OpenCharities

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

2025-03-31-accounts

REGISTERED COMPANY NUMBER: SC280302 REGISTERED CHARITY NUMBER: SC036545

SPRUCE CARPETS LTD.

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1

SPRUCE CARPETS LTD.

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page Page
Reference and Administrative Details 3
Report of the Trustees 4 to 9 to 9
Report of the Independent Auditors 9 12
to		 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 22 22
Detailed Statement of Financial Activities 23 to 24 23 to 24 23 to 24

2

SPRUCE CARPETS LTD.

REFERENCE AND ADMINSTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number SC280302

Registered Charity number

SC036545

Registered office

30, Woodhead Road Nitshill Glasgow G53 7WA

Trustees

J D Molyneux Ms C A Garmory K Laing Ms C Jandt A. Hardie

Senior Statutory Auditor

Sandy Fyfe

Auditors

Morris & Young Chartered Accountants 6 Atholl Crescent Perth PH1 5JN

Solicitors

Gillespie MacAndrew 5 Atholl Crescent Edinburgh EH3 8EJ

Bank

Unity Trust Bank Plc 4 Brindley Place Birmingham B1 2JB

3

SPRUCE CARPETS LTD.

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of Spruce are:

Strategies for Achieving our Objectives

Spruce Carpets relies on flooring donations from a range of commercial donors, including carpet and vinyl manufacturers, wholesalers, and retailers. All donations to Spruce are post manufacture end of line/roll new materials which our donors have opted to dispose of via Spruce's reuse provision rather than the conventional landfill disposal option. Spruce in-turn retail the donated floor coverings at affordable prices to assist individuals and families on low incomes.

In addition, we also divert carpet tiles from landfill by uplifting (for a range of construction sector customers), refurbishing and selling these to customers looking for re-useable floor coverings. The process of carpet-tile reclamation involves our early involvement with contractors and subcontractors on-site to agree uplifts at the earliest possible stage to ensure the best possible chance of obtaining the best quality of materials for reuse. All donated materials are then sorted, and quality graded at our warehouse prior to being sold-on to new customers.

Our work is carried out by employing staff and engaging volunteers to undertake the work as part of a training programme, providing a positive working environment and assisting volunteers to move into permanent employment, education, or further volunteering. Spruce Carpets provides volunteer and training placements for a variety of people with different needs and barriers that combine to make the journey into work more difficult.

Our primary customers for both re-use and new floor coverings include domestic consumers, housing associations, voluntary sector organisations and commercial businesses - including construction sector businesses undertaking a range of office refurbishment projects.

4

SPRUCE CARPETS LTD.

REPORT OF THE TRUSTEES CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

ACHIEVEMENT AND PERFORMANCE

During 24-25 Spruce diverted a total of 103 tonnes of domestic grade reusable flooring cover from its landfill destination. This material was donated from a wide range of flooring distributors and manufacturers across Scotland, a number with whom we have worked with for many years. The flooring we receive at our warehouse in Southwest Glasgow is processed, cut re-rolled and stored for use.

Our flooring donations are provided mainly to low-income households at a peppercorn corn costs, on many occasions this will be free.

In tandem with our reuse activities, we also operate more commercial flooring activities to support the costs associated with the reuse activity. We work with a number of Housing Associations and Local Authorities, all of whom understand that our commercial activities exist to support the charitable aims of Spruce Carpets Limited.

The focus for us this year has been to work through the post-merger merger process for integrating the Second Opportunities Company’s into the Spruce model. This has presented a wide range of challenges for all concerned throughout the year. However, we have

Strategic Development and Future Plans

During November 2024 our strategic dialogue between board and management produced a strategic framework along with seven strategic goals which we would pursue and develop over the next five-years and against which we would plot our success or failure. The strategic framework is reproduced in table 1 below and the Goals and Objectives are shown along with a current update as of March 2025 in table 2 below.

