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← The Babraham Institute

2025-03-31-accounts

Commercial in Confidence

The Babraham Institute (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements

Year Ended

31 March 2025

Company Number 03011737

Charity Number 1053902

Commercial in Confidence

THE BABRAHAM INSTITUTE

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

CONTENTS

PAGE: ANNUAL REPORT

2 Officers and professional advisers 3 Report of the trustees (incorporating the Strategic Report)

PAGE:

28

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PAGE: FINANCIAL STATEMENTS

32 Consolidated statement of financial activities 33 Balance sheets 34 Consolidated statement of cash flows 35 Notes forming part of the financial statements

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OFFICERS AND PROFESSIONAL ADVISERS

TRUSTEES Prof Dame Linda Partridge FRS (Chair)
Mr Graham Allen
Prof Gordon Brown FRS
Prof Petra Hajkova
Prof Paul Lehner FRS
Mr Timothy Livett
Mr John Macey
Ms Alexandra Pygall
Prof Helen Walden
Dr John Wells
MEMBERS Chairman Babraham Institute Board - Prof Dame Linda Partridge FRS
Chairman Babraham Institute Audit Committee - Mr Timothy Livett
UKRI-BBSRC Corporate Member - Prof Anne Ferguson-Smith FRS
SECRETARY Mr Simon Jones
REGISTERED OFFICE Babraham Institute
Babraham Hall
Babraham
Cambridge
CB22 3AT
AUDITOR Grant Thornton UK LLP
8 Finsbury Circus
London
EC2M 7EA
BANKERS Lloyds Bank Plc
4th Floor
25 Gresham Street
London
EC2V 7HN
INTERNAL AUDITORS RSM Risk Assurance Services LLP
The Pinnacle
4th Floor
100 Avebury Boulevard
Milton Keynes
Buckinghamshire
MK9 1FH
INVESTMENT BANK Royal Bank of Canada
100 Bishopgate
London
EC2N 4AA
REGISTERED COMPANY NUMBER: 03011737

CHARITY REGISTRATION NUMBER : 1053902

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REPORT OF THE TRUSTEES (INC THE STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025

charity and its subsidiaries for the year ending 31 March 2025 which are also prepared to meet the requirements for a port and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY

LEGAL STATUS

(registered charity in England and Wales number 1053902; a company limited by guarantee, registered in England and Wales number 03011737), present their report together with the audited financial statements for the year ended 31 March 2025. The charity is governed by a Memorandum and Articles of Association adopted 24 June 2011, and its Institute Grant Agreement with the Biotechnology and Biological Sciences Research Council (UKRI-BBSRC) by whom it is strategically funded. UKRI-BBSRC is part of UK Research and Innovation (UKRI), a body working in partnership with universities, research organisations, businesses, charities and government.

The charity has two trading subsidiaries: Babraham Research Campus Limited (BRCL) (Registered in England and Wales number 03241492) and Babraham Institute Enterprise Limited (BIE) (Registered in England and Wales number 06331858); The principal and registered offices for all companies within the group is : Babraham Hall, Babraham Research Campus, Babraham, Cambridgeshire, CB22 3AT.

PRINCIPAL ACTIVITY

The principal activity of the group and the charitable company, as set out in the Memorandum and Articles of Association, is undertaking fundamental research; the dissemination of the results of such research for public and economic benefit and the trainin health and healthy ageing through frontier research into molecular and cell biology and development. The chief funder of the Institute is UKRI-BBSRC.

BRCL has management and development responsibilities for the Babraham Research Campus to ensure the Campus provides both the buildings and communal environment to benefit all the organisations on Campus. Its principal activities focus on supporting early stage companies and growing biomedical enterprises. This is delivered through the provision of specialised facilities and specialist equipment which is overseen by the Institute), and to support a research-centric community helping translate early stage science into products and services.

through partnerships with industry, licencing activities, and the formation of spin-out companies. BIE also manages consultancies of BI scientists and facilitates access to -edge scientific facilities for companies both on and off the Babraham Research Campus, thereby supporting the life science industry.

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STRUCTURE, MANAGEMENT AND GOVERNANCE

BOARD OF TRUSTEES

Up to and including the year ended 31 March 2025, the Board of Trustees consisted of up to eleven individuals who acted as trustees and directors and are all guarantors of the charitable company, of an amount not exceeding £1, during the period of their appointment and for a year after resignation.

The following were members of the Board of Trustees during the year:

Prof Dame Linda Partridge FRS Mr Graham Allen Dr James Briscoe FRS resigned 12 March 2025 Prof Gordon Brown FRS Prof Petra Hajkova # Prof Paul Lehner FRS Mr Timothy Livett # Mr John Macey Ms Alexandra Pygall # Prof Helen Walden Dr John Wells #

Denotes members of the Audit Committee as of 31 March 2025.

Membership of the charity consists of two Trustee Members ( ex officio the Chair of the Board of Trustees and the Chair of the Audit Committee) and one Corporate Member, UK Research and Innovation (UKRI).

recruitment agency and open application. A shortlist is compiled after review of submitted applications and shortlisted candidates are interviewed by at least the Chairman and a selection of other Trustees. Following interviews, new Trustees are appointed by the interviewing Trustees with delegated authority from the Board. Trustees are appointed for a period of up to four years from the date of appointment (usually three) and are eligible for re-appointment at the end of their term. None of the Board of Trustees holds any interest in the shares of any of the subsidiary companies.

Trustees are provided with an induction pack containing key information about the Institute, participate in a face-to-face introduction to the main operational and scientific areas of the Institute, and are offered training in trusteeship by one of the recognised training providers in this area. Most Trustees also take the opportunity to visit the Institute and meet with its wider staff, outside of a formal Board of Trustees meeting.

Separate Audit Committees operate during the year for the Institute and BRCL. Additionally, a joint audit committee is convened annually to ensure proper scrutiny of Group finances and operations and as such incorporates some of the functions of a Finance and General Purposes Committee, although most of such functions are carried out by the Board itself.

The Board delegates the day to day running of the Institute to the senior management team led by Dr Simon Cook as Institute Director.

subsidiaries, Mr Derek Jones, is employed on a BRCL contract. BIE is managed by senior management of the Institute.

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(who are also directors of the Babraham Institute for the purposes of company law) are responsible for law requires the Trustees to prepare financial statements for each financial year.

Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the statements may differ from legislation in other jurisdictions.

COMPLIANCE WITH SECTION 172(1) OF THE COMPANIES ACT 2006

Institute governance dictates that key strategic decisions are made at the Babraham Executive Committee (BEC; chaired by the Director), which responds to advice from the Board of Directors, Scientific Advisory Panel and other key stakeholders including UKRI-BBSRC and other funding agencies. BEC is comprised of senior managers from across all functional areas, bringing a broad perspective of opinions to Institute business.

The Institute is committed to making a positive impact not only on the protection of the environment but to enhance it, while ensuring our research is maintained at a world-class standard. The Institute has developed a bespoke action plan for sustainability, working with UK-SOS, BRCL and several campus companies.

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COMPLIANCE WITH SECTION 172(1) OF THE COMPANIES ACT 2006 (CONTINUED)

The Institute recognises that in order to maintain productive relationships with key stakeholders, the Institute must uphold high standards of business conduct. Operational teams hold and update relevant professional accreditations and undertake continuing personal development to ensure they are

Steering Group, established in 2020, oversees the policies, management systems and processes supporting research integrity at the Institute and aligns its research integrity practises with the principles and standards set out in the UK Research Integrity in the UKRI Policy on the Governance of Good Research Practice.

This focused attention to research integrity matters will enable others to have confidence that our research is founded on f working and to provided assurance that we have robust responses to major strategic, financial and operational risks, we undertake a rotation of internal audits of key business areas.

A biennial research integrity (RI) assurance review assesses and ensures the Institute is achieving the standards set out in the Institute RI policy. It provides structure to RI processes and procedures and acts as a good self-check preparatory process for RI audits [by the Institute auditors (RSM)]. The review included two levels: corporate (overall Institute RI standards) - Executive Committee (BEC) on 11th July 2024 and shared with the Audit Committee and Science and Impact Advisory Committee in the first instance, and will help provide assurance to staff, BEC, Trustees, and grant awarding bodies.

The Institute holds a Silver Athena SWAN award and is one of 164 Member organisations that currently hold Athena SWAN awards in the UK. The Athena SWAN Charter was launched in 2005 to recognise commitment to advancing women's careers in science, technology, engineering, mathematics and medicine (STEMM) employment in higher education. The awards recognise good practice in recruiting, retaining and promoting women in STEMM. The Charter believes that an organisation must have institutional support and underpinning institutional good practice, policies and procedures in place in order to achieve and sustain an award. The group is aware of its statutory duty to support the employment of disabled persons where possible, both in recruitment and by retention of employees who become disabled whilst in the employment of the charity, as well as generally through training and career development. The charity is an equal opportunities employer and supports diversity in the workplace. The Institute follows the principles of .

The Institute has numerous mechanisms to foster relationships with key stakeholders. As the principal funder, relations with UKRI-BBSRC are maintained through many formal interactions. The Institute Director and Chair of the Board of Trustees hold regular partnership meetings with the Chief Executive of the UKRI-BBSRC. In addition, the Directors of all UKRI-BBSRC Institutes meet regularly with UKRI-BBSRC to discuss their strategic alliance. Furthermore, the Chief Operating Officer and senior members of the operations team hold frequent bilateral meetings with their counterparts at UKRI-BBSRC. Both BI and BBSRC are shareholders in the campus development company, BRCL.

As a majority shareholder the Institute maintains close and productive relationships with BRCL management and Board. One area to highlight is in regard to environmental sustainability, where representatives from complementary functional areas, including engineering and facilities management, work collectively to reduce the impact of the campus on the local and wider environment. In addition to this, the Institute and BRCL are working collaboratively on a series of knowledge exchange networking events, have coordinated a successful UKRI-BBSRC Collaborative Training Partnership (CTP) studentship programme and a UKRI-BBSRC Campus Impact Acceleration initiative, which has funded a range of Campus networking and collaborative opportunities. This collaborative working has been significantly enhanced by the creation of cross-institutional roles. Notably, members of the KEC team have engaged in cross-institutional roles, supported by a Royal Society Entrepreneur-in-Residence fellowship for 2024-2026.

Beyond the UKRI-BBSRC, the Institute is part of additional formal and informal networks. For grants running in 2024-2025 the Institute had collaborations with 66 organisations across 18 countries. As part of the EU-LIFE alliance, a collection of independent European research institutes in the life sciences, the Institute plays a key role in building and promoting excellence in the life sciences.

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COMPLIANCE WITH SECTION 172(1) OF THE COMPANIES ACT 2006 (CONTINUED)

Institute scientists all belong to their collaborative research networks, bringing together ideas from across the globe. A notable demonstration is the inception of the UK Proteostasis Network in 2023 by two Institute leads, Dr Della David and Dr Oliver Florey, and two counterparts at the University of Cambridge, Dr Laura Itzhaki, Department of Pharmacology and Dr Ritwick Sawarkar, MRC Toxicology Unit. The Network brings together all career stages of researchers working in proteostasisrelated areas, both from academic and commercial research. The Network held its inaugural conference meeting in May 2024, with over 170 attendees. Over 130 individuals across the UK have registered for updates and communications from the Network and 61 research groups are now

second Network meeting will be held in Dundee in June 2025 in partnership with the Autophagy UK network.

The Institute continues to be committed to the principles of the Modern Slavery Act 2015 and the abolition of modern slavery and human trafficking. Procurement for goods and services is provided by a wide range of suppliers and the contractual terms and conditions that the Institute puts in place with third parties are regularly reviewed and have been updated to include ely addressed.

Institute science interfaces with many key areas of policy from public health to education, and from animal welfare to big data. Our life science research has significant potential to shape and inform policy on topics such as gene editing, stem cell resear staff place significant value on working with policymakers and policy organisations through discussion, evidence and debate. We also participate in broader discussions including animal welfare and the importance of the bioeconomy.

Dr Peter Rugg-Gunn, Group Leader and Head of Public Engagement at the Babraham Institute, was a member of the Working Group of experts that created the first ever UK guidelines for the generation and use of stem cell-based embryo models (SCBEM) in research (https://www.babraham.ac.uk/news/2024/07/code-on-stem-cell-based-embryo-models-research ). The new SCBEM Code of Practice was published in July 2024, proposes clear guidance and oversight processes, to bring greater transparency and openness to the research and reassurance to the public.

The Institute is committed to creating, maintaining and promoting equality, diversity and inclusivity (EDI) in all aspects of its tiative unites all EDI activities and regularly consults with individuals to monitor the implementation of this goal (https://www.babraham.ac.uk/about-us/e4s ).

