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← Glencraft (Aberdeen) Limited

2025-06-30-accounts

Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by quarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

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Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

CONTENTS

Page
Reference and administrative details ofthe charity, itsTrustees 7 1 :
and advisors
Trustees’ Report 2-6
Trustees’ Responsibilities Statement 7
Independent Auditor’s Report on'the Financial Statements 8-11
Statement of Financial Activities 12
Balance sheet 13
Statement of Cash Flows 14
NotestotheFinancialStatements 15-27

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2025

Trustees J Smith Chairman
L Stott (resigned 3 April 2025)
; A Clow
K Robertson -
N Skene
S Mearns (appointed 1 September 2025)
J Scott (appointed 1 September 2025)
Company Registered Number $C372729
Charity Registered Number $C041352
Registered Office 28 Albyn Place
Aberdeen
AB10 1YL
Company Secretary Stronachs Secretaries Limited
Independent Auditor Hall Morrice LLP
7 Queens Terrace
Aberdeen
AB10 1XL
Bankers Bank of Scotland
39 Albyn Place
Aberdeen
AB10 1YN
Solicitors Stronachs
28 Albyn Place
Aberdeen
AB101YL

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

The trustees, who are also the directors of the charitable company for the purposes of company law, present their report with the financial statements of the charity for the period ended 30 June 2025. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable company’s Memorandum and Articles of Association, the Companies Act 2006, and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”. The financial statements have also been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities and Trustee Investment (Scotland) Act 2005.

Chair’s Report

Glencraft again delivered its objective of providing employment and development for people with visual impairments and other disadvantaged circumstances that mean they might be excluded from the workplace. This core supported group contributed 66% of the total hours worked in the year.

The year was positive and progressive. Despite a backdrop of internal change, supply chain challenges and wider market and political uncertainty, we delivered a strong sales performance, of £1.38 million, a 39% increase on last year.

Operationally, we made significant gains. Mattress output rose from 1,546 to 2,656 units (72% increase). These results were driven by improved daily planning, tighter supply chain coordination, and a more settled operations team. ;

The net was surplus £4,306, with consequent strengthening of our balance sheet. This third consecutive year of surplus is particularly pleasing given the challenges the company has faced before, during and since the pandemic. It is a testament to the hard work of Donald MacKay, Chief Executive, and his whole team.

During the year we adopted a detailed plan, building on steps taken in recent years, to strengthen Glencraft. Actions are underway to protect the base business, grow revenue, improve operations and maintain the skilled workforce. These steps, together with the appointment of Martyn Eden as Operations Manager and new Board members, combine to ensure Glencraft continues to deliver its charitable purpose sustainably year after year.

-Shortly after the end of the year, Helen Middler left Glencraft after a career of almost 40 years. She has been very much part of Glencraft all that time and | wish her well for a long and fulfilling retirement.

Lastly, | thank all staff at Glencraft for their efforts during the year. While we know there will be more challenges ahead, it is important now to recognise the success achieved this year.

Structure, Governance and Management

Governing Document

The organisation is a charitable company, limited by guarantee, incorporated and registered as a charity on 10 February 2010. The charity was established under a Memorandum of Association, which established the powers of the charity, and is governed under its Articles of Association.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Organisation

The directors/trustees who held office in the year are:

J Smith, Chairman

L Stott (resigned 3 April 2025)

A Clow K Robertson N Skene

S Mearns (appointed 1 September 2025) J Scott (appointed 1 September 2025)

The Board meets quarterly.

The Managing Director, supported by the Executive Team, is responsible for the day to day running of the organisation as well as business development and company profile.

Monthly Executive Team meetings take place where all aspects of the running of the organisation are discussed.

Recruitment and Appointment of New Trustees

The directors and chairman review the need for new trustees regularly, based on an agreed view of the ideal composition of the board. Recruitment of trustees is conducted openly, with particular emphasis on encouraging applications from disadvantaged groups. Selections are made based on published criteria.

Leigh Stott resigned as a director in April 2025, after over a decade of service to Glencraft, both on the Board and as.an advisor. Jack Scott and Steven Mearns joined the Board on 1 September 2025.

