2025-08-31-accounts

COMPANY NUMBER: 03401010 CHARITY NUMBER: 1063732

THE PORTSMOUTH GRAMMAR SCHOOL

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

THE PORTSMOUTH GRAMMAR SCHOOL CONTENTS OF THE FINANCIAL STATEMENTS

	Page
Governors, Officers and Advisers	1 - 2
Directors Report & Trustees Strategic Report	3 – 12
Streamlined Energy and Carbon Reporting Statement	13
Section 172(1) Statement	14
Statement of Directors’ Responsibilities	15
Report of the Auditors	16 – 18
Consolidated Statement of Financial Activities	19
Consolidated Balance Sheet	20
Company Balance Sheet	21
Consolidated Cash Flow Statement	22
Notes to the Financial Statements	23 - 42

THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025

COMPANY REGISTRATION NUMBER:

3401010

CHARITY REGISTRATION NUMBER:

1063732

REGISTERED OFFICE:

The Portsmouth Grammar School High Street Portsmouth Hampshire PO1 2LN

GOVERNORS

The Trustees of the charity are also the school Governors and Directors of the Company. The Governors who served during the year ended 31 August 2025 were as follows:

EX-OFFICIO GOVERNOR

The Dean of Portsmouth:

The Very Rev’d Dr A Cane, BA, MPhil PhD

CO-OPTATIVE GOVERNORS

Mrs K Bishop BA ACA (Vice Chair) (2)(3)(4)(5)(6) Mr T W Burden MA (Oxon) (1)(3)(6) Mr W J B Cha BA (Chair resigned 20.08.25) (1)(2)(3)(4)(6) Mr M R Coffin BA FCA (resigned 04.07.25) (2)(3)(5)(6) Mrs V M Chapman MA (Oxon) (Chair appointed 20.08.25) (1)(6) (3)(4) as from 13.03.25 Ms S Gingell MSc DIPSW (1)(6) Mrs C M J Harries BSc CA (2) (3) as from 05.12.24 Mr N D Latham CBE MSc CEng FIMarEST FIMechE (resigned 04.07.25) (2)(3) His Honour Judge P Lodder KC LLB Mr R D Moyler BSc (2) Mr P G Parkinson BA Dip Arch (resigned 04.07.25) (2)(4)(5) Mr J D Poulton BA (Cantab) (1) Dr S Ross MB ChB MRCGP (1)(5)(6) Mr J Millar BA FCA (2)(5) Mr J Pascoe BA ACA (2)(5) Mr P M Mazas PhD MA BA (appointed 07.02.25) (2) (6) as from 26.06.25 Mr J D D Murphie (appointed 20.06.2025) (2) Mrs P A Hardwick BA (Oxon) GDL (appointed 14.10.25) (1) Mrs R J Drever Chartered MCIPD (appointed 09.10.25) (6) Mrs A L Aves BA, PGCert, Mini MBA (appointed 09.10.25) (1) Mr N J Weaver BA (Cantab), MA, PGCE (appointed 09.10.25) (1)(3)(6)

(1) = Member of the Education Committee

• (2) = Member of the Finance and General Purposes Committee

• (3) = Member of the Nominations Committee

• (4) = Member of the Remuneration Sub Committee

• (5) = Member of the Audit and Risk Committee

• (6) = Member of the Safeguarding Committee

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025

OFFICERS

The key management personnel within the school, known as the Senior Leadership Team (SLT), consists of the following:

Head D J Wickes MA Head of Junior School A Wilson-Smith BA Secretary, Bursar and Clerk to the Governing Body R J Read BA MA Senior Deputy Head R J Bristow MA Deputy Head (Academic & Staff Welfare) S L Haslam BA MA Deputy Head (Teaching and Education Development) J M G Andrews BA MSc Deputy Head (Pastoral) L J Ryan BA MA Head of Finance R S Bryant BEng MSc (Eng) FCCA Director of Information Services S Morgan BSc

ADVISERS

BANKERS:

Lloyds Bank plc 113 Commercial Road Portsmouth Hampshire PO1 1BY

SOLICITORS:

AUDITORS:

INVESTMENT ADVISERS:

INSURANCE BROKERS:

Blake Morgan New Kings Court Tollgate Chandler’s Ford Eastleigh Hampshire SO53 3LG Crowe U.K. LLP 4[th] Floor St James House St James Square Cheltenham Gloucestershire GL50 3PR Investec Wealth and Investment Ltd 30 Gresham Street London EC2V 7QN Assured Partners Eleven Brindley Place 2 Brunswick Square Birmingham B1 2LP

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

DIRECTORS REPORT & TRUSTEES STRATEGIC REPORT

The Directors, who are also Governors of the school and charity trustees for the purposes of the Charities Act 2011, present their Annual Report in compliance with both that Act and the Companies Act 2006, thus including the Directors’ Report and Strategic Report under the 2006 Act, together with the audited financial statements for the year ending 31 August 2025.

The Director’s Report and Trustee’s Strategic Report is made up of the following elements:

1. Constitution and Objects

2. Structure, Governance and Management

3. Aims and Charitable Objective

4. Vision, Strategy and Public Benefit

5. Academic Performance

6. Co-Curricular Activities

7. Financial Performance

CONSTITUTION AND OBJECTS

The Portsmouth Grammar School is a company limited by guarantee without share capital, governed by its Articles of Association and is a registered charity, with number 1063732. In the event of the company being wound up and unable to meet its liabilities, each member undertakes to contribute a maximum of £1. If, on winding up, there remain after satisfaction of all debts and liabilities any assets, they cannot be paid to or distributed among the members but will be given to some other charitable institution having similar objects.

On incorporation of the school in September 1997, permanently endowed assets remained the property of The Portsmouth Grammar School Endowment Trust, charity number 307355, of which the school is sole trustee. The Endowment Trust is a subsidiary charity of the school and its investment income is passed directly to the school.

On 20 May 2004, The Charity Commission directed that “The Arthur Darby Nock Trust shall be treated as forming part of the charity called The Portsmouth Grammar School”. This Trust is held as an expendable endowment to provide scholarships at The Portsmouth Grammar School.

The school also has one wholly owned subsidiary company, PGS Promotions Limited, company number 02937047.

The key charitable object of the School is the advancement of education as a day school for boys and girls.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Body

The charity is governed by its Trust Deed, last amended in 1997 and its Memorandum and Articles. The Governing Body should consist of not more than eighteen men or women. One of the Governors is Ex- Officio, the Dean of the Portsmouth Cathedral.

Recruitment and Training of Governors

The Governors are also Directors of the Company. Those who served during the year are listed on page 1. Co-optative and nominative governors are appointed for a term of three years. They may be re-elected by resolution of the Governing Body at an Annual General Meeting. Co-optative Governors are elected by the Governing Body. They are volunteers who are able and willing to devote time and energy to the strategic development of the school, and they provide support to and oversight of the leadership of the Head, the Bursar, and the remainder of the School’s Senior Leadership Team. Co-optative Governors are likely to have significant professional, educational or business experience at a senior level. All Governors are elected at a meeting of the Governing Body and receive a suitable programme of induction from the Clerk (Bursar), the Head, and the Chair of Governors. Additionally, Governors are invited to attend relevant staff professional development days and seminars provided by the Association of Governing Bodies in Independent Schools (AGBIS) and other providers of specialist advice.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

The school’s 2016 ISI Inspection Report commented favourably on the quality of the school’s governance and management awarding an Excellent grading. A compliance inspection was conducted by ISI in February 2019, and the school was confirmed to be compliant with the required standards. In September 2022, a Focussed Compliance and Educational Quality Inspection was conducted, and the school was awarded an Excellent grading, and in September 2025 a further inspection was conducted, where the school met all standards under the new ISI inspection regime which simply qualifies standards as either having been met or not met.

Organisational Management

The Governing Body meets at least four times a year. The work of implementing their policies is carried out by members of the Finance and General Purposes Committee (FGPC), chaired by Mrs Harries, and Education Committee (EdCom), chaired by Mr Burden, both of which meet termly prior to the full Governing Body meeting.

In addition, an Audit and Risk Committee (ARC), chaired by Mr Coffin, meets at least three times per year with the specific remit of continuous improvement to the governance and management of the school.

A Remuneration Sub Committee (RemCo), chaired by Mrs Bishop, meets twice a year to review the school’s policy on pay for teaching and support staff and to make recommendations, and to provide oversight for Senior Management Team remuneration.

The Remuneration Committee’s Terms of Reference are reviewed annually. The committee considers published benchmarking data on salaries and makes comparisons with other independent schools to ensure that it remains sensitive to the broader issues of pay and employment conditions elsewhere. Its policy provides for appropriate incentives to encourage enhanced performance and the rewarding fairly and responsibly for individual contributions to the school’s success.

The school also has a Nominations Committee (NomCo), chaired by the Chair of Governors or the Vice-Chair if appropriate, which normally meets twice a year, or more frequently if required, to make recommendations on Governor appointments and to consider succession planning.

The school also has a Safeguarding Committee (SafeCom), chaired by the Chair of Governors or the ViceChair if appropriate, which meets three times a year alongside the Education Committee.

Working Groups of Governors with members of the School’s Senior Leadership Team may be established from time to time by one of the Committees to address specific issues.

The day to day running of the school is delegated to the Head supported by the Bursar and the remainder of the Senior Leadership Team, previously listed. All Governors’ meetings are attended by the Head, the Bursar, and the Senior Deputy Head. Other members of the Senior Leadership Team also attend as and when necessary, when their areas of responsibility are discussed.

Delivery of the school’s charitable vision and purpose is primarily dependent on our key management personnel, and staff costs are the largest single element of our charitable expenditure.

Group Structure and Relationships

The Charity has one wholly owned non-charitable subsidiary, PGS Promotions Limited.

The school actively supports the promotion of the highest standards in the Independent School sector through networking with other similar schools. In particular through the Headmasters’ and Headmistresses’ Conference (HMC) schools within the South Central region and the Trinity Group schools, located in London and on the South Coast. The school is a keen participant in the activities of these highly regarded educational organisations. As well as HMC the school has membership of the IAPS, AGBIS and the ISBA.

