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2025-12-31-accounts

REGISTERED COMPANY NUMBER: 03490480 (England and Wales) REGISTERED CHARITY NUMBER: 1070073

Report of the Trustees and

Financial Statements

for the Year Ended 31 December 2025

for

HAY FESTIVAL FOUNDATION LIMITED

HAY FESTIVAL FOUNDATION LIMITED

Contents of the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2025

Page
Chair's Report 1
CEO Report 2
Report of the Trustees 3 to 10
Report of the Independent Auditors 11 to 13
Statement of Financial Activities 13
Balance Sheet 15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18 to 31
Detailed Statement of Financial Activities 32 to 33

HAY FESTIVAL FOUNDATION UMITED Chalr's R8POrt FOR THEYEAR ENDED 31 DECEM8ER2025 At a time when public discoufse can feel incfeawgty p(Aansed arxl Unr￿rta￿. the role of cuttural Insiilulions thal bring people together around lileratuo. thas. ¢rÈaiwity and dial()3ue has nevw I)e￿ more mportanl. Hay festival Global continues lo demonstraie ihe valu8 of OFeTh oJltuTal e1th3￿. ¢reatiNJ spaces where dwet5e votes ¢an meet, debale and imagine new p)ssibililies. This year has been mafkeij by both global change and growng demand for thoughllul ciwc ¢onversat10n Against thi5 backdrop. Hay Festival's mls5￿￿n-1O create accessib￿ platform5 for the exthange of ￿&as-rernaIfts as re￿vant a$ ever. Through It$ festivals, karnirvj programmes an(J InlemalK)nal pattr)erships, lh6 organisation continues io provid& OppOrtun￿e$ lor audiences to 8ngage with Iiteralure ol nwl pre5sirvJ OIlKal, soual and environmental questions of our bn. Froffl Ils origin$ In ts book town ol HaY-on-￿e nearty ffmji ago. Hay Festwal has grown into an International cultural ne￿ork 8pannin9 fflUtt1p￿ conliDen15 Imat rema￿￿ cor6tant, h¢y￿er, 15 the $pnl thai first animated the Festival curiosity, InlelbGluHI ￿lI￿ros11Y and Ihe belKl that stone5 arvj thas can brirKJ people together across bDfd&r8 and per$p8clivas. The tharity'5 International pro9ramme now corsnects cotrxnunltlos across the world. ciealitvJ meaniwlul cultural exch￿9& ￿$￿een local aud￿n¢88 and inlemational vo Alon9$th this international 9rowth, Ihe Tr￿￿te¢S remBin partulaity pro￿ 01 th8 organisal￿n'S cornmitftni to l￿dening participatson in cultuw Through 118& schools progrwTWrnS. youlh iftthatN8S 8TrJ partnerships wilh libraries. comrnunrtie5 and e(lucation pro¥Klers, Hay Feslwal contsnues w ensure that young ano thos8 who mvjht not olhetW150 have a¢c8s5 to cultural OppOrtunrt￿ can tske part Th8se acIMt￿ l ai of ts charty's wblic benefit and refi8Ct it8 long-standing con￿ltment to education ojltural indusion. The Trustees 8150 fecognisa Ihe mportance of ertsvriry that Ihe ooanisaiion continues to cper818 rasponsibly 8n<J sustainably Hay Festival's work on envifonrrnlal SU51ainalylity, 9overnanrA 8ThJ Iin8n(Jal resilience ￿f￿?Cts commitry￿1 not orty lo de11¥8nry exceplional cullur81 wgiammès, but to d(xNJ so ￿ a way Ihai supp)rt5 lon9-10rm public value On beb811 of the Board of Trust•&¥, I wouhj lik8 to thonk the 18am lor ttthr dathaiiw aTrJ i aho w8nl to Ihank the artists, partners, luthrs and support8r5 whose gerwosity makes t￿8 work possible Most Import8nUy. we thank our aud1en¢e$-wh08e Cu￿Sty and enlhuyasm $usioin Ihe Hay Fas￿Val and affirm the eTrJunng Thwrtance of $hafed cultural experienc8J. As w• look to the future, the Twstses rem*n ¢onfNlenl in Hay F88tNaf$ abilrty to c4nts.n￿ evofving bvhilo remainin9 tru8 to its fOund￿n9 pufFose.' eioaiing space$ whwe ￿ can fltyJri%h, ¢8n Ihri¥e, aTrJ StLY￿S can Wp shape a mor8 conn8Cted and Ihoughiful wohj Jacquellno Hunt Chair of TIu51ee5 Page 1

HAY FESTIVAL FOUNDATION LIMITED

CEO Report FOR THE YEAR ENDED 31 DECEMBER 2025

This year has been one of huge energy, creativity and exchange for Hay Festival Global. In a time when the pace of change in our world continues to accelerate, our festivals and programmes have provided vital spaces for conversation, creativity and connection. Across the UK and internationally, we have brought together writers, thinkers, artists and audiences to explore the ideas shaping our times—demonstrating the enduring power of storytelling to inspire understanding, hope and action.

At the heart of our work remains Hay Festival Hay-on-Wye, our flagship event and founding festival, which returned for its 38th year with an ambitious programme of 647 events over 11 days, featuring 729 artists and welcoming audiences from across the UK and around the world. Nearly 200,000 tickets were sold, reflecting the continued appetite for thoughtful cultural exchange and live conversation. Across the programme we explored urgent global themes—from artificial intelligence and political change to climate, health and intergenerational dialogue—while also celebrating the joy of storytelling through literature, music, comedy and performance.

Alongside headline authors and thinkers, the Festival continued to nurture new voices through initiatives including Debut Discoveries, Writers at Work, and The Platform, ensuring emerging artists and writers are given opportunities to develop their work and connect with audiences. New programme strands such as Sports Day, Hay Festival Green, and international collaborations including South to North conversations and partnerships with Lviv BookForum highlighted the breadth and ambition of our programming.

Our charitable mission—to open doors to cultural exchange—remains central to everything we do. This year 6,725 pupils and 522 teachers attended our free Schools Programme in person, with a further 2,804 students joining online, ensuring that young people from across the UK can engage directly with authors and ideas. Our wider education and outreach work continued through programmes such as Scribblers Cymru and Scribblers Cymraeg, the Hay Festival Academy, and creative residencies and youth engagement projects across Wales and the West Midlands.

