**Royal Engineers Central Charitable Trust** 

**Charity number: 1003032** 


## **Trustees' report and financial statements** 

**For the year ended 31 December 2025** 





**Royal Engineers Central Charitable Trust** 

## **Contents** 

|1<br>Reference and administrative<br>details of the charity<br>2<br>Trustees and advisers<br>WHO<br>WE ARE|3<br>Chair’s Review<br>4-15<br>Trustee’s report<br>WHAT<br>WE DID|16-19<br>Auditor’s report<br>20<br>Consolidated SOFA<br>21<br>Consolidated balance<br>sheet<br>22<br>Charity balance sheet<br>23<br>Consolidated statement of<br>cash flows<br>24-40<br>Notes to the financial<br>statements<br>HOW<br>WE PERFORMED|
|---|---|---|





## **Royal Engineers Central Charitable Trust Reference and administrative details of the charity** 

## **REGISTERED NUMBER** 

1003032 

## **HEAD OFFICE AND REGISTERED OFFICE** 

Headquarters Royal Engineers Brompton Barracks Chatham Kent ME4 4UG 

## **INDEPENDENT AUDITORS** 

Kreston Reeves Audit LLP 2[nd] Floor Maritime Place Quayside Chatham Maritime Chatham Kent ME4 4QZ 

## **BANKERS** 

Lloyds Bank plc Piccadilly Branch PO Box 1000 London BX1 1LT 

## **SOLICITORS** 

Furley Page LLP 39 St Margaret’s Street Canterbury Kent CT1 2TX 

## **INVESTMENT MANAGERS** 

BlackRock Investment Managers 12 Throgmorton Avenue London EC2N 2DL Trinity Bridge Ltd 10 Crown Place London EC2A 4FT 

1 



**Royal Engineers Central Charitable Trust Trustees and advisers** 

Trustees and advisers who served during the year ending 31 December 2025 were as follows: 

Lieutenant General Sir Christopher Tickell KBE Chief Royal Engineer and Chair 

Major General Richard Semple CBE Chair, Corps Finance Committee (tenure complete July 2025) 

Major General Peter Rowell MBE Chair, Corps Finance Committee (assumed post July 2025) 

Major General Joe Fossey OBE Representative Colonel Commandant 

Major General Nick Cavanagh CB President, Institution of Royal Engineers 

Major General Alastair Dickinson CBE Chair, Royal Engineers Association 

Major General David Southall CBE Chair, Royal Engineers Museum 

Major General Eldon Millar MBE Chair, Royal Engineers Regimental Affairs Committee 

Brigadier Jim Webster Commandant Royal School of Military Engineering Group 

Brigadier Simon Carvel Commander, 8 Engineer Brigade (tenure complete June 2025) 

Brigadier Jamie Stuart Commander, 8 Engineer Brigade (assumed post June 2025) 

Brigadier Jase Ainley OBE Chief Engineer & Civil Military Co-operation, HQ Allied Rapid Reaction Corps 

Colonel Dickie Hawkins MBE ADC Corps Colonel 

Colonel Alastair Cooper QVRM TD Deputy Corps Colonel (tenure complete September 2025) 

Colonel Daniel Hall VR Deputy Corps Colonel (assumed post September 2025) 

Warrant Officer Class 1 Spencer Eardley Corps Sergeant Major 

Ms Dawn Marriott Non-Executive Director 

Mr Russell Lovell Corps Secretary (tenure complete May 2025) 

Lieutenant Colonel Si Farmer MBE Corps Secretary (assumed post July 2025) 

Major (retired) Ian Sidebottom Corps Treasurer (assumed post September 2013) 

2 



**Royal Engineers Central Charitable Trust** 

## **Chair’s Review** 

It is my pleasure to present the Royal Engineers Central Charitable Trust (RECCT) 2025 Annual Report and Financial Statements. This report not only fulfils our statutory obligations but also demonstrates our enduring commitment to the careful stewardship of the charity’s funds in support of the Corps and the wider Sapper Family. 

The accounts reflect the high standards of governance, financial management, and accountability required by law and upheld by the Corps Finance Committee, supported by the professionalism of the Corps Funds team at Regimental Headquarters Royal Engineers. Their collective efforts ensure that the Trust remains transparent, resilient, and well positioned for the future. 

I am delighted to report that our investments in the BlackRock–managed Armed Forces Charities Growth & Income Fund have not only steadied but are now showing clear signs of renewed momentum. Rising dividend income is strengthening our capacity to support the Corps, reinforcing the vital link between prudent stewardship today and greater impact tomorrow. 

Our investment properties continue to play a central role in providing diversification and dependable income, currently generating approximately £60,000 per annum net. The acquisition of a fourth property in 2025 marks a further step in building a resilient, long-term income platform to underpin the Charity’s future ambitions. 

Looking ahead, and in a purposeful move to broaden opportunity and manage risk, RECCT has reallocated £2 million from the BlackRock investment into a two-part portfolio: one component now entrusted to Trinity Bridge, and the other invested with Hg Capital Trust. This strategic diversification (with a foray into private equity) positions the Charity to participate in future growth while strengthening the sustainability of our resources for generations of Corps beneficiaries to come. 

Together, these measures reflect our enduring commitment to careful stewardship, longterm resilience, and the responsible growth of the Charity’s assets, ensuring that we honour today’s obligations while building a lasting legacy of support for the Corps in the decades ahead. 

This is my first report as Chair of the Corps Finance Committee and I wish to place on record my sincere thanks to the Corps Treasurer and his team, and to my fellow committee members, for their unwavering commitment and diligence in ensuring the Trust remains financially strong and continues to deliver tangible benefits to the Sapper Family. 

Once a Sapper, always a Sapper. 

Major General Peter Rowell MBE 

3 



**Royal Engineers Central Charitable Trust** 

## **Trustees’ Report For the year ended 31 December 2025** 


The Trustees have reviewed their activities against the criteria set out within the latest edition (2025) of the Charity Governance Code (see above) and present their annual report and the audited consolidated financial statements of the charity and its subsidiaries for the year ended 31 December 2025. The financial statements have been prepared in accordance with the accounting policies set out at note 2 to the accounts and comply with the charity’s trust deed, the Charities Act 2011, and the Charities SORP FRS 102. Trustees consider that in preparing these financial statements they have taken into account all information that could reasonably be expected to be available (including levels of reserves held). Therefore, the going concern basis of accounting is deemed appropriate and there are no material uncertainties. This is confirmed by the completion of a ‘Going Concern Assessment’ which was passed to our auditors. The Trustees have appointed professional advisers and other organisations to support them in delivering the charity’s objectives. These advisers and organisations are listed on page 1.  The Trustees have written agreements in place with each of them. 

## **OBJECTIVES, AIMS AND ACTIVITIES** 

Armed Forces charities today offer a broad range of services and support to the Armed Forces community which can range from enhancing quality of life through to direct assistance and intervention. Every charity has its own vision, mission, aim, as well as eligibility criteria to support a specific beneficiary group or groups.  The objects of the Royal Engineers Central Charitable Trust were formally reviewed in 2025 and revised to include reference to the RE Museum and RE HQ Mess. A consolidating Trust Deed will be produced in 2026 to reflect these changes: 

- _"To promote the efficiency of the Armed Forces and in particular The Corps of Royal Engineers;_ 

- _- To promote the activities of the Royal Engineers Association, the Institution of Royal Engineers, The Royal Engineers Museum and The Royal Engineers Headquarter Mess as laid down in their respective Charters;_ 

- _To foster an esprit de corps in the Royal Engineers;_ 

- _To relieve either generally or individually necessitous persons being members or former members of the Royal Engineers or the dependants of such persons."_ 

4 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

Specific activities for 2025 were set by Trustees against 8 planned budgets.  Further details are provided under Achievements and Performance. Trustees achieved their objectives for 2025 through a dedicated secretariat and maintaining annual income from: 

- The Day’s Pay Scheme (Officers and Soldiers, Regular and Reserve); 

- Market Investments (dividends) and Investment Properties (rental income); 

- Occasional legacies; 

- Trading through our subsidiary Limited Company (RECE Ltd). 

## **PUBLIC BENEFIT** 

The Trustees confirm they have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in deciding what activities the charity should undertake.  The charity provides public benefit by assisting regular and reserve service personnel in the Corps of Royal Engineers to perform their roles and duties within the British Army more effectively. The charity also supports the veteran community and their families and thus enhances esprit de corps by promoting the concept of support to the Sapper family for life. It does this by providing the support funding for sports, in-house publications, welfare, gatherings, and events. The Charity promotes the efficiency of the armed forces of the Crown by enhancing the British Army’s capability to undertake the roles demanded of it including the defence of the UK and its interests. By supporting the wider Sapper family, it assists the Government in fulfilling its promise in the Armed Forces Covenant (which the RECCT signed up to in 2019) to treat Serving personnel, Veterans, and their families fairly. In 2022, for its commitment to serving the Armed Forces community, the RECCT was awarded a Gold Award under the Employer Recognition Scheme (ERS). This is scheduled for renewal in 2027. 

In addition to promoting the efficiency of the Army and, in particular, the military efficiency of the Corps of Royal Engineers by promoting Esprit de Corps, the work of the RECCT benefits the public by: 

- Allocating 50% of the charitable income it receives from the Day’s Pay Scheme to the Royal Engineers Association (REA) whose prime objective is to provide financial assistance to those in need and benevolence cases from serving and former members of the Royal Engineers and their families. 

- Providing financial support to the Royal Engineers Museum, which is open to the general public and provides an educational outreach programme. 

- Providing financial support to further education and professional memberships via the Institution of Royal Engineers. 

- Providing financial support to serving officers and soldiers (Regular and Reserve) participating in sports & games. 

