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2026-03-31-accounts

The Brewery Arts Centre Endowment Trust

Registration number: 1065424

Annual Report and Financial Statements

31 March 2026

The Brewery Arts Centre Endowment Trust

Contents

Reference and Administrative Details 1
Trustees' report 2
Trustees' responsibilities 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9

The Brewery Arts Centre Endowment Trust Reference and Administrative Details

Charity name The Brewery Arts Centre Endowment Trust The Brewery Arts Centre Endowment Trust
Charity registration number 1065424
Principal office c/o Madeleine Scott
Low House Business Centre
WINDERMERE
LA23 3NA
Registered office c/o Madeleine Scott
Low House Business Centre
WINDERMERE
LA23 3NA
Trustees C S Fairclough (Resigned 21 May 2026)
J M Plumptre
H Pring
M M Scott
S J V Osmond
Secretary S Wiggins
Bankers Barclays Bank plc
9 Highgate
KENDAL
LA9 4DF
Accountant Dodd & Co Limited
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW
Investment Advisor Cazenove Capital Management Limited
12 Moorgate
LONDON
EC2R 6DA

Page 1

The Brewery Arts Centre Endowment Trust

Trustees' Report for the Year Ended 31 March 2026

The trustees present their report with the financial statements of the charity for the year ended 31 March 2026. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, governance and management

The Brewery Arts Centre Endowment Trust (BACET) was established by Deed of Trust dated 20 November 1997 which was amended by a Deed of Amendment of Declaration of Trust dated 25 February 2002.

BACET was established as a result of the great generosity of the Francis C. Scott and the Frieda Scott Charitable Trusts. Both trusts made donations totalling £1.550m in total, the purpose of which is, subject to the discretion of the BACET trustees, to generate funds to help defray the running costs of Kendal Brewery Arts Centre Trust (KBACT). The original donation should ideally be maintained and is only available for distribution in exceptional circumstances.

Recruitment and appointment of new trustees

Under the terms of the Deed of Amendment of Declaration of Trust dated 25 February 2002 the trustees of the Francis C. Scott Charitable Trust are entitled to nominate three trustees and the trustees of the Frieda Scott Charitable Trust are entitled to nominate two trustees. Trustees shall hold office for a term of five years from the date of their appointment and shall be eligible for re-appointment.

Organisational structure

The charity does not employ any staff directly; it uses the services of RJBM Limited to provide secretarial services. Details of the trustees who served during the year are set out on page 1.

All trustees give of their time freely and no trustee remuneration or expenses were paid in the year. Trustees are required to disclose all relevant interests to the other trustees and in accordance with the charity's policy withdraw from decisions where a conflict of interest arises.

The trustees meet regularly (normally bi-annually) in order, inter alia, to monitor the performance of the investment portfolio and to determine the level of maintenance funding to KBACT. There are no sub committees.

Induction and training of new trustees

An induction pack is available to any new trustee which includes a copy of the trust deed, a summary of the trust's objectives, a copy of the Charity Commission's guide on the duties of a trustee, details of the investment portfolio and the most recent financial statements.

Objectives and aims

BACET exists to provide financial assistance to the Kendal Brewery Arts Centre Trust Limited (KBACT).

The objective is met by establishing the amount of funding to be provided to KBACT, setting and maintaining a supportive investment policy and distributing appropriate amounts of the charity's general fund.

Public benefit

The trustees confirm that that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives, in planning future activities and setting the grant making policy for the year.

The public benefit is the financial assistance provided to KBACT, itself a registered charity, in order to help it to continue to deliver its public benefit.

Grant-making policy

Grants are only made to KBACT in accordance with the objectives stated above. The trustees consider that no detriment or harm arises from the grants made.

Page 2

The Brewery Arts Centre Endowment Trust

Trustees' Report for the Year Ended 31 March 2026

Achievements and performance

The trust's sole beneficiary, KBACT, continued to require substantial support during the year. Notwithstanding the additional £100,000 paid to KBACT over the previous two financial years, KBACT requested additional funding this year. At the start of the financial year BACET offered to increase its monthly support to KBACT from £5,500 pm to £7,000 pm until 2027 (subject to review in March 2026). BACET also provided another capital sum of £59,000 utilising accumulated capital.

