2022-06-30-accounts

King’s School, Bruton Governors’ Report and Financial Statements for the year ended 30 June 2022

Registered Company Number: 03304693 Registered Charity Number: 1071997

King’s School, Bruton (Company Limited by Guarantee)

Contents

	Page
Reference and administrative information	2 - 3
Report of the Governors	4 - 19
Independent auditor's report	20 - 22
Consolidated statement of financial activities	23
Balance sheet	24
Consolidated cash flow statement	25
Notes to the financial statements	26 - 55

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE INFORMATION

Charity Information

Charity registration number:

1071997

Company registration number:

3304693

Company secretary:

L S Tuson MBE

Registered office:

King's School, Bruton Somerset BA10 0ED

Headmaster, King's School: Headmaster, Hazlegrove School:

I S Wilmshurst MA M C C White MA (Resigned 31 August 2022) E Benbow BA Med PGCE (Appointed 1 September 2022)

Bursar:

L S Tuson MBE

Directors And Trustees

The Directors of the School are its trustees for the purpose of charity law and throughout this report are collectively referred to as Governors. The Governors serving during the year and since the year end, and the committees on which they served are set out below:

L A Anderson, CFPTM Chartered FCSI FPFS (BSG), appointed 1 March 2022 R F Badham-Thornhill, BA, PGCE (E) C R S Birrell, MA, FCA (Chairman of Finance Committee, G, SR, ST) A Clutterbuck, ACIOB (EM) S L Donald, BA (BSG), appointed 1 March 2022 S R R Edlmann, MA (Senior Warden) (F, G, SR) D M C Fisher, (F) E G Hobhouse, BSC Eng, MBA (Chairman of Estates Management Committee, F, ST) L F Hodges, BA (RM, e-Safety) J B Hopkins, BA Hons (EM) T G Jones, MA, OBE, JP (Junior Warden) (RM, G, SR) resigned 31 August 2021 Maj Gen J C Lawrence CBE, MA, MSc FCMI (RM, ST) J D Mant, LLB (Chairman of Risk Management Committee, G) Prof D Miles, CBE (E) resigned 17 June 2022 G W Pretor-Pinney, BSc, Econ, MSCI (F, ST) H Sampson, MA, MBA J R Walker, BEd Hons (Safeguarding, E, RM) P M Wells, BEd Hons (E)

Committee membership abbreviations:

• F - Finance

• E - Education

RM - Risk Management

EM

• Estates Management

• G - Governance

• SR - Senior Remuneration

BSG

• Bruton School for Girls

ST - Strategy

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE INFORMATION

Professional Advisors

Auditor:

RSM UK Audit LLP Davidson House The Forbury Reading RG1 3EU

Bankers:

HSBC Bank Plc 1 Middle Street Yeovil Somerset BA20 1LR

Solicitors:

RWK Goodman LLP Midland Bridge House Midland Bridge Road Bath BA2 3FP

Mogers Drewett LLP 1 Cheap Street Sherborne Dorset DT9 3PU

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

The Governors present their report and the audited financial statements for the year ended 30 June 2022. The report also serves as a Directors' Report and the Strategic Report as required by Section 415 of the Companies Act 2006.

King’s School, Bruton, the charity, is referred to throughout the financial statements as the School.

The reference and administrative information set out on pages 2 and 3 form part of this report.

The Financial Statements comply with the requirement of the Charities Act 2011 and the Charities SORP (FRS102).

PUBLIC BENEFIT

The Governors confirm that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

The School delivers public benefit across a broad spectrum of activity by offering bursaries, through the contribution of senior staff to the governance of local schools, through contributions to local communities, and the loan of facilities to the public and state schools. Both schools also raise significant sums of money for good causes locally and around the world.

Although inevitably reduced due to the pandemic the previous year, 2022 saw a return to near normal. A significant number of organisations in the local communities, including schools, community groups and charities have all benefited from the use of the schools’ facilities, from pupils' fundraising initiatives and from pupils' active involvement in events such as concerts, community work and community events such as fetes and fairs over the past year.

Examples of support given this year:

Academic

BTEC Enterprise and Entrepreneurship. Lower 6[th] Form pupils in Arion House and the Business Studies department, collected warm clothes for the homeless (Julian’s House in Bath) at Christmas and the Upper 6[th] Form Enterprise students ran a social enterprise activity to raise money for School in a Bag and raise awareness of national issues such as mental health in teenagers and teenage cancer.

Music The School hosted the London College of Music examinations for various state schools in the region.

The Chapel Choir sang at evensong at both Exeter, Wells and Chichester Cathedrals.

Hazlegrove’s Year 7 Rock Band, The ShCool Boys, performed on Radio Somerset as part of Children in Need.

Ten children were invited to partake in the celebration at the Abbey in Sherborne as part of the Jubilee celebrations.

The Foundation offers the potential for a continuous educational experience from nursery through to the 6[th] Form and within this structure the schools use their resources to fund bursaries, on the basis that good education should be available to pupils regardless of means. The Foundation views bursary awards as enabling children from families who would otherwise not be able to afford the fees to access the high quality education of King’s Bruton and Hazlegrove. Bursary awards are available to those who meet the entry requirements and are made on the basis of parental means or to relieve hardship where a pupil’s education might otherwise be at risk.

This year overall 119 pupils across the schools benefitted from bursaries.

The School does not have a permanent endowment or retained reserves for funding bursaries. Governors ensure that there are policies in place so that the appropriate level of support is provided from income.

Other assistance is available to help families maintain continuity in the education of their children, such as for siblings in larger families and for children of parents serving in HM Forces whose education might otherwise be disrupted.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

PUBLIC BENEFIT (continued)

Local Public Benefit – Junior and Senior Schools

Hazlegrove have held swimming lessons for Castle Primary School (a local Primary School) every Wednesday this term. The School has provided use of the pool, a lifeguard and swimming teachers.

Hazlegrove has supported the Somerset Schools Athletics Association (SSAA) which supports all Somerset School children involved in cross country and athletics

• Hosted AGM and meetings at Hazlegrove.

• A member of staff managed the Somerset team at the South West Championships and English Schools Championships.

• Staff have officiated at numerous events.

• Staff have given their time and expertise as a member of the executive committee.

• Staff have filled the role of treasurer of the association.

• The School has provided facilities to photocopy programmes and handbooks for SSAA Cross Country, Athletics and Combined Events.

Voluntary Staff Usage. Hazlegrove staff have given their time in the following capacities:

• Teaching at local Pony Club and supervising overnight camps.

• Officiating/helping at local, regional and national Pentathlon GB events.

• Officiating/helping at local, regional and national NSEA (National Schools Equestrian association) events.

• Officiating/helping with the South West Prep Schools Athletics and National Prep Schools Committee.

• On the committee for the National Prep Schools Tennis Committee.

One of the School’s Senior staff is Chairman of Governors in a local Academy Trust, providing invaluable support.