Induction and Training of Trustees

Induction and training of Trustees is viewed as an ongoing process. New trustees complete a programme of familiarisation with factory operations, Glencraft’s history, business performance and future plans, to ensure they are as informed as they need to be to fulfil their roles and their duties of directors and trustees, exercising independent judgment for the furtherance of Glencraft.

Related Parties

Glencraft benefits from a close working relationship with several businesses in Aberdeen who support our principles and provide certain services pro-bono. We thank them for their ongoing assistance.

Remuneration of Key Management Personnel

The pay levels of key staff are reviewed annually by the chair and approved by the board. Where possible, they are benchmarked against other comparable organisations and sectors.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Objectives and Activities

Glencraft’s Vision and Mission are -

Vision: A society where everyone has the opportunity to develop through purposeful work

Mission: A great night’s sleep. Handcrafting beds and mattresses, to help improve people’s lives.

We improve lives by providing employment and development. We provide a supportive working environment where we work with individuals to increase their confidence and skills, giving employment now and development in the future. We focus on people whose circumstances mean they might be excluded from the workplace. This evolved from our original focus on people with visual impairments who, of course, remain integral to Glencraft. It reflects our view that no one need be “left behind”. This charitable purpose falls under category (N) of the purposes recognised by OSCR, the Scottish Charity Regulator, “the relief of those need”. OSCR’s full description of this is: “This purpose involved helping the people who are in need because they are disadvantaged compared to others. Charities may benefit people affected in this way by providing care, support, practical assistance or accommodation to eliminate or reduce the disadvantage”.

The charity also aims to promote employment of disabled people and promote the benefits that can be gained by an organisation in employing people with disabilities of any kind.

Achievements and Performance

People

The proportion of hours worked by the people Glencraft exists for remained high, at 66% of the total hours worked. For context, the Scottish Government target to be recognised as a Supported Business is for 30% of staff to be classified as Disabled or Disadvantaged: Glencraft surpasses this by a wide margin.

Martyn Eden joined as our new Operations Manager in December 2024, filling the role that had been vacant fora year. Martyn has already had a strong positive impact.

Operations

Mattress production was 2,656 this year, a 72% increase on the low level last year (1,546) and ahead of the prior year (2,192). Luxury mattresses were 28% of the total. Manufacture and sale of divan units were significantly higher (272 vs 168) but the numbers for headboards were lower (14 vs 31). We also made and sold 120 mattress toppers, which are proving popular accessory purchases for our customers.

The production increases were made possible by process and organisational structure improvements that delivered better planning and more consistent daily execution. These improvements are part of the overall steps Glencraft is taking to increase resilience.

We upgraded machinery and secured critical spare parts, reducing downtime. Unfortunately, we also endured protracted unavailability of parts for some of our luxury range. Production would have been higher without this issue, which is now resolved; and we would have been able to meet our customer orders quicker.

Glencraft continued its relationship with King Size Recycling this year as part of our commitment to the circular ; economy. We collect customers’ old mattresses and pass them to King Size Recycling, who deconstruct them and put the materials back into the manufacturing supply chain - much better than landfill or incineration.

As noted last year, we are pleased that negotiations with our landlord, Peter Vardy (Property Management Services) Ltd, concluded in September 2024 with agreement to extend our lease on the property at Whitemyres Avenue for a further five years, from 1 April 2025 to 31 March 2030.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Marketing and Sales

Sales grew 39% (£1,376,165 vs £992,116), continuing the improvement noted in the last quarter of the 202324 year. This is encouraging and the result of improvements in sales process and customer relationships that continue.

The share of sales attributable to our five customer groups is shown in the table. As in previous years, Glencraft has benefited from this breadth of markets.

% of total sales
group last year%
Hospitality 19% (22%)
International 19% (17%)
26% (26%)
[Retail 18%(23%)
18%

Financial Review

Glencraft made a surplus of £4,306 (2024: £41,576) and total income was £1.46 million, up 35% on 2024, with consequent strengthening of our balance sheet. This third consecutive year of surplus is particularly pleasing given the challenges the company has faced before, during and since the pandemic.

Reserves

Reserves are needed to bridge the gap between spending and receiving of income and to cover unplanned repairs and other expenditure. The trustees are pleased with the strengthened reserves position, as the company works towards its goal of having reserves equivalent to three months’ fixed overhead costs.