Table1: Strategic Framework

5

Table 2: Strategic Goals and Objectives

Strategic
Objective		 Outcome Methodology Actions STATUS
1. Grow Our
Environmental
and Social
Impact		 1.1 Collaboration, Merger, or
Joint Venture		 Establish, via Collaboration, merger or Joint Venture, Spruce Enterprise
activity in at least one location outside Glasgow within the next 18-months.		 Potential to develop strong collaborative venture with Castle Furniture over the next 12-18
months.
Furtherpotential,although at veryearlystage to include one other Fife-based organisation.
1.2 Community Foundation. Establish the Spruce Enterprises Social Foundation within 18-months. No progress.
2. Expand Outreach
and Accessibility		 2.1 Increase Access We want to increase the number of low-income families and individuals
accessing household goods by 20% annually.		 This outcome needs some work to better define what we mean.
2.2 Partnerships We will establish further partnerships with local councils and community
organisations to identify and reach more low-income individuals and
households.		 •
Pilot programme with Fife Council over Oct 25 through Mar 26 will allow us to work
with 250-350 households.
•
Additional contract work secured with SSHA, Queens Cross and West
Dunbartonshire Council.
•
Kick-off discussions tookplace in earlyFebruarywith Blue Triangle Housing.
3. Enhance
Sustainability
Practices		 3.1 Diversion Rates We will increase our current rates of diversion by increasing the volume of
reused flooring and white goods donated or collected by 25% each year.		 •
Proposed stage 2 merger structure will place a greater emphasis on reuse
activities for both flooring & white goods.
•
Likely that white goods tonnage will drop over the next year unless we secure
additional customers in the form of HA/LA’s.
•
Flooring donations are in the pipeline with a large donation received during early
February.
3.2 Carbon Footprint We will establish the individual and collective carbon footprint for operating
companies by the end of 2024 and put in-place a carbon reduction plan
covering each company during 25/26.		 Baseline footprint for Nitshill site has been worked out at (79_tCOe_) using the data x Emission
Factor. We have only applied Scope 1 and 2 emissions at present and are working on scope 3
utilising the Greenhouse Gas Emissions Protocol guidance – its likely that scope 3 will increase
our tonnage significantly.
4. Strengthen
Financial Stability		 4.1 Revenue Growth We will grow annual revenue by at least 10% per annum over the next three
years.		 Over the next three years this based on the 25/26 budget represents an increase of 26/27 -
£4.3m, 27/28 - £4.7m and 28/29 - £5.2m, representing £1.3m over three years or an average of
£433k each year.
Our focus is on securing the equivalent of one additional LA customer (s/m) each year for three
years – providing SXL services in addition to growing our waste management services income
by£50kper annum.
4.2 Cost Ratios We will establish baseline cost ratio’s across all operating companies by April
2025 that ensure efficient use of Op-Ex resources.		 With the appointment of our new finance manager, we can now look at making some progress
in the outcome.
4.3 Fundraising Strategy We will within Spruce and Second Opportunities develop a fundraising
strategyfor 2025,including grants,donations,and corporate sponsorships.		 No progress.
4.4 Scotland Excel We will secure our place on new Scotland Excel Framework for Spruce, New
Two,Second Opportunities and Total Homes.		 Completed.
5. Improve
Operational
Efficiency		 5.1 Training Invest in staff training and development. On-going.
5.2 Certification Attain ISO 9001 and 14001 certifications. Completed.
5.3 Culture Build and strengthen organisational culture. Work-in-progress with some wins but still much to do.
5.4 Synergies Identify and build operational synergies. We are starting to see closer cooperation between Companies with lots of resource sharing
allied to better management communication on a day-to-day basis. Still a lot of work to get
people out of their mental silo’s around one organisation working.
6. Employability 6.1 Work Experience and
Volunteering		 Plan and launch a Work Experience and Volunteering Programme. No progress.
7.
~~es~~		 Measure and
Communicate
Impact		 7.1 Metrics Development Develop specific metrics for each operating company. On hold until stage two mergers completed.
7.2 Impact Reports Publish annual impact reports:
~~a~~		 Initial thinking is underway – we will seek some support in terms of determining what we
publish,where and how.
~~es~~ ~~a~~

~~es~~

Risk Management

Spruce operates a dynamic risk register and heatmap which is reviewed quarterly as a standing agenda item at each Board Meeting. Key risks are highlighted and discussed as a matter of course as are new and emerging risks. This process also covers the merged entities of Second Opportunities and its subsidiary companies.

Noted below are the key risks at the time of publication.

6

SPRUCE CARPETS LTD.

REPORT OF THE TRUSTEES CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

ACHIEVEMENT AND PERFORMANCE CONTINUED

FINANCIAL REVIEW

Financial position

Spruce Carpets had total incoming resources of £738,094 in the year to 31 March 2025 (2024 - £836,198), and net outgoings of £845,510 (2024 - £825,737) resulting in net outgoing resources of £107,416 (2024 - £10,461).