The school works closely with the universities of Portsmouth, Chichester and Southampton in the provision of Initial Teacher Training, and our close links with schools in the maintained sector are referred to in the Public Benefit section of this report. The school also has a close working relationship with the Portsmouth Cathedral and is a full member of the Choir Schools Association (CSA). The Head is a Trustee of the Portsmouth Festivities charity, and the school is also a patron of the Shaping Portsmouth charity.

Employee Engagement

In line with the requirements of the Companies (Miscellaneous Reporting) Regulations 2018, the Board of Governors are pleased to report that they continue to engage with employees throughout the year. Examples of direct engagement include informal meeting time for Governors with staff in the Common room and lesson

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

observations by Governors, prior to Governor Committee or full Board meetings, and presentations to, and discussion with Governors at meetings on the subject or area of responsibility of the staff member. There is also engagement between Governors who are parents of pupils within the school with staff from across the school.

On behalf of the Board, the Head and the Senior Leadership Team have a strong culture of consultation with staff before introducing significant change and these issues are reported back to the Board at Board and committee meetings. The Head and Bursar also brief staff on the overall performance of the school. This is not only financial reporting but also how the school has performed in public examinations and university offers. It is believed that this culture of openness helps develop a positive culture of mutual trust and commitment amongst staff contributing to the long term success of the school as a charitable institution.

Communication and consultation with employees is a priority at the school. At intervals through the year, usually immediately prior to the start of a term or half-term, Professional Development Days are held during which briefings and staff training takes place. Elements of these days will apply to the whole school staff, both academic and support staff, with other periods being applicable to specific roles, functions or training requirements. Training on these will often include training on safeguarding, data protection, cyber security and health and safety, as well as briefings on the school’s development and strategy.

Employment policy

The school is an equal opportunities employer and this is articulated in The PGS Whole School Recruitment Policy and The PGS Equal Opportunities and Dignity at Work Policy for Staff. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs.

Business Relationships

The school continues to engage with a large number of stakeholders (as set out in the Section 172(1) Statement), the most important of which are the pupils and their parents. The work of our teaching and support staff, as directed by the Board of Governors, the Head and the Senior Leadership Team, focuses on providing the pupils and parents with a high quality academic education underpinned by excellent pastoral care with an outstanding range of co-curricular opportunities, as outlined in this report.

The Governors continue to place a significant emphasis on the need for strong and positive relationships with self-employed staff such as peripatetic music teachers and sports coaches. Although the relationship with self-employed staff is necessarily different to that of employed staff (due to the requirements of HMRC and Employment Law), the school is proud that many of these individuals have remained loyal to the school for so many years reflecting the strong and harmonious relationship that the school fosters.

The Governors also value positive relationships with suppliers whose work in support of the school is invaluable. Governors require the Bursar to seek value for money when engaging any supplier and this is tempered with forging strong relationships that are ultimately beneficial to both parties. The Bursar also takes into account environmental credentials, when appropriate, when choosing a new supplier. The school is also keen to place a priority on local businesses where it can, and a Sustainability Forum involving staff and pupils helps seek more ways of improving the school’s performance in this important area.

Fundraising practice

The Portsmouth Grammar School is registered with the Fundraising Regulator and has adopted the Code of Fundraising Practice. Neither the school nor the Fundraising Regulator has received any complaints about PGS’s fundraising activity in the period covered by this report.

Fundraising is undertaken by the Development Director, a full-time employee, with support from two members of Development Office staff (Alumni Relations & Events, and a Development Manager).

The Development Director reports to Governors through the Finance and General Purposes Committee, providing written and verbal reports as required. The Development Director has fortnightly meetings with the Head, and separately the Bursar, during term time, and is line-managed by the Head.

PGS takes very seriously its relationship with its alumni, parents, staff, Governors, and other supporters. It has an ethical fundraising and gift acceptance policy which is reviewed at least every three years. None of the school’s fundraising activity should compromise donors’ privacy, put anyone under undue pressure or be unreasonably persistent.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

AIMS AND OBJECTIVE

The Portsmouth Grammar School has a rich history, stretching back nearly 300 years, but we are very much a school that looks to the future, both as an Institution and, more importantly, for our pupils. We seek to draw out of them skills, qualities and, above all, our core values: curiosity, creativity, commitment, courage, compassion and collaboration. This enables them not just to take their place in society, but to be people who seek to play an active role in shaping the World around them, making it a better place for others.

We do this in many ways throughout the school, but all that we do is underpinned by an inclusive community where people care for each other. As a through school educating pupils from 2 to 18 years on a single site, we have an unparalleled ability to offer continuity of educational excellence.

We wish the members of our community to:

• Be happy and to thrive

• Be curious and pursue success to the best of their ability

• Be courageous, prepared for the changing world beyond school

• Be committed to making an active contribution and live purposeful lives

• Develop a sense of identity and to be their own person

In 2032 we will celebrate the 300th anniversary of the founding of the school. Mindful of the evolving global landscape, we want our pupils to have the best possible preparation for their futures. We are determined to strengthen the school even further, and to preserve its character and diversity, while we respond to the world around us. In partnership with parents, we are committed to providing pupils with the care and the support, the environment and the context, to grow and thrive as the best version of themselves.

VISION AND STRATEGY

Vision

The Portsmouth Grammar School will be recognised nationally for a curriculum design that is the envy of the sector and as a thriving, diverse community centred around core values and educational excellence.

It will be a School that continues to consistently prepare young people for a global world: a welcoming, forward-looking, ambitious, dynamic, and sustainable School built on firm and historic foundations.

Values

At the heart of everything we do is the PGS Core. By being part of this community, each one of us aspires to the attributes of curiosity and creativity, courage and commitment, compassion and collaboration.

Strategy

Our education strategy is to offer an ambitious and holistic curriculum that provides all students the opportunity to find and fulfil their potential, with a focus on academic excellence and our core values of curiosity, creativity, courage, commitment, collaboration and compassion, developing the whole child for success through to the age of 25. Building on the previous excellent work in our KS5 curriculum (Sixth Form/ A Levels), we have implemented curriculums in the Junior School and at KS3 that provide a modern, relevant and innovative education experience for all our students, and one which will equip them for success.

Our finance strategy is to increase the school’s non-fee revenue streams and reform the School’s cost base (with a focus on reducing energy consumption and modernising internal ways of working, systems and processes), in order to minimise future school fee inflation (recognising the challenge of fee affordability for parents), and to maximise the opportunity for development and de-carbonisation of the School’s estate. As part of our finance strategy all bursaries will continue to be means tested, and they will be funded entirely from non-fee revenue such as donations and lettings.

Our estates and supplier operations strategy is to leverage local supplier relationships wherever possible to benefit the local economy and achieve maximum value for the School across our business relationships. In the short term we are prioritising energy efficiency in all our maintenance, and we are planning for a number of de-carbonisation projects across the estate.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

ACHIEVEMENTS AND PERFORMANCE

ACADEMIC PERFORMANCE

As a school we are in the business of helping young people develop and thrive. Each member of staff, through their own specific role, contributes to this goal and therefore all staff are interested in days when students receive their grades in the public examinations. As a school with a proud academic background and one which has set out its stall to be academic, days such as these are important for us; they matter.

For A-levels we set ourselves a target of achieving 20% at A, 60% A-A and 80% A-B. This year we achieved 24.8% at A, 60.5% at A-A, and 85.9% at A-B – thus hitting all of our 3 targets.

To put this into context, outside of COVID, for A Level this year group have achieved the best A percentage ever, the best A-A since 2012 (only beaten twice since 1997) and the best A*-B since 2009 (only beaten twice since 1997). This is a tremendous achievement and something of which the students should rightly be proud.

We were also delighted that six of our students (2024: 6) were offered places at Oxbridge maintaining our strong record.

When we look at some of the students, we are particularly thrilled for them because we know their individual journeys and what they have overcome to achieve what they have. For others, we will be filled with disappointment as they may have fallen just short of what we know they could have achieved. We will continue to use that to motivate us to help our students achieve even more in the future, but this year we will celebrate with many, and support those that need it.

	% A*	% A*-A	% A*-B	% A*-C	% A*-D	% A*-E	% A*-U
2019	12.9	45.4	73.2	93.9	97	100	100
2023	19.0	54.4	79.4	94.7	99.3	99.8	100
2024	20.3	51.3	77.8	93.0	98.1	99.6	100
2025	24.8	60.5	85.9	97.2	99.4	99.8	100

In terms of GCSE results, while they are not at the record-breaking level of our A Level results this year, there is still much to be pleased with. Results at the top end were very similar in terms of number of absolute grades to last year with, with an increase from 9-7, and once again Grade 9 being the most common grade to be awarded, followed by Grade 8. It was also pleasing to see the significant improvements that many candidates have made from their mock examinations in January to the summer - analysis suggests that 30 candidates improved by one whole grade on average in each of their subjects, while over half the year improved by at least half a grade on average in each subject. This is strong going and something that we should rightly acknowledge as a success.

BROADER CO-CURRICULAR PERFORMANCE

The Portsmouth Grammar School provides pupils with experiences and opportunities beyond the classroom. This may involve canoeing on the river Wye as part of Gold Duke of Edinburgh, representing PGS on the school hockey pitches, or playing cornet with the Black Dyke band in a professional performance.

Whether it is having a go on the climbing wall, conducting environmental investigations, learning outdoor survival skills, taking part in musical theatre, classical singing, chess, wildlife, photography or sport there are a huge range of opportunities for pupils from Pre-School to Year 13 to engage with and to grow with.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

In addition to our hugely busy music and sports programmes, PGS encourages students to participate across our Community Action Working scheme, incorporating workplace experience, our Combined Cadet Force and the Duke of Edinburgh Bronze, Silver and Gold Awards.

PGS has 218 sports teams and 235 clubs, including 39 music ensembles, that attract broad participation from across the student body throughout the year, with in excess of 267 students taking individual weekly music lessons. All pupils also engage in the co-curriculum via the House system.

