2022-08-31-accounts

Registered number: 03166207 Charity number: 1053810

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the Company, its Trustees and advisers	1
Trustees' report	2 - 11
Independent auditor's report on the financial statements	12 - 15
Consolidated statement of financial activities	16
Consolidated balance sheet	17 - 18
Company balance sheet	19 - 20
Consolidated statement of cash flows	21
Notes to the financial statements	22 - 45

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees	D G Guillon, Chair
	P D Millington
	P J Leonard
	A M M Millington (appointed 1 June 2022)
	A F G Alting Von Geusau (resigned 1 July 2022)
	M Bollore (resigned 1 July 2022)
	M L Newman-Sanders (resigned 1 July 2022)
	M P S Stables (resigned 1 July 2022)
	S Cassidy (resigned 1 July 2022)
	J Valero (resigned 18 February 2022)
Company registered number 03166207 Charity registered number 1053810 Registered office The Cedars School Coombe Road Croydon CR0 5RD Company secretary B Millington Chief executive officer B Millington Independent auditor Blick Rothenberg Audit LLP Chartered Accountants 16 Great Queen Street Covent Garden London WC2B 5AH Bankers Barclays Bank Plc Marcham Road Abingdon Oxfordshire OX14 1UB Headteachers C Candia L Sanders R Teague

Page 1

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The trustees, who are also directors, present their annual report for the year ended 31 August 2022under the Charities Act 2011 including the Directors’ and Strategic Reports under the Companies Act 2006 together with the audited financial statements for the year.

The accounts comply with Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), ith all statutory requirements and the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) 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 2015).

The board of trustees is pleased with the performance of the charity during the year and the position at 31 August 2022. The Trustees consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets and available financial facilities are adequate to fulfil its obligations.

Objectives and activities

a. Mission statement

The central aim of our schools is the development of the person as a whole.

• A unique approach to learning and development of the student allows for academic excellence; we want to create an environment that promotes a lifelong passion for learning;

• In any activity, be it curriculum or extra curriculum, the student is encouraged to practice good habits, that lead to a life of virtue, thus achieving personal maturity and inner freedom;

• There is no one size that fits all. Thanks to the tutorial system, we make sure each student receives personalized attention and care to guide the young person academically and personally;

• We want the parents to be the first and principal educators of their children. As schools, we support them in their most important mission, ie helping their children become the best version of themselves. The very name of our Charity reflects this: parents and teachers together for the good of the children;

• Our value system is rooted in a Christian understanding of the human person. That being said, we value religious freedom and welcome parents and students of all faiths or none, who subscribe to our general vision.

The objects of PACT are the advancement of education and the development of character in accordance with Christian principles and ideals in particular through the provision and maintenance of schools.

Our philosophy recognises parents as the primary educators of their children and this is the cornerstone of our approach. We pursue academic and personal excellence for all pupils but this is not just measured in test results and statistics. Our goal remains assisting each pupil to attain excellence both academically and in personal development in particular in the acquisition of Christian virtues. We do this within the framework of a supportive Catholic ethos.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Objectives and activities (continued)

b. Main objectives for the year

Our key objectives for the year to 31 August 2022 included:

• Bedding in of the three schools in their new estates, continue to explore synergies within the schools whilst retaining their own unique identity whilst growing pupil numbers.

• ° The Cedars and The Laurels operated from their new site in SE19 from Sept 2021. Whilst the schools remain single sex they benefit from the collaboration that is now possible from co-location. A small number of teachers work across both schools and thus increase opportunity for learning and career development.

• ° Oakwood also had a successful year in its new site and having settled in well is benefitting from a rapid increase in admissions enquiries.

• Continue to excel academically and so attract increased numbers to our 6th form programme.

• Increase our ability to offer bursaries to deserving students via a sponsorship programme.

• Building on the levels of academic excellence already achieved;

• Securing financing and donations necessary to further develop all our schools; and

• It has been an ambition of PACT for some years now to bring The Laurels School Limited back under the PACT umbrella and this was achieved on 1 July 2022 when the shares of The Laurels School Limited were purchased by PACT so the school is now fully owned by PACT.

c. Activities undertaken to achieve objectives

The trustees are responsible for planning (and monitoring progress) so as to achieve the objectives they have set. Ensuring that all pupils have the opportunity to realise their full potential and have the best preparation for their next stage of schooling, continues to underpin the objectives of PACT. The schools aim to provide a firstclass all-round education to children between the ages of 3 and 18. As well as an excellent academic education, the schools provide pupils with a range of extracurricular activities including drama, music and sport.

Each school’s aim is to develop the whole child through the care, guidance and support of all staff members and the building of close links in a three-way partnership between the school, the pupil and parents. PACT encourages pupils to explore, discover and develop their particular skills and talents to the full whether in the academic field, sport, art or music and to find the fulfilment and self-esteem necessary to enhance their lives. The schools aim to develop the values of respect and compassion while encouraging self-reliance and independence. PACT prepares pupils for life in the wider world by developing them as well-rounded individuals, comfortable with their peers, elders and themselves, able to appreciate their talents, eager to realise their potential and confident in meeting new challenges.

The objectives and the progress of the charity and schools to meet them are subject to reporting and monitoring at Board and Executive Committee meetings, and through specific academic and ethos committees. PACT’s unique partnership-with-parents education model also brings regular feedback to Heads and governors.