At 30 June 2025 the company had funds of £105,132 (2024 — £100,826), of which restricted funds were £54,600 (2024 — £59,250) and unrestricted funds £50,532 (2024 — £41,576).

Risks

The main risks identified are business disruption, which may be due to factors such as pandemic or absence of key staff, and financial risk, such as a loss of revenues and difficulties in obtaining materials and their timely delivery. Mitigations are put in place to ensure that all residual risks are tolerable.

Glencraft benefits from DWP funding for some staff, through the TESG (Temporary Employment Support Grant) and AtW+ (Access to Work Pius) schemes. Glencraft is exposed to a change in Government funding.

Looking ahead

The medium-term intent is to make Glencraft sustainable: to have year-on-year financial health while fulfilling Glencraft’s charitable purpose. At the end of 2024 Glencraft adopted a detailed plan for this, with actions underway to protect the base business, grow revenue, improve operations and maintain the skilled workforce.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Disclosure of information to auditor

Each of the persons who are trustees at the time when this Trustees’ report is approved has confirmed that:

Auditor

The auditor, Hall Morrice LLP, was appointed this year and is subject to re-appointment at the Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the members of the board of trustees and signed on their behalf by:

Jonathan. Smit

J Smith (Chair of Trustees)

Date: 03 November 2025

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

STATEMENT OF TRUSTEE’S RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2025

The trustees (who are the directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ report 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. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of it incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GLENCRAFT (ABERDEEN) LIMITED

Opinion

We have audited the financial statements of Glencraft (Aberdeen) Limited (the ‘charitable company’) for the year ended 30 June 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including 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 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 Auditor's 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 are 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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE MEMBERS OF GLENCRAFT (ABERDEEN) LIMITED

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 our 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 trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 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 Trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such interna! 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

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. , .

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.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE MEMBERS OF GLENCRAFT (ABERDEEN) LIMITED

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:

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

.

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

~

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GLENCRAFT (ABERDEEN) LIMITED — (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT (CONTINUED) TO THE MEMBERS OF GLENCRAFT (ABERDEEN) LIMITED

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. This description forms part of our auditor's report.

Use of our report

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

Derek Peri

.

Derek Petrie MA (Hons) CA Senior Statutory Auditor For and on behalf of Hall Morrice LLP Statutory Auditor Aberdeen, 03 November 2025

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2025

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2025 2025 2025 2024
Notes £ £ £ £
: ,
Income and endowments from:
Donations and legacies 4 22,203 - 22,203 120,806
Charitable activities 5 1,460,990 - 1,460,990 1;079,544
Investment income 1,144 - 1,144 1,638
Total income 1,484,337 - 1,484,337 1,201,988
Expenditure on:
Charitable activities 6 1,480,031 - 1,480,031 1,158,442
Total expenditure 1,480,031 - 1,480,031 1,158,442
Net movement in funds 4,306 - 4,306 43,546
Transfers between funds 4,650 (4,650) - -
Net movement in funds ; 8,956 (4,650) 4,306 43,546
Reconciliation of funds: .
Total funds brought forward 41,576 59,250 100,826 57,280
Totalfundscarriedforward 50,532 54,600 105,132 100,826

The notes on pages 15 to 27 form part of these financial statements.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

BALANCE SHEET AS AT 30 JUNE 2025

:

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 11 35,901 74,282
Current assets
Stocks 12 274,999 308,639
Debtors 13 120,009 233,236
Cash at bank and in hand 304,443 82,227
699,451 624,102
Creditors: amounts falling due within
one year 14 (330,220) (271,187)
Net current assets 369,231 352,915
Total assets less current liabilities 405,132 427,197
Creditors: amounts falling due after
more than one year 15 (300,000) (326,371)
Total net assets 105,132 100,826
Income funds
Restricted funds 16 54,600 59,250
Unrestricted funds 16 50,532 41,576
105,132 100,826

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:

Jonathan Smith

)

J Smith (Chair of Trustees) Date: 03 November 2025

Company Registration No. SC372729

The notes on pages 15 to 27 form part of these financial statements.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2025