In 2024-2025, notable co-curricular achievements include introducing a programme of in-person Head Injury clinics to diagnose, manage and monitor concussions, the merger of Junior and Senior School Sports Departments, and the establishment of a senior debating club which progressed to the Regional Final of the English Speaking Union Schools’ Mace debating competition.

The Drama department continues to put on many dramatic productions throughout the year, and we look forward to their production of Grease, to be performed between the 27[th] and 29[th] November.

PUBLIC BENEFIT

Means-Tested Fee Remission (Bursaries)

PGS is a leading provider of means tested bursaries nationally, regionally and locally, as demonstrated by Independent School Sector benchmarking, and the School continues to honour its founding member William Smith’s commitment and ethos in this regard to provide talented pupils the opportunity to attend the school who would not otherwise have been able to do so. PGS is extremely grateful to our alumni, friends and the school community, whose generosity to The William Smith Fund makes it possible for a large number of just such pupils to join PGS each year regardless of their financial situation. In 24/25 the financial volume of means-tested bursary fee remission was equivalent to £ 2.22 m (2024: £2.64m) of PGS school fees (note 4 of the accounts refers).

Community Action Workplace

The Community, Action, Workplace (CAW) programme is the backbone of the personal enrichment curriculum for Sixth Form pupils. It is focused on personal development through exciting, rewarding and enjoyable opportunities aimed at providing an inspiring platform for the future. In the last year pupils have worked in five local schools, including the nearby secondary school, Charter Academy, where Sixth Form pupils worked with Year 8 pupils as reading mentors - supporting pupils in Year 8 with a reading age of about 5 years-old - and with Year 11 pupils as academic mentor. At local primary schools they have helped in P.E., English and Mathematics classes. A group of pupils volunteered at the Mary Rose Academy - a school that provides a highly specialist, personalised curriculum for young people with the most profound, severe and complex learning difficulties. They were so pleased with the support our pupils offered that they asked them to return later in the summer term to help out at their sports day. One of the pupils in this group accepted the invitation and returned to undertake further volunteering there later in the term.

The community work extends beyond the educational sector with pupils also volunteering at a local care home, spending time with residents who are unable to make it to the main social areas as well as helping with organised activities. They have worked in the local food bank, helping to arrange donations and packages ready to be distributed to those that need them, and volunteered at the Tall Ships Trust, fixing and painting the boats as well as learning about other aspects of the work undertaken by the charity. A group of students raised money for Pompey in the Community. The money raised was split equally between Life and Chimes - a group supporting those with early onset dementia - and Pompey Pedals - an inclusive cycling group aimed at engaging those with disabilities and differing needs in quality cycling activities.

Education Partnerships

The School works with Universities in the region, supporting the training of student teachers. In the last academic year, we had three student teachers and three ECTs being supported at the school. Having continued to support ISTIP as a Regional Centre for ECT induction, we again held three very successful ISTIP regional conferences for Year 1 and Year 2 ECTs over the course of last year. Year 1 ECTs attend two regional conferences in the Autumn and Summer terms and Year 2 ECTs attend one conference in the Spring term. The ECTs come from a mixture of phases from Prep to Senior Schools from all over Hampshire.

Staff in the English department have also co-ordinated what is now an annual event with Portsmouth Youth News, where Year 7 pupils from across the city attend a workshop day at PGS with the Editor in Chief at The News (Portsmouth's local newspaper), learning about journalism in the modern day. The outcome from this

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

day is pupils writing their own community-based articles which are published on the online platform of The News .

Outside of these organisations we also strive to work with local state schools to enhance the cultural and academic education of their children. This includes drama and music events as well as STEM events (Science, Technology, Engineering and Mathematics) which over 500 children have attended during the last academic year. Every summer we hold a Summer School for more able children in Year 5 across eight state primary schools to provide stretch and challenge.

The School also has a range of active partnerships with schools overseas, including the United World School in Chai Thom, Cambodia, which it helped to build; and Kikaaya College School in Uganda, which receives significant financial support from PGS to support its internet and Wi-Fi provision. This funding is mainly raised by PGS pupils who also participate in a range of collaborative activities with the Ugandan pupils. PGS also continues a growing partnership with two schools in Suzhou, China.

Being aware of the importance of living in a global community and the many benefits and challenges that this brings and the commitment to such partnerships is an excellent way of ensuring that pupils are offered a tangible insight to the cultural differences of other international communities.

A number of PGS staff also fulfil voluntary roles as governors and trustees of local state schools and other educational, cultural and charitable organisations in the local area and wider region. We have given some staff approved absence for them, in their role as governors, to work on projects within these organisations.

Economic Contribution

The Oxford Economics economic impact tool for schools in Great Britain demonstrates that PGS is a key contributor to both the local and National economy. PGS employs more than 300 people (teaching and support staff) and educates more than 1,100 children. According to this Oxford Economics model, the total National impact on GDP of this activity is in the region of £33 m and total local impact on GDP is in the region of £16m. PGS education delivery supports more than 675 jobs nationally and almost 400 jobs locally.

Charitable Fundraising

The most significant charitable fundraising was for the William Smith Fund. For which £956,018 was raised in 24/25. The William Smith Fund supports life-changing bursaries to enable local determined young people to come to PGS who would otherwise not be able to afford the fees. It also funds vital co-curricular and academic projects that benefit the whole school community.

Pupils are encouraged to get involved with William Smith Fund fundraising activities; hundreds of PGS pupils got involved in Giving Day 2025 over 36 hours and raised £1,559 through activities such as “Sponge” The Teacher, bake sales, penalty shootouts and VR and online games.

Read for Good is a charity that aims to provide access to a wide and vibrant selection of books for all children; for example, they fund books and storytellers for children in hospital. To raise money for this charity, pupils from Key Stage 3 and the Junior School took part in a sponsored Readathon. For this, pupils were awarded with certificates and gift vouchers. A total of £798.82 was raised through sponsorship.

For local charity, Pompey in the Community, a Sixth Form pupil organised a charity raffle, which raised £369. Pupils approached local business for prizes (e.g. vouchers for Bread Addiction, Vue Cinema, Nando’s) and obtained a couple of prizes from Portsmouth FC (a football shirt and a pair of match day tickets). They then carried out the prize draw in Senior School Assembly.

Whitcombe House raised £72.12 through the House Bake Off. This was donated to Rowan’s Hospice who care for terminally ill people. Several families from the school have been supported by this charity.

Pupils in the Junior school raised £185.12 for St John’s ambulance as part of Soap Making club. In the Year One and Two Soap Making Club, the children made over 100 soaps, designed and made the packaging. Pupils also planned a sale and were involved in creating social media advertising. They sold all the soaps themselves, taking the money and encouraging parents and staff to buy more and to make donations.

The school organised the donation of 200 Maths and Biology Textbooks to Books Abroad, a charity dedicated to supporting education in developing countries. It also organised a 2-hour beach clean with 13 pupils from Years 2-6.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

PUG, the Pupil Uganda Group, involved 10 pupils raising money for the Kikaaya school in Uganda. This year, PUG managed to raise £1,414 for the school. To raise this money, pupils make, source and sell gifts to fundraise and work on environmental projects, for example, making a Green Wall using recycled materials.

On Wednesday 2[nd] July, Sixth Form pupils spent the day volunteering for Second Chance Children’s Charity in Titchfield. This charity takes children and teenagers from challenging circumstances and gives them time to spend outdoors. PGS pupils spent the day improving the site, doing work such as tidying, gardening and painting.

FINANCIAL REVIEW

Strategic Overview

This year has benefited from significant donations across the year and our overall cash position continues to benefit from the increase in fees in advance payments that occurred towards the end of the prior year. However, where these unique movements are removed, the underlying cashflow trend is negative, and the Governors have taken, and continue to take, decisions that will address this. The school is fortunate to be financially resilient with financial levers that will return cashflow to a positive trend, and these levers will be applied across the next two years in response to the challenging set of circumstances faced by the whole independent schools sector; the result of VAT being introduced on fees from January 2025, and the loss of Business Rates Relief and increases to employers National Insurance from April 2025.

Overall, there was a net operating loss for the year of £(861,083) compared with an operating profit of £1,079,231 in the previous year. The current year includes a gain on investments of £236,697 reflecting external market conditions.

Overall interest rate costs increased to £251,589 reflecting underlying market rates. Interest rate exposure is managed by fixing interest rates on a proportion of the loan portfolio within parameters that are agreed and regularly reviewed by the Finance and General Purposes Committee. Further details of the loans and current interest rates are included in note 18.

Net debt has increased by £241,837 during the year Cash balances remain healthy at £4,482,523 reflecting prudent management of cash reserves and an increase in fees in advance in prior periods. The School achieves its liquidity objectives by the careful management of working capital and regular forecasting of short and long term cash requirements.

The School’s exposure to credit risk is mitigated to a large extent by fees being due and collected at the beginning of each term.

Significant Events

The Independent School sector has faced, and continues to face, considerable financial pressure as the result of; decreasing affordability for parents, compounded last year by the introduction of VAT on school fees, previously increased school expenditure across energy and increases in Teacher Pension Scheme (TPS) employer contributions. From 1[st] April 2025 the loss of Business Rates Relief and increases to National Insurance Contributions compounded these cost pressures. The school continues to review its strategy to mitigate to the extent possible the impact of these financial pressures to provide the best possible outcome for its pupils, its staff, and its broader stakeholders.

Significant events in 24/25 are a significant uplift in cash donations by 70% over the previous year, generating income of £957,943, and the doubling of revenue from facilities lettings to £121,458. Further, the school has continued to draw down the William Smith Fund, into which donations are made, in order to fund bursary places.

The impact of recent significant events has eroded per pupil margins across the last four years, requiring a drawdown of reserves. An efficiency delivery programme across the last two years has successfully reduced non-payroll expenditure, and the recent decision to dispose of the Upper Junior School site, amongst other strategic decisions that balance investments with expenditure reductions, will enable a further and significant reduction costs. These actions, combined with the depth of free reserves and relatively strong cash position, indicate that financial risks facing the sector can be managed by the school.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

Post Balance Sheet Event

On 10[th] November 2025 the school exchanged contracts for the sale of the Upper Junior School site that was held as a fixed asset at the reporting date. The property was sold for £2.005m with completion due in the summer of 2026.