Financial review

The trust's support for its beneficiary is reliant on the income from its investments which was £52,599 (2025 - £50,070) and the gains on investments. The net gain on investment assets was £242,529 (2025 - £7,905) and was made up of a gain of £19,295 (2025 - £10,100) on the sale of investments and an unrealised gain of £223,234 (2025 - loss of £2,195) on investments held at the year end.

The fund managers' fees have decreased marginally to £9,982 (2025 - £10,012).

The funding provided to KBACT consisted of a maintenance grant of £84,000 (2025 - £69,000) and a £59,000 (2025 - £50,0000) contribution to future sustainability.

The secretarial fees have increased to £1,300 (2025 - £1,200).

Total funds at the year end increased from £1,959,753 to £2,098,650 due to the growth in value of the Trust's investment portfolio.

Investment policy and performance

The trust's investment assets are managed by external fund managers, Cazenove Capital Management Limited. There were no restrictions on the charity's power to invest and the funds are invested in a portfolio of investment funds.

It is the objective of the trustees to invest the trust funds to produce a distributable amount that, over time, grows roughly in line with inflation. On 7 January 2021, the trustees made a resolution under section 104(A) of the Charities Act 2011 to adopt a total return on investment approach to the permanent endowment fund, which eliminated the need to observe precise targets for dividend income.

On 1 April 2021, the board identified the value of the gifts of permanent endowment received since the fund was established to be £1,550,000. This set the baseline value of the gift component of the endowment. The difference between the total of endowment funds as at 1 April 2021 and the value of the gift component represented the opening balance of unapplied total return. The power of total return permits the trustees to invest permanently endowed funds to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. Until this power is exercised, the unapplied total return remains invested as part of the permanent endowment.

In order to decide the level of transfer to income, the trustees sought advice from the charity's Investment Manager as to the likely investment trends and the maintenance of the real value of the investment fund.

The trustees have adopted the ARC Steady Growth Index (PCI) as the principal benchmark for the performance of the fund. The trustees compare the performance of their Investment Managers with the benchmark over the period and the longer term and keep this under regular review. The portfolio's one-year total return to 31 March 2026 was 14.8% (2025: 2.2%) and the ARC Steady Growth benchmark was 9.7% (2025: 2.1%). Five years total return to 31 March 2026 was 5.8% and the benchmark was 4.1%.

Reserves policy

The trustees need to retain sufficient cash in unrestricted funds to enable regular grant payments to be made to KBACT. Funds are transferred from Permanent Endowment to unrestricted funds in line with the total return policy and together with income received should be adequate to meet these requirements.

Page 3

The Brewery Arts Centre Endowment Trust

Trustees' Report for the Year Ended 31 March 2026

At 31 March 2026 unrestricted funds held were negative £1,680 (2025 - positive £13,846) The trustees believe they are able to fund on-going grant payments because they can draw from the capital of the investments so long as making of such application wouldn't reduce the value of the capital of the Trust Fund to less than the value of the Scott Endowment.

Going concern

As the unapplied total return (excess of the current value of the portfolio over the original value of grants received) stands at £550,330 at 31 March 2026 and with the trustees ability to reduce grant payments to the beneficiary if necessary, the trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Risk management

The charity trustees have considered and reviewed the major risks to which the charity is exposed and have established systems and procedures to manage those risks. The trustees consider variability of investment returns on the permanent and expendable endowment funds to constitute the charity's major risk. This risk is managed by the appointment of external fund managers whose performance is regularly monitored by the trustees.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions. These procedures are periodically reviewed to ensure they continue to meet the needs of the charity.

Future plans

The charity plans to continue the activities outlined above in the forthcoming years subject to the satisfactory performance of its investment portfolio.

Approved by the Trustees on 13 August 2026 and signed on their behalf by:

.........................................

H Pring Trustee

Page 4

The Brewery Arts Centre Endowment Trust

Trustees' Responsibilities in relation to the Financial Statements

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 as amended by the Charities Act 2022, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

Independent Examiner's Report to the Trustees of

The Brewery Arts Centre Endowment Trust

I report on the accounts of the charity for the year ended 31 March 2026, which are set out on pages 7 to 14.

