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2025-07-31-accounts

REGISTERED COMPANY NUMBER: SC405625 (Scotland) REGISTERED CHARITY NUMBER: 042592

Strategic Report, Report of the Trustees and Audited Financial Statements for the Year Ended 31 July 2025

for

AOEC Trust Limited

Macleod Fulton Scottcourt House West Princes Street Helensburgh Argyll & Bute G84 8BP

VAN

macleod fulton chartered& business accountantsadvisers

AOEC Trust Limited

Contents of the Financial Statements for the Year Ended 31 July 2025 :

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AOEC Trust Limited

Reference and Administrative Details for the Year Ended 31 July 2025

TRUSTEES

TRUSTEES G DM Bruce (resigned 16.2.26) J Foster J B Fraser S Logie E B Bain (deceased 15.4.26) R Hall K Hart REGISTERED OFFICE Ardroy Outdoor Education Centre Lochgoilhead Cairndow PA24 8AE REGISTERED COMPANY S$C405625 (Scotland) NUMBER REGISTERED CHARITY 042592 NUMBER INDEPENDENT AUDITORS Macleod Fulton Scottcourt House West Princes Street Helensburgh Argyll & Bute G84 8BP

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AOEC Trust Limited

for the Year Ended 31 July 2025

Report of the Trustees

AOEC Trust Limited Report of the Trustees For the Year ended 31 July 2025

The Trustees are pleased to present their report together with financial statements of the charity for the year ended 31 July 2025. The legal and administrative information forms part of this report.

Structure, Governance and Management

The charity was established as a company limited by guarantee on 18th August 2011 and as a charity on 15th September 2011. The charity is constituted by its Articles of Association and Memorandum of Understanding. We have no subsidiary undertakings.

We are governed by our Board of Trustees which comprises of seven trustees led by the chairman. During the reporting period the salaried Chief Executive Officer (CEO) continues to oversee the strategic direction of the Trust and the redevelopment of the Centre. The Centre Manager (CM) is responsible for the day-to-day running of the Centre. There are also three salaried Senior Manager posts, the Chief Instructor position, responsible for the management and development of the instructing team and delivery of course programmes, the Development Manager, responsible for developing programmes relationships with schools and universities and the Finance Manager, responsible for day-to-day financial management of the Centre, payroll and providing management reports.

The CM and management team are empowered to make the day-to-day decisions on service delivery in line with the Trust's aims and objectives. The CEO advises the Board on the Trust's strategic direction, financial management, including the setting of annual budgets and any financial commitment outside of set budgets and is also responsible for the development and implementation of the Development Plan.

The Board retains responsibility for making decisions regarding:

We have in place policies and procedures for the induction and training of trustees. The existing trustees were recruited to the Board to ensure that a mix of skills and experience in outdoor education, business management, financial and project management skills were present to enable the management of the charity's affairs. Any recruitment of new trustees will ensure that this mix of skills and experience remains within the Board. In terms of appointment of new trustees, these are approved by the Board who are responsible for the induction, which will involve giving an understanding ofa trustee's responsibilities, the memorandum and articles, administrative procedure and the history and ethos of Ardroy. They will take into consideration the skills and experience that the individual brings and how these can further the objectives of the charity.

Training of trustees is through online documents and videos in particular when new trustees are being appointed or if there are any significant changes to trustees’ roles and responsibilities.

Remuneration of our key management personnel is set by the Board, benchmarking against other commercial outdoor education centres, and recognising the financial pressure charities are under, within the parameters of affordability, determined and set by the Board. Another key factor in the setting of remuneration packages is the reputational risk should these be set at too high a level. However, in our approach we recognise that it is important to strike a balance between attracting and retaining good quality staff and minimising what we spend in areas that are not directly attributable to the delivery of our core objectives and as such are overheads on the service delivery. Remuneration packages are reviewed annually.

We have no umbrella group. We remain in partnership with the Action for Children charity, however our partnership with the Children Ist charity ended in March 2025 due to a change in their core priorities and funding constraints. We have no other formal relationships with other charities or organisations.

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AOEC Trust Limited

Reference and Administrative Details

Report of the Trustees for the Year Ended 31 July 2025

Our Board of Trustees or our governing body is comprised of 7 members and has been led by our chair, James Fraser who was appointed on 8th March 2018.