Reserves Policy

The Group’s consolidated unrestricted funds stood at £13,453,411 at the year-end (23/24: £15,063,840) .

After adjusting for designated funds, functional fixed assets for the charity’s own use and borrowings against those assets, the school has free reserves of £303,599 (23/24: £2,060,073) (as defined by the Charity Commission). This has dropped beneath the planned level for three months operating costs which for 24/25 was £5,325,374 and this is being addressed as part of Governors risk management approach (risk section below refers).

The Governors regularly review the reserves policy in the light of the future plans for the school, the projected budgets and cash flow forecasts. This policy reflects the risks and uncertainties of operating as an independent educational establishment and the significant on-going demands of the school to maintain up to date facilities and invest for both the present and the future. In addition, the policy also recognises the specific financing structure of the school where future external debt repayments are required to be funded from operational cash flows and the school is required to operate within its banking covenants on existing debt.

Investment Policy, Objectives and Performance

Investec Wealth and Investment Ltd, now operating as part of Rathbones, continues to be the school’s investment advisers and the delegated authority given to them to act within a framework set by the Governing Body has been reviewed during the year and remains appropriate in the current economic climate. This consolidated fund with a market value of £2.626 million represents in the order of 12% of the Group’s net assets and is operated within the framework detailed as follows:

1. The overall objectives are to create sufficient income and capital growth to enable the school to carry out its purposes consistently year by year with due and proper consideration for future needs, and the maintenance or enhancement of the value of the invested funds. These objectives are to be achieved by investing prudently in a broad range of quoted fixed interest securities, equities and collective vehicles which are appropriately authorised and compliant with current legislation.

2. The investment portfolio is allocated between various asset classes and performance is benchmarked against comparative indices appropriate to the different asset classes.

3. There will be no investment in unquoted securities or in direct derivatives, and the maximum equity exposure is 75% of the value of the portfolio.

The Governors reserve the right to exclude companies that carry out activities contrary to their aims or from holding particular investments which could damage the school’s reputation.

The investment managers may exercise voting rights on behalf of the trustees taking into account the general nature of the investment portfolio of the school. Investment decisions should be based upon long-term considerations and the Governors will assess the performance of the investment advisors on the basis of the total return including both capital growth and income.

The investment managers are expected to take into account the general nature of the school and not knowingly make investments that may compromise the position of the school, its reputation or charitable objectives.

Investment Performance has been satisfactory in comparison to benchmarks. The investment fund achieved an increase of 2.9% over the year.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

Risk Management

Day to day management of risk is undertaken by the school’s Senior Leadership Team (SLT), Senior Management Team (SMT), and School Business Meeting (SBM), each of which meets formally once a week. The Governing Body undertakes a formal review of the school’s Risk Management arrangements at least once every year, and the Audit and Risk Committee provides focus to this important area.

During the year risks and their constituent elements have been considered and discussed in detail at relevant Governing Body sub-committees as follows:

Education Committee

• The risk that high quality staff cannot be retained or recruited

• The risk for receipt of an unfavourable ISI report leading to School brand and reputational damage

• • The risk that increasing neurodiversity amongst student populations leads to legal action against the School where reasonable adjustments are insufficient to protect the collective student body, leading to claims against the School from both those with protected characteristics and those without

Finance and General Purposes Committee

• The risk that inflation (incl VAT) causes the cost of a PGS School place to increase at a faster rate than local household disposable income, leading to reduced affordability and unsustainable market shrinkage

• The risk that declining student numbers and associated fee revenue results in an unsustainable outflow of cash at a pace that impacts the School’s going concern status

• The risk that ‘right-sizing’, recovering, modernising and de-carbonising the PGS historic site is not achieved at a speed of relevance

• The risk that hostile alumni activity leads to severe School brand and reputational damage

• The risk that weakened transport links reduce School attractiveness in the broader catchment

• • The risk that data and information systems compliance (GDPR), resilience and security leads to cyber-attack, fraud or personal data breaches, leading to a business continuity failure and/or reputational damage

• The risk that a major crisis disrupts education outputs and damages the school’s brand and reputation

Safeguarding Committee

• The risk that a serious safeguarding incident occurs, leading to harmful student and staff outcomes, and reputational damage to the school

Risk Summary

The financial risks have become more pressing as a result of the significant events noted, but with active cost management and close monitoring by the Governors, these, along with the other key risks faced, can be managed

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STREAMLINED ENERGY AND CARBON REPORTING (SECR) STATEMENT

This statement and data have been provided by an independent energy consultant, EIC.

SECR Summary

This report covers the period September 2024 to August 2025. Portsmouth Grammar School's total emissions were 1% lower than the previous year. This is attributed to the Scope 1 (combustion of fuel, fugitive and process emissions – direct) and Scope 2 (electricity – indirect) emissions performance. Despite a 15% increase in gas emissions, the reduction in total emissions is attributed to a 4% decrease in electricity consumption and a 20% reduction in the transport emissions.

The Portsmouth Grammar School's intensity ratio was 0.38 which is 9% increase in energy efficiency compared with the previous year. This was calculated by dividing the total emissions by the total number of pupils.

The Portsmouth Grammar School’s second intensity ratio was 0.02, which shows a 1% increase in energy efficiency, compared to the previous year. The second intensity ratio was total emissions by the square meterage.

The Portsmouth Grammar School’s total UK energy use in 24/25 was 2,235,974 KWh (23/24: 2,242,833 KWh).

Annual Energy Efficiency Statement

During 2024/25 The Portsmouth Grammar School has continued to work towards further reductions in energy, including;

• Continuing a lighting replacement programme where 80% of the school lights are now LEDs

• Progressing towards the installation of a large-scale solar PV system, with a planned implementation date of summer 2026. A provider is currently being selected under a Power Purchase Agreement (PPA) model.

• All electricity and gas meters now feed into the STARK portal, so the School can track consumption across the site. Comparison between different areas will encourage improved behaviours

• The School has started offsetting carbon emissions associated with trips abroad

• The School has implemented an Energy Policy and focused on collective behaviours to drive down consumption, raising awareness of collective responsibilities to reduce carbon footprint though:

• Power Down reminders at the end of term – a reminder to staff to turn off appliances in areas of work

• Signage raising awareness of carbon footprint and how it can be reduced

• Assemblies and a podcast to communicate steps being taken to drive down consumption

Total Emissions Performance (tCO2e)

The carbon emission figures for September 2024 to August 2025 have been derived using the most recently published DEFRA GHG emission factors as specified by the Environment Agency. EIC have collated energy invoices from September 2024 to August 2025 and consumption data has been fed into the reporting tool. The total location-based emissions are expressed in tCO2e: tonnes of Carbon Dioxide equivalent, as this provides a common unit for reporting all types of energy and carbon use. From September 2024 to August 2025 the total emissions were 432 tCO2e (2024: 437 tCO2e) and it has been calculated that 2024-2025 emissions are 1% lower than those in the same period in 2023-2024.

Methodology

No mandatory emissions have been excluded from this statement. The statement is aligned with the GHG Protocol methodology. The GHG Protocol establishes comprehensive global standardised frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions. The framework has been in use since 2001, and forms a recognised structured format, to calculate a carbon footprint.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

SECTION 172(1) STATEMENT

Governor involvement

The Governors act in good faith to make decisions, the outcome of which they consider will be most likely to promote the success of the school for the benefit of its pupils and the wider school community as a whole. They regularly attend school events, affording them the opportunity to meet with parents, staff and other members of the community, and also have the regular opportunity to spend time in school attending lessons, speaking with staff and pupils, and observing the day-to-day activities of the school. In discharging their duties, the Governors carefully consider, amongst other matters, the impact on and interests of other stakeholders in the school and factor these into their decision-making process.

Staff members

Governors have regular opportunities to meet with staff and observe their day-to-day activities. They also receive information on various staff metrics. The Governors are committed to promoting a healthy and productive school environment and positive physical and mental wellbeing among the staff; the school counsellors are available for consultations with staff as well as pupils, and the school has an Employee Assistance Programme that offers free counselling to staff. The Governors keep staff informed of key issues through structured communication channels, promote diversity and inclusion in school life, and also provide training and development opportunities where they are considered of benefit to the school and staff. Using the School’s recruitment and development strategies, the Governors seek to attract and retain talented staff.

Pupils and their parents

The Governors commit considerable time, effort and resources into supporting staff in delivering the best educational provision the school can, whilst striving to achieve excellent individual care to enable each pupil to thrive and their parents to be well-informed on the progress of their child. In normal circumstances the Governors meet with groups of pupils on a regular basis to receive feedback and inform decision making to promote these objectives, with the aim of fostering long term mutually beneficial relationships both while the pupil attends the school and into the future. The school has a policy and procedure in place to deal with any complaints and acts to work quickly to resolve any isolated disagreements that may arise from time to time.

Suppliers

The Governors have established procedures to ensure that external suppliers are individually verified to ensure they meet with the health and safety, regulatory and financial security standards required by the school. The school seeks to pay all suppliers any undisputed amounts due and to conform with the billing requirements within agreed terms.

Community and the environment

The school takes its role within the community very seriously and promotes and encourages community and charitable contribution through the numerous activities set out elsewhere in this report. The school also recognises the importance of its environmental responsibilities and has measures in place to monitor and control its impact on the local environment and its compliance with any regulatory environmental standards. The school seeks to implement policies aimed at reducing any potential detrimental environmental impact of its activities.

Standards and conduct

The school has a significant portfolio of policies and codes of practice regarding ethical and professional standards expected of staff in undertaking their duties for the school. These are clearly communicated to every staff member and adherence to which is expected and enforced.

Pupils are also expected to adhere by the Pupil Code of Conduct.