A member of staff gives their time as Chairman of Community Kids Management Committee and is also the Deputy Designated Safeguarding Lead as well as being part of the Bruton Primary School Working Group which is aiming to provide safer access on Higher Backway and is linked to the Town Council safer roadways in Bruton initiative.

The school gave £500 sponsorship towards a local Primary Schools Drama Festival.

The Chaplain visited King Ina Academy Primary School to perform assemblies.

At the end of term fruit was sent to Bruton Primary School.

The Astro pitches have been used for hockey training at County Level as well as the local Bruton hockey and Gillingham hockey organisations.

Community Service

A member of Hazlegrove staff runs a voluntary club where children read weekly over the phone to a member of the community who feels isolated or can no longer read themselves. It aims to build friendship, reading confidence and reduce isolation. It is part of a national charity called Silver Stories.

The School also supported the Town with their Remembrance Sunday activities in Bruton.

Hazlegrove provided tray bakes for the Queen Camel village Christmas Fayre and Jubilee celebrations.

A Community Concert was held at King’s for local residents. Afternoon Tea was provided with entertainment from the Music department.

As part of the Community Service programme this year, pupils attended North Cadbury Primary School, Our Lady Primary School, Bruton Primary School, Wincanton Primary School and Mendip School to help in class with younger children. Placements were also found for pupils at Mill on the Brue, Community Kids and Sexey’s Hospital. Pupils also took part in home visits to help out with chores like shopping and gardening.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

PUBLIC BENEFIT (continued)

Community Service (continued)

Prep School pupils made gifts for local elderly residents.

Facilities

The School allows the local Benefice to use two rooms as offices throughout the year free of charge. They also have access to printing facilities which reduces their need to buy or rent a printer.

The School has allowed local businesses and the Church to use the staff car park for parking for events and weddings because parking is limited in the local town.

The School dedicated its car park next to the community hall exclusively in support of the NHS Covid-19 vaccination programme.

The Bruton Under 8s football team had use of the Astro at King’s for practice.

The Chaplain used a School minibus to take 15 teenagers from St John’s Yeovil Youth Group away to Dartmoor for a weekend. This made the trip financially accessible to some low income families. The School minibuses were also used to facilitate a summer camp for under privileged children.

King’s School hosted a qualifying tournament for the English Chess Federation’s Under 19 National Schools Chess Championship.

Wincanton Dance used the theatre for a weekend in December to present their production. This came about due to covid restrictions and so the group was unable to use their usual venue. The event was attended by 150 spectators.

Charity Work

A member of staff also regularly volunteers at Yeovil District Hospital Emergency Department.

Children in Year 5 made Christmas shoeboxes for children in Moldova.

The local DOVE organisation used the facilities to host their Christmas thank you for approximately 60 guests.

Public Benefit at a National Level

The Deputy Head delivered American College Testing (ACT) International for US university applicants, including Sutton Trust applicants from Cornwall, Devon and South Wales, using the School’s ICT facilities and staffing, as well as providing university guidance support to colleagues across the UK and participating in UCAS consultations.

A member of staff volunteers with the Tall Ships Youth Trust as a youth mentor and also volunteers at various national sports events. There are also a few staff members who volunteer for the Samaritans.

The School has welcomed a Ukrainian refugee while temporarily resident in the UK.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

PUBLIC BENEFIT (continued)

Fundraising Activities

Examples of recipients of funds as a result of fundraising activities by the schools this year are as follows:

• Bruton Larder Foodbank.

• Chefs in School.

• Children in Need.

• Community Kids.

• Defenders of Wildlife.

• Diabetes UK.

• Dorset and Somerset Air Ambulance.

• Hope and Homes for Children in Ukraine (£10,000).

• King’s Friends Committee.

• Literacy Trust.

• MacMillans.

• Magic Breakfast.

• MIND, Somerset (£10,000).

• Mustard Seed.

• Pets as Therapy.

• Queen Camel Book Hub.

• Royal British Legion.

• Save The Children.

• School in a Bag (£7034.00 raised to help over 350 Ukrainian children).

• Scotty’s Little Soldiers.

• SOS Kit Aid – donation of old team kits (HZG is a collection point).

• South West Hospice.

• St Margaret’s Hospice.

• Somerset Trust for Arts and Recreation (STAR).

• The Lords’ Larder (Yeovil Foodbank) Harvest Festival Donations.

• Ukraine Charities.

• Unicef.

• War Child.

• Yeovil Street Pastors.

• Yeovil Community Arts Association (YCCA).

• Young Minds.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The School is a charitable company limited by guarantee, incorporated on 20 January 1997 and registered as a charity on 16 October 1998. The guarantors are the members to the extent of £1 each.

The governing documents for the year in question were the Memorandum and Articles of Association dated 20 January 1997. A new set of Articles of Association, dated 2 September 2012, were adopted for immediate use by the Governors.

Uniting Direction

A uniting direction dated 18 June 2008 was made under s96 (5) of the Charities Act 1993. The financial statements for King’s School, Bruton (Charity No 1071997) also include the assets held by King’s School, Bruton Trust (Charity No 1071997 - 1) (‘the Trust’).

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governors and Management

The governing body, who constitute the members of the School, consists of a maximum of 17 and a minimum of 11 Governors, one can be nominated by the Visitors of the Hospital of Hugh Sexey Esquire in Bruton, all new appointments being confirmed by resolution of the School.

Governors of the School are appointed following an assessment of the skills required to manage the School at board level. An assessment is made of the potential contribution any new governor might make, based on their professional background and relevant experience. Once a new governor has been appointed by the board, an induction programme follows. The officers (Senior Warden, Junior Warden and Chairman of the Finance Committee) review and discuss any training that Governors might require and appropriate courses are organised. One day a year is set aside by the officers for a study day for all Governors to attend. The subject of this setaside day enables any training needs to be undertaken as well as a review of strategic issues.

Responsibility for all aspects of both schools is vested in the Governors. The sub-committees of the Governors are:

These 6 committees meet each term:

F Finance E Education RM Risk Management EM Estates Management BSG Bruton School for Girls Committee ST Strategy Committee

These 2 committees meet at least once each year and more frequently if required:

G Governance SR Senior Remuneration

No governor has any interest in contracts with the School either directly or indirectly other than as a parent of a child at the School paying fees at the normal rate, or as disclosed in note 26.

The Senior School is led by the Headmaster, Mr I S Wilmshurst, MA; the Preparatory School, during the year Hazlegrove was led by the Headmaster, Mr M White, MA. Each Headmaster has his own Senior Management Team, and regular meetings occur between both Headmasters and the Bursar to ensure that the overall policy and direction of the Senior and Preparatory Schools follow the strategic and operational plans set out by the Governors.

In March 2002 the Governors established KSB Foundation as a registered charity for the future development and funding of both schools. The members of KSB Foundation are the Governors of King's School and the trustees of the Foundation. The Governors represent a majority of the members. The trustees of the Foundation are:

C L Barber M Cadbury N W Robson FCIB (Chairman) C M Squire H Sampson MA MBA Lt Col R Sullivan (Deceased 21 October 2022)

The secretary of KSB Foundation is Mr L S Tuson.

