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2025-05-31-accounts

SOUTH ISLAY DEVELOPMENT

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

Company Registration No. SC400320 (Scotland) Charity Registration No. SC042384 (Scotland)

SOUTH ISLAY DEVELOPMENT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Gordon Currie
Mrs Jacqueline Thomson
Mr John Findlay
Dr Patrick McGrann
Mr James Porteous
Mr James McFarlane
Mr Ian Faggetter
Mrs Dionne Johnston
Mr Jordan Paisley
Mrs Rosie Gordon
Charity number (Scotland) SC042384
Company number SC400320
Principal address The Ramsay Hall
Port Ellen
Isle of Islay
Argyll
PA42 7BY
Registered office The Ramsay Hall
Port Ellen
Isle of Islay
Argyll
PA42 7BY
Auditor William Duncan + Co (Audit) Ltd
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Bankers Royal Bank of Scotland
Main Street
Bowmore
Isle of Islay
PA43 7JJ
Solicitors Burness Paul LLP
50 Lothian Road
Festival Square
Edinburgh
EH3 9WJ

SOUTH ISLAY DEVELOPMENT

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Group statement of financial activities 10 – 11
Group balance sheet 12
Company balance sheet 13
Group statement of cash flows 14
Company statement of cash flows 15
Notes to the financial statements 16 - 36

SOUTH ISLAY DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

The trustees present their report and financial statements for the year ended 31 May 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)".

Objectives and activities

The charity's objects are:

Public benefit

The trustees have paid due regard to guidance issued by the Office of the Scottish Charity Regulator in deciding what activities the charity should undertake.

Volunteers

The Board of Directors consists solely of volunteers from the local community and supports other organisations to recruit and engage volunteers of all ages and abilities.

Achievements and performance

Significant activities and achievements against objectives

SID is now recognised as an anchor organisation on Islay, reflecting its leadership role within the community.

The membership of the Board of Directors remained unchanged during the year. The Board meets monthly and is responsible for the strategic management and oversight of the charity. We are fortunate to have the continuity of staff who are familiar with the history of Sid and SITCo. They are stalwarts guiding Directors through a demanding agenda which at times is quite complex.

A Project Manager, supported by subgroups of trustees and volunteers, has taken responsibility for oversight of the construction process. A separate subgroup leads on playing field activities, including the organisation of the annual Sports Day.

Community engagement remains a priority for SID. Volunteers continue to come forward to organise activities and functions throughout the year. Attendance remains strong and feedback from the community is consistently positive.

1

SOUTH ISLAY DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Port Ellen Filling Station & Motorhome Service Point

The SID board secured the ownership of this essential local business in 2014 on behalf of the community with funding from Highlands and Islands Enterprise (HIE), Scottish Land Fund and loan contributors. The business was reopened and commenced trading under South Islay Trading Company Ltd (SITCo) in June 2014. SITCo leases the filing station building and forecourt from SID and profits generated from the business are channelled from the trading arm back to the parent Charity to support SID's charitable objectives.

Port Ellen Filling Station continues to trade well. Sales increase during the tourist summer season, and forestry logging activity has also boosted sales significantly in the last year. The charity benefits from continuity of staff, who have enhanced the shop’s product range based on popular requests

The car wash facility remains in high demand and continues to generate increasing income. During the coming period, the cash register system will be upgraded to integrate more effectively with xero accounting software. The filling station shop remains popular and the range of products has continued to expand as the business grows

Motor Home Site

Construction of the motor home site has experienced ongoing issues with surface water drainage, which have affected its operation. The matter is currently under review by the contractor.

The Clerk of Works and contractor continue to address outstanding snagging matters. The laundry and WC/shower block are fully operational.

It has been decided that CampManager software will be implemented to manage bookings through a single system. Initial testing indicates that it is customer-friendly and efficient. The system will also be integrated with Xero accounting software.

The Port Ellen Playing Fields and Community Hub

Since the cutting of the turf in July 2023, this fully funded project has been the primary focus of the SID team and the wider community.

Heavy rainfall during the winter and spring has resulted in significant water logging of the site. As a consequence, progress on the construction of the Community Hub and the repositioning of the children’s play park has been limited, and completion is now approximately one year overdue.

Bruach Architects, SID, Procast, Kilbryde Engineering and David Narro Associates continue to hold monthly site meetings to review progress and plan accordingly.

Ferry disruptions and the lack of accommodation for the workforce have also impacted delivery schedules. As the majority of the workforce are based on mainland Scotland, these factors have contributed to further delays.

Despite these challenges, there has been considerable interest in renting rooms within the Pavilion. Four local businesses have expressed strong interest, which collectively could create eight new jobs and provide a significant income stream for SID. Funding has enabled SID to engage a commercial solicitor to prepare tenancy and lease agreements.

The SID Board, Project Manager and Clerk of Works continue to monitor the situation closely and remain committed to delivering this important community asset for the community.

