Cliarity i'egisli'ation iiuiiibei.: 1058933 The Mereside Education Trust Ti'uslees, Repoi'l and Finaiicial Stateinents for tl)e Year Elided 31 Deceinber 2023 mca Baiibuiy Lid 4 - 6 Tlie Whai'f Ceiitre Whai'f Sii'eet Waiwick Waiwicksl)ire CV34 5LB Tlhe Mereside Ei ducation Trust Coiitents Refei'ence and Adiniiiislrative Details Ti'uslees, Repoi'l 2105 liidependei)t Auditors, Repoi'¢ 6t09 Coiisolidated Statenient of Finaiicial Activities io Coiisolidaled Balance Slieel Balance Slieet 12 Consolidated Statement of Casli Flows 13 Notes lo Ilie Financial Stalenients 141026 The Mereside Education Trust Reference and Admiiiistr2tive Details Cliief Executive o￿lcer Mr A Wells Tt'llstees Mr M c11ad￿liek Mi. N Siinpson MI. M HLilcl)ins Mi. K Devenisli Mi. M Duiibai. Mi. V Wells Lewis Justin Baldwin Mi. C Lewis Mi. J Haywai'd 1058933 Chat'ity Registi'alion Nuniber Priiicipal Offiee Mereside Educatioi) Trust elo Hartfoi'd Maiioi. Gi'eeiibank Lai)e Nortliwich CW8 IHW Auditoi. nica Banbuiy Ltd 4- 6 The Wliai'f Centre Wliarf Street WaiTrviek Warwickshire CV34 5LB Bankers National Westminstei. Bank plc 23 Stainfoi'd New Road. Allrincll￿￿, Chesliii'e WA14 IDB Page I The Mereside Education Trust Ti'ustees, Report The Ti'iistees present tlieii. repoit witli Ilie financial staleinenls of tlie cliai'ity for Ilie year ended 31 gt Decenibei. 2023. Tlie Ti'iislees have adopted the pi-ovisions of Accounting and Repoi'ling by Chai-ities- Statenient of Reeoiiiniended Pi'actice applicable to el)arities pi'epai-ing theii. accounts in accoi'dance willi the Financial Reporting Siandai'd applicable iii Ilie UK and Republic of li'eland (FRS102) (effective l Januaiy 2019). Objective5 and activities Objecls uiid aiiiis The cl)arilable objects of tlie cliai'ity al'e tl)e advanceiiieiit of tl)e education of cliildi'eii and young people froin Ilic ages five to eig5)leen in pai'licular by assistance lo tlieii. pai'enls lo enable sucli cliildren lo be taugl)t otlici'wise Ilian at scliool as defined in tlie education acts 1944 10 1993. Any oiliei. cliarilable putyose foi. tl)e benefit of Ilie bi'etlii'en. In furiliei'ance of its objects, tlie Ti'ust pi'ovides the preniises undei- foiThal lease for an independent scliool baged in Noi'diwich, o¥vned by its subsidiai'y Hai'lfoi'd Investnienls Ltd (Compaiiy nunibei. 10279969), wliieli has been i'uii by On¢School Global UK (OSGUK). Tlie charity also piovides doiialioii ￿ndIng to OSGUK al tl)e disci'etion of Il)e Tiuslees in ordei. to enable OSGUK to provide a well balanced education at Pk'iiiiaiy and secondaiy levels, for cliildi'en and youiig people wliose pai'enls appreciate Ilie Clii'istian ethos. Success is iiieasui'ed in terms of Ilie pi'ovisioi) of appropi'iale facilities to OSGUK wliilst minin)ising expenditure. Tliis in turn, fl'ees up fui)ds for i'aising standai'ds of education foi- all coiicerned and foi. Ilie iiiipi'ovenient of facilities for pupils and staff alike. Tl)e Ti'uslees l)ave i'efei'red to Ilie guidaiice contained in tlie Cliarity Coinniissioii's general giiidaiice on public benefit and have i'egard lo il wlieii I'evicwing Il)eir aiiiis and objectives, and in plai)nii)g Ilieii. fiitui'e activities. In paiticiilar Il)ey consider Iiow planned activities will contribute to the ediicational aims and objectives Iliey liave sel. Voliinteers are an integi'al pai't of tlie coininuiiity etlios and valiies of the eliai'ity and tliere al'e strong and willing groiip of volunteers who assist and suppoi'l tlie cliarity tlll'oughout the yeai.. Tlie trading activities of tlie cliai'ity's trading subsidiary Quonto Eiitei'pi'ise Lid (Conipany Nuinber 08068645), whicli opei'ates a chain of conveiiieiice sloi'es, are undertaken by volunteei's. Page 2 The Mereside Education Trust Trustees, Report Acllieveinents aiid performaiice