BBSRC INSTITUTE ASSESSMENT EXERCISE

In 2023 the Babraham Institute undertook an Institute Assessment Exercise (IAE) for BBSRC. The IAE application set out what the Institute will deliver for the period 2024-2028 and the infrastructure needed to support that, to deliver our mission of securing health and maximising health span. The IAE application set out the workstreams relevant to the global challenge of wider government priorities for health. The IAE concluded in December 2023 with BBSRC confirming £48M in strategic funding -2028 supports the Institute to undertake three strategic programmes of work: Epigenetic control across the life course, Cellular responses to stress, and Immunity, resilience and repair. All three programmes have a strong focus on the mechanisms that drive ageing and will provide new insights into age-related disease that the Institute will progress with biotech, pharma and clinicians. 2025-2026 will see the IAE mid-term review take place, following which preparation for the Institute Assessment Exercise 2028 will commence.

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OBJECTIVES AND ACTIVITIES

INSTITUTE OBJECTIVES

In the furtherance of the charitable objectives listed in the Memorandum and Articles of Association, the charitable company found online (www.babraham.ac.uk/about-us). Information on funding, research activities, scientific facilities and wider reports. The 2023-2024 report is available online (www.babraham.ac.uk/our-research/annual-research-report).

-BBSRC in the form of Institute Strategic Programme Grants (ISPG) awarded to each programme. Each ISPG contains a list of objectives for the term of the grant, together with time plans and resource requirements; the grants are allocated for these specific, approved projects and funding may not be diverted to diverse activities. The ISPGs are summarised in the list of objectives below and a more detailed insight into the aims of each ISPG and research g

SCIENTIFIC AIMS

epigenetics, signalling and immunology and is supported by UKRI-BBSRC strategic funding (renewed through an Institute Assessment Exercise in 2023 for the period 2024-2028). The programmes work towards our overarching goal of understanding the fundamental biological mechanisms and changes underlying development and healthy ageing. Key strategic objectives include:

Strategic programme: Epigenetic control across the life course

Exploring the links between diet, metabolites and gene regulation to improve our understanding of mechanisms that maintain and support lifelong health.

Aim 1: How changes in the balance of cellular metabolites affect epigenetic systems

Aim 2: How epigenetic states are established and maintained

Aim 3: How epigenetic states change over the life course

Strategic programme: Immunity, resilience and repair

Advancing our understanding of the molecular and cellular basis of immunity to protect and improve health across the life course.

Aim 1: Understanding the molecular and cellular basis of immunity

Aim 2: Mechanisms of resilience and repair

Strategic programme: Cellular responses to stress

Defining how cellular signalling pathways act together to coordinate cellular responses and how signalling mechanisms are affected by age .

Aim 1: A new understanding of the cellular responses to stress and how this changes across the life course

Aim 2: Identifying new strategies to sustain the health of ageing cells, tissues and organisms

Leveraging the capital investment in Institute infrastructure and equipment , in particular the state-of-the-art scientific facilities and biological support unit, to attract investment from both the public and private sectors.

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INSTITUTE OBJECTIVES (CONTINUED)

SCIENTIFIC AIMS (CONTINUED)

Complementing ISPG funding there is a Campus Capability Grant (CCG) supporting the Institute and its core biological research facilities. This is used to enable the Institute to effectively disseminate knowledge and, where appropriate, facilitate partnerships or spin-out companies to maximise the impact of Institute research to translate research into action for social and economic benefit. A key part of the Knowledge Exchange and Commercialisation (KEC) strategy is to partner with industry, particularly biotech and pharma companies, to translate our research and support the bioeconomy. The grant also enables the Institute to employ a team of skilled KEC specialists to support and facilitate this work.

Each ISP contains a number of research Group Leaders who adopt complementary approaches to address a common set of biological questions. Group leaders are either appointed as tenure-track or tenured group leaders. In May 2024, Professor Kai-Michael Toellne Hawkins retired from the Signalling programme at the end of March 2025.

their own group and is expected to create, lead, maintain and develop an internationally competitive programme of innovative research.

Each ISP Lead is responsible for leading and comission of understanding and helping to improve lifelong health. This involves coordinating and uniting the goals of several groups and ensuring appropriate annual reporting to the UKRI-BBSRC.

Each Group Leader is expected to raise additional funds for their research over and above the UKRI-BBSRC core ISPG funding, not only to support the critical mass of researchers needed, but also to form strong strategic partnerships with other funders (often from the medical charity sector or the biotech/pharma industry) that are interested in the translation of Babraham Institute science into technologies and discoveries with high impact for the benefit of lifelong health and wellbeing. Grant success for 2024-2025 is detailed in later section: Achievements and Performance

The current balance of group leaders across research programmes (as of 1[st] April 2025) is shown below

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----- Start of picture text -----
Epigenetics research programme, Immunology research programme, Signalling research programme,
hosting the strategic programme: hosting the strategic programme: hosting the strategic programme:
Epigenetic control across the life Immunity, resilience and repair Cellular responses to stress
course
3 tenured group leaders 2 tenured group leaders 5 tenured group leaders
4 tenure track group leaders 2 tenure track group leaders 4 tenure track group leaders
2 associate group leaders 1 associate group leader
----- End of picture text -----

The Institute also benefits from close collaboration with six Honorary Group Leaders, appointed for an initial period of five years, to provide multi-disciplinary dimensions to our research areas.

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INSTITUTE OBJECTIVES (CONTINUED)

SCIENTIFIC AIMS (CONTINUED)

The overall science direction of the Institute is determined by the Babraham Executive Committee (BEC; the senior executive committee responsible for the running of the Institute); additionally, the Science Policy Committee (SPoC; a subcommittee of BEC with additional membership from amongst the senior science staff and Grants Office) provides scientific leadership and vision and also monitors and assesses the science across all groups.

The impact of this research, for the public benefit, is a deeper understanding of the mechanisms of health and disease the creation of new therapies and treatments to protect health and reduce age-related decline. Our research may also lead to changes to public advice on healthy living, wellbeing and ageing and influence public health policies.

knowledge to disease conditions, often partnering with medical research charities and organisations devoted to alleviating the effects of

research can be far removed from these final outcomes and there is an expectation that the translation of Institute research may take some years to come to fruition, yet over the course of its history the Institute has demonstrated its ability to deliver high-impact research advances (e.g., work on fundamental cell biology and inositol lipid signalling spanning work underpinned by discoveries made in the 1960s to current day).

first therapeutically useful monoclonal antibodies, leading to several monoclonal antibody drugs such as Herceptin (for metastatic breast Panitumumab), licensed for the treatment of colorectal cancer, which was developed directly from research performed at the Institute more than a decade earlier. The Institute continues to translate its research findings with 11 new consultancies, 24 new collaborations, 12 new patents and 10 innovation opportunities disclosed in 2024.

INSTITUTE MISSION STATEMENT

INSTITUTE REMIT

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INSTITUTE REMIT (CONTINUED)

As part of the UK Science Base, the Institute contributes to the economic growth, quality of life and public engagement understanding of health, developing and applying transformative technologies and advancing our understanding of the rules of life. Our research aligns with the aspirations and vision of the BBSRC Strategic Delivery Plan (2022-2025), UKRI Strategy for 2022-2027: Transforming tomorrow together and the BBSRC Forward Look for UK Bioscience and which highlights ageing as a strategic challenge. Similarly, our research also closely aligns with the healthcare challenge of ageing and the ambition to understand the pathways associated with multi-system ageing in order to develop new diagnostics and therapies as outlined e areas.

ROADMAP FOR TEAM SCIENCE

A comprehensive Roadmap for Team Science was developed in 2024 with those many of the projects and actions outlined in it commencing over 2024-2025. The Roadmap for Team Science looks to embed team science at the Institute as well as focusing on the Institutes ways of working and how these can enable the Institute to achieve a stronger implementation of its strategy across the three ISPGs and the Institute as a whole.

The Roadmap was created based on agreed priorities, and themes, identified during a wide-ranging staff engagement project, undertaken in 2023-2024, the Institute Culture Consultation (ICC). This consultation involved stakeholder interviews, focus groups, online engagement and workshops seeking to identify the barriers and enablers hindering or supporting a positive research culture at the Institute, in alignment with the UKRI-BBSRC Institute Strategy. The ICC project and subsequent Roadmap for Team Science was shared as part of the BBSRC Connecting Research Culture Conference in March 2025, where the approach, outputs, and lessons learnt were shared with other BBSRC sister-institutes.

BABRAHAM GROUP BUSINESS OBJECTIVES

International leadership

Excellent fit-for-purpose infrastructure for science

The highest standards of Corporate Social Responsibility

Values and impact of our research. The Institute holds and abides by the following values:

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BABRAHAM GROUP BUSINESS OBJECTIVES (CONTINUED)

Community partnerships

Robust sustainability

Financial planning and estate strategy

Efficient and effective management

Operations and People

A high standard of Corporate Governance

Risk control and contingency planning

Within BRCL specifically, the key business objectives are:

ENAGEMENT WITH EMPLOYEES

During the year the Babraham Group has continued to provide employees with relevant information and to seek their views on matters of common concern through groups, committees, staff updates, engagement surveys, through line managers and through an Institute Culture Consultation project. Priority is given to ensuring that employees are aware of all significant matters The HR department commissioned a series of three employee engagement surveys (in collaboration with The Survey Initiative). The last of which was conducted in 2024. The surveys have helped to identify key issues and priorities for improvement, as well as highlighting areas of success, good practice and progress within the Institute.

Information continues to be published regularly in the Institute-wide monthly newsletter, and this is now an established part of with and updates from teams across the Institute.

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ENAGEMENT WITH EMPLOYEES (CONTINUED)

These scheduled communications are supplemented with tailored communications emailed directly to staff on issues of particular note, such as changes to Institute management and important health and safety notices. Although ad hoc, these emailed communications ensure that all staff receive information that is relevant to the situation, the mechanisms for communication and support are made clear and misinformation is avoided.

-stop-

HR t

th and 13th September 2024 and two Institute-wide staff updates were presented on 24[th] April and 16[th] December, as well as an update event sharing the findings of the Institute Culture th June 2024.

A Gold Award was received by the Institute from the SOS-UK Green Impact programme in October 2022. This award was extended to a Platinum Green Impact Award in October 2023 and re-awarded at the same platinum level in 2024 (https://www.babraham.ac.uk/news/2024/12/platinum-green-impact-award-sustainability) reflecting continued work by cross-campus sustainability network as part of the SOS-UK Green Impact programme accreditation in 2023 and 2024).

Continuation of this work as part of the next cycle of the Green Impact programme will achieve further environmental action with expanded participation across BRCL. The vision is that the Campus is Carbon Neutral by 2040 In line with the UKRI Environmental Sustainability Strategy.

The Institute plans to build on ongoing good practice to further progress equal opportunities. A highlight of the impacts delivered support to researchers on long-term leave in order to maintain the momentum of research projects. After being established in 2020, the position has supported 11 researchers. There has been a high degree of interest from other organisations across 20242025 in how to establish similar schemes and BI has given presentations on the programme.

In 2024, the Institute received a renewal of its Silver Athena Swan Award. Following a recent review, Athena SWAN status must recognises that we have met the expanded criteria of the charter. The Babraham Insti -doctoral researcher mentoring scheme, and working to increase the visibility of women, especially at senior levels. The panel feedback highlighted the strong structures and support in place at the Institute to underpin and recognise gender equality work. Looking ahead to 2024-2029, the e4s programme will focus on four key priorities: career development, support for staff, workplace culture and addressing gender disparity in staff leaving academia. (https://www.babraham.ac.uk/news/2024/12/institute-athena-swan-silver-award )

The LGBTQ+ Network continued to meet across 2024-2025 to raise awareness and the profile of LGBTQ+ issues and staff in the workplace, help remove barriers to inclusion and ensure that there are visible role models at different levels of the organisation.

The Institute joined the Technician Commitment in 2019 to pledge action against the key challenges that affect our technical staff, leading to the creation of a steering group to represent the variety of technical specialist roles found across the Institute. Key areas of focus and objectives have been mapped to the Technician Commitment themes of Visibility, Recognition, Career Development and Sustainability. In July 2024, following stakeholder consultation, the Technician Commitment Steering Group - - submitted a detailed action plan for 2024-2027 (https://www.babraham.ac.uk/sites/default/files/2024 08/Babraham Institute-Technician-Commitment-Self-Assesment-and-Action-Plan-July-2024.pdf). Ongoing projects in 2025 under the action plan include establishing transparent career progression pathways and support, improving robust data collection, technician commitment drop-in sessions and developing a series of internal technician commitment themed events.