## **ACHIEVEMENTS AND PERFORMANCE** 

Trustees pursued the following activities against planned and authorised budgets: 

1. Continued support to network charities. 

2. Promoted esprit de corps throughout the Royal Engineers. 

3. The publication of six ‘The Sapper’ magazines in 2025 (in print and digital format). 

4. Financial support to 34 sports and games associations, unions and clubs, and several individuals who participated in high profile sports activities. 

5. Maintained the Pension Plan Scheme for private employees compliant with Auto Enrolment legislation. 

6. Maintained a ‘Regimental Activity’ fund of ~£80k per annum. 

7. Provided grants to assist the Corps’ Female Soldiers (on promotion to Sergeant) to purchase their Mess Kit uniform. 

8. Funded a signed portrait of His Majesty The King to every Royal Engineer unit. 

9. Continued grants in support of formal dinners for Senior NCOs attending their Sergeant’s Course. 

10. Continued grants in support of lunches for Junior NCOs during their Army Leadership Development Programme. 

11. Generated income from investments (including investment properties). 

12. Provided a retail service (in store, online, and ‘on the road’) for Corps memorabilia and related items. 

5 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Supporting Network Charities** 

The historic Trustee arrangement that allocates a percentage from the Payroll Giving Scheme direct to nominated network charities provided them with the following income: 

||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Royal Engineers Association|455,345|429,519|
|Institution of Royal Engineers|216,112|205,994|
|Royal Engineers Museum|60,000|50,000|
|**Grants to Foster Esprit de Corps**|||
|Trustees authorised the following grants in 2025:|||
||**2025**|**2024**|
||**£**|**£**|
|RE Sports & Games|468,375|380,195|
|Communications Hub (incl The Sapper Magazine)|71,210|70,869|
|Esprit de Corps|173,388|235,251|



## **Publishing ‘The Sapper’ Magazine** 

Trustees provided £68,268 (2024: £70,869) to fund the Comms Hub publication of an all ranks ‘The Sapper’ magazine.  Some 4,000 copies of The Sapper magazine were published bi-monthly. Free copies of the magazine are sent to Regular Royal Engineer units for the benefit of the officers and soldiers who subscribe to the RECCT. Free copies were also sent to Royal Engineer Reserve units, affiliated Army Cadet units, Royal Engineer officers and soldiers serving in non-Royal Engineer units. The Sapper continues to be well received both by units and individuals, including former members of the Corps and Royal Engineers Association branches, who make a donation. The Sapper provides a focal point in publicising the Corps’ activities and in engendering esprit de corps. The Sapper magazine has been remodelled and is now a hybrid, print and digital, publication. The Sapper magazine now sits within the Corps Communications Hub and enhances the Corps’ opportunities to deliver consolidated messaging across both social media and print. 

## **Supporting Corps Sports Clubs** 

Trustees approved financial grants supporting more than 6,000 personnel (serving, veteran and cadets) through 34 sports associations, unions, and clubs. The charity also made grants totalling £65,000 in support of the annual Sapper Games, hosted by 35 Engineer Regiment (EOD&S) in Wimbish, Saffron Walden. Sapper Games 2025 attracted over 2,000 soldiers and veterans competing in 28 sports as well as highlighting wellbeing and mindfulness. Trustees have already approved financial support to Sapper Games 2026 being hosted by 22 Engineer Regiment in Tidworth, Wiltshire. 

## **Optimising Income from the Days Pay Scheme (DPS)** 

Since 1 April 2007, DPS subscriptions have been collected by a Payroll Giving scheme via the Joint Personnel and Administration (Centre). On 1 April 2007 officers’ subscriptions, including an element for their membership of the Institution of Royal Engineers and the Royal Engineers’ Association, increased from 150% to 160% of a day’s assessable pay per annum. Officers also make a voluntary subscription of 70% of a day’s assessable pay to the Royal Engineers Headquarter Mess. Soldiers’ subscriptions increased from 100% to 110%.  Warrant Officers’ and Senior Non-Commissioned Officers’ elected to increase their subscriptions from 110% to 115% in August 2010. The 5% increase being used to set up a new designated fund for their use. In 2012 serving soldier subscriptions were increased to 120% and 125%. Reserves officers and soldiers have been able to make annual contributions (12%) via JPA since 2015 which, since 1 October 2023, has been increased to 20%. 

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**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Generating Income & Growth from Investments** 

Investments delivered dividends of £289,576 in 2024 (2024: £326,923). During the period 1 January to 31 December 2025, the performance of the distribution units in the fund was +12.8% (2024: +8.1%) after fees and expenses. Details of the Corps Investment Powers, House and Policy are contained in the Financial Review of this report. 

In 2019, the Charity realised investment units and purchased two houses in a local development (previously the site of a Royal Engineers barracks). The rationale being to diversify during a difficult market period whilst generating an additional funding stream, through rental income. The charity completed its purchase of a third property (in the Ebbsfleet Garden City development) in Q1 of 2022 and a fourth property in January 2025.  These properties generated £66,096 in 2025 (c4.6% yield). 

## **FINANCIAL REVIEW** 

## **Summary** 

The consolidated account generated net expenditure for the charity, before other recognised gains and losses, of £64,962 (2024: net expenditure of £73,931). 

The accumulated funds of the Charity increased by £463,893 to £10,937,931 (2024: increased by £311,686 to £10,474,038). The consolidated funds increased by £476,067 to £10,962,487 (2024 increased by £300,365 to £10,486,420). 

## **Balance Sheet** 

Notes to the Statement of Financial Activities and Balance Sheet provide supplementary information against each funding activity. 

## **Investment Powers** 

The Trust Deed provides full and unrestricted powers of investment to the Trustees, who sub-delegate investment decisions to a professional Investment House, within the parameters of overall guidance by the Trustees. 

## **Investment House & Policy** 

RECCT invests in the Armed Forces Charities Growth & Income Fund, managed by BlackRock, plus a Discretionary Portfolio managed by Trinity Bridge who also provide our Execution Only Portfolio (with Hg Capital).  In 2025, Trustees agreed the investment policy in conjunction with a new 5-year strategy. 

## **Investment Manager’s Fund Commentary** 

## **BlackRock** 

This year has been one of transition for BlackRock’s Armed Forces Charities Growth & Income Fund, marked by a shift to a global benchmark to capture the broader global opportunity set, and a shift to a total return approach to ensure the long-term security of dividends. We are pleased to see that these changes are already having an increasingly positive effect on the Fund’s performance, and we have high conviction in the positioning of the portfolio as we head into 2025. Whilst we are disappointed that the Fund underperformed the benchmark over the course of 2024, the Fund delivered strong absolute returns as well as continued to grow its distribution. In addition, changing the benchmark at the start of the year has been key to improved performance versus peers; already the new benchmark has significantly outperformed the old one. 

7 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

More broadly, BlackRock continue to take a long-term view when managing the Armed Forces Charities Growth & Income Fund. With this in mind, whilst the fund’s underperformance over the short term is disappointing and they have taken steps to address this, their focus remains on safeguarding against permanent losses in capital. They do this by: 

- Being diversified across asset classes, sectors, and geographies. Striving to maintain this diversification even as benchmarks become ever more concentrated; 

- Utilizing underlying managers who carry out thorough due diligence and seek to identify companies that have strong balance sheets, competitive advantages, and management teams with a proven track record; 

- A strong focus on risk management and downside protection 

## **Trinity Bridge** 

The value at close of business on 31 December 2025 was £1,098,174.  The portfolio provided dividends and interest of £6,199.35 over the period. This is in line with our estimated annual income projection of c.£14,700 which equates to an income yield of 1.3%. Total (dividends and capital) return over the period from inception to the end of 2025 was +10.2%. This compares favourably with the ARC Equity Risk figure of +5.4%. Looking at market indices, Global Equities as measured by MSCI World returned +8.2% whilst Global bonds returned +2.1%. The investment objective for the portfolio is Capital Appreciation with a base currency in Sterling (£). This means:  Portfolios within this category seek a return primarily from capital appreciation of assets. In such portfolios income is not a priority and thus the allocation to interest or income generating assets will usually be lower.  As described above the purpose of the portfolio is to help the trust’s total asset base to at least keep pace with inflation plus an additional margin of return. The investment time horizon for the portfolio is 10+ years and there are no investment restrictions on it. The portfolio will be diversified by security, asset class and geographical regions. It may also hold collectives for smaller geographic regions or for more focused thematic investment ideas. 

To sum up, we feel the trust is well positioned for future growth and feel that any possible hiccup is most likely to arise from geo-political rather than corporate events. 

## **HgCapital Trust** 

HG Capital Trust (HgT) provides investors with a listed vehicle to invest in one of the largest and fastest growing portfolios of unquoted technology companies in Europe, managed by Hg. The objective of HgT is to provide stakeholders with consistent long-term returns in excess of the FTSE All-Share Index by investing predominantly in unquoted companies where value can be created through strategic and operational change. 

In 2025, HgT delivered a solid performance, reflecting the continued strength of its underlying portfolio of software and technology-enabled services businesses across Europe and North America. 

The Trust benefited from resilient earnings growth within its core holdings, supported by high levels of recurring revenue and strong cash generation. Despite a mixed macroeconomic backdrop—characterised by persistent inflationary pressures and a gradually stabilising interest rate environment—the portfolio demonstrated defensive qualities and sustained demand for mission-critical software solutions. 

Net asset value (NAV) growth over the period was driven by a combination of operational improvements within portfolio companies and selective realisations at attractive multiples. Deployment activity remained disciplined, with Hg continuing to focus on high-quality businesses exhibiting durable growth characteristics and strong market positions. 

8 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

Share price performance tracked underlying NAV progression, with the Trust maintaining a relatively stable discount/premium level compared to peers in the listed private equity sector. Dividend distributions remained consistent with prior years, reflecting the Trust’s commitment to providing shareholders with a predictable income stream. 

Looking ahead, HgCapital Trust plc is well positioned to capitalise on ongoing digital transformation trends, supported by a robust pipeline of investment opportunities and the deep sector expertise of the Hg investment team. 

