PAUL SMITH'S FOUNDATION
Registered Charity No: 1065751 Company No: 03346635
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30TH JUNE 2025
Paul Smith's Foundation Contents
| Page | |
|---|---|
| Trustees' Report | 1 - 5 |
| Independent Auditor's Report | 6 - 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Notes to the Financial Statements | 12 - 19 |
Paul Smith's Foundation Trustees' Report for the year ended 30 June 2025
The trustees present their report along with the financial statements of the Foundation for the year to 30th June 2025. The Foundation is a registered charity with the Charity Commission for England and Wales with registered charity number 1065751 and is a registered Company in England and Wales with Company number 03346635. The Foundation is constituted by its Memorandum and Articles of Association.
Trustees Sir Paul Smith Ashley Long (resigned 17 December 2025) Sean Baker James Horsley (resigned 17 December 2025) Mary Findlay (appointed 7 May 2025) Toby Monk (appointed 7 May 2025) Heather Sturdy (appointed 7 May 2025) Registered 20 Kean Street Office London England WC2B 4AS Bankers Yorkshire Bank Plc 11 Smithy Row Nottingham Auditor Moore Kingston Smith LLP Chartered Accountants 6th Floor 9 Appold Street London EC2A 2AP
Objects, Activities and Public Benefit
The objects of the Charity are to advance the education of the public in all matters concerning design, fine arts and design movement.
The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit including the guidance 'public benefit: running a charity (PB2).'
Appointment of new trustees
In May 2025, the Foundation announced the appointment of three new Trustees to support the Foundation. They are Toby Monk as Deputy Chair, Global Recruitment and Engagement Director at Development Trustee, Head of National Partnerships at TATE. Toby, Mary & Heather join existing Trustees, Sir Paul Smith and Sean Baker. With the new appointments, James Horsley and Ashley Long will step down as Trustees from September 2025.
The Foundation also appointed two members to the inaugural Development Committee, a sub-committee to the board.
1
Paul Smith's Foundation Trustees' Report for the year ended 30 June 2025
Achievements, Performance and Financial Review
Grant-giving
The programme of grants and donations in support of and for the furtherance of the objects of the charity has continued throughout the year. The Foundation now makes four grants annually to promising creative practitioners in visual arts and fashion design, through established partners including the Royal Academy Schools, Royal Drawing School, and British Fashion Council in London, and Fashanne in Nottingham. At present there are no plans to further increase the grant making programme.
During the year, the charity made grant payments and donations of £203,056 (2024: £48,493). All grants were given in support of and for the furtherance of the objects of the charity.
Programme
We took occupancy of Studio Smithfield to commence our flagship project, The Fashion Residency at Studio Smithfield. Established with the Mayor of London and Projekt, and supported by British GQ and the City of London Corporation, the programme includes a free studio space for 12-months at Studio Smithfield in Farringdon, accompanied by an accelerator programme of bespoke business mentoring. The mentoring programme includes group workshops and 1-to-2 sessions on the topics of Business Development, Legal, Finance, Trade and Production, E-com, PR & Marketing, Digital Media and Planning. Throughout the year over 80+ hours of business teaching was undertaken. The initiative has seen a sharp rise in the efficiency and productivity of each brand, some of whom quadrupled in turnover and quintupled in staff. Awareness of the initiative grew, with the programme being featured in British Vogue, Vogue Runway, ELLE and British GQ, with visitors including Lisa Nandy MP, Secretary of State for Culture, Media and Sport. To further support the business development of the designer Cohort, we held a pop up shopping event in December 2025, funded by Projekt and Paul Smith's Foundation giving opportunity to sell direct to the public.
Additional support in this programme included free use of the Paul Smith showroom in Paris (June 2025) for sales appointments during Paris Fashion Week, resulting in all showcasing designers securing new stockists.
Our legal mentoring partner, Osborne Clarke, donated 60 pro bono hours to the cohort in addition to the business lessons.