In implementing our strategy we have:

• Undertaken a market analysis study for each school to ascertain where it sits in its market, where it can improve, what the future prospects are for each school and re-acted according to this plan.

• In addition to the above a full financial study has been made of each school, not just for the immediate future but looking at the prospects of the schools over the following 10 years and ensuring we have a realistic plan against which to hold ourselves.

• Continued a disciplined approach to reviewing Policies and Statutory Requirements so that the schools remain compliant.

• Sought to benefit the public through the implementation of the charity’s stated aims: the fees for each of the schools are set at a level to ensure financial viability while allowing the charity to pursue its strategy.

• We have continued to find private sponsorships to support us in our aims to make our schools reachable despite financial circumstances of families.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Objectives and activities (continued)

d. Discounts

PACT has a discount policy. It is important to PACT that access to the education offered by its schools is not restricted to those who can afford the fees. Bursaries are means tested to ensure that financial help is provided to those families which need it. To give practical support to the value PACT places on continuity for families, PACT also operates a family discount policy.

In addition to this the secondary schools offer Academic, Music, Art & Sporting Scholarships for those who excel.

It is often important for parents hoping to send their children to a PACT school that they are able to spread their fees payments across the term and so a plan is in place for termly fees to be taken in instalments across three months.

In order that PACT can recruit and retain high calibre staff, PACT offers a discount scheme for staff that choose to educate their children at any of PACT’s schools.

e. Volunteers

Encouraged by PACT’s aim to operate its schools in partnership with the parents of each child, PACT continues to be assisted in its work by a large number of parent volunteers. Of the 10 governor’s serving during the year, two are parent volunteers, and an additional two used to be in recent years. Volunteers perform a range of tasks helping the schools to work towards the aims of the charity including supporting class teachers and teaching assistants on offsite excursions and running extra-curricular sessions on particular areas of interest. The Parental Activity Teams in each school run various activities throughout the school year including family barbecues, family fun days, the parents’ dinner and Quiz night, as well as supporting the school by providing refreshments on various school occasions. They also fundraise to support school projects and other charities. Volunteer class coordinators also help the Heads arrange class discussions throughout the year.

Achievements and performance

a. Academic

Oakwood improved to reach 21[st] place in The Times Top 100 Preparatory Schools with excellent academic results. The ranking is testament to the academic achievement of the schools, especially when you bear in mind this is a non selective school.

COVID-19 has brought significant disruption to students and schools generally, despite this we have seen fantastic performance with 82.1% of grades awarded to A Level Students at The Laurels being between A* - B grades..

The Cedars also saw 100% of A levels awarded a pass grade and students achieving places at top Universities including the University of Navarre and Notre Dame University.

b. The Arts

A large proportion of pupils learn at least one musical instrument and are encouraged to perform at regular musical events. Choral singing, verse speaking, LAMDA and music exams and school dramatic productions continue to be an important part of the all-round education offered by the PACT schools, which also promote the children’s skills and general confidence. Peripatetic music teaching covers a variety of instruments, including brass, drums, cello, guitar, piano and violin. All children in Year 6 learn about harmonics through ukulele lessons and lower juniors take recorder lessons. Our Secondary schools have various choirs and orchestras.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance (continued)

c. Sport

PACT school sport is about participation, competitiveness and good sportsmanship and is an important part of a PACT all-round education. Pupils take part in a wide variety of sporting activities including football, rugby, netball, cricket, rounders, cross-country running, gymnastics, athletics, karate, fencing, swimming, squash, hockey and tennis. Competitions are arranged with local schools and The Cedars reputation in the sporting arena is known as being well above what would be expected for a small school.

d. Community service

PACT sees understanding charitable needs and fund raising for charities as an important part of developing the whole child and their sense of Christian mission and values, especially in acknowledging that there are people in the UK and all over the world who are less fortunate than the pupils themselves. While this is stressed throughout the year, there is a particular focus on charitable giving during Advent and through various Lenten appeals.

PACT regularly provides talks, workshops and other activities for parents, wider family and members of the community on issues connected with the development of character in accordance with Christian principles.

Despite the economic uncertainty we face, our schools continue to grow in terms of student numbers across all schools – annual growth is an average of 10% year on year across the schools. The Board is not complacent and will continue to monitor market activities so we can react and ensure the schools survive this period of uncertainty.

e. Public benefit

PACT’s objectives are set to reflect the educational aims and ethos of the schools. In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to the guidance on advancing education and on fee-charging. The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. Based on the average stated cost to the taxpayer (of £6,400 per pupil), of providing education in the maintained school sector, PACT estimates that those parents who choose to send their children to PACT schools are contributing to a saving for taxpayers generally, and thus creating an annual benefit to the public of over £3.2 million.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Financial review

a. Going concern

The board of trustees confirms that, having considered its expectations and intentions for the next twelve months and the availability of working capital, the charity is a going concern. An embedded 10 year plan is followed and we are currently exceeding expectations against this. The trustees are unaware of any events, conditions, or related business risks beyond the period of assessment that may cast significant doubt on the charity’s ability to continue as a going concern.