Financial i-evieiy The cliai'ily is supported aiid finaneed prii)cipally by pi'ofils froin its tradii)g subsidiai'y Quaiito Entetyi'ise Lid plus other ad l)oc doiialioiis and tliose raised by fuiidi'aisiiig eveiils and gi'ants froin Ilie Gl'ace Trust. Tlie Ti'iislees believe Ilial tlie cliarity's funds are sufficient lo niiligale any slioi'l lo niediiiin tei-ln risk of reduced fundiiig. The cl)ai-ity's fiindraising events principally opei'ale witliin tlie Bi'edii'en eoniiniinily and pi-ofessional fundi'aisei's al'e not used. Neither the cliai'ity noi. any pei'son aeling on belialf of tlie eliai'ity was subject to ali iindei'laking to be boiind by any voliiiitary scheine foi. regulatii)g fiiiid_i'aisiiig, oi. voluiilai'y slaiidai'd foi. fiiiid_i'aisiiig iii respect of activities on belialf of tlie Tiusl. In the yeai. ended 3 1st Deceiiibei. 2023 the chai'ity I'epoi'led a suiylus of £2,421,757 (2022 defieil of £282,792). The gi'oup i'epoi'led a surplus of £2,454,659 (2022 deficit of £79,622). At Il)e year end tl)e cl)arity liad net eiii'reiit liabilities of £310,613 (2022 net eiirreiil liabilities of £2.732,370). Tlie group l)ad net eui'i'eiit liabilities of £365,364 (2022 nel curi'ent liabilities of £2,820,013). Tlie chai-ity's policy is to Inaiiitain ininiinuiii free i'esei'ves at a level wliicli equates lo six Inontlis, uni'estricted expeiidilui'e. This is appi'oxiinalely £147,368. At the year end 2023 tlie fl'ee I'esei'ves of tlie cliai-ity wei'e £310,613 {31 sl Deceniber 2022 £2,732,370). Tlie Tt'iistees completed on the sale of the old scliool site in Stockpoi't for £2.651n. Tlie Hartford Maiioi. site coinpi'ises the Maiioi- House froin wl)icli Ilie scliool opei'ates. an adjacei)I dei'elict cottage and appi'oxiniately one aere of unused car pai'kiiig ai'ea. Hartfoi-d Manoi. is held at a cai'rying value of £1.504711). Hai'iford Maiioi. has been valued in April 2023 at £3.7m. Tlie Trustees intend lo li?iisfer Hai'tfoi'd Manor up into Ilie T￿st at tl)e eai'liesl opporttinity as pai't of tlie stmctui'al siinpliftcalion of tlie Group. Tlie site at Hai'tford Maiioi. includes the Scliool along with a collage and suiplus cai. parlc area. Tlie Trustees believe tliat tlie disposal of Il)e cottage and / or sui'i)lus cai. park could i'aise additional funds wiil)out causiiig Inajor disi'uptioi) lo Ilie opei'ation of tlie scliool, altliougli no potential buyei. S)as yet been sou81it. At 31 Decenibei- 2023 Ilie Tnist ai)d Groiip l)ad 8iibslantial deficit ￿nds. The long-lenn aiin foi. Il)e Ti'usl has beeii to liold siifficient i'esei'ves to Ineel Il)ree inonili's opei'atiiig costs and to Iiave sufficient funds lo repay its loans as requii'ed. lil the shot'l to inediiim tei'm, tlie sale of tlie old school site in Stockport lias helped to alleviate the sl)orifall in funds and tlie sale of excess land and / oi. buildings at the Hartford Manoi. sile i'eniains undei. consideration. Tlie Tiust conliiiiies lo have i)umeroLiS offei's of loiig-lei'in loaii siipporl fi'om 'slakelioldei's" li) tlie TrLlSt (i.e., graduated students and tlieir pareiils oi. gi"gtndpareiils) wliicli could be used to offset oihei. loans requii'ing repayineiit. The TLUStees hope to retui'ii to a iiet assets position by 2024. Aftei. niaki5)g appiopi'iale enquiries, tlie Ti￿steeS liave a i-easot)able expectation that Ilie cl)arity has adequate I'esoui'ces lo continue it) operational existenee for Il)e foi'eseeable futtii'e. Foi. tliis reasoii, il continues to adopt Ilie going concei'n basis in pi'epai'iiig Ilie finaiicial slaleineiils. Fui'tliei. details regarding tl)e ildoption of tl)e going concei'n basis ean be found in Ilie Accouiiting Policies. Page 3 The MeR"eside Ei ducation Ti"ust Ti'ustees, Report Plaiis foi. futui'e pei'iods Aiiiis lliid key objecliiJÉ.sfoi'fiiliii'e