## **Reserves Policy** 

The account posts net expenditure of £64,962 (2024: net expenditure of £73,931) before realised and unrealised gains. Gains on investments amounted to £537,029 (2024: gains of £347,393), and losses on revaluations of fixed assets were £5,857 (2024: £5,707) giving a positive net movement in funds of £476,067 (2024: positive net movement of £300,365). Trustees review the reserves policy and investments during the annual budgetary cycle. 

The Charity is heavily dependent on current members of the Corps supporting the Day’s Pay Giving Scheme (c30% of total income). Any major change in the structure or strength of the Corps could impact the levels of future support available to the Sapper Family.  The charity relies upon the MoD for administration of the Day’s Pay Giving Scheme, provision of infrastructure, utilities, and a proportion of staff costs. If these MoD donated services were to be withdrawn, the charity would suffer an operational shock for which adequate reserve provision should be made. With high inflation and deposit rates very low, this year has again highlighted the need to consider ways to mitigate the impact of price and salary increases (wage inflation) on our long-term objectives. The performance of the Charity’s investment portfolio is subject to global market movements and, while the present value of the portfolio produces (generally) 30% of total required income, the value and/or dividend income can fluctuate, potentially markedly, due to market volatility. The aim of our Reserves is to ensure the charity thrives and survives. 

To mitigate the identified financial risks, adequate reserves are required to meet the Charity’s objectives. Reserves should be able to meet potential operational shocks and increases in demands whilst also enabling Trustees to deliver on the Charity’s objects. The Charity’s commitment is to support the Sapper Family now and particularly in the future. Therefore, Trustees have assessed the level of reserves and related investments required to meet these contingencies and to mitigate against the current risk profile, to be in the range of £10 million. Lastly, high inflation means cash could be losing its value in real terms, so cash reserves are being invested. Current unrestricted reserves are £10,962,488 of which £12,016 is shop stock (2024: £10,486,420 of which £39,549 was shop stock) which Trustees consider is consistent with this policy. £51,915 of our unrestricted reserves are designated funds. Free Reserves at year-end were £10,705,315 (2024: £10,222,291). The only restricted grant used in 2025 comprised the ASCB grant of £55K to be used solely in support of sport which was used to support Sapper Games 2025 and the Corps Boxing Championships 2025. 

## **Grant Making Policy** 

Trustees invite applications from network charities and organisations, external establishments with a past or extant connection to the Corps and from individuals who subscribe to the Days’ Pay Scheme who embark on major sporting or challenging pursuits.  Details of how to apply for routine or annual grants are communicated in writing to network charities and organisations, briefings to new subscribers or by telephone to the Corps Treasurer. Details of grants made in 2025 are covered under Achievements and Performance. 

## **Remuneration Policy** 

Privately employed personnel working for the RECCT have their salaries authorised by the appropriate charity committee, agreed by means of an individual employment contract, and are paid from the appropriate charity fund. As far as possible, salary scales are to be linked to the Civil Service pay system with staff placed on the initial ‘starters rate’ salary for the agreed Civil Service pay band (this to be expressed in their contract of employment). Payment is made through a registered PAYE payroll via the respective charity. The charities also operate an in-year reward scheme for exceptional performance with Corps Colonel RE as the arbiter for the scheme to ensure parity across all charities. Trustees are not paid by the charity for their services as a Trustee but are reimbursed for expenses incurred during performance of their duties, in accordance with the Trustee’s agreed policy. Trustees are reviewing remuneration in 2025/26 in line with the revised strategy. 

9 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Equality, Diversity & Inclusion** 

Our female beneficiaries make up approximately 3.7% of the serving Corps of Royal Engineers (10.4% are officers and 2.5% soldiers) with the Army as a whole being 10.4% female (as at 1 March 2025). Reporting in line with the UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017: 75% of RECCT staff are female and 25% male. There is no pay gap between male and female staff who carry out the same job, similar jobs, or work of equal value and there is no ethnicity pay gap. The Corps of Royal Engineers, like the rest of the Army, is proud to be ethnically diverse and inclusive. Lastly, 25% of RECCT employees are veterans or veteran’s spouses. 

## **PLANS FOR FUTURE PERIODS** 

The RECCT plans to: 

- Continue to develop the RECCT short, medium, and long-term financial planning and forecasting. 

- Continue to maintain the RE Private Pension Plan, in line with Auto Enrolment legislation. 

- Monitor, review and refine the RE Days Pay Scheme. 

- 

- Cohere activities with RECCT strategy, Chief Royal Engineer’s Strategy and the Army People Plan. 

## **SUMMARY** 

The Trustees remain confident of their ability to continue to meet the Objects of the Charity in the future. 

## **INDEPENDENT AUDITORS** 

Kreston Reeves Audit LLP remained the Trustees’ choice as charity auditor and have, following a Tender Board process, been retained until 2030. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Trust Deed** 

The Royal Engineers Central Charitable Trust (RECCT, Charity number 1003032) Trust Deed dated 14 March 1991 was made by the Members of the Chief Royal Engineer’s Committee (the Original Trustees).  The Trust Deed allowed the Original Trustees to remain as Trustees whilst they continued to serve on the Chief Royal Engineer’s Committee. The Original Trustees have been superseded by new Members of the Chief Royal Engineer’s Board, all of whom have indicated their willingness and eligibility to serve as Trustees. In 2026, a consolidated Trust Deed will be produced to reflect the new structure of the Board of Trustees and Finance Committee. 

## **Background** 

The RECCT combined and superseded the former funds called the ‘Royal Engineers Officers’ Charitable Fund’ and the ‘Royal Engineers General Charitable Purposes Fund’.  These funds were classified as excepted from registration as charities under the provisions of Statutory Instrument 1965 No.1056 being charities _"wholly or mainly concerned with the promotion of the efficiency of any of the armed forces of the Crown....”_ Due to the increasing size of their assets and on advice sought from the Charity Commission, action was taken to draw up a Deed of Trust and to have the RECCT formally registered as a Charity. 

## **ORDERS AND RESOLUTIONS** 

Based on subsequent resolutions made by the Trustees, the Charity Commissioners have approved: 

## **Investment** 

An Order providing the Trustees power to appoint an investment manager and to delegate to him/her discretionary powers in relation to the Charity’s investments. 

10 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Indemnity** 

An order from the Charity Commission authorising the Trustees to provide indemnity insurance for themselves out of the charity funds was issued on 15 September 2001. 

## **ORGANISATION** 


**----- Start of picture text -----**<br>
RE Central Charitable Trust<br>Board of Trustees<br>RE Finance Committee<br>RE Corps  RE Sports &<br>RE Investment<br>Enerprises Ltd    Entertainments<br>Committee  [1]<br>(The Sapper Shop) Board<br>**----- End of picture text -----**<br>


_Note 1: RE Investment Committee dormant (see below)._ 

During their Trustee meetings members of the Chief Royal Engineer’s Board agree the broad strategy and areas of activity for the charity, including consideration of grant making, investment, reserves, risk management, HRM policies and performance. The Trustees are served by subordinate committees with delegated responsibility for fulfilling their role, each chaired by a Trustee who is responsible for reporting back to the Chief Royal Engineer’s Board. The subordinate committees are: 

## - **RE Finance Committee** 

In 2009 Trustees approved Terms of Reference for the RE Finance Committee which were reviewed in 2017 as part of The Chief Royal Engineer’s governance policy review and again in 2019 as part of the Corps’ Quinquennial review. The Committee advises the Trustees on financial policy and the control of funds based on an annual budget system incorporating a five-year forecast. 

## - **RE Investment Committee** 

This Committee fulfils a combined responsibility together with nominated representative Trustees of the connected charities i.e. The Royal Engineers Association, Charity Nos. 258322 and SC041832, The Institution of Royal Engineers, Charity No. 249882, and the Royal Engineers Vocational Educational Training Trust (REVETT), Charity No. 1068709, to lay down a detailed generic investment policy for the Corps Charities and for informing the investment manager of the extent of the investment powers for each Charity and for all other matters laid down in the Order for the delegation of investment powers. Since joining the Armed Forces Common Investment Fund (AFCIF) the need for regular committee meetings diminished.  It is still considered appropriate to remain in the AFCIF (now a CAIF) with future meetings being held at the discretion of the Chair or a convincing request by a committee member. 

## - **RE Sports and Games and Entertainments Board** 

Responsible for vetting and recommending to Trustees, via the RE Finance Committee, the level of annual grant appropriate to recognised Corps Sports, Games, and other challenging pursuits. Responsible for the annual review and allocation of funds from the Corps entertainment and esprit de corps budgets and for making grant recommendations to Trustees, via the Corps Finance Committee. Responsible for drafting relevant policy (sponsorship etc) for approval by the RE Finance Committee. TOR were reviewed in 2025. 

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**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **RHQ RE** 

Day to day administration of the RECCT is vested in RHQ RE. Grant applications are processed to the relevant sub-committee by the Corps Treasurer who administers and accounts for approved grants. 

## **TRUSTEES** 

The Trustees who served during the year are detailed on page 2. Trustees (part of Chief Royal Engineer’s Board) held formal meetings in April, July, and December 2025. In July they approved the 2024 Statement of Financial Affairs and in December reviewed their 2025 expenditure prior to authorising annual budgets for 2026. The Corps Finance Committee met in June and October. 

## **Appointment of Trustees** 

New Trustees are invited to hold office after discussion by the appropriate committee and at the personal invitation of the Chief Royal Engineer or his nominated representative.  As part of their induction process each Trustee is provided with a copy of the Trust Deed, a copy of the Charity Commission leaflet explaining the responsibilities of Trustees, a locally produced Trustee Handbook and copies of the Charity’s fraud policy, conflict of interest policy, whistleblowing policy, and access to previous audited accounts. Each Trustee signs a certificate to confirm their eligibility and willingness to act as a Trustee. In 2025 new Trustees attended formal Charity Trustee Training Programmes (run virtually) and several existing Trustees undertook refresher training. People with Significant Control (PSC) and all Conflicts of Interest (actual or perceived) are recorded in registers held and maintained by the Corps Treasurer. All Trustees complete a Related Party Questionnaire annually. 