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ENAGEMENT WITH EMPLOYEES (CONTINUED)

Progress is now being made towards meeting the objectives of the 2024-27 Action Plan, with the new 3-year plan led by Technician Commitment Steering Group Chair, Laura Durrant. (www.babraham.ac.uk/people/technician-commitment).

animal facility (Biological Support Unit). Successes for members of the cohort in winning external awards include: Two technical specialists shortlisted for the 2025 Papin Prize: Simon Andrews, Head of the Bioinformatics Team for his longstanding contributions to research and Rita Dapaah, Flow Cytometry Assistant, for her exceptional performance as an Early Career technical specialist. Dr Rachael Walker is shortlisted as a finalist for the 2025 Cambridge Independent Science and Technology Awards. Three technical specialists: Juliet Emery, Head of Science Technical Services; Laura Durrant, Genomics Specialist; and Megan Hamilton, Head of our Genomics facility, each completed the Herschel Programme for Women in Technical Leadership .

The mental health and wellbeing of our staff is paramount, and the Institute has a number of ways to support staff. The Employee Assistance Programme (EAP) is a 24-hour helpline for Institute staff, including financial, legal, relationship and emotional support as well as telephone counselling. We continue to operate a Mental Health First Aider (MHFA) scheme (started 2020), training volunteers from across the Institute as Mental Health First Aiders to act as a first point of contact for staff who are experiencing a mental health issue or emotional distress and to help signpost staff to the appropriate support. Additionally, we introduced the Access to Work Mental Health Support service delivered by Remploy which provides support to individuals who are experiencing difficulties at work due to depression, anxiety, stress and/or other mental health conditions.

We strive to update and improve our wellbeing offering to staff, running several wellbeing and mental health related webinars in 2024 as well as providing staff with monthly wellbeing themes and related resources. In 2024 we continued our annual calendar o as well as cycle MOTs continued the successful collaborative relationship with the Green Labs strategic initiative.

al wellbeing particularly during the cost of living crisis. The platform also contains a wealth of wellbeing information and support quick access to the benefits available.

Remuneration of key management personnel is set annually by the Senior Remuneration Committee which comprises the Institute Chair and Deputy Chair along with at least one other trustee. The Committee is chaired by the trustee appointed to oversee HR matters on behalf of the Board. In line with government requirements, the Institute continues to publish its Gender Pay Gap figures annually: (https://www.babraham.ac.uk/work-and-study/e4s/gender-pay-gap).

SUMMARY PUBLIC BENEFIT STATEMENT

The charitable purpose of the Institute is to advance education, specifically to increase public learning and knowledge in the field of biological and biomedical sciences and also to provide training leading to a higher degree (PhD) in research techniques and provide a significant contribution to collective knowledge and impact in specific areas of study and expertise. The Trustees are mindful of their collective responsibility to ensure that the charity complies with public benefit guidance issued by the Charities Commission

ACHIEVEMENTS AND PERFORMANCE

Key performance indicators focussing on non-financial performance during the reporting year are detailed below. The choice of performance indicators is based on readily available information which provides a useful comparison of achievements this financial year to last year.

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ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Number of publications

-section of the public will benefit from our understanding of the ageing process and as a result of the translation of our findings into new medicines or treatments. Given the broad scope of our work, its relevance to everyone through their lifecourse, and our commitment to maximising research impacts through knowledge sharing with politicians, industry, policy organisations, charities, health and care services, we believe the Institute is making vital contributions to the future wellbeing and economy nd refereed research and review articles in journals. Papers from the 2024-2025 year have already been cited 300 times.

A full bibliographic list of all scientific publications is available on our website (www.babraham.ac.uk/publications) and under

New Grants

The Institute, during the year, continued to seek additional external funding from various sources both within the United Kingdom, European Union and further afield. The number of new grants with a start date in 2024-2025, by funding source and the total awarded, are below:

2024-2025 2023-2024 2023-2024 2022-2023 2022-2023 2021-2022 2021-2022
Number Number Number Number
UKRI-BBSRC 3 1,363 7 1,349 3 1,218 3 1,154
UKRI-MRC 3 1,218 0 0 1 1,418 3 1,263
European Commission 1 192 3 2,124 4 3,383 2 243
Industry, levy boards 7 851 8 672 7 544 1 295
Trusts, foundations, charities,
foreigngovernments		 4 341 7 8,870 1 137 6 4,579
18 3,965 25 13,015 16 6,700 15 7,534

The decrease in grants for 2024 25 stems from a shift in researcher activity during the previous year. In 2023, with researchers heavily focused on preparing for the Institute Assessment Exercise, this led to a reduced number of grant proposals being submitted. As is standard, grant income typically follows a one-year lag: proposals submitted in one financial year generate income in the next. Because fewer proposals were submitted in 2023, the impacts are seen in 2024 25 figures.

As in past years, identifying, applying for, and securing new external funding sources remains a high priority for the Institute.

LIPID MAPS Collaborative Grant (£1.3M, MRC):

-Curie Postdoctoral Fellowship Dr Teruhito Ishihara:

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New Grants (continued)

Leverhulme Early Career Fellowship Dr Irene Zorzan:

Dr Irene Zorzan has been awarded a Leverhulme Early Career Fellowship, supporting her independent research and development as an emerging leader in her field.

PUBLIC ENGAGEMENT

Overview

to

culture, society, economic development and growth. The Institute is recognised nationally as a leader in scientific public engagement. Public Engagement is embedded within Institute research with a focus on two-way interactions between and dynamic programme to help researchers and staff engage with students, teachers, community groups, family and adult audiences. This support includes: delivering a core programme of engagement opportunities, providing training in public engagement, enabling researcher-led activities through provision of seed funding, providing specialist advice to maximise engagement and impact opportunities in external grant applications, and championing reward and recognition practices. The o these activities.

Key metrics for public engagement activities at the Babraham Institute

2024/54 2023/24 2022/23 2021/22
Visitors to site 361 285 394 02
Outreach Events1 33 26 33 28
Total Public Audience Engaged 2,537 1,326 3,201 3,894
Proportion of audience being
from areas of high deprivation		 74% 63% 52% 26%
Website visits
208,027 202,243 159,425 127,222

1Visits to schools, science festival exhibits, public lectures, panel sessions, public dialogue workshops, hosting community tours on campus, including online / digital formats.

2No visitors to site occurred during the 2020-22 period due to the Covid-19 Pandemic.

Strategic Focus on Underserved Audiences

The Institute engages local, national and international audiences with a focus on developing long-term relationships with

a measure of a person's access to and engagement with science has shown that people living in areas of higher deprivation have lower levels of science capital. This imbalance is highly pronounced in Cambridgeshire and East Anglia where there are postcode areas with the lowest and highest levels of deprivation. Many of these deprived areas are in rural locations which have typically been underserved by engagement programmes due to the tendency of higher education institutions to focus on areas close to Cambridge and other urban centres. In 2019 The Institute started taking steps to build foundation processes and relationships with audience groups to begin tackling the issue. Over the last year, we have continued to build - - on this work and have published a new strategy: (https://www.babraham.ac.uk/sites/default/files/2025 04/Public Engagement-Strategy-2024-2028-%286%29.pdf) to focus our programmes to enable more equitable engagement with our research. This strategy has been positively received by stakeholders including BBSRC.

This strategy focuses on equitable access, with 74% of the 2024-2025 audience from high deprivation areas: a 20-fold increase in five years.

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ACHIEVEMENTS AND PERFORMANCE (CONTINUED

PUBLIC ENGAGEMENT (CONTINUED)

deprivation have been key to this impact. This measurable progress has been very rewarding and motivating for Institute staff and continues to drive support for impactful engagement.

Widening Access through Partnerships

We have also strengthened links with education sector partners, such as the Youth STEMM award, to allow for more measurable and greater impact of our work. Our move to operate student placements through the In2STEM (further education student focused) and In2Research (undergraduate student focused) programmes have enabled more equitable

access to research experience at the Institute and we have seen great successes in these programmes with clear impacts on build long-term partnerships with students from low-income backgrounds provides a route to directly engage and recruit students to the programmes and the Institute.

To date, 30 undergraduate students have participated in the Research Access Programme. Of these, 13 have gone on to apply as a key enabler of their next steps, with one student from last year saying: very limited knowledge and connections. Just establishing myself as someone breaking into the professional world has been This programme is continually evaluated and improved to ensure students are receiving the best support and experience possible and alumni are supported to assess long-term outcomes.

School Audiences

and parents engaged in talks and a poster/art showcase, themed around proteostasis to align with Signalling ISP research. Student work was later exhibited at the Cambridge Festival, sparking further conversations with the public.

student engagement. We sponsor students for the Youth STEMM Award, now recognised in UCAS applications. An expanded online BioInspire cohort of 30 students across the UK now participates in monthly sessions with Institute staff. Sixteen researchers across roles have facilitated discussions to date. These sustained relationships support our wider schools' events ere this year 50% of student attendees came from areas of higher deprivation.

Community Audiences

Community engagement has included hybrid online/in-person events, including on sensitive topics such as animal research. This year, our Science Spotlight series and the launch of a new 360° BSU virtual tour enabled the public to explore working practices and animal welfare in research. A new exhibit further explains how and why mice are used in research, with positive feedback reflecting greater public confidence.

Both initiatives were supported by our internal PE Seed Fund, which backs staff-led projects. These activities align with our openness about animal research and have contributed to reducing misconceptions.

We also expanded our regional presence through events like the Royal Norfolk Show and Peterborough STEM Festival, -supported project developed by two PhD students, creatively engaged the public with signalling research and reached nearly 500 people at the

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ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

PUBLIC ENGAGEMENT (CONTINUED)

The Year Ahead

Throughout the year, public engagement work has been well received by audiences, researcher contributors, funders and peers alike. Looking ahead, the Public Engagement Team aims to continue to develop relationships with traditionally

underserved audiences and provide opportunities for high quality, two-way engagement between staff and members of the public. We are also strengthening links with other BBSRC funded institutes through developing new collaborative engagement resources to enable the public to explore how Institute work fits into the wider bioscience sector at joint events across the country. This will enable the Institute to continue its leadership role in providing open, equitable and impactful engagement for public audiences with scientific research.

KNOWLEDGE EXCHANGE AND COMMERCIALISATION (KEC)

impact, and where appropriate the commercial application of the knowledge developed and held within the Institute. This approach reflects the understanding that such knowledge results from public investment, and the Institute is committed to ensuring that this investment delivers meaningful societal and economic benefits.

Key activities include providing training in emerging scientific techniques to fellow researchers through continuing professional development (CPD), as well as active collaboration with the biotechnology and pharmaceutical industries and other research institutions. The Institute also contributes its expertise to inform science policy and strategy, both domestically and internationally, engaging with policymakers and industry leaders.

Where relevant, the Institute pursues opportunities to translate its research into practical applications through commercialisation, supported by the strategic oversight and partnership of its wholly-owned trading subsidiary, Babraham Institute Enterprise (BIE). The Institute also works with industry and stakeholders to understand their challenges and respond effectively.

Kolmogorova and Dr Peter Rugg-Gunn) was successful in securing a place on the BBSRC ICURe programme and subsequently, recommended for spin-out. AmnioCam has now been accepted as part of the 2025 cohort of the Accelerate@Babraham programme operated by the Babraham Research Campus. More particularly, the appointment of Dr Alonja Kolmogorova was supported by the BBSRC Intervention Fund and was introdu

offering postdoctoral researchers a dedicated secondment with the KEC team to lead a BI project and gain hands-on commercial experience.

nical

value in diverse clinical fields including regenerative medicine, drug discovery, sequencing, high-efficiency cell reprogramming, cancer therapeutics, traumatic brain injury, MS, cognitive decline, wound repair and ophthalmology. These filings are being actively developed to fund spin-out opportunities or high-value licensing opportunities.

A new proof-of-

of BI science. Four projects have successfully secured funding totalling £147,000. These projects will enable target validation in the field of heathspan and age-related metabolic disorders, multiomics sequencing technology business planning/strategy and vaccine development.

A new Business Development Manager role was created in the KEC team to expand the commercial activities of BI scientific facilities and enhance attractiveness of the Campus, with the newly appointed staff member starting on 1[st] May 2025. The post is jointly funded by the Campus (40%) and BIE (60%).

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ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

Knowledge Exchange and Commercialisation (KEC) (Continued)

On the knowledge exchange front, a FTMA grant in collaboration with Newcastle University was secured early 2024 providing support for a range of research collaborations, training opportunities, and knowledge exchange placements for Institute researchers and technicians. Under this grant, 14 short projects have so far been funded, supporting knowledge exchange across core facility management, commercialisation, grant management and research integrity fields and have initiated five collaborative research projects. The FTMA has further supported nine seminars and visits between Newcastle and BI teams,

including NU and BI visits by Group Leads, Facility Heads, Translational teams, and BI researcher participation in the inaugural meeting of the Newcastle Ageing SIG. Such supported collaborations and placements with industrial and institutional hosts have enabled exposure of technicians and research staff to a range of new commercial and academic environments and significantly enabled translational activities and market awareness across the three ISPs.