In 2018 the Martin Barber Trust (Registered Charity Number 1178069) was set up as a Charitable Incorporated Organisation (CIO) following the receipt of a legacy left to the School. The Trustees of the Martin Barber Trust are:

Christopher Birrell Louis Tuson

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governors and Management (continued)

Ian Wilmshurst (Ex Officio)

Key Management Personnel

The Governors consider that they, together with the Headmasters and the Bursar and the following staff are Key Management Personnel (See note 26 to the accounts):

King’s School

Hazlegrove School

Deputy Head Deputy Head Deputy Head – Teaching and Learning Director of Studies Deputy Head – Academic Head of Pre-Prep Deputy Head – Sixth Form Senior Academic Tutor

The Governors give of their time freely and the pay and remuneration of the Heads and Bursar is set by the Senior Remuneration Committee and reviewed annually. A number of criteria are used in setting pay:

• Nature of the role and responsibilities.

• Competitor salaries in the region.

• The sector average salary for comparable positions.

• Trends in pay.

The Governors have given delegated authority to the Heads to pay higher salaries for exceptional candidates where this is in the interest of the School.

Trading Subsidiary

In September 2007 the Governors established Crown and Dolphin Enterprises Limited as a trading subsidiary for the future development of commercial activities by the School. The Directors of Crown and Dolphin Enterprises Limited are:

C Birrell (Chairman) L S Tuson

The secretary of Crown and Dolphin Enterprises Limited is Mr L S Tuson.

Bruton School for Girls

On 1 March 2022 King’s School, Bruton took control of Bruton School for Girls (BSG) which has the Registered Charity Number 1085577. It was announced that BSG would close at the end of the academic year in May 2022. The Trustees of BSG are:

E G Hobhouse, BSC Eng, MBA (Chairman), appointed 1 March 2022

L A Anderson, CFPTM Chartered FCSI FPFS

S L Donald, BA

Mr I S Wilmshurst, appointed 1 March 2022 Mr L S Tuson MBE, appointed 1 March 2022

The financial results of KSB Foundation and Crown and Dolphin Enterprises Limited are shown in note 7 and have been consolidated with those of the School. The financial results of BSG for the period 1 March 2022 to the year end (30 June 2022) have been consolidated into those of the School, also shown in note 7.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

REVIEW OF THE DEVELOPMENT, ACTIVITIES AND ACHIEVEMENTS OF THE SCHOOL

KING’S SCHOOL

Exam Results

Exams returned to normal this year with pupils sitting external exams for all subjects. The achievements were as follows:

A Level	A* - A	58%
	A* - B	75.4%
GCSE	9 - 7	47.7%
	9 - 4	93.1%
BTEC	100% pass with 38/45 entries awarded D* or D

Pupil Numbers

The 2021 - 2022 school roll started on 357.

Pupil Events

Due to covid remote teaching was delivered where necessary but all actual face-to-face lessons returned to normal.

Pupils set up a new Eco-Committee with the target to make King’s a Green Flag school as soon as possible. This was achieved this year with the School being awarded its Green Flag status in June 2022.

Two hundred trees were planted next to the Astro as part of the Queen’s Green Canopy Platinum Jubilee Celebrations.

The annual art trip did go ahead to St Ives which was hugely successful along with practice expeditions for the Gold Duke of Edinburgh Award. A CCF activity camp was scheduled for the last week of term. An all school, day trip to Thorpe Park was also scheduled at the end of term.

Sport continued with strong teams in rugby, cricket, tennis and athletics. An excellent 1[st] XV and probably the strongest U14 and U15 rugby teams for a decade. Girls’ hockey continues its success and the U18 indoor team qualified for the Regional Finals. Ninety pupils regularly receive tennis lessons every week. There has been the introduction of football, badminton, golf and clay pigeon shooting to the sports on offer.

The equestrian team became both team and individual National Champions at Hickstead.

HAZLEGROVE SCHOOL

Exam Results

In Year 8 scholarships to senior schools were achieved by 18 pupils across a range of disciplines.

Pupil Numbers

The 2021-2022 school roll increased in the year by 14 and ended on 363 with 48.5% of leaving pupils moving on to King’s Bruton.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

REVIEW OF THE DEVELOPMENT, ACTIVITIES AND ACHIEVEMENTS OF THE SCHOOL (continued)

HAZLEGROVE SCHOOL (continued)

Pupil Events

A residential trip to the River Dart on Dartmoor went ahead as planned and a Year 8 leavers’ trip to Cornwall also took place. Year 5 went on a trip to Naturebase in Mid-Wales.

Music

An average of 215 Music lessons were delivered per week by 18 staff specialising in a wide array of instruments. During the year 51 pupils passed ABRSM Music exams from Grade 1 to Grade 5.

New instrumental opportunities were provided in the form of instrumental taster sessions in Year 3 in violin, cello, recorder/clarinet, brass and flute to encourage take up of musical instruments.

The Hazlegrove orchestra continues to flourish and perform to parents and ensemble music is provided by the following groups; Dolphin Choir – Years 3 and 4, Year 5 Choir, Year 6 Choir, Hazlegrove Voices, Girls’ Vocal Group, String Ensemble, Senior String Quartet, Wind Band, Flute group, Guitar Ensemble (classical), Rock and Pop bands (Years 6, 7 and 8), Samba Band, Senior Brass, Junior Brass and the Staff Jazz Band (Spring Concerts).

Music theory is offered to all instrumentalists who are Grade 2 and above (depending on ability) with 4 children having taken their Grade 5 Theory exam this year, enabling them to progress to Grade 6 in their chosen instrument.

Sport

With restrictions due to Covid being lifted it has been possible to return to a full programme of sport for the pupils at Hazlegrove. Highlights include:

• The Girls’ 1st team reached the Somerset County Finals of the Lady Taverners Indoor Cricket.

• The Under 11 Girl’s qualified for the National IAPS Netball Finals after finishing 2nd at Regional Finals.

• National IAPS Boys Judo – Silver medal awarded.

• National IAPS Girls Judo – Six medals awarded, including two golds.

• The Year 6 Girls team came 2[nd] at the National Prep Schools Cross Country at Malvern College.

• National Prep Schools Cross Country – 3rd place trophy in the Senior Girls race.

• 1st VII Boys won the plate final at the Regional IAPS Hockey Finals.

• National IAPS Judo – Silver medal awarded.

• One Year 8 girl selected to represent Somerset at the English Schools Cross Country Championships in Kent.

• Somerset Junior County Cross Country Championships – County Champion – Year 8 Girls.

• The Regional IAPS Swimming Finals were hosted at Hazlegrove.

• 1st VII Girls winning the plate final at the Regional IAPS Netball Finals.

• Three children selected to represent Somerset at the Southwest Cross Country Championships in Chippenham.