The following organisations provide services and advice to the charity:

Our Auditors are: Macleod Fulton Chartered Accountants & Business Advisers Scottcourt House, West Princes Street Helensburgh G84 8BP

Our Bankers are:

The Co-operative Bank PO Box 101 | Balloon Street Manchester M60 4EP The Unity Trust Bank Nine Brindley Place Birmingham Bl 2HB

Objectives and Activities

The enduring objectives of the trust are:

Ardroy Outdoor Education Centre is a prime contributor to the National and Local Outcomes which form an integral part of the Single Outcome Agreement 2009 between the Scottish Government and Local Authorities. The planned strategies to achieve these objectives, through the nature of the work carried out by the Trust at Ardroy Outdoor Education Centre, is particularly relevant to the following outcomes:

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AOEC Trust Limited

Report of the Trustees

for the Year Ended 31 July 2025

All these things add to a child's confidence and self-belief. It is positive to note that accompanying teachers find the knowledge and experience gained from a course at Ardroy carries on into the classroom on the children's return to school with them being much more helpful and tolerant towards each other. Very often a child who is not academic thrives and becomes more confident after achievements at the centre. At home many parents have reported that whereas before attending Ardroy their child did not make their bed, clear dishes, etc, they now do this.

We have put in place a Bursary Fund to help finance children whose parents are suffering from financial hardship and are unable to afford to send their children to Ardroy. This aims to minimise the number of children that would be deprived of the opportunity to enjoy the benefits the centre has to offer. - No 8. We have improved the life opportunities for children, young people and families at risk. By furthering education and encouraging outdoor activity and exercise, children become more confident, achieve more and are far more likely to spend time putting their energy into sports, joining clubs or doing activities which keep them occupied and out of trouble. Our work with Action for Children is part of this outcome.

Ardroy is an eco-centre with an environmental code of practice and all visitors are encouraged to be involved in recycling, reducing waste, composting and learning about renewable energy. Waste-watchers is a very successful programme where wasted food is weighed and educates the children on aspects of the food they are eating and encourages them to waste less. The Centre is part of a management arrangement with the Cormonachan Woodlands Association for an Atlantic Oak woodland area and there the children are introduced to traditional woodland crafts such as making charcoal and how to use simple woodworking tools. They are also educated in the forest habitat and the management of the wood. Woodland activities dovetail with The John Muir Award. Children are also taught ways to help the environment after they leave the centre.

The cost of delivering our charitable activities was £802,447. Of this £11,246 related to governance costs and £479,643 to staff costs.

Neither social investment or grant making form a material part of our charitable activities. There were no volunteer contributions during the period of this report.

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AOEC Trust Limited

Report of the Trustees

for the Year Ended 31 July 2025

We have continued with our impact surveys to measure the effectiveness and success of our activities through feedback from our customers on how beneficial our courses have been in meeting the desired outcomes. The survey for 2024/25, which can be viewed on our website, clearly demonstrates the benefits of residentials to children and young people. For example 96% of teachers noted a significant or significant or slight increase in children's self esteem post Ardroy and 91% observed a significant or slight increase in children's self reliance and ability to work independently.

The Trust's performances achieved against the charitable enduring objectives set are as follows:

This is down on the 73 schools attending in the year end 31 July 2024, it is also down on the 2,164 participants during the year end 31 July 2024. This remains symptomatic of the increased non-attendance for multiple reasons, which can include anxiety of both parents and children. This can be exacerbated by cost-of-living challenges, resulting in parents struggling to afford to send their children on residentials. This remains a worrying downward trend in the numbers attending. We have a Bursary Fund in place to financially support some children and continue to work on a project to break down barriers which prevent children attending. Securing funding to deliver this however, is proving problematic. We again hosted residential visits for Argyll & Bute and Stirling resettlement teams with 54 young people attending, We also worked with Standing Tall Scotland with 28 children attending. - To provide development and educational opportunities utilising the facilities and to organise workshops and courses with the centre's facilities and activities being made available to members of the public at large with the object of improving their conditions oflife: No workshops were held during this reporting period, however, we continue to work with the Cormonachan Community Woodlands to provide members ofthe public with outdoor experiences. We guided members of the public around the newly accessible ancient settlement within Cormonachan. We also delivered a residential to 17 Collins Aerospace apprentices. - To advance public participation in sport, which involves physical skill and exertion, particularly amongst younger people. One of our continuing aims is to capitalise on this market and increase this type of utilisation, particularly at weekends when the Centre has significant spare capacity.