In making this assessment the trustees have considered the working capital requirements of the business for a period of at least 12 months from the date of the approval of these financial statements and the ability of the charity to meet its liabilities as they fall due. The Trustees have prepared forecasts and considered future development plans for the charity, income anticipated from school fees and other sources, anticipated capital and operational expenditure, availability of bank and other loan finance, the ability to renegotiate or defer payments on loan finance, and their expectation regarding donations and other funding.

b. Reserves policy

The trustees have reviewed the Reserves Policy. The charity continues to invest substantial sums into its buildings and for the provision of educational equipment. The majority of funds are invested in the tangible fixed asset properties. The trustees continue to be satisfied that external financial facilities provide an additional and adequate safety net, if it should be required.

To ensure the financial stability of the schools, the trustees believe that, as a minimum, reserves should be held which are capable of paying for the running costs of all PACT schools for one term and therefore are aiming to build cash reserves out of future surpluses to a level of approximately £1 million. At 31 August 2022 PACT had free reserves (current liabilities) of £(1,682,857) which is someway below the desired level. The Trustees are working to ensure the charity can move towards the desired level in the medium term.

All expenditure during the year has been incurred to enhance the personalised education of children and their character development to achieve the objectives set out above.

c. Principal funding

The charity's primary source of funds is school fees from parents, although funding is received in donatons from private individuals. Funding from school fees is used to support the charity in its primary day to day operations whilst the use of donation funding is determined by the wishes of the individual donors (where specific wishes are expressed) or in a wider scope of activities where no details are given by the donor.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

d. Financial review of the year including key performance indicators

Income for the year ended 31 August 2022 increased to £7,182,981 (2021: £5,137,076) reflecting increased pupil numbers and a profit on disposal of properties of £1,774,836.

Expenses for the year ended 31 August 2022 increased to £7,640,191 (2021: £5,538,128). This is partly attributable to the rise in pupil numbers which has resulted in increases in the majority of expenses throughout the year and partly to do with an amortisation charge of £1,208,950 arising on the purchase of the subsidiary. The charity's net increase in cash was £17,002.

At 31 August 2022, the parent charity had net assets of £5,795,650 (2021: £6,288,182) comprising a surplus of £30,994 (2021: £30,994) of restricted funds and £5,764,656 (2021: £6,257,188) of unrestricted funds. Included within unrestricted funds are balances relating to the revaluation of property, totalling £nil (2021: £7,311,107).

The Trustees continue to believe that the key performance indicators are growth in pupil numbers from year to year. Oliver House closed during the year, but The Cedars saw a growth in pupil numbers of 16%.

The charity's funds are held in current and interest-bearing Business Premium accounts. The Board of Trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligation in respect of each fund.

Structure, governance and management

a. Constitution

PACT Educational Trust Limited is a charitable company limited by guarantee. The charity is also known as PACT. The trustees are directors of the company and governors of the schools and the terms are used interchangeably in this report unless specific reference is made.

PACT operates in accordance with its Memorandum and Articles of Association dated 29th February 1996 as amended on 21st November 2007. There are three schools under the PACT group umbrella. The preparatory school – Oakwood in Lloyd Park, Croydon (OW) – teaches children aged 3-11 years. The two Secondary Schools are co-located in Upper Norwood – The Laurels teaches girls aged 11 – 18 and The Cedars teaches boys aged 11 – 18 years.

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PACT EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

(A company limited by guarantee)

Structure, governance and management (continued)

b. Governance and management

The governance structure of the schools is designed to ensure the financial stability and future success of all three schools. The board focuses on:

• fundraising;

• governance;

• long-term strategy; and

• safeguarding and compliance.

The Board of governors of PACT meets at least once a term to:

• review, discuss and approve policies for each school;

• develop strategic plans;

• oversee the raising of funds for the development of PACT and its schools;

• review and enhance governance processes;

• deal with the appointment of PACT board members;

• the annual PACT budget and capital investment plans are approved by the finance committee which is a subcommittee of the board.; and

• approve senior appointments;

Each PACT school has an Executive Committee meeting at least once a term, consisting of the CEO, relevant school Director, Head-Teacher and their Senior Management Team (SMT). These support the Heads in their demanding jobs, with the day-to-day running of the schools being delegated to them and their SMT.

Additionally, the board convenes a Finance Committee to provide oversight of the charity’s finances. A director, currently Alexander Alting von Geusau, chairs the committee and is joined by another board member with financial expertise, the Chair and the CEO. Moving into academic year 2022/23 Peter Millington will head up the finance committee – he has been a member of this committee for 4 years now so the step up is a natural one. The committee is convened at least once a term and meets more frequently when needed, especially in the runup to preparing and finalising the budget.

The academic year 2022/23 will see some changes to the structure of the Board. Many Board members have been in place for a number of years and PACT feel it is healthy to rotate Board members to ensure the company continues to evolve and develop in line with its published objectives. Fundacion Parentes (FP) has supported PACT in the past and last financial year put forward funding for the MUGA as Oakwood moved to its new site in Lloyd Park – with a refresh of the Board the opportunity arose for PACT to further solidify its links with FP. In addition, subsequent to the year end, FP has extended the charity a loan for €1 million.

Moving forward PACT will have a Board of school governors who will be responsible for all matters relating to safeguarding and school policy – they will be directly responsible to the Charity Trustees who will provide strong financial guidance and leadership. Charity Trustees will generally not cross over with the school governor Board and some of these members will also be members of FP. PACT company articles will be updated to confirm this amendment to the structure.

