Charity registration number 1022427 Company registration number 00838325 (England and Wales) THE HAMMOND SCHOOL LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024
THE HAMMOND SCHOOL LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees K H Cowell J M Devoy C E Penny D A Silcock A Sutton P J Edgington A F McGladrigan Mr T O Matthews (Appointed 26 February 2024) Secretary J M Devoy Principal J Roscoe Charity number 1022427 Company number 00838325 Registered office Hoole Bank House Manning5 Lane Chester CH2 4ES Audltor Champion Accountants LLP 2nd Flwr Refuge House 33-37 Watergate Row Chester CH12LE
THE HAMMOND SCHOOL LIMITED CONTENTS Page Trustees, report Independent auditorfs report 12-14 Statement of financial activities 15 Balance sheet 16 statement of cash flows 17 Notes to the financial statemants 18-30
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 JULY2024 The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's goveming document. the Companies Act 2006 and "Accountlng and Reporting by Charilies: 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)" (as amended for accounting periods Commencing from 1 January 2019). We present the Annual Report and Accounts for the Academic year 202312024. The directors, report is included as part of the annual accounts as required by company law. The accounts were approved by the board al the Annual General Meeting on 5 December 2024. Dlrectors, Report This has been an outstanding year of growth and consolidation. The incredible work of our leadership team in conjunclion with expert panel members SUPPOrted by detailed research by our course leaders has ensured that with have a curriculum that meets the demands of an ever-evolving creative industry. This equips our students and prepares them with skills to deliver in the competitive world of work beyond their time at The Hammond. All the work over the recent years and the changes introduced in this academic year were tested in March 2024 when The Hammond School underwent a rigorous Ofsted inspection. The Hammond achieved an Outstanding grade across all four categories. On behalf of the board I have congralulated the senior leadership team on this richly deserved outcome recognising Ihe hard work determination and vision of a greal team. The Inspectors made several positive references to the culture of the school and the wellbeing of our students, all of which remain5 our top priority. Our mission is to uphold the highest academic standards at The Hammond. Our GCSE and GCE results once again surpassed national averages across all subjects and students have benefilled from a range of additional qualifications including Lamda and the London College of Music awards. The school remains committed to increasing its involvement in a wide range of communty based projects and enrichment opportunities. These projects which cover a range of activities. such as Duke of Edinburgh Awards schemes and the Ethics Cup competitions. are very beneficial to both the local and wider community as well as being extremely rewarding for the staff and students who take part. Students continue to support several charities through a variety of fvndraising events. In June, the Hammond Community Appreciation Day was an opportunily for the students to better understand the role of charity. volunteers, and Community networks in our society. A number of representatives from a range of local charitses and voluntary organisations were invited to the school. This enables our students to thrive, and l am delighted to report that all students who graduated from The Hammond College this year have signed with top-tier agents and are already socuring employment within their hosen field. The Board takes its fiscal responsibilTknes extremely seriously. I would like to put on record the Boards appreciation of our partnership with Barclays Bank. Barclays continue to support us in our plans for our site as we develop and improve our estale. The Board of Directors wish to put on record our thanks to our facilities team for the amazing dedication, resilience and skills they demonstrated in providing a safe and inviting environment for students and staff. The team continue wth the programme of work on the school site to ensure our buildings are safe and fit for purpose As a Board. we take very seriously. our role. both in temis of safeguarding and our holistic approach to the wellbeing of our students. The Hammond's 'Every Body, movement continues to grow and evolve, led by Hammond Parliament students it is very much in response to the demands placed on young people in the performance industry. The movement has developed with student leadership and again demonstrates how forward-thinking, innovative. and caring The Hammond is. Crucially, we listen. In response to some issues raised by our students the Board authorised the purchase of a wellbeing centre lo provide a space dedicated to our student5. away from the classroom to receive specialist care and advi.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 As a Board we are always keen to hear the voice and opinlons of our students. We start every Board meeting with a presentation from a group of our students. This may take the form of a perfomiance or a discussion about how we as a Board can work to enhance their experience as students. Our students are never shy aboul sharing their views and opinions and they have influenced our thinking in the way we use our discretionary spending throughout the year. Of course. as a Board we actively manag&d our finances. The school continues to receive three government funding streams. The Dance and Drama Award (DaDA} from the Education Funding Agency supports tha school's post-16 provision while the Music and Dance Scheme (MDS) which comes directly from the Department for Education, does the same for under-165. Thirdly, the Higher Education Funding Council of England {HEFCEI, n respect of the Chester University accredited BA degree course in Musical Theatre Performance. The October budget confirmed the new govemment's intention to change the VAT legislation making Independenl School fees subject to VAT with effect from 1 January 2025. This change has far reaching implications for both the finances of the school and the day to day operation and administration of its financial management. This is further complicated by the absence of Glear guidan for specialist MDS schools, the small minority of Independent Sch(yJls receiving govemmenl grant funding for music and dan education. of which The Hammond is one. A lot of detailed work has been undertaken already to ensure the school remains in a robusl financial position in the short, medium and long-temi and fully complies with the new legislative requirements. While the board recognises the importance of minimising the financial impact on the school's students and their families il is also very cognisanl of the overriding duty to ensure that the school's financial siability is not jeopardised and the school is able to continue to provide the high standards of education to all its students. This year, the board has supported purchasing and equipping a new Wellbeing Centre and updating Ihe school estate as much as it can. Yet again in the preparation of this Annual Report. l am reminded of the continued excellence and reputstion of The Hammond. The directors recognise that it is the hard work, commitment and dedication of the colleagues who work at The Hammond who make this possible. As a Board we resped the professionalism. hard work. and dedication to help sludenls fulfil their goals and ambitions. Hlstory and Development As a Board we are ever mindful of the history and traditions of the school. Indeed. the celebration of its centenary in 2017 marked a new phase in the modernisation of the school whilst respecting the vision and ambition that had led to the development of the school to thal landmark 100 years anniversary. As we look to the 110 Anniversary of the Hammond, th& board are committed lo providing a modern thriving environment for our students. The school comprises 3-year groups from the age of 11 to 16 (the school) and. in addition to the provision of the full national curriculum key stage 3 and 4 subjects, broadens the music and dance curriculum further. A similarly extensive range of extra-curricular activities is offered lo our school students. The College takes boys and girls aged 16+ In addition to Iheir vocational training, students are offered a wide range of educational options, again of the highest standard. for those students who wish to continue to pursue further academic qualifications. Our 18+ provision offers a BA Honours Course linked with the Universty of Chester. Objectives and activities The Hammond continues to provide education for young people in the performing arts. It helps students belween 11 and 21 plus develop the skills. knowledge and Confiden necessary for their future.