In December 2024 we extended the residency programme to 18 months, from 12, making the full-term June 2024-December 2025.This was decided on the basis that we wanted to ensure sustained and meaningful support where we are responsibly preparing the designers for market realities. We are grateful to the Mayor of London and Projekt for agreeing to the extension, and affording the group more time to
opportunity for artists working in painting and drawing which simultaneously took place in Tokyo, Hong Kong, London, Paris, New York and Los Angeles. One artist was selected in each city by a notable industry judge. Each made a new piece of work which was exhibited in their local Paul Smith store. In October, we celebrated the six winning artists of the inaugural art prize in an intimate dinner at Mount St. Restaurant. The dinner brought together a crowd of industry leaders based in London. Amongst them were Sir Paul Smith; Romain Guinier, CEO of Colart; Dr Nicholas Cullinan OBE, Director of The British Museum; artist Yinka Ilori MBE; Fabien Vallérian, Director of Art for Maison Ruinart; gallerist Maureen Paley; Sarah Douglas; Sarah Philp, Deputy Director of Delfina Foundation; artist Martha Freud, Charlene Prempeh and Lewis Dalton Gilbert, co-founders of A Vibe Called Tech; Alice Rawsthorn as well as the winning artists. In January 2025 we premiered, With Artists , a short film exploring the unique role that artists play in shaping our world, using self-submitted content from the 2024 winning artists and judges leading international art market publication.
2
Paul Smith's Foundation Trustees' Report for the year ended 30 June 2025
Achievements, Performance and Financial Review (continued)
my work, but to connect with so many incredible people in the art world. I know how vital these
In response to the budget cuts for the council in Nottinghamshire, Sir Paul Smith donated his time for two public talks at Nottingham Playhouse. 100% of the proceeds from the talks were donated to Nottingham Playhouse for them to use on their community and outreach programme.
The Foundation expanded the education programme in the Paul Smith archive, in partnership with talks to students on BA Fashion Design and BA Fashion Management.
The Foundation launched an addition to the programming, The Archive Residency. A biannual creative an industry professional. The resident artist will receive a grant of £5,000 and is given scope to freely create in response to their archival visits.
In order to effectively communicate the programme to supporters and alumni, the Foundation launched a newsletter and created a blog page on paulsmithsfoundation.org. Here, interested parties can stay up to date with happenings at the Foundation and with our alumni.
Investments Policy
The majority of investments are shares held in a range of private companies as analysed in Note 12 to the financial statements. The trustees have wide powers of investment in respect of the Foundation's assets.
The Foundation will invest in and hold assets that will:
- i. Directly promote of the Objects of the charity, and or; ii. Provide a long term investment return to maintain the reserves of the Charity.
The trustees ensure the Programme Related Investment (PRI) strategy is aligned with the charitable mission and objectives of the Foundation.
Grant Policy
The trustees review grant requests on a case-by-case basis in the light of the requested purpose of the grant. All grants are awarded in accordance with the objects which are to advance the education of the public in all matters concerning design, fine arts and design management.
3
Paul Smith's Foundation
Trustees' Report for the year ended 30 June 2025
Reserves Policy
The trustees aim to provide sufficient funds to cover the existing level of grants committed as well as provide a long term fund from which its charitable activities can be increased in the future. Total unrestricted funds at the year-end totalled £17,016,183 (2024: £19,239,227). During the year a loss on investments of £2,305,668 (2024: loss of £780,496) was recognised in respect of its investments in Paul Smith Group Holdings Limited and Floral Street Property Partners Limited.
Free reserves are described as those reserves, excluding fixed assets which are readily available for use in the operations of the charity. At year end, unrestricted free reserves totalled £217,073 (2024: £201,202). The trustees consider the level of free reserves sufficient to fund its grant programme and cover any unplanned expenditure.
Key management and remuneration policy
The trustees are not remunerated.
The Foundation historically had no employees of its own. Two new employees were hired in the year ending 30 June 2025. They are employed by Paul Smith Limited with costs recharged to the Foundation.
Principle risks and uncertainties
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the investments, operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate the exposure to the major risks.
Statement of Trustees' Responsibilities
The trustees (who are also directors of the Paul Smith Foundation) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the Trust for that period. In preparing these financial statements, the trustees are required to:
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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 Trust will continue in business.