We hosted 9 youth groups totaling 80 young people. This compares with 9 youth groups and 125 young people for the year end 31 July 2024. This was some 45 participants down and demonstrates that breaking into this area remains a challenge as most youth groups rely on securing ad hoc grant funding. - To advance citizenship and community development and, in particular, amongst younger people. Stirling University work continued with 16 students attending navigation courses.

Through our work with Children Ist we worked with 3 hubs across Scotland working with 67 family members through residentials and outreach work. The project ended in March 25 due to Clst changing priorities and funding constraints. We continue to work with another children's charity, Action for Children, delivering 4 residentials with 56 children attending. We have continued our work with the SAY Women charity.

To advance environmental conservation; Ardroy is an eco-centre with an environmental code of practice and all visitors are encouraged to be involved in recycling, reducing waste, composting and learning about renewable energy. The Centre remains part of a management arrangement now with the Cormonachan Community Woodland Association for an Atlantic Oak woodland area. The children have continued visiting, undertaking bushcraft skills such as making charcoal and how to use simple woodworking tools and they are also educated in the forest habitat. These woodland activities dovetail into the John Muir Award. In addition, they also remove the invasive rhododendron, helping the native species of trees thrive.

Ardroy also delivers a weekly woodland learning group on the Rosneath peninsula for flexi-schooled or home educated young people.

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AOEC Trust Limited

Report of the Trustees for the Year Ended 31 July 2025

Finally, we are working with others in the sector to promote the benefits of outdoor education but also to highlight the very real challenges that the sector is facing.

In overall terms the numbers attending the Centre were 2,139, considerably less than the 2,663 attending last financial year, but we are not alone in this changing dynamic, many other outdoor centres face the same challenge. Although we continue to encounter significant running cost increases in several areas coupled with the need to invest in areas of the Centre, this has been largely managed by the implementation of savings measures and prudent financial management resulting in a small surplus for this financial year. Considering the large reduction in numbers attending is a remarkable achievement.

We anticipate the challenges of reducing school numbers to continue, and the CEO has undertaken a further strategy review with the Centre's management team which has resulted in a number of proposals being adopted to ensure the Trust remains viable going forward. We also continue to adapt our business model to provide greater resilience whilst retaining our charitable objectives.

Capital Investment

There were no plans for capital investment during this reporting period, and none were undertaken.

The following successful grant applications were made during the reporting period:

Stafford Trust £2,500

We also received £74,675 for the Children Ist Bide Oot Project through the STV Appeal grant to Children Ist.

No material financial investments are held.

Financial Review

This reporting period has seen continuing challenging trading conditions with running costs increasing and numbers of children from schools attending reducing. Therefore, our focus again has had to be on securing the continued financial viability of the Centre within a safe operating environment. We continue to use our risk management system to identify the main risks and put in place appropriate mitigations and managing our cost model to enable us to continue to make informed and balanced operational and financial decisions.

We have continued to address some of the backlog of maintenance work, but the planned capital investment programme was slow in progressing. The agreed programme of upgrade work due to commence in the summer of 2025 was delayed as our electrical contractor closed his business down. We have now appointed a new contractor, and the work is now progressing on a phased basis.

Our partnership work with Children Ist ended in March 2025 due to changes in their priorities and financial constraints. This has had a significant financial impact and we are actively looking at developing into other areas of business to compensate for this.

The principal funding sources during the year were from fees paid by parents through schools and youth groups for the delivery of outdoor education services. This amounted to income of £727k, which is £7k less than the £734k received in the last financial year end 31 July 2024. Donations and grants amounted to £77k which was down from £150k last financial year. The total resources expended in delivering our objectives were £802k compared with £901k last financial year, which is a significant decrease. We have worked hard to manage cost increases, and the reduced resources expended reflects the significant work in this area. We have also been working with schools to identify the reasons for the lower-than-normal attendance and one of the key factors emerging is anxiety from both parents and children. The net surplus of £31k represents a slight improvement on the £13k net surplus last financial year and reflects the hard work undertaken to improve our financial position.

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AOEC Trust Limited

Report of the Trustees for the Year Ended 31 July 2025

As indicated earlier, it remains a difficult trading environment with running costs increasing and the number of participants attending reducing. The Trust actively managed all costs to ensure overheads were kept to a minimum and that all expenditure was essential, but significant cost increases were encountered in areas where we have no control. An analysis of the resources expended shows £802,447 was recorded against our charitable activities of which 11,246 was in respect of governance costs. Diligent and careful work by the management team and Trustees is ongoing to ensure that our auditors are satisfied that the financial statements gave and true and fair view of the Trust's financial position.