The day-to-day management of the charity is delegated to the Chief Executive Officer. Mrs Bernadette Millington currently fills that role and was appointed by the board in July 2018. She is additionally charged with implementing the trustees’ long-term strategic plan and vision for the schools. She works closely with the heads of the schools and their senior management teams. Working together, the Heads and CEO:

• manage the PACT budget for each school on a month-by-month basis;

• appoint staff;

• deal with those matters affecting staff where the Heads have sought assistance; and

• • deal with all on-going practical issues and decision making.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

Additionally, besides managing the central finance office, the CEO provides leadership in the following day-today operational management functions:

• Estates;

• Human Resources;

• Information Technology; and

• Marketing.

Oakwood is a member of the Independent Association of Preparatory Schools which provides an opportunity to share expertise, knowledge and experience across the independent school sector. Both The Laurels and The Cedars are accredited members of the Independent Schools Association. The Catholic Independent Schools’ Conference also provides valuable support to the Heads of all three schools.

c. Organisational structure and decision-making policies

The charity is governed by the Board of governors, who are also the company directors and charity trustees, and consists, for the period under review, of three schools, Oakwood School in Lloyd Park, Croydon, The Cedars School in Upper Norwood, Croydon and The Laurels School in Upper Norwood, Croydon. This academic year saw all schools operating from new and larger premises but despite these moves saw an increase in student numbers.

The Board of governors requires breadth and depth of experience in order to carry out its duties effectively and efficiently. When recruiting new trustees it is considered essential that they have an understanding of and support for PACT’s specific educational ethos and a genuine enthusiasm to engage in an environment where character development and personalised education is of the utmost importance. Potential new trustees are identified during discussions of the Board and then an interview process is pursued with each candidate to assess suitability.

Reflecting on the skills and experience necessary for effective governance and management, the governors deem that the Board should at a minimum comprise the following:

• one governor with a financial or accounting background;

• one with education experience;

• another with senior management or business experience;

• one for each school, each with direct knowledge of their specific school.

All the directors of the company are also trustees of the charity, and their responsibilities include all the responsibilities of directors under the Companies Acts and of trustees under the Charities Acts.

d. Policies adopted for the induction and training of Trustees

New governors are provided with a comprehensive pack setting out the objects of the charity, its policies and procedures, its annual accounts and other relevant materials. They are trained through discussions with long standing existing governors, members of the senior management teams at each of the schools and through the very open discussions held during Board and Executive Committee meetings. Governors are expected to regularly dedicate time to their duties as a member of the Board.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

e. Risk management

The Board of governors is responsible for the management of risks faced by the schools. Detailed consideration of risks is delegated to the CEO and Senior Management Teams in each school. Risks are identified and assessed, and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on a bi-annual basis and in response to immediate risks which may arise. This monitoring process looks at the effectiveness of the system of internal controls and other viable means of avoiding risk and assists the governors to put in place insurance cover where appropriate. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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 Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

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

• so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.

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PACT EDUCATIONAL TRUST UMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Approved by order of the members of the board of Trvslees and s￿ned on Ihwr behalf by". D G Guillon Trustee Date.. Page 11

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED

FOR THE YEAR ENDED 31 AUGUST 2022

Opinion

We have audited the financial statements of PACT Educational Trust Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2022 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the company 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 of the parent charitable company's affairs as at 31 August 2022 and of the Group's incoming resources and application of resources, including its income and expenditure 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 Companies Act 2006.

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 Group 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 Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; 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.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Charities Act 2011, the Companies Act 2006, taxation legislation and data protection, safeguarding, employment and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested a sample of journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims.

Page 14

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Auditor's responsibilities for the audit of the financial statements (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Hart FCA CTA (senior statutory auditor)

for and on behalf of

Blick Rothenberg Audit LLP Chartered Accountants Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH

4 November 2022

Page 15

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note Income from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Other income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Restricted funds 2022 £ - - - - - - - - 30,994 - 30,994	Unrestricted funds 2022 £ 11,995 5,396,150 - 1,774,836 7,182,981 7,640,191 7,640,191 (457,210) 6,257,188 (457,210) 5,799,978	Total funds 2022 £ 11,995 5,396,150 - 1,774,836 7,182,981 7,640,191 7,640,191 (457,210) 6,288,182 (457,210) 5,830,972	Total funds 2021 £ 270,587 4,866,573 (84) - 5,137,076 5,538,128 5,538,128 (401,052) 6,689,234 (401,052) 6,288,182

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

The notes on pages 22 to 45 form part of these financial statements.

Page 16

REGISTERED NUMBER: 03166207

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2022

Note Fixed assets Intangible assets 10 Tangible assets 11 Investments 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Total net assets	147,039 588,417 156,963 892,419 (2,575,276)	2022 £ - 9,221,442 - 9,221,442 (1,682,857) 7,538,585 (1,707,613) 5,830,972	57,702 1,147,509 139,961 1,345,172 (4,543,733)	2021 £ - 14,303,909 1 14,303,910 (3,198,561) 11,105,349 (4,817,167) 6,288,182