The trustees are responsible for keeping proper accounting records that 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 Company Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement as to disclosure to our auditors
Each of the Trustees confirms that:
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So far as the Trustee is aware, there is no relevant audit information of which the charitable
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The Trustee has taken all the steps that they ought to have taken as a trustee in order to make auditor is aware of that information.
4
Paul Smith's Foundation Trustees' Report for the year ended 30 June 2025
Small Company Provisions
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
On behalf of the Trustees
Toby Monk (Trustee) Date:
5
Indpendent Auditor's Report to the Trustees of Paul Smith's Foundation
Opinion
We have audited the financial statements of Paul Smith's Foundation for the year ended 30th June 2025, which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their
Accounting Practice).
In our opinion the financial statements:
· incoming resources and application of resources, including its income and expenditure, for the year then ended;
· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, 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
accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
6
Indpendent Auditor's Report to the Trustees of Paul Smith's Foundation
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit
prepared is consistent with the financial statements; and
Other Matter
The corresponding figures in the financial statements of Paul Smith's Foundation were not audited as the Charity did not require a statutory audit under Companies Act 2006 or Charities Act 2011 in the prior year.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
· the charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
or
· we have not received all the information and explanations we require for our audit; or
· the trustees were not entitled to prepare the financial statements in accordance with the small companies from preparing a strategic report.
Responsibilities of trustees
the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
7
Indpendent Auditor's Report to the Trustees of Paul Smith's Foundation
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are conditions may cause the charitable company to cease to continue as a going concern.
· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
· We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
· We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
· We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
· We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
8
Indpendent Auditor's Report to the Trustees of Paul Smith's Foundation
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)
· Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the
Adam Fullerton, FCA, DChA (Senior Statutory Auditor) For and on behalf of Moore Kingston Smith LLP, Statutory Auditor
6th Floor 9 Appold Street London, EC2A 2AP
Date: 27 March 2026
9
Paul Smith's Foundation Statement of Financial Activities For the year ended 30 June 2025
| Note Income from: Donations 2 Investment income 3 Total Expenditure on: Charitable Activities 4 Total Net (loss)/gain on investments 12 Net movement in funds Total funds brought forward Total funds carried forward |
2025 Unrestricted £ 100,000 323,376 423,376 228,252 228,252 (2,305,668) (2,110,544) 19,239,227 17,128,683 |
2024 Unrestricted £ - 159,641 |
|---|---|---|
| 159,641 | ||
| 299,414 | ||
| 299,414 | ||
| (780,496) | ||
| (920,269) 20,159,496 |
||
| 19,239,227 |
The notes on pages 12 to 19 form part of the financial statements.
10
Paul Smith's Foundation Balance Sheet as at 30 June 2025
| 2025 | 2025 | 2024 | 2024 | ||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed Assets | |||||
| Investments | 12 | 16,850,640 | 19,156,308 | ||
| Current Assets | |||||
| Cash at bank | 217,073 | 201,202 | |||
| Debtors | 13 | 135,059 | 19,106 | ||
| 352,132 | 220,308 | ||||
| Creditors:Amounts falling due | |||||
| within one year | 14 | (74,089) | (137,389) | ||
| (74,089) | (137,389) | ||||
| Net Current Assets | 278,043 | 82,919 | |||
| Total Assets less current liabilities | 17,128,683 | 19,239,227 | |||
| Total Net Assets | 17,128,683 | 19,239,227 | |||
| Funds | |||||
| Unrestricted Funds | 17,128,683 | 19,239,227 |
The notes on pages 12 to 19 form part of the financial statements.
The accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of the Financial Reporting Standard 102.
The accounts were approved by the board and authorised for issue on and signed on its behalf by:
Trustee - Toby Monk
Company number: 03346635
11
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
1 Accounting policies
Basis of accounting
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and therefore the charitable company also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. The principal accounting policies adopted in the preparation of the financial statements are set out below.
Going Concern Basis
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered dividend income and the valuation of the investment portfolio and income generation from the fund. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
Income
Income is credited to the Statement of Financial Activities on an accruals basis when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donated investments are valued at their market value on the date of transaction. Investment income and bank interest are accounted for on a receivable basis.