ijei'iods Tlie Ti'ustees plan to continue to siippoi't OSGUK to provide a quality and delivei. a consistent and higl) level of educalioi)al cxpei'ience and outcoine for all studetlts aiid staff, iii accord<1nce witl) the cliai'ity's ethos aijd values. Structurey governance and ni8nagement Natiii'e ofgovei'iiiijg doc14111eiit Tlie Mei'eside Education Ti'ust is constituted by a Deed of Ti'ust dated 07 Api'il 1995, aiiiended 26 August 1996, 20 Mai'cl) 1997 and 18 December 2008 and is registered wit]i the Cliarity Comiiiission foi. Eiigland and Wales. The Ti'ustees who sei'ved during the year and since the yeai. end al'e set oiit on page l. None of thc TrLlStees, noi- any pei'son connected with tlieni, I'eceiiied any I'einunei'ation froni Il)e cliai'ity in the yeai. ended 31 sl Deeeniber 2023 (yeai. ended 31 st Decembei. 2022 £iiil). Tlie power to appoint TrLlStees is invested iii tlie existiiig TI￿SteeS subject to tl)¢ cliarity Deed I'equii'einent. Trustees al'e selected aecording to their own specialisni iii a pai'tieular field aiid al-e expected lo pui'sut that 5pecialisni. New TiiTrstees are instructed in Ilie need to conipletely adhei'e lo the etlios and values of tl)e cliaiity- New tiustees al'e appointed at chai'ity nieetings and training is given by tlie outgoing twsiee beiiig replaced, along witl) suppoi't froi)) fellow Ti'llslees. Finaiicial insti'uinents Objeelives aiidpolicies The Trustees liave exan)ined Ilie iiiajoi. strategic, business and operational i'isks tlial Il)e cliarity faces. Tlie TNstees at-e satisfied that Ilie iiiajor i'isks idei)lified liave been adequately iiiitigated wl)ere nece8sai'y. It is reeogiiised Iliat systems can only provide reasonable but iiot absolute assui'aiice that iiiajor risks li&ve been adequately iiianaged. The principal I'isks to tlie chai'ity are: •risk of damage to tl)e property lield by tlie cliai'ity {alil)ougli tlie pi'opei'ly l)olds pioperty insurance). 'risk of closui'e oi. relocation of Ilie scl)ooling by Oneschool Global UIC (considei'ed iinlikely). and 'I'isk of fall iii ti'ading activities ot" the wliolly owiied trading siibsidiai'y, eithei- due to a fall in ciistomei- loyalty oi. a sigiiificant inci'ease in supplier pi'ices {closely inonitoi-ed by tlie li'adiiig subsidiaiy directoi's Milio would tlien take appi'opriate aelioi)). There weit no sei'ious iiicidenls relating to the cliai'ity over Ilie year to I'epoit. Page 4 The Mereside Education Ti'ust Trustees, Report Statement of trustees, responsibilities Tlie tru.qtees are i'esponsible for pi'cparing tlie Annual Report and Ilie financial statements in accordance will) applicable law and United Kingdoin Accounting Siandai'ds {United Kingdom Genei'ally Aecepted Accoiinting Pi'aclice). The law applicable lo chai'ities in England and Wales requires ihe ti'ustees lo pi'epai'e financial statements foi. each finaiicial yeai. whicli give a true and fair view of the state of affairs of the ehai'ity and tlie group aiid of tlie incoming i'esoui'ces aiid application of resouL'ces of the charitable gi'oup for that pei'iod. In pi'epai'ing these financial statenieiils, the trustees are iequired to.. select suitable accounting policie8 and Ilien apply thein cons&slently' obseiwe tlie iiiethods and pi-inciples in the Charities SORP. ma ke judgeinents and estimates that al-e i'easonable and prudent; state whethei. applicable accounting standards have been followed, subject to any malei'ial depai'tui'es disclosed and explaiiied in tl)e financial slatenienls- pi'epare Ilie financial slateinents on Ilie going concern basis unless it is inappi-opriale lo presume that Ilie cliai'ity and group will continue in business. Tlic trustees are I'esponsible for keeping proper accounting recoi'ds that disclose witli reasonable accuracy at any tinie