**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 $pnl thai first animated the Festival curiosity, InlelbGluHI ￿lI￿ros11Y and Ihe belK*l that stone5 arvj thas can brirKJ people together across bDfd&r8 and per$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 cornmitft*ni 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**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 Ger*ral 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 t*half 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