Expenditure
Expenditure is charged on an accruals basis. Grants payable are included in the Statement of Financial Activities when approved by trustees and offered to the grantee. Support costs have been apportioned across expenditure relating to charitable activities.
Investments
In valuing investments the trustees have had due regard to Section 11 Paragraph 17 of the SORP. Investments are accounted at their fair value. Those unlisted investments for where fair value cannot be established using a valuation technique are accounted at cost. Investments are reviewed each year for impairment with any write off included in the Statement of Financial Activities. Realised and unrealised gains and losses on investments are included within the funds.
12
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
1 Accounting policies (continued)
Creditors
Contractual arrangements are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises.
Governance costs
advisors and any other expenditure related to governance or the strategic direction of the charity.
Unrestricted funds
These resources arise from unrestricted purposes and from accumulated surpluses and deficits in the operations for charitable purposes and are expendable at the discretion of the Trustees.
Intangible fixed assets
The amortisation policy is as follows:
Website 5 years straight line
Cash and Cash Equivalents
Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102.
Critical accounting estimates and areas of judgement
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a. Impairment and Valuation of Fixed Asset Investments
The trustees have reviewed the appropriateness of methods used in valuing the unlisted shares of the Company's investments. The trustees believe the investment value is supported by the underlying assets held in the companies of those shares.
Investments are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the SOFA.
13
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
| 2 Donation income Donations 3 Investment income Investment Income - Dividends received - FS 1979 Ltd Investment Income - 9 St Thomas Street Bank interest |
2025 £ 100,000 2025 £ 283,623 36,420 3,333 323,376 |
2024 £ - |
|---|---|---|
| 2024 £ 133,206 21,129 5,306 |
||
| 159,641 |
4 Charitable activities
| Grants & donations - note 5 Archive costs - note 6 Total Grants & donations - note 5 Archive costs - note 6 Total |
Direct charitable expenditure 73,913 9,691 83,604 Direct charitable expenditure 38,000 196,626 234,626 |
Allocation of support costs - note 7 129,143 15,505 144,648 Allocation of support costs - note 7 10,493 54,295 64,788 2025 2024 |
Total 203,056 25,196 |
|---|---|---|---|
| 228,252 | |||
| Total 48,493 250,921 |
|||
| 299,414 |
In 2025 and 2024, support costs have been allocated across the charitable expenditure streams based on total costs.
| 5 Grants & donations British Fashion Council Royal Academy of Arts The Royal Drawing School Fashanne Other grants awarded |
2025 £ 10,000 25,000 - 5,000 33,913 73,913 |
2024 £ 10,000 25,000 3,000 - - |
|---|---|---|
| 38,000 |
14
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
| 6 Archive costs Costs incurred organising and auditing Paul Smith's archive for use by the foundation 7 Support costs Salaries and wages Insurance Website expenditure Legal Services Digital advertising costs Governance costs - note 8 Bank charges Other expenses 8 Governance costs Independent Auditor fees - current year Independent Auditor fees (other) - current year Independent examiner fees - prior year Independent examiner fees - prior year under accrual Accounting services |
2025 £ 9,691 2025 £ 103,083 3,805 4,769 - 1,605 18,100 83 13,203 144,648 2025 £ 17,000 1,100 - - - 18,100 |
2024 £ 196,626 |
|---|---|---|
| 2024 £ - 4,760 - 12,000 4,651 43,364 13 - |
||
| 64,788 | ||
| 2024 £ - - 8,356 3,252 31,756 |
||
| 43,364 |
9 Transactions with Trustees
No trustee received any remuneration for services as a trustee (2024: £Nil), nor any reimbursement of expenditure (2024: £Nil).
10 Employees
The Foundation does not employ any staff. Two staff (2024: nil) that are employed by Paul Smith Limited have their time re-charged to the Foundation as they work on its activities. The total re-charge for the year was £103,083 (2024: £nil)
11 Taxation
The Foundation has suffered no tax charge, as it is not subject to UK corporation tax on its charitable activities.