## **NETWORK CHARITIES** 

## **THE ROYAL ENGINEERS ASSOCIATION** 

The responsibility for undertaking all benevolence work on behalf of the Corps is vested in the Royal Engineers Association (REA). In addition to using their accrued trust funds, investment income and occasional legacies for benevolence purposes, the REA, receive 50% of the Day’s Pay Scheme income received by the RECCT for charitable purposes.  A separate Trustees’ annual report is prepared by the REA together with the Charity’s financial statements, Charity Nos. 258332 and SC041832. 

## **THE INSTITUTION OF ROYAL ENGINEERS** 

The Objects of the Institution of Royal Engineers, as set out in its Royal Charter and Bye-Laws, are to promote and advance the science of military engineering and to promote military efficiency and particularly the military efficiency of the Corps of Royal Engineers. In addition to using their accrued trust funds and investment income for this purpose, the Trustees of the Institution, which routinely includes members of the Chief Royal Engineers Board, receive 71.5% of the income drawn down from serving officer contributions (gathered via payroll giving), and since 2012, received payroll giving scheme contributions from serving WOs & SNCOs (10%) and Junior Ranks (10%). A separate Trustees’ Annual Report is prepared by the Institution of Royal Engineers together with the Charity’s financial statements, Charity No. 249882. 

## **THE ROYAL ENGINEERS MUSEUM (REM)** 

Overall control of the Royal Engineers Museum (REM) is vested in the Trustees of the Institution of Royal Engineers.  Financial support towards the running costs of the Museum is provided by The Institution of Royal Engineers and the RECCT. Financial control of the Museum is delegated to the Royal Engineers Museum Committee which draws up an annual budget against planned activities for Trustee approval. A separate Trustees’ report is included with the Statement of Financial Affairs prepared by the Royal Engineers Museum. In 2024, REM transitioned to a CIO Foundation structure. 

12 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **TRUST FUNDS OF DISBANDED UNITS AND ESTABLISHMENTS** 

The Trust Deed dated 8 March 1957 was made by members of the Chief Royal Engineer’s Committee (the original Trustees).  The Trustees operate under the terms of a Scheme approved and established on 8 March 1957 for the regulation of the Trust Funds of Disbanded Units and Establishments (DUTF) of the Corps of Royal Engineers "Central Charities" comprising: 

- Officers’ Mess Funds; 

- Warrant Officers’ and Sergeants’ Mess Funds; and 

- - President of the Regimental Institute (PRI) Funds 

On 13 December 2007, the Trustees passed a resolution, subsequently supported by the Charity Commission, to transfer the remaining assets in each fund to a restricted fund within the RECCT. The last separate Trustees’ report and statement of financial affairs for the DUTF was issued by the Chief Royal Engineer’s Committee in 2007. The final funds from the DUTF were expended in 2023 in support of a Corps-wide (Regular & Reserve) ‘flag refresh’ programme although the fund will remain open to receive any subsequent income from disbanded RE units. 

## **ROYAL ENGINEERS NETWORK** 

## **RE HQ Mess** 

In 2023, The Royal Engineers HQ Mess was converted from an Excepted Charity (under the provisions of the Charities (Exception from Registration and Accounts) Regulations 1965 (Statutory Instrument 1965 No.1056)) to a Registered Charity, Charity No 1202413. 

## **RE Establishments and Units** 

As well as receiving an annual grant, Royal Engineer establishments and regular/reserve/hybrid units are invited to seek and justify additional grants to offset the cost of entertainment that they undertake for the benefit of the Corps as opposed to the individual establishment or unit. The Corps Entertainment Committee review each bid and make grant recommendations to Trustees via the Corps Finance Committee. 

## **RE Sports Clubs** 

RHQ RE, through the RE Sports Board, has approved thirty-four Corps Sports & Games Clubs.  Each sport and club are managed by a designated Chair, Manager and Treasurer.  Club Chairs are invited to seek and justify financial support for their planned activities each year through the RE Sports and Games Board. 

## **RISK MANAGEMENT STATEMENT** _What could stop us achieving our aims?_ 

The Trustees have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks. Trustees review risks to which the Charity is exposed at each of their meetings. The basis of the review is a Risk Management and Opportunity[1] Matrix that identifies and defines the risk, its impact and likelihood, and those mitigation measures the Trustees feel need to be applied. The Risk Management Matrix is reviewed annually by the RE Finance Committee and Chief Royal Engineer’s Board to satisfy Trustees that appropriate internal controls are in place and remain effective with systems established to mitigate those risks identified. 

> 1 Risk and opportunity are two sides of the same coin (Yvan Byajee) 

13 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Key Risks** 

The two key risks identified to which the charity could be exposed are shown below: 

|**Risk**|**Consequence**|**Impact**|**Likelihood**<br>**/ Trend**|**Mitigation/Preventative Action**|
|---|---|---|---|---|
|Failure to generate<br>sufficient income to<br>cover planned /<br>known expenditure|• Failure to deliver outputs<br>• Failure to meet charitable<br>objects<br>• Failure to sustainably<br>finance our people<br>• Members withdrawing<br>from RE Days Pay Scheme<br>(RE DPS)<br>• Loss of credibility and<br>reputation<br>• Degradation of existing<br>capital / investments|**Medium**|**Medium**|• Robust financial reserves policy and<br>prudent investment<br>• Monitor Corps manning strength and<br>contributions to RE DPS (Regular and<br>Reserves) to identify trends<br>• Produce accurate monthly FOOs<br>• Link budgets to business planning<br>and Charitable Objects<br>• Promote legacy giving and donations<br>• Ensure max long-term occupancy of<br>Corps property portfolio minimising<br>‘void’ periods|
|Significant reduction<br>in Public funding|• Inability to deliver Chief<br>Royal Engineer’s mandated<br>outputs<br>• Corps’ charities forced to<br>fund additional staff costs<br>• Inability to preserve and<br>maintain Regimental identity<br>and resilience<br>• Over-reliance on Colonels<br>Commandant|**High**|**Medium**|•<br>Improve financial planning and<br>forecasting<br>•<br>Promote sponsorship for Sapper<br>Sport<br>•<br>Monitor financial reserves policy<br>•<br>Continue to promote RE Reserves<br>Days Pay Scheme|



## **Statement of Trustees’ responsibilities** 

The Trustees 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). 

The law applicable to charities in England & Wales 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 charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102) (2019); 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Memorandum of Association. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

14 



**Royal Engineers Central Charitable Trust Trustees’ Report For the year ended 31 December 2025 (continued)** 

## **Approved by the Trustees and signed on behalf of the Trustees** 

## **Colonel GS Cheesman ADC Trustee** 

1 July 2026 

15 



## **Royal Engineers Central Charitable Trust** 

## **Independent Auditor’s report to the Trustees of the Royal Engineers Central Charitable Trust** 

We have audited the financial statements of Royal Engineers Central Charitable Trust (the ‘parent charity) and its subsidiaries (the ‘group’) for the year ended 31 December 2025 which comprise the Consolidated Statement of financial activities, the Consolidated Balance sheet, the Consolidated Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion the financial statements: 

- give a true and fair view of the state of the group's and the parent charity's affairs as at 31 December 2025 and of its income and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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 United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

## **Other information** 

The other information comprises the information included in the Annual report, other than the financial statements and our Auditor’s report thereon.  Our opinion on the financial statements does not cover the other information and 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 statement or our knowledge obtained in the audit or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. 

We have nothing to report in this regard. 

16 



## **Royal Engineers Central Charitable Trust** 

## **Independent Auditor’s report to the Trustees of the Royal Engineers Central Charitable Trust (continued)** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Respective responsibilities of Trustees and auditor** 

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the Trustees are responsible for assessing the 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 charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act 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 ISA’s (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 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: 

## _Capability of the audit in detecting irregularities, including fraud_ 

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. 

Based on our understanding of the charity and sector, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Statement of Recommended Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).  Audit procedures performed by the audit engagement team included: 

- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and 

- Assessment of identified fraud risk factors; and 

- Review of cash expenditure to confirm no evidence of personal benefit; and 

17 



**Royal Engineers Central Charitable Trust** 

## **Independent Auditor’s report to the Trustees of the Royal Engineers Central Charitable Trust (continued)** 

- Challenging assumptions and judgements made by management in its significant accounting estimates; and 

- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and 

- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and 

- Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and 

- Reading minutes of meetings of those charged with governance; and 

- Physical inspection of tangible assets susceptible to fraud or irregularity; and 

- Review of significant and unusual transactions; and 

- Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation. 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.  We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. 

- Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern.  If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.  Our conclusions are based on the audit evidence obtained up to the date of my Auditor’s report.  However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

18 



## **Royal Engineers Central Charitable Trust** 

**Independent Auditor’s report to the Trustees of the Royal Engineers Central Charitable Trust (continued)** 

## **Use of our report** 

This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008.  Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an Auditor’s report and for no other purpose  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed. 