• Forty-four children competed at the National Schools Biathlon Finals at Bath University.

• National Schools Biathlon Finals – 3rd Team - Under 9 Boys.

• Under 10 Boys winning the King’s Bruton Hockey Tournament.

• Year 7 Boys and Year 6 Girls winning the Clayesmore Cross Country Relays.

• Clayesmore Cross Country Relays Team medals in all eight age groups.

• Clayesmore Cross Country Relays - Fastest Lap trophy winners - Year 6 and Year 8 girls individuals.

• Squash matches returning – we have hosted matches with both Sandroyd and Chafyn Grove.

• All Year 7 and 8 Girls (61) enjoyed a netball trip to watch Team Bath play Loughborough Lightning at Bath University.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

REVIEW OF THE DEVELOPMENT, ACTIVITIES AND ACHIEVEMENTS OF THE SCHOOL (continued)

HAZLEGROVE SCHOOL (continued)

• A pupil won the Junior Boys category in the South West Schools Pistol Shooting competition - qualifying for the National Finals that took place in Staffordshire.

• Laser shooting continues to be very popular with over 25 children receiving weekly coaching. All have just received their Competency Certificates, allowing them to take part in any of the organised regional or national events.

• All girls and boys from Years 3 to 8 have represented the School in fixtures.

• Eleven Sports Scholarships and Awards to senior schools, 13 swimmers to the National IAPS Swimming Finals, 19 athletes to the National IAPS Athletics Finals with 2 Gold medals, 2 Silvers and the winner of the Corden Trophy for the best athlete of the Finals.

Drama

A range of drama productions, from the Lower School Production of Dragon Days, the Year 6 Production of Pinocchio, the Year 7 Whodunnits were all triumphs of children’s endeavour, with a number appearing on stage for the first time at Hazlegrove.

The Year 8 Production of ‘A Play in the Life’ told us everything about the talent that existed amongst this very able year group with almost 70 on stage.

CONNECTED BODIES

The School is connected to KSB Foundation, Crown and Dolphin Enterprises Limited (CDE) and The Martin Barber Trust as explained below. The School ultimately controls the Foundation by virtue of the Foundation’s constitution, its Memorandum and Articles of Association, which states that at general meetings the majority of those members present will be Governors.

The Friends of King’s Bruton and the Friends of Hazlegrove are independent committees of interested and supportive parents, which aim to support King’s and Hazlegrove respectively.

The core activities of CDE are to generate income from letting out the school facilities, initiating commercial activities, and conducting retail activities. There was limited letting of the school sites over the Summer holiday in 2021 at the start of the financial period, but since then there has been a gradual increase in letting activity. The situation is expected to be back to near capacity in 2022 and bookings have already been confirmed for the 2022 Summer holiday period.

The Martin Barber Trust

The Martin Barber Trust is established as a CIO. The objects of the CIO are the promotion of education through the creation of scholarships or bursaries to be awarded to a child living within the boundaries of the parish of Bruton, Somerset or a child of a former pupil of King's School, Bruton to enable them to be educated at King's School Bruton, Somerset or any successors in such ways as the charity trustees may from time to time think fit. This Trust has been registered with the Charities Commission with trustees appointed.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

FUTURE OUTLOOK

The longer term aim of the School is to:

• Maintain a high level of teaching, both academic and non-academic, so that all pupils develop to their maximum potential.

• Continue to develop the estate to provide the appropriate facilities to fulfil the schools’ aims and objectives.

• Continue to improve the ICT provision at both schools.

• Encourage self-development in a School with a Christian ethos.

• To maintain the fabric of the many properties owned by the School with a high level of on-going maintenance.

• Strive to extend its reach in extending public benefit to the wider community.

• Ensure that the School continues to meet its legal objectives.

In order to achieve these broad aims, it is necessary to develop the facilities and fabric of the premises, including the continued refurbishment and upgrading of facilities at both King’s Bruton and Hazlegrove. Governors have agreed to a major refurbishment of boarding facilities at Hazlegrove and for the development of the sports pavilion at King’s. These projects will be completed in the 2022-2023 financial year.

It remains necessary to continue the present high level of maintenance of existing premises in view of their age. These plans are subject to adequate funds becoming available from surpluses generated. There has also been continued investment in ICT at both schools.

FINANCIAL REVIEW

The Trustees recognise that the report and financial statements show a significant change to the position from previous years. The change to the structure of the Group during the period of this report has resulted in Financial Performance that cannot be easily compared with performance in previous years due to the income from Bruton School for Girls and the additional assets in the Group.

Total group income for the year was £24,134,548 which includes income on acquisition of Bruton School for Girls of £7,265,068 and also a loss for the period by Bruton School for Girls of £2,414,415 (see note 28).

In order to allow comparison with previous years, the income for King’s School, Bruton without the transfer from BSG taken into account was £16,138,508 (2021: £13,975,683) and expenditure of £14,334,834 (2021: £13,089,137) resulting in a net movement of funds before investment gains and losses of £1,715,872 (2021: £886,546).

Key Performance Indicators

Governors monitor a number of Key Performance Indicators (KPI) in order to gauge the ongoing performance of the School against predicted outcomes and against the wider sector. These include fee levels, pupil numbers, pupil performance in exams, income, remissions, capital expenditure, debt levels and surplus generated. KPIs are measured against budget predictions for the given year and against predicted performance in the given year as shown on the 5 Year Plan. The principle KPI is the Cash Operating Surplus as a percentage of Net Fee Income.

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KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

FINANCIAL REVIEW (continued)

Reserves Level and Policy

The School’s policy is to continue to invest in premises and equipment to support the business and educational requirements of the schools, whilst ensuring adequate financing of the School’s day to day operational needs and the maintenance of adequate reserves to meet any contingencies as they arise. Therefore, retained surpluses are not held as free reserves but are normally utilised for improvements to the School’s facilities. This policy is supported by external financing as and when necessary, allocated to specific capital projects.

Borrowings to finance the capital investments will not exceed a level at which the Governors are confident they can be serviced, based on conservative projections of income and expenditure and cash flows therefrom.

EMPLOYMENT ISSUES

Employees

Arrangements exist to keep all employees informed on matters that might concern them and information on the School’s performance and prospects are disseminated widely. All employees benefit from an appraisal process to monitor performance and identify training and development requirements. Governors have engaged with employees and had regard to employee interests in principal decision making during the year.

Employment of people with disabilities

It is the School’s policy that people with disabilities should have full and fair consideration with respect to recruitment, retention, training and personal development. Depending on their skills and abilities, they enjoy the same opportunities for career development and promotion as other employees and the same scope for realising potential.

PENSION LIABILITY

The Governors recognise the liability existing in the TPT Retirement Solutions scheme for non-teaching staff – see note 25 of the accounts. The Governors are satisfied that existing cash flows are sufficient to meet any anticipated increases in costs. The pension liability has been reported within the accounts in accordance with accounting standard FRS 102.