Internationally, Hay Festival Global continues to grow as a network of festivals connecting audiences across continents. This year we delivered festivals and forums in Colombia, Mexico, Peru, Spain, Kenya, Ukraine and the United States, bringing together diverse perspectives to address shared global challenges. In total, our global activity delivered 1,585 events with 1,955 artists, reaching hundreds of thousands of attendees and engaging millions more through digital platforms.

Digital engagement also played a vital role in expanding access. Across our channels we generated more than 122 million social media impressions, while our websites welcomed 1.3 million users viewing 8.6 million pages. Partnerships with media organisations and digital platforms enabled festival conversations to reach global audiences, while library livestreaming and online programming ensured those unable to attend in person could still participate.

Sustainability remained a core priority throughout the year, both in our programming—through the Hay Festival Green strand—and in the practical delivery of our events. From renewable energy use and responsible waste management to supporting sustainable travel and reducing environmental impact across our sites, we continue to work towards making Hay Festival an environmentally responsible cultural organisation.

None of this work would be possible without the generosity and collaboration of our partners, funders, sponsors, artists, volunteers and supporters. I extend my sincere thanks to all those who make Hay Festival possible—from the audiences who bring curiosity and enthusiasm to every event, to the dedicated team and trustees whose commitment sustains our mission.

As we look ahead, we remain committed to creating welcoming civic spaces for dialogue, imagination and creativity— places where stories can challenge, inspire and bring people together across borders and perspectives.

Julie Finch Chief Executive Hay Festival Global

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

OBJECTIVES AND ACTIVITIES

Hay Festival Global is a charity providing festivals of stories, ideas and new possibilities, creating open and accessible platforms for the free exchange of ideas. Our objectives are to advance education and promote cultural exchange by bringing diverse voices together to listen, debate and create, tackling major political, social and environmental challenges through literature and the arts.

During the year we delivered:

PUBLIC BENEFIT STATEMENT

The Trustees confirm that they have had due regard to the Charity Commission’s public benefit guidance when reviewing the charity’s aims and planning activities. Public benefit is delivered through:

YEAR IN REVIEW

Over the past twelve months, our work reflected the pace of change in the world and the high stakes for our times. Through festivals and year-round initiatives, we presented programmes designed to tackle shared challenges with purpose and hope— celebrating new ideas and the power of storytelling to improve lives. Themes explored included the impacts of AI, health and wellbeing, new political orders and intergenerational exchange. As we marked 20 years since our first overseas event, we strengthened international collaboration and exchange through expanded platforms and partnerships.

ACHIEVEMENTS AND PERFORMANCE

UK and international – key outputs and reach (Global) This activity resulted in:

UK – HAY FESTIVAL HAY-ON-WYE AND UK PROGRAMMES

Overview

Hay Festival’s UK activity centres on Hay Festival Hay-on-Wye, delivered for the 38th year. The festival brings together writers, artists, journalists, scientists and policymakers to share stories and debate global challenges through literature and culture. Alongside the live festival programme, our UK work extends year-round through education initiatives, community programmes, creative development activity and digital platforms that engage audiences locally and globally.

Hay Festival Hay-on-Wye 2025 – Outputs and Audience

In numbers:

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

Programme and Culture Impact

Hay Festival 2025 offered something for everyone. Across 647 events, the programme launched major new fiction and nonfiction, provoked debate, and platformed solutions to the biggest issues of our time. There was world-class comedy and music, alongside pop-up events, workshops and activities for all ages. The free-to-enter Festival village supported access and participation beyond ticketed events, with upgraded public spaces including a MUBI cinema.

Key programme strands and initiatives

EDUCATION, OUTREACH AND WIDENING ACCESS

Our learning, education and outreach activity remained at the heart of our charitable mission. We focused on widening access for children and young people, supporting literacy and creative expression, and ensuring equitable participation for communities least likely to access cultural opportunities.

Free Schools programme (Hay-on-Wye)

The first two days of Hay Festival 2025 were dedicated Schools Days, offered free to all state schools and blending fiction and non-fiction events with inspiring live performances.

Outputs :

Early Years Programme (Hay Festival Education)

Our Early Years project brought creative practitioners into schools and welcomed pupils from Herefordshire, Worcestershire and Shropshire to Hay Festival, where they actively took part in storytelling and creative activities.

Outputs :

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

St Thomas Cantilupe Residency (Hereford)

As part of Hay Festival Communities, we delivered the third consecutive year of work with St Thomas Cantilupe Primary School. Five creatives worked with cross-age groups (200 children from Reception to Year 6) to create a promenade festival/performance shared with families and the wider school community. The residency celebrated the linguistic diversity within the school community and demonstrated impact on literacy, creativity, confidence and parental engagement.

Free Youth Group Trips (Herefordshire)

Outputs:

Free Library Events (Living Knowledge Network)

To widen access for those unable to travel, public libraries across the UK hosted free livestream screenings of Hay Festival events, supporting community participation through shared cultural experiences in local civic spaces.

Emerging Writers and Creative Development

We supported emerging voices through structured programmes that provided mentorship, professional development and performance opportunities:

Scribblers Programmes (Wales)

Scribblers Tour (Wales) brought award-winning YA authors into secondary schools, reaching 1,985 Year 7–10 pupils through workshops and author talks.

Scribblers Cymraeg delivered Welsh-language creative writing workshops for 968 pupils in Years 7–9 , hosted at universities including Bangor, Aberystwyth, Swansea, Cardiff and Wrexham, supporting creative expression in the Welsh language.

Winter Weekend Schools Programme

At Winter Weekend we delivered free events and workshops for 500 Early Years and KS1 pupils from Blaenau Gwent, reinforcing our commitment to equitable access.

After Hours took the spirit of the Hay Festival beyond its traditional setting, bringing a dynamic evening programme of conversations and performances to new audiences across the UK. Hosted in iconic venues including the Old Rep Theatre, Birmingham, Bristol Beacon, Bristol and Wales Millennium Centre, Cardiff, After Hours offered audiences a lively evening of creativity and ideas that define the wider festival.

DIGITAL ACCESS, AUDIENCES AND COMMUNICATIONS

Digital programming and communications extended our reach and widened access:

SUSTAINABILITY AND ENVIRONMENTAL RESPONSIBILITY

Sustainability is core to Hay Festival Global, both on stage and operationally. We delivered:

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

GLOBAL FESTIVALS

Beyond the UK, Hay Festival Global produces festivals and collaborations across Europe, Africa and the Americas, each rooted in local context while connected through international exchange.