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THE PORTSMOUTH GRAMMAR SCHOOL GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025

STATEMENT OF DIRECTORS’ RESPONSIBILTIES

The Governors (who are also directors of The Portsmouth Grammar School for the purposes of company law) are responsible for preparing the Report of the Directors, Strategic Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors 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 governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions, disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITORS

In accordance with Section 485 of the Companies Act 2006, a resolution proposing the reappointment of Crowe U.K. LLP as auditors of the company will be put to the Annual General Meeting.

Provision of Information to the Auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that, so far as that director is aware, there is no relevant audit information of which the Company's auditors are unaware, and that director has taken all the steps that ought to have been taken as a director in order to be aware of any information needed by the Company's auditors in connection with preparing their report and to establish that the Company's auditors are aware of that information.

This Report of the Directors, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governing Body on 5[th] December 2025 including in its capacity as Company directors approving the Strategic Report contained therein, and is signed as authorised on its behalf by:

Vivienne Chapman (Chair)

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE PORTSMOUTH GRAMMAR SCHOOL

Opinion

We have audited the financial statements of The Portsmouth Grammar School for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Summary Income and Expenditure Account, the Consolidated and Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group’s and the Charitable Company’s affairs as at 31 August 2025 and of the group’s incoming resources and application of resources for the year then ended;

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

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you were:

• The Governors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• The Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the Charitable Company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the Governors' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Governors’ Annual Report and Strategic Report have been prepared in accordance with applicable legal requirements.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE PORTSMOUTH GRAMMAR SCHOOL

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Governors’ Annual Report.

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

• adequate accounting records have not been kept; or

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

• certain disclosures of Governors' remuneration specified by law are not made; or

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

Responsibilities of the Governors

As explained more fully in the Governors’ Responsibilities Statement set out on page 15 , the Governors 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 Governors 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 Governors are responsible for assessing the Group’s or the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the charity were The Education (Independent Schools Standards) Regulation 2014, Health and Safety, Safeguarding, Food Standards, Charity Commission regulations and General Data Protection Regulation (GDPR). Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our

P a g e 17

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE PORTSMOUTH GRAMMAR SCHOOL

audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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

Use of our report

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

Signed:

Date: 19 December 2025

Guy Biggin Senior Statutory Auditor For and on behalf of Crowe U.K. LLP

Crowe U.K. LLP 4th Floor St James House St James Square Cheltenham Gloucestershire GL50 3PR

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THE PORTSMOUTH GRAMMAR SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2025

				Expendable	Permanent
		Unrestricted	Restricted	Endowment	Endowment	Total	Total
	Notes	Funds	Funds	Fund	Funds	2025	2024
INCOME AND ENDOWMENTS		£	£	£	£	£	£
Charitable activities
School fees receivable	4	17,270,354	-	-	-	17,270,354	18,718,658
Ancillary trading income	5	1,281,919	-	-	-	1,281,919	1,312,263
Other trading activities
Activities for generating funds:
Non-charitable trading	8	84,961	-	-	-	84,961	98,575
Other incoming resources		152,124	-	-	-	152,124	111,948
Investments
Investment Income	6	398,682	19,800	8,026	29,800	456,308	303,390
Voluntary sources
Donations – Investment Property			-	-	-	-	1,315,000
Donations - Other	7	510	957,433	-	-	957,943	562,101
Total income		19,188,550	977,233	8,026	29,800	20,203,609	22,421,935
EXPENDITURE ON:
Raising Funds
Non-charitable trading	8	133,647	-	-	-	133,647	154,741
Financing costs	11	325,930	-	2,394	8,890	337,214	476,510
Fund-raising costs		193,262	-	-	-	193,262	138,968
Charitable activities:
School operating costs and
grant making		20,327,481	301,273	8,512	-	20,637,266	20,877,942
Total expenditure	9	20,980,320	301,273	10,906	8,890	21,301,389	21,648,161
Net investment gains/(losses)		181,341	-	14,928	40,428	236,697	305,456
NET INCOME/(EXPENDITURE)		(1,613,661)	675,960	12,048	61,338	(861,083)	1,079,231
Transfer between funds		-	-	-	-	-	-
NET MOVEMENT IN FUNDS		(1,610,429)	675,960	12,048	61,338	(861,083)	1,079,231
Fund balances at 1 September 2024		15,063,840	2,106,465	233,942	5,525,362	22,929,609	21,850,378
Fund balances at 31 August 2025		13,453,411	2,782,425	245,990	5,586,700	22,068,526	22,929,609

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COMPANY NUMBER: 03401010 THE PORTSMOUTH GRAMMAR SCHOOL CONSOLIDATED BALANCE SHEET

31 AUGUST 2025

Notes FIXED ASSETS Tangible assets 12 Investments 13a Investment property 13b CURRENT ASSETS Stock Debtors 15 Cash at bank and in hand 14 CREDITORS:Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITES CREDITORS:Amounts falling due in more than one year 17 TOTAL NET ASSETS FUNDS Permanent Endowment funds 21 Expendable Endowment fund 21 Restricted funds 20 Unrestricted funds - General 21 TOTAL FUNDS 22	2025 £ £ 21,327,215 2,626,108 2,205,000 26,158,323 94,012 842,219 4,482,523 5,418,754 (3,610,411) 1,808,343 27,966,666 (5,898,140) 22,068,526 5,586,700 245,990 2,782,425 13,453,411 22,068,526	2024 £ 21,484,002 2,591,536 2,090,000
		26,165,538 94,067 1,251,437 7,683,329
	5,418,754 (3,610,411)	9,028,833 (4,553,201)
		4,475,632
		30,641,170 (7,711,561)
		22,929,609
		5,525,362 233,942 2,106,465 15,063,840
		22,929,609

The deficit for the year in relation to the School only was £(949,400) (2024: Surplus £936,026).

The financial statements were approved and authorised for issue by the Board on 5[th] December 2025.

Vivienne Chapman (Chair)

The notes on pages 23 to 42 form part of these financial statements

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COMPANY NUMBER: 03401010 THE PORTSMOUTH GRAMMAR SCHOOL COMPANY BALANCE SHEET

31 AUGUST 2025

Notes FIXED ASSETS Tangible assets 12 Investments 13a Investment property 13b CURRENT ASSETS Debtors 15 Cash at bank and in hand 14 CREDITORS:Amounts falling due within one year 16 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS:Amounts falling due in more than one year 17 TOTAL NET ASSETS FUNDS Permanent endowment fund 21 Restricted funds 20 Unrestricted funds - General 21 TOTAL FUNDS 22	2025 £ £ 17,702,330 2,626,110 2,205,000 22,533,440 986,345 4,410,613 5,396,958 (5,034,266) 362,692 22,896,132 (5,898,140) 16,997,992 760,000 2,782,425 13,455,567 16,997,992	2024 £ 17,859,119 2,591,538 2,090,000
		22,540,657 1,403,535 7,613,885
	5,396,958 (5,034,266)	9,017,420 (5,899,123)
		3,118,296
		25,658,953 (7,711,561)
		17,947,392
		775,000 2,106,465 15,065,927
		17,947,392

The financial statements were approved and authorised for issue by the Board on 5[th] December 2025.

Vivienne Chapman (Chair)

The notes on pages 23 to 42 form part of these financial statements

P a g e 21

THE PORTSMOUTH GRAMMAR SCHOOL CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025

Notes Cash flows from operating activities Net movement in funds per SOFA Depreciation 12 Loss on disposal of fixed assets 12 Investment income Interest paid 11 (Gain)/ Loss on investments 13a (Gain) on investment properties Donation of investment properties (Decrease)/ increase in stock (Increase)/ (decrease) in debtors 15 Increase/ (decrease) in creditors Cash provided by operating activities Cash flows from investing activities Payments to acquire tangible fixed assets 12 Payments to acquire fixed asset investments 13a Proceeds on disposal of fixed asset investments 13a Proceeds on disposal of fixed assets Interest paid 11 Investment income Cash used in investing activities Cash flows from financing activities Bank loans repaid 24 Cash used in financing activities Advance fees scheme Payments on account utilised 19 Receipts from new contracts 19 Cash provided/ (used) by advance fees Increase/ (decrease) in cash and cash equivalents in the year 24 Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year Analysis of cash and cash equivalents: Cash at bank and in hand 14 Cash held with investment manager 13a	2025 £ (861,083) 852,795 23,219 (456,308) 253,934 (121,697) (115,000) - 55 409,218 241,316 226,449 (732,613) (819,946) 868,513 13,386 (253,934) 456,308 (468,286) (190,782) (190,782) (2,940,487) 133,742 (2,806,745) (3,239,364) 7,727,653 4,488,289 4,482,523 5,766 4,488,289	2024 £ 1,079,231 826,282 69,406 (303,390) 290,277 (251,811) (25,000) (1,315,000) 13,709 (324,672) 124,750
		183,781 (974,446) (388,031) 485,524 267,358 (290,277) 303,390
		(596,482) (321,317)
		(321,317)
		(1,265,593) 5,415,857
		4,150,264
		3,416,246 4,311,407
		7,727,653
		7,683,329 44,324
		7,727,653

P a g e 22

THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. CHARITY INFORMATION

The school principally provides education in Portsmouth and the surrounding areas to boys and girls from 2 years to 18 years old. The incorporated charity (charity number 1063732, company number 3401010) is domiciled in the UK. The address of the registered office is The Portsmouth Grammar School, High Street, Portsmouth, Hampshire, PO1 2LN.

2. ACCOUNTING POLICIES

a) Basis of Preparation

The financial statements present the consolidated statement of financial activities (SOFA) and the charity and consolidated balance sheets comprising the consolidation of the School, its wholly owned subsidiary PGS Promotions Limited, the Endowment Trust and the Arthur Darby Nock Trust.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Portsmouth Grammar School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). No separate SOFA or Income and Expenditure Account have been presented for the School alone as permitted by section 408 of the Companies Act 2006.

b) Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

c) Income

Fees receivable and similar income

Fees receivable and other incoming resources are accounted for in the period in which the service is provided. Fee receivables are stated after deducting allowances, scholarships and other remissions granted by the school, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Ancillary trading income

Ancillary trading income is included in the statement of financial activities when the charitable company is legally entitled to the income, receipt is probable, and the amount can be quantified with reasonable accuracy.