Having left the Teachers Pension Scheme last year, a new Defined Contribution (DC) scheme provided by Legal and General was offered to all teaching staff from 1 September 2021 with the employer contributing 19% of pensionable income to provide the benefit. Although an increase from the rate of 16.48% paid prior to 2019, this secures the liability for the foreseeable future.

HOW THE BOARD COMPLIES WITH ITS SECTION 172 DUTY

The Governors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the charity for the benefit of its members, and in doing so have regard (amongst other matters) to:

• The likely consequences of any decision in the long term.

• The interest of the charitable company’s employees.

• The need to foster the charitable company’s business relationship with suppliers, customers and others.

• The impact of the charitable company’s operations on the community and the environment.

• The desirability of the charitable company maintaining a reputation for high standards of business conduct.

• The need to act fairly as between members of the charitable company.

The Governors welcome the new reporting requirement as an opportunity to explain how dialogue with stakeholders has informed and helped to shape its decisions in promoting the success of the School to achieve its charitable purposes.

14

KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

HOW THE BOARD COMPLIES WITH ITS SECTION 172 DUTY (continued)

As set out on page 5 the schools have developed links with a wide range of organisations to ensure the widest possible access to our facilities and education. Through membership of HMC, IAPS, AGBIS, ISBA and BSA and through networking with peer groups we ensure that we are able to attain the highest standards of quality and performance. At a local level staff are engaged with business and government in order to ensure the charity meets its objectives.

The schools conduct regular surveys of their parental bodies in order to take account of the views of the charity’s key stakeholders and ensure the charity continues to deliver for them. In addition benchmarking reports are commissioned from sector specialists to ensure that governors have a clear understanding of the broader operational context in which the charity functions, so that the impact of long term factors can be properly assessed.

Arrangements exist to keep all employees informed on matters of concern to them and information on the School’s performance and prospects is disseminated widely. Senior Management are actively involved in the engagement of colleagues through weekly staff briefings that have been continued on MS Teams throughout the pandemic. Employees are briefed annually on wider issues concerning the schools and the financial performance of the charity and the outlook for the forthcoming years. Staff have the opportunity for direct communication with the Board through a staff liaison governor at each school.

Governors have taken responsibility as a Board for developing and maintaining the Covid-19 Risk Assessment to ensure that all risks of operating during the pandemic have been effectively mitigated as far as reasonably practicable. In so doing they have put the Health and Safety of all members of the community at the forefront of the School’s response to the pandemic.

The Governors are responsible for strategic planning and policymaking for the School and, accordingly, all key decisions, the current performance and future long term plans of the charity and stakeholders are referred to and taken by the Board. The School is governed by the governing body which delegates work to a number of committees. Membership of each committee is outlined on page 8. The Governors, who are also the directors, determine the general policy of the company. In the wake of the pandemic and other factors such as Brexit and evolving education policy in China, Governors have started a fundamental review of the strategy of the charity. This piece of work will set out the strategy for the Foundation for the next 5 years.

Further information can be found in the Strategic Report and the detailed review of achievements and performance for the year.

15

KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

STREAMLINED ENERGY AND CARBON REPORTING

STREAMLINED ENERGY AND CARBON REPORTING
	Previous Reporting Year 2021 tCO2e	Current Reporting Year 2022 tCO2e
Emissions from the combustion of Natural Gas	322.9	302.0
Emissions form the combustion of Liquefied Petroleum Gas (LPG)	213.2	199.2
Emissions from the combustion of Heating Oil	51.81	30.84
Emissions from fuel in school vehicles	8.52	22.3
Total of Scope 1	596.43	554.34
Emissions from purchased electricity	246.6	247.8
Total of Scope 2	246.6	247.8
Emissions from mileage reimbursed to staff	0.60	1.56
Total of Scope 3	0.60	1.56
Total gross tCO2e based on the above	843.63	803.70
Total energy consumption (Mwh)	4973	4727
Intensity ratio:
Tonnes CO2e gross based on total above per metre square of Gross Internal Area: (Tonne CO2em2), being 28,995m2	0.03	0.03
Tonnes CO2e gross based on mandatory fields above per pupil	685 Pupils	685 Pupils
	1.23	1.17

Methodology

The GHG Reporting Protocol – Corporate Standard has been used together with the 2021 and 2022 UK Government’s Conversion Factors for Company Reporting. The figures above are in line with the 2020 UK Government environmental reporting guidance, Energy Saving Opportunity Scheme (ESOS) and have been converted into carbon emissions using the 2020 UK Government Conversion Factors published by DEFRA. Carbon intensity is published annually in August/September each year, so the energy used in a calendar year and carbon generated is at the rate at the time of consumption in line with the protocol.

Although this year’s figures show a reduction in carbon produced and energy consumed it is the opinion of the Governors that it would be wrong to interpret a trend from this data due to the impact of Covid. Although carbon reduction measures continue to be implemented, both reporting years saw a closure of the schools due to the pandemic, and in 2021 in particular this occurred during the colder months when ordinarily heating would have been under highest demand. With both schools having substantial boarding communities and normally operating 7 days per week, the closure of the school and reduction in heating to minimum levels would have had a significant impact on carbon generation.

Energy data:

Energy metering, invoices, supply summaries / statements, repayment claims for business mileage, fuel cards, and correspondence with suppliers.

Previous audit data:

ESOS Phase I and Phase II.

16

KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

STREAMLINED ENERGY AND CARBON REPORTING (continued)

Energy Efficiency Action

The School continues a process of decarbonisation of the estate as follows:

• King’s School, Bruton now procures all of its electricity from renewable sources.

• The schools have a rolling maintenance programme in place to renew all boilers and heating systems to ensure they are as efficient as possible within the constraints of available funding and the real estate.

• The schools are investigating the introduction of sub-metering for gas, electricity and water, to provide much greater granularity, identify opportunities, possible waste/savings and provide more insightful data in support of Spend to Save and Net Carbon Road Mapping.

• The schools continue to install LED lighting associated with PIR sensors across both estates as refurbishment takes place in order to reduce electricity consumption.

• The trials to improve the sorting of waste within individual buildings have been successful and have been extended to the whole of King’s.

• Old windows continue to be replaced where possible with double glazed thermally efficient units. Improvements of this nature in Grade 2 listed buildings are severely curtailed by local planning and conservation constraints. In particular the introduction of conservation double glazing has not been permitted hampering he schools’ ability to improve energy efficiency.

• King’s School has formed a Eco-Group which has successfully secured Green Flag recognition.

CORPORATE GOVERNANCE AND RISK MANAGEMENT

King’s School, Bruton and its Board of Governors are committed to high standards of corporate governance.

The Governors meet at least 3 times a year and more frequently if required. The Board has a schedule of matters reserved for its decision, and the results of such deliberations are communicated through the management teams at both senior and preparatory schools, or by the Senior Warden on the Board’s behalf, to all relevant parties.