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 The school's caring and supportlve ethos, where the welfare and development of the indrvidual is of the utmost importance, is one of ils real strengths. This together with the school's enviable academic and specialist dance, music and drama results place it in a pre-eminent position within the region and nationally. The school attracts both local day sludents and boarders from all parts of the UK. and several international students. Our school continues to welcome pupils from all backgrounds. An individual's economic status, gender, ethnicity. race, religion, or disability do nol forni part of our entrance assessment criteria. It is important to U5 that access lo the education we provide is not restricted to those who can afford fees. Our Bursary Policy enables access by hildren of families who mighl otherwise nol be able to afford the fees and our Outreach Programme enablas access to our facilities by the wider community. The school operates a limited bursary scheme. The school's Board and senior management team assess students for grant funding and other financial support. on a case-by-case basis, taking inlo account bolh the student's talent and the financial circumstances of the family. The aim is to ensure that the policy of welcoming students from all backgrounds described above, is met. The school continues to produce well-educated. rounded individuals. with the life skills to take their places as contributing members of sOetY. Self-discipline and self-molivation are stressed, and the school expects the students to be its ambassadors. setting high slandards of behaviour in the eyes of the public. Every pupil attending The Hammond receives a high-quality academic education, tailored to the individual. Dance sludenls have full vocational training. specialising as necessary, according to the ialents and aspirations of the individual. Drama student5 are offered an extensive and varied drama supplement to their general academic education. All students have regular opportuniiies to perfonn publidy and to develop their individual ialents fully. The school works closely with all parents and activety involves them in the progress of their children. The Parent Teacher and Friends Associalion is an important body in this respect. The school also seeks to ensure that equal opportunitie5 are available to all staff for training, professional development and promotion. The school complies with disabilty legislation. All the School's activtties are undertaken with due regard to the wider public benefit. More information on significant activities to achieve these objectives can be found in the Principal's Review of the Year. Principal Risks and Uncertainties The Hammond, like any other organisation, is subject to a range of potential risks and uncertaintles which can have an impact on future performance to a greater or lesser degree. Of these risks and uncertainties some annot be anticipated and as a result, no financlal management tool can cater for these. However. identifying risks and planning for uncertain future events enables the organisation to react more quickly to mitigate risks when they arise as well as reducing the risk in the first instance. During the year the Board has continued to develop and embed systems of internal control and risk managément which are designed lo provide an effective govemance framework to proted the school's assets and reputation. The Board has continued its annual review of the school's business plan to identify the risks to which it is exposed and to idenlify the systems and procedures in place to mitigate Ihose risks. Intemal controls have been implemented and each year the effectiveness of those controls will be reviewed. As well as an annual review, the Board will also consider during the course of the year any risks which might emerge as a rasull of new areas of work being undertaken by the school. The work currently being undertaken by the school specffically regarding the business plan has confirmed that the key risks and uncertainties identified in previous years rna1n unchanged. These are set oul below logether with the actions taken or planned to mitigate the financial impact. Reduction in student numbers. The school continues to adapt its strategies to this challenge, wtth significant SUGGess over the last 3 years. The successful launch of the BA course. in conjunclion with the University of Chester, has seen a significant boost lo school numbers. Work is ongoing to continuously improve the offering of the Hammond, to ensure a conlinued flow of undergraduates.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Reductions in available grant funding is a major threat, as scholarships funding is subject to political and social changes. In the short term, funding of talented but undaffinanced individuals by the central Government looks relatively secure. The school is. however. looking to build up its Bursary funding to offer additional support or alternatives to Governmenl funding in the future. Supply and cost of staff. The school relies on a stnaller pool of suitably qualified specialist staff than the mainstream education sector, and so may be more at risk in this area. Despite this, th8 Hammond continues to attract a steady supply of highquality staff. The current cost of living crisis and econornic challenges hav8 been added to our risk register Financial- The school has a very favourable loan facility (base rate +0.950/0) of just under £2m, fixed in 2008 for 25 years. Increases to the bank base rate would quickly increase interest payments and represents a risk. General Election and a new Labour government may bring a change of policy for schools of performing Arts and Charities. These are the principal risks to the school. The Board believes that the previous narrative demonstrates that it is doing everything possible at present lo miligate the key risks which are reviewed in full half yearly al board away days. At the same time, the Board uses these meetings to review operats'onal excellence and delivery against the five-year strategic plan Challenges and Opportunities The Board identifies the challenges as stated above: however. it considers there are opportunities available to the school, including increased revenue funding from existing providers, tsrgeled growth of day students, and general continued rationalisation of costs. The Board is also reviewing how we tap into the polential of Alumni Membership and sponsorship to enhance the reputation of the Hammond further. Achievements and performance The school is recognised as a Centre of Excellence viithin the Government's Muslc and Dance Scheme (MDS). This recognition. among other things, enables the school to help highly talented young people from a wide range of backgrounds to realise their potential. The school remains committed to increasing its involvement in a wide range of community-based projects. These projects, which cover a range of activities and vary considerably in size. are very beneficial lo both the local and widèr community as w&ll as being extremely rewarding for the staff and sludents who take part. Hammond pupils and students continue to support several charities through a variety of fund-raising events, such as local hospice charities, Save the Family, and organisalions that support the mental health of young people. We also continue to work closely with Cheshire Young Carers. The Hammond also works closely with Passion for Learning charity and Royal Manchester Children's Hospital. This Annual Report allows the directors the opportunity. once again to express their thanks and appreciation to all the colleagues for the work carried out within the school. The development and achievement of the students and the resulting reputation of The Hammond would not be possible without the hard work. enthusiasm and commitment willingly given by our exceptional team. This is something which I, as Ihe Chairman and my colleague Board of Directors, recognise. We are immensely grateful to them. The Directors regularly review the school's business plan both at Board and sub-committee level. The detailed management information, forecasts and supporting documentation is an on-going part of the directors. robusl financial and strategic plan for the school in the short to medium tem. The school relains a close wothing relationship with its bankers who are supportive of the school's plans lo continue to improve the provision to our students.