## Kreston Reeves Audit LLP 

Samantha Rouse FCCA DChA for and on behalf of 

Kreston Reeves Audit LLP Statutory Auditor 2[nd] Floor Maritime Place Quayside Chatham Maritime Chatham Kent ME4 4QZ 

Date: 2nd July 2026 

Kreston Reeves Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 

19 



## **Royal Engineers Central Charitable Trust** 

## **Consolidated statement of financial activities For the year ended 31 December 2025** 

|||**Unrestricted**|**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
|||**funds**|**funds**|**funds**|funds|
||**Note**|**2025**|**2025**|**2025**|2024|
|||**£**|**£**|**£**|£|
|**Income and endowments from:**||||||
|Donations and legacies|3|**802,693**|**55,000**|**857,693**|851,469|
|Other trading activities|7, 8|**231,273**|**-**|**231,273**|199,352|
|Investment income|9|**359,565**|**-**|**359,565**|381,571|
|Charitable activities|10|**4,200**|**-**|**4,200**|4,200|
|**Total income**||**1,397,731**|**55,000**|**1,452,731**|1,436,592|
|**Expenditure on:**||||||
|Raising funds|8|**215,127**|**-**|**215,127**|206,380|
|Charitable activities|11|**1,247,566**|**55,000**|**1,302,566**|1,304,143|
|**Total expenditure**||**1,462,693**|**55,000**|**1,517,693**|1,510,523|
|**Net income/(expenditure) before**<br>**gains and losses on investments**||**(64,962)**|**-**|**(64,962)**|(73,931)|
|Net Gain on investments||**537,029**|**-**|**537,029**|347,393|
|Net gains on revaluations of tangible<br>fixed assets||**4,000**|**-**|**4,000**|26,903|
|**Net movement in funds for the year**||**476,067**|**-**|**476,067**|300,365|
|Total funds at 1 January 2025||**10,486,420**|**-**|**10,486,420**|10,186,055|
|**Total funds at 31 December 2025**||**10,962,487**|**-**|**10,962,487**|10,486,420|



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

All activities relate to continuing operations. 

The notes on pages 24 to 40 form part of these financial statements. 

20 



## **Royal Engineers Central Charitable Trust** 

## **Consolidated balance sheet For the year ended 31 December 2025 Charity Number: 1003032** 

|**Consolidated balance sheet**<br>**For the year ended 31 December 2025**<br>**Charity Number: 1003032**||||||
|---|---|---|---|---|---|
||||**2025**||2024|
||**Note**|**£**|**£**|£|£|
|**Fixed assets**||||||
|Tangible assets|23||**205,258**||211,115|
|Investments|24||**8,370,933**||7,825,425|
|Investment properties|25||**1,835,000**||1,316,000|
||||**10,411,191**||9,352,540|
|**Current assets**||||||
|Stocks|26|**12,016**||39,549||
|Debtors|27|**109,280**||247,290||
|Cash at bank and in hand||**481,732**||887,772||
|||**603,028**||1,174,611||
|**Creditors:**amounts falling due within one<br>year|28|**(51,731)**||(40,731)||
|**Net current assets**|||**551,297**||1,133,880|
|**Net assets**|||**10,962,488**||10,486,420|
|**Charity Funds**||||||
|Unrestricted funds|29||**10,962,488**||10,486,420|
|**Total funds**|||**10,962,488**||10,486,420|



The financial statements were approved by the Trustees on     1 July 2026  and signed on their behalf, by: 


**Major General P J Rowell MBE Colonel G S Cheesman ADC Trustee Trustee** 

The notes on pages 24 to 40 form part of these financial statements. 

21 



## **Royal Engineers Central Charitable Trust** 

## **Charity balance sheet For the year ended 31 December 2025 Charity Number: 1003032** 

|**Charity balance sheet**<br>**For the year ended 31 December 2025**<br>**Charity Number: 1003032**||||||
|---|---|---|---|---|---|
||||**2025**||2024|
||**Note**|**£**|**£**|£|£|
|**Fixed assets**||||||
|Tangible assets|23||**205,258**||211,115|
|Investments|24||**8,370,933**||7,825,425|
|Investment properties|25||**1,835,000**||1,316,000|
||||**10,411,191**||9,352,540|
|**Current assets**||||||
|Debtors|27|**109,280**||271,468||
|Cash at bank and in hand||**460,752**||883,922||
|||**570,032**||1,155,390||
|**Creditors:**amounts falling due within one<br>year|28|**(43,292)**||(33,892)||
|**Net current assets**|||**526,740**||1,121,498|
|**Net assets**|||**10,937,931**||10,474,038|
|**Charity Funds**||||||
|Restricted funds|||**-**||-|
|Unrestricted funds|||**10,937,931**||10,474,038|
|**Total funds**|||**10,937,931**||10,474,038|



The financial statements were approved by the Trustees on     1 July 2026  and signed on their behalf, by: 


**Major General P J Rowell MBE Trustee** 

**Colonel GS Cheesman  ADC Trustee** 

The notes on pages 23 to 37 form part of these financial statements. 

22 



## **Royal Engineers Central Charitable Trust** 

## **Consolidated Statement of Cash Flows For the year ended 31 December 2025** 

||**Note**|**Note**|**2025**|**2024**|
|---|---|---|---|---|
||||**£**|**£**|
|**Net cash used in operating activities**|33||**(263,425)**|(570,349)|
|**Cash flows from investing activities**|||||
|Interest and dividends|||**293,469**|331,675|
|Income from Investment Property|||**66,096**|49,896|
|Investment property purchase|||**(515,000)**||
|Investment Disposal|||**2,029,244**|500,000|
|Investment additions|||**(2,016,424)**||
|**Cash provided by investing activities**|||**(142,615)**|881,571|
|**Cash used in financing activities**|||||
|(Decrease)/Increase in cash and cash|||||
|equivalents in the year|||**(406,040)**|**311,222**|
|Cash and cash equivalents at the beginning of the year|||**887,772**|576,550|
|**Total cash and cash equivalents at the end of the year**|||**481,732**|887,772|
|**Analysis of changes in net debt**|||||
||**At**|**1 Jan**||**At 31 Dec**|
|||**2025**|**Cashflows**|**2025**|
|||**£**|**£**|**£**|
|**Cash and cash equivalents**|||||
|Cash|**887,772**||**(406,040)**|**481,732**|



23 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **1 General administrative information** 

Royal Engineers Central Charitable Trust is an unincorporated charity in England & Wales with the registration number 1003032.  The address of the registered office is Headquarters Royal Engineers, Brompton Barracks, Chatham, Kent, ME4 4UG.  The Charity's principal objectives continued to be: to promote the efficiency of the Armed Forces and in particular The Corps of Royal Engineers; to promote the activities of the Royal Engineers Association and the Institution of Royal Engineers, as laid down in their respective Charters; to foster an esprit de corps in the Royal Engineers; and to relieve either generally or individually necessitous persons being members or former members of the Royal Engineers or the dependants of such persons. 

## **2 Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with 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). 

Royal Engineers Central Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). 

The financial statements are presented in UK sterling, which is the Charity's financial currency, and rounded to the nearest pound. 

No separate SOFA has been presented for the charity alone. 

## **2.2 Preparation of the accounts on a going concern basis** 

The Trustees assess whether the use of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. 

## **2.3 Fund accounting** 

The Charity maintains the following types of funds: 

Designated funds represent amounts which have been put aside out of unrestricted funds at the discretion of the Trustees to meet specific purposes. 

General unrestricted funds represent unrestricted funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the Trust. Such funds may be held in order to finance both working capital and capital investment. 

Restricted fund for DUTF, which operates under a separate Trust Deed dated 8 March 1957. 

## **2.4 Turnover** 

Turnover is recognised when counter goods from either the shop or foyer trading are sold or dispatched and invoiced to customers via the company's mail order service. 

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

24 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **2 Accounting policies (continued)** 

## **2.5 Basis of consolidation** 

The financial statements consolidate the accounts of Royal Engineers Central Charitable Trust and its subsidiary undertaking. 

## **2.6 Income** 

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

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

The cost of donated services is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable, This amount is matched by donated expenditure, apportioned against charitable activities and support. 

## **2.7 Expenditure** 

Liabilities are recognised as resources as soon as there is an obligation to committing the charity to the expenditure.  All expenditure is accounted for on an accruals basis. 

Grants payable to third parties in the furtherance of the charitable objectives of the Trust are always authorised by the Trustees. 

## **2.8 Tangible fixed assets and depreciation** 

All assets costing more than £1,000 are capitalised. 

Tangible fixed assets are stated at cost or valuation less depreciation.  Depreciation is provided at rates calculated to write off  the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: 

Fixtures and fittings                                    10% straight line General Property                                        10% straight line Computers                                                 20% straight line 

## **2.9 Investment properties** 

Investment properties are being long-term assets, which generate income.  The are included at market value in accordance with the Statement of Recommended Practice on accounting by charities.  Please see note 26 to the financial statements. 

## **2.10 Investments** 

Investments held as fixed assets are included in the accounts at valuation based on their bid price at the balance sheet date.  The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year. 

25 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **2 Accounting policies (continued)** 

## **2.11 Stocks** 

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

## **2.12 Debtors** 

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

## **2.13 Cash at bank and in hand** 

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

## **2.14 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 

## **2.15 Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.  Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.16 Pensions** 

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. 

## **2.17 Tender Policy** 

Trustees have a tender policy that covers expenditure: a.  Between £2,500 and £5,000 

b.  Between £5,000 and £10,000 

c.  Over £10,000 

## **2.18 Taxation** 

Royal Engineers Central Charitable Trust is a registered charity and accordingly no provision is considered necessary for taxation. 

## **2.19 Critical accounting estimates and areas of judgement** 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  The Charity does not currently have any significant accounting estimates or areas of judgement. 