Page 17

PACT EDUCATIONAL TRUST UMITED A company limited by guarantee) CONSOUDATED BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Note Charity funds Restricted funds Unrestricted funds 20 30,994 General fvnds Revaluation reserve 20 5.799.978 (1.053,919) 7,311,107 Total unrestricted fund$ 20 5.799.978 6,257,188 Totsl funds 5.830,972 6,288,182 The Trustees acknowledge their responsibilities compty'tng with the requirements of the Ad with respect to accounting records and preparion of financ￿1 $tements. The financial st*ements were approved and authorised for issue by the Trustees and signed on their behalf by." DGGull Trustee on Date.. The noles on pages 22 to 45 form part of these financial statements. Page 18

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 AUGUST 2022

Note Fixed assets Tangible assets 11 Investments 12 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets excluding pension asset Total net assets	147,039 588,417 121,640 857,096 (2,575,276)	2022 £ 9,221,442 1 9,221,443 (1,718,180) 7,503,263 (1,707,613) 5,795,650 5,795,650	57,702 1,147,509 139,961 1,345,172 (4,543,733)	2021 £ 14,303,909 1 14,303,910 (3,198,561) 11,105,349 (4,817,167) 6,288,182 6,288,182

Page 19

PACT EDUCATIONAL TRUST LIMITED IA company limlted by guarantee) COMPANY STATEMENT OF FINANCIAL POSITION {CONnNUEDI FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Note Charlty funds Restricted funds Unrestricted funds 20 30.994 General funds Revaluation reserye 20 5.764.656 (1,053,919) 7,311,107 Total unrestri¢te<l funds 20 5.764.656 6,257.188 Total funds 5,795.650 6,288,182 The Trustees aeknowEedge th￿r responsibililies for compfyry'ng wrth the requwnents of the Act with resped to accounting records and preparation of financial ststements. The financial statements were 4proved and authoris&J for issue by the Trustees and signed on their behalf by.. D G Guillon Trustee Date.. Z-Z The notes on pages 22 10 45 form part ofthese financial ststements. Page 20

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Purchase of investments Cash acquired on acquistion of subsidiary Net cash provided by/(used in) investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Net cash (used in)/provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 22 to 45 form part of these financial statements	2022 £ (1,552,586) 13,000,000 (6,189,918) (1) 459,087 7,269,168 375,212 (6,074,791) (5,699,579) 17,003 139,961 156,964	2021 £ 1,115,275 - (2,628,778) - - (2,628,778) 2,393,402 (935,507) 1,457,895 (55,608) 195,569 139,961

Page 21

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

PACT Educational Trust Limited 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.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.

The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Company status

The company is a company limited by guarantee and is incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

The address of the registered office and the principal place of business is The Cedars School, Coombe Road, Croydon, CR0 5RD.

Page 22

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies (continued)

1.3 Going concern

The board of trustees confirms that, having considered its expectations and intentions for the next twelve months and the availability of working capital, the charity is a going concern. Following the impact of COVID-19 on the business the trustees undertook a thorough review of the schools within the group and as a result of this took action to ensure the schools could enjoy a stable financial future. The unfortunate outcome of this was the closure of Oliver House School which was seen to have significant operational issues which we could not resolve. On the final completion of Oliver House and old Oakwood site assets the overall cost of estates will be greatly reduced whilst also providing for growth for each of the schools. Financial controls continue to be strong within the trust and are regularly reviewed so as to ensure changes are implemented as and when required. As a result of these steps the trustees feel they are prepared for the next twelve months. The trustees are unaware of any events, conditions, or related business risks beyond the period of assessment that may cast significant doubt on the charity’s ability to continue as a going concern.

The Trustees have prepared forecasts and considered future development plans for the charity, income anticipated from school fees and other sources, anticipated capital and operational expenditure, availability of bank and other loan finance, the ability to renegotiate or defer payments on loan finance, and their expectation regarding donations and other funding. Subsequent to the year end, the charity received a loan of €1 million from Fundacion Parentes.

In making this assessment the trustees have considered the working capital requirements of the business for a period of at least 12 months from the date of the approval of these financial statements and the ability of the charity to meet its liabilities as they fall due. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

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

Page 23

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies (continued)

1.5 Income

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

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

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school. Fees received in advance of education being provided are held as deferred income within liabilities until either taken to income in the academic year to which it relates or refunded.

1.6 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to activities.

All expenditure is inclusive of irrecoverable VAT.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed asset and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land.

Page 24

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies (continued)

1.7 Tangible fixed assets and depreciation (continued)

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

Depreciation is provided on the following basis:

Freehold property	-	2% straight line
Long-term leasehold property	-	4% straight line
Motor vehicles	-	25% straight line
Fixtures and fittings	-	10% straight line
Computer equipment	-	25% straight line

1.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.9 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.

1.10 Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

1.11 Taxation

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

Page 25

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies (continued)

1.12 Financial instruments

The company 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.

The Group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

The Group’s policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including trade and other debtors, and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Other financial assets, including investments in equity instruments relating to subsidiaries are initially measured at fair value, which is normally the transaction price which excludes transaction costs for those financial assets that are subsequently measured at fair value through profit and loss.

Financial liabilities

Basic financial liabilities, including trade and other creditors, other loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Concessionary loans

Concessionary loans are initially recorded at the consideration received and are subsequently held at amortised cost based on the implied interest rate of the loan.

Page 26

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. Accounting policies (continued)

1.13 Pensions

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

Retirement benefits to teaching staff of the charity are provided by the Teachers' Pension Scheme ("TPS"). This is a defined benefit scheme and the assets are held separately from those of the academy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit scheme accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions payable are recognised in the period to which they relate.