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Financial review The financial year to 31 July 2024 has been one of grovAh and investment. The financial position over the last five years is summarised below: 2024 331 £000 5,848 1.909 3.939 3.278 2,354 216 -148 2023 335 £000 5,381 1,807 3,574 2,932 2,225 224 -77 2022 321 £000 5,024 2021 331 £000 4.776 1,847 2,929 3,134 1.564 78 -26 2020 324 £000 4,887 1,908 2.979 2.962 1,474 451 -36 Pupil numbers Income Grants received Income less grants Salarie5 Overheads Operating profiV{loss) Interest payable Net profiV(loss) for the year 3,180 2,732 2.086 206 11111 68 147 176 52 415 Ave. conlributionlpupil 11.900 10,669 9.907 8,849 9,194 Reserves The net asseis of the school stood at £3.11 m at Ihe end of the year. an increase of £70k compared to last year's balance of £3.04m. Restricted funds accounted for £9.631. The Directors are very conscious of the requirement to continually review the reserves and assets of the school and maintain a iarget of reserves accounting for 6 months operating cosls. The Hammond's SerVeS currently account for 6.4 months of operating costs. The directors maintain vigilance over the school's finances by reviewing a monthly finance report, including management accounts and cash reporting. The monlhly results are reviewed at both Board and Board sub-cornmtttee levels with reference to the regularly updated rolling 3-year forecast. Bank balances The School ended the year with an overdrawn bank balance of £254k, compared to an overdrawn balance of £278k at the end of the last financial year. Outsianding mortgage debt at year-end was £2.1 m.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Forecasts The school maintains a rolling 3-year profit and cash flow forecast lch is used by the senior management team and board to monitor actual performance against forecast. The forecast is prepared using a rigorous methodology consistently applied from year to year. The forecasting methodology used in the lasl Ihree years has significantly assisted in obtaining and managing the finance required to complete the capital projects discussed above. The Board of directors retslns its commitment to this financial management proc8ss and is continually looklng at ways to further refine and develop these processes. Fundraising Activlties The Trustees of School wish lo thank the continued support of the PTFA who are unstinting in Iheir work to support Ihe school. Malerial Financial Expenditure The academic year began with the completion of the extensive boarding house refurbishment projecl allowing our students to move in on time at the start of the new academic year. This project which cosl in excess of £1m was part funded by an additional dedicated facility provided by our bankers. Bardays. Plans for the Future The Board has continued its review of the estate strategy. We recognise that with the increasing number of students Ihere is pressure on our existing accommodation. The Board is keen to ensure that any short-temi solutions do not adversely impact on the medium- and long-term plans to improve our real estate. Continued improvements and updates to facilities. equipment and teathing, to provide the best possibSe leaming experience. across all ages in the school. Continually review pupil numbers to maintain the unique nature of the school. Maintaining a watching brief for opportunities to further grow Ihe school in a range of ways. Continued close involvement of the wider community to present the Hammond Experience to an &var- increasing audience, through Productions, Outreach activities. summer school. Hammond Youth Theatre and Hammond Associates.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Structurey governance and management The financial statements comply with current statutory requirements, the Memorandum and ArtiGle5 of Association of the company and the Statements of Recommended Practice for Accounting and Reporting by Charities (effective 1 January 2019). The Senior Management Team is responsible for presenting the School'5 exlstlng short, medium and long-temi stralegic plans to the Directors for approval. The trustees. who are also the directors for the purpose of company law, and who served during the year and up lo Ihe date of signature of the financial stalements we. K H Cowell J M Devoy C E Penny D A Silcock A Sutton P J Edgington A F McGladrigan I Wynne-smythe K Newsam Mr T O Matthews (Resigned 30 January 2024) {Resigned 14 October 2024> (Appointed 26 February 2024) The Board of Directors is responsible for the appointment of additional Directors and. in doing so, Seeks individuals with appropriate experience and interest to provide the Board with the necessary skills and outlook required. In response to a recommendation in the recent Inspectors Report we have recnjited a new Director with experience in the performing arts arena. New Directors have a formal induction process, and School poliGies are made available to all Directors. The directors have a fomial risk management process lo assess business risks and implèment risk management strategies. This is discussed more fully in the conduding section of this report. The charity's internal financial and management controls confomi to the current SORP requirements and to operational guidelines issued by the Charity Commission. Financial Management and Control The day-to-day financial operation of the school, the implementation of its budgets, application of the relevant internal controls and preparation of regular financial information is the responsibility of the Finance Department of the school, led by the Head of Finance under the supervision of the finance sub-commlttee which constitutes two d1ctorS, an external finance expert, the Principal. the Head of Finance and members of the finance department. The monthly reporting structure used in pVIouS years continues to be employed. The pay of Ihe school's senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charily, the Truslees benchmark against pay levels in its peer educalional establishments. The Trustees believe that this policy is currently appropriate with successful recruitment in a challenging environment. However. should this change. this benchmark would ba r8viewed by the Board and senior management team.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Statement of Trustees. responslbllltles The trustees. who are also the directors of The Hammond School Limited for th8 purpose of company law, are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accountin9 Standards (United Kingdom Gen&rally Accepted AcLounting Practi). Company Law requires the tnjstees 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 the incoming reSoUrS and application of resources. including the income and expenditure. of the charitable company for that year. In preparing these financial statements. the trustees are required to= - select suitable accounting policies and then apply them consistently., - observe the methods and principles in the Charities SORP: make judgements and estimales Ihat are reasonable and prudent" stale whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial posilion of the chariiy and enable them to ensure that the financial statements comply with the Companies Act 2006. 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. Audltor In accordance with the company's articles, a resolution proposing that Champion Accountants LLP be reappointed as auditor of the company will be put at a General Meets'ng.