Colombia — Hay Festival Colombia

Key stats : 11 days | 233 events | 202 speakers | 78,156 attendees

A multi-city programme spanning Jericó, Medellín, Cartagena de Indias and Barranquilla, exploring democracy, journalism, literature, environment and social justice, with strong educational and youth participation.

Key guests: Salman Rushdie, Leila Guerriero, Viet Thanh Nguyen, Cristina Rivera Garza, Rafael Yuste, Anne Applebaum, Gioconda Belli, Juan Gabriel Vásquez and Justin Torres.

Mexico — Hay Festival Querétaro

Key stats : 4 days | 131 events | 179 speakers | 29,488 attendees

A tenth anniversary edition celebrating a decade of cultural partnership, combining international voices with leading Mexican writers and thinkers across literature, politics, science and culture.

Key guests: Carmen Aristegui, Juan Villoro, Julieta Fierro, Deborah Levy, Piedad Bonnett, John Valliant, Pankaj Mishra, Kevin Johansen, Rebecca Makkai and Valeria Luiselli,

Peru — Hay Festival Arequipa

Key stats : 4 days | 115 events | 149 speakers | 36,334 attendees

A programme bringing together Latin American and international voices across literature, journalism, politics and the arts, supported by digital participation to widen access.

Key guests: Hector Abad, Juan Gabriél Vásquez, Patricia del Rio, Darío Sztajnszrajber, Susan Neiman, Jeremias Gamboa, Rafia Zakaria and Maria Galindo.

Spain — Hay Festival Segovia

Key stats : 4 days | 63 events | 95 speakers | 12,000 attendees | 40 hours live-streamed

A twentieth anniversary edition delivering multidisciplinary debate and performance exploring the future of Europe, with expanded reach through livestreaming.

Key guests: Enrico Letta, Josep Borrell, Mariana Enriquez, A C Grayling, Dolores Redondo, Javier Cercas, Maria Dueñas, David Rieff, Andrea Marcolongo y David Uclés.

Kenya — Hay Festival Nairobi LitFest

Key stats : 4 days | 53 events | 60+ speakers

Delivered with Book Bunk across three historic public libraries, creating a community-rooted programme celebrating literature and storytelling in accessible civic spaces.

Key guests: Ayanna Lloyd Banwo, Astrid Madimba, Chinny Ukata, Dipo Faloyin, Aditi Mittal, Velia Vidal, Leila Slimani, In Koli Jean Bofane and Joe Sacco

Ukraine — Hay Festival x Lviv BookForum

Key stats : 4 days | 5 events | 13 speakers | 558,600 online views

Delivered primarily online for safety and accessibility, providing an international platform for Ukrainian writers and thinkers and supporting global participation in Ukrainian literature.

Key digital guests: Stephen Fry, Hisham Matar, Elif Shafak, Bernardine Evaristo, Olga Tokarczuk, Sofiia Andrukhovych and Colm Toibín.

USA — Hay Festival Forum Dallas

Key stats : 3 days | 30 events | 25 speakers | 3,406 attendees

Delivered across venues in the Bishop Arts District, bringing Hay Festival’s model of cultural debate and storytelling to US audiences, including participatory book-club-style events.

Key guests: Junot Diaz, Claudia Rankine, Jason de León, Laila Lalami, Angela Saini, Suraj Yengde, Joe Sacco, Katie Kitamura, Gabriela Cabezón Cámara and Brendan Canty.

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

PLANS FOR THE COMING YEAR

In the coming year, Hay Festival Global will continue to:

Hay Festival Foundation Strategy 2027-2030 will be finalised during 2026. This will encompass ambitions to increase reach and impact for beneficiaries. Our primary areas of development include:

Hay Festival 40 - celebrating 40 years of operation in 2027 across our creative programme and events in the UK and internationally, in the longer term we will look at acquiring a new site for the Home of Hay Festival.

International - our focus is to expand our audience reach and artist engagement in new territories.

Digital - building on our excellent digital progress, we will identify ways of engaging with new audiences globally.

Audience Engagement off site - Afterhours and our community engagement programme provide new audiences with opportunities to engage in their place, we plan to extend our programme of activity.

Financial Sustainability - Our income from the public is critical to the charity, for its continuation and development. Our focus will be to enhance public experiences as they encounter events, and to build our fundraising capacity.

FINANCIAL REVIEW AND FUNDING MODEL

Hay Festival Global operates a mixed-income model including ticket revenue, commercial income, memberships, donations, sponsorship and public funding. This model enables the charity to deliver large-scale public programmes while sustaining year-round education, outreach and widening access activity.

The Statement of Financial Activity reports total income of £6,883,201 (2024: £6,356,201) and total expenditure of £6,377,421(2024: £5,969,965). Overall, an unrestricted surplus is reported of £421,196 (2024: £42,965) and a restricted fund surplus of £84,584 (2024: £352,807). Total funds carried forward to 2025 are £1,675,313 (2024: £1,169,533).

Principal funding sources

The Foundation generates income from several sources. Direct festival income is raised through ticket sales, sales of books and merchandise, exhibitor fees, corporate sponsorship, and other activities. The Foundation also receives service fees for its work in overseeing its international festivals as well as grants for specific projects and educational activity. All income, both direct income generated and indirect financial support, aids the running of the festival and helping the Foundation achieve its objectives.

Reserves policy

The trustees have set a policy which requires that reserves be maintained at a level that ensures the charity's core activity could continue during a period of unforeseen difficulty and that a proportion of reserves be maintained in a readily realisable form. The trustees consider readily realisable reserves to be the amount of reserves that are easily converted to cash should the need arise. The calculation of the required level of reserves is an integral part of the charity's planning, budget and forecast cycle. It considers the risks associated with each stream of income and expenditure being different from that budgeted; the planned activity level; and the charity's commitments.

The trustees assess the reserves policy and review it during the year. They discuss the readily realisable reserves against the charity's commitments. The main risks to both income and expenditure are highlighted and a calculation of the possible financial consequences of adverse movements made. The trustees use this information to ensure an adequate level of readily realisable reserves is held.

The reserves policy will be reviewed every year, at a minimum, by the Finance Committee, or sooner if warranted by internal or external events or changes. Significant changes to the policy will be recommended by the Finance Committee to the Board for approval.