The organisation's funds position was £460,324 (2024 - £567,651). £27,214 (2024 - £27,214) related to restricted funds.

Principal risks and uncertainties

Principle risks have been identified by the board and management team). Spruce have initiated a revised process for managing risk which will manage risk associated with performance, funding, restrictions, workforce planning, Health & Safety and General Data Protection Regulation (GDPR). Risks are reviewed quarterly as a standing item within the governance and board agenda.

Salary Levels

Salary levels for key management personnel are agreed by the trustees whose ambition is to attract high calibre staff. Management personnel are paid in line with affordability and market salary levels.

Reserves policy

At 31st March 2025 the total amount of unrestricted funds in our reserves was £433,020 and there were no designated funds. The purpose of the reserves policy is to ensure the stability and ongoing operation of the business and to provide a source of internal funds to support growth and diversification in line with our charitable objectives. Reserves are also held to provide funds for unforeseen property maintenance and future capital expenditure in the way of IT and vehicles to ensure effective operation of the business alongside potential future contractual obligations of the business such as potential redundancy costs.

The board has over the last few years taken the decision to increase the level of reserves within the business to provide stability to the business and allow the board to consider a more ambitious growth strategy funded both internally and externally. The board aims to have reserves to cover costs for between 3 and 6 months and are we currently compliant with that.

7

SPRUCE CARPETS LTD.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Spruce Carpets is a company limited by guarantee, with charitable status. The company is governed by its Articles of Association. A board of 6 trustees oversaw the strategic development and management of the organisation for the financial year 2024-25. Where skills, experience or knowledge gap is identified at board level, the existing trustees will recruit and collectively select suitable candidates based on the skills, experience, and knowledge that a prospective trustee would bring to the organisation. The positions would be advertised externally as well as discussions taking place with the networks of the current board and following full board agreement be invited to serve as a director of Spruce. Currently, there is no fixed term of office for trustees. The Chief Executive oversees the operational aspects of the organisation, and the Board of Trustees hold regular meetings to review all aspects of the operations of the Charity. In addition, the Board of Trustees work alongside the team on activities to provide guidance, direction, and expertise.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Spruce Carpets Ltd. for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Morris & Young, will be proposed for re-appointment at the forthcoming Trustee Meeting.

Approved by order of the Board of Trustees on 23 December 2025 and signed on its behalf by:

........................................................................ Ms Carron A Garmory – Chair of the Trustee Board

8

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPRUCE CARPETS LTD.

Opinion

We have audited the financial statements of Spruce Carpets Ltd. (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flows and notes to the financial statements, 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, comprising Charities SORP (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 trustees' 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors 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.

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.

9

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPRUCE CARPETS LTD.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustee’s Responsibilities [set out on page 3], the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company'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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 aggregate, they could reasonably be expected to influence the economic decision of users taken on the basis of these financial statements.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in

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

10

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPRUCE CARPETS LTD.

As a result of these procedures, we considered the opportunities that may exist within the organization for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included Companies Act 2006 and various charity-specific legislation, including The Charities and Trustee Investment (Scotland) Act 2005.

Our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these March involve collusion, forgery, intentional omissions, misrepresentations, or the override of controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

11

...................................... Alexander Fyfe M.A.A.T., C.A., DChA (Senior Statutory Auditor) For and on behalf of Morris & Young, Statutory Auditor Chartered Accountants 6 Atholl Crescent PERTH PH1 5JN

Date: 23 December 2025

12

SPRUCE CARPETS LTD STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31st March 2025

Notes Unrestricted Restricted 2025 2024
£ £ £ £
Income
Income from:
Dona�ons and Legacies 2 13 13 10,564
Charitable Ac�vi�es 4 720,111 720,111 819,052
Rental Income 11,667 11,667
Investment Income 3 6,303 6,303 6,582
Total Income 738,094 - 738,094 836,198
Expenditure
Direct Charitable Costs 5 845,510 - 845,510 825,737
Total Expenditure 845,510 - 845,510 825,737
NET
INCOME(EXPENDITURE)		 (107,416) - (107,416) 10,461
Net Movement in Funds (107,416) - (107,416) 10,461
Reconcilia�on of Funds
Funds at 31 March 2024 540,437 27,214 567,651 557,190
Funds at 31 March 2025 433,021 27,214 460,235 567,651

The results come from continuing operations.