A UKRI-BBSRC Industrial Doctoral Landscape Award (IDLA) grant was submitted in February 2025, in collaboration with BRCL, University of Cambridge, Wellcome Sanger, MRC-LMB, EMBL-EBI, AstraZeneca, Alloy Therapeutics, Illumina Inc, and Cambridge cluster science parks. Bringing together these industrial and academic collaborators highlighted the role of the Babraham Institute as a key partner for the South Cambridge Life Science cluster.

The range of Institute initiated Campus events continued to develop in 2024-2025 on diverse translational, professional career and academic themes. BI is working closely with the Campus on the 3-year BBSRC Babraham Campus Impact Acceleration Account (CIAA) 2026), to facilitate Campus interactions, networks, collaborations, services and training opportunities. KEC team members are part of the CIAA panel. Four CIAA Institute-Company collaborations were awarded over the reporting period and a cell sorting course funded. The CIAA grant has additionally funded the creation of an Entrepreneurship and Career network, a Mentorship network for Campus and Institute staff. Campus Network meetings (Flow, Bioinformatics, Imaging, Technicians) have been organised during the reporting period. Four CTP students participated in the 2024 Accelerate@Babraham programme and seven BI researchers participated in individual entrepreneurship sessions supported by the CIAA focused on pitching/communication and leadership. In addition to these events, the KEC team have produced nine events over the year that have showcased Babraham Institute research, innovation and leadership to a range of commercial and academic audiences. An additional six showcases to individual biotech and pharma companies were carried out.

Separate to the CIAA activities, diverse translational training opportunities continue to be provided by KEC to Institute staff EnterpriseTECH, Newton Venture Program and the BioSpark entrepreneurship programmes. The KEC travel fund has supported eight RTPs, post-docs and PhD applicants in attending a range of conferences, raising visibility of BI science and providing cross-disciplinary and cross-sector networking opportunities. Two postdocs in Epigenetics were successful in securing places in the BBSRC ICURe Engage entrepreneurship programme. Five Babraham Institute EnterpriseTECH scholarships were awarded to BI PhD students, supporting their participation in the September 2024 cohort of the

The BIE Board has also been restructured with the appointment of senior executives Dr Iain Thomas, Dr Danielle Hoyle, Dr Laura Parton and Mr Matthew Wheeler as Non-executive Directors, bringing complementary skills in technology and preclinical/early clinical development, with backgrounds ranging from academic research, technology transfer/business development to biotech/pharma R&D. Dr Alan Watt was appointed chair of the BIE Board. In 2024-2025, Babraham Institute Enterprise Limited generated £1,244k (2023-2024: £2,036k) in revenues from the commercialisation of its assets and

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ENVIRONMENTAL SUSTAINABILITY AND STREAMLINE ENERGY AND CARBON REPORTING

Operating Officer has responsibility for environmental management.

The Institute continues to invest in energy saving opportunities exploiting funding opportunities from UKRI-BBSRC and UKRI to not only improve and reduce the carbon footprint of the Institute and its science but to maximise efficiency in its use of energy.

Latest updates include:

2024/25 Streamlined Energy and Carbon Report (SECR) outcomes - Emissions Data

==> picture [414 x 261] intentionally omitted <==

----- Start of picture text -----
Greenhouse Gas Emissions 2024/25 2023/24 2022/23
Total Gross Emissions 5,522 6,019 5,597
5,522
Total Net Emissions 6,019 5,597
Gross Emissions
Scope 1 (Fuel) 4,911 5,464 4,295
Gross Emissions
Scope Emissions
Scope 1 (Transport x
Indicators (tCO2e)
100) 328 285 312
Total Scope 1
Emissions 5,239 5,749 4,606
Gross Emissions
Scope 2 (Electricity) 283 270 990
Electricity: Non-
Renewable 6,739,820 7,814,955 4,187,202
Related Energy Electricity:
Consumption (MWh) Renewable 1,381,623 1,315,586 5,121,870
Transport 13,415 11,573 12,422
Gas 26,901,633 29,932,343 23,527,186
----- End of picture text -----

Methodology

The report covers the emissions for which the Institute has financial control, this was the boundary defined by the organisation.

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ENVIRONMENTAL SUSTAINABILITY AND STREAMLINE ENERGY AND CARBON REPORTING (CONTINUED)

2024/25 and future years - Net Zero Carbon

-BBSRC, Babraham Institute (BI) and Babraham Research Campus Ltd (BRCL) have agreed via the vehicle of the Joint Stakeholders Programme Board to form a coordinated approach to the operational areas of the campus that come within the orbit of those stakeholders.

To this end UKRI-BBSRC, BRCL and BI have made significant investment in defining the approach to attaining operational NZC by 2040. This has come in the form of feasibility studies on the preferred approaches to Scope 1 and 2 emissions, renewables feasibility studies, but most significantly the initial commitments drawn into the Local Plan Call for Sites submission and the current ongoing outline planning application drawn-up Campus Master Plan.

The application documents contain the blueprint for both energy and operational sustainability for future growth and the overall operation of the campus. The financial commitment to these studies amounts to around £1.6m to date.

The Institute continues to invest in energy reduction schemes with its smart lighting project. Other investments include B607 Energy Centre district heating pumps replaced with inverter driven direct drive pumps, further reducing electricity consumption.

The overriding objective for the Institute and BRCL is to undertake the effectively phased replacement of all existing fossil fuel energy systems with low to zero carbon systems by 2040 at the latest.

These objectives are, as stated above contained within the outline planning application that will lead on the future energy and operational sustainability for not only the Babraham Institute but the Babraham Campus.

GROUP ESTATE ACTIVITIES

The Babraham Research Campus (for which BRCL has the on-going development and management responsibility) maintains a significant location for life-science companies to establish and grow in the Cambridge life science cluster.

There are over 60 organisations operating within the Babraham Research Campus. Tenants are located in a number of purpose-built buildings with both laboratory and office space. In total, occupied space is in excess of 25,000 square meters.

The campus maintains its distinct features: the co-location of world-leading academic research and commercial life-science activity, campus facilities that reflect the space needs of early-stage and scale-up companies, access to on-site science capability, and a community focussed upon human healthcare on a single site. We believe the campus is well placed for future growth and development.

INSTITUTE FUTURE DEVELOPMENTS

The Institute will continue to be engaged in the field of basic bioscience with a strong emphasis on research into healthy

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INSTITUTE FUTURE DEVELOPMENTS (CONTINUED)

conception onwards. With the core themes of resilience and proteostasis our goal of understanding mechanisms that promote health across the life course will benefit from the coalescence of expertise across our research programmes and facilities.

With the efforts of our Knowledge Exchange and Commercialisation team we have built a strong pipeline of entrepreneurship and commercial awareness and expect to see steady growth in activities related to research translation. In addition, the future technology developments to meet the needs of academic and commercial researchers.

The priority is to ensure that all our UKRI-BBSRC funded research is internationally competitive with the best academic groups in our area of endeavour. We continue to prioritise the need to control costs in all categories including pay expenditure, but note the need to invest strategically to reach new collaborators and expand the reach of the Institute wherever possible.

where we invest in and support existing members of our community to develop in their roles. We have successfully participated in a range of apprenticeship schemes, particularly across technical specialist roles. These strategies support the continued programme of succession planning, which remains an important issue. This will continue to be achieved through new recruitment to priority areas as well as through advancing the progression of early career scientists and other staff and ensuring that they are fully equipped to take leading roles in the future development of the organisation. We welcomed a new senior group leader to the Immunology programme in September 2025.

Having created the UK Proteostasis Network we look forward to being an active supporter of the Network as it grows to connect proteostasis researchers across specialisms and kingdoms of life.

GROUP FUTURE DEVELOPMENTS

The venture between BRCL and Biomed Realty Inc (BMR), a US corporation which was announced in 2022, took delivery of a new 40,000 ft[2] laboratory and office building in February 2024. This building was designed to accommodate companies already on the campus, wishing to grow on site. The property is currently 75% let and BRCL are supplying the facilities management services to both to the building, and the individual companies located in the property.

With regard to the future developments and in support of the agreed strategy between the campus partners (UKRI-BBSRC, the Babraham Institute and BRCL) a pre-planning application programme was initiated, funded by the freeholder UKRI-BBSRC - to allow the submission in 2025 of an outline planning application ensuring the campus is well placed for future growth.

RISK MANAGEMENT

The Institute Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage the major risks to which the charity is exposed. The Audit Committee agrees an annual risk-based internal audit plan which covers major risks identified by management and the Board of Trustees. It receives reports from RSM internal auditors on the effectiveness of internal controls, progress against the internal audit plan and progress on recommendations made in reports. The Board of Trustees reviews a full risk report annually tracking major risks. The Science and Impact Advisory Committee (SIAC) also assess the science quality and vision covered in various sections of the risk register. The table below summarises how the Institute manages its key risks.

This year has seen the completion of a comprehensive review and update of Institute Business Continuity Plans (BCPs) both the overarching Institute plan and departmental plans - -top exercise involving all lead members of the Crisis Management Team.

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RISK MANAGEMENT (CONTINUED)

==> picture [506 x 622] intentionally omitted <==

----- Start of picture text -----
Risk Area Description of Risk Risk Management
Business The Institute having to manage Annual budget setting and monitoring to ensure effective use of
Sustainability the loss or reduction of UKRI- resources. Defined policy and procedure to spend Institute
BBSRC funding. The inability for reserves and effective investment of reserves under the
the institute to remain Treasury Management Policy.
financially viable, Participating in a UKRI-BBSRC-wide Institute Financial
managing energy price sustainability agenda and Peer review process.
increases, insufficient capital Review to ensure progress against ISPG, CCG and KEC objectives.
budget and failures to secure Capital Equipment Policy and Procedures in place to prioritise
enough competitive grant business cases for each UKRI-BBSRC capital equipment funding
income. A lack of technological call.
investment at the institute to Review and approve quality/science alignment of grants, and
enable research. advising the grant applicant on how to strengthen proposals.
Reputational The Institute having to manage Effective Public Engagement strategy in place to raise Institute's
Maintenance reputational damage caused by profile. Events / conferences for the scientific community to
poor contribution to bioscience, raise the Institute's profile.
scientific misconduct or an Scientific collaborations to raise the Institute's profile.
honest failure to replicate Showcasing the Institute through external communication
results, staff breaching the code mechanisms, including the website, social media, the science
of conduct and the threats annual report and press engagement.
posed by animal rights activism. Biennial Research Integrity Assurance Review (including Lab
A lack of technological notebook OneNote procedures).
investment at the institute Promotion of a good Research Integrity Culture through policies.
which degrades reputation.
IT System The Institute being subject to a Continual review of IT procedures, assessment of new risks as
Failure cyber-attack, threats due to they develop and regular system upgrades to ensure systems
unresolved system are fit for purpose.
vulnerabilities, the lack of Maintain Network Security. Urgent recommendations (e.g.,
training of knowledge of staff or critical vulnerabilities) are implemented in response to
negligence. The risk of a major notifications from Janet CSIRT service (the network provider for
incident on site such as a power UK Education, Research and other public sector entities) and
outage, fire, flood etc effecting other notification services. Cyber Essentials Certification in
on site data centres. place.
Multi-layered backup strategy in place.
IT staff are trained in IT security and have regular CPD in this
area to ensure knowledge is up to date. Regular training and
communication to staff on new and existing threats to build
knowledge and awareness.
Secure authentication strategy in place for all system and
account access.
Business The Institute is unable to Equipment and logistical steps in place along with ensuring
Continuity continue day to day operation policies and SOPs are fit for purpose and reflect current best
due to severe business practice. Supply chain resilience is built in as far as possible.
disruption to science and A reciprocal agreement is in place to use facilities at the CRUK
research. Cambridge Institute as an emergency centre.
Business Continuity Plan and Crisis Management Team is in
place to provide a framework and table top exercises annually.
Commercial insurance in place to cover financial loss through
business disruption.
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RISK MANAGEMENT (CONTINUED)

Risk Area Description of Risk Risk Management
HR
Management		 The Institute is unable to recruit
and retain staff due to staff
burnout, inadequate team
resources and poor planning.		 Attractiveness of the Babraham Research Campus and good
infrastructure such as provision, housing, parking, etc.
Competitive pay scheme and benefits including research
support package. Benchmarking of pay and benefits with other
organisations to ensure parity.
Provision and maintenance of excellent science facilities and
equipment and support for immigration licenses and visas and
an employee assistanceprogramme to support staff wellbeing.