Ultimately the Port Ellen Playing Field’s development will provide an income to become self-sufficient.

2

SOUTH ISLAY DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Childcare Project

Sonas Childcare, an independent charity for many years, was at risk of closure during the year following the resignation of its Chair and the absence of replacement governance capacity.

Given the clear and evidenced need for early years childcare provision (0–3 years), with associated wraparound care, the decision was taken to bring the group within the governance structure of South Islay Development (SID) as a formal subgroup in the Autumn of 2024. This has ensured continuity of provision while strengthening oversight and organisational resilience.

Funding from the Argyll and Bute Community-Led Local Development (CLLD) Fund has enabled Bruach Architects to advance design and planning work. This has been undertaken in consultation with the Care Inspectorate, with necessary adjustments incorporated to meet regulatory requirements.

Work will continue into the next financial year to review the sustainability and delivery model for the service. This includes a review of the business plan by InspirAlba suggesting that future provision is both viable and aligned with community need.

Financial review

The group had a general surplus before transfers of £1,321,2979 due to the capital funding received for the playing fields project. Funds held at the year-end were £3,560,161 of which £137,139 were general and £3,423,022 were restricted. The current asset position (mainly funds in the bank) has £66,183 in unrestricted funds and £406,449 in restricted funds.

Reserves Policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent for a minimum of 3 months expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. It has to be noted that the availability of external unrestricted funding has diminishing nationally in the last year.

Principle funding sources for the year included: Highland & Islands Enterprise (HIE), Glenmorangie Distillery, The Ardbeg All Islay Fund, Foundation Scotland, The National Lottery, Rural Communities into Action, Rural Tourism Infrastructure Fund, Elixir Distillers, The Scottish Government along with numerous local businesses and individuals in the community.

Investment Policy

The Trustees have considered the most appropriate policy for investing funds and has found that short to medium term investment of funds should be held in a current account.

Major risks

The trustees has assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

3

SOUTH ISLAY DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

The Board has exercised its duty to identify and review risks by completing regular risk assessments relating to the activities of the organisation.

The Development Manager has undertaken training in risk assessments and best practices. SID will advertise to recruit a Graduate Assistant Manager to assist in this process.

SID will continue to outsource a bookkeeper to bring forward regular financial monitoring reports indicating significant income and expenditure monthly. Authorisation of expenditure limits will be reviewed annually commensurate with the needs of the charity.

Plans for future periods

SID will continue the development of the Port Ellen Playing Fields closely with the community to design a plan of phases to take the recreational space forward with the view to sustaining a secure income for the project. The Port Ellen Playing Fields Project Manager and Development Manager will continue to seek funding towards the Playing Fields Development.

The Development Manager will continue to work closely with local and national partners in all aspects of community work. SID will continue to work closely with local businesses and organisations to develop and review the community action plan.

The Development Manager and Trustees will dutifully attempt to seek funding to secure the current staff. This essential to maintain the ample capacity of both SID & SITCo.

The staff and directors of SITCo will continue regular maintenance and servicing of the facilities at The Filling Station to ensure the sustainability of the business for the community.

Structure, governance and management

The charity is a company limited by guarantee and is controlled by its governing document, it's Articles of Association. The Charity was formed 15th June 2011.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr Gordon Currie

Mrs Jacqueline Thomson Mr John Findlay Dr Patrick McGrann Mr James Porteous Mr James McFarlane Mr Ian Faggetter Mrs Dionne Johnston Mr Jordan Paisley Mr Alexander Gillespie (Resigned 5 June 2024) Mrs Rosie Gordon

Recruitment and appointment of trustees

Trustees are elected by the membership at an AGM. At each general meeting all elected directors shall retire from office but remain eligible for reappointment. Additional trustees may by co-opted by the Board in accordance with the Articles of Association.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisational structure

The volunteer directors delegate the day-to-day management of the company to the Development and Assistant Development Manager who has clearly documented roles and responsibilities and reports directly to the board of trustees.

4

SOUTH ISLAY DEVELOPMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

Induction and training of trustees

The Board of Trustees are continuing to undertake a range of training based on the roles and responsibilities of their post. This is an ongoing process and expected to continue throughout the year to ensure the organisation is fully compliant with legal requirement regulations.

Auditor

William Duncan + Co (Audit) Ltd were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

Dr Patrick McGrann

Trustee

Dated: 31st March 2026

5

SOUTH ISLAY DEVELOPMENT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2025

The trustees, who are also the directors of South Islay Development for the purpose 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 which give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year.

In preparing these financial statements, the trustees are required to:

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

6

SOUTH ISLAY DEVELOPMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOUTH ISLAY DEVELOPMENT

Opinion

We have audited the financial statements of South Islay Development (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 May 2025 which comprise the group statement of financial activities, the group balance sheet, the company balance sheet, the group statement of cash flows, the company statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We 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 charity 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 related 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 the events, or condition that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorises 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 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 course of 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.