13

SPRUCE CARPETS LTD BALANCE SHEET As at 31st March 2025

~~a~~ 2025 2024
~~a~~
~~a~~		 Notes £ Notes £ £ £ £
~~a~~
~~a~~		 Unrestricted Restricted Total Total
Fixed Assets
~~a~~
Intangible Assets
~~a~~		 11 4,143 4,143 8,286
Tangible Assets
~~a~~		 11a 21,299 21,299 17,001
~~a~~ 25,442 25,442 25,287
~~a~~
Current Assets
~~a~~
Stocks
~~a~~		 12 9,108 9,108 6,311
Debtors
~~a~~		 13 223,937 27,214 251,151 239,886
Cash at Bank and in
Hand		 288,230 288,230 368,655
~~a~~ 521,275 27,214 548,489 614,852
Creditors:amounts
falling due within one
year		 14 (113,697) (113,697) (72,488)
~~a~~
Net Current Assets
~~a~~		 407,578 27,214 434,792 542,364
~~a~~
~~fotos~~
Total assets less current
~~fotos~~		 433,020 27,214 460,234 567,651
~~fotos~~
~~a~~
Net Assets
~~a~~		 433,020 27,214 460,234 567,651
~~a~~
Reserves
~~a~~		 16
Unrestricted Fund
~~a~~		 433,020 433,020 540,437
Restricted Fund
~~a~~		 27,214 27,214 27,214
~~a~~
Total Funds
~~a~~		 433,020 27,214 460,234 567,651
~~a~~
~~a~~
~~a~~
~~a~~

The notes on pages 15 to 22 form part of these financial statements.

The financial statements on pages 13 to 22 which have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies’ regime were approved by the Board on and signed on its behalf.

Austin Hardie - Trustee

Date: 30[TH] March 2026

Company Number: SC280302

15

SPRUCE CARPETS LTD Statement of Cash Flows For the year ended 31st March 2025

Note 2025 2024
£ £ £ £
Cash used in opera�ng
ac�vites		 1 (76,592) (14,143)
Cash fows from
inves�ng ac�vi�es
Payments for intangible
and fxed asset
purchases
 (10,135) (21,949)
Sale of tangible fxed
assets		 933
Interest received 6,303 6,582
Cash provided by (used
in) inves�ng ac�vi�es
Cash used in fnancing
ac�vi�es
Increase (decrease) in
cash and cash
equivalents in theyear		 (80,424) (28,577)
Cash and cash
equivalents at the
beginningof theyear		 368,655 397,232
Total cash and cash
equivalents at the end
of theyear		 288,231 368,655

16

SPRUCE CARPETS LTD Notes to the Statement of Cash Flows For the year ended 31st March 2025

1. RECONCILIATION OF NET INCOME TO NET
CASH FLOW FROM OPERATING ACTIVITES		 2025 2024
£ £
Net income for the repor�ng period (as per the
Statement of Financial Ac�vi�es)		 (107,416) 10,461
Adjustments for:
Deprecia�on charges 5,837 6,656
Amor�sa�on 4,143 4,143
Interest received (6,303) (6,582)
(Increase)/decrease in stocks (2,797) 7,916
Increase in debtors (11,265) (20,543)
Increase/(decrease)in creditors 41,209 (16,194)
Net cashprovided by/(used in)opera�ons **(76,592) ** (14,143)
2. ANALYSIS OF CHANGES IN NET FUNDS At 1/4/24 Cash Flow At 31/3/25
£ £ £
Net cash
Cash at bank and in hand 368,655 (80,425) 288,230

17

Spruce Carpets Ltd. Notes to the Financial Statements For The Year Ended 31 March 2025

1 . ACCOUNTING POLICIES

been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

and future commitments, the trustees have confirmed that there is a reasonable expectation that the charity can continue in operation existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

The charity considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The trustees consider that there are no such significant judgements.

Information and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The charity does not have any key assumptions concerning the future, or Other key sources of estimation uncertainty in the reporting year that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from government or other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions applying have been met, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources,

Charitable activities

Costs of the charitable activity are incurred on achieving the charity's objectives, including the support costs and costs relating to the governance of the charity apportioned to charity activities.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated to expenditure on charitable activities.