Within BRCL, the Directors carry out regular reviews of the risks to which the company may be exposed both at regular internal auditors RSM to act as an independent internal audit service. The principal strategic risks considered by the BRCL board include:

FINANCIAL REVIEW

During the year, the total group reserves decreased from £159m to £156m, with details of the movement in group funds shown in the Statement of Financial Activities on page 31.

The individual results within the group are detailed below.

BABRAHAM INSTITUTE

Overall results for the Babraham Institute show a decrease in total funds from £144m to £140m. Restricted revenue funds decreased by £5,230k, Restricted Capital funds increased by £144k and Unrestricted Revenue funds increased by £946k. totalling a decrease of £4,140k across all funds.

surplus on unrestricted funds for the year of £946k compared to a deficit of £1,855k last year, with 2024/25 including a transfer of £4.5m from Restricted Revenue funds.

The operating deficit before investment gains, depreciation and transfers is £4,172k and £2,743k respectively for 2025 and 2024 per the table below ;

2025 2024
Operating Deficit before Investment gains/losses, depreciation and transfers (4,172) (2,743)
Depreciation (7,732) (6,842)
Loss on disposal of fixed assets (252) -
Transfers from capital and revaluation reserves 8,067 7,038
Transfers from restricted revenue reserves 4,598 -
Fair Value adjustment to investment properties - (1,200)
Investment Income (dividends and interest) 91 75
Investmentgains - realised and unrealised 346 1,817
Surplus/(Deficit) foryear
unrestricted funds		 946 (1,855)

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FINANCIAL REVIEW CONTINUED

The movement on operating results from £2,743k deficit to £4,172k deficit mainly relates to increases in salary costs in the year (£618k) and a fall in rental and facility income (£935k). Other income and costs remain comparable to the previous year.

Annual revaluations within the Institute (£3,059k) to land and buildings have further increased capital reserves in the year (note 9). Capital funds within the Institute continue to be released from capital reserves against depreciation charges in the year. During the year £5,151k of capital funding was received (2024: 4,534k).

The Institute continues to maximise its returns on funds by holding investments managed by Royal Bank of Canada (RBC). This allowed the Institute to benefit from investment income of £91k in the year (2024: £75k), together with unrealised gains of £346k (2024 : £1,871k) on investments held.

The Institute has appointed RBC to be its investment manager to implement the specific treasury management actions that will be required to apply the overall Treasury Management Policy.

The Treasury Management Policy within the Institute is reviewed annually, with the aim of the policy being to ensure ;

Regarding environmental, social, and governance (ESG) factors, the investment policy adopts investment strategies which seek to minimise and ideally eliminate irresponsible corporate behaviour and also reflects on the key challenges of climate change. The Institutes appointed investment managers that will be accountable to the Institute in terms of financial performance and adherence to commitments made on issues of social responsibility and sustainability.

The Institute has continued to actively monitor its cost base and strive for efficiency savings where possible to ensure the Institute continues to maximise its operations based on the funding received. Looking to the future the Institute continues to remain on a tight financial budget and a longer-term focus will need to be placed upon continuing to seek and secure fresh income streams.

BABRAHAM RESEARCH CAMPUS LIMITED (BRCL)

The profit for the year after taxation amounted to £465k (2024: £1,541k). The reduction in profitability compared with the prior year primarily reflects the costs incurred on refurbishment projects undertaken across certain buildings during the year, together with voids in rental space, which has impacted rental and service charge income and landlord void rates costs.

Gift aid of £383k (2024 : nil) was paid to the Babraham Institute.

BABRAHAM INSTITUTE ENTERPRISE LIMITED (BIE)

Babraham Institute Enterprise Limited made a profit after tax of £270k (2024: profit £618k). Operating results (before depreciation, amortisation and investments gains) are £222k profit for 2024/25 and £209k profit for 2023/24. Turnover (including licencing income) for the year of £1,247k compared to £2,036k for the previous year, a decrease of £789k, due to a reduction in income from science facility use to commercial customers. This decrease in activity also led to lower costs of £711k in the year, and these movements account for the change in operating results.

Gift aid of £200k (2024: £534k) was paid in the year to Babraham Institute, the higher gift aid value in 2024 being gift aid for 2022/23 and 2023/24 paid in one year.

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RESERVES POLICY

reserves required by the Group is therefore determined by reference to:

The Trustees have reviewed the reserves of the Group. The review encompasses the nature of the income and expenditure streams, the need to match variable income with fixed commitments, and the nature of the reserves. The Trustees concluded that to facilitate long-term planning they aim to achieve free reserves of £19m, covering 3 months working capital and any other financial obligations should the business cease to operate. At 31 March 2025, total reserves (excluding Minority Interests) were £146M (2024: 158M) analysed below ;

2025 2024
Unrestricted Revenue Reserves 21,515 20,278
Restricted Revenue Reserves 818 6,048
Restricted Capital Reserves 45,873 46,729
Revaluation Reserve 78,188 77,196

The Trustees are satisfied that there are sufficient free reserves (£19.8m) to provide the necessary funds to mitigate financial risks associated with operational and capital expenditure identified in the Risk Register. Free reserves (as compared to unrestricted reserves of £21.5m) excludes less liquid assets (fixed assets, stock etc) which cannot be readily converted to cash.

PRINCIPAL FUNDING SOURCES AND REVIEW OF EXPENDITURE

The Babraham Institute is one of eight Institutes receiving strategic funding from the UKRI-BBSRC. Funding is derived from our principal sponsor, the UKRI-BBSRC, together with external grants or fellowships competitively gained from other research councils, charities and industry.

Expenditure incurred as analysed in the Statement of Financial Activities relates to Charitable Activities, including support costs. Commercial trading activities are shown separately.

Staff costs remain the largest single component of group expenditure £19.9m (2024: £19.1m), followed by repairs and maintenance costs £6.8m (2024: £4.3m), energy costs £5.5m (2024 : £4.9m), consumables (laboratory and general) £4.1m (2024: £4.1m) and rent, rates and insurance £2.8m (2024: £2.5m).

Total expenditure for the year of £55.1m compares to £49.5m in 2023-24 an increase of £5.6m. Increases in repairs and maintenance (£2.6m), depreciation charges (£1.0m), salary costs (£0.8m), fuel charges (£0.6m) and loss on disposal of fixed assets (£0.5m) account for the majority of the increase in expenditure in this reporting year.

GOING CONCERN

The Babraham Institute is dependent on various funding sources including UKRI-BBSRC to meet its liabilities as they fall due within future years. The current funding model is not sufficient to meet costs, and the institute is expecting net cash outflows for the going concern period. To this extent, a release of BBSRC restricted revenue funds (£500k) will also form part of future years funding. As part of the quinquennial Institute Assessment Exercise (IAE), completed in 2023/24, funding has now been confirmed for 2024/25 and 2025/26 and provisional funding allocations set for the next two years to 2027/28 at £11.5m per annum. As part of financial forecasting, a base case scenario in regard to both income and expenditure which continued to show a steady decline in cash/investments, has been forecast up to 12 months from signing to 31 December 2026.

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REPORT OF THE TRUSTEES (INC THE STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2025

GOING CONCERN (CONTINUED)

Forecasts will include elements of estimations, however the level of uncertainty in our plans is not considered material.

UKRI-BBSRC continues to invest significant capital funds (£5.1m in 2024/25) and indicates that the Institute remains a key strategic organisation within the wider UKRI-BBSRC research community. The Institute continues to review its operating costs, with a restructuring process underway which will lead to a reduction in operating costs in 2025/26. This focus on longterm financial sustainability remains, with additional planned future cost savings in 2026/27.

Given that ;

Therefore, the Trustees believe that a combination of confirmed grant funding and commercial income, existing available free cash and investment reserves held by the Institute and its subsidiaries, provide assurance that the group can continue to fulfil its mission and objectives.

Accordingly, after making appropriate enquiries and reviewing the going concern scenario, the Trustees consider the Group and Parent Charity have adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from when these financial statements are approved. For this reason, the financial statements have been prepared on a going concern basis.

Mr T Livett Chairman of the Audit Committee, Trustee and Member

Date:

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THE BABRAHAM INSTITUTE

OPINION

(the ‘group’) for the year ended 31 March 2025 , which comprise the Consolidated Statement of Financial Activities _ incorporating the Income and Expenditure Account, Balance Sheets, Consolidated Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards , 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:

BASIS FOR OPINION

We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibi lities 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 and parent charitable company in accordance with the ethical requirement s that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significan t doubt on the group’s and the parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

macro-economic uncertainties such as increased

inflation in recent years, real term reduction in funding levels from Government agencies for life science research, and difficulties in attracting and retaining campus tenants , we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the group’s and parent charitable

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 and parent charity’s ability to continue as a g oing 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 directors with respect to going concern are described in the relevant sections of this report.

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(CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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:

MATTER ON WHICH WE ARE REQUIRED TO REPORT UNDER THE COMPANIES ACT 2006

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained included in the Annual Report .

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

adequate accounting records have not been kept by the parent charitable company, 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 set out on Page 5, 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 and the parent charitable going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

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(CONTINUED)

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Our audit procedures involved:

These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;

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(CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

USE OF OUR REPORT

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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Dean

Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants London

Date:

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - INCORPORATING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025

Note Restricted
revenue
funds
Restricted
capital
funds
Un-
restricted
funds
2025
Total
funds
2024
Total
funds
Income from:
Charitable activities
Trading activities
Investment income
Total income
2
Expenditure on:
Charitable activities
Raising funds
Taxation
7
Total expenditure
3
Profit on investments
11,12,16
Net income/(expenditure)		 19,378
5,151
4,329
28,858
28,837
-
-
17,886
17,886
17,441
-
-
756
756
344
19,378
5,151
22,971
47,500
46,622
(19,378)
-
(18,347)
(37,725)
(35,550)
-
-
(17,275)
(17,275)
(13,405)
-
-
(113)
(113)
(628)
(19,378)
-
(35,735)
(55,113)
(49,583)
-
-
717
717
158
-
5,151
(12,047)
(6,896)
(2,803)
Net income/(expenditure) for the year is
attributable to:
The parent undertaking
Minority interest		 -
5,151
(12,060)
(6,909)
(3,188)
-
-
13
13
385
-
5,151
(12,047)
(6,896)
(2,803)
Transfers
Release of capital funds/transfers
17
Other recognised gains and losses
Gain on revaluations of tangible fixed assets
9		 (5,230)
(8,067)
13,297
-
-
-
3,060
-
3,060
5,259
Other recognised gains for the year is
attributable to:
The parent undertaking
Minority interest		 -
3,060
-
-
5,259
-
-
-
-
-
-
3,060
-
3,060
5,259
Movement in funds attributable minority
interests
11
Net movement in funds
Balances brought forward
17
Balances carried forward at 31 March 2025
17		 -
(8)
(13)
(21)
(385)
(5,230)
136
1,237
(3,857)
2,071
6,048
123,925
20,278
150,251
148,180
818
124,061
21,515
146,394
150,251

All amounts relate to continuing activities. All recognised gains and losses are included in the consolidated statement of financial activities. The notes on pages 35 to 59 form part of these financial statements.

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REGISTERED NUMBER: 03011737 BALANCE SHEETS AT 31 MARCH 2025

Note Group Institute Institute
2025 2024 2025 2024
£000 £000 _—«£000 £000
Fixed assets
Intangible assets 8 379 353 - -
Tangible assets 9 113,674 111,410 112,662 110,540
Investment properties 10 - 1,800 - 1,800
Investments 11,12 22,338 25,001 26,374 29,131
136,391 138,564 139,036 141,471
Current assets
Stocks 13 352 371 130 136
Debtors 14 6,830 7,395 4,053 5,111
Cash at bank and in hand 21 20,215 23,412 2,254 5,242
27,397 31,178 6,437 10,489
Creditors: amounts falling due within
one year		 15 (11,582) (13,534) (5,421) (7,768)
Net current assets 15,815 17,644 1,016 2,721
Total assets less current liabilities 152,206 156,208 140,052 144,192
Debtors: amounts falling due
after more than one year 16 2,688 2,522 - -
Net assets 154,894 158,730 140,052 144,192
Funds
Restricted capital fund 45,873 46,729 45,847 46,695
Revaluation Reserve 78,188 77,196 78,188 77,196
17 124,061 123,925 124,035 123,891
Unrestricted funds 17 21,515 20,278 15,199 14,253
Restricted revenue fund 17 818 6,048 818 6,048
146,394 150,251 140,052 144,192
Minority Interests 11 8,500 8,479 - -
154,894 158,730 140,052 144,192

The Institute includes in its financial statements leasehold land and buildings owned by third parties, these are detailed further in notes 9 and 10.