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 PRINCIPAL'S END OF YEAR REPORT Overvlew The 2023-24 academic year has been nothing short of transformative for The Hammond, with record-breaking achievements across all areas of our provision. The year ended wilh the largest number of sludents on roll for the start of the next academic year. a testament to the careful crafting of our curriculum and our strategic efforts to raise the national profile of the school. Growih and Curriculum Development The attractiveness of the school is due. among other reasons, to the work carried out in the 2023-24 academic year to refine each course offered by the school to meet the evolving demands of the Creative industries, ensuring that our students are prepared for the competitive world beyond our walls. The academic and vocational offerings for 202415 will be even stronger, the result of the work referred to above carefijlly crafted in collaboration with an extemal panel and informed by detailed research carried out by our curriculum leaders. Thi5 growth can also be attributed to the concerted efforts to elevate The Hammnd's profile on a national scale. We engaged in numerous industry-focused events such as Can You Dance? (Liverpool and Northern Ireland), One Dance events, and a wide array of off-site outreach activities. Notably. we revamped our audilions process to make it more accessible, refining its focus and reach. For the first time, our audition panel travelled to Belfast and Jersey. and both ventures proved lo be highly successful. attracting exceplional talent. Due to their success. we plan to repeat and expand these initiatives in the coming years. Studenl Destinations and Success We are thrilled to report that all students who graduated from The Hammond College this year have signèd with lop-tier agents and are already securing employment within the creative industries. A small number of graduates have opted to pursue further training, demonstrating our commitment to supporting students through diverse pathways. In addition, more Year 11 students have chosen to continue their joumey with us in college than ever before, reflecting the distinct idenlity and outstanding quality of our vocational training. The success of those outcomes is a direct result of our newly crealed Industry and Outreach Team. whose hard work has been recognised as 'Outstanding' in rent inspections. Their influence has been instrumental in solidifying The Hammond as a leading institution in both training and graduate employability. Flnanclal Control and Infrastructure Improvements Our school continues to exercise firm financial control, evidenced by our ability to complete key infraslructure projects while exploring new avenues for income. This year. we successfully completed an extensive renovation of our boarding houses. enabling 90 boarders to move back into beautifully restored accommodations this September. The feedback from both boarders and parents has been overwhelmingly positive. Our new facilities provide a wann, welcoming environment that students are proud to call home-furlher enhancing their Hammond experience. Furthermore, our prudent financial management has allowed us to purchas8 a new Wellbeing C8ntre, an integral part of our ongoing commitment to providing the highest standard of physical and emotional health support. This new facility exemplifies our dedication to ensuring that all students receive the care they need to Ihrive, both in and out of the classroom. Academic Excellence and Enrichment We have continued to uphold the highest academic standards at The Hammond. This year, our leadership team has scrutinised every elemenl of our teaching and learning to ensure that all students-especially target groups-make rapid progress. Our GCSE and GCE results from the summer of 2024 once again surpassed nalional averages across all subjects, highlighting the outstanding qualty of our academic provision. Beyond the dassroom, we have offered students a wealth of enrichment opportunities, from LAMDA and LCM exams to Duke of Edinburgh Award schemes and the Ethics Cup competttions. Our comprehensive PSHE programme has broadened students, horizons. promoting personal development and well-roundedness. These initiatives not only enriGh our students, educational experiences but also prepare them for the challenges of the Ihiirlpr wnrlrl
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Professional Productions Our productions are the culmination of the education and training students receive at The Hammond, and this year was no exception. We delivered industry-standard performances designed to give students the experience of working as part of a professional company. These productions are the pinnacle of our students, journeys. showcasing the skills they have honed through years of hard work and dedication. We are proud to say that our students leave The Hammond ready to compete at the highest level in the creative industries. Student Wellbeing and Leadership The wellbeing of our students remains our top Priority. Our Every Body Movement initiative, which promotes healthy attitudes towards education. training. and self-care, has been a huge success. We have seen students flourish not only as performers but also as confident individuals with a strong sense of self-worth and belonging. The Hammond Parliament, our student leadership body. has also continued lo shape the student experience through a focus on charity work, community engagement. and enhancing school life. Their input has been invaluable in fostering a strong sense of community and responsibilily among their peers. Funding and National Recognltlon The continuation of our three primary funding streams-MDS, DaDA. and tuition fees from the Universty of Chester course-has been instrumental in maintsining the high standard of our provision. The MDS and DaDA schemes. in particular, continue to prove The Hammond's national excellence, providing access to exceptional training for talented students from diverse socio-economic backgrounds. These grants ensure that financial barriers do not stand in the way of talent, helping to foster a more inclusive and representative creative industries workfor. Ofsted Inspection In March 2024, The Hammond School underwent a rigorous Ofsted inspection, and l am delighled to announce that we achieved an Outstanding grade across all four calegories. This is an incredibly rare accotnplishment. and it stands as a testament to Ihe dedicalion, skill, and passion of every member of our staff. To be recognised as outstanding in leadership, teaching and leaming. personal development, and behaviour and welfare is a true honour and reflects the immense effort we put into every aspect of the student experience. Conclusion and Thanks would like to extend my heartfelt thanks to the Board of Directors. whose ongoing support has been instrumental in driving our success. Their commitment lo the school's vision and values has empowered us to achieve great things. and their trust in our leadership has allowed us to flourish. I would also like to express my gratitude to Barclays for their continued support, which has played a crucial role in helping us fund new initiatives and improv8 our facilities. It is a true privilege to lead such an inspirational team of colleagues, whose tslent and dedication know no bounds. l am equally honoured to work alongside our wonderful students, who amaze us daily with their creativity, passion. and resilience. Together, we have made The Hammond a beacon of excellence, and I look fotward to all that we will achieve in the future. Jennlfer Roscoe Principal
