these accounts comply with the Financial Reporting Standard 102 (FRS 102).

The Association is an admitted body to the Tayside Pension Fund, a fund administered by Dundee City Council. The fund is a funded defined benefit pension scheme providing benefits based on the final pensionable salary to 31 March 2015, thereafter benefits are based on career average basis. Contributions to the fund are determind by the scheme's actuary using the projected unit method and are charged to the Statement of Comprehensive Income as they are incurred. The pension costs for the period were £290,334 (2025 - £272,746). The pension fund is now closed to new members effecive from 1 November 2021.

The table below compares the present value of the scheme's liabilities, based on the Actuary's assumptions with the estimated employer assets.

Net pension liability as at:
Estimated employer assets (A)
Present value of scheme liabillities
Total value of liabilities (B)
Impact of asset ceiling
Net pension assets/(liabilites) (A-B)		 2026
£
15,072,157
8,736,665
8,736,665
6,335,492
-		 2025
£
13,533,681
8,831,395
8,831,395
4,702,286
-

The movement in the defined benefit obligation over the year is as follows:

Opening defined benefit obligation
Current service cost
Interest costs
Change in financial assumptions
Change in demographic assumptions
Experience loss/(gain) on defined benefit obligation
Estimated benefits paid net of transfers In
Contributions by scheme participants
Closing defined benefit obligation		 2026
£
8,831,395
201,273
497,881
(384,737)
63,762
28,628
(598,522)
96,985
8,736,665		 2025
£
9,780,372
260,405
467,565
(1,345,047)
(27,690)
(21,157)
(367,699)
84,646
8,831,395

The movement in the fair value of fund assets in the year is as follows:

Opening fair value of funds
Interest on assets
Return on assets less interest
Administration expenses
Contributions by employer including unfunded
Contributions by fund participants
Estimated benefits paid plus unfunded net of transfers in
Closing fair value of fund assets		 2026
£
13,533,681
778,915
975,809
(5,045)
290,334
96,985
(598,522)
15,072,157		 2025
£
13,122,298
636,184
(210,443)
(4,051)
272,746
84,646
(367,699)
13,533,681

30

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

18. RETIREMENT BENEFIT OBLIGATIONS (continued)

The amounts recognised in the Statement of Comprehensive Income are as follows:

Analysis of amount recognised in the Statement of
Comprehensive Income
Service cost
Net interest on the defined liability (asset)
Administration expenses
Total loss (profit)
The aggregate assets of the defined pension scheme are comprised as follows:
Equities
Gilts
Bonds
Property
Cash
Alternatives
Total		 2026
£
201,273
(8,301)
5,045
198,017
Value at
31 March
2026
£
11,301,655
913,108
932,852
1,508,107
407,416
9,019
15,072,157		 2025
£
260,405
(168,619)
4,051
95,837
Value at
31 March
2025
£
8,988,592
863,209
891,176
2,053,545
733,578
3,581
13,533,681

The total return on the fund assets for the year to 31 March 2026 was £1,754,724 (2025 - £425,741).

The principal acturial assumptions used in valuing the defined benefit pension scheme were as follows:

Discount Rate
Pension increases
RPI increases
Salary increases
The net asset/(defined liability) recognised in other comprehensive income:
Experience gain on defined benefit obligation
Reduction of pension asset
Return on fund asset in excess of interest
Change in demographic assumptions
Changes in financial assumptions
Re-measurement of the net assets		 2026
2025
2024
6.1%
5.8%
4.9%
2.9%
2.9%
2.9%
3.3%
3.2%
3.3%
3.9%
3.9%
3.9%		 2026
2025
2024
6.1%
5.8%
4.9%
2.9%
2.9%
2.9%
3.3%
3.2%
3.3%
3.9%
3.9%
3.9%
2026
975,809
(63,762)
(28,628)
384,737
(1,360,473)
(92,317)		 2025
(210,443)
27,690
21,157
1,345,047
(1,360,360)
(176,909)