18

Spruce Carpets Ltd. Notes to the Financial Statements For The Year Ended 31 March 2025

1 . ACCOUNTING POLICIES CONTINUED

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and property 5% on cost Plant and machinery 25% on cost Fixtures and fittings - 8.5% on cost Computer equipment - 25 % on cost Motor vehicles - 25% on cost

Tangible fixed assets are included in the balance sheet at cost less accumulated depreciation and impairment losses.

Intangible fixed assets

Amortisation is provided at -33.33 on cost

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value like plant, property and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow-moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Debt instruments like other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

19

Spruce Carpets Ltd. Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

ACCOUNTING POLICIES CONTINUED

Presentation currency, rounding and country of incorporation

The financial statements are presented in pounds sterling (£) which is the functional and presentation currency of the company. Amounts in the financial statements are rounded to the nearest pound, unless otherwise stated.

The company is incorporated and registered in Scotland.

2. DONATIONS AND LEGACIES 2025 2024
Grants 13 10,564
Grants received, included in the above, are as follows:
Glasgow Communi�es Fund
Othergrants 13 10,564
13 10,564
3. INVESTMENT INCOME 2025 2024
Interest receivable 6,303 6,582
4. INCOME FROM CHARITABLE ACTIVITIES
Reuse, Volunteer & Placement Development
Training		 721,361 812,752
5. CHARITABLE ACTIVITIES COSTS Direct Support Totals
Charitable ac�vity 836,820 8,690 845,510
6. SUPPORT COSTS Management Finance Governance
Charitable ac�vity 2,928 2,262 3,500
Support costs, included in the above, are as
follows:
2025 2024
Management
Wages
Management fees 2,928 2,841
2,928 2,841
Finance
Bank charges 2,262 2,279
2,262 2,279
Governance Costs
Auditors’ remunera�on 3,500 6,500
Legal fees
Book-keepingfees
3,500 6,500
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated a�er
charging/(credi�ng)
Auditors’ remunera�on 3,500 6,500
Deprecia�on – owned assets
 5,837 6,656
Loss on disposal of fxed assets 932

20

Spruce Carpets Ltd. Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

8. TRUSTEES’ REMUNERATION AND BENEFITS

One trustee, Austin Hardie, received remuneration during the year in the form of salary amounting to £95,000.

The payment relates to the trustee’s role as Managing Director, a position involving the day-today management of the charity.

The trustees consider that the services provided are essential to the effective operation of the charity and that the level of remuneration is reasonable and in line with market rates for comparable roles.

Trustees’ expenses

There were no trustees’ expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

9. STAFF COSTS 2025 2024
Wages and salaries 289,312 233,380
Social securitycosts 23,212 19,899
Otherpension costs 3,986 3,411
316,510 256,690

The average monthly number of employees during the year was as follows:

Employees 10 11

No employees received emoluments in excess of £60,000 (2024 – none).

10. COMPARATIVES FOR THE STATEMENT OF
FINANCIAL ACTIVITIEs
Unrestricted
Funds		 Restricted
Funds		 Total
Funds
INCOME FROM 2024 2024 2024
Dona�ons and Legacies 10,564 - 10,564
CHARITABLE ACTIVTIES
Charitable ac�vity 819,052 - 819,052
Investment income 6,582 6,582
TOTAL 836,198 - 836,198
EXPENDITURE ON
Direct charitable costs
Charitable ac�vity 825,737 - 825,737
NET INCOME/(EXPENDITURE) 10,461 - 10,461
RECONCILIATION OF FUNDS
Total funds brought forward 529,976 27,214 557,190
TOTAL FUNDS CARRIED FORWARD 540,437 27,214 567,651

21

Spruce Carpets Ltd. Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

11. Intangible Assets

1. Intangible Assets
Cost
As at 1 April 2024
Additions
As at 31 March 2025
Amortisation
As at 1 April 2024
Provided during the period
As at 31 March 2025
Net Book Value
As at 31 March 2025
As at 1 April 2024		 Goodwill
£
12,429
-
12,429
4,143
4,143
8,286
4,143
8,286

11a. Tangible Assets

1a. Tangible Assets
Cost
As at 1 April 2024
Additions
Disposals
As at 31 March 2025
Depreciation
As at 1 April 2024
Provided during the period
Disposals
As at 31 March 2025
Net Book Value
As at 31 March 2025
As at 1 April 2024
Cost
As at 1 April 2024
Additions
Disposals
As at 31 March 2025
Depreciation
As at 1 April 2024		 Land &
Property
Leasehold
£
9,520
8,901
-		 Plant &
Machinery
£