THE HAMMOND SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Dlsclosure of Informatlon to audltor Each of the trustees has confirmed that there is no information of which they are aware whlch is relevant to tha audit. but of which the auditor is unaware. They have further confimied that they have taken appropriate steps to identify such relevant informallon and to establish that the auditor is awar8 of such infomiation. Publlc Beneflt In setting The School's objectives and planning its actiwlies the Directors have given careful consideration to the duty placed on them by Section 17(5) of the Charities Act 2011 to have due regard to Public Benefit guidance published by the Charity Commission and in particular to its supplemental guidance on advancing education and on fee charging. Specifically. the Directors take every step lo ensure that the intake, activities and achievements of the school arg focussed on maximising the benefit, to both the students and the wider community. of the academic, pastoral and social aclivities of the school. Th8 Board of Directors regularly reviews the SchcM)I's activities in this regard as part of its monthly meeting. The Trustees. report was approved by the Board of Trustees. KHCowe Chairman
THE HAMMOND SCHOOL LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HAMMOND SCHOOL LIMITED Oplnlon We have audited the financial statements of The Hammond School Limited (the 'charity') for the year ended 31 July 2024 which comprise the statement of financial adivities. the balance sheet. the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporling Standard 102 The Financial Repong Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice}. In our opinion. Ihe financial statements: give a true and fair view of the state of the chartiable companvs affairs as at 31 July 2024 and of its incoming resources and application of resources, including ils income and expenditure, for the year then ended. have been properfy prepared in accordance with United Kingdom Generally ACpted A¢ix)unting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) {ISAs (UKI) and applicable law. Our responsibilities under Ihose stsndards are further described in the Auditoffs responsibilities for the audit of th8 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 stalements in the UK, inciuding the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with thèse requirements. We believe that the audit evidence we have obtained is sufficient arKI appropriate to provide a basis for our opinion. Conclusions relating to going con¢em In auditing the financial statements, we have conduded that the Trustees. use of the going concem basis of accounting in Ihe preparation of the financial statements is appropriale. Based on the work we have perfomied, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the charily'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 concem are described in the relevant sections of this report. Other information The other informalion cornprises the information included in the annual report other than the financial statements and our auditols report thereon. The Iruslees are responsible for the other informalion contained within the annual report. Our opinion on the financial statements does not cover the other infortnation and, except to the extent otheNise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infomation and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparenl material misstatements, we are required to determine whether this gives rise to a material misstalement in the financial statements themselves. If, based on the work we have perfonned, we conclude that there is a material mi5Statement of this olher information, we are required to report that fact. We have nothing to report in this regard. Opinions on olher matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of our audit- the information given in the Trustees. report for the financial year for which the financial statements are prepared, which includes the directors. report prepared for the purposes of company law. is consistent with the financial stalemenls,. and the directors. report included within the Trustees, report has been prepared in acrdanCe with applicable legal requirements.
THE HAMMOND SCHOOL LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE HAMMOND SCHOOL LIMITED Malters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report induded within the Trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report lo you if, in our opinion: adequate accounting records have not been kepl. or relums adequate for our audit have nol been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and retums. or certain disclosures of trustees. remuneration specified by law are not made" or we have not received all the information and explanations we require for our audit- or the trustees were not entiued to prepare the financial statements in accordance with the small companies regime and take advaniage of the small companies. exemptions in preparing the Trustees, report and from the requiremenl to prepare a strategic report. Responsibilities of trustees As explained more fully in the siatement of Trustees, responsibilities. the trustees. who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial slalements and for being satisfied that they give a Irue and fair view. and for such internal control as the trustees delermine is necessary lo enable the preparation of financial statements that are free from material missiatemenl, whether due to fraud or error. In preparing the financial slatemenls, the Irustees are responsible for assessing the charity's ability lo continue as a going concem. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charilable company or to cease operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audit of the flnancial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee Ihat an audit conducted in accordance with ISAS {UK) will always detect a material misstalement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users laken on Ihe basis of these financial statements. The extent lo which our procedures are capable of detecting irregularities, induding fraud, is detailed below. Extent to which the audit is considered capable of detecting irregularities, including fraud The responsibility for the prevention and delection of irregularities, induding fraud, lies wilh th8 trustees and with those charged with govemance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud. to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audil.