Currently the optimum level of free reserves is six months of core operating expenditure, which would be £1,105,000 (2024: £660,000).

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

At 31 December 2025, the charity held unrestricted funds of £867,971 (2024: £446,775). After accounting for those funds tied up in fixed assets of £11,252, and those designated for the VAT liability, the charity's free reserves amount to £736,719 (2024: £431,422). Whilst this is less than the optimum level of £1,105,000 the trustees are satisfied that the current reserves held are sufficient to support the organisation in the short term and will strive to build these back to optimal level over the coming years. A financial strategy of prudence and care is being pursued to ensure the safeguarding of the charity’s unrestricted reserves to support the ongoing sustainability of the organisation.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is registered as a charitable company, limited by guarantee. The governing documents are its Memorandum and Articles of Association, as amended by special resolution dated 10 December 2021, updated to reflect current legislation and best practice.

Recruitment and appointment of new trustees

The management of the charitable company is the responsibility of the trustees, who are elected and co-opted under the terms of the Articles of Association. The selection and recruitment of new trustees is the responsibility of the full Board. New trustees are proactively recruited to meet any skills gaps as identified by the Board.

Financial Review and Funding Model

Hay Festival Global operates a mixed-income model including ticket revenue, commercial income, memberships, donations, sponsorship and public funding. This model enables the charity to deliver large-scale public programmes while sustaining year-round education, outreach and widening access activity. (Detailed income and expenditure analysis is provided in the financial statements).

Appreciation and Thanks

The Trustees record their thanks to our partners, trusts and foundations, sponsors, media partners, artists, volunteers and— above all—our audiences, Members, Patrons, Benefactors and Chair’s Circle. Their commitment and generosity enable Hay Festival Global to open doors to cultural exchange in the UK and around the world.

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HAY FESTIVAL FOUNDATION LIMITED

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and training of new trustees

Each new trustee receives an induction pack setting out their legal obligations under charity and company law, the content of the memorandum and articles of association and copies of minutes of recent meetings. New trustees are also given a briefing on the work of the Board and any individual projects as part of their induction. When appropriate, training sessions are open to Board members where the training is considered useful to their role.

Related parties and trustees

Trustees are permitted to claim for their participation in the festival. Fees are agreed in advance and in accordance with our standard commercial artist fee structure and contracting. No fees were claimed during the financial year or prior year.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The trustees intend to continue to continually review the risk management policy for the charity into 2026.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

03490480 (England and Wales)

Registered Charity number 1070073

Registered office

Festival Office 25 Lion Street Hay On Wye Powys HR3 5AD

Trustees

Trustees
J Hunt Chair Appointed 01.01.25
V Bejarano De La Torre
S A Stewart
A P Followell
C Albert
N J Butler
D A Olusoga
S F Khan
E J Shedd
Dame E Closs Stephens
P A Bunt Appointed 29.08.25
M J Crosbie Appointed 11.03.26
The following trustees resigned from the board:
P J Sands Resigned 01.01.25
J G Davies Resigned 01.01.25
C J Michel Chair until resignation Resigned 01.01.25
R M Boycott Resigned 01.01.25

Auditors

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

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HAY FESTIVAL FOUNDATK)N LIMITED Report of th8 Trvslee5 FOR THE YEAR ENDED 31 DECEMBER 2025 STATEMENT OF TRUSTEES. RESPONSIBILITIES ThÈ Iruslees (who also the direclot5 01 Hay Festival Fovndalion Limi1￿ f(K Ihe purposes tsf Company lawl are respon51ble fof prepariry the Annual Report and the fiTranckql stslerTEnts In accordance wilh applicabk law an¢J Uniled Kingdom Accounting Sta[￿ards (Untted Generalty Accepted A¢(thJn￿"ng Pr3Lliol Including FRS102 'ThB Financial Reportiry Standard applicablp In Ihe UK aTrJ Republic of Irela￿1.. CorDpany Lgw requife5 the trustees to preparefinancial stalement5 foreath financial year Ut)der cTrmpany law Ihe trJ51ees tnusl not approve thÈ Iinanaal sla18rneDlS un￿5 Ihey are satI5r￿ that Ihey 9we a true and fair of the slate of affairs of the charitable company and of Il Incomir¥J resour￿ and application of iesources, Ind￿lIng th8 Incoffle and expenditure, of the charitable company lor Ihal kErwyJ. In preparing those finawal staternent5. IhÈ trustees are reouired to". select suitable aceounling polirie5 a￿j then awy them cor6istenity: observe th8 methojs a￿j princip￿$ In Ihe Charity SORP". jud9cnicnls and oBtimatÈB that gr9 r•asonabl• and WLtht". Slate whetlr applicable accounting standards, compnsng FRS102 h8V8 t¢en lollow&1. suect to any mater41 departurès discbsed and explained In the financial siatèments", and prepare the Iinanoal statements on thè gom9 ￿l￿Arn ba51s unkss rt ￿ inapprcynate lo prestjm? thal th& tharitsbb company will conlinu8 irs bu51r￿ss. The Iru51ees are re5pon5th￿ for keepiThJ pryr accounlmg re￿8 whKh dbsdose wth reasonab￿ accuracy al any time the Iinancial position olthe chalilab￿ company toenab18 them to ensure Ihat lh8 finanaal stalen￿nts cornply with th8 CrynDan￿5 Ac12(Xb. They are also reskX)nsib￿ kn safeguarding Ihe 8ssels oflhe chantablecorrpany and henrA foit8kNJ r8asonalJe stsps for Ihe pievenbon and detectK)Th of fraud and olh8w Irregularitse8. In so far 85 the tNsiees are aware Ihere ￿ no re18v8ni audil Infoimalion of Wth￿h the ¢hanlabk8 company's audilor5 8T8 unw8￿." the Iru510es have taken all steps that Ih8y oughl lo have laL8n to make aware ol any rthant wdrt inlom8lion and to •stablish tho1 th8 8￿4110￿ ol that wth)ffliab(m. AUDITORS Following 8 competstNe Pr￿UreMOnI exerc￿, Haz1￿0&￿5 8$ aLKlrtors to fv charity durin9 the year lor the year •nded 31 Decern￿r 2025. Hazood5 wll t• proposed lor reappOIntft￿nl ￿ acojrdèrte wlh 465 of Compan￿8 Act 20C6 Approv80 by ord?r of thè Bo8￿ ofTw5te88 ell..￿....￿￿..Uo2c. ... and s￿nBd on its beh8llby'. Chair Page 10

Report of the Independent Auditors to the Members of Hay Festival Foundation Limited

Opinion

We have audited the financial statements of Hay Festival Foundation Limited (the 'charitable company') for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP – FRS102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' responsibilities 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, 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of 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 trustees 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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:

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Report of the Independent Auditors to the Members of Hay Festival Foundation Limited

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

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

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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and charities legislation/SORP, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Councils website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditor’s.