Your attention is to drawn to the fact that the Charity has prepared the financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has since been withdrawn.

We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Respective responsibilities of trustees and examiner

The Charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 as amended by the Charities Act 2022 (the Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

......................................... Joanne Thomlinson FCA Dodd & Co Limited Chartered Accountants

FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW

13 August 2026

Page 6

The Brewery Arts Centre Endowment Trust Statement of Financial Activities for the Year Ended 31 March 2026

Note
Income
Investment income
2
Total income
Expenditure
Raising funds
Charitable activities
Total expenditure
Gains/(losses) on investment assets
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Endowment
Funds
Total Funds
2026
Total Funds
2025
£
£
£
£
-
52,599
52,599
50,070
-
52,599
52,599
50,070
115
9,982
10,097
10,012
146,134
-
146,134
121,944
146,249
9,982
156,231
131,956
-
242,529
242,529
7,905
(146,249)
285,146
138,897
(73,981)
130,723
(130,723)
-
-
(15,526)
154,423
138,897
(73,981)
13,846
1,945,907
1,959,753
2,033,734
(1,680)
2,100,330
2,098,650
1,959,753

The notes on pages 9 to 14 form an integral part of these financial statements. Page 7

The Brewery Arts Centre Endowment Trust

Balance Sheet as at 31 March 2026

Note
Fixed assets
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due within
one year
10
Net current assets
Net assets
The funds of the charity:
Endowment funds
Unrestricted funds
Unrestricted income funds
Total charity funds		 2026
£
£
2,098,639
3,659
2,058
5,717
(5,706)
11
2,098,650
2,100,330
(1,680)
2,098,650		 2025
£
£
1,944,051
3,895
17,281
21,176
(5,474)
15,702
1,959,753
1,945,907
13,846
1,959,753		 2025
£
£
1,944,051
3,895
17,281
21,176
(5,474)
15,702
1,959,753
1,945,907
13,846
1,959,753
1,959,753
1,945,907
13,846
1,959,753

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Approved by the Board on 13 August 2026 and signed on its behalf by:

.........................................

H Pring Trustee

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 8

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

1 Accounting policies

Statement of compliance

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 as amended by the Charities Act 2022.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities:Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Basis of preparation

The charity 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 notes.

Going concern

These financial statements have been prepared on a going concern basis.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Further details of each fund are disclosed in note 12.

Income and endowments

Investment income is recognised on a receivable basis.

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Costs of raising funds are the investment management costs incurred by the charity,

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

Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specific service or output.

Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the charity.

Page 9

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

......... continued

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Investments

Fixed asset investments are included at market value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

2 Investment income

Dividends
Interest on cash deposits		 Unrestricted
Funds
£
-
-		 Endowment
Funds
£
51,837
762		 Total Funds
2026
£
51,837
762		 Total Funds
2025
£
48,138
1,932
- 52,599 52,599 50,070

All of the investment income in 2025 related to endowment funds.

Page 10

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

......... continued

3 Expenditure

Direct costs
Kendal Brewery Arts Centre Trust Limited
Portfolio management costs
Support costs
Sundry expenses
Accountancy fees
Independent examiner's fee
Secretarial fees		 Investment
management
£
-
9,982
9,982
115
-
-
-
115
10,097		 Grant
funding of
activities
£
143,000
-		 Total
2026
£
143,000
9,982		 Total
2025
£
119,000
10,012
143,000 152,982 129,012
-
1,334
500
1,300		 115
1,334
500
1,300		 -
1,244
500
1,200
3,134 3,249 2,944
146,134 156,231 131,956

Of the expenditure in 2025 £121,944 related to unrestricted funds and £10,012 related to endowment funds.

4 Grants to institutions

Name of Institution Activity £ Kendal Brewery Arts Centre Trust Limited Grant funding of activities 143,000

5 Governance costs

Accountancy fees
Independent examiner's fee
Secretarial fees		 2026
£
1,334
500
1,300
3,134		 2025
£

1,244

500

1,200
2,944

6 Trustees' remuneration and expenses

No trustees received any remuneration or expenses during the year.

Page 11

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

......... continued

7 Taxation

The registered charity is exempt from taxation on income and gains.