The main cost drivers for this reporting period were wages, utilities, coaches and essential maintenance/repairs.

During the reporting period:

The Trust is aware of the need to secure their viability beyond the immediate future. In order to be able to provide reliable services over the longer term, our organisation must be able to absorb setbacks and take advantage of change and opportunity. The Trust's Reserves Policy was again reviewed, and it was felt the minimum level of cash reserves of four months gross expenditure, which equates to some £100,000, was still considered to represent a satisfactory level of financial resources to provide sufficient security. However as at 31st July 2025 despite the reducing numbers of children attending from schools and the impact of the cost of living increases, the Trust managed to hold its reserves at £80,401. This represents no change from the previous reporting period and given the ongoing challenging trading circumstances this is a remarkable achievement. Assuming a return to normal trading it is considered that it will now take around 2 years to reach the revised target.

The main focus for short to medium term remained keeping the Trust financially viable given the ongoing challenges caused by the cost of living. To ensure that we continue to deliver our core aims and objectives the redevelopment of Ardroy remains a priority moving forward and this work has now recommenced.

In prioritising Ardroy's work for the longer term we continue to focus on the areas in which we believe we can make the strongest contribution and the areas which if improved will significantly benefit that contribution. We have defined that contribution in terms of six strategic objectives.

Our strategic objectives directly support delivery of our aims and objectives. They define in more specific terms the key ways in which we believe that we can best have a positive impact, in support of[the][collective][national][effort][to][give][our] children and young people the best outdoor education we can provide.

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AOEC Trust Limited

Report of the Trustees

for the Year Ended 31 July 2025

Each of the strategic objectives makes a distinctive contribution to building the coherent overall framework which is necessary to ensure that we continue to improve and adapt the excellent service we currently provide and our plans for the future centre around the targets we have set in our Development Plan to deliver these. Progress on the strategic objectives and targets is reported as follows:

Promote high-quality learning for all of our customers;

To make better use of impact surveys working with our customers to get more informed feedback, which will enable us to evaluate and ensure that our courses are delivering the required outcomes. It will also allow us to identify any areas where improvement is required and are working with our customers to continue to develop our programmes to ensure that they remain current and appropriate and that we continue to provide high quality learning to all of our customers.

Our school impact surveys have been reintroduced, and data indicates outcomes continued to be met. This will be refined more as we receive more data. Our work with Action for Children and SAY Women is subject to extensive reviews and feedback sessions to ensure we are delivering in line with agreed outcomes

- Developed improved links with the local community;

Most of our business is still Fife Schools, however we are working hard to develop improved links with the local community.

During the reporting period we worked in partnership with Argyll & Bute Council to deliver a residential with Ukrainian refugees which was extremely successful.

This has allowed us to build connections with Argyll & Bute and we delivered 4 days of team building to their staff. We have also continued our local community work through continuing to work with the local primary school. We also offer a weekly Climbing Club to local children, as well as an annual Summer Camp. We are continuing to work with the Cormonachan Woodlands Association.

- Improve our organisational capability and invest in our people;

To ensure that our organisational structure is effective and to continue to invest in our people to enable them to build on their core skills. It is important that we develop and retain our staff and providing appropriate training is considered to be one of the key areas to enable this and to keep our standards of delivery high.

Despite the challenges we have continued to support staff training and career development and have now put in place a People Plan to show how we can retain, attract and develop staff.

We have extended our customer base to work with Action for Children delivering three residentials and post residential work. This will be increasing to six residential visits next financial year.

During the next reporting period we will be looking forward to further extending our customer base, with a focus on working with military veterans and their families.

Develop and improve our facilities;

The cost-of-living impact has restricted our ability to progress our planned work and we have had to concentrate our limited funds on maintaining facilities and undertaking repairs to keep them from deteriorating. However, the identified improvement programme of work has commenced on a phased basis.

Finally, despite the cost of living we have made good progress on delivering these Strategic Objectives.

Delivery ofthe sixth Strategic Objective, which is to maintain and improve the long-term viability of the Trust has had to focus on keeping our short-to-medium-term viability, as without this our longer term viability would be threatened. This has resulted in us adapting our business model, increasing prices and introducing savings measures. These changes will continue to be implemented during the next reporting period to ensure the ongoing viability of the Trust.