The Governors are responsible for the management of the risks faced by the schools. Detailed considerations of risk are delegated to the appropriate sub-committee with the Risk Management Committee, assisted by the Headmasters and Bursar taking a holistic view of the risk register and presenting resultant risks to the full Board for consideration. Risks are identified, assessed and controls established throughout the year. A formal review of the charity's risk management processes is undertaken on an annual basis.

The key controls used by the charity include:

• Formal agendas and detailed minutes for all committee and board activity.

• Specific sub-committee for the review and management of risk.

• Specific sub-committee for governance matters including succession planning.

• Detailed terms of reference for all committees.

• Comprehensive strategic planning, budgeting and management accounting.

• Established organisational structure and lines of reporting.

• Formal written policies.

• Vetting procedures as required by law for the protection of children.

Through the risk management processes established for the School, the Governors have concluded that the major risks continue to be potential changes to the charitable treatment of the sector in the light of the debate on public benefit and a possible downturn in the demand for independent education in line with current economic anxieties. The impact on the pandemic this year has presented a risk to fee income as a result of a fee reduction made by the School. This risk has been managed in the short term through the use of the Coronavirus Job Retention Scheme for some staff, use of reserves and curtailment of operational spending and capital investment in the estate. The Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

17

KING’S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS' REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022

GOING CONCERN

Governors have demonstrated strict cost control again this year and a positive outcome has been achieved. An outstanding teaching offer and engagement with the wider King’s Bruton and Hazlegrove communities has enhanced the reputation of the schools which has contributed to buoyant recruiting at both schools with consequent confidence for future income generation. The relationship with the charity’s bankers remains excellent and informal discussions indicate further facilities would be available if required. Analysis of the financial plan for the next 5 years has assured governors that the School remains financially robust even if pupil numbers were to take a reduction. Stress testing has been undertaken against removal of Charities Business Rates Relief. The School left the Teachers Pension Scheme (TPS) on 1 September 2021 thereby removing any future financial risk in this area. Governors have concluded that it is appropriate to prepare the accounts on a going concern basis.

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors are responsible for preparing the Annual Report and the incorporated Strategic Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of its net incoming resources for that period. In preparing these financial statements, the Governors are required to:

• Select suitable accounting policies and then apply them consistently.

• Observe the methods and principles in the charities SORP.

• Make judgements and accounting estimates that are reasonable and prudent.

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.

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

Insofar as each of the Governors of the charity at the date of approval of this report is aware there is no relevant audit information of which the company’s auditor is unaware. Each Governor has taken all of the steps that he/she should have taken as a governor in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

18

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) GOVERNORS, REPORT (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 30 JUNE 2022 AUDITOR RSM UK Audit LLP have expressed their willingness lo wnlinue in office as auditor and a resolution proposing their reappoinlmenl will be submitted to the forthcoming Annual Genefal Meeting. The Govemors, report, incorporating the Strategr Report. was approved and signed by the Board of Govemors on.....2.. 1?.. 22.... and signed on ils behalf.. S R R Edlmann, MA C R S Birrell, MA, FCA ' These $￿tionS of The Governors, Report meet the requiremenl of the incorporated Strategic Report. 19

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KING’S SCHOOL, BRUTON

Opinion

We have audited the financial statements of King’s School, Bruton (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 30 June 2022 which comprise the Consolidated Statement of Financial Activities, the Group and Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 30 June 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Governors’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

20

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KING’S SCHOOL, BRUTON

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Governors’ Report.

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

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of trustees’ remuneration specified by law are not made; or

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

21

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KING’S SCHOOL, BRUTON

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory framework that the group and parent charitable company operate in and how the group and parent charitable company are complying with the legal and regulatory framework;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from internal/external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are The Education (Independent School Standards) Regulations 2014, Keeping Children Safe in Education under section 175 of the Education Act 2002, and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and income recognition as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and performing substantive test of details over a sampling of donations.

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

Use of our report

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

KERRY GALLAGHER (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Davidson House The Forbury Reading RG1 3EU

Date 8 February 2023

22

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2022

Unrestricted Funds Notes £ Income and endowments from: Charitable activities: School fees 3 16,207,356 Ancillary trading income 4 107,794 Donations, grants and legacies: Donations 5 348,809 Grant income 5 - Other trading activites: Crown and Dolphin Enterprises Limited 7b 94,165 Investment income 6 1,605 Arising on acquisition of BSG 28 7,265,068 Total income 24,024,797 Expenditure on: Other trading activities 10 (21,149) Raising funds: Financing costs under advance fees 94,262 Marketing and fundraising 74,654 Pension finance costs 1,000 Charitable activities: Education 10 17,211,713 Total expenditure 10 17,360,480 Net income/(expenditure) before transfers and investments (losses)/gains 6,664,317 Net (losses)/gains on investments 6 - Net income/(expenditure) 6,664,317 Net movement in funds 6,664,317 Fund balances brought forward 18,180,844 Fund balances carried forward 24,845,161	Restricted Funds £ - - - 99,275 - 10,476 - 109,751 - - - - 119,741 119,741 (9,990) (49,301) (59,291) (59,291) 701,339 642,048	Endowed Funds £ - - - - - - - - - - - - - - - (38,501) (38,501) (38,501) 643,583 605,082	Total Funds 2022 £ 16,207,356 107,794 348,809 99,275 94,165 12,081 7,265,068 24,134,548 (21,149) 94,262 74,654 1,000 17,331,454 17,480,221 6,654,327 (87,802) 6,566,525 6,566,525 19,525,766 26,092,291	Total Funds 2021 £ 13,177,493 104,222 343,849 331,426 10,017 8,676 - 13,975,683 31,258 2,701 - 3,000 13,052,178 13,089,137 886,546 42,939 929,485 929,485 18,596,281 19,525,766

The notes on pages 26 to 55 form part of these financial statements

23

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEEI BAL4NCE SHEET AS AT 30 JUNE 2022 Rggistered Numbgr. 03304693 Group 2022 School 2022 Group 2021 School 2021 Notes Flxed •s$ets Tangible asse15 Investments 26,815,585 21,517,546 20,718,613 20.718,813 2,071,409 400,702 226,071 56,073 12 28,886,994 21,918,248 20,944,684 20.774,686 Current assets Stocks Debtors Cash at bank and in hand 13 14 33.565 903,355 5,054.337 24,078 830,864 4,850.651 38,415 316,144 3,817.286 29.(￿2 351.617 3,799,438 5,991,247 5,705,393 4,171,845 4.180,117 Cr•ditor8.' amounts fallirig due within one year 14.799,9411 12,953,953) 12.013,170} 12.327,9471 Not current ass8ts 1,191.306 2,751,440 2,158,675 1.852.170 Total assets less current liabiliti 30,078,300 24,669,688 23,103,359 22,626,856 Creditors.. amounts falling due after one year 18 13,902,537) 13.893,7751 13.302.593) 13.302,5931 Pension provision 27 183.4721 159.0001 1275,000} I275,0￿) Net assgts 28.092,291 2Q.716,913 19,525,766 19.049,263 Funds: Unrestricted funds Restricted funds Pemianenl endowmènt fund 19 20 21 24,845,161 19.748,577 16,180,844 18.030,736 642,048 811,917 701,339 862.108 605,082 156,419 843,583 156,419 Total funds 26,092,291 20,716,913 19,525.766 19.049,263 An unconsolid81ed Ststement of Financial Actiwlses for the school has not been produced as the sc*ool has taken advantage ol the exemplioR under section 408 of the Companies Act 2006. The school's nel income was £1.667,65012021'. nel income £981,322). The finanaal statements were approved and authorized for issue by the board of Governors ol King's School, Brulon on .12-.22 and signed on their behalf by.. S R R Edlmann, MA C R S Birrell MA, FCA The notès on pagès 26 to 55 fom part ofthèsè finanaal stat8rnents 24