26 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**£**<br>**£**<br>**£**<br>£<br>**3 Donations and legacies**<br>Subscriptions                              (Note 4)<br>**500,580**<br>**-**<br>**500,580**<br>468,333<br>Donations                                   (Note 5)<br>**64,676**<br>**55,000**<br>**119,676**<br>111,608<br>Legacies<br>**-**<br>**-**<br>**-**<br>150<br>Donated facilities and staff costs<br>**237,437**<br>**-**<br>**237,437**<br>271,378<br>**802,693**<br>**55,000**<br>**857,693**<br>851,469<br>All Income from Donations and Legacies was unrestricted in 2025 and 2024.<br>**4 Subscriptions**<br>Serving officers' subscriptions<br>**91,240**<br>**-**<br>**91,240**<br>87,696<br>Retired officers' subscriptions<br>**14,933**<br>**-**<br>**14,933**<br>11,291<br>Soldiers' subscriptions<br>**355,424**<br>**-**<br>**355,424**<br>333,221<br>Tax refund - Retired Officers & Reserves<br>**2,445**<br>**-**<br>**2,445**<br>1,520<br>Reserves DPS<br>**8,681**<br>**-**<br>**8,681**<br>8,602<br>WOs' & SNCOs' (5% subscription)<br>**9,892**<br>**-**<br>**9,892**<br>9,693<br>The Sapper Magazine<br>**17,965**<br>**-**<br>**17,965**<br>16,310<br>**500,580**<br>**-**<br>**500,580**<br>468,333<br>**5 Donations & Grants**<br>General<br>**2,513**<br>**-**<br>**2,513**<br>3,033<br>WOs' & Sgts' Silver Fund<br>**2,163**<br>**-**<br>**2,163**<br>3,575<br>Comms Hub<br>**60,000**<br>**-**<br>**60,000**<br>60,000<br>ASCB Grant<br>**-**<br>**55,000**<br>**55,000**<br>45,000<br>Legacies<br>**-**<br>-<br>**64,676**<br>**55,000**<br>**119,676**<br>111,608<br>**2025**<br>2024<br>**£**<br>£<br>**6 Donated services and facilities**<br>Donated staff time<br>**60,739**<br>55,408<br>MOD Staff Salaries<br>**167,288**<br>206,606<br>**9,410**<br>9,364<br>**237,437**<br>271,378<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>In 2025, donated services and facilities consisted of:<br>Donated facilities - office premises and utilities|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**£**<br>**£**<br>**£**<br>£<br>**500,580**<br>**-**<br>**500,580**<br>468,333<br>**64,676**<br>**55,000**<br>**119,676**<br>111,608<br>**-**<br>**-**<br>**-**<br>150<br>**237,437**<br>**-**<br>**237,437**<br>271,378<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**£**<br>**£**<br>**£**<br>£<br>**500,580**<br>**-**<br>**500,580**<br>468,333<br>**64,676**<br>**55,000**<br>**119,676**<br>111,608<br>**-**<br>**-**<br>**-**<br>150<br>**237,437**<br>**-**<br>**237,437**<br>271,378<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**|
|---|---|---|
||**802,693**<br>**55,000**<br>**857,693**<br>851,469||
||unrestricted in 2025 and 2024.<br>**91,240**<br>**-**<br>**91,240**<br>87,696<br>**14,933**<br>**-**<br>**14,933**<br>11,291<br>**355,424**<br>**-**<br>**355,424**<br>333,221<br>**2,445**<br>**-**<br>**2,445**<br>1,520<br>**8,681**<br>**-**<br>**8,681**<br>8,602<br>**9,892**<br>**-**<br>**9,892**<br>9,693<br>**17,965**<br>**-**<br>**17,965**<br>16,310||
||**500,580**<br>**-**|**500,580**<br>468,333|
||**2,513**<br>**-**<br>**2,163**<br>**-**<br>**60,000**<br>**-**<br>**-**<br>**55,000**<br>**-**|**2,513**<br>3,033<br>**2,163**<br>3,575<br>**60,000**<br>60,000<br>**55,000**<br>45,000<br>-|
||**64,676**<br>**55,000**|**119,676**<br>111,608|
|||**2025**<br>2024<br>**£**<br>£<br>**60,739**<br>55,408<br>**167,288**<br>206,606<br>**9,410**<br>9,364|
|||**237,437**<br>271,378|



27 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2025** 

|**7 Other trading activities - RECCT**<br>Advertisements<br>Miscellaneous & graphic sales<br>Project Funding<br>**8 Other trading activities - RECE Ltd**<br>**Income**<br>RECE Ltd Sales<br>**Expenditure**<br>Cost of sales<br>Staff costs<br>Postage & telephone<br>Printing & stationery<br>IT costs<br>Miscellaneous<br>Cardnet terminal services<br>Bank charges<br>Professional Fees<br>Insurance<br>Audit fee|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**funds**<br>funds<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**1,700**<br>**-**<br>**1,700**<br>2,250<br>**98**<br>**-**<br>**98**<br>12<br>**2,173**<br>**-**<br>**2,173**<br>2,031|
|---|---|
||**3,971**<br>**-**<br>**3,971**<br>4,293|
||**£**<br>**£**<br>**£**<br>£<br>**227,302**<br>**227,302**<br>195,059|
||**124,349**<br>**124,349**<br>116,567<br>**64,043**<br>**64,043**<br>60,259<br>**16,815**<br>**16,815**<br>18,101<br>**545**<br>**545**<br>1,109<br>**3,375**<br>**3,375**<br>3,615<br>**309**<br>**309**<br>123<br>**3,595**<br>**3,595**<br>4,392<br>**239**<br>**239**<br>231<br>**142**<br>**142**<br>104<br>**1,354**<br>**1,354**<br>1,596<br>**361**<br>**361**<br>283|
||**215,127**<br>**-**<br>**215,127**<br>206,380|
||12,175<br>**-**<br>12,175<br>(11,321)|



All income and expenditure on trading activities was unrestricted in 2025 and 2024. 

|**9 Investment income**<br>Dividends<br>Lloyds bank interest<br>Kitchener & Ebbsfleet Properties|**£**<br>**£**<br>**£**<br>£<br>**289,576**<br>**-**<br>**289,576**<br>326,923<br>**3,893**<br>**-**<br>**3,893**<br>4,752<br>**66,096**<br>**-**<br>**66,096**<br>49,896|
|---|---|
|||
||**359,565**<br>**-**<br>**359,565**<br>381,571|



Income from investments was £359,565 (2024: £381,571) of which £359,565 was unrestricted (2024: £381,571) and £Nil was restricted (2024: Nil). 

## **10 Income from charitable activities** 

|Burgoyne House|**£**<br>**£**<br>**£**<br>£<br>**4,200**<br>**-**<br>**4,200**<br>4,200|
|---|---|



All income from charitable activities was unrestricted in 2025 and 2024. 

28 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**11 Analysis of expenditure by activities**<br>Burgoyne House (Note 12)<br>Sports & Games (Note 13)<br>Heritage (Note 14)<br>Esprit de Corps (Note 15)<br>RE HQ Mess (Note 16)<br>Comms Hub (Note 17)<br>WOs' & Sgts' (Note 18)<br>RE Corps Enterprises (Note 19)<br>Day’s Pay Scheme (Note 20)<br>Donated facilities and staff costs|**Direct**<br>**costs**<br>**Restricted**<br>**Funds**<br>**Support**<br>**costs**<br>**Total**<br>**funds**<br>Total funds<br>**2025**<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**£**<br>**£**<br>**£**<br>£<br>**1,012**<br>**-**<br>**-**<br>**1,012**<br>1,484<br>**413,375**<br>**55,000**<br>**55,290**<br>**523,665**<br>432,623<br>**63,000**<br>**-**<br>**-**<br>**63,000**<br>50,000<br>**173,388**<br>**-**<br>**29,459**<br>**202,847**<br>263,948<br>**2,630**<br>**-**<br>**-**<br>**2,630**<br>30,911<br>**71,210**<br>**-**<br>**141,448**<br>**212,658**<br>212,146<br>**5,913**<br>**-**<br>**17,925**<br>**23,838**<br>14,824<br>**-**<br>**-**<br>**15,326**<br>**15,326**<br>6,866<br>**-**<br>**-**<br>**20,153**<br>**20,153**<br>19,964<br>**-**<br>**-**<br>**237,437**<br>**237,437**<br>271,377|
|---|---|
||**730,528**<br>**55,000**<br>**517,038**<br>**1,302,566**<br>1,304,143|



Expenditure on charitable activities was £1,032,566 (2024: £1,304,143) of which £1,247,566 was unrestricted (2024: £1,304,143) and £55,000 was restricted (2024: £Nil). 

|**12 Burgoyne House**<br>**Direct costs:**<br>General Maintenance<br>Land Rent<br>Gas contract<br>**13 Sports & Games**<br>**Direct costs:**<br>RE Sports Board<br>Refund sports grant from previous year<br>**Support costs:**<br>Audit Fee<br>Insurance<br>Administration<br>IT Support<br>Depreciation<br>Staff costs<br>**14 Heritage**<br>**Direct costs:**<br>RE Museum<br>Corps Historian|**£**<br>£<br>**552**<br>1,065<br>**-**<br>21<br>**460**<br>398|
|---|---|
||**1,012**<br>1,484|
||**£**<br>£<br>**480,052**<br>383,242<br>**(11,677)**<br>(3,047)|
||**468,375**<br>380,195|
||**1,565**<br>1,364<br>**424**<br>469<br>**4,298**<br>2,041<br>**1,371**<br>960<br>**731**<br>1,246<br>**46,901**<br>46,348|
||**55,290**<br>52,428|
|||
||**523,665**<br>432,623|
||**£**<br>£<br>**60,000**<br>50,000<br>**3,000**<br>-|
||**63,000**<br>50,000|



29 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**15 Esprit de Corps**<br>**Direct costs:**<br>Donations and presentations<br>Other Corps events<br>Corps entertainment<br>Colonels Comdt<br>Clive Beckett Legacy<br>Senior Soldier Uniform Grant<br>Regimental Activity Grants<br>Refund of previous years' grant<br>Project Funding<br>**Support costs:**<br>Audit fee<br>Insurance<br>Administration<br>IT Support<br>Depreciation<br>Staff costs<br>**16 HQ Mess**<br>**Direct costs:**<br>Mess Secretary salary|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>2024<br>**£**<br>£<br>**2,063**<br>496<br>**11,821**<br>71,708<br>**57,173**<br>52,254<br>**1,449**<br>-<br>**8,985**<br>8,187<br>**16,673**<br>7,008<br>**81,942**<br>101,784<br>**(23,707)**<br>(6,186)<br>**16,989**<br>-|
|---|---|
||**173,388**235,251|
||**3,131**<br>2,727<br>**848**<br>938<br>**8,597**<br>4,082<br>**2,742**<br>1,920<br>**1,463**<br>2,493<br>**12,678**<br>16,537|
||**29,459**28,697|
|||
||**202,847**263,948|
|||
||**2,630** 30,911|