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AOEC Trust Limited

Report of the Trustees for the Year Ended 31 July 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

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

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

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

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

In so far as the trustees are aware:

AUDITORS

The auditors, Macleod Fulton, will be proposed for re-appointment at the forthcoming Annual General Meeting

Approved by order ofthe board of trustees on 21 April 2026 and signed on its behalf by

K Hart - Trustee

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Report of the Independent Auditors to the Trustees and Members of AOEC Trust Limited

Opinion

We have audited the financial statements of AOEC Trust Limited (the ‘charitable company') for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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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Report of the Independent Auditors to the Trustees and Members of AOEC Trust Limited

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where 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 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Report of the Independent Auditors to the Trustees and Members of AOEC Trust Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

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

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

In identifying and assessing the risks or material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the following;

risks of irregularities.

Based on our understanding of the charity and the sector we identified that the principal risks of noncompliance with laws and regulations related to, but were not limited to;

- Regulations and legislation pertinent to the charity's operations.

We considered the extent to which non-compliance might have a material impact on the financial statements. We also considered those lawson regulations which have a direct impact on the preparation of the financial statements, such as the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006. We evaluated management and trustees’ incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls), and determined that the principal risks were related to;

Audit response to the risks identified;

Our procedures to respond to the risks identified included the following;

-Gaining an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates

-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; -Enquiring of management, trustees and legal advisors concerning actual and potential litigation and claims;

-Reading minutes of meetings of those charged with governance; -in addressing the risk of fraud as a result of management override of controls, testing the appropriateness of journal entries and other adjustments; evaluating rationale of any significant transactions that are unusual or outside the normal course of business.

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

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.

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Report of the Independent Auditors to the Trustees and Members of AOEC Trust Limited

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

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. Our audit work has been undertaken so that we might state to the charitable company's members and the 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 and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mhairi Fulton BA CA (Senior Statutory Auditor)

for and on behalf of Macleod Fulton Eligible to act as an auditor in terms of Section 1212 of the[Companies][Act][2006] Scottcourt House West Princes Street Helensburgh Argyll & Bute G84 8BP

21 April 2026

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AOEC Trust Limited

Statement of Financial Activities

for the Year Ended 31 July 2025

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||||||||| |---|---|---|---|---|---|---|---| |31.7.25|31.7.24| |Unrestricted|Restricted|Total|Total| |fund|funds|funds|funds| |Notes|£|£|£|£| |INCOME|AND|ENDOWMENTS|FROM| |Donations|and|legacies|2|61|77,176|TE23F|150,199| |Other|trading|activities|3|755,704|-|755,704|764,064| |Other|income|-|-|-|320| |Total|755,765|77,176|832,941|914,583| |EXPENDITURE|ON| |Charitable|activities|4| |Vehicles &|Travel|$7,343|1,000|58,343|67,390| |Buildings|&|Ground|33,597|-|33,597|57,665| |Utilities|42,654|-|42.654|56,670| |Souvenirs &|Marketing|7,176|-|7,176|7,516| |Activity|Equipment|12,928|2,500|15,428|13,784| |Staff Salaries|399,451|80,192|479,643|520,935| |Social|Security|39,875|-|39,875|30,932| |Administration|41,391|4,083|45,474|52,041| |Food &|Household|69,011|.|69,011|83,351| |Governance|11,246|-|11,246|10,943| |Total|714,672|87,775|802,447|901,227| |NET|INCOME/EXPENDITURE)|41,093|(10,599)|30,494|13,356| |RECONCILIATION|OF|FUNDS| |Total|funds|brought|forward|$45,522|34,936|580,458|567,102| |TOTAL|FUNDS CARRIED|FORWARD|586,615|24,337|610,952|580,458|

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The notes form part of these financial statements

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AOEC Trust Limited

Balance Sheet 31 July 2025

31.7.25 31.7.24
Unrestricted Restricted Total Total
fund funds funds funds
Notes £ £ £ &
FIXED ASSETS
Tangible assets 9 422,753 3,000 425,753 437,907
CURRENT ASSETS
Stocks 10 5,342 . 5,342 4,135
Debtors 1] 30,006 - 30,006 73,955
Cash at bank and in hand 314,427 21,337 335,764 218,206
349,775 21,337 371,112 296,296
CREDITORS
Amounts falling due within one year 12 (181,270) . (181,270) (138,577)
NETCURRENT ASSETS 168,505 21,337 189,842 157,719
TOTAL ASSETS LESSCURRENT
LIABILITIES 591,258 24,337 615,595 595,626
CREDITORS
Amounts fallingdue after more than one year 13 (4,643) - (4,643) (15,168)
NETASSETS 586,615 24,337 610,952 580.458