7

SOUTH ISLAY DEVELOPMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOUTH ISLAY DEVELOPMENT

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within 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) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 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 parent charity’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 Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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.

8

SOUTH ISLAY DEVELOPMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOUTH ISLAY DEVELOPMENT

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with 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 and trustees those matters we are required to state to them in an auditors' 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.

Mr Neil Reid FCCA (Senior Statutory Auditor) for and on behalf of William Duncan + Co (Audit) Ltd

.........................

Chartered Accountants

Statutory Auditor

30 Miller Road Ayr Ayrshire KA7 2AY

William Duncan + Co (Audit) Ltd is eligible for appointment as auditor of the charitable group by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

9

SOUTH ISLAY DEVELOPMENT

GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2025

Current financial year
Unrestricted Restricted Total Total
funds funds
2025 2025 2025 2024
Notes £ £ £ £
Donations and legacies 3 13,104 1,541,305 1,554,409 1,362,772
Charitable activities 4 20,728 - 20,728 21,432
Other trading activities 5 779,215 18,161 797,376 795,604
Other income 6 - - - 700
Total income 813,047 1,559,466 2,372,513 2,180,508
Expenditure on:
Raising funds 7 738,592 5,263 743,855 744,031
Charitable activities 8 66,012 240,667 306,679 531,579
Other 14 - - - -
Total resources expended 804,604 245,930 1,050,534 1,275,610
Net (outgoing)/incoming resources before
transfers 8,443 1,313,536 1,321,979 904,898
Gross transfers between funds - - - -
Net (expenditure)/income for the year/
Net movement in funds 8,443 1,313,536 1,321,979 904,898
Fund balances at 1 June 2024 128,696 2,109,486 2,238,182 1,333,264
Fund balances at 31 May 2025 137,139 3,423,022 3,560,161 2,238,182

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

10

SOUTH ISLAY DEVELOPMENT

GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2025

Prior financial year
Unrestricted Restricted Total
funds funds
2024 2024 2024
Notes £ £ £
Donations and legacies 3 5,802 1,356,970 1,362,772
Charitable activities 4 21,432 - 21,432
Other trading activities 5 773,359 22,245 795,604
Other income 6 700 - 700
Total income 801,293 1,379,215 2,180,508
Expenditure on:
Raising funds 7 743,437 594 744,031
Charitable activities 8 23,412 508,707 532,119
Other 14 - - -
Total resources expended 766,309 509,301 1,275,610
Net (outgoing)/incoming resources before
transfers 34,984 869,914 904,898
Gross transfers between funds (21,241) (21,241) -
Net (expenditure)/income for the year/
Net movement in funds 13,743 891,155 904,898
Fund balances at 1 June 2023 114,933 1,218,331 1,333,264
Fund balances at 31 May 2024 128,696 2,109,486 2,238,182

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

11

SOUTH ISLAY DEVELOPMENT

GROUP BALANCE SHEET

AS AT 31 MAY 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 15 3,083,159 1,620,619
Investments 16 - -
3,083,159 1,620,619
Current assets
Stocks 14,928 18,603
Debtors 17 257,253 234,757
Cash at bank and in hand 428,292 797,580
700,473 1,050,940
Creditors: amounts falling due within
one year 18 (218,980) (418,258)
Net current assets 481,493 632,682
Creditors: amounts falling after more
than one year 19 (4,332) (14,841)
Provisions for liabilities (159) (278)
Net assets 3,560,161 2,238,182
Income funds
Restricted funds 22 3,423,022 2,109,486
Unrestricted funds 137,139 128,696
3,560,161 2,238,182

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

The financial statements were approved by the Trustees on 31[st] March 2026.

Dr Patrick McGrann Trustee

Company Registration No. SC400320

12

SOUTH ISLAY DEVELOPMENT

COMPANY BALANCE SHEET

AS AT 31 MAY 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 15 3,074,968 1,619,155
Investments 16 100 100
3,075,068 1,619,255
Current assets
Debtors 17 246,986 229,025
Cash at bank and in hand 391,743 725,506
638,729 954,531
Creditors: amounts falling due within
one year 18 (188,786) (375,988)
Net current assets 449,943 578,543
Total assets less current liabilities 3,525,011 2,197,798
Income funds
Restricted funds 22 3,433,022 2,109,486
Unrestricted funds 91,989 88,312
3,525,011 2,197,798

As permitted by s408 Companies Act 2006, the charitable company has not presented its own statement of financial activities and related notes. The parent charity’s net movement in funds for the year was £1,327,213 (2024 - £903,444).

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

The financial statements were approved by the Trustees on 31[st] March 2026.