1.14 Parental deposits

Parents pay a deposit on accepting a place for their child and this money is returned subject to offset of outstanding costs after their child leaves the school. Parental deposits are included in creditors and have been applied assuming that pupils remain in the school until completion of their final year.

2. Income from donations and legacies

Donations Government grants Total 2021	Restricted funds 2022 Unrestricted funds 2022 £ £ - 11,995 - - - 11,995 15,000 255,587	Total funds 2022 £ 11,995 - 11,995 270,587	Total funds 2021 £ 204,310 66,277
			270,587

Page 27

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

3. Income from charitable activities Unrestricted funds 2022 £ Education 5,396,150 Total 2021 4,866,573 4. Income from other trading activities Income from fundraising events Unrestricted funds 2022 £ Fundraising - Total 2021 (84) 5. Other incoming resources Unrestricted funds 2022 £ Profit on disposal of fixed assets 1,774,836	Total funds 2022 £ 5,396,150 4,866,573 Total funds 2022 £ - (84) Total funds 2022 £ 1,774,836	Total funds 2021 £ 4,866,573 Total funds 2021 £ (84) Total funds 2021 £ -

Page 28

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

6. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2022 £ Education 7,640,191 Total 2021 5,538,128	Total funds 2022 £ 7,640,191 5,538,128	Total funds 2021 £ 5,538,128

7. Analysis of expenditure by activities

Education Total 2021	Activities undertaken directly 2022 £ 7,640,191 5,538,128	Total funds 2022 £ 7,640,191 5,538,128	Total funds 2021 £ 5,538,128

Page 29

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs Depreciation and amortisation Finance costs Scholastic supplies Canteen costs Trips & travel Marketing, PR & advertising Staff related expenditure Property costs General and administrative costs Legal and professional fees Insurance Charitable donations Fundraising Governance costs Total 2021	Education 2022 £ 3,760,600 1,356,337 327,176 142,927 304,099 283,625 28,884 20,826 644,369 313,463 301,294 130,251 108 - 26,232 7,640,191 5,538,128	Total funds 2022 £ 3,760,600 1,356,337 327,176 142,927 304,099 283,625 28,884 20,826 644,369 313,463 301,294 130,251 108 - 26,232 7,640,191 5,538,128	Total funds 2021 £ 3,885,973 156,826 125,935 97,379 226,099 25,320 22,325 27,815 615,402 237,890 12,561 82,150 - 156 22,297
			5,538,128

8. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	Group 2022 £ 3,005,008 295,260 460,332 3,760,600	Group 2021 £ 3,118,744 291,931 475,298 3,885,973	Company 2022 £ 2,778,576 272,312 418,546 3,469,434	Company 2021 £ 3,118,744 291,931 475,298
				3,885,973

Page 30

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

8. Staff costs (continued)

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

Teaching Non teaching	Group 2022 No. 47 39 86	Group 2021 No. 67 26 93	Company 2022 No. 47 39 86	Company 2021 No. 67 26
				93

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		Group	Group
		2022	2021
		No.	No.
In the band £60,001	- £70,000	3	2
In the band £70,001	- £80,000	1	3
In the band £90,001	- £100,000	1	1

The key management personnel of the charity comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the charity was £462,365 (2021: £483,097).

9. Net income/(expenditure)

This is stated after charging:

Depreciation of tangible fixed assets: owned by the charity Auditor's remuneration - audit	2022 £ 142,792 25,287 168,079	2021 £ 156,826 24,000
		180,826

During the year, no Trustees received any remuneration (2021 - £NIL). During the year, no Trustees received any benefits in kind (2021 - £NIL). During the year, no Trustees received any reimbursement of expenses (2021 - £NIL).

Page 31

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Intangible assets Group Cost On acquisition of subsidiaries At 31 August 2022 Amortisation Impairment charge At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 Details of business combinations giving rise to intangible assets are found in note 19.	Goodwill £ 1,208,950
	1,208,950
	1,208,950
	1,208,950
	-
	-

Page 32

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. Tangible fixed assets

Group

Cost or valuation At 1 September 2021 Additions On acqusition of subsidiaries Disposals Transfers between classes At 31 August 2022 Depreciation At 1 September 2021 Charge for the year On disposals Transfers between classes At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Freehold property £ 13,654,109 3,481,101 - (11,764,639) 325,982 5,696,553 2,431,064 37,494 (624,291) 44,795 1,889,062 3,807,491 11,223,045	Long-term leasehold property £ 325,982 121,479 - - 4,556,597 5,004,058 44,795 51,805 - (44,795) 51,805 4,952,253 281,187	Motor vehicles £ 66,646 - - - - 66,646 66,646 - - - 66,646 - -	Fixtures and fittings Assets in the course of construction £ £ 853,494 2,568,244 180,756 2,406,581 65,763 - (212,251) - - (4,882,579) 887,762 92,246 622,061 - 53,493 - (157,244) - - - 518,310 - 369,452 92,246 231,433 2,568,244	Total £ 17,468,475 6,189,917 65,763 (11,976,890) - 11,747,265 3,164,566 142,792 (781,535) - 2,525,823 9,221,442 14,303,909

Page 33

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. Tangible fixed assets (continued)