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2022

Notes Cash flow from operating activities: Cash provided by operations 25 Cash received on acquisition of BSG 28 Net cash provided by operating activities: Cash flows from investing activities: Interest received Purchase of investments Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Net cash used in investing activities Cash flows from financing activities: Drawdown of new bank loan Repayment of bank loan Interest paid Amounts accrued to advance fee contracts Net cash provided by financing activities Movement in cash 16 Cash and equivalents at the beginning of the reporting period 27 Cash and equivalents at the end of the reporting period Analysis of cash and cash equivalents Cash at bank and in hand Total cash and cash equivalents	2022 £ 12,081 (718,614) (1,334,010) 10,641 830,000 (237,975) (74,404) -	2022 £ 1,798,349 950,983 2,749,332 (2,029,902) 517,621 1,237,051 3,817,286 5,054,337 5,054,337 5,054,337	2021 £ 8,676 (663,431) - - 555,000 (269,693) (51,662) 2,701	2021 £ 1,398,439 - 1,398,439 (654,755) 236,346 980,030 2,837,256 3,817,286 3,817,286 3,817,286

The notes on pages 26 to 55 form part of these financial statements

25

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1: Accounting policies

a) Charity information

King's School, Bruton is a registered charity and private company limited by guarantee in England and Wales. The registered office is King's School, Bruton, Somerset, BA10 0ED.

King's School, Bruton meets the definition of a public benefit entity under section 34 of FRS 102. The principal objectives of the school are detailed in the Governors' report found on page 4 of these financial statements.

The financial statements are prepared in sterling, which is the functional currency of the school. Monetary amounts in these financial statements are rounded to the nearest £1.

b) Basis of preparation

The financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)) (issued in October 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. The accounting policies as disclosed have been applied consistently throughout the current and preceding year.

c) Reduced disclosures

FRS 102 allows qualifying entities certain disclosure exemptions. The school only, has taken advantage of the exemptions for the following disclosure requirements:

• Section 7 - "Statement of Cash Flows" - Presentation of an entity only Statement of Cash Flow and related notes and disclosures.

• Section 11 - 'Section 11 "Basic Financial Instruments' & Section 12 'Other Financial Instrument Issues' - interest income/expenses and net gains/losses for each category of financial instrument.

d) Group financial statements

These financial statements consolidate the results of the school and its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits) on a line by line basis. All financial statements are made up to 30 June 2021.

The assets and liabilities of the subsidiaries are consolidated in the balance sheet. The gross income and gross expenditure of the subsidiaries, KSB Foundation (Company Limited by Guarantee) and Crown and Dolphin Enterprises Limited are included in the consolidated Statement of Financial Activities.

These financial statements also include the assets, liabilities and results of King's School, Bruton Trust, a registered charity which holds permanently endowed assets on behalf of the school. Under a Charity Commission Direction dated 4 July 2018, the financial statements also include the assets, liabilities and results of The Martin Barber Trust, a registered charity which holds permanently endowed assets for the purpose of income generation for the support of scholarships or bursaries, along with restricted and unrestricted reserves also connected to the support of scholarships or bursaries.

All intra-group transactions, balances and unrealised gains on transactions between group entities are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

26

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1: Accounting policies (continued)

e) Going concern

The Governors have demonstrated strict cost control again this year and despite some loss of income from discounted fees due to the closure of the schools during the second lock down a positive outcome has been achieved. An outstanding on line teaching offer and engagement with the wider King’s Bruton and Hazlegrove communities during lockdown has enhanced the reputation of the schools which has contributed to buoyant recruiting at both schools with consequent confidence for future income generation. The relationship with the charity’s bankers remains excellent and informal discussions indicate further facilities would be available if required. Analysis of the financial plan for the next 5 years has assured governors that the School remains financially robust even if pupil numbers were to take a reduction. Stress testing has been undertaken against removal of Charities Business Rates Relief. Governors have completed consultation to leave the Teachers Pension Scheme (TPS) on 1 September 2021 thereby removing any future financial risk in this area. Governors have concluded that it is appropriate to prepare the accounts on a going concern basis.

f) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the school is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

g) Income

Income is recognised in the year in which the school is entitled to receipt, it is probable it will be received and the amount can be measured reliably.

Fees receivable and charges for services and use of premises are accounted for in the year in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school from its unrestricted fund but include contributions received from restricted funds for scholarships.

Donations for the general purposes of the school are recognised when receivable and are credited to unrestricted funds. Donations subject to specific wishes of the donors are carried to relevant restricted funds. Donations where only the income can be spent are held as part of the endowment funds.

Legacies are included when it is probable that a payment will be made or property transferred that the school is entitled to and the amount of value can be reliably measured.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

The company received a discretionary cash grant of £nil (2021: £331,426) from the government as part of the Coronavirus Job Retention Scheme (CJRS) which compensates employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer). The grant is conditional upon the employees being employed and on the company PAYE payroll and the employee cannot do any work for their employer that makes money or provides services for their employer or any organisation linked or associated with their employer. There are no unfulfilled conditions or contingencies attached to the grant and the company has received no other forms of government assistance.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the school; this is normally upon notification of the interest paid or payable by the bank.

27

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1: Accounting policies (continued)

h) Expenditure

Expenditure is accounted for in the period in which it is incurred. The irrecoverable element of VAT is included within the item of expense to which it relates.

Where an item of expenditure falls directly within one cost category it is attributed to that category only. Where expenditure involves more than one category it is apportioned on a reasonable and justifiable basis. Expenditure is classified under the following activity headings:

• Cost of raising funds comprise the costs of financing under advance fees;

• Expenditure on charitable activities includes costs for the running of the school;

• Other expenditure represents those items not falling into any other heading.

i) Tangible fixed assets

Building improvements and all other fixed asset purchases in excess of £5,000 are capitalised at cost and subsequently measured at cost less accumulated depreciation and impairment.

j) Depreciation

The school does not depreciate its new-build and certain parts of its historic buildings as, in the opinion of the Governors, any depreciation charge would be immaterial due to the very long useful economic lives of such assets. Each year the school invests such significant sums as are necessary in order to maintain the long useful life of these buildings. Land and assets under construction are not depreciated.