These financial statements were approved by the Board of Trustees and authorised for issue on

Mr T Livett Chairman of the Audit Committee, Trustee and Member

The notes on pages 35 to 59 form part of these financial statements.

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CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2025

Note 2025
2024
Cash flows from operating activities
Net Income/Expenditure
Adjusted for
Depreciation charges
9
Amortisation of intangible assets
8
Profit on disposal of fixed assets
(Reversal)/Impairment of investments
11
Capital grants received
2
Tax charge
7
Interest received
2
Decrease/(Increase) in stocks
13
Decrease/(Increase) in debtors
14
(Decrease)/Increase in creditors
15
Tax (paid)/recovered
Net cash (used)/provided by operating activities
Cash flows from investing activities
Interest and investment income received
2
Payments to acquire intangible fixed assets
8
Payments to acquire tangible fixed assets
9
Payments to acquire investments(net of fees)
12
Receipts from sale of tangible fixed assets
Receipts from sale of investments
Cash funds withdrawn from investments held
12
Capital grants received
2
Net cash provided/(used) by investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period
The net debt reconciliation is shown in Note 21.		 (6,896)
(2,803)
8,154
7,177
40
29
525
(10)
(32)
1,659
(5,151)
(4,534)
113
(628)
(756)
(344)
19
(34)
1,232
(499)
(1,724)
15
(1,004)
725
(5,480)
753
756
344
(88)
(128)
(5,843)
(4,712)
(12,971)
(11,515)
34
20
12,186
9,768
3,058
1,675
5,151
4,534
2,283
(14)
(3,197)
739
23,412
22,673
20,215
23,412

The notes on pages 35 to 59 form part of these financial statements.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK an Republic of Ireland (FRS 102) and the Companies Act 2006. The particular accounting policies adopted in the preparation of the financial statements are set out below and have been applied consistently with the previous year.

1.2 Going Concern

The Babraham Institute is dependent on various funding sources including UKRI-BBSRC to meet its liabilities as they fall due within future years. The current funding model is not sufficient to meet costs, and the institute is expecting net cash outflows for the going concern period. To this extent, a release of BBSRC restricted revenue funds (£500k) will also form part of future years funding. As part of the quinquennial Institute Assessment Exercise (IAE), completed in 2023/24, funding has now been confirmed for 2024/25 and 2025/26 and provisional funding allocations set for the next two years to 2027/28 at £11.5m per annum. As part of financial forecasting, a base case scenario in regard to both income and expenditure which continued to show a steady decline in cash/investments, has been forecast up to 12 months from signing to 31 December 2026. Forecasts will include elements of estimations, however the level of uncertainty in our plans is not considered material.

UKRI-BBSRC continues to invest significant capital funds (£5.1m in 2024/25) and indicates that the Institute remains a key strategic organisation within the wider UKRI-BBSRC research community. The Institute continues to review its operating costs, with a restructuring process underway which will lead to a reduction in operating costs in 2025/26. This focus on longterm financial sustainability remains, with additional planned future cost savings in 2026/27.

Given that ;

Therefore, the Trustees believe that a combination of confirmed grant funding and commercial income, existing available free cash and investment reserves held by the Institute and its subsidiaries, provide assurance that the group can continue to fulfil its mission and objectives.

Accordingly, after making appropriate enquiries and reviewing the going concern scenario, the Trustees consider the Group and Parent Charity have adequate resources to continue in operational existence for the foreseeable future being a minimum of twelve months from when these financial statements are approved. For this reason, the financial statements have been prepared on a going concern basis.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

1.3 Basis of consolidation

The consolidated financial statements incorporate the financial statements of subsidiary companies - Babraham Research Campus Limited and Babraham Institute Enterprise Limited.

The results of the subsidiaries are incorporated on a line by line basis as required under the SORP.

Babraham Institute Enterprise Limited has a 40% holding in Bioscience Partnership Limited. The results of Bioscience Partnership Limited have not been included for consolidation purposes on the grounds that it is immaterial in the context of group operations.

A separate income and expenditure account dealing with the results of the charitable company has not been presented as permitted under section 408 of the Companies Act 2006. The charitable company, The Babraham Institute, is referred to as the Institute throughout the financial statements.

1.4 Incoming resources

Income comprises unencumbered grants received from research councils; grant income from collaborative, commissioned and competitively awarded research projects; income from miscellaneous charitable activities; commercial and residential rents from the letting of Group controlled property; and interest earned on the investment of surplus funds.

Income is recognised when the Institute becomes legally entitled to the income and the amount can be quantified with reasonable accuracy. All core UKRI-BBSRC grants are recognised as revenue in the year they are receivable. Grant income including research grants received in advance of conditions being met is deferred until those conditions are fully satisfied.

Capital grants are recognised in the consolidated statement of financial activities when entitlement passes, and once the criteria of certainty and measurement are met.

Other charitable income represents non-grant revenue from providing scientific research services to other academic institutions and other services. Revenue is recognised in the year in which the obligation is fulfilled.

Trading income, which includes rent and letting income and other income relates to non-charitable services undertaken and is recognised in accordance with the terms of the contracts entered into, reflecting the point at which the obligations have been satisfied.

1.5 Fund accounting

Unrestricted funds

Unrestricted funds represent income which is expendable at the discretion of the Board in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investments.

Restricted funds

Income received by way of grants, sponsorship, donation or legacy which is directed by the provider as to be applied for specific purposes is accounted for within restricted income. Awards applied within the terms dictated by the awarding authority on the acquisition or improvement of tangible fixed assets are also accounted for within restricted income funds in full. The balance of the restricted fixed asset fund is reduced by the depreciation or amortisation charges over the expected useful life of the asset. This treatment has been applied to reflect the assets being on land owned by a third party, therefore at the end of the lease they will revert to that third party (see further explanation below regarding the ownership of land and buildings).

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

1.6 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Resources expended are classified according to the nature of the cost as follows;

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

Trading activities - represents the costs associated with trading and raising income including the Institute's rental activities and tenant services and investments. Commercial trading operations relate to income and expenditure incurred by the trading subsidiaries.

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

Support costs - consistent with the use of the resource, e.g. floor area, staff numbers.

1.7 Tangible fixed assets

The Institute includes in its financial statements leasehold land and buildings owned by third parties, which it occupies and enjoys through peppercorn leases, at their full value. The Trustees consider that in substance, the risks and rewards of ownership of the assets have passed to the Institute, and as such follow a policy of recognising the assets on the balance sheet to reflect the continuing occupancy of these assets for the foreseeable future. The Institute s lease with its landlord (UKRI) was renewed on 31 July 2019 for a further 25 years, again at peppercorn rent.

In 2020-21 BRCL renewed its lease with its Landlord (UKRI) and rent is now payable on leasehold land and buildings owned by third parties. This lease is recognised as an operating lease and hence BRCL no longer recognises any land and buildings on its balance sheet.

objectives. These properties are held at fair value. Other buildings represent those buildings used for ancillary purposes. These properties are held at cost less impairment

1.8 Fixed asset revaluation

Leasehold land and buildings are included at open market value where this can be established or depreciated replacement cost in the case of specialised scientific buildings. Professional valuations are reviewed periodically in the interim periods. The resulting valuations are depreciated in accordance with the depreciation policy.

1.9 Depreciation

Depreciation is provided by the group to write off the cost or valuation, less estimated residual values, of all fixed assets other than assets in course of construction, evenly over their expected useful lives. It is calculated at the following rates:

*Computer equipment, Non-computer equipment and Energy Generating plant are included in Fixtures and Equipment in Note 9.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

1.10 Impairment of fixed assets

The need for any fixed asset impairment write-down is assessed by comparison of the carrying value of the asset against the higher of net realisable value and value in use.

1.11 Investment property

Investment Properties represent long leasehold properties let to tenants on a commercial basis. These properties are held at open market value with any changes in value held in a revaluation reserve unless the value of the reserve is insufficient to cover a deficit when an impairment loss is put through the SOFA.

The Institute includes in its financial statements leasehold investment properties owned by third parties, that it occupies and enjoys through peppercorn leases at their full market value. The Trustees consider that in substance, the risks and rewards of ownership of the assets have passed to the Institute, and as such follow a policy of recognising the assets on the balance (UKRI) was renewed on 31 July 2019 for a further 25 years, again at peppercorn rent.

Within BRCL, a single new lease was entered into in December 2020, with new terms and provisions, including the requirement to pay rent to UKRI-BBSRC. The lease is structured in a way to represent the role BRCL has in the delivery of the Campus vision on behalf of UKRI-BBSRC and to protect the significant capital investment UKRI-BBSRC has made into the Campus. The nature of the rent provisions and short surrender rights means this lease is accounted for as an operating lease. It includes assets used for leasing out to life science start up and scale up businesses, plus service and self-occupied buildings and does not recognise any valuation on the balance sheet.

1.12 Intellectual property

The cost of acquired intellectual property is capitalised and written off over its useful economic life. Intellectual property assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.

1.13 Research and development costs

Research and development costs are written off to the consolidated statement of financial activities account as they are incurred.

1.14 Grants

UKRI-BBSRC capital grants are included within restricted capital funds and released over the estimated useful economic lives of the assets funded by the grant.

1.15 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.16 Foreign currencies

Foreign currency transactions are translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet dates. Any differences are taken to the statement of financial activities.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

1.17 Pension costs

-BBSRC contracts. All Institute staff are now employed under local contracts, however staff previously contributing to the Research ension scheme retained the right to continue contributing to this scheme.

This is an unfunded multi-employer defined benefit scheme. Since any assets and liabilities of the scheme cannot be split charged to the income and expenditure account as incurred.

Contributions by all other Institute staff and those by the subsidiary undertakings (BRCL and BIE) are made to a defined contribution pension scheme and charged to the income and expenditure account as incurred.

1.18 Redundancy costs

A liability is recognised for redundancy where the charity is demonstrably committed to terminating the employment of an employee. Redundancy payments are charged to the Statement of Financial Activities as incurred or at an estimated value at the reporting date.

Redundancy payments for employees who remain on UKRI- BBSRC contracts are outlined in the Civil Service Compensation Scheme Terms and approved by Joint Superannuation Services (JSS) who administer the scheme on behalf of the charity.

All other Institute staff (non UKRI-BBSRC) and those employed by the subsidiary undertakings (BRCL and BIE) are calculated in accordance with statutory provisions.

1.19 Leased assets

are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the income and expenditure account.

Lease payments are analysed between capital and interest components. The interest element of the payment is charged to the income and expenditure account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are charged to the statement of financial activities on a straight-line basis over the term of the lease.

1.20 Taxation

The Institute is a registered charity within the meaning of the UK Taxes Acts and is, therefore, eligible to claim exemptions to income tax and capital gains tax.

The trading subsidiary companies are liable for assessment to taxation.

1.21 Fixed Assets Investments (excluding properties)

Investments in subsidiaries and associates are stated at cost. To the extent that the carrying value exceeds the recoverable amount, an impairment loss is recognised. Other fixed asset investments are either held at fair value or cost less impairment. Net gains and losses arising on revaluations and disposals during the year are included in the statement of financial activities.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

1.21 Fixed Assets Investments (excluding properties) continued

of

the share of net movement in funds are allocated against the interests of the Group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses.

1.22 Investments

Investments are shown at fair value with historical cost separately disclosed. Net gains and losses arising on revaluations and disposals during the year are included in the statement of financial activities.

1.23 Financial Instruments

The Group only has financial assets and financial liabilities which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.24 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition or the balance sheet date and that are readily convertible to known amounts of cash with insignificant risk of change of value.

1.25 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.26 Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these estimates have been made include:

Depreciation, which has been charged in line with the accounting policy above. The amount of depreciation charged and net book value of the assets is included in Note 9.

The items in the financial statements where these judgements have been made include:

Land and buildings and Investment Property are held at fair value as determined by a professional valuer in line with the accounting policy 1.7 and 1.11 above. The carrying value, and valuation movements, are included in Notes 9 and 10.

40

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

2 ANALYSIS OF INCOMING RESOURCES

Restricted
revenue
funds
Restricted
capital funds
Unrestricted
funds
2025
Total
2024
Total
Trading activities:
Grant Income
Goods and services
Rent
Investment income:
Bank interest and dividends
receivable
Royalty/licence income
Charitable activities:
Grants and Donations UKRI-BBSRC
- Competitive strategic grant
- Minor works
- Other grants
Competitive project grants
Medical Research Council
University Links
European Union
Industry, levy boards
Trusts, foundations, charities
Goods and services
Rent
Total income
Total Income 2024		 -
-
1,550
1,550
1,028
-
-
5,491
5,491
5,448
-
-
10,845
10,845
10,965
-
-
17,886
17,886
17,441
-
-
732
732
318
-
-
24
24
26
-
-
756
756
344
11,601
5,151
-
16,752
16,135
833
-
-
833
813
476
-
-
476
1,368
1,984
-
-
1,984
1,168
750
-
-
750
1,052
103
-
-
103
168
1,071
-
-
1,071
1,040
715
-
-
715
180
1,845
-
-
1,845
1,865
-
-
2,757
2,757
3,145
-
-
1,572
1,572
1,903
19,378
5,151
4,329
28,858
28,837
19,378
5,151
22,971
47,500
46,622
19,255
4,534
22,833
46,622

Charitable activities relate on the whole to scientific research. Goods and services income and rental income relate to the sale of services, both scientific and non-scientific services to external companies and individuals.