Donations

Donations and legacies are credited to revenue on a receivable basis. No amounts are included in the financial statements for services donated by volunteers .

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

d) Resources expended

Resources expended are accounted for on an accruals basis. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to that activity in the year. The irrecoverable element of VAT is included as a separate cost within Support Costs. Governance costs comprise the cost of running the charity, including external audit, Governors’ legal advice and constitutional and statutory compliance costs.

Redundancy and termination payments are included within the accounts on an accruals basis, in line with expenditure and measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

e) Investments

Listed investments are valued at their market value at the balance sheet date from the appropriate Stock Exchange or from the relevant fund manager. Dividends, other investment income and interest are accounted for on a receivable basis. Investment gains and losses are recognised in the Statement of Financial Activities in the period in which they arise.

In order to optimise future investment performance, the Trustees have adopted a policy of investment pooling with affect from 26 April 2018. The investment pooling arrangement includes the School, together with The PGS Endowment Trust and Arthur Darby Nock Trust.

Unlisted investments are carried at historic cost less any provision for any diminution in value.

f) Investment Properties

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.

Where investment properties are held to be sold, the assets are reclassified as being current assets and included in the Balance Sheet at their open market values.

g) Tangible fixed assets

Expenditure on improvements and modernisation which enhances the long-term capability of the School is capitalised and depreciated in line with the policy for freehold buildings. Expenditure on repairs and general maintenance incurred on a regular basis is charged to the statement of financial activities on the accruals basis.

h) Depreciation

Depreciation is provided on all tangible fixed assets in use, other than freehold land and assets in the course of construction, at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected life. The school charges depreciation as follows: -

Freehold Buildings Over 50 years Furniture and Fittings Over 5 years Equipment Over 5 – 15 years Motor Vehicles Over 5 years Computer Equipment Over 3 years

Individual items costing less than £1,000 are written off as an expense on acquisition.

P a g e 24

THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

i) Fund accounting

Unrestricted funds

Unrestricted funds relate to the School’s general operational funds.

Restricted funds

Restricted funds are those which must be applied in accordance with the purpose specified by the donor. Expenditure relating to these purposes is charged directly to the fund.

Permanent Endowment Funds

Endowed funds consist of investments and part of the freehold land and buildings used by The Portsmouth Grammar School. The purpose to which the investments may be applied is restricted in accordance with the terms of The Portsmouth Grammar School Endowment Trust. The fund also includes a property endowment fund consisting of an investment property held by the school. The rental income generated is used to fund the Wilkie Scholarships and is classified within restricted funds.

Expendable Endowment Fund

The expendable endowment fund relates to the Arthur Darby Nock Trust, a linked charity. In accordance with the instructions of the Charity Commission, the assets, liabilities and transactions of the Trust remain separately identifiable within the consolidated accounts, being maintained in an Expendable Endowment Fund within the SOFA and shown on the face of the Balance Sheet.

j) Pension schemes

The School contributes to the Teachers’ Pension Defined Benefits Scheme at rates set out by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multiemployer pension scheme, and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as a defined contribution scheme. The school has withdrawn from the scheme for new entrants.

The School also operates defined contribution schemes for all staff, including an auto enrolment arrangement. Contributions to the schemes are charged in the SOFA as they become payable, in accordance with the rules of the schemes.

k) Stocks

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

l) Leased Assets – Lessee and Lessor

Operating lease expenses/rental income are charged/ credited to the statement of financial activities on a straight-line basis over the relevant lease term.

m) Financial instruments

Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost. Note 28 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments and deferred expenditure, and financial liabilities referring to all creditor balances excluding advance fees, deposits in advance and other taxes and social security.

n) 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 and Government Treasury Bills. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

o) Deferred income (Advance fees)

Amounts received under the school’s Advance Fee Scheme are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date or as long-term liabilities where the education will be provided in subsequent years

p) Parents’ deposits

The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2025 have been included within current liabilities.

q) Bad debt provisions

When the school instructs lawyers to assist in the recovery of a parent debt, a full provision will be made. All other ongoing debts are individually considered and either a full or partial provision may be made as deemed appropriate, on the particular circumstances concerned, to ensure that an appropriate level of provision is maintained.

3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity’s accounting policies, which are described in note 2, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods. In the opinion of the Governors, the most significant accounting estimate is in relation to the provision for non-collection of parental debt.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

4. SCHOOL FEES RECEIVABLE

SCHOOL FEES RECEIVABLE
School fees receivable consist of:- Gross fees Less: Foundation bursaries Scholarships, prizes, discounts and allowances	2025 £ 20,436,279 (2,220,198) (945,727) **17,270,354 **	2024 £ 22,290,343 (2,637,102) (934,583)
		18,718,658

The above educational awards were made to 324 individuals ( 2024: 394).

Gross fees are shown net of a standard 3% direct debit discount which is taken up by the majority of parents.

5. ANCILLARY TRADING INCOME

Lunches School trips Registration fees Fee protection insurance Sale of goods Other ancillary income 6. INVESTMENT INCOME Rental income Dividend income Bank interest	2025 £ 571,635 560,154 20,878 10,223 16,340 102,689 1,281,919 2025 £ 83,918 372,390 -	2024 £ 661,269 478,709 29,075 7,965 13,595 121,650
		1,312,263
		2024 £ 49,185 253,127 1,078
	456,308	303,390

7. DONATIONS

Donations to the school totalled £957,943 in the year. This was split £405,185 from legacies and £552,758 from gifts of a general nature.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

8. TRADING SUBSIDIARY

PGS PROMOTIONS LIMITED Turnover Cost of sales Gross profit Administrative expenses Net profit Retained earnings at the beginning of the year Profit for the year Gift aid donation Retained earnings at the end of the year	2025 £ 138,660 (73,447) 65,213 (65,282) (69) (2,086) (69) - (2,155)	2024 £ 155,994 (98,892)
		50,702 (60,931)
		(3,829)
		16,798 (3,829) (15,055)
		(2,086)

PGS Promotions Limited had net liabilities totalling £(2,155) ( 2024: £(2,086)) at the year-end.

Aggregate non-charitable trading income of £53,699 (2024: £57,419) and expenditure of £5,082 (2024: £5,082) was eliminated on consolidation.

9. TOTAL RESOURCES EXPENDED

Charitable activities Teaching costs Welfare costs Premises costs Support costs School’s operating costs Raising Funds Financing costs Fund-raising costs TOTAL FOR SCHOOL Subsidiary trading and finance costs Endowment fund The Arthur Darby Nock Trust TOTAL FOR GROUP	Staff costs Depreciation Other 2025 2024 £ £ £ £ £ 10,609,627 348,818 1,997,416 12,955,861 13,043,778 133,263 - 963,426 1,096,689 1,099,765 1,072,943 503,977 1,593,501 3,170,421 2,350,304 1,835,078 - 1,570,705 3,405,783 4,374,721
	13,650,911 852,795 6,125,048 20,628,754 20,868,568 - - 325,930 325,930 465,449 154,330 - 38,932 193,262 138,968
	154,330 - 364,862 519,192 604,417 13,805,241 852,795 6,489,910 21,147,946 21,472,985
	33,964 - 99,683 133,647 154,741 - - 8,890 8,890 8,714 - - 10,906 10,906 11,721
	13,839,205 852,795 6,609,389 21,301,389 21,648,161

Included in support costs are governance costs of £51,680 (2024: £70,364).

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

9. TOTAL RESOURCES EXPENDED (continued)

OTAL RESOURCES EXPENDED (continued)
Total staff costs comprised: Wages and salaries Social security costs Pension contributions Other	2025 £ 10,290,272 1,132,121 2,245,715 171,097 13,839,205	2024 £ 10,393,574 1,026,838 2,148,073 336,546
		13,905,031

Included within the wages figure above are redundancy payments of £57,984 relating to 6 members of staff and payments in excess of contractual entitlements of £49,600 relating to 2 members of staff. ( 2024: 5 redundancy £4,551).

The average number of employees in the period was 319 (2024: 357) broken down as follows:

Average number of teaching staff: Full Time Part Time Total Average number of support staff Full Time Part Time Total Total all staff	2025 98 39 137 49 133 182 319	2024 114 74
		188 45 124
		169
		_357 _

During the year an update of staff classification was undertaken.

The number of employees whose emoluments exceeded £60,000 were:

	2025	2024
	No.	No.
£60,001 - £70,000	17	18
£70,001 - £80,000	7	6
£80,001 - £90,000	1	2
£90,001 - £100,000	-	-
£100,001 - £110,000	-	1
£110,001 - £120,000	1	-
£130,001 - £140,000	-	-
£140,001 - £150,000	1	1

In connection with these higher paid employees, retirement benefits are accruing under money purchase schemes for 14 ( 2024: 6) and under multi-employer defined benefit schemes for 12 employees ( 2024: 21) with 1 employee not in either scheme. The total employer contributions in the year to the schemes were £503,864 (2024: £457,705).

Key management personnel comprise the Governors and Senior Management Team listed on page 2. Key management personnel received aggregate remuneration (including employers NI and employers’ pension) of £1,072,180 (2024: £956,994).

None of the Governors or any persons connected with them have received any remuneration in the year. Four Governors (2024: two) were reimbursed travel expenses during the year totalling £743 (2024: £655).