2025 2024
Notes £ £
Cash flows from operating activities
Net cash generated from/(used in) operating activities 18 257,284 (93,477)
Cash flows from investing activities
Purchase oftangible fixed assets (5,364) -
Netcash used in investing activities (5,364) _ :
Cash flows from financing activities
Repayments of borrowings (29,704) (29,704)
,
Net cash used in financing activities (29,704) (29,704)
Change in cash and cash equivalents in the year 222,216 (123,181)
Cash and cash equivalents at the beginning of the year 82,227 205,408
Cashandcashequivalentsattheendoftheyear 19 304,443 82,227

The notes on pages 15 to 27 form part of these financial statements.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

1 General Information

Glencraft (Aberdeen) Limited is a charitable company limited by guarantee incorporated in Scotland. The registered office is 28 Albyn Place, Aberdeen, AB10 1YL.

2 Accounting policies

2.1. Basis of preparation of financial statements

The financial statements 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 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charitable company meets the definition of a public benefit under FRS102. Assets and liabilities are initially recognised at historical cost or transaction valued unless otherwise stated in the relevant accounting policy. .

The accounts are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest pound.

2.2. Going concern The financial statements have been prepared on an ongoing concern basis, which assumes that the charity has sufficient resources to operate and to meet its liabilities as they fall due for a period of at least 12 months from approving the financial statements.

The trustees regularly review business performance against plans, monitoring cashflow and other key metrics such as sales and production performance.

Following this exercise and on the basis that the projections set out can be achieved, the trustees believe it is appropriate to prepare the financial statements on a going concern basis.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

2 Accounting policies (continued)

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of a benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the Statement of financial activities on a receivabie basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charity’s accounting policies.

;

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Expenditure is recognised once there is .a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of | each activity are made up of the total direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between activities on a basis consistent with the use of resources. , Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. :

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

2 Accounting policies (continued)

2.5 Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a chartable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. There is no minimum level below which assets are not capitalised.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold property - 10% straight line Plant and machinery - 20% straight line Fixtures and fittings - 20% straight line Computer equipment - 20% straight line

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.

2.7. Stocks and work in progress Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. ,

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

  1. Accounting policies (continued)

  2. 2.10 Liabilities and provision

  3. Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has been received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Operating leases Rentals paid under operating leases are charged to the Statement of financial activities on a straight | line basis over the lease term. 2.13 Pensions The charity operates a defined contribution pension scheme and the pension charge represents the | amounts payable by the charity to the fund in respect of the year.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

  1. Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The trustees do not consider there to be any areas of judgement that have a significant risk causing a material adjustment in subsequent financial years.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

4. Income from donations and legacies

Unrestricted
Funds		 Restricted
Funds		 Total Total
General 2025 2025 2025 2024
£ £ £ £
Donations 22,203 - 22,203 25,806
Grants : - : 95,000
22,203 - 22,203 120,806
Total 2024 120,806 - 120,806
Donations in kind of £18,000 have been included within Donations (2024: £18,000). These represent
donatedservicesfromothercompanies. .

5. Income from charitable activities

Restricted
Unrestricted Funds Total Total —
Funds 2025 2025 2025 2024
£ £ £ £
Sale of beds and other goods 1,376,165 - 1,376,165 992,116
Workstep 84,825 - 84,825 87,428
~___ 1,460,990 - 1,460,990 1,079,544
Total 2024 1,079,544 - 1,079,544
Analysis of expenditure on charitable activities
—
Unrestricted
Funds		 Restricted
Funds		 Total Total
2025 2025 2025 2024
£ £ £ £
Sale of beds and other goods - 1,480,031 - 1,480,031 1,158,442
Total2024 1,158,442 - 1,158,442