tlie financial position of the chai'ity and the group aiid enable Ilieni lo eiisure tliat the financial statenienl.s Coiiiply with Ilie Cliai'ilies Act 2011, Il)e Charity (Accounts and Reports) Regulations 2008 and Ilie pi'ovisions of the cl)arity deed. They are also i'esponsible foi- safeguai'ding tlie assets of Ilie cl)ai-ity aiid the group and lience for taking i'easonable steps foi. tlie prevention and detection of fi'aud and otliei. irregularities. Tlie annual rep pproved tlie trustees of tlie cliarity on...... . and signed on its belialf by: Mi. K Deveni Trustee Page 5 Tlie Mereside Education Ti"ust Indepeiident Auditor's Report to the Members of The Mei'eside Educ2tioii Trust Opinion We liave aiidiled Ilie financial slalenienls of Tl)e Mei'eside Educalioii Tnist {Ihe 'cliai'ltable pRI'ent conipany,) aiid its siibsidiai-ies (tl)e 'gi'oLlP') for tl)e year ended 31 Deeeinbei. 2023, wliich coinprise the Consolidated Statement of Financial Activities, Consolidated Balance Slieet, Balance Slieet, Consolidated Siateinent of Casli Flows and Notes to Ilie Financial Siateii)ents, including a siimmai'y of significant accoiinling polieies. The financial i-epoi'liiig frainewoi'k tl)al lias beeii applied in tlieir pi'epai'atioii is United Kingdom Accouiiliiig Siaiidai'ds, coinprisii)g Clia¥ilies SORP - FRS 102 'The Financial Reporting Slandai'd applicable iti tlle UK aiid Republic of Ireland, and applicable law (United Iciiigdoiii Genei'ally Aceepled Accounting Pi'aclice). li) oui. opinion tlie fiiianeial stateiiienls- give a true aiid fair view of the slate of Ilie group's aiid pat-ent cliarity's affaii's as at 31 Deceiiibei. 2023 aiid of ils incoining i'esoui'ces and application of resoui'ces, including ils incoiiie and expenditure, foi. Ilie yeai- tlien ei)ded. have been pi-operly piepai'ed iii accordaii¢e with United Kingdom Generally Accepted Aecouiitiiig Pi'actice. l)ave been pi'epared in accordance ￿1111] tlie i'equii'einenls of tlie Coinpanies Aet 2006. Basls foi. opinion We coiiducted our audit iii accordance with Inlematioiial Siandai'ds on Auditing (UIC) (ISAS (UK)) and applicable law. Oui. I'esponsibilities iindei- tliose slandai'ds ale furtliei. dtscribed in tlie audiloi. i-esponsibililies foi. tl)e audit of Il)e financial slateiiienls section of oui. repoi'l. We al'e independent of the gi'oup in accordance with tlie ethical i-equii'emenls that are relevant to oiii. audit of the financial stateinents in tlie UK, ii)cliiding tlie FRC'S Ethical Standard, and we liave fiilfilled out- otliei. ethical i'esponsibilities iii accoi-dance witli these requii'en)ents. We believe Iliat the audit evidence we l)ave obtained is sufficient and appi'opi'iate lo pi-ovide a basis foi. oui- opinioIi. Conclusions relating to going concei'n In auditing tlie financial statemerits, we have concluded tliat the Ii'ustees use of tlie going ¢oncei'n basis of accoiinting in the prepai'alion of tlie financial staleillenls is appropi'iate. Based on tl)e work we liave pei'foi'Iiied, we have not identified aiiy niaterial uncei-laiiities relalii)g lo events or conditions tliat, iiidividually oi. colleetively, Inay cast signifieaiit doubt on the gi'oup's ability to continue as a goii)g eoiicerii for a pei'iod of at least twelve months from wlien tlie origiiial fiiiai)cial stateiiieiils wei'e autl)orised foi. issue. Oui. i'esponsibilities and tl)e responsibilities of tl)e triistees witl) respect to going concern are described in the I'elevant sections ot this i'epoit. Otliei. inforiiiation The trustees 31-e i'esponsible for tlie oiliei. iiifonnalioii. Tl)e othei. iiiformalion coinprises tlie infoi'niation iiicliided iii the annual i'epoi'l, oiliei. tl)an the finaiicial slaleiiienls and our auditoi-'s i'eporl Ihei'eon. Oui. opiiiioii on Ilie financial