16
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
| 12 Investments Fair value at 1st July Additions/(disposals) in the year (Loss)/gain on investments Fair value at 30th June |
Unlisted 2025 £ 19,156,308 - (2,305,668) 16,850,640 |
Unlisted 2024 £ 19,936,804 - (780,496) |
|---|---|---|
| 19,156,308 |
Historical cost as at 30th June 2025: All investments were gifted to the Foundation so had no cost.
At 30th June 2025 the following investment holdings represent 5% or more of the fair value of the total portfolio:
| total portfolio: | ||
|---|---|---|
| Share class | Shareholding | Country of |
| incorporation | ||
| Floral Street 1979 Limited 140 Ordinary C shares |
14.00% | England & Wales |
| Paul Smith Group Holdings Ltd 5,043 Ordinary A shares | 13.72% | England & Wales |
| Partnership - 9 St Thomas StreeNot applicable | 11.24% | Unincorporated |
Detailed breakdown of investments
| Detailed breakdown of investments | ||
|---|---|---|
| Floral Street 1979 Ltd Paul Smith Group Holdings Ltd Partnership - 9 St Thomas Street |
Fair Value Total 2025 £ 8,578,835 7,090,827 1,180,978 16,850,640 |
Fair Value Total 2024 £ 8,578,846 9,396,484 1,180,978 |
| 19,156,308 |
Market risks
that the Foundation invests in; there is no direct exposure to general market risks. The specific markets include Paul Smith Group Holdings Limited who operate in the luxury fashion retail and wholesale markets, and Floral Street 1979 Limited in property investment. The fashion wholesale and retail and market has continued to face significant challenges since Covid, but not to the extent that it would challenge the carrying value of the investment in the accounts. The property company is portfolio has a limited direct exposure to general market performance and instead is impacted by specific market performance.
directly promote the objects and profile of the charity or provide a long-term investment return for the charity. Sir Paul Smith, as a Trustee and Ambassador for the charity, has direct interest and influence in managing the risk of the investments. The charity is also currently recruiting new independent trustees.
The Foundation acquired its shares in Paul Smith Group Holdings Limited and Floral Street 1979 alongside Sir Paul Smith, the purchase and restoration of the 9 St Thomas Street building as a longterm investment.
The Foundation's investments are considered reasonably liquid as Itochu Corporation or Sir Paul Smith could acquire the shares in Paul Smith Group Holdings Limited at any time if required.
17
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
12 Investments (continued)
Currency risks
currency risk.
Credit risks
Management is not aware of any further credit risks and therefore further disclosure is not required.
| 13 Debtors Prepayments and other debtors Accrued Investment Income - 9 St Thomas Street Dividend receivable 14 Creditors: amounts falling due within one year Accruals Other creditors |
2025 £ 1,049 21,510 112,500 135,059 2025 £ 73,349 740 74,089 |
2024 £ 9,977 9,129 - |
|---|---|---|
| 19,106 | ||
| 2024 £ 137,389 - |
||
| 137,389 |
15 Financial and capital commitments
The Foundation has no outstanding financial or capital commitments.
16 Related parties
The charity held the following investments at year end in which Paul Smith (and his wife), a trustee of Paul Smith's Foundation has an interest; Floral Street 1979 Limited, 9 St Thomas Street Partnership & Paul Smith Group Holdings Limited.
During the year, trustees donated £100,000 (2024: £nil) to the Foundation.
During the year, the Foundation recognised dividend income of £283,623 from Floral Street 1979 Limited (2024: £133,206) of which £112,500 (2024: £nil) was outstanding at year-end, and £36,420 (2024: £21,129) from 9 St Thomas Street partnership.
Included within other creditors is a balance of £140 (2024: £140) due to Paul Smith Limited in which a number of trustees of the Paul Smith's Foundation are also directors of Paul Smith Limited.
Included in other creditors is a balance of £600 (2024: £600) owed to Paul Smith, a trustee of Paul Smith's Foundation
18
Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2025
| 17 Statement of movement on reserves Reserves brought forward (Deficit)/surplus for the year Reserves carried forward |
2025 £ 19,239,227 (2,110,544) 17,128,683 |
2024 £ 20,159,496 (920,269) |
|---|---|---|
| 19,239,227 |
The charity's reserves consists of unrestricted general reserves only.
19