Dr Patrick McGrann Trustee

Company Registration No. SC400320

13

SOUTH ISLAY DEVELOPMENT

GROUP STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

2025 2025 2024 2024
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 27 1,119,542 987,329
Income taxes paid - -
Interest paid (396) (793)
1,119,146 986,536
Investing activities
Purchase of tangible fixed assets (1,178,182) (1,141,779)
Proceeds on disposal of tangible fixed assets
- -
Net cash used in investing activities (1,178,182) (1,141,779)
Financing activities
Repayment of borrowings (10,252) (9,677)
Net cash used in financing activities (10,252) (9,677)
Net (decrease)/increase in cash and cash
equivalents (369,288) 164,920
Cash and cash equivalents at beginning of year 797,580 962,500
Cash and cash equivalents at end of year 428,292 797,580

14

SOUTH ISLAY DEVELOPMENT

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

2025 2025 2024 2024
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 29 1,136,744 988,181
Investing activities
Purchase of tangible fixed assets (1,470,507) (1,141,454)
Proceeds on disposal of tangible fixed assets
- -
Net cash used in investing activities (1,470,507) (1,141,454)
Net cash used in financing activities -
Repayment of borrowings - -
- -
Net (decrease)/increase in cash and cash
equivalents (333,763) (153,273)
Cash and cash equivalents at beginning of year 725,506 878,779
Cash and cash equivalents at end of year 391,743 725,506

15

SOUTH ISLAY DEVELOPMENT

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

Charity information

South Islay Development (“the parent charity”) is a private company limited by guarantee incorporated in Scotland. The registered office is The Ramsay Hall, Port Ellen, Isle of Islay, Argyll, PA42 7BY.

The group consists of South Islay Development and its subsidiary.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Basis of Consolidation

The consolidated group financial statements consist of the financial statements of the parent charity company, South Islay Development together with all entities controlled by the parent charity company (its subsidiaries).

All financial statements are made up to 31 May 2025 where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are elimination consolidation unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5 Income

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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SOUTH ISLAY DEVELOPMENT

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

1.5 Cont’d

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grant Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Trading subsidiary turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account any trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6 Expenditure

Costs of generating funds comprise the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees.

All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocated directly, others are absorbed by organisation.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 0% on land & 10% straight line on Mobile Home site
Plant and equipment 20% reducing balance & 10% straight line
Fixtures and fittings 20% reducing balance
Computers 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

17

SOUTH ISLAY DEVELOPMENT

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

In the parent charity financial statements, investment in subsidiary is measured at cost and subsequently measured at cost less and accumulated impairment losses.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11 Cash and cash equivalents

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

1.12 Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

18

SOUTH ISLAY DEVELOPMENT

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group’s contractual obligations expire or are discharged or cancelled.

1.13 Taxation

The charity trading subsidiary tax expense represents the sum of the tax currently payable and deferred tax.

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

1.14 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the group’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

19

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

3
Donations and legacies
Unrestricted
Restricted
funds
funds
2025
2025
£
£
Donations and gifts
5,375
208,312
Grants
7,729
1,332,993
13,104
1,541,305
Grants receivable for core activities
Argyll & Bute Council
7,500
669,310
Highlands & Islands Enterprise
-
496,839
DTA Scotland
-
2,100
Foundation Scotland / Crown Estates
-
45,191
Scottish Power
-
1,000
Islay Energy Trust/ Local Energy Scotland/Energy Savings Trust
-
35,085
NHS
-
4,000
Suez Communities Trust
-
32,413
National Lottery
-
24,097
Ardbeg, All Islay Fund
-
4,050
Museum Scotland
-
-
Procast
-
2,000
Argyll Community Housing Association
-
500
The Glenmorangie Company
-
-
Elixir Distillers
-
-
InspirAlba
229
15,408
The Co-operative Bank
-
500
Age Scotland
-
-
Candex
-
-
Western Recreation Trust
-
-
7,729
1,332,993		 Total
Unrestricted
funds
2025
2024
£
£
213,687
5,802
1,340,722
-
1,554,409
5,802
676,810
-
496,839
-
2,100
-
45,191
-
1,000
-
35,085
-
4,000
-
32,413
-
24,097
-
4,050
-
-
-
2,000
-
500
-
-
-
-
-
15,637
-
500
-
-
-
-
-
500
-
1,340,722
-		 Restricted
funds
2024
£
188,524
1,168,446
1,356,970
726,294
165,938
-
15,000
-
2,600
-
-
42,681
39,442
2,125
-
-
150,348
10,121
12,397
-
500
1,000
-
1,168,446		 Total
2024
£
194,326
1,168,446
604,131
726,294
165,938
-
15,000
-
2,600
-
-
42,681
39,442
2,125
-
-
150,348
10,121
12,397
-
500
1,000
-
1,168,446

20

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

4 Charitable activities

Management services
Charitable rental income

Income from other trading activities
Unrestricted
Restricted
funds
funds
2025
2025
£
£
Fundraising
events
32,196
18,161
Trading
subsidiary
747,019
-
779,215
18,161		 Total
2025
£
50,357
747,019
797,376		 Unrestricted
funds
2024
25,489
747,870
773,359		 General
activities
2025
£
20,000
728
20,728
Restricted
funds
2024
£
22,245
-
22,245		 General
activities
2024
£
20,000
1,432
21,432
Total
2024
£
47,734
747,870
795,604