30 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**tes to the financial statements**<br>**r the year ended 31 December 2025**||
|---|---|
|**17 Comms Hub**<br>**Direct costs:**<br>Printing & distribution<br>Miscellaneous<br>**Support costs:**<br>Audit fee<br>Insurance<br>Administration<br>IT support<br>Depreciation<br>Staff costs<br>**18 WOs' & Sgts' Fund**<br>**Direct costs:**<br>Individual E2 Grants<br>Corps Dinner Nights<br>Unit WOs' & Sgts' Mess Nights<br>**Support costs:**<br>Audit Fee<br>Insurance<br>Administration<br>Miscellaneous<br>IT support<br>Staff costs<br>**19 RE Corps Enterprises Ltd**<br>**Support costs:**<br>Staff costs|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>2024<br>**68,268**<br>70,567<br>**2,942**<br>302|
||**71,210**<br>70,869|
||**1,565**<br>1,364<br>**424**<br>469<br>**5,386**<br>3,653<br>**7,465**<br>8,067<br>**2,931**<br>2,931<br>**123,677**<br>124,793|
||**141,448**<br>141,277|
|||
||**212,658**<br>212,146|
||**1,150**<br>600<br>**4,763**<br>5,844<br>**-**<br>3,000|
||**5,913**<br>9,444|
||**1,565**<br>1,364<br>**424**<br>469<br>**4,298**<br>2,041<br>**10,105**<br>135<br>**1,371**<br>960<br>**162**<br>411|
||**17,925**<br>5,380|
|||
||**23,838**<br>14,824|
||**15,326**<br>6,866|
||**15,326**<br>6,866|



31 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**tes to the financial statements**<br>**r the year ended 31 December 2025**||
|---|---|
|**20 Day's Pay Scheme**<br>**Support costs:**<br>Audit Fee<br>Insurance<br>Administration<br>IT support<br>Depreciation<br>Staff costs<br>**21 Net Income / (Expenditure)**<br>This is stated after charging:<br>Depreciation of tangible fixed assets:<br>-owned by the charitable group<br>Auditor's remuneration|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>2024<br>**1,565**<br>1,364<br>**424**<br>469<br>**4,298**<br>2,041<br>**1,371**<br>960<br>**732**<br>1,246<br>**11,763**<br>13,884|
||**20,153**<br>19,964|
||**£**<br>£<br>**(5,857)**<br>(7,917)<br>**9,392**<br>8,182|



During the year, no Trustees received any remuneration (2024: £Nil). During the year, no Trustees received any benefits in kind (2024: £Nil). During the year, no Trustees received any re-imbursement of expenses (2024: £Nil). 

32 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|||**Total**|Total|
|---|---|---|---|
|||**funds**|funds|
|||**2025**|2024|
|**22 **|**Staff costs**|**£**|£|
||Staff costs were as follows:|||
||Wages and salaries|**188,259**|209,201|
||Social security costs|**10,861**|14,260|
||Pension costs|**14,018**|16,289|
|||**213,137**|239,750|
||The average number of persons employed by the Charity during the year was as follows:|||
|||**No.**<br>|No.|
||Management and administration of the charity|**12**|16|
||RECE Ltd|**5**|5|
|||**17**|21|
||The average headcount expressed as full-time equivalents was:|||
|||**No.**<br>|No.|
||Management and administration of the charity|**7**|9|
||RECE Ltd|**2**|2|
|||**9**|11|



The total employment benefits including employer pension contributions of the key management personnel were £21,674 (2024: £52,617). 

No employee received renumeration amounting to more than £60,000 in either year. 

## **23 Tangible fixed assets** 

|**Tangible fixed assets**||||||
|---|---|---|---|---|---|
||**Shop fixtures,**|||||
||**fittings and**|**General WOs' & Sgts'**||**Comms Hub**||
||**equipment**|**fund**|**fund**|**property**|**Total**|
|**Group**|**£**|**£**|**£**|**£**|**£**|
|**Cost or valuation**||||||
|At 1 January 2025|**-**|**48,641**|**192,442**|**14,976**|**256,059**|
|Disposals|**-**|**-**|**-**|**-**|**-**|
|Re-Valuation|**-**|**-**|**-**|**-**|**-**|
|At 31 December 2025|**-**|**48,641**|**192,442**|**14,976**|**256,059**|
|**Depreciation**||||||
|At 1 January 2025|**-**|**33,978**|**-**|**10,966**|**44,944**|
|Charge for the year||**2,926**||**2,931**|**5,857**|
|Disposals||||||
|At 31 December 2025|**-**|**36,904**|**-**|**13,897**|**50,801**|
|**Net book value**||||||
|At 31 December 2025|**-**|**11,737**|**192,442**|**1,079**|**205,258**|
|At 31 December 2024|-|14,663|192,442|4,010|211,115|



33 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **23 Tangible fixed assets (continued)** 

|**Charity**<br>**Cost or valuation**<br>At 1 January 2025<br>Adjustments<br>At 31 December 2025<br>**Depreciation**<br>At 1 January 2025<br>Charge for the year<br>Disposals<br>At 31 December 2025<br>**Net book value**<br>At 31 December 2025<br>At 31 December 2024<br>**24 Fixed asset investments**<br>**Group & Charity**<br>**Market value**<br>At 1 January 2025<br>Investment Sold<br>Investments Purchased<br>Revaluations<br>Cash movements<br>At 31 December 2025|**General WOs' & Sgts' Comms Hub**<br>**fund**<br>**fund**<br>**property**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**48,641**<br>**192,442**<br>**14,976**<br>**256,059**<br>**-**<br>**-**<br>**-**<br>**-**|**General WOs' & Sgts' Comms Hub**<br>**fund**<br>**fund**<br>**property**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**48,641**<br>**192,442**<br>**14,976**<br>**256,059**<br>**-**<br>**-**<br>**-**<br>**-**|
|---|---|---|
||**48,641**<br>**192,442**<br>**14,976**<br>**256,059**||
||**33,978**<br>**-**<br>**10,966**<br>**44,944**<br>**2,926**<br>**2,931**<br>**5,857**||
||**36,904**<br>**-**<br>**13,897**<br>**50,801**||
||||
||**11,737**<br>**192,442**<br>**1,079**<br>**205,258**||
||||
||14,663<br>192,442<br>4,010<br>211,115||
|||**Listed**<br>**securities**<br>**£**<br>**£**<br>**£**<br>**7,825,425**<br>**7,825,425**<br>**(2,029,244)**<br>**(2,029,244)**<br>**2,016,424**<br>**2,016,424**<br>**537,029**<br>**537,029**<br>**21,299**<br>**21,299**<br>**Capital**<br>**holding**<br>**account**<br>**Total**|
|||**8,349,634**<br>**21,299**<br>**8,370,933**|



34 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **24 Fixed asset investments (Cont)** 

|**Historical cost**<br>Group & charity investments at market value comprise:<br>Listed investments<br>All the fixed asset investments are held in the UK.|**7,884,032**<br>**2025**<br>2024<br>**£**<br>£<br>**8,349,634**<br>**7,825,425**|
|---|---|
|||



## **Material Investments** 

Invested funds were held in the BLK Armed Forces Charities Growth & Income Fund, managed by Blackrock Investment Managers Ltd. A discretionary portfolio mananged by Trinity Bridge, and a private equity portfolio with HG capital Trust, managed on a execution only basis by Tinity Bridge 

## **25 Investment properties** 

|**Group & Charity**<br>**Valuation**<br>At 1 January 2025<br>House Purchase<br>Re-valuation<br>At 31 December 2025<br>**Support Costs**<br>Misc Property Exp<br>Management Fees<br>Letting Agent Fees<br>**Comprising**<br>Cost|**Freehold**<br>**Investment**<br>**Property**<br>**£**<br>**1,316,000**<br>**515,000**<br>**4,000**|
|---|---|
||**1,835,000**|
||**4,368**<br>**1,131**<br>**10,483**|
||**15,982**<br>**1,831,000**|



During the financial year the Charity incurred costs amounting to £4,368 in the development of the properties held in Chatham & Ebsfleet 

The investment properties are valued on an open market value for existing use basis. 