slaleinenls does i)ot covei. the othel infoi'inalioii and, except to tlie exlejit oilieiwise explicitly slated in oui. i'epoit, we do iiot express any form of assui'ance eoiiclusioii thei'eon. Page 6 The Mereside El ducation Trust Independent Auditor's Repoi't to the Members of The Mei'eside Educatioii Ti'ust In connection witli oiir aiidit of tl)e finaricial slatenients, oiii. i'esi)onsibility is to l-ead tlie oil)ei' iiifot'ination and, in doing so, coi)siilei' wlieiliei. tlie otliei. infoi'inalion is nialei'ially inconsistcnt ivitli the financial statements oi. oiii. knowleilge obiaincd in the audit oi. oihei'ivise appears to be niatei'ially niisstated. If we identify sucli n)atei'ial incoiisislencies oi. apparent iiiatei'ial inisslateineiits, we al-e i'equii'ed to detei'miiie wlieiliei. tliere is a ii)aterial misstatenienl in tl)e fiiiancial stateiiieiils or a Inatei'ial misslateiiienl of Ilie otliei- infoi'tnalion. If, based oli tlie woi'k we liave pei'foi-lned, we coiiclude that Iliei'e is a inalerial misslateinei)l of Iliis oilier iiifoi'iiiaiion, we al-e required lo i'eporl that fact. We l)ave noiliing lo repoi'l ii) Iliis i'egaid. Opinion on otller niattei, presci'ibed by the CoinpAnies Act 2006 In oiii. opinion, based on tlie woi'k undertaken in the coiiise of the aiidit.. the infomiation given in the and Ti-listees, Repoit foi. tlie financial yeai. foi. wliicli the financial stalenients al'e pi'epai'ed is consistent witli tl)e financial slaleiiients. and tlie Tiustees, Repoi't liave been pi-epai-ed in accoi'daiice will) applicable legal requii'eiiiei)Is. Matters oil ivliicl) Ive al'e i'equii'ed to i'eport by exceptlon In tlie light of our kiioivledge and ui)derslandiiig of Ilie gioup and Ilie parent el)arilable coiiipany and ils environiiieiit obtained in tl)e course of Ilie audit, we l)ave iiol ideiitified inatei'ial niisstalei)ienls in the and tlie Trustees, Report. We liave notliiiig to t'epoi't iii respect of Ilie following mattel's wl)ei'e Ilie Companies Act 2006 requii'es us lo report lo you if, iii oui. opinioii.. adeqiiate accounting records l)ave iiot beeii kei)t by the pai'ent ¢hai'itable conipatiy, or i'eturns adequate for out. aiidit l)ave not been i'eeeived fi'oiii braiiclies not visited by us. oi. the parei)t cliaritable ¢oinpany financial slalei)ieiils al'e iiot iii agi'eenient willi Ilie accouiiting recoi'ds and retiiims. or cei'lain disclosures of ti'iistees, reinunei2tion specified by law are not inade. or we liave not received all tS)e infoi'mation and explanations we require for our audi¢. Responsibilitie5 of tj'ustees As explaiiied inore fully in Ilie Stalenieiit of trustees, I'esponsibilitie5 (s¢1 out oil page 5), the ti'ustces al'e i'espoiisible foi. the preparation of Ilie fiiiancial slaleinenls aiid for being satisfied tlial 11)ey give a liwe aiid fail. view, and foi. sucli iiitenial control as tl)e trustees detei'n)ine is necessaiy to enable the pi'epai'ation of finaneial stateinenls that al'e fl'ee ft'oni inaterial ii)isstateinenl, wl)etliei' due to fi'aud oi. ei'i-ot.. In pi'eparing Il)e financial st21einenls, tlie Iriislees are i'esponsible for assessiiig the cliai'ity's ability lo continue as a goiiig coiicem, disclosiiig, as applicable, ii)altei's related to goiiig conceim and using Ilie going concern basis of accoiinting unless the ti'iistees eitlier intend to liquidate tlie cliai'ity or to cease opei'ations, oi. have no realistic altei'native but to do so. Auditoi. i'espoilsibilities foi. the audit of tlie fiiiancial statements Oui- objectives are lo obtain reasonable assurance about wlieihei. the financial statenients as a wliole are fl'ee fi'oiii malei'ial iiiisstatenient, wlletlier due to fi'aud or errol., aiid lo issue ali auditoi s i'eporl Ilial incliides our opiiiioii. Reasonable assui'