6. Analysis of expenditure on charitable activities

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

7. Analysis of expenditure by activities

Activities
undertaken		 Support
costs		 Total
funds		 Total
funds
, directly 2025 2025 2025 2024
£ £ £ £ .
Sale of beds and other goods 928,879 551,152. 1,480,031 1,158,442
Total 2024 668,356 490,086 1,158,442
Analysis of direct costs
Total Total
funds funds
2025 2024
£ £
Staff costs 365,516 332,024
Direct material 436,560 217,567
Carriage 80,550 60,115
Transport costs 2,629 2,116
Repairs and maintenance 11,608 6,823
Cleaning (383) 1,259
Advertising and marketing 32,399 57,213
Sales commission - 1,239
928,879 668,356
Analysis of support costs
Staff costs 188,349 176,314
Depreciation 43,745 52,302
Heat and light 25,191 12,688
Water rates 9,858 8,923
Training and recruitment 320 3,485
Travel and subsistence 2,028 887
Postage and stationery 2,561 2,276 )
Telephone 1,835 2,105
Subscriptions 2,176 2,480
Sundry expenses 8,009 1,074
Insurance 15,935 13,555
Computer costs 9,602 9,108
Legal and professional fees 19,638 25,635
Rent 173,250 126,000
Bank charges and interest payable 13,766 15,193
Staff welfare 4,224 6,861
Gain on sale of fixed assets - -
Donated services . 18,000 18,000
Governance costs 12,665 13,200
551,152 490,086

Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

  1. Auditor’s remuneration
2025 2024
£ £
Fees payable to the charity’s auditor for the audit of the charity’s
annual accounts 12,600 12,000
9. Staff costs
2025 2024
£ £
Wages and salaries 486,324 453,802
Social security costs 36,066 28,460
Contribution to defined contribution pension scheme 31,475 26,076
553,865 508,338

The average number of persons employed by the charity during the year was as follows:

2025 2024
Number Number
Employees 24 24
Thenumberofemployeeswhoseannualremunerationwas£60,000ormorewere:
2025 2024
Number Number
£70,001 - £80,000 1 1

The key management personnel of the charity are defined as the Chief Executive. The remuneration of key management personnel in the year amounted to £72,305.

  1. Trustees’ remuneration and expenses

None of the trustees received any remuneration during the year (2024 - £nil).

There were no trustees expenses paid during the year (2024 - fnil).

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Docusign Envelope !D: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

11. Tangible fixed assets

Long-term Fixtures
leasehold
property		 Plant &
machinery		 &
fittings		 Computer
equipment		 Motor
vehicles		 Total
£ £ £ £ £ £
Cost .
At 1 July 2024 356,601 97,545 29,403 25,316 13,995 522,860
Additions - 4,650 - 714 - 5,364
At 30June 2025 356,601 102,195 29,403 26,030 13,995 528,224
Depreciation
At 1 July 2024 329,733 63,670 28,879 23,733 2,563 448,578
Charge for the year 26,868 12,580 180 1,256 2,861 43,745
At 30 June 2025 356,601 76,250 29,059 24,989 5,424 492,323
Net book value
At 30 June 2025 - 25,945 344 1,041 8,571 35,901
At 30 June 2024 26,868 33,875 524 1,583 11,432 74,282
12. Stocks
2025 2024
£ £
Raw materials and consumables 99,223 106,390
Work in progress 32,586 89,597
Finished goods and goods for resale 143,190 112,652
274,999 308,639
13. Debtors
2025 2024
Amounts falling due within one year £ £
Trade debtors 67,975 92,302
Other debtors 12,196 102,452
Prepayments and accrued income 39,838 38,482
120,009 233,236

All debtors are attributable to unrestricted funds.

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Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-EG809AD66E6A

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

14. Creditors: Amounts falling due within one year

2025 2024
£ £
Bank loans 9,167 10,000
Other loans 12,500 15,000 :
Trade creditors 69,827 109,718
Othertaxation taxation and social security ° 51,518 15,857
Other creditors 187,208 120,612
330,220 271,187

All creditors relate to unrestricted funds.

  1. Creditors: Amounts falling due after more than one year
Creditors: Amounts falling due after more than one year
2025 2024
£ £
Bank loans - 9,167
Other loans 300,000 312,500
Other creditors - 4,704
300,000 326,371
Included within the above are amounts falling due as follows:
2025 2024
£ £
Between one and two years
Bank loans - 9,167
Other loans - 12,500
Between twoand five years
Other loans 242,107 166,912
Over five years
Otherloans a 57,893 133,088

A Social Investment Scotland (SIS) loan of £12,500 (2024: £27,500) was outstanding at the year end. This loan is interest free and is repayable by monthly instalments of £1,250 commencing in May 2022.

A further SIS loan of £300,000 (2024: £300,000) was outstanding at the year end. The loan is repayable in monthly instalments commencing in March 2027 with the final instalment falling due in March 2031. Interest is charged at 3%.