The notes form part of these financial statements

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AOEC Trust Limited

Balance Sheet - continued 31 July 2025

FUNDS 15
Unrestricted funds
General fund 586,615 545,522
Restricted funds:
Robertson Trust 3,000 4.000
Heron Block Replacement 19.108 23,191
Hardship Fund 2.229 7.745
24.337 34.936
TOTALFUNDS 610,952 580.458

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The financial statements were approved by the Board of Trustees and authorised for issue on 21 April 2026 and were
signed on its behalfby
_ -be
| Loe
K Hart - Trustee
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The notes form part of these financial statements

F

Page 17

AOEC Trust Limited

Cash Flow Statement

for the Year Ended 31 July 2025

31.7.25 31.7.24
Notes £ £
Cash flows from operating activities
Cash generated from operations I 147,054 (5,681)
Interest paid 619 1,588
Net cash provided by/(used in) operating activities 147,673 (4,093)
Cash flowsfrom investing activities
Purchase oftangible fixed assets
Sale oftangible fixed assets
(12,182)
-
(14,394)
320
Net cash used in investing activities (12,182) (14,074)
Cash flows from financing activities
Loan repayments in year (17,933) (28,852)
Net cash used in financing activities (17,933) (28,852)
Change in cash and cash equivalents in
the reporting period 117,558 (47,019)
Cash and cash equivalents at the
beginning ofthe reporting period 218,206 265,225
Cash and cash equivalents at the end of
thereportingperiod 335,764 218,206

The notes form part of these financial statements

Page 18

AOEC Trust Limited

Notes to the Cash Flow Statement

for the Year Ended 31 July 2025

1; RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
313725 31.7.24
£ £
Net income for the reporting period (as per the Statement ofFinancial
Activities) 30,494 13,356
Adjustments for:
Depreciation charges 24,335 22,922
Profit on disposal offixed assets - (320)
Interest paid (619) (1,588)
(Increase)/decrease in stocks (1,207) 141
Decrease/(increase) in debtors 43,949 (50,831)
Increase in creditors 50,102 10,639
Netcash provided by/(used in) operations 147,054 (5,681)
ANALYSIS OFCHANGES IN NET FUNDS
At 1.8.24 Cash flow At 31.7.25
£ £ £
Net cash
Cash at bank and in hand 218,206 117,558 335,764
218,206 117,558 335,764
Debt
Debts falling due within year (17,932) 7,408
Debts falling due after year (15,168) 10,525
(33,100) _17,933 15,167)
Total 185,106 135,491 320,597

The notes form part of these financial statements

Page 19

AOEC Trust Limited

Notes to the Financial Statements for the Year Ended 31 July 2025

  1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have 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 | January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The Trust's business activities, a review of the business, together with the factors likely to affect its future developments, its financial position, financial risk management objectives and details of its financial instruments are described in the Strategic Report on pages | and 2.

After making suitable enquiries, the Trustees have a reasonable expectation that the Trust has adequate resources to meet its liabilities as they fall due for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Income

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

Expenditure

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

Tangible fixed assets

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

Roof repairs 2% straight line Conservatory 5% straight line Biomass fuel system 5% straight line Motor vehicles 20% straight line Plant & machinery 20% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Fund accounting

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

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

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

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued

for the Year Ended 31 July 2025

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Ba DONATIONS AND LEGACIES
31.7.25 31.7.24
£ £
Donations 61 392
Grants 77,176 149,807
77,237 150,199
Grants received, included in the above, are as follows:
31.7.25 31.7.24
£ &
Robertson Trust - 5,000
Children First Fund 74,676 132,132
JT Howat Charitable Trust - 500
Co-op Local Community Fund - 1,505
Hardship Fund - 5,000
Argyll Owl Group - 270
Cormonachan Community Woodlands Heritage Developer - 5,400
The Stafford Trust 2,500 -
77,176 149,807
i Fe OTHERTRADING ACTIVITIES
31.725 31.7.24
£ £
Course Income 727,247 733,936
Souvenir Income 12,629 14,832
Other Income 15,828 15,296
755,704 764,064
4. CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Vehicles& Travel 58,343
Buildings& Ground 33,597
Utilities 42,654
Souvenirs& Marketing 7,176
Activity Equipment 15,428
StaffSalaries 479,643
Social Security 39,875
Administration 45,474
Food& Household 69,011
Governance 11,246
802,447

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2025

  1. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

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||||||| |---|---|---|---|---|---| |31.7.25|31.7.24| |£|£| |Depreciation|- owned|assets|24,336|22,922| |Surplus on|disposal|of fixed|assets|-|(320)|

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  1. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 31 July 2025 nor for the year ended 31 July 2024.