P a g e 29

THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

10. NET INCOME

Net income is stated after charging: Auditors’ remuneration - Audit – School - Audit – Subsidiary - Other services - Corporation tax compliance Operating leases Depreciation 11. FINANCING COSTS Bank loan and overdraft interest Bank charges Bad debts Other financing costs	2025 £ 27,976 6,674 1,200 1,730 125,779 852,795 2025 £ 253,934 29,469 (27,710) 81,521 337,214	2024 £ 28,045 6,690 1,200 1,234 33,625 826,282 2024 £ 290,277 15,062 131,910 39,261 476,510

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

12. TANGIBLE FIXED ASSETS

GROUP COST At 1 September 2024 Additions Disposals At 31 August 2025 DEPRECIATION At 1 September 2024 Charge for the year Disposals At 31 August 2025 NET BOOK VALUE At 31 August 2025 At 31 August 2024 SCHOOL COST At 1 September 2024 Additions Disposals At 31 August 2025 DEPRECIATION At 1 September 2024 Charge for the year Disposals At 31 August 2025 NET BOOK VALUE At 31 August 2025 At 31 August 2024	Freehold land and buildings Fixtures, fittings, computer equipment & plant Motor vehicles Total £ £ £ £ 27,357,256 4,940,693 11,225 32,309,174 49,345 683,268 - 732,613 - (1,327,423) - (1,327,423)
	27,406,601 4,296,538 11,225 31,714,364
	7,105,362 3,708,585 11,225 10,825,172 463,109 389,686 - 852,795 - (1,290,818) - (1,290,818)
	7,568,471 2,807,453 11,225 10,387,149
	19,838,130 1,489,085 - 21,327,215
	20,251,894 1,232,108 - 21,484,002
	23,732,372 4,927,527 - 28,659,899 49,345 683,268 - 732,613 - (1,327,423) - (1,327,423)
	23,781,717 4,283,372 - 28,065,089
	7,105,363 3,695,418 - 10,800,781 463,109 389,686 - 852,795 - (1,290,818) - (1,290,818)
	7,568,472 2,794,287 - 10,362,759
	16,213,245 1,489,085 - 17,702,330
	16,627,010 1,232,109 - 17,859,119

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

13. FIXED ASSET INVESTMENTS

a. GROUP

UK Listed investments At 1 September 2024 Additions Disposals Investment gains/(losses) Market value of investments Cash held for investment Total investment at 31 August 2025 Historical Cost SCHOOL At 1 September 2024 Additions Disposals Investment gains/ (losses) Market value of investments Cash held for investment At 31 August 2025 Historical cost	2025 £ 2,547,212 819,946 (868,513) 121,697 2,620,342 5,766 2,626,108 2,267,978 Listed 2025 Unlisted 2025 Total 2025 £ £ £ 2,547,212 2 2,547,214 819,946 - 819,946 (868,513) - (868,513) 121,697 - 121,697	2024 £ 2,392,894 388,031 (485,524) 251,811
		2,547,212 44,324 2,591,536
		2,236,602
		Total 2024 £ 2,392,896 388,031 (485,524) 251,811
	2,620,342 2 2,620,344 5,766 - 5,766 2,626,108 2 2,626,110	2,547,214 44,324 2,591,538
	2,267,978 2 2,267,980	2,236,604

The School owns 100% of the ordinary share capital and voting rights of PGS Promotions Limited (Company Number: 02937047), whose principal activity is to operate the School’s sports centre, transport and uniform shop. The company’s registered office is: The Portsmouth Grammar School, High Street, Old Portsmouth, Hampshire, PO1 2LN.

The results of the subsidiary are included in these consolidated accounts on a line-by-line basis, as required by the Charities SORP.

b. FIXED ASSET INVESTMENT PROPERTY

GROUP AND SCHOOL

At 1 September 2024 Additions Revaluation gain Market Value at 31 August 2025 Historical Cost	2025 £ 2,090,000 - 115,000 2,205,000 2,065,000	2024 £ 750,000 1,315,000 25,000
		2,090,000
		2,065,000

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

14. CASH AND CASH EQUIVALENTS

Cash at bank and in hand	Group School 2025 2024 2025 2024 £ £ £ £ 4,482,523 7,683,329 4,410,613 7,613,885
	4,482,523 7,683,329 4,410,613 7,613,885

15. DEBTORS

Trade and parental debt Amounts due from group undertakings Prepayments and other debtors Deferred expenditure VAT	Group School 2025 2024 2025 2024 £ £ £ £ 282,459 493,089 282,459 493,089 - - 152,331 160,481 503,250 758,439 497,029 749,965 - - - - 56,510 - 54,526 -
	842,219 1,251,437 986,345 1,403,535

16. CREDITORS: Amounts falling due within one year

Bank loan (note 18) Finance Leases (note 25a) Trade creditors Amounts owed to group undertakings Deposits in advance Other creditors Accruals Deferred income (note 19) Other taxes and social security	Group School 2025 2024 2025 2024 £ £ £ £ 311,309 295,716 311,309 295,716 20,758 - 20,758 - 314,082 436,161 302,008 435,499 - - 1,447,805 1,359,420 361,850 346,157 361,850 346,157 596,262 423,810 596,262 423,810 130,352 176,041 118,476 166,012 1,401,648 2,622,105 1,401,648 2,622,105 474,150 253,211 474,150 250,404
	3,610,411 4,553,201 5,034,266 5,899,123

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

Bank loans (note 18) Finance Leases (note 25a) Deferred income (note 19)	Group School 2025 2024 2025 2024 £ £ £ £ 4,244,424 4,559,636 4,244,424 4,559,636 88,079 - 88,079 - 1,565,637 3,151,925 1,565,637 3,151,925 5,898,140 7,711,561 5,898,140 _7,711,561 _

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

18. BANK LOANS – GROUP AND SCHOOL

The bank loans are repayable as follows: -

Within one year Between one and two years Between two and five years Over five years	2025 £ 311,309 327,357 1,093,151 2,823,916 4,555,733	2024 £ 295,716 311,309 1,053,177 3,195,150 4,855,352

The school has the following loans:

Science Centre

A bank loan of £4.8m was agreed during 2010 to finance the construction of a new science centre. At the beginning of the financial year the balance was £2,227,474 split between a variable rate loan at 1.6% above base rate (£1,262,167), a variable rate loan at 1.6% above base rate (£563,453) and a fixed rate loan at 5.8% (£562,326). At year end the balance on these three loans stood at £2,036,503 (2024: £2,227,474).

Sixth Form Centre

In 2014 variable rate bank loan of £3.8m at 2.6% above base rate was agreed to finance the construction of the new Sixth form Centre. In March 2024 the remaining balance of the loan was refinanced and split 50% to a variable rate loan at 1.85% above base rate and 50% to a fixed rate loan at 5.95%. The balance on these two loans at year end stood at £2,519,231 (2024: £2,627,878).

The above loans are secured by first legal charges dated 29 February 2000 and 23 March 1999 in favour of Lloyds TSB Bank Plc over the freehold land and buildings at Portsmouth Grammar School, High Street, Portsmouth and 8 Penny Street, Portsmouth respectively.

19. DEFERRED INCOME (ADVANCE FEES) – GROUP AND SCHOOL

Parents may enter into a contract to pay to the school up to the equivalent of seven years’ tuition fees in advance. The money may be returned subject to specific conditions and on the receipt of one term’s notice. Assuming pupils will remain in the school, advance fees will be applied as follows:-

Within one year Within 1 to 2 years Within 2 to 5 years Over five years	2025 £ 1,401,648 728,675 783,705 53,257 2,967,285	2024 £ 2,622,105 1,394,422 1,558,843 198,660
		5,774,030

The balance represents the accrued liability under the contracts. The movements during the year were:-

Balance at 1 September 2024 New contracts Amounts accrued to contracts Amounts utilised in payment of fees to the school Balance at 31 August 2025	5,774,030 133,742 5,907,772 (2,940,487) 2,967,285	1,623,766 5,415,857
		7,039,623 (1,265,593)
		5,774,030

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

20. RESTRICTED FUNDS

GROUP AND SCHOOL

RESTRICTED FUNDS GROUP AND SCHOOL
Fund name William Smith Fund Wilkie Scholarship Fund Other Total	At 1 September 2024 Incoming Resources Resources expended Transfers between funds At 31 August 2025 £ £ £ £ £ 2,081,457 956,018 (270,873) - 2,766,602 23,425 19,800 (30,400) - 12,825 1,583 1,415 - - 2,998
	2,106,465 977,233 (301,273) - 2,782,425

GROUP AND SCHOOL (2024 comparative)

Fund name William Smith Fund Wilkie Scholarship Fund Other Total	At 1 September 2023 Incoming Resources Resources expended Transfers between funds At 31 August 2024 £ £ £ £ £ 1,878,910 280,861 (78,315) - 2,081,457 14,675 28,280 (19,530) - 23,425 77,104 759 (62,243) (14,037) 1,583
	1,970,689 309,900 (160,088) (14,037) 2,106,465

William Smith Fund

This fund was launched in July 2015 and exists primarily to provide funds for means tested bursary support to pupils.

Geoff Foley Innovation and Creativity

This fund was set up to promote group work and problem solving outside of normal schoolwork and funds an annual prize.

Wilkie Scholarship Fund

This fund was set up to provide 50% bursaries annually for two pupils entering Year 12 under the Wilkie Scholarship. The school provides an additional 50% for each pupil.

Other

Other consists of funds raised by staff and pupils for the United World School in Chai Thom, Cambodia and Kikaaya College School in Uganda.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

21. UNRESTRICTED AND ENDOWMENT FUNDS

GROUP Fund name Permanent Endowment - Investment Property - Trust Expendable Endowment Unrestricted Reserves SCHOOL Fund name Permanent Endowment - Investment Property Unrestricted Reserves	At 1 September 2024 Incoming resources Resources expended Gains/ (losses) Transfer between funds At 31 August 2025 £ £ £ £ £ £ 775,000 - - (15,000) - 760,000 4,750,362 29,800 (8,890) 55,428 - 4,826,700
	5,525,362 29,800 (8,890) 40,428 - 5,586,700
	233,942 8,026 (10,906) 14,928 - 245,990
	15,063,840 19,188,550 (20,980,320) 181,341 - 13,453,411 At 1 September 2024 Incoming resources Resources expended Gains/ (losses) Transfer between funds At 31 August 2025 £ £ £ £ £ £ 775,000 - - (15,000) - 760,000
	15,065,927 19,049,889 (20,841,591) 131,341 - 13,455,567

The Portsmouth Grammar School Endowment Trust is a subsidiary charity of the school and its investment income is passed directly to the school.

The Investment Property Fund is accounted for as a Permanent Endowment until such time as the lease is terminated in accordance with the agreement. On reversion of the lease, the School is able to sell the property and apply any or part of the capital and income of the Funds to support the Wilkie Scholarship Fund. At this point the Fund meets the definition of an Expendable Endowment.