A Bank of Scotland Ple bounce back loan of £9,167 (2024: £19,167) was also outstanding at the year end. Repayments fall in equal monthly instalments ending in June 2026. Interest is charged at 2.5%.

All creditors relate to unrestricted funds.

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Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee) ~ NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |,| |Statement|of|funds| |Statement|of|funds — current|year|.| |Balance|at| |Balance|at|30|June| |1|July 2024|Income|Expenditure|Transfer|2025| |£|£|£|£|£| |Unrestricted|funds| |General|Fund|41,576|1,484,337|(1,480,031)|4,650|50,532| |’|Restricted|funds| |Adapt|and|Thrive|57,250|-|-|(4,650)|52,600| |Trusthouse|Charitable|Foundation|2,000|-|-|-|2,000| |59,250|-|:|(4,650)|54,600| |Total|of funds|100,826|1,484,337|(1,480,031)|-|105,132| |Balance|at| |Balance|at|30|June| |1|July 2023|Income|Expenditure|Transfer|2024| |£|£|£|£|£| |Unrestricted|funds| |General|Fund|(1,970)|1,201,988|(1,158,442)|-|41,576| |Restricted|funds| |Adapt|and|Thrive|57,250|-|-|-|57,250| |Trusthouse|Charitable|Foundation|2,000|-|-|-|2,000| |59,250|-|:|-|59,250| |Total|of funds|57,280|1,201,988|(1,158,442)|-|100,826|

----- End of picture text -----

16. Statement of funds

Adapt and Thrive — this fund relates to income received to fund capital additions.

Trusthouse Charitable Foundation — This fund relates to income received to be spent on 50% of the capital costs for the purchase of sewing machines.

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Docusign Envelope ID: 942EFBCF-50CC-4 166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

17. Analysis of net assets between funds

Unrestricted Restricted
Funds 2025 Funds 2025 Total 2025
£ £ £
Tangible fixed assets 35,901 - 35,901
Current assets 644,851 54,600 699,451
Creditors due within one year (330,220) - (330,220)
Creditors due in more than one year (300,000) - (300,000)
Total 50,532 54,600 105,132
Unrestricted Restricted
Funds 2024 Funds 2024 Total 2024
£ £ £
Tangible fixed assets 74,282 - 74,282
Current assets 564,852 59,250 624,102
Creditors due within one year (271,187) - (271,187)
Creditors due in more than one year (326,371) : (326,371)
Total 41,576 59,250 100,826
Reconciliation of net movement in funds to net cash flow from operating activities
2025 2024
£ £
Net income for the year (as per Statement of Financial .
Activities) 4,306 43,546
Adjustments for:
Depreciation charges 43,745 52,302
Decrease/{increase) in stocks 33,640 (45,921)
Decrease/{increase) in debtors 113,227 (112,296)
Increase/(decrease) in creditors 62,366 (31,108)
Netcashgeneratedfrom/(usedin)operatingactivities 257,284 (93,477)

18. Reconciliation of net movement in funds to net cash flow from operating activities

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Docusign Envelope ID: 942EFBCF-50CC-4166-B6D0-E6809AD66E6A

GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

;

19. Analysis of cash and cash equivalents
2025 2024
£ £
Total cash and cash equivalents 304,443 82,227
20. Analysis of changes in net debt
At 1 July 2024 Cash Flows At 30 June 2025
£ £ £
Cash at bank and in hand 82,227 222,216 304,443
Debt due within one year (25,000) - (25,000)
—
Debt due after one year (321,667) 25,000 (296,667)
(264,440) 247,216 (17,224)

21. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity company in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £31,475 (2024 - £26,076). At the year end there is a balance of £3,147 (2024 - £2,457) to be paid into the pension scheme.

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GLENCRAFT (ABERDEEN) LIMITED (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

|

22. Operating lease commitments

At 30 June 2025 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2025 2024
£ £
Not laterthan one year 180,000 135,000
Laterthan one yearand not later than five years 675,000 -
855,000 135,000

23. Members liability

The charity is a company limited by guarantee. Members’ liability on a winding up is £1.

24. Related party transactions

During the year sales of a value of £nil (2024 - £nil) were made to trustees.

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