35 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **26 Stocks:** 

Finished goods and goods for resale 

## **27 Debtors:** 

Amounts owed by group undertakings Other debtors 

|**Group**||**Charity**|**Charity**|
|---|---|---|---|
|**2025**|2024|**2025**|2024|
|**£**|£|**£**|£|
|**12,016**|39,549|**-**|-|
|**Group**||**Charity**||
|**2025**|2024|**2025**|2024|
|**£**|£|**£**|£|
|**-**|-|**-**|25,155|
|**109,280**|247,290|**109,280**|246,313|
|**109,280**|247,290|**109,280**|271,468|



## **28 Creditors: Amounts falling due within one year** 

Other creditors 

|**Group**||**Charity**||
|---|---|---|---|
|**2025**|2024|**2025**|2024|
|**£**|£|**£**|£|
|**51,731**|40,731|**43,292**|33,892|



36 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**29 Statement of funds**<br>**Current Year**<br>**Designated funds**<br>Comms Hub<br>Project Funding<br>**General funds**<br>RE Central Charitable<br>Trust<br>WOs' & Sgts' Fund<br>WOs' & Sgts' Silver Fund<br>RECE Ltd<br>Total Unrestricted funds<br>**Restricted funds**<br>ASCB Grant<br>Total of funds<br>Prior Year<br>Designated funds<br>Comms Hub<br>Project Fund<br>General funds<br>RE Central Charitable<br>Trust<br>WOs' & Sgts' Fund<br>RECE Ltd<br>Total Unrestricted funds<br>Restricted funds<br>Total of funds|**Brought**<br>**Forward**<br>**Income Expenditure**<br>**Transfers**<br>**in/out**<br>**Gains/**<br>**(Losses)**<br>**Carried**<br>**Forward**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**4,010**<br>**79,763**<br>**(212,658)**<br>**129,623**<br>**-**<br>**738**<br>**49,004**<br>**2,173**<br>**-**<br>**-**<br>**-**<br>**51,177**|
|---|---|
||**53,014**<br>**81,936**<br>**(212,658)**<br>**129,623**<br>**-**<br>**51,915**|
||**10,167,341**<br>**1,076,438**<br>**(1,018,891)**<br>**(129,623)**<br>**541,029**<br>**10,636,294**<br>**253,683**<br>**9,892**<br>**(16,018)**<br>**(10,837)**<br>**-**<br>**236,720**<br>**-**<br>**2,163**<br>**-**<br>**10,837**<br>**-**<br>**13,000**<br>**12,383**<br>**227,302**<br>**(215,126)**<br>**-**<br>**-**<br>**24,559**|
||**10,433,407**<br>**1,315,795**<br>**(1,250,035)**<br>**(129,623)**<br>**541,029**<br>**10,910,573**|
||**10,486,421**<br>**1,397,731**<br>**(1,462,693)**<br>**-**<br>**541,029**<br>**10,962,488**|
||**-**<br>**55,000**<br>**(55,000)**<br>**-**<br>**-**<br>**-**|
||**10,486,421**<br>**1,452,731**<br>**(1,517,693)**<br>**-**<br>**541,029**<br>**10,962,488**|
||Brought<br>Forward<br>Income<br>Expenditure<br>Transfers<br>in/out<br>Gains/<br>(Losses)<br>Carried<br>Forward<br>£<br>£<br>£<br>£<br>£<br>£<br>5,642<br>78,572<br>(212,146)<br>131,942<br>-<br>4,010<br>46,973<br>2,031<br>-<br>-<br>-<br>49,004|
||52,615<br>80,603<br>(212,146)<br>131,942<br>-<br>53,014|
||9,865,646<br>1,147,662<br>(1,082,418)<br>(131,942)<br>368,393<br>10,167,341<br>244,091<br>13,268<br>(9,579)<br>-<br>5,903<br>253,683<br>23,619<br>195,059<br>(205,959)<br>-<br>-<br>12,719|
||10,133,440<br>1,355,989<br>(1,298,377)<br>(131,942)<br>374,296<br>10,433,743|
|||
||10,186,055<br>1,436,592<br>(1,510,523)<br>-<br>374,296<br>10,486,757|
||10,186,055<br>1,436,592<br>(1,510,523)<br>-<br>374,296<br>10,486,420|



37 



## **Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

|**30 Analysis of net assets between funds**<br>**Current Year**<br>Tangible fixed assets<br>Fixed asset investments<br>Investment properties<br>Current assets<br>Creditors due within<br>one year<br>Analysis of net assets between funds<br>Prior Year<br>Tangible fixed assets<br>Fixed asset investments<br>Investment properties<br>Current assets<br>Creditors due within<br>one year|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**Funds**<br>**Funds**<br>**funds**<br>funds<br>**2025**<br>**2025**<br>**2025**<br>2024<br>**£**<br>**£**<br>**£**<br>£<br>**205,258                  -           205,258**211,115<br>**8,370,933                  -        8,370,933**7,825,425<br>**1,835,000                  -        1,835,000**1,316,000<br>**603,028                  -           603,028**1,174,611<br>**(51,731)**<br>**-            (51,731)** (40,731)|
|---|---|
||**10,962,488-      10,962,488**10,486,420|
||Unrestricted<br>Restricted<br>Total<br>Total<br>Funds<br>Funds<br>funds<br>funds<br>2024<br>2024<br>2024<br>2023<br>£<br>£<br>£<br>£<br>211,115                  -           211,115            213,129<br>7,825,425                  -        7,825,425         7,978,032<br>1,316,000                  -        1,316,000         1,295,000<br>1,174,611                  -        1,174,611         7,610,192<br>(40,731)<br>-            (40,731) (61,299)|
||10,486,420-10,486,420       17,035,055|



38 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements** 

## **For the year ended 31 December 2025** 

## **31 Pension commitments** 

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £14,017 (2024: £16,289). 

## **32 Principal subsidiaries** 

**Percentage Company name Country Shareholding** United Royal Engineers Corps Enterprises 100 Kingdom 

## **33 Reconciliation of net movement in funds to net cash flow from operating activities** 

|Net movement in funds<br>Add back depreciation charge<br>Deduct interest income shown in investing activities<br>Deduct gains / add back losses on investments<br>Deduct Gain on revaluation of tangible fixed assets<br>Deduct gain on revaluation of investment property<br>Decrease (increase) in stock<br>Decrease (increase) in debtors<br>Increase (decrease) in creditors<br>Deduct Income from Investment property<br>Investment cash movement<br>**Net cash used in operating activities**|**Total**<br>Total<br>**funds**<br>funds<br>**2025**<br>2024<br>**£**<br>£<br>**476,067**<br>300,365<br>**5,857**<br>7,917<br>**(293,469)**<br>(331,675)<br>**(537,029)**<br>(347,393)<br>**-**<br>(5,903)<br>**(4,000)**<br>(21,000)<br>**27,533**<br>15,624<br>**138,011**<br>(117,820)<br>**11,000**<br>(20,568)<br>**(66,096)**<br>(49,896)<br>**(21,299)**<br>-|
|---|---|
||**(263,425)**<br>(570,349)|



39 



**Royal Engineers Central Charitable Trust** 

## **Notes to the financial statements For the year ended 31 December 2025** 

## **34 Related party transactions** 

Brigadier James Webster and Colonel Richard Bouke Hawkins MBE ADC, both Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of Royal Engineers Headquarter Mess (RE HQ Mess) for which transactions have taken place during the year. RECCT collected subscriptions income on behalf of RE HQ Mess totalling £166,685 which was transferred during the year (2024: £160,944). In addition, £6,587 of other reimbursements were made in relation to sundry donations, grants and gift aid (2024:£2,351). There were also reimbursements to RECCT from RE HQ Mess of £62,167 during the year (2024: £73,849), relating to recharges of staff salaries and various admin charges. As of 31 December 2025 no balance was owed from RECCT (2024 £nil) and £634 was owed to RECCT (2024: £23). 

Colonel Richard Bouke Hawkins MBE ADC, CSM Spencer Eardley and Colonel Alastair Cooper QVRM TD, all Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of Royal Engineers Vocational Education and Training Trust (REVETT) for which transactions have taken place during the year. RECCT paid  £43 relating to sundry recharges and donations (2024: £149), was transferred during the year. There were also reimbursements to RECCT from REVETT of £50,005 during the year relating to recharges of staff salaries and various admin charges (2024: £49,411). As of 31 December 2025 no balance was owed from RECCT (2024: £nil), and a balance of £800 was owed to RECCT (2024: £23). 

Brigadier James Webster, Colonel Richard Bouke Hawkins MBE ADC, Colonel Alastair Cooper QVRM TD, Brigadier Simon John Carvel and Major General David W Southall CBE, Maj.Gen. N Cavanagh CB, and WOI1 Spencer Eeardley  are Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of the Institution of Royal Engineers (Inst RE) for which transactions have taken place during the year. During the year RECCT collected subscription income of behalf of the Institution of Royal Engineers totalling £459,466 (2024: £443,079) and gift aid of £37,109 (2024: £16,983) which was transferred during the year. A further £2,465 of other donations and sundry charges were also transferred (2024: £276). As of 31 December 2025 no balance was owed from RECCT (2024: £nil). 

During the year, the Institution of Royal Engineers also reimbursed £85,381 to RECCT for recharges relating to salaries and pensions, postage, and other admin costs (2024: £80,107). As of 31 December 2025 no balance was owed to RECCT (2024 £23). 

Colonel Richard Bouke Hawkins MBE ADC, and Major General David W Southall CBE, Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of the Royal Engineers Museum for which transactions have taken place during the year. During the year RECCT paid The Royal Engineers Museum grants totalling £60,000 (2024: £50,000). In addition RECCT collected subscription income on behalf of the Royal Engineers Museum totalling £11,146 (2024: £10,955) and reimbursed admin charges of £4,513 (2024: £628) which was transferred during the year. As of 31 December 2025 no balance was owed from RECCT (2024: £nil). 

The Royal Engineers Museum also paid over £72,265 to RECCT during the year in relation to recharges for salaries and pension costs, as well as admin recharges (2024: £72,903). As of 31 December 2025 no balances were owed to RECCT (2024: £nil). 

Colonel Richard Bouke Hawkins MBE ADC, Maj. Gen. Alastair Dickinson CBE and CSM Spencer Eardley, both Trustees of the Royal Engineers Central Charitable Trust (RECCT) are also Trustees of The Royal Engineers Association (REA) for which transactions have taken place during the year. RECCT collected subscription income on behalf of REA totalling £454,625 which was transferred to the REA during the year (2024: £427,394). A further £6,023 of other reimbursements were made to the REA in relation to sundry recharges, and gift aid (2024: £1,865). As of 31 December 2025, no balance was owed from RECCT (2024: £nil). 

The REA also paid £118,838 to RECCT during the year in relation to recharges for salaries and pensions, grants and admin recharges (2024: £121,916). As of 31 December 2025 £3,503 was owed to RECCT (2024: £nil). 

40