Incoming resources can be geographically analysed as:

2025
2024
UK
Europe
Rest of World		 46,315
45,301
1,126
1,213
59
108
47,500
46,622

41

Commercial in Confidence

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

3 ANALYSIS OF CHARITABLE RESOURCES EXPENDED

Allocation basis Scientific
Research
Governance		 Total
2025
Total
2024
Staff costs
Direct
Laboratory supplies
Direct
Travel and subsistence
Direct
Equipment and hire charges
Direct
Computing costs
Direct
Library
Direct
Legal & professional charges
Direct
Recruitment
Direct
Training
Direct
Other costs
Direct
Scientific services support costs
Use of resource
Total Charitable costs
Total Charitable costs 2024
Commercial trading operation costs
Taxation (note 7)
Total Group costs		 7,465
147
1,891
-
300
8
45
-
-
-
20
-
31
198
9
-
3
-
389
-
27,219
-		 7,612
7,017
1,891
2,040
308
172
45
39
-
3
20
62
229
216
9
12
3
3
389
231
27,219
25,755
37,372
353		 37,725
35,550
17,275
13,405
113
628
35,199
351
55,113
49,583

Restricted expenditure included in the above is £19,378k (2024: £19,255k). All other expenditure is unrestricted.

42

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

3 ANALYSIS OF CHARITABLE RESOURCES EXPENDED (CONTINUED)

Analysis of scientific services support costs for charitable purposes

Administration
Estates
Technical
Services
Total
2025
Total 2024
£'000
£'000
£'000
£'000
£'000
Staff costs
Travel and subsistence
Repairs and minor works
Rent and rates
Fuel and water charges
Equipment and hire charges
Depreciation
Minor works
Waste disposal
Computing costs
Legal and professional charges
Recruitment
Training
Library
Food purchases
Bad debts
Loss on disposal of fixed assets
Other costs
Total Support Costs 2024		 3,593
1,208
4,115
8,916
8,882
99
1
61
161
177
30
1,613
853
2,496
1,729
792
139
-
931
844
185
1,964
-
2,149
1,984
119
21
47
187
291
7,732
-
-
7,732
6,842
-
4
15
19
818
-
4
-
4
7
165
17
387
569
516
117
93
41
251
312
10
-
-
10
16
155
-
8
163
119
37
-
228
265
247
49
-
-
49
56
-
-
-
-
3
252
-
-
252
-
946
876
1,243
3,065
2,912
14,281
5,940
6,998
27,219
25,755
12,864
5,322
7,569
25,755

Governance Expenditure

Governance costs during the year can be analysed as

2025
2024
£'000
£'000
Staff costs
Travel and subsistence
Legal and professional charges		 147
140
8
11
198
200
353
351

43

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

4 INCOMING RESOURCES AND RESOURCES EXPENDED

Group Institute
2025 2024 2025 2024
Incoming resources and resources
expended are stated after charging:
Amounts payable to auditors in respect of
audit services to the Institute 77 75 77 75
Amounts payable to auditors in respect
of audit services to subsidiary
undertakings 43 43 - -
Amounts payable to auditors in respect of 16 10 6 5
non-audit services*
Net loss/(gain) on foreign currency
translations 6 (40) 6 (40)
Depreciation 8,154 7,177 7,732 6,842
Amortisation of intangible fixed assets 40 29 - -
Profit/(loss) on disposal - fixed assets 525 (10) 252 -
Operating lease payments in respect of:
-
land and buildings		 1,980 1,913 780 713
-
other leases		 20 12 20 12

5 EMPLOYEES

Staff costs for all employees were as follows:

Group
Institute
2025
2024
2025
2024
Wages and salaries
Social security costs
Other pension costs		 16,304
15,708
13,559
13,073
1,560
1,485
1,269
1,205
2,083
1,987
1,700
1,631
19,947
19,180
16,528
15,909

The average number of employees during the year was as follows:

2025
2024
No
No
Charitable activities
Support activities
Commercial operations		 106
102
196
196
59
58
361
356

Redundancy costs (included in wages and salary costs) during the year totalled £61k (2024: £240k). Redundancy costs relate to staff on external grants, where the grant finishes and staff are not transferred to other Institute employment. Redundancy payments are based on contractual obligations and agreed schemes.

44

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

5 EMPLOYEES (CONTINUED)

The number of staff earning greater than £60,000 was:

Group
Institute
2025
2024
2025
2024
No
No
No
No
£ 60,000 - £ 69,999
£ 70,000 - £ 79,999
£ 80,000 - £ 89,999
£ 90,000 - £ 99,999
£100,000 - £109,999
£110-000 - £119,999
£120-000 - £129,999
£130,000 - £139,999
£150,000 - £159,999
£160,000 - £169,999
£170,000 - £179,999		 19
17
19
15
10
11
9
10
9
4
9
3
1
2
-
1
1
2
1
1
-
1
-
1
2
2
1
1
3
2
3
2
1
-
-
-
1
1
1
1
1
1
-
-
48
43
43
35

Within the Institute, the number of staff earning over £60,000 for whom retirement benefits are accruing under defined contribution schemes amount to 31 (2024: 21) and the amounts paid in the year were £268,261 (2024: £181,382).

The number of staff earning over £60,000 for whom retirement benefits are accruing under the RCUK pension scheme amount to 12 (2024: 14) and the amounts paid in the year were £298,771 (2024: £317,718).

6 REMUNERATION AND BENEFITS TRUSTEES AND KEY MANAGEMENT PERSONNEL

None of the members of the Board of Trustees received any remuneration from the Institute during the year. Aggregate expenses incurred by 11 (2024: 14) Trustees in respect of travelling costs totalled £8,100 (2024: £10,674).

Key management personnel includes staff within the highest two pay bands within the Institute. This comprises the Institute Director, Chief Operating Officer, heads of each of the science programmes, plus one other senior group leader - who form part of Babraham Executive Committee (BEC).

The aggregate remuneration for key management personnel during the year was £1,087k (2024: £1,033k). There were no other transactions with key management personnel during the year (2024: none).

45

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

7 TAXATION

Group
Institute
2025
2024
2025
2024
Corporation tax
Current tax on profits for the year
BRCL
Tax Relief in respect of gift aid
BRCL
Current tax on profits for the year - BIE
Total Current Tax
Deferred tax
Origination/reversal of timing differences
BRCL
Origination/reversal of timing differences
BIE
Total taxation on profits for the year		 209
738
-
-
(96)
-
-
-
-
4
-
-
113
742
-
-
-
-
(28)
(86)
-
-
-
-
113
628
-
-

The Babraham Institute is a registered charity and is exempt from tax on income and capital gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the Charitable Company.

The tax assessed for the year is lower (2024: lower) than the standard rate of corporation tax in the UK of 25% (2024: 25%). The tax differences shown below refer to the trading subsidiaries, Babraham Research Campus Limited and Babraham Institute Enterprise Limited :

Institute Enterprise Limited :
Group
2025
2024
Surplus on ordinary activities before tax as shown in the accounts of the
trading subsidiary - BRCL
Surplus on ordinary activities before tax as shown in the accounts of the
trading subsidiary - BIE
Surplus on ordinary activities multiplied by the standard rate of corporation
tax at 25% (2024: 25%).
Effects of:
Expenses not deductible for tax purposes
Income not taxable for tax purpose (investment gains)
Exempt ABGH distributions
Other permanent differences
Amounts relating to other comprehensive income or otherwise transferred
Other differences leading to an increase/(decrease) in tax charge
Tax relief on gift aid payment
Total taxation on profits for the year		 769
469
2,643
536
309
795
(21)
49
-
(82)
(26)
-
37
-
(50)
(40)
-
(96)
(134)
113
628

46

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

8 INTANGIBLE ASSETS

Group

Group
Intellectual
Property
Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Amortisation
At 1 April 2024
Provided for the year
On Disposals
At 31 March 2025
Net book value
31 March 2025
31 March 2024		 447
88
(25)
510
94
40
(3)
131
379
353

Intangible assets relate to intellectual property purchased by the subsidiary company Babraham Institute Enterprise Limited.

47

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

9 TANGIBLE ASSETS

Group Short leasehold
land and buildings
Fixtures and
Equipment
Total
Cost or valuation
At 31 March 2024
Additions
Revaluation
Disposals
Transfer from Investment Properties
At 31 March 2025
Depreciation
At 31 March 2024
Provided for the year
Disposals
Revaluations
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 97,714
40,863
138,577
-
5,843
5,843
(513)
-
(513)
-
(2,270)
(2,270)
1,800
-
1,800
99,001
44,436
143,437
-
27,167
27,167
3,573
4,581
8,154
-
(1,985)
(1,985)
(3,573)
-
(3,573)
-
29,763
29,763
99,001
14,673
113,674
97,714
13,696
111,410

The Group includes in its financial statements leasehold land and buildings owned by third parties, which it occupies and enjoys through peppercorn leases, at their full value of £99m. The trustees consider that in substance, the risks and rewards of ownership of the assets have passed to the Group, and as such follow a policy of recognising the assets on the balance sheet to reflect the continuing occupancy of these assets for the foreseeable future. The only circumstance under which the Group could be ask

peppercorn rent.

Short leasehold land and buildings include scientific buildings which are leased and used by the Institute for the purpose of of £99.0m.

Babraham Institute land and buildings were valued as at 31 March 2025 by Radice Surveyors, acting as external valuer on the basis of Existing Use Value on the special assumption that the lease from the UKRI-BBSRC is ignored and the Properties are assumed to be held freehold by the Institute.

The valuation has been carried out in accordance with the RICS Valuation Global Standards 2017 (which incorporates the International Valuation Standards 2017) and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland on the basis of Existing Use Value - using a Depreciated Replacement Cost Approach for the specialised buildings and either a Market or Income Approach for all other buildings and land. This valuation resulted in an increase in valuation of £3,060k at the year end.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

9 TANGIBLE ASSETS (CONTINUED)

Properties held for the purpose of rental income are included in Investment property (Note 10).

Institute Short
leasehold land
and buildings
Fixtures and
equipment
Total
Cost or valuation
At 31 March 2024
Additions
Revaluations
Disposals
Transfer from Investment Properties
At 31 March 2025
Depreciation
At 31 March 2024
Provided for the year
Disposals
Revaluations
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 97,714
36,430
134,144
-
5,279
5,279
(513)
-
(513)
-
(2,226)
(2,226)
1,800
-
1,800
99,001
39,483
138,484
-
23,604
23,604
3,573
4,159
7,732
-
(1,941)
(1,941)
(3,573)
-
(3,573)
-
25,822
25,822
99,001
13,661
112,662
97,714
12,826
110,540

The Institute includes in its financial statements leasehold land and buildings owned by third parties, which it occupies and enjoys through peppercorn leases, at their full value. The trustees consider that in substance, the risks and rewards of ownership of the assets have passed to the Institute, and as such follow a policy of recognising the assets on the balance sheet to reflect the continuing occupancy of these assets for the foreseeable future.

The only circumstance under which the Institute could be asked to vacate the site is due to a failure to deliver the required July 2019 for a further 25 years, again at peppercorn rent.

See note above (tangible fixed asset group) regarding the professional valuation for Babraham Institute land and buildings.

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

9 TANGIBLE ASSETS (CONTINUED)

Short leasehold land and buildings include scientific buildings which are leased and used by the Institute for the purpose of £99.0m.

Properties held for the purpose of rental income are included in Investment property (Note 10).

The historical net book value of land and buildings is as follows:

Group
Institute
2025
2024
2025
2024
Historical net book value at 31 March 2025 18,086
19,593
18,086
19,593

10 INVESTMENT PROPERTY

Group Long term leasehold
investment properties
Valuation
At 1 April 2024
Revaluation
Transfer to land and buildings
At 31 March 2025
Historical net book value
at 31 March 2025		 1,800
-
(1,800)
-
-

Investment properties within Babraham Institute became vacant during 2024-25 and use of the buildings reverted back to the Institute. As such, the value of investment properties has been transferred to general land and buildings prior to any revaluation. Any change in valuation at year end has now been recognised through revaluation reserves.