THE HAMMOND SCHOOL LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE HAMMOND SCHOOL LIMITED Audit procedures We determine significant aPIcable laws and regulalions through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial ststements. We consider the applicable laws and regulations to be the financial reporting framework (FRS 102 and the Companies Act 2006), Charity Law, the relevant tax regulations in the UK, employment law, the Health and Safety at Work Act 1974 and Safeguarding legislation. We consider the control er¢vironment and the procedures in place to address identified risks, including managemenl override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are fr88 from malerial misstatement or error and ir)clude.' enquiries of management and of staff in key compliance functions". review of reports from regulators- review of minutes of meetings of those charged wilh governance. review and testing of manual journals, relevant nominals and significant transaclions outside the normal course of business., review of financial statement disclosures and testing to supporting documentation. perfomiance of analyiical procedures. We are not responsible for preventing norrfompliance and due to the inherenl limiiations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations A further description of our responsibilities is available on the Financial Reporting Council's website at.. hltps:11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditols report. Use of our report This report is made solely to the charitable companrfs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mighl slate to the charitable company's members those matters we are required to state to them in an audilor's report and for no other purpose. To the fullest exlent permitted by law, we do not accept or assume responsibility to anyone other than the charilable company and the charitable company's members as a body. for our audit work, for this report, or for the opinions we have formed. Susan Harris MA ACA (Senior Statutory Audltor) for and on behalf of Champion Accountants LLP Chartered Accountants Statutory Auditor 2nd Floor Refuge House 33-37 Watergate Row Chester CH12LE
THE HAMMOND SCHOOL LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDrruRE ACCOUNT FOR THE YEAR ENDED 31 JULY 2024 Unrestrlcted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Totsl 2024 2023 Notes Income and endowments from". Charitable activities School fees and associated income 5.659.676 5,659.676 5,256.242 5,256,242 Other income 188.362 188.362 125.005 125,005 Total income 5.848,038 5.848,038 5.381,247 5.381,247 Expendilure on: Charitable activities Charitable activities 5,776,372 2,654 5.779,026 5,231,365 2,172 5.233,537 Other expenditure 10 535 535 Total expenditure 5,776.372 2.654 5.779.026 5,231.900 2,172 5,234,072 Nat Incomel{expenditure} 71.666 (2.654) 69.012 149,347 (2,172) 147.175 Other recognlsed gains and losses: Revaluation of tangible fixed assets 888.747 888,747 Net movement in funds 71,666 (2.654) 69.012 1,038.094 {2,172) 1,035,922 Reconciliation of funds: Fund balances at 1 August 2023 3,026,799 12.285 3.039,084 1.988.705 14,457 2,003,162 Fund balances at 31 July 2024 3,098,465 9,631 3.108.096 3,026,799 12,285 3,039,084 The statement of financial activities includes all gains and losses recognised in the year. All income and expendlture derive from continuing activities.
THE HAMMOND SCHOOL LIMITED BALANCE SHEET ASAT 31 JULY 2024 2024 2023 Notes Fixed assets Tangible assets Current assets Debtors Cash al bank and in hand 12 6,833,136 6,049,804 13 197.146 1.637 1.156,517 1,632 198.783 1.158,149 Credltors: amounts falling due within one year 14 {1.966.631) (2.733.463) Net current liabilities (1,767.848) {1,575,314} Total assets less current liabilities 5,065.288 4,474,490 Creditors: amounts falling duo after more than one year 15 (1.957.192) {1,435,406) Net assets 3.108,096 3,039.084 Income funds Restricted funds Unrestricted funds - Designaled funds General unrestricted funds Share capital Revalualion reserve 18 9.631 12,285 eneral 19 9,750 4,614,200 10,000 (1,535,485) 22,710 4,529,574 10,000 (1,535,485) 3.098,465 3,026,799 3,108,096 3,039,084 The financial statements were approved by the Tru51ees on ... K H Cowell Trustee Company Registration No. 00838325
THE HAMMOND SCHOOL LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY2024 2024 2023 Notes Cash flows from operating activities Cash génerated from operations 24 272,759 528,841 Investlng actlvltles Purchase of tangible fixed assets (830.255} {757.416) Net cash used in Investing activities {830.255) (757,416) Financing activities Proceeds of new bank loans Repayment of bank loans 690,040 {109.957} {94,457) Net cash generated froml(used in) flnanclng actlvltles 580,083 (94,457) Net increasel(decrease) In cash and cash equivalents 22.587 1323,032) Cash and cash equivalents at beginning of year (276,161) 46,871 Cash and cash equivalents at end of year (253,574) {276,161) Relating to: Cash at bank and in hand Bank overdrafts included in credwiors payable within one year 1.637 1,632 (255,211) {277,793}
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies Charity information The Hammond School Limited is a private company lirnited by shares incorporated in England and Wales. The registered office is Hoole Bank House, Mannings Lane, Chester, CH2 4ES. 1.1 Accountlng conventlon The financial statements have b&8n prepared in accordance with the charitys governing document, the Companies Act 2006 and 'Accounting and Reporting by Charities: Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporiing Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial stataments arg preparèd in stèrling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properlies. The principal accounling policies adopted are set out below. 1.2 Going concern At the time of approving the financial stalemenls. the trustees have a reasonable expectation Ihal Ihe charily has adequate resources to continue in operalional existence for the foreseeable ftjlure. Thus the truslees continue to adopt the going concern basis of accounting in preparing the financial slatements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricled funds are subject to specific conditions by donors or grantors as lo how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Designated funds comprise unrestricted ndS that have been set aside by the trusteas for particular purposes. The aim and use of each desi9nated fund is set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally enlitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Grants are recognised in the period to which they relate, in accordance with the underlying conditions and terms attached to each grant. School fees and similar income are accounled for in the period to which they relate. Fees receivabl& are stated after deducting allowances and Bursaries allowed by the School. Bank interest is recognised in the period in which it is receivable. Rental income is recognised in the period in which it is due.