Trustees’ expenses

There were no trustees' expenses paid for the year ended 31 July 2025 nor for the year ended 31 July 2024.

Ts STAFF COSTS

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|||||||||| |---|---|---|---|---|---|---|---|---| |31.7.25|31.7.24| |£|£| |Wages|and|salaries|484,907|544,350| |Social|security|costs|39,875|30,932| |Other|pension|costs|8,370|9.711| |533,152|584,993| |The|average|monthly|number of employees|during|the|year was|as|follows:| |31.7.25|31.7.24| |Average|headcount|25|26|

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No employees received emoluments in excess of £60,000.

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|||||||| |---|---|---|---|---|---|---| |8.|COMPARATIVES|FOR|THE|STATEMENT OF|FINANCIAL|ACTIVITIES| |Unrestricted|Restricted|Total| |fund|funds|funds| |£|£|£| |INCOME|AND|ENDOWMENTS|FROM| |Donations|and|legacies|392|149,807|150,199| |Other|trading|activities|764,064|-|764,064| |Other|income|320|-|320| |Total|764,776|149,807|914,583| |EXPENDITURE|ON| |Charitable|activities| |Vehicles &|Travel|66,390|1,000|67,390| |Buildings &|Ground|57,665|-|57,665| |Utilities|56,670|-|56,670| |Souvenirs &|Marketing|7,516|.|7,516| |Activity|Equipment|13,514|270|13,784| |Staff Salaries|368,883|152,052|520,935| |Social|Security|30,932|-|30,932|

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continued...

Page 22

AOEC Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2025

8. COMPARATIVES FORTHE STATEMENTOF OF FINANCIAL ACTIVITIES - continued ACTIVITIES - continued
Unrestricted Restricted Total
fund funds funds
£ £ £
Administration 44,541 7,500 52,041
Food & Household 83,351 - 83,351
Governance 10,943 - 10,943
Total 740,405 160,822 901,227
NET INCOME/(EXPENDITURE) 24,371 (11,015) 13,356
RECONCILIATION OF FUNDS
Total funds brought forward 521451 45,951 $67,102
TOTAL FUNDSCARRIED FORWARD 545,522 34,936 580,458
9. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£ £ £ £
COST
At
August 2024 532,058 61,717 27,228
Additions - 12,182 - 12,182
At 31 July 2025 $32,058 73,899 27,228 633,185
DEPRECIATION
At
August 2024 118,103 49,280 15,713
Charge foryear 11,854 9,603 2,879 24,336
At 31 July 2025 129,957 58,883 18,592 207,432
NET BOOK VALUE
At 31 July 2025 402,101 15,016 8.636 425,753
At 31 July 2024 413,955 12,437 11,515 437,907
10. STOCKS
31,7:25 31.7.24
£ £
Stocks 5,342 4,135

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued Notes to the Financial Statements - continued
for the Year Ended 31 July 2025
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
317.25 31.7.24
£ £
Trade debtors 28,857 73,955
Prepayments and accrued income 1,149 .
30,006 73,955
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.25 31.7.24
£ £
Bank loans and overdrafts (see note 14) 10,524 17,932
Trade creditors 6,257 3,854
Accruals and deferred income 164,489 116,791
181,270 138,577
13. CREDITORS: AMOUNTS FALLING DUE AFTER MORETHAN ONE YEAR
31.7.25 31.7.24
£ £
Other loans (see note 14) 4,643 15,168
14. LOANS
An analysis of the maturity ofloans is given below:
31.7.25 31.7.24
£ £
Amounts falling due within one year on demand:
Bank loans 10,524 17,932
Amounts falling due between two and five years:
Bank Loans 4,643 15,168
15. MOVEMENT IN FUNDS
Net
movement At
At 1.8.24 in funds 31.7.25
£ £ £
Unrestricted funds
General fund 545,522 41,093 586,615
Restricted funds
Robertson Trust 4,000 (1,000) 3,000
Heron Block Replacement 23,191 (4,083) 19,108
Hardship Fund 7,745 (5,516) 2,229
34,936 (10,599) 24,337
TOTALFUNDS 580.458 30,494 610,952