The Arthur Darby Nock Trust is held as an expendable endowment to provide scholarships at The Portsmouth Grammar School.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

21. UNRESTRICTED AND ENDOWMENT FUNDS (continued) 2024 Comparative

2024 Comparative
GROUP Fund name Permanent Endowment -Investment Property -Trust Expendable Endowment Unrestricted Reserves SCHOOL Fund name Permanent Endowment -Investment Property Unrestricted Reserves	At 1 September 2023 Incoming resources Resources expended Gains/ (losses) Transfer between funds At 31 August 2024 £ £ £ £ £ £ 750,000 - - 25,000 - 775,000 4,615,280 28,648 (8,714) 115,148 - 4,750,362
	5,365,280 28,648 (8,714) 140,148 - 5,525,362
	206,936 7,716 (11,721) 31,011 - 233,942
	14,307,476 22,075,671 (21,467,639) 134,297 14,037 15,063,840 At 1 September 2023 Incoming resources Resources expended Gains/ (losses) Transfer between funds At 31 August 2024 £ £ £ £ £ £ 750,000 - - 25,000 - 775,000
	14,290,677 21,919,676 (21,292,760) 134,297 14,037 15,065,927

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

22. ALLOCATION OF NET ASSETS BETWEEN FUNDS

2025 GROUP Fund name Permanent endowment Expendable endowment Restricted Unrestricted Total SCHOOL Permanent endowment Restricted Unrestricted Total 2024 GROUP Fund name Permanent endowment Expendable endowment Restricted Unrestricted Total SCHOOL Permanent endowment Restricted Unrestricted Total	Fixed assets Investments Current assets Current liabilities Long term liabilities Total £ £ £ £ £ £ 3,624,884 760,000 1,211,912 (10,096) - 5,586,700 - - 392,968 (146,978) - 245,990 - - 2,782,425 - - 2,782,425 17,702,331 4,071,108 1,031,449 (3,453,337) (5,898,140) 13,453,411
	21,327,215 4,831,108 5,418,754 (3,610,411) (5,898,140) 22,068,526
	- 760,000 - - - 760,000 - - 2,782,425 - - 2,782,425 17,702,330 4,071,110 2,614,533 (5,034,266) (5,898,140) 13,455,567
	17,702,330 4,831,110 5,396,958 (5,034,266) (5,898,140) **16,997,992 **
	Fixed assets Investments Current assets Current liabilities Long term liabilities Total £ £ £ £ £ £ 3,624,884 775,000 1,135,573 (10,095) - 5,525,362 - - 380,920 (146,978) - 233,942 - - 2,106,465 - - 2,106,465 17,859,118 3,906,535 5,405,875 (4,396,128) (7,711,561) 15,063,840
	21,484,002 4,681,535 9,028,833 (4,553,201) (7,711,561) 22,929,609
	- 775,000 - - - 775,000 - - 2,106,465 - - 2,106,465 17,859,119 3,906,538 6,910,955 (5,899,123) (7,711,561) 15,065,927
	17,859,119 4,681,538 9,017,420 (5,899,123) (7,711,561) _17,947,392 _

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

23. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

(Decrease) / Increase in cash in the year Net loan repayments Net advance fees movements Change in net debt Net Debt at 1 September 2024 NET DEBT AT 31 AUGUST 2025 ANALYSIS OF CHANGE IN NET DEBT Cash at bank and in hand Cash at investment manager Loans & Finance Leases Advance fees scheme	Net debt as at 31August 2024 £ 7,683,329 44,324 (4,855,352) (5,774,030)	2025 £ (3,239,364) 190,782 2,806,745 (241,837) (2,901,729) (3,143,566) Cash Change £ (3,200,806) (38,558) 190,782 2,806,745	2024 £ 3,416,246 321,317 (4,150,264) (412,701) (2,489,028) (2,901,729)
			Net debt as at 31 August 2025 £ 4,482,523 5,766 (4,664,570) (2,967,285)
	(2,901,729)	(241,837)	(3,143,566)

24. ANALYSIS OF CHANGE IN NET DEBT

25. OTHER FINANCIAL COMMITMENTS

a) OTHER FINANCIAL COMMITMENTS: LESSEE

At 31 August 2025 the School had future minimum lease payments under non-cancellable operating leases as follows:

Other operating leases

GROUP Within one year Between one and five years Over 5 years SCHOOL Within one year Between one and five years Over 5 years	2025 £ 133,796 296,146 5,650 435,592 110,095 258,070 5,650 373,815	2024 £ 116,172 323,434 -
		439,606
		88,046 261,657 -
		349,703

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

Finance leases GROUP and SCHOOL Within one year Between one and five years Over 5 years	2025 £ 20,758 88,079 - 108,837	2024 £ - - - -

b) OTHER FINANCIAL COMMITMENTS: LESSOR

At 31 August 2025 the School had future minimum lease receipts under non-cancellable operating leases as follows:

ases as follows:
Investment property GROUP AND SCHOOL Within one year Between one and five years Over 5 years	2025 £ 114,558 333,800 34,042 482,400	2024 £ 96,850 176,233 55,542
		328,625

26. PENSION COSTS

Defined Benefit Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,102,902 (2024: £1,567,342) and at the year-end £nil (2024: £Nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. The Valuation Report shows notional assets of £222.2bn and liabilities of £262bn, resulting in a scheme deficit of £39.8bn.

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

The school closed entry to the TPS scheme for new entrants from 1[st] September 2023.

Other Pensions

In addition to the above the School also makes contributions to defined contribution schemes for teaching and non-teaching staff. This is a separately administered defined contribution scheme or an auto enrolment arrangement with NEST. Employers’ contributions totalling £998,631 (2024: £454,938) were payable to the defined contribution fund for the year and £135,540 ( 2024: £125,793) payable to NEST for the year.

Total outstanding contributions for all schemes at the year-end were £ 202,965 (2024: £nil).

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

27. RELATED PARTY TRANSACTIONS

The Head is a Trustee of The PortsFest charity. At the year-end PortsFest owed the School £683 ( 2024: £8,717 ). The School contributed £nil ( 2024: £15,000 ) to PortsFest during the financial year.

The Head’s remuneration package includes an interest free loan of £100,000 in respect of accommodation in the year. The loan was made on the 9[th] May 2023 and the balance of £100,000 remained outstanding at year end.

28. FINANCIAL INSTRUMENTS

Group Financial assets measured at amortised cost Financial liabilities measured at amortised cost Financial assets measured at fair value	2025 2024 £ £ 5,266,232 8,934,765 5,705,266 5,891,364 4,831,107 4,681,536

The group’s income, expense, gains and losses in respect of financial instruments are summarised below:

Interest income and expense: Total interest income for financial assets held at amortised cost Total income for financial assets held at fair value Total interest expense for financial liabilities held at amortised cost School Financial assets measured at amortised cost Financial liabilities measured at amortised cost Financial assets measured at fair value	2025 2024 £ £ 456,308 303,390 57,227 62,650 253,934 290,277 2025 2024 £ £ 4,410,613 9,017,419 7,129,121 7,240,093 4,831,109 4,681,538

The school’s income, expense, gains and losses in respect of financial instruments are summarised below:

Interest income and expense: Interest income Total income for financial assets held at fair value Interest expense	2025 2024 £ £ 456,308 303,390 29,401 26,286 253,934 290,277

Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and cash and cash equivalents. Included within this figure for the group and school is a parental debt provision totalling £358,970 (2024: £388,617).

Financial assets are measured at fair value comprise listed investments.

Financial liabilities measured at amortised costs comprise bank loans, amounts owed to group undertakings, net obligations under finance lease and hire purchase contracts, other creditors and accruals.

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THE PORTSMOUTH GRAMMAR SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

29. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

				Expendable	Permanent
		Unrestricted	Restricted	Endowment	Endowment	Total	Total
	Notes	Funds	Funds	Fund	Funds	2024	2023
INCOME AND ENDOWMENTS		£	£	£	£	£	£
Charitable activities
School fees receivable	4	18,718,658	-	-	-	18,718,658	18,549,725
Ancillary trading income	5	1,312,263	-	-	-	1,312,263	1,368,080
Other trading activities
Activities for generating funds:
Non-charitable trading	7	98,575	-	-	-	98,575	113,177
Other incoming resources		111,948	-	-	-	111,948	83,053
Investments
Investment Income	6	238,744	28,280	7,716	28,650	303,390	162,163
Voluntary sources
Donations – Investment Property		1,315,000	-	-	-	1,315,000	-
Donations - Other		280,481	281,620	-	-	562,101	397,820
Total income		22,075,669	309,900	7,716	28,650	22,421,935	20,674,016
EXPENDITURE ON:
Raising Funds
Non-charitable trading	7	154,741	-	-	-	154,741	151,610
Financing costs	10	465,449	-	2,347	8,714	476,510	484,394
Fund-raising costs		138,968	-	-	-	138,968	208,453
Charitable activities:
School operating costs and
grant making		20,708,481	160,087	9,374	-	20,877,942	19,630,199
Total expenditure	8	21,467,639	160,087	11,721	8,714	21,648,161	20,474,656
Net investment gains/(losses)		134,297	-	31,011	140,148	305,456	(60,886)
NET INCOME/(EXPENDITURE)		742,327	149,813	27,006	160,084	1,079,231	138,474
Transfer between funds		14,037	(14,037)	-	-	-	-
NET MOVEMENT IN FUNDS		756,364	135,776	27,006	160,084	1,079,231	138,474
Fund balances at 1 September 2023		14,307,476	1,970,689	206,936	5,365,277	21,850,378	21,711,904
Fund balances at 31 August 2024		15,063,840	2,106,465	233,942	5,525,362	22,929,609	21,850,378

30. POST BALANCE SHEET EVENTS

On 10[th] November 2025 the school exchanged contracts for the sale of the Upper Junior School site that was held as a fixed asset at the reporting date. The property was sold for £2.005m with completion due in the summer of 2026.

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