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Accounling policies {Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement. and the amount of the obligation can be measured reliably. Expenditure is classified by activty. The costs of each activity are made up of the totsl of direct costs and shared costs. including support costs involved in undertaking each aclivty. Direct costs attributable to a single activity are allocaled directly to that activity- Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consislent with the use of resources. Cenlral staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure is charged on an accruals basis and is indusive of VAT where appropriate. Due to the nature of the charity. all expenditure is currently considered to be expenditure on Gharilable activities and therefore the govemance costs are all apportioned to this area. 1.6 Tanglble flxed assets Tanglble fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on Ihe following bases= Freehold land and buildings Plant and equipment Fixtures and fittings Computers Motor vehicles See below 10/0 per annum reducing balance basis 10/0 per annum reducing balance basis 25°/0 per annum straight line basis 25. per annum reducing balance basis The gain or loss arising on the disposal of an asset is determlned as the difference between the sale proceeds and Ihe carrying value of the asset. and is recognised in the statement of financial aclivities. Freehold land and buildings (including new buildings). some of which are listed properties, are initially measured at cost and subsequently measured at cosl or valuation. rFet of depreciation and any impairment losses. Valuations are undertaken on a regular basis, with a formal valuation every five years. to ensure that Ihe carrying amount does not drrrer materially from the fair value. Gains and losses on revaluation are recognised in the SOFA. The directors do not consider it appropriate to depreciate such buildings as they do nol consider Ihal Ihe depreciation would be material having regard to the life of ihe assets. In addition lo Ihe costs of minor repairs, which are written off as incurred, provision is made for major repairs which are likely lo arise in the future. An impainnent review is carried out annually by the charity- 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carying amounts of its tangible assets to detemiine whether there is any indication that those assets have suffered an impairment loss. If any such indicalion exists, the recoverable amount of the asset is estimated in order to detennine the extent of the impairment loss (if any). 1.8 Cash and cash equivalents Cash and cash equivalents indude cash in hand. deposits held at call with banks. other short-term liquid investments with orfginal maturitie5 of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (Continued) 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the charity's balance sheet when the charty becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basi¢ financial assets Basic financial assets. which include debtors and cash and bank balan$. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipls discounted at a market rate of intarest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitules a financing transaction, where the debt instrument is measured at the present value of the future paymenls discounted at a market rate of interest. Financial liabilities dassified as payable wilhin one year are not amortised. Debt inslruments are subsequenuy carried at amortised cosL using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as non-current liabililies. Trade creditors are recognised initially al transaction price and subsequently measured at amorlised cost using the effective inlerest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cost of any unused holiday enlitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Crltlcal accountlng estlmates and Judgements In the application of Ihe charity's accounting policies. the trustees are required lo make judgements, estimatès and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revlsed where the revision affects only that period, or in the period of the revision and fvlure periods vthere the revision affects both current and future periods. The significant judgements considered to have Ihe greatest risk of causing a material adjustment to the carrying amounts of assets and liabilities are as follow.. Valuation of land and buildin Land and Building5 are measured al fair value at the reporting date based on judgements made by the directors having regard to general market conditions and any relevant information available to them. Charitable activities School fees School fees and and associated assoclated income income 2024 2023 School fees and associated income 5,659,676 5,256.242 Other Income Unrestricted Unrestrlcted funds funds 2024 2023 Rent rec8iV8d 188,362 125,005
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Charltable activities Education Education 2024 2023 Staff costs Depreciation and impairmant Production cosls School books and equipment Exam fees Telephone Printing, postage and stationery Licenses Catering and cleaning contract Motor expenses School transport School trips General expenses Degree course expenses Subscriptions and donations 3,278,307 2.931,644 46,923 41,210 226,458 214,524 48.180 43,763 67,665 56,908 14,924 14,081 21.303 19,844 23.887 16,797 689.627 607.536 7,201 3.897 102,087 104,854 139,485 99,362 111.769 39,022 178.469 177,026 20,858 19,133 4,977,143 4,389.601 Share of support costs {see nole 6) Share of governance costs (see note 6) 680.126 121.757 727,189 116,747 5.779,026 5,233,537 Analysis by fund Unrestricted funds - general Restricted funds 5,776,372 5.231,365 2,654 2,172 5.779,026 5,233,537 For the year ended 31 July 2023 Unrestricted funds - general Restricted funds 5,231.365 2.172 5.233.537
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Support costs allocated to actlvltles 2024 2023 Operating lease charges Rent and rates Insurance Light and heal Repairs and renewals Ground maintenance Cleaning Advertising and marketing Recruitment Bad debts Bank loan interest Govemance costs 11.042 170,348 35,011 132,453 75,770 31.336 25,515 26,032 28,285 {3.263) 147.597 121,757 11.049 314,995 30.389 123,235 60.337 27,899 16,399 19.873 21,061 25,022 76,930 116,747 801,883 843,936 Anatysed between: Charitable activities 801,883 843,936 2024 2023 Governance costs compris8: Audit fees Legal and professional Bank tharges 14,144 87,231 20,382 14,126 91,772 10,849 121,757 116,747 Net movement in funds 2024 2023 Net movement in funds is stal8d after chargingl(credlling) Fees payable to the company's auditor for the audtt of the companvs financial statements Depreciation of owned tangible fixed assets Loss on disposal of tangible fixed assets Operating lease charges 14,144 46,923 14,126 41,209 535 11,049 11,042 Trustees None of the trustees (OT any persons connected with them) received any remuneration or benefits from the charity during the year.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Employees The average monthly number of empk)yees during the year was: 2024 Number 2023 Number Full lime Part time 66 61 110 105 The average number of fijlktime equivalent employees during the year was: Teaching Non-Teaching 52 36 50 29 88 79 Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 2.941,959 264.903 71.445 2,622,820 242,524 66,300 3.278,307 2,931,644 The number of employees whose annual MuneratIon was more than £60,000 is as follows.. 2024 Number 2023 Number £60,000- £70,000 £70,000- £80.000 £80,000- £90.000