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2025

15. MOVEMENT IN FUNDS- continued

Net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 755,765 (714,672) 41,093
Restricted funds
Robertson Trust - (1,000) (1,000)
Heron Block Replacement - (4,083) (4,083)
Children First Fund
74,676 (74,676) -
Hardship Fund - (5,516) (5,516)
The Stafford Trust 2.500 (2,500) -
77,176 (87,775) (10,599)
TOTAL FUNDS 832,941 (802,447) 30,494
Comparatives formovement in funds
Net
movement At
At 1.8.23 in funds 31.7.24
Ee £ £
Unrestricted funds
General fund 521,151 24,371 545,522
Restricted funds
Climate Challenge Fund 4,983 (4,983) -
Restricted General Fund 6,277 (6,277) -
Robertson Trust - 4.000 4,000
Heron Block Replacement 23,191 - 23,191
Lochgoil Community Trust 7,500 (7,500) -
Hardship Fund 4,000 3,745 7,745
45,951 (11,015) 34,936
TOTALFUNDS 567,102 13,356 580,458

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2025

15. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 764,776 (740,405) 24,371
Restricted funds
Climate Challenge Fund - (4,983) (4,983)
Restricted General Fund - (6,277) (6,277)
Robertson Trust 5,000 (1,000) 4,000
Children First Fund
132,132 (132,132) -
Co-op Local Community Fund 1,505 (1,505) -
Lochgoil Community Trust : (7,500) (7,500)
Hardship Fund 5,000 (1,255) 3,745
Argyll Owl Group 270 (270) -
Cormonachan
Community Trust
5,400 (5,400) -
JT Howatt Charitable Trust 500 (500) -
149,807 (160,822) (11,015)
TOTALFUNDS 914,583 (901,227) 13,356

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1.8.23 in funds 31.7.25
£ £ £
Unrestricted funds
General fund 521,151 65,464 586,615
Restricted funds
Climate Challenge Fund 4,983 (4,983) -
Restricted General Fund 6,277 (6,277) .
Robertson Trust - 3,000 3,000
Heron Block Replacement 23,191 (4,083) 19,108
Lochgoil Community Trust 7,500 (7,500) -
Hardship Fund 4,000 (1,771) 2,229
45,951 (21,614) 24,337
TOTALFUNDS 567,102 43,850 610,952

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continued...

AOEC Trust Limited

Notes to the Financial Statements - continued

for the Year Ended 31 July 2025

15.

MOVEMENT IN FUNDS- continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 1,520,541 (1,455,077) 65,464
Restricted funds
Climate Challenge Fund - (4,983) (4,983)
Restricted General Fund : (6,277) (6,277)
Robertson Trust 5,000 (2,000) 3,000
Heron Block Replacement - (4,083) (4,083)
Children First Fund
206,808 (206,808) -
Co-op Local Community Fund 1,505 (1,505) -
Lochgoil Community Trust - (7,500) (7,500)
Hardship Fund 5,000 (6,771) (1,771)
Argyll Owl Group 270 (270) =
Cormonachan Community Trust 5,400 (5,400) -
JT Howatt Charitable Trust 500 (500) -
The Stafford Trust 2,500 (2,500) -
226,983 (248,597) (21,614)
TOTALFUNDS 1,747,524 (1,703,674) 43,850

16. CONTINGENT LIABILITIES

As at 31 July 2025 the Trust had no contingent liabilities (2024 - £nil).

  1. CAPITAL COMMITMENTS

As at 31 July 2025 the Trust had no capital commitments (2024 - £nil). 18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2025.

Page 27

AOEC Trust Limited

Detailed Statement of Financial Activities for the Year Ended 31 July 2025

Detailed Statement of Financial Activities
for the Year Ended 31 July 2025
31.7.25 31.7.24
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
61
77,176
392
149,807
77,237 150,199
Other trading activities
Course Income 727,247 733,936
Souvenir Income 12,629 14,832
Other Income 15,828 15,296
755,704 764,064
Other income
Gain on sale oftangible fixed assets : 320
Total incoming resources 832,941 914,583
EXPENDITURE
Charitable activities
Staff
Costs& Expenses
484,907 544,350
Social security 39,875 30,932
Pension costs 8,370 9,711
Food& Household 69,011 83,351
Vehicles& Travel 58,343 67,390
Utilities 63,105 77,307
Buildings& Ground Expenses 33,524 39,329
Administration 22.635 ZT SST
Souvenirs& Marketing 7,176 7.516
Activity Equipment 15,501 13,784
802,447 901,227
Total resources expended 802,447 901,227
Netincome 30,494 13,356

This page does not form part of the statutory financial statements

Page 28