Page 12

Report of the Independent Auditors to the Members of Hay Festival Foundation Limited

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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Felicity Sang (Senior Statutory Auditor) for and on behalf of Hazlewoods LLP Staverton Court Cheltenham GL51 0UX

Date: ............................................. 14/05/2026

Page 13

HAY FESTIVAL FOUNDATION LIMITED

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
5
Hay Festival
School programme
International festival support
Investment income
4
Other income
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Hay Festival
School programme

Total
NET INCOMING RESOURCES
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
381,417
4,738,475
-
357,548
51,673
5,529,113
102,464
5,005,453
-
5,107,917
421,196
446,775
867,971		 Restricted
funds
£
19,202
1,245,354
89,532
-
-
1,354,088
31,883
1,152,089
85,532
1,269,504
84,584
722,758
807,342		 2025
Total
funds
£
400,619
5,983,829
89,532
357,548
51,673
6,883,201
134,347
6,157,542
85,532
6,377,421
505,780
1,169,533
1,675,313		 2024
Total
funds
£
389,673
5,466,407
128,759
344,117
36,781
___ __
6,365,737
6,754
5,834,452
128,759
5,969,965
395,772
773,761
1,169,533

The notes form part of these financial statements

Page 14

HAY FESTIVAL FOUNDATION UMITED BALANCE SHEET FOR THE YEAR ENDE031 DECEMBER 202S 2025 Tot81 funds 2(Y24 Total fL￿S UntE5trried fuTh Restllcted fut￿9 Note5 FIXED ASSETS Tan9ible assets 14 11.252 11,252 15,353 CURRENT ASSETS Stocks Debtors Cash ai bank in h￿￿1 15 16 12.087 305.713 1.251.298 12.087 305,713 2,058.640 27,696 867,956 889.589 B07.342 1,569.C88 eA)7.342 2.376.440 1,785,241 CREDITORS Amounts falling due within onB y 17 1712,3791 1712.3791 1615.7991 NET CURRENT ASSETS 44 TOTAL ASSETS LESS CURRENT UABILITIES e67.971 807.342 1,675.313 1,184.795 CREDITORS Arnounts lalliffj due after rn0￿ Ihan ono y•ar 18 11S.2621 NET ASSETS FUNDS 21 Gerral funds 747,971 120.rx 446,775 D¢tyvJnoiod lunth 867,971 446,775 TOTAL FUNDS financial statements on pag•$ 12 to 31 %we aFvo¥ed ty Il Boafd clTrus 8TrJ authorEed fry k49ue c and wer8 Signed on ts thalf ty.. Page 15

HAY FESTIVAL FOUNDATION LIMITED

Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets

Interest received

Net cash provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities

Change in cash and cash equivalents in
the reporting period

Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period

The notes form part of these financial statements

Page 16

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2025

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
(Increase)/decrease in stocks
Increase in debtors
Increase in creditors
Net cash (used in)/provided by operations		 2025
£
505,780
13,520
(51,673)
15,609
562,243
102,334
1,147,813		 2024
£
395,772
13,435
(36,781)
(13,917)
(637,476)
187,620
(91,347)

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1
January
2025
£
889,589
889,589
(20,000)
(15,262)
(35,262)
854,327
 Cash flow
£

1,169,051
1,169,051

5,754

15,262
21,016
1,190,067		 At 31
December
2025
£
2,058,640
2,058,640
(14,246)
-
(14,246)
2,044,394

The notes form part of these financial statements

Page 17

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

1. STATUTORY INFORMATION

Hay Festival Foundation is a registered charity and private company limited by guarantee having no share capital. It is incorporated in Wales in the United Kingdom. The registered office is The Drill Hall, 25 Lion Street, Hay-onWye, HR3 5AD. The nature of the charitable company's operations and principal activities are disclosed within the Report of the Trustees.

The financial statements are presented in Sterling (£), the charitable company's functional currency, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There have been no material departures from Financial Reporting Standard 102.

GOING CONCERN

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity, having had regard to the current level of freely available unrestricted funds.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

This includes capital grants.

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised where there is entitlement, when the receipt is probable and the amount can be measured reliably. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate. Membership fees are accounted for in the period to which they relate.

Investment income is recognised on a receivable basis.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on charitable activities 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 to support them.

Page 18

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

2. ACCOUNTING POLICIES - continued

EXPENDITURE

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity as well as a proportion of salaries based on an approximation of time spent in this area.

Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

TAXATION

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

TANGIBLE FIXED ASSETS

Fixed assets are initially recorded at cost. Only assets which cost £500 or more are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset (less expected residual value) over its estimated useful life.

Computer equipment - 33.33% on cost

STOCK

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

TRADE CREDITORS

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of activity from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

LOANS AND BORROWINGS

Loans and borrowings are initially recorded at fair value, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs and amounts due on redemption being recognised as a charge to the Statement of financial activities over the period of the relevant borrowing. Interest expense is recognized on the basis of the effective interest method and is included in interest payable and similar charges. Loans and borrowings are classified as current or non-current liabilities.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 19

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

2. ACCOUNTING POLICIES - continued

OPERATING LEASES

Rentals applicable to operating leases where substantially all of the benefits and risks of the ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

The benefits of lease incentives are recognised in the profit and loss account over the lease period.