5 Income from other trading activities

6 Other income

Other income

7 Raising Funds

Fundraising and publicity Other fundraising costs Trading subsidiary

Unrestricted Unrestricted Unrestricted
funds funds
2025 2024
£ £
- 700
- 700
Unrestricted Restricted Total Total
Funds Funds
2025 2024
£ £
10,150 5,263 15,413 8,887
728,442 - 728,442 735,144
738,592 5,263 743,855 744,031

21

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

8 Charitable activities

General
activities
Community
Projects
Port Ellen
Playing
Fields
2025
2025
2025
£
£
£
Staff costs
62,533
-
25,974
Depreciation and impairment
5,620
-
9,072
Advertising & Promotions
396
-
-
Events & Hospitality
14,073
-
-
Professional Fees
-
329
1,500
Repairs, renewals and maintenance
7,231
-
-
Room & venue hire
26
-
-
Subscriptions
730
-
-
Travel and subsistence
1,757
-
-
92,366
329
36,546
Grants payable (see note 10)
119,644
-
-
Share of support costs (see note 11)
22,324
-
-
Share of governance costs (see note
11)
35,470
-
-
269,804
329
36,546
Analysis by fund
Unrestricted funds
65,108
-
904
Restricted funds
204,696
329
35,642
269,804
329
36,546		 Total
2025
£
88,507
14,692
396
14,073
1,829
7,231
26
730
1,757
129,241
119,644
22,324
35,470
306,679
66,012
240,667
306,679		 Total
2024
£
98,451
11,220
1,291
21,619
18,206
2,645
-
649
3,342
157,423
352,226
7,799
14,131
531,579
22,872
508,707
531,579

22

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

8 Charitable activities

For the year ended 31 May 2024

General
activities
2024
Community
Projects
2024
Port Ellen
Playing
Fields
£
£
£
Staff costs
71,524
-
26,927
Depreciation and impairment
7,211
-
4,009
Advertising & Promotions
1,291
-
-
Events & Hospitality
21,619
-
-
Other Project expenses
-
-
-
Professional Fees and Subscriptions
-
-
18,206
Training & Seminars
-
-
-
Repairs and renewals
2,645
-
-
Subscriptions
649
-
-
Travel & subsistence
3,342
-
-
108,281
-
49,142
Grants payable (see note 10)
352,226
-
-
Share of support costs (see note 11)
7,779
-
-
Share of governance costs (see note 11)
14,131
-
-
482,437
-
49,142
Analysis by fund
Unrestricted funds
22,872
-
-
Restricted funds
459,565
-
49,142
482,437
-
49,142		 Total
2024
£
98,451
11,220
1,291
21,619
-
18,206
-
2,645
649
3,342
157,423
352,226
7,799
14,131
531,579
22,872
508,707
531,579

9 Description of charitable activities

General activities

General Activities are those carried out by the organisation for the benefit of the community or to raise funds for their general reserves,

Community Projects

Community Projects are projects specifically aimed at involving or benefiting the community such as Christmas tree lights and the community garden.

Port Ellen Playing Fields

Port Ellen Playing fields includes the costs and activities carried out in the building of a new community hub.

23

FOR THE YEAR ENDED 31 MAY 2025

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Grants payable

For the year ended 31 May 2025

General
activities
2025
£
Grants to institutions (20 grants)
Islay Community Grants (restricted)
119,644
119,644		 Total
2024
£
352,226
352,226

All Islay Fund

~~A panel of Islay volunteer residents has been established to appraise and allocate grant fund~~ ing from ~~applications on an annual basis. The panel are independent to South Islay Development. The proce~~ ss is ~~administered by South Islay Development as highlighted in the Trustees report and note 22 and note 25 to the accounts.~~

~~The key aims and aspirations include:~~

24

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

11 Support costs

Support
costs
Governance
costs
£
£
Computer & IT expenses
2,368
-
Finance Expenses
692
-
Management
402
-
Premises
18,862
-
Audit fees
-
15,167
Accountancy & payroll
-
15,054
Legal
-
5,249
22,324
35,470
Analysed between
Charitable activities
22,324
35,470		 2025
Support
costs
Governance
costs
£
£
£
2,368
1,221
-
692
643
-
402
896
-
18,862
5,021
-
15,167
-
6,980
15,054
-
6,707
5,249
-
444
57,794
7,799
14,131
57,794
7,799
14,131		 2024
£
1,221
643
896
6,118
6,980
7,151
444
21,930
21,930

Governance costs includes payments to the auditors of £15,167 (2024 - £6,980) for audit fees of the parent charity £15,000 (2024 £1,352) for non-audit services and accounting software support, and £5,000 (2024 - £3,000) for audit fees of the subsidiary (included within ‘trading subsidiary’ note 7).