Institute Investment property
Valuation
At 1 April 2024
Revaluation
Transfer to land and buildings
At 31 March 2025
Historical net book value
at 31 March 2025		 1,800
-
(1,800)
-
-

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

11 FIXED ASSET INVESTMENTS

Trade investments represent listed and unlisted investments held by the trading subsidiary companies. Trade investments held by subsidiary companies are in both the UK and Europe.

Group Trade
Investments
Market Value
At 31 March 2024
Disposals
Gains on investments
Impairment reversal
At 31 March 2025		 2,546
(250)
312
32
2,640

Further listed investments are held within Babraham Institute (the parent company) of £19,698k (see note 12). Overall, group investments total £22,338k.

Within the Institute, Group of Babraham Institute Enterprise Limited and Babraham Research Campus Limited.

Institute Group
Undertakings
Cost
At 31 March 2024
At 31 March 2025		 6,676
6,676

Further listed investments within Babraham Institute total £19,698k (see note 12). Institute investments (non-group) are £26,374k.

The results and assets of its subsidiaries shown for the period ended 31 March 2025 were:

Babraham Research
Campus Limited
Babraham Institute
Enterprise Limited
Total
Turnover
Profit for the period after
taxation
Non current assets
Current Assets
Current Liabilities
Net current assets
Non-current assets
Net assets		 18,441
1,138
19,579
465
469
934
1,862
2,175
4,037
21,450
832
22,282
(7,145)
(362)
(7,507)
14,305
470
14,775
2,688
-
2,688
18,855
2,645
21,500

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

11 FIXED ASSET INVESTMENTS (CONTINUED)

The Institute owns 75% of Babraham Research Campus Limited (Registered in England and Wales number 03241492 address Babraham Hall, Babraham, Cambridge, Cambridgeshire, CB22 3AT) and the UKRI-BBSRC owns the remaining 25%.

The Institute continues to own 100% of Babraham Institute Enterprise Limited (Registered in England and Wales number 06331858 address Babraham Hall, Babraham, Cambridge, Cambridgeshire, CB22 3AT); both companies are incorporated in England.

Other shareholdings held by Babraham Institute Enterprise Limited are detailed below:

The

company continues not to trade and therefore there is no movement during the year.

The results of Bioscience Partnership Limited are not consolidated on the grounds that they are immaterial in the context of group operations.

Minority interests represent 25% of BRCL held by UKRI-BBSRC.

Minority interest 2025
2024
At 1 April 2024
Share of profit
At 31 March 2025		 8,479
8,094
21
385
8,500
8,479

12 FIXED ASSET INVESTMENTS

==> picture [469 x 23] intentionally omitted <==

----- Start of picture text -----
Listed Securities Group and Institute Medium Term Long Term 2025 Total 2024 Total
Market Value
----- End of picture text -----

Listed Securities
Group and Institute
Market Value		 Medium Term
Long Term
2025 Total
2024 Total
At 1 April 2024
Additions
Disposals
Transfers/Withdrawals
Investment Income
Management Charges
Realised and unrealised gains
At 31 March 2025
Historic cost of initial investment		 2,288
20,167
22,455
22,384
1,076
11,997
13,073
11,626
(1,076)
(11,997)
(13,073)
(11,626)
(9)
(3,049)
(3,058)
(1,675)
8
49
57
40
(11)
(91)
(102)
(111)
87
259
346
1,817
2,363
17,335
19,698
22,455
2,174
16,408
18,582
20,338

Listed Securities represent investments held in medium term equity funds and longer-term fixed income instruments. The focus is on capital preservation and to avoid losses over the investment horizon, generating a return in excess of inflation over the long term whilst generating an income to support the ongoing activities of the Institute.

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12 FIXED ASSET INVESTMENTS (CONTINUED)

The investment portfolio includes investments which individually represent five percent or more of the total investments held. This is detailed below.

Value Proportion of
portfolio
Bluebay Funds Impact Aligned Bond 1,534 7.8%
Wellington Management Fund (Ireland) Plc 1,387 6.7%
Brown Advisory Funds Plc BA Global 1,326 7.0%
Brown Advisory Funds PLC US 1,035 5.3%

13 STOCKS

Group Institute
2025 2024 2025 2024
Raw materials, consumables and other stocks 352 371 130 136

14 DEBTORS

Group
Institute
2025
2024
2025
2024
Trade debtors
Amounts owed by group undertakings
Grants receivable
Corporation Tax
Other debtors
Prepayments and accrued income
Amounts owed by subsidiary undertakings
Babraham Research Campus Limited
Babraham Institute Enterprise Limited		 2,541
3,822
534
1,578
-
-
841
1,061
1,573
1,092
1,573
1,092
667
-
-
-
154
268
152
266
1,895
2,213
953
1,114
6,830
7,395
4,053
5,111
-
-
534
587
-
-
307
474
-
-
841
1,061

53

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Institute
2025
2024
2025
2024
Trade creditors
Amounts owed to group undertakings
Other creditors
Corporation tax
Other tax and social security
Grants in advance
EU co-ordinated programme partners
Accruals and other deferred income
Amounts owed to group undertakings
Babraham Research Campus Limited
Babraham Institute Enterprise Limited		 2,837
3,805
1,279
3,064
-
-
471
743
3,592
3,722
743
697
-
228
-
-
747
961
524
542
3,004
3,363
1,747
1,898
13
12
13
12
1,389
1,443
644
812
11,582
13,534
5,421
7,768
-
-
452
703
-
-
19
40
-
-
471
743

Reconciliation of movement in grants receivable and in advance:

2025
2024
Grants receivable/(in advance) at 1 April 2024
Additional grants
note 2
Released during year
Grants receivable/(in advance) at 31 March 2025		 (3,363)
(3,659)
19,378
19,255
(19,019)
(18,959)
(3,004)
(3,363)

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NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

16 DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Debtors falling due after more than one year of £2,688k (2024 : £2,522k) comprise deferred tax £297k and Other Debtors of £2,391k, analysed as follows ;

Deferred Tax

Deferred Tax
Group
Institute
2025
2024
2025
2024
At 1 April 2024
Credited/(charged) to the statement of financial activities
At 31 March 2025		 297
183
-
-
-
114
-
-
297
297
-
-

The provision for deferred tax is made up as follows:

Group
Institute
2025
2024
2025
2024
Fixed asset timing differences
BRCL		 297
297
-
-
297
297
-
-

Other Debtors

Group
Institute
2025
2024
2025
2024
Other Debtors
At 31 March 2025		 2,391
2,225
-
-
2,391
2,225
-
-

During the year, the shareholder loan provided to the joint venture with Biomed was adjusted by £166,000. This adjustment comprises of £107,000 in respect of accrued interest on the loan and £59,000 to reflect the present value of the loan, taking into account the expected future repayment date of April 2028.

55

Commercial in Confidence

THE BABRAHAM INSTITUTE

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

17 FUNDS

The incoming funds for the Institute include restricted funds comprising the following unexpended balances of donations and grants to be applied for specific purposes.

Restricted
revenue
funds
Restricted
capital
funds and
Revaluation
reserve
Unrestricted
funds
Minority
Interests
Total
Group
At 31 March 2024
Incoming resources
Expenditure, losses and taxation
Gain on investments
Transfers of funds
Gain on revaluations
Funds attributable to minority interests
At 31 March 2025
Institute
At 31 March 2024
Incoming resources
Expenditure and losses
Transfers of funds
Revaluation Movement
Investment Losses
At 31 March 2025		 6,048
123,925
20,278
8,479
158,730
19,378
5,151
22,971
-
47,500
(19,378)
-
(35,735)
-
(55,113)
-
-
717
-
717
(5,230)
(8,067)
13,297
-
-
-
3,060
-
-
3,060
-
(8)
(13)
21
-
818
124,061
21,515
8,500
154,894
6,048
123,891
14,253
-
144,192
19,565
5,151
7,184
-
31,900
(19,565)
-
(19,881)
-
(39,446)
(5,230)
(8,067)
13,297
-
-
-
3,060
-
-
3,060
-
-
346
-
346
818
124,035
15,199
-
140,052

The restricted revenue funds of £818k consist of:

funds specifically held by the Institute for future minor building repairs of £118k UKRI-BBSRC Strategic grant funding and Knowledge Exchange funding of £700k

The restricted capital funds comprise:

the assets gifted/let to the Institute from/by the UKRI-BBSRC and the revaluation of those assets, the revaluation of

As the grant requires these assets to be used for the purpose for which the grant was provided, they remain within restricted capital funds.

Details relating to the minority interest are included in note 11.

56

Commercial in Confidence

THE BABRAHAM INSTITUTE

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

17 FUNDS (CONTINUED)

The transfers of capital funds relate to the release of previously received capital income (held within Capital Reserves) against depreciated charges.

Analysis of net assets between funds

Fund balances at 31 March 2025 are represented by:

Restricted
revenue
funds
Restricted
capital funds
and
Revaluation
reserve funds
Unrestricted
funds
2025
Total
2024
Total
Group
Intangible fixed assets
Tangible fixed assets
Investment properties
Investments
Current and long-term assets
Total liabilities
Total funds
Minority Interests
Total net assets
Institute
Tangible fixed assets
Investment properties
Investments
Current assets
Total liabilities
Total net assets		 -
-
379
379
353
-
112,654
1,020
113,674
111,410
-
-
-
-
1,800
774
11,407
10,157
22,338
25,001
1,823
-
28,262
30,085
33,700
(1,779)
-
(9,803)
(11,582)
(13,534)
818
124,061
30,015
154,894
158,730
-
-
(8,500)
(8,500)
(8,479)
818
124,061
21,515
146,394
150,251
-
112,662
-
112,662
110,540
-
-
-
-
1,800
774
11,373
14,227
26,374
29,131
1,823
-
4,614
6,437
10,489
(1,779)
-
(3,642)
(5,421)
(7,768)
818
124,035
15,199
140,052
144,192

57

Commercial in Confidence

THE BABRAHAM INSTITUTE

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

18 OPERATING LEASES AND CAPITAL COMMITMENTS

The Institute and BRCL has entered into a number of operating leases for buildings, plant and machinery. The group s future minimum operating lease payments are as follows :

Group
Institute
2025
2024
2025
2024
Within one year
Within two to five years		 1,220
1,212
20
12
4,046
5,254
446
454
5,266
6,466
466
466

Capital commitments at the end of the financial year for which no provision has been made:

Group Institute Institute
2025 2024 2025 2024
Contracted 1,573 174 6 54

19 PENSIONS

-BBSRC

contracts. All Institute staff are now employed under local contracts, however staff previously contributing to the Research ension scheme retained the right to continue contributing to this scheme. This is an unfunded multi-employer defined benefit scheme. Since any assets and liabilities of the scheme cannot be split between participating employers, the sts are accounted as for a defined contribution scheme, with costs charged to the income and expenditure account as incurred.

Contributions by all other Institute staff are made to a defined contribution pension scheme and charged to the income and expenditure account as incurred.

A defined contribution pension scheme is operated on behalf of the employees of the subsidiary undertakings. The assets are held separately from those of the Institute in an independently administered fund.

The pension charge represents contributions payable and amounted to:

2025
2024
Babraham Institute
Babraham Institute Enterprise Limited
Babraham Research Campus Limited		 1,700
1,631
-
7
383
349
2,083
1,987

The amount of pension contributions included within creditors at the year end was £281,910 (2024: £262,768).

58

Commercial in Confidence

THE BABRAHAM INSTITUTE

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

20 FINANCIAL INSTRUMENTS

2025 2024
Financial assets measured at amortised cost 24,805 29,715
Financial liabilities measured at amortised cost (8,565) (9,931)

Financial assets measured at amortised cost comprise cash, trade debtors, other debtors and accrued income.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors, other tax and social security creditors, bank loans and accruals.

21 ANALYSIS OF CHANGES IN NET DEBT

At 1 April At 31 March
2024 Cash flows 2025
Cash and cash equivalents
Cash 23,412 (3,197) 20,215

22 RELATED PARTY TRANSACTIONS

The Babraham Institute owns 75% of Babraham Research Campus Limited with UKRI-BBSRC owning the remaining 25% and owns 100% of Babraham Institute Enterprise Limited.

The value of transactions with Babraham Research Campus Limited and Babraham Institute Enterprise Limited for the reporting year and balances outstanding at the year-end are as follows:

Babraham Research Campus
Ltd
Babraham Institute
Enterprise Ltd
2025
2024
2025
2024
Income
Expenditure
Debtors at 31 March 2025
Due within one year
Creditors at 31 March 2025		 1,373
1,513
1,002
1,691
(1,931)
(1,883)
(46)
(114)
452
703
19
40
(534)
(584)
(307)
(477)

There are no debts at year end which are repayable on demand or incur interest charges.

59