Basis of recognition of liabilities

Liabilities are recognised as soon as there is a legal or constructive obligation which commits the charity to the expenditure.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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

Significant accounting judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

The preparation of the financial statements requires management to make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, be likely to differ from the related actual results. No estimates or assumptions have been identified that have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3.
DONATIONS AND LEGACIES
Membership income
Donations
Gift aid
Grants
Hay Anytime
Grants received, included in the above, are as follows:
Interns funding
4.
INVESTMENT INCOME
Deposit account interest		 2025
£
155,340
168,579
34,748
19,202
22,750
400,619

2025
£
19,202
2025
£
51,673		 2024
£
177,595
145,500
24,945
19,470
22,163
389,673
2024
£
19,470
2024
£
36,781

Page 20

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

5. INCOME FROM CHARITABLE ACTIVITIES

Activity
Ticket sales
Hay Festival
Book sales
Hay Festival
Sponsorship income
Hay Festival
Exhibitors
Hay Festival
Grants
Hay Festival
Other festival related income
Hay Festival
Festival related merchandise
Hay Festival
Grants
School programme
Management fees
International festival support		 2025
£
2,664,625
786,516
294,659
172,100
1,390,686
557,890
117,353
89,532
357,548
6,430,909		 2024
£
2,025,155
654,234
444,922
202,083
1,506,112
533,987
99,914
128,759
344,117
5,939,283

5. INCOME FROM CHARITABLE ACTIVITIES (CONTINUED)

Grants received, included in the above, are as follows:

Arts Council England - Children & Young People's Programme

Arts Council England - Hay Festival Education and Outreach 2025

Arts Council Wales - International Fellowship Wales Award

Arts Council Wales - Jobs Protection and Resilience

Arts Council Wales - Writers at Work

Central Government - Department for Culture, Media & Sport

Charities Aid Foundation America

Corporacion Andina de Fomento - Otras Histrorias del Archivo de
Indias

Garrick Charitable Trust

Hawthornden Foundation

Hawthornden Foundation - Latam 2024

Hawthornden Foundation - Latam 2025

Hodge Foundation

Martin Smith Foundation

Moondance Foundation

National Philanthropic Trust UK

Old Possum's Practical Trust

Open Society Foundation

Open Society Foundation - IWM

Open Society Foundation - NBO Literary Festival 2024

Powys County Council - UK Shared Prosperity Fund

Rothschild Foundation – Programme for Schools

The British Council

The British Council - Nairobi

The D'Oyly Carte Charitable Trust

The Elmley Foundation - Education project

The Foyle Foundation - Programme for Schools

The John Browne Charitable Trust

The Rosenkrantz Foundation

Welsh Government - Hay Festival Schools Programme 2023-24

Welsh Government - Hay Festival Schools Programme 2024-25

Welsh Government Scribblers
 2025
£
-
99,944

5,500

78,272

49,980
-
-
23,487

4,000

72,759
-
74,147

46,916

-
191,092
125,000

5,000

299,673
-
-
80,000
-
55,000

40,000
4,000
23,000
25,000

130,000

4,832

-
-
42,616

1,480,218		 2024
£
99,773
-
-
-
49,688
500,000
4,901
-
-
57,978
19,571
-
-
5,000
123,000
-
-
308,727
26,605
78,069
130,000
44,000
-
34,800
4,000
20,000
-
-
-
41,375
87,384
-
1,634,871

Page 21

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

6. RAISING FUNDS

RAISING DONATIONS AND LEGACIES
Fundraising consultancy
Other costs		 2025
£
13,297
121,050
134,347		 2024
£
2,250
__4,504
6,754

7. CHARITABLE ACTIVITIES COSTS

Hay Festival
School programme		 Direct
costs
£
5,384,914
55,575
5,440,489		 Support
Costs
£
772,628
29,957
802,585		 2025
Total
£
6,157,542
85,532
6,243,074		 2024
Total
£
5,158,756
804,455
5,963,211

8.

DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Direct costs - Hay Festival / Winter Weekend
Bookshop costs
Merchandise costs
Staff costs - festival event direct		 2025
£
959,978
3,588,798
521,923
66,848
302,942
5,440,489		 2024
£
1,082,910
3,292,705
437,932
70,806
274,403
5,158,756

9. SUPPORT COSTS

Staff costs
Finance
Depreciation
Other
Governance costs		 2025
Total
£
273,501
1,904
13,520
479,857
33,803
802,585		 2024
Total
£
199,230
2,478
13,435
532,646
56,666
804,455

Page 22

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

10. NET INCOME

Net income is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets		 2025
£
11,500
13,520		 2024
£
8,500
13,435

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2025, or for the year ended 31 December 2024.

TRUSTEES' EXPENSES

During the year, trustee expenses were paid to two trustees totaling £707 in respect of travel expenses (2024: £317 - 2 Trustees).

Expenses of £2,106 (2024: £1,052) were compensated back to 1 trustee (2024: 1) to cover the costs of overnight hosting of agreed Hay Festival artists and at time additional persons for specified dates dependent on their appearance at the festival.

12. STAFF COSTS

2025
£
Wages and salaries
1,437,149
Social Security costs
126,448
Pension costs
19,044
Redundancy and termination payment
32,975
1,615,616
The average number of employees during the year:
31		 2024
£
1,406,294
131,583
18,666
-
1,556,543
31

The above average number of employees are on monthly salaries. In addition to the above, the charity ran a weekly payroll, during the weeks of the Hay Festival event held in May/ early June and for the Winter Weekend. The number of employees on the weekly payroll during this very short period varies but an indicative range is between 2 - 96 employees.

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000
£110,001 - £120,000		 2025
1
1
1
3		 2024
1
1
1
3

The total key management personnel remuneration during the year was £633,206 (2024: £465,740). Included within this is £32,734 (2024: £Nil) in relation to PILON and compensation payments made to key management personnel.

Page 23

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Hay Festival
School programme
International festival support
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Hay Festival
School programme
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
370,203
3,960,295
-
344,117
36,781
4,711,396
6,754
4,661,677
-
4,668,431
42,965
403,810
446,775		 Restricted
funds
£
19,470
1,506,112
128,759
-
-
1,654,341
-
1,172,775
128,759
1,301,534
352,807
369,951
722,758		 Total
funds
£
389,673
5,466,407
128,759
344,117
36,781
6,365,737
6,754
5,834,452
128,759
5,969,965
395,772
773,761
1,169,533

Page 24

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

14. TANGIBLE FIXED ASSETS

COST
At 1 January 2025
Additions
At 31 December 2025
DEPRECIATION
At 1 January 2025
Charge for year
At 31 December 2025
NET BOOK VALUE
At 31 December 2025
At 31 December 2024
15.
STOCKS
Stocks - Merchandise and other
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Gift aid recoverable
Other debtors
Prepayments and accrued income
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 19)
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
Included within accruals and deferred income above is the following deferred income:
Benefactor membership in advance
Exhibitor deposits in advance
Early bird ticket sales
Sponsorship in advance