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

13 Employees - Group

The average monthly number of employees for the group during the year was:

2025 2024
Number Number
Local Development Officer - 1
Port Ellen Playing Fields Project Manager 1 1
Admin & Finance Officer 1 1
Assistant Development Manager 1 1
Subsidiary staff 6 6
Total 9 10

25

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

13
Cont’d
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
£
132,989
2,415
1,792
137,196		 2024
£
130,742
2,861
2,484
136,087

There were no employees of either the group or company whose annual remuneration was more than £60,000

Employees - Company

The average monthly number of employees for the company during the year was:

Local Development Officer
Port Ellen Playing Fields Project Manager
Admin & Finance Officer
Sonas Childcare Project Manager
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
Number
-
1
1
1
3
2025
£
84,434
2,415
1,658
88,507		 2024
Number
1
1
1
1
4
2024
£
93,514
2,861
2,076
98,451

14 Other Expenses

Unrestricted Total
Funds
2025 2024
£ £
Net loss on disposal of tangible fixed assets - -

26

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

15 Tangible fixed assets - Group

Tangible fixed assets - Group
Freehold Assets Plant and
Fixtures and		 Computers Total
land and
under		 equipment fittings
buildings construction
£ £ £ £ £ £
Cost
At 1 June 2024 231,111 1,353,568 81,759 4,826 3,688 1,674,952
Additions - 1,457,348 20,834 - - 1,478,182
Disposals - - - - - -
At 31 May 2025 231,111 2,810,916 102,593 4,826 3,688 3,153,134
Depreciation and impairment
At 1 June 2024 31,721 - 16,139 3,664 2,809 54,333
Depreciation charged in the year 2,417 - 12,816 232 176 15,641
Eliminated in respect of disposals - - - - - -
At 31 May 2025 34,138 - 28,954 3,897 2,986 69,975
Carrying amount
At 31 May 2025 196,973 2,810,916 73,639 929 702 3,083,159
At 31 May 2024 199,390 1,353,568 65,620 1,162 879 1,620,619

Assets under construction relates to capital costs to date on the new community building at Port Ellen Playing Fields and the prospective SONA’s childcare capital project.

27

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

15 Tangible fixed assets - Company

Tangible fixed assets - Company
Freehold Assets Plant and
Fixtures and		 Computers Total
land and
under		 equipment fittings
buildings construction
£ £ £ £ £ £
Cost
At 1 June 2024 231,111 1,353,568 77,540 4,826 3,688 1,670,733
Additions - 1,457,348 13,159 - - 1,470,507
Disposals - - - - - -
At 31 May 2025 231,111 1,353,568 90,699 4,826 3,688 3,141,240
Depreciation and impairment
At 1 June 2024 31,721 - 13,384 3,664 2,809 51,578
Depreciation charged in the year 2,417 - 11,868 232 176 14,693
Eliminated in respect of disposals - - - - - -
At 31 May 2025 34,138 - 25,251 3,897 2,986 66,272
Carrying amount
At 31 May 2025 196,973 2,810,916 65,448 929 702 3,074,968
At 31 May 2024 199,390 1,353,568 64,156 1,162 879 1,619,155

Assets under construction relates to capital costs to date on the new community building at Port Ellen Playing Fields and the prospective SONA’s childcare capital project.

28

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

16
Fixed asset investments - Company
Cost or valuation
At 1 June 2024 & 31 May 2025
Carrying amount
At 31 May 2025
At 31 May 2024
Other investments comprise:
Investments in subsidiaries
17
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Note
Bank loans
Borrowings
Other taxation and social security
Deferred income
21
Trade creditors
Other creditors
Accruals and deferred income		 Notes
27
Group
2025
£
209,489
-
5,691
42,073
257,253
Group
2025
£
10,397
-
3,850
31,667
17,869
135,311
19,886
218,980		 Other
investments
100
100
100
2025
2024
£
£
100
100
Company
2024
2025
2024
£
£
£
207,011
201,791
203,134
-
1,194
1,172
26,261
2,927
23,234
1,485
41,074
1,484
234,757
246,986
229,025
Company
2024
2025
2024
£
£
£
10,140
-
-
-
-
-
4,414
-
-
31,667
31,667
31,667
185,391
12,798
168,371
180,544
124,435
169,848
6,102
19,886
6,102
418,258
188,786
375,988

Included within ‘Other creditors’ is an amount of £123,950 (2024 - £169,588) for grants payable at the year end in relation to them being administrators for the All Islay Ardbeg fund. The project is fully described within the trustees report.