8 Investments held as fixed assets

Market value
As at 1 April 2025
Revaluation
Additions
Disposals
As at 31 March 2026
Net book value
As at 31 March 2026
As at 31 March 2025
All investment assets were held in the UK.
9
Debtors
Prepayments and accrued income
10
Creditors: Amounts falling due within one year
Accruals and deferred income
11
Related parties		 Listed
investments
£
1,886,784
242,529
394,497
(481,280)
2,042,530
2,042,530
1,886,784		 Cash deposits
£
57,267
-
434,770
(435,928)
56,109
56,109
57,267
2026
£
3,659
2026
£
5,706		 Total
£
1,944,051
242,529
829,267
(917,208)
2,098,639
2,098,639
1,944,051
2025
£
3,895
2025
£
5,474

Controlling entity

The charity is controlled by the trustees.

Page 12

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

12 Analysis of funds

General
Funds
Unrestricted
income fund
Permanent
Endowment
Permanent
endowment		 At 1 April
2025
£
13,846
1,945,907
1,959,753		 Incoming
resources
£
-
52,599
52,599		 Resources
expended
£
(146,249)
(9,982)
(156,231)		 Transfers
£
130,723
(130,723)
-		 Other
recognised
gains/losses
£
-
242,529
242,529		 At 31 March
2026
£
(1,680)
2,100,330
2,098,650

Permanent endowment funds - This represents funds of £1,550,000 originally received from both The Francis C Scott Charitable Trust and The Frieda Scott Charitable Trust under the Declaration of Trust dated 25 September 1997 ("the Trust Deed"). Under the terms of the Trust Deed any capital appreciation of the original total donation of £1,550,000 can, at the discretion of the trustees, be applied towards the objects of the charity.

Prior period

General
Funds
Unrestricted
income fund
Permanent
Endowment
Permanent
endowment		 At 1 April
2024
£
18,709
2,015,025
2,033,734		 Incoming
resources
£
-
50,070
50,070		 Resources
expended
£
(121,944)
(10,012)
(131,956)		 Transfers
£
117,081
(117,081)
234,162		 Other
recognised
gains/losses
£
-
7,905
7,905		 At 31 March
2025
£
13,846
1,945,907
1,959,753

13 Transfers

In order to conform with the trust's total return investment policy, a transfer of capital of £29,147 was made from permanent endowment to income in the year, along with £52,599 of investment income received in the year and £237 of accrued income and less £10,260 of income reinvested. There was a further transfer of £59,000 directly to Kendal Brewery Arts Centre Trust.

Page 13

The Brewery Arts Centre Endowment Trust

Notes to the Financial Statements for the Year Ended 31 March 2026

......... continued

14 Total return on investments

Total return on investments
At 1 April 2025
Movements in reporting period:
Investment income
Investment return: realised and unrealised
gains/losses
Less: investment management costs
Total
Unapplied total return allocated to income in the
reporting period
Net movements in reporting period
As at 31 March 2026		 Trust for
investment
1,550,000
-
-
-
-
-
-
1,550,000		 Unapplied
total return
395,907
52,599
242,529
(9,982)
285,146
(130,723)
154,423
550,330		 Total
endowment
1,945,907
52,599
242,529
(9,982)
285,146
(130,723)
154,423
2,100,330

15 Net assets by fund

Investments
Current assets
Creditors: Amounts falling due
within one year
Net assets
Prior period		 Unrestricted
Funds
£
-
1,453
(3,133)
(1,680)		 Endowment
Funds
£
2,098,639
4,264
(2,573)
2,100,330		 Total Funds
2026
£
2,098,639
5,717
(5,706)
2,098,650		 Total Funds
2025
£
1,944,051
21,176
(5,474)
1,959,753
Unrestricted
Funds
£
Investment
-
Current assets
16,791
Creditors: Amounts falling due within
one year
(2,945)
Net assets
13,846		 Endowment
Funds
£
1,944,051
4,385
(2,529)
1,945,907		 Total Funds
2025
£
1,944,051
21,176
(5,474)
1,959,753		 Total Funds
2024
£
2,013,980
24,723
(4,969)
2,033,734

Page 14