Company

Cost or valuation At 1 September 2021 Additions On acquistion of subsidiaries Disposals Transfers between classes At 31 August 2022 Depreciation At 1 September 2021 Charge for the year On disposals Transfers between classes At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Freehold property £ 13,654,109 3,481,101 - (11,764,639) 325,982 5,696,553 2,431,064 37,494 (624,291) 44,795 1,889,062 3,807,491 11,223,045	Long-term leasehold property £ 325,982 121,479 - - 4,556,597 5,004,058 44,795 51,805 - (44,795) 51,805 4,952,253 281,187	Motor vehicles £ 66,646 - - - - 66,646 66,646 - - - 66,646 - -	Fixtures and fittings Assets in the course of construction £ £ 853,494 2,568,244 180,756 2,406,581 65,763 - (212,251) - - (4,882,579) 887,762 92,246 622,061 - 53,493 - (157,244) - - - 518,310 - 369,452 92,246 231,433 2,568,244	Total £ 17,468,475 6,189,917 65,763 (11,976,890) - 11,747,265 3,164,566 142,792 (781,535) - 2,525,823 9,221,442 14,303,909

Page 34

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. Fixed asset investments

Company Cost or valuation Additions At 31 August 2022 Net book value At 31 August 2022	Investments in subsidiary companies £ 1
	1
	1

13. Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal Principal activity number place of business The Laurels School Limited 08555840 The Cedars, Coombe Road, Provision of Education Croydon, CR0 5RD Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name	Income	Expenditure	Profit/(Loss)	Net assets
	£	£	/ Surplus/	£
			(Deficit) for
			the year
			£
The Laurels School Limited	364,515	463,918	(99,403)	(1,304,798)

Page 35

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. Stocks School uniform stock 15. Debtors Due within one year Trade debtors Other debtors Prepayments and accrued income Grants receivable	Group 2022 £ 147,039 Group 2022 £ 529,157 - 59,260 - 588,417	Group 2021 £ 57,702 Group 2021 £ 335,589 751,615 59,488 817 1,147,509	Company 2022 £ 147,039 Company 2022 £ 529,157 - 59,260 - 588,417	Company 2021 £ 57,702
				Company 2021 £ 335,589 751,615 59,488 817
				1,147,509

Page 36

PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Creditors: Amounts falling due within one year

Bank loans Other loans Payments received on account Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 September 2021 Resources deferred during the year Amounts released from previous periods	Group 2022 £ - 819,076 80,510 197,599 349,174 126,572 1,002,345 2,575,276 Group 2022 £ 507,688 573,793 (507,688) 573,793	Group 2021 £ 2,275,000 834,872 130,121 296,903 73,007 168,272 765,558 4,543,733 Group 2021 £ 281,899 479,347 (253,558) 507,688	Company 2022 £ - 819,076 80,510 197,599 349,174 126,572 1,002,345 2,575,276 Company 2022 £ 507,788 573,793 (507,788) 573,793	Company 2021 £ 2,275,000 834,872 130,121 296,903 73,007 168,272 765,558 4,543,733 Company 2021 £ 281,999 479,347 (253,558) 507,788

Deferred income at the reporting date represents school fees received during the year which relates to the academic year commencing 1 September 2022.

The bank and other loans are secured by fixed and floating charges over the charity's properties.

Included within other creditors are unpaid pension contributions of £124,172 (2021: £57,315).

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. Creditors: Amounts falling due after more than one year

Bank loans Other loans Other creditors	Group 2022 £ - 1,393,263 314,350 1,707,613	Group 2021 £ 2,550,592 1,992,713 273,862 4,817,167	Company 2022 £ - 1,393,263 314,350 1,707,613	Company 2021 £ 2,550,592 1,992,713 273,862
				4,817,167

Other loans also include loans from individuals and Trustees bearing interest from 0% to 3% per annum. Details of loans provided by Trustees are given in note 28. As these loans are provided at below the revailing market rate of interest and are for the purposes of furthering the objectives of the charity, these loans are considered to be concessionary loans.

The other loans are secured by fixed and floating charges over the charity's properties.

18. Financial instruments

Financial assets Financial assets measured at fair value through income and expenditure Financial assets that are debt instruments measured at amortised cost Financial liabilities Financial liabilities measured at amortised cost	Group 2022 £ 1 529,157 529,158 Group 2022 £ 3,280,544	Group 2021 £ 1 1,088,021 1,088,022 Group 2021 £ 8,595,342	Company 2022 £ 1 1,869,278 1,869,279 Company 2022 £ 3,280,544	Company 2021 £ 1 1,088,021
				1,088,022
				Company 2021 £ 8,595,342

Financial assets measured at fair value through income and expenditure comprise investments.

Financial assets measured at amortised cost comprise trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise bank and other loans, parental deposits, trade creditors and other creditors.

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. Business combinations

On 22/04/2022, the Company acquired The Laurels School Limited for £ cash.