16,293

-

-		 Motor
Vehicles
£

32,062

-

-		 Fixtures &
Fittings
£

-

1,234

-

1,234

-

105

-

105

1,129

-
Total
£

60,348

10,135

-

70,483

43,347
...CONTINUED
18,421
16,293
32,062
476
921
-
16,293

-

-
25,248

4,501

-
1,397
16,293
29,749
17,024
-
2,313
9,044
-
6,814
Computer
Equipment
£
2,473
-
-
2,473
1,330

22

Spruce Carpets Ltd. Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

Provided during the period
Disposals
As at 31 March 2025
Net Book Value
As at 31 March 2025
As at 1 April 2024		 310
-
5,837
1,640
49,184
833
21,299
1,143
17,001

As at 31 March 2024, the company has Motor Vehicles which are fully depreciated. These assets are still in use despite having reached the end of their assumed useful lives. The gross value of fully depreciated assets still in use is £14,058. 12. Stocks

12. Stocks
Stock
13. Debtors
Due within one year
Trade debtors
Amounts owed by participating interests
Other debtors
14. Creditors: Amounts Falling Due Within One Year
Trade creditors
Other creditors
Taxation and social security		 2025
£
9,108
2025
£
165,616
44,153
41,382
251,151
2025
£
83,839
7,046
22,812
113,697		 2024
£
6,311
2024
£
157,556
21,949
60,381
239,886
2024
£
61,332
7,430
3,726
72,488
15. LEASING AGREEMENTS 2025 2024
Minimum lease payments under non-cancellable
opera�ngleases fall due as follows:
Within oneyear - 497
16. MOVEMENTS IN FUNDS At 1/4/24 Movement Transfers At 31/3/25
Unrestricted Funds
Net Current Assets 515,150 (107,572) 407,758
Intangible Assets 8,286 (4,143) 4,143
Fixed Assets 17,001 4,298 21,299
540,437 (107,417) - 433,020
Glasgow Communi�es Fund 27,214 27,214
TOTAL 567,651 (107,417) 460,234

17. Related Party Disclosures

There were no related party transactions for the year ended 31 March 2025 (2024:none).

18. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

23

Spruce Carpets Ltd. Detailed Income and Expenditure Account For The Year Ended 31 March 2025

Expenses
Purchases
Storage expenses
Subcontractor costs
Wages and salaries
Employers NI
Employers pensions - defined contribution schemes
Carriage and freight

Expenses Continued
Wages and salaries
Staff training
Travel and subsistence expenses
Rent
Property management and service charges
Light and heat
Water rates
Cleaning
Hire and leasing of motor vehicles
Vehicle running costs
Computer software, consumables and maintenance
Repairs, renewals and maintenance
Insurance
Printing, postage and stationery
Advertising and marketing costs
Telecommunications
Audit fees
Accountancy fees
Legal fees
Professional fees
Consultancy fees
Management fees
Subscriptions
Bank charges
Bad debts written off
Depreciation
Amortisation
Sundry expenses		 2025
£
£
201,070
-
67,455
289,312
23,212
3,986
21,393
(606,428)

-
3,097
2,283
89,680
657
30,236
4,541
937
508
19,201
546
14,788
14,651
2,861
1,600
2,763
6,554
-
-
8,696
9,060
2,928
6,716
2,262
-
5,836
4,143
3,491
(239,082 )		 2024
£
£
364,257
28,175
2,791
233,380
19,899
3,411
20,390

(672,303)
-
57
2,759
48,533
320
(5,050)
3,555
1,469
472
14,781
48
8,851
814
1,455
1,989
6,500
-
-
5,757
24,767
2,841
10,406
2,279
3,663
6,656
4,143
5,437

(152,502 )
...CONTINUED

24

Spruce Carpets Ltd. Detailed Income and Expenditure Account (continued) For The Year Ended 31 March 2025

Other Operating Income
Grants and subsidies received
Reimbursements of costs
Rental income
Reuse, Volunteer & Placement Development Training
OPERATING SURPLUS
Deficit on disposal of tangible fixed assets
Other interest receivable and similar income
Bank interest receivable
SURPLUS FOR THE FINANCIAL YEAR		 13
11,667
720,111


731,791		 10,564
6,300
812,752


829,616
-

(932)
(113,719)

-

6,303		 4,811

(932)

6,582
6,303
6,582

(107,416) 10,461

25