2025
£
12,087
2025
£
147,836
13,170
3,205
141,502

305,713

2025
£
14,246
163,629
34,934
30,038
7,976
461,556

712,379

2025
£
10,833
53,050
280,159
5,000
349,042
 Computer
equipment
£
41,375
9,419
50,794
26,022
13,520
39,542
11,252
15,353
2024
£
27,696
2024
£
101,092
12,709
3,205
750,950
867,956
2024
£
20,000
137,790
26,359
54,128
3,197
374,325
615,799
2024
£
19,583
9,100
234,108
___3,525
266,316

Page 25

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The balance in deferred income has moved in the year as follows:
Balance at 1 January
Amount released in the year
Amount deferred in the year
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 19)

19.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
20.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one year and five years
Over five years		 2025
£
266,316
(266,316)
349,042
349,042
2025
£
-
2025
£
14,246
-
-

2025
£
69,773
165,289
21,912
256,974		 2024
£
167,483
(159,983)
258,816
266,316		 2024
£
167,483
(159,983)
258,816
266,316

266,316


2024
£
15,262
2024
£
20,000
15,262
-
_____
2024
£
65,248
7,523
-
72,771

Operating lease payments recognised as an expense during the year amounted to £69,773 (2024: £65,248).

Page 26

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

21. MOVEMENT IN FUNDS

Restricted funds
Support and Development
Central Government - Department for Culture, Media &
Sport
Open Society Foundation - 2024
Moondance Foundation
Rothschild Foundation - Programme for Schools
Martin Smith Foundation
The D'Oyly Carte Charitable Trust
Hodge Foundation
Powys County Council - UK Shared Prosperity Fund
Garrick Charitable Trust
The British Council
Corporacion Andina de Fomento - Otras Histrorias
del Archivo de Indias
Open Society Foundation
Bloomberg Philanthropies
The British Council
TOTAL FUNDS
General fund
Designated fund
Total unrestricted funds		 230,000
135,000
203,758
123,000
22,000
5,000
4,000
-
-
-
-
-
-
-
-
722,758
1,169,533
At 1
January
2025
£
446,775
-
446,775

(100,000)
(135,000)
(203,758)
68,092
(22,000)
(5,000)
-
4,000
26,999
4,000
40,000
14,356
252,895
125,000
15,000
84,584
505,780
Net
Movement in
Funds
£
421,196
-
421,196		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
Between
Funds
(120,000)
120,000
-		 130,000
-
-
191,092
-
-
4,000
4,000
26,999
4,000
40,000
14,356
252,895
125,000
15,000
807,342
1,675,313
At 31
December
2025
£
747,971
120,000
867,974




Page 27

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

21. MOVEMENT IN FUNDS – continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
Incoming
resources
£
General fund
5,529,113
Restricted funds
Welsh Government - Scribblers
42,616
Hodge Foundation
46,916
Intern funding
19,202
Support and Development
-
Arts Council England - Hay Festival Education and Outreach
2025
99,944
Arts Council Wales - Writers at Work
49,980
Arts Council Wales - Jobs Protection and Resiliance
78,272
Powys County Council - UK Shared Prosperity Fund
80,000
The Elmley Foundation - Education project 2025
23,000
Hawthornden Foundation - Latam 2025
74,147
The Foyle Foundation - Programme for Schools
25,000
Garrick Charitable Trust
4,000
British Council - Nairobi
40,000
The British Council
40,000
Corporacion Andina de Fomento - Otras Histrorias del Archivo de
Indias
23,487
Open Society Foundation - 2025
299,673
Hawthornden Foundation
72,759
Moondance Foundation
191,092
Bloomberg
125,000
Central Government - Department for Culture, Media & Sport
-
Rothschild Foundation - Programme for Schools
-
Martin Smith Foundation
-
The D’Oyly Carte Charitable Trust
4,000
The British Council
15,000
Open Society Foundation - 2024
-
Total restricted funds
1,354,088
TOTAL FUNDS
6,883,201		 Resources
Movement
expended
in funds
£
£
5,107,917
421,196
(42,616)
-
(42,916)
4,000
(19,202)
-
(100,000)
(100,000)
(99,944)
-
(49,980)
-
(78,272)
-
(53,001)
26,999
(23,000)
-
(74,147)
-
(25,000)
-
-
4,000
-
40,000
(40,000)
-
(9,131)
14,356
(46,778)
252,895
(72,759)
-
(123,000)
68,092
-
125,000
(135,000)
(135,000)
(22,000)
(22,000)
(5,000)
(5,000)
(4,000)
-
-
15,000
(203,758)
(203,758)
1,269,504
84,584
(6,377,421)
505,780

Page 28

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

21. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds

Unrestricted funds
General fund
Restricted funds
Support and Development
Latin America festivals
Alliance for Open Society International
2024
Central Government - Department for Culture, Media & Sport
Open Society Foundation - 2024
The Moondance Foundation
Rothschild Foundation
Martin Smith Foundation
The D'Oyly Carte Charitable Trust
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Schools programme 2023-24
Writers at Work
Intern funding
Support and Development
Latin America festivals
Alliance for Open Society International 2024
Schools programme 2024-25
Children & Young People's Programme
Central Government - Department for Culture, Media & Sport
Open Society Foundation - NBO Literary Festival 2024
Hawthornden Foundation - festival delivery
Open Society Foundation - 2024
The Moondance Foundation
Feasibility study and winter weekend festival
Education projects
Rothschild Foundation
Martin Smith Foundation
The D'Oyly Carte Charitable Trust
The British Council - Nairobi
Charities Aid Foundation America
Open Society Foundation - IWM
TOTAL FUNDS		 At 1
January
2024
£
403,810
300,000
19,348
50,603
-
-
-
-
-
-
369,951
773,761
follows:
Incoming
resources
£
4,711,396
41,375
49,688
19,470
-
19,571
-
87,384
99,773
500,000
78,069
57,978
308,727
123,000
130,000
20,000
44,000
5,000
4,000
34,800
4,901
26,605
1,654,341
6,365,737		 Net
movement
in funds
£
42,965
(70,000)
(19,348)
(50,603)
135,000
203,758
123,000
22,000
5,000
4,000
352,807
395,772
Resources
expended
£
(4,668,431)
(41,375)
(49,688)
(19,470)
(70,000)
(38,919)
(50,603)
(87,384)
(99,773)
(365,000)
(78,069)
(57,978)
(104,969)
-
(130,000)
(20,000)
(22,000)
-
-
(34,800)
(4,901)
(26,605)
(1,301,534)
(5,969,965)		 At 31
December
2024
£
446,775
230,000
-
-
135,000
203,758
123,000
22,000
5,000
4,000
722,758
1 ,169,533
Movement
in funds
£
42,965
-
-
-
(70,000)
(19,348)
(50,603)
-
-
135,000
-
-
203,758
123,000
-
-
22,000
5,000
4,000
-
-
-
352,807
395,772