29

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

19 Creditors: amounts falling due after more than one year

Bank loans
20
Loans and overdrafts
Bank loans
Other loans
Payable within one year
Payable over one year		 Group
2025
£
4,332
Group
2025
£
14,729
5,884
20,613
16,281
4,332
20,613		 Group
2025
£
4,332
Group
2025
£
14,729
5,884
20,613
16,281
4,332
20,613		 2024
£
14,841
2024
£
24,981
5,884
30,865
16,024
14,841
30,865		 Company
2025
£
-
Company
2025
£
-
-
-
-
-
-		 Company
2025
£
-
Company
2025
£
-
-
-
-
-
-		 2024
£
-
2024
£
-
-
-
-
-
-

21 Deferred Income

Group
2025
£
Arising from Deferred Grants
31,667
Deferred income is included in the financial statements as follows:
Deferred income included within:
Current Liabilities
31,667
Movements in the year:
Deferred income at 1 June 2024
31,667
Released from previous periods
(31,667)
Resources deferred in the year
31,667
Deferred income at 31 May 2025
31,667		 2024
£
31,667
31,667
70,384
(70,384)
31,667
31,667		 Company
2025
2024
£
£
31,667
31,667
31,667
31,667
31,667
70,384
(31,667)
(70,384)
31,667
31,667
31,667
31,667		 2024
£
31,667
31,667
31,667

Deferred grants represent multi-year & performance related grants where the conditions have not yet been met, these will be released to match the relevant expenditure.

30

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

22 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.

At 1 June Incoming Resources Transfers At 31 May
2024 resources expended 2025
£ £ £ £ £
Ardbeg All Islay Fund 185,077 180,000 (119,644) - 245,433
Port Ellen Community Hub Project 1,837,306 1,216,850 (11,449) - 3,042,707
Staffing costs 28,005 30,177 (45,743) - 12,439
SID SONAs Childcare Project 6,000 40,625 - - 46,625
MacDonald Fund / Foundation
Scotland 15,000 45,191 (18,453) - 41,738
Community Garden 176 150 (423) 97 -
National Lottery 2,043 15,500 (17,543) - -
Adapt & Thrive 28,533 - (2,774) - 25,759
Other 7,346 30,973 (29,901) (97) 8,321
‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒
2,109,486 1,559,466 (245,930) - 3,423,022
‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒

31

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

22 Restricted funds

Previous year: At 1 June Incoming Resources Transfers At 31 May
2023 resources expended 2024
£ £ £ £ £
The Ardbeg All Islay Fund 360,000 180,000 (354,923) - 185,077
Port Ellen Community Hub Project 812,458 1,034,506 (9,658) - 1,837,306
Staffing costs - 76,441 (48,436) - 28,005
Foundation Scotland/MacDonald Fund 1,989 15,000 (4,666) 2,677 15,000
Community Garden 1,651 1,048 (2,523) - 176
Foundation Scotland / Crown Estates
Early Years 6,000 - - - 6,000
National Lottery 3,117 30,977 (24,748) (7,303) 2,043
Adapt & Thrive 31,307 - (2,774) - 28,533
Elix Staff/Running Costs 18 30,121 (34,765) 4,626 -
Other 1,791 11,122 (26,808) 21,241 7,346
‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒
1,218,331 1,379,215 (509,301) 21,241 2,109,486
‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒

32

SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

22 Restricted funds

The Port Ellen Playing Fields Project has been our main project. It includes the new community hub known as the Pavilion, the Motorhome Park and relocation and extension of the children’s play park with associated landscaping. This project now in its 6th year continues to be fully supported by all funders:· Highlands & Islands Enterprise (HIE) · Argyll & Bute Council · Ardbeg All Islay Fund · Rural Tourism Infrastructure Fund (RTIF) Despite delays and increased costs there is sufficient funding to complete the project at this stage. A healthy contingency fund is maintained at £35,000. Core costs for staffing and office support is provided by an amalgamation of the grants received from:· Argyll & Bute Council · Highlands & Islands Enterprise (HIE) · Inspire Alba · The National Lottery · Foundation Scotland/Macdonald Fund · Ardbeg All Islay Fund. All have an excellent rapport and confidence with the project manager. The accounts bear witness to the amounts of funding achieved.

The Ardbeg All Islay Fund is in partnership with The Glenmorangie Company and follows the sale of a rare Ardbeg 1975 cask sold to a private investor for £16m. A £1m fund was established to distribute to local organisations, projects, and enterprising activities across the whole of Islay over a 5 year period. Grants continue to be available to not-for-profit groups that are working to benefit, enhance the local community and create a legacy.

The fund monies have been paid out in line with the awards approved and committed by the independent panel. A complete list of grant recipients is well publicised. This fund is currently its fourth year. Since its inception it has distributed and monitored 75 grants to groups on Islay. It has become part of “Islay life”.

SID received a further £200k in the year, £20k per year for administration (which is unrestricted) and the remaining £180k is distributed. SID SONAS Project - Plans are underway for a purpose built childcare facility, providing childcare for 0-3 year olds. This has been aided by:· Argyll and Bute Council CLLD Fund · Argyll & Bute Health and Social Care Partnership · Procast. Further funding will be required to commence detailed architectural design and planning.