Mortality Rates

Life expectancy is based on the S3PA_H tables with a mulitipier of 105%/115%. These base tables are then projected using the CMI_2025 Model, allowing for the long-term rate of improvement of 1.25% p.a. Based on these assumptions, the average future life expectancies at age 65 are summarised below:

Males Females
(Years) (Years)
Retiring today 19.4 21.9
Retiring in 20 years 20.7 23.4

31

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

19. DEFERRED INCOME

Social Other
Housing Housing
Grants Grants Total
£ £ £
Capital grants received
At 1 April 2025 24,489,849 94,226 24,584,075
Additions in the year 2,165,636 - 2,165,636
At 31 March 2026 26,655,485 94,226 26,749,711
Amortisation
At 1 April 2025 5,467,046 94,226 5,561,272
Amortisation in year 502,739 - 502,739
At 31 March 2026 5,969,785 94,226 6,064,011
Net book value
At 31 March 2026 20,685,700 - 20,685,700
At 31 March 2025 19,022,803 - 19,022,803

This is expected to be released to the Statement of Comprehensive Income in the following years:

2026 2025
£ £
Amounts due within one year 502,739 457,381
Amounts due in more than one year 20,182,961 18,565,422
20,685,700 19,022,803
20. SHARE CAPITAL
Shares of £1 each, issued and fully paid
At 1 April
Issued in year
Cancelled in year
At 31 March		 2026
£
93
8
(25)
76		 2025
£
100
3
(10)
93

Each member of the Association holds one share of £1 in the Association. These shares carry no rights to dividend 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 the Association. Each member has a right to vote at members' meetings.

32

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

21. CASH FLOWS

Reconciliation of net cash flow to 2026 2025
£ £ £ £
(Decrease) / increase in cash (1,128,560) 477,114
Cashflow from change in net debt (437,088) (447,159)
Movement in net debt during the year (1,565,648) 29,955
Net debt at 1 April (17,470,499) (17,500,454)
Net debt at 31 March (19,036,147) (17,470,499)
At Other At
Analysis of changes in net debt 01-Apr-25 Cashflows Changes 31-Mar-26
£ £ £ £
Cash and cash equivalents 2,642,360 (1,128,560) - 1,513,800
2,642,360 (1,128,560) - 1,513,800
Debt: Due within one year (581,684) (437,088) (4,798,370) (5,817,142)
Due after more than one year (19,531,175) - 4,798,370 (14,732,805)
Net debt (17,470,499) (1,565,648) - (19,036,147)

22. CAPITAL COMMITMENTS

2026 2025
£ £
Capital Expenditure that has been contracted for but has not been provided
for in the finanical statements 1,410,499 1,169,699

The above commitments will be financed by a mixture of public grant, private finance and the Association's own resources.

23. DETAILS OF ASSOCIATION

The Association is a Registered Society registered with the Financial Conduct Authority and is domiciled in Scotland.

The Association's principal place of business is 147 Fintry Drive, Dundee, DD4 9HE.

The Association is a Registered Social Landlord and Scottish Charity that owns and manages social housing property in Dundee.

24. BOARD MEMBER EMOLUMENTS

Board members received £486 (2025 - £23) in the year by way of reimbursement of expenses. No remuneration is paid to members in respect of their duties to the Association.

33

ABERTAY HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)

25. HOUSING STOCK

The number of units of accommodation in management
at the year end was:-
General needs
Community projects block
Retirement housing		 2026
No.
1,663
6
237
1,906		 2025
No.
1,633
6
238
1,877

26. RELATED PARTY TRANSACTIONS

Members of the Board are related parties of the Association as defined by Financial Reporting Standard 102.

Any transactions between the Association and any entity with which a Board member has a connection with is made at arm’s length and is under normal commercial terms.

Transactions with Board members (and their close family) were as follows:

Members of the Board who were tenants during the year
Rent received from tenants on the Board and their close family members
Factoring charges received from factored owners on the Board and their close
family members
Members of the Board who were owner occupiers during the year		 2026
2025
£
£
6,129
17,046
-
480
1
1
1
2

34