Page 29

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

21. MOVEMENT IN FUNDS - continued

Welsh Government Schools Programme

The purpose of the funding is to support Hay Festival Schools Programme and activities each year including a Schools Programme that took place at the Hay Festival in each year, which was broadcast live and offered live and online events across primary and secondary school children. The funding also included the Welsh Language Scribblers Tour held in November each year and English Language Scribblers Tour held in February each year.

Writers at Work

Funded by Arts Council of Wales, project title: Writers at Work. This project joined together a group of peers with a group of writers. The residential aspect of the project provided a great opportunity for the writers to develop their work and ideas in a focused, collaborative, constructive and industry-driven environment. The project connected writers from across Wales. This was a 7-day programme packed with workshops, events and meetings which allowed the writers to learn, share and challenge on writing and thoughts.

Intern funding

Funding specifically towards intern placement costs.

Support and Development

Funded by The Unwin Charitable Trust to help to continue, support and nurture future writers through our flagship festival, Hay Festival Wales. To develop and deliver new projects across the UK that bring together the many part of the publishing world, linking authors, publishers and booksellers with readers who might otherwise be hard to reach. This funding is for a 3-year period across Hay Festival Wales 2024/25/26 and associated events.

Latin America

Funded by Hawthornden Foundation, a grant to Hay for the festivals in Latin America to support writers and develop readers.

Winter Weekend & Feasibility Study

Funded by Powys County Council, relating to the delivery of activities under the UK Shared Prosperity Fund supported by UK Government, towards the Winter Weekend festival held in November 2023 and November 2024 at Hay on Wye along with an allocation towards feasibility study consultancy costs.

Central Government Department for Culture, Media and Sport (DCMS)

Funding was received to support Hay Festival's Global programme of world leading literary and arts festivals in the UK and overseas. Specifically the funding helped to deliver festivals at Hay on Wye 2024, Nairobi, Mexico, Segovia & Seville, Dallas, Peru, Panama and Colombia.

Open Society Foundations - NBO Literary Festival

Funding was received to support the NBO Literary Festival held in June 2024.

Children & Young People's Programme

Funded by Arts Council England for children and young people from rural areas to participate in creative and cultural activities.

Open Society Foundation 2024

Funding was received to support a series of international conversation to benefit the general public by promoting non-western solutions to global issues.

Moondance Foundation

Funding received towards the programme for Schools and Scribblers Cymraeg Tour.

The Elmley Foundation

Funding to support artist fees for events and workshops around the Hay 2024 festival.

Designated fund

An independent review has indicated that VAT has been over claimed by the charity during the year under review and in prior accounting periods see note 23 for further details. The Trustees have created a designated fund from free reserves of £120,000, to build a reserve to cover any over claimed VAT, plus interest and penalties once a reliable estimate can be calculated.

Page 30

continued...

HAY FESTIVAL FOUNDATION LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2025

22. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution scheme. The pension costs charge for the year represents contributions payable by the charity to the scheme and amounted to £19,044 (2024: £18,666). At the year end, there were outstanding contributions of £Nil (2024: £Nil).

23. CONTINGENT LIABILITY

The charity voluntarily engaged the services of an external VAT consultant to undertake a review into how the charity applies the VAT rules in relation to its business and non-business activities. This review has indicated that VAT has been over claimed by the charity during the year under review and in prior accounting periods.

This matter is currently under review with the VAT consultant to determine the quantum of VAT over claimed, however the final liability cannot currently be reliably estimated, and no provision has been recognised in these financial statements. The Trustees have created a designated fund from free reserves of £120,000, as described in note 21, to build a reserve to cover any over claimed VAT, plus interest and penalties once a reliable estimate can be calculated.

24. RELATED PARTY DISCLOSURES

During the year, the charity entered into transactions with Cannogate Books Limited, which is considered a related party. One of the trustees, also serves as a director of the named company. As such, Cannongate Books Limited is deemed a related party under the definition set out in the Charities SORP (FRS 102).

In accordance with the requirements of the Charities SORP, all related party transactions are regarded as material and must be disclosed irrespective of value. The total value of transactions in the year was £1,480 (2024: £Nil). There was a balance outstanding at year end of £230 (2024: £Nil).

Page 31

continued...

HAY FESTIVAL FOUNDATION LIMITED

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 DECEMBER 2025

INCOME AND ENDOWMENTS
Donations and legacies
Membership income
Donations
Gift aid
Grants
Hay Anytime
Investment income
Charitable activities
Ticket sales
Book sales
Sponsorship income
Exhibitors
Grants
Other festival related income
Management fees
Festival related merchandise
Total incoming resources
EXPENDITURE
Raising donations and legacies
Fundraising consultancy

Other costs
Charitable activities
Wages
Social security
Pensions
Direct costs - Hay Festival / Winter Weekend
Bookshop costs
Merchandise costs
Staff costs - festival event direct
Support costs
Staff costs
Wages
Social security
Pension
Deposit account interest

This page does not form part of the statutory financial statements

Page 32

HAY FESTIVAL FOUNDATION LIMITED

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 DECEMBER 2025

Finance
Depreciation
Other
Insurance
Legal and professional fees
Other costs
Recruitment expenses
Rent and rates
Heat, light and power
Travel and subsistence
IT related costs
Subscriptions
Governance costs
Auditors' remuneration
Other board expenses
Board recruitment – Chair role
Governance support
Total resources expended
Net income
Bank charges and interest
Computer equipment		 61,936
-
105,806
8,313
66,698
8,397
52,023
143,348
33,336
479,857
11,500
3,862
-
18,441
33,803
6,377,421
505,780
1,904
13,520

This page does not form part of the statutory financial statements

Page 33