Work within our community to enhance its environs is important to SID. Maintenance of the Community Garden, annual planting and of the half barrels around the village is greatly appreciated by villagers and tourists alike .A firework display on bonfire night continues to be more magnificent year on year. Many thanks the the local fire brigade for aiding and assisting with this. Some cheer is brought during the lead up to Christmas by street lighting and a Christmas Tree lighting ceremony is well supported. SID maintains the tradition of providing refreshments at the majority of these events. So the funding from The Co-op Community Fund local businesses is well spent.

The increasing popularity of the Port Ellen Bowling Club providing both outdoor and indoor bowling during the winter months is greatly supported by SID

The Filling Station has a been supported by the Adapt and Thrive Fund which has allowed a new cash register complimented by enhanced fiscal software.

The HELP Appeal supports the development of a Helipad on Islay still in the planning and design stages. Discussions are underway with the owner of a potential site.

During the year SID has been pleased to help, advise and offer some administrative and office services to other several groups on Islay.

There is much in-kind assistance for members and businesses in producing lunch clubs, ceilidhs, concerts and disco dances. In themselves bolstering SID income and maintaining connectivity, consultation and engagement with our local community.

These activities bear witness to SID’s achievements and give confidence to external funders that “SID delivers”.

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SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

23 Analysis of net assets between funds Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Fund balances at 31 May 2025 are represented by:
Tangible assets 66,447 3,016,712 3,083,159 61,472 1,559,147 1,620,619
Current assets/(liabilities) 66,183 406,449 481,493 82,343 550,339 632,682
Long term
assets/(liabilities)
(4,491)		 - (4,491) (15,119) - (15,119)
137,139 3,423,161 3,560,161 128,696 2,109,486 2,238,182

24 Capital Commitments

At 31 May 2025 the group had the capital Contracted for but not provided in the financial statement:

Acquisition of property, plant, and equipment Group
2025
2024
£
£
232,421
792,934		 Company
2025
2024
£
£
232,4214
792,394

The commitment of £232,421 is in relation to the building of a new Community Hub at Port Ellen Playing Fields. Construction continues post year end, until the hand back from the contractor took place in September 2025.

25 Related party transactions

The charity purchased advertising services from Ileach Ltd totalling £569 (2024 - £1,464). The entity is related by virtue of a shared trustee Mr James Porteous.

As disclosed at the Restricted funds, note 22, The Ardbeg All Islay Fund is in partnership with the Ardbeg Distillery. There is an independent Board who receive review and approve or reject the funding applications. South Islay Development have provided an administration role for this project and have no influence or control over the decisions of the funds. South Islay Development were however able to apply to this fund. In the year South Islay Development was successful for application awards totalling £6,725 (2024 - £25,441). The entity is related by common board members.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

SOUTH ISLAY DEVELOPMENT

26 Subsidiaries

These financial statements are separate charity financial statements for 2025:

Details of the charity's subsidiaries at 31 May 2025 are as follows:

Name of undertaking
Registered		 Nature of business Class of Class of % Held % Held
office shares held **Direct ** Indirect
South Islay Trading
Scotland		 Fuel Station Ordinary 100.00
Company
27 Cash generated from operations - Group 2025 2024
£ £
Surplus for the year 1,321,979 904,898
Adjustments for:
Taxation charges (119) (6)
Depreciation and impairment of tangible fixed assets 15,640 11,560
Finance costs 396 793
Loss on disposal of tangible fixed assets - -
Movements in working capital:
(Increase) /Decrease in stocks 3,675 (7,253)
(Increase) /Decrease in debtors (22,496) (214,726)
Increase/(Decrease) in creditors (199,533) 330,780
Increase/(Decrease) in deferred income - (38,717)
Cash generated from operations 1,119,542 987,329
28 Analysis of changes in net funds - Group
At 1 June Cash flows At 31 May
2024 2025
£ £ £
Cash at bank and in hand 797,580 (369,288) 428,292
Loans falling due within one year (16,025) (257) (16,282)
Loans falling due over one year (14,841) 10,509 (4,332)
766,714 (359,036) 407,678

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SOUTH ISLAY DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

29 Cash generated from operations - Company 2025 2024
£ £
Surplus for the year 1,327,213 903,444
Adjustments for:
Depreciation and impairment of tangible fixed assets 14,692 11,220
Loss on disposal of tangible fixed assets - -
Movements in working capital:
(Increase)/Decrease in debtors (17,961) (218,710)
(Decrease) in creditors (187,200) 330,944
Increase in deferred income - (38,717)
Cash generated from operations 1,136,744 988,181
30 Analysis of changes in net funds - Company
At 1 June 2024 Cash flows At 31 May
2025
£ £ £
Cash at bank and in hand 725,506 (333,763) 391,743
Loans falling due within one year - - -
725,506 (333,763) 391,743

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