On 22/04/2022, the Company acquired The Laurels School Limited for £		1, which	was settled in
cash.
		Fair value
	Book value	adjustments	Fair value
	£	£	£
Fixed Assets
Tangible	45,185	-	45,185
	45,185	-	45,185
Current Assets
Debtors	31,013	-	31,013
Cash at bank and in hand	459,087	-	459,087
Total Assets	535,285	-	535,285
Creditors
Due within one year	(1,744,234)	-	(1,744,234)
Total Identifiable net liabilities	(1,208,949)	-	(1,208,949)
Goodwill			1,208,950
Total purchase consideration			1
The goodwill arising on acquisition has been written off in the year.
The results of The Laurels School Limited since acquisition are as follows:
			Current
			period since
			acquisition
			£
Revenue			364,515
Loss for the period since acquisition			(99,403)

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20. Statement of funds

Statement of funds - current year

Unrestricted funds General Funds - all funds Revaluation reserve Restricted funds Restricted Funds - all funds Total of funds	Balance at 1 September 2021 £ (1,053,919) 7,311,107 6,257,188 30,994 6,288,182	Income £ 7,182,981 - 7,182,981 - 7,182,981	Expenditure £ (7,640,191) - (7,640,191) - (7,640,191)	Transfers in/out £ 7,311,107 (7,311,107) - - -	Balance at 31 August 2022 £ 5,799,978 -
					5,799,978
					30,994
					5,830,972

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds General Funds - all funds Revaluation reserve Restricted funds Restricted Funds - all funds Total of funds	Balance at 1 September 2020 £ (637,867) 7,311,107 6,673,240 15,994 6,689,234	Income £ 5,122,076 - 5,122,076 15,000 5,137,076	Expenditure £ (5,538,128) - (5,538,128) - (5,538,128)	Balance at 31 August 2021 £ (1,053,919) 7,311,107 6,257,188 30,994 6,288,182

21. Summary of funds Summary of funds - current year

General funds Restricted funds	Balance at 1 September 2021 £ 6,257,188 30,994 6,288,182	Income £ 7,182,981 - 7,182,981 Balance at 1 September 2020 £ 6,673,240 15,994 6,689,234	Expenditure £ (7,640,191) - (7,640,191) Income £ 5,122,076 15,000 5,137,076	Transfers in/out £ - - - Expenditure £ (5,538,128) - (5,538,128)	Balance at 31 August 2022 £ 5,799,978 30,994 5,830,972 Balance at 31 August 2021 £ 6,257,188 30,994 6,288,182
Summary of funds - prior year
General funds Restricted funds

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total Analysis of net assets between funds - prior year Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total	Restricted funds 2022 Unrestricted funds 2022 £ £ 30,994 9,190,448 - 892,419 - (2,575,276) - (1,707,613) 30,994 5,799,978 Restricted funds 2021 Unrestricted funds 2021 £ £ 30,994 14,272,915 - 1 - 1,345,172 - (4,543,733) - (4,817,167) 30,994 6,257,188	Total funds 2022 £ 9,221,442 892,419 (2,575,276) (1,707,613) 5,830,972 Total funds 2021 £ 14,303,909 1 1,345,172 (4,543,733) (4,817,167) 6,288,182

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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

Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges Profit on the sale of fixed assets Increase in stocks (Increase)/decrease in debtors Decrease in creditors Interest accrued not paid Net cash provided by/(used in) operating activities 24. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 25. Analysis of changes in net debt At 1 September 2021 £ Cash at bank and in hand 139,961 Debt due within 1 year (3,109,872) Debt due after 1 year (4,543,305) (7,513,216)

Group Group 2022 2021 £ £ (457,210) (401,052) 142,792 156,826 1,208,950 - (1,774,836) - (89,337) (26,341) (945,772) 1,115,593 362,827 259,739 - 10,510 (1,552,586) 1,115,275 Group Group 2022 2021 £ £ 156,964 139,961 156,964 139,961 Cash flows At 31 August 2022 £ £ 17,002 156,963 2,290,796 (819,076) 3,150,042 (1,393,263) 5,457,840 (2,055,376)

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

26. Pension commitments

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

• employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy)

• • total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million

• the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.

The next valuation result is due to be implemented from 1 April 2023.

The employer’s pension costs paid to TPS in the period amounted to £415,487 (2021: £429,557).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The school has accounted for its contributions to the scheme as if it were a defined contribution scheme. The school has set out the above information available on the scheme.

Stakeholder pension scheme

The charity operates a defined contribution scheme for the benefit of its non-teaching employees. Contributions payable are charged to the profit and loss account in the year they are payable. Contributions payable to the pension scheme during the year were £44,845 (2021: £45,741).

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PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

27. Operating lease commitments

At 31 August 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	Group 2022 £ 10,000 40,000 7,300,164 7,350,164	Group 2021 £ 240,000 960,000 3,905,800
		5,105,800

28. Related party transactions

Owing to the nature of the charity's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trustees have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the charity's financial regulations and normal procurement procedures..

Transactions with related parties are as follows:

				Amount due (to)/from	Amount due (to)/from
Relationship	Transaction	Amount		related parties
		2022	2021	2022	2021
		£	£	£	£
Trustees	Donations	-	600	-	-
	Interest free loans	(80,000)	130,000	(50,000)	(130,000)
Charities with common	Interest free loan	284,019	-	(1,051,732)	(767,713)
Trustees
	Rental payments	140,000	240,000	-	-
The Laurels School Limited	Sub-lease	-	174,000	-	-
	payments
(subsidiary)	Management fees	83,333	39,996	-	(104,127)
	Loan	-	-	1,340,121	750,000

The loans from Trustees are secured by fixed charges over the charity's properties.

29. Controlling party

The board of trustees is the controlling party.

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