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 10 Other Total Unrestricted funds general 2023 2024 Net loss on disposal of tangible fixed assets 535 11 Taxation Tho charity is oxempt from taxation on its activities because all its income is applied for charitable purposes. 12 Tanglble flxed assets Freehold land and bulldings Plant and Fixtures and equlpmont ffttlngs Computer5 Motorvthiclès Total Cost or valuatlon At 1 August 2023 Additions 5.701.502 703,119 227.167 96.312 888,756 23,052 289.116 7,772 31,762 7,138,303 830,255 At 31 July 2024 6.404.621 323.479 911,808 296,888 31.762 7,968,558 Depreciation and impaimient At 1 Augusl 2023 Deprecialion charged in the year 85.550 696,455 275,295 31.199 1,088,499 18,510 20.548 7.725 140 46,923 At 31 July 2024 104,060 717.003 283,020 31,339 1,135,422 Carrying amount At 31 July 2024 6,404.621 219,419 194,805 13.868 423 6,833.136 At 31 July 2023 5.701.502 141,616 192,302 13,821 563 6,049,804 The accounting policy with regard to freehold propety requires valuations lo be undertaken on a regular basis and a fomial valuation every five years. FDmial external valuations were Caled out by Lambert Smith Hampton on the 15th December 2022 and Jones Peckover Chartered Surveyors on the 22nd May 2023 which valued the property porlfolio at £5,055.000. As at 31 July 2024, the trustees are of the opinlon that the carying value of freehold property does not materially differ from the fair value. All assets are used for direct charitable purposes. The comparable amounts for Land and Buildings determined according to the historical cost convention are as follows. Cost at 1 August 2023 Additions 7,129.975 703,119 Cost at 31 July 2024 7,833,094
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 13 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Pr&paym8nts and accrued income 102,714 94.432 1,005,821 150,696 197,146 1,156,517 14 Creditors: amounts falling due within one year 2024 2023 Notes Bank loans and overdrafts Other taxation and social security Trade creditors Other creditors Accruals and deferred income 16 401,480 58.615 442,480 246,641 817,415 365,765 58,138 461,079 196,231 1,652,250 1,966.631 2,733,463 The bank loan and ov6rdraft are secured by a first legal charge over the company's fraahold property. Deferred income of £102.953 {2023 - £959,990) which is included in the above figures relates to school fees paid in advan which would be potentially refundable. 15 Creditors: amounts falling due after more than one year 2024 2023 Notes Bank loans 16 1.957,192 1.435,406
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 16 Loans and overdrafts 2024 2023 Bank overdrafts Bank loans 255,211 2,103,461 277,793 1,523,378 2,358,672 1,801,171 Payable within one year Payable after one year 401,480 1,957,192 365,765 1.435,406 Analysls of debt maturity Within one year or on demand Between one and two years Between two and five years After five years 401,481 184,552 369,104 1,403,535 365.764 373,369 187.024 875.014 2,358,672 1,801,171 Thg bank loans are secured by a first legal charge over the company's freehold property. The first loan, for £2.3M over 25 years, has an inleresl rate of 0.950/0 over the bank's base rate. The second loan, for £355K over 2 years, has an interest rate of 2.950/0 over the bank's base rate. The third loan, for £700k over 9.5 years, has an interest rate of 2.75°/o over the bank's base rale. The secured bank loans and overdraft represent 37 /0 of the value (2023 36 % ) of the freehold propety they are secured against based on It5 market value per the accounts at 31 July 2024. 17 Share capital 2024 2023 Ordinary share capital Issued and fulty paid 10,000 Ordinary shares of £1 eath 10.000 10,000 18 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trusl subject to specific condilions by donors as to how they may be used. At 1 August 2023 Resources expended At 31 July 2024 Diverse Dance Project 12,285 {2,654) 9,631
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 18 Restricted funds {Continued) Previous year: At 1 August Resources 2022 expendod At 31 July 2023 Diverse Dance Project 14,457 (2.172) 12,285 Diverse Dance Project Monies received from The Bank of America Charitable Foundation towards the support of The Hammond School's Diverse Dance Project through three outreach programmes. 19 Designated funds The unrestricted fvnds of the charity comprise the unexpended balances of donations and grants which are nol subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. Movement in funds Incoming Resources resources expended Movement in funds In¢omlng Resources Balance at resources expended 31 July 2024 Balance at 1 August 2022 Balance at 1 August 2023 PTFA- minibus Welfare Fund 4.000 14.165 4,000 18,710 4,000 5.750 5,864 {1,319) 6.763 (19,723) 18.165 5.864 (1,319) 22,710 6.763 (19,723) 9,750 An amount of £4,000 was received from the PTFA which was designated for the purpose of buying a minibus. The welfare fund was created during 2019120 and receives income from amounts recovered on bad debts that have previously been written off. The fund is to be used to provide short term help for parents struggling to pay the fees. 20 Analysis of net assets between funds Unrestricted Restricted funds funds 2024 2024 Total 2024 Total 2023 Fund balances at 31 July 2024 are represented by: Tangible assets Current assetsl{liabilities) Long term liabilities 6.833.136 (1,777,479) {1,957.192} 6,833,136 6,049,804 9,631 (1,767,848) (1,575,314) (1,957.1921 (1,435,406) 3.098,465 9,631 3.108.096 3,039,084 Of the total funds in 2023. £12.285 was restricted and was represented by nel Guent assets.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 21 Capital commitments Amounts contracted for but not provided in the financial statements: 2024 2023 Acquisition of property, plant and equlpment 394,271 22 Operatlng lease commltments At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases. which fall due as follows: 2024 2023 Within one year Beiween iwo and five years 10.386 106,219 7,500 10,386 113,719 23 Related party transactions Remuneration of key management personnel The key management personnel of the charity comprise the Principal. the Vice-Principals, the Head of Operations and the Heads of Departments. The remuneration of key management personnel is as follows. 2024 2023 Aggregate compensation 336,221 298.122 Transactions with related parties During the year the charity entered into the following transactions with related parties: Mr J Devoy is a director of the company and a partner of Aaron & Partners LLP Sdicitors who invoiced £1,243 (2023 - £2,898} during the year in respect of Legal and Professional charges. Income of £120 {2023 £nil) was recognised for advertisement within concert programmes. These charges and income have been incurred al fair market value.
THE HAMMOND SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 24 Cash generated from operatlons 2024 2023 Surplus for the year 69,012 147,175 Adjustments for.. (Gainllloss on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets 535 41,210 46,923 Movements in working capital: Decreasel(increase} in debtors (Decrease)lincrease in creditors 959,371 {802,547) {939,075} 1,278.996 Cash generated from operations 272.759 528,841 25 Analysis of changes in net (debt)Ifunds At 1 August 2023 Cash flows At 31 July 2024 Cash at bank and in hand Bank overdrafts 1,632 (277,793) 1,637 (255,211) 22.582 (276.161) 22,587 1253,574) Loans falling due within one year Loans falling ijue after more than one year (87,972) {1,435,406) (58,297) 1146,269) (521.786) (1.957,192) {1.799,539) (557.496) (2.357.035)