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Charity estimates the recoverable amount of the asset. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as revaluation losses. All other impairment losses are recognised in the Statement of Financial Activities.

Other fixed assets are depreciated to residual value over their estimated useful economic life in equal annual instalments at the following rates:

l instalments at the following rates:
Freehold property with less than 50 year life	2% - 20%
Furniture, fixtures, fittings and equipment	6% - 20%
Computers	33%
Motor vehicles	25%

k) Investments

Investment property, which is property held to earn rentals and/or capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Investment property gifted to the group is measured at fair value on receipt. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities.

Trade investments are classified as financial instruments and accounted for in accordance with the accounting policy at fair value through profit or loss.

Interest in subsidiaries are initially measured at cost and subsequently measured at cost less

accumulated impairment losses.

Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in the Statement of Financial Activities.

28

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1: Accounting policies (continued)

l) Stocks

Stocks are stated at the lower of cost and net realisable value. They exclude purchases of supplies allocated to the subsequent academic year. Stock is accounted for on a First in first out (FIFO) basis.

m) Leased assets

Rentals applicable to operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged to the Statement of Financial Activities on the straight line basis over the term of the lease.

n) Taxation

The school 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 school is potentially exempt from taxation in respect of income or capital gains received within categories covered by part 11, chapter 3 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.

o) Pensions

Retirement benefits to employees of King's School, Bruton are provided by the Teachers' Pension Scheme ('TPS') and The TPT Retirement Solutions.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with King's School, Bruton in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective unit credit method. As stated in note 27, the TPS is a multi-employer scheme and King's School, Bruton is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.

The school left the TPS with effect from 1 September 2021.

The TPT Retirement Solutions is a multi-employer funded scheme whose contributions are recognised in the Statement of Financial Activities in the period to which they relate, as there is insufficient information available to use defined benefit accounting; a liability is recognised for contributions arising from an agreement with the multi-employer plan that determines how the school will fund a deficit. Contributions are discounted when they are not expected to be settled wholly within 12 months of the period end.

All other pension arrangements are defined contribution schemes where the assets of the schemes are all held separately from those of the school in an independently administered fund.

In all cases the pension cost charge represents contributions by the school to the fund.

Contributions payable to the school's defined contribution scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over the service lives of employees in the schemes. They are treated as unrestricted expenditure of the school.

p) Advance fee scheme

The school has previously offered parents the opportunity to pay boarding and tuition fees in advance in accordance with a written contract. Quotations are given based on an annual increase in fees each year. This is treated as deferred income until the pupil joins the school whereupon the fees for each school term are charged against the remaining balance and taken to income. All amounts are included in creditors split between amounts falling due within one year and amounts falling due after more than one year.

29

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1: Accounting policies (continued)

q) Acceptance deposits

Acceptance deposits are paid to the school to secure a place for the child at the school. Deposits held form part of the general funds of the school until the child leaves the school at which point they are credited without interest to the final payment of the fees or other sums due to the school.

Deposits are held as creditors on the balance sheet and are classified as owing within one year and over one year based on when they are expected to be credited against income.

r) Recognition of liabilities

Liabilities are recognised once there is a legal or constructive obligation that commits the school to the obligation.

s) Restricted funds

Income comprises gifts, legacies and grants where there is no capital retention obligation or power but only trust law restriction to some specific purpose intended by the donor.

t) Permanent endowment funds

The capital of the fund must remain intact and only the income distributed for the purpose of the fund.

u) Unrestricted funds

These are funds which can be used in accordance with the charitable objects at the discretion of the Governors.

v) Financial instruments

The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the school becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial liabilities, including trade and other payables and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Classification of financial liabilities and equity instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the school after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

w) Cash and cash equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

30

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

2: Critical accounting judgements and estimates

In the application of the school's accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Critical accounting estimates:

Non-depreciation of historical buildings

In the opinion of the Governors, the residual value of historical buildings and new builds is such that the resulting depreciation charge would be immaterial due to the very long useful economic lives of such assets. Each year the school invests such significant sums as are necessary in order to maintain the long useful life of these buildings. An annual impairment review is carried out on these assets as detailed in the Fixed assets accounting policy.

3: School fees income

Gross fees Less: total scholarship, bursaries and other fee assistance Total school fees	2022 £ 18,967,761 (2,760,405) 16,207,356	2021 £ 16,655,279 (3,477,786) 13,177,493

All school fees income in the current and prior year is unrestricted.

4: Trading income

Sundry receipts School transportation receipts Insurance commission Lettings income	2022 £ 3,197 37,697 7,430 59,470 107,794	2021 £ 26,523 30,652 4,069 42,978 104,222

All ancillary trading income in the current and prior year is unrestricted.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

5: Donations and grant income

Donations: External donations received by KSB Foundation Legacy income received Donations for Sports pavilion Donations for 2019 commemoration Fund Donations for Arnold Hayward Stevenson Bursary Sundry donations Donations for COVID impact fund Donations for Hazlegrove Science block Grant income: Turing scheme Furlough grants received	2022 £ 122 381,347 8,940 2,965 2,576 (25,843) - - 77,977 - 448,084	2021 £ 122 1,577 86,360 2,845 43,931 10,964 70,550 127,500 - 331,426 675,275

Donation income of £348,809 (2021: £10,964) is unrestricted and £21,298 (2021: £332,885) is restricted. Grant income of £nil (2021: £331,426) is unrestricted and £77,977 (2021: £nil) is restricted.

6: Investment income and gains

Bank and other interest received Investment (losses)/gains Gain on revaluation of investment property	2022 £ 12,081 (87,802) - (75,721)	2021 £ 8,676 7,401 35,538 51,615

£1,605 (2021: £8,340) of investment income is unrestricted and £10,476 (2021: £336) is restricted. Investment losses of £49,301 (2021: £7,401) are restricted and £38,501 are relating to endowed funds (2021: £nil).

32

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

7: Subsidiary undertakings’ financial results

a) KSB Foundation (Company Limited by Guarantee)

KSB Foundation was set up to promote the charitable purposes of King’s School, Bruton and the Preparatory School, Hazlegrove. KSB Foundation was incorporated in the UK on 1 November 2001 (Company Number 04314697 and with a registered office of King's School, Bruton, Somerset, BA10 0ED). It was registered with the Charity Commission on 22 March 2002 (Charity Number 1091337). KSB Foundation is a subsidiary charity of King's School, Bruton because a majority of its members are Directors of King's School, Bruton and therefore have effective control. The results of KSB Foundation have been consolidated with the school and are shown below:

Income Donations and legacies Total income Expenditure Charitable activities: Donations to King’s School and governance costs Total expenditure Net income and movement in funds Fund balances b/fwd Fund balances c/fwd	2022 £ 4,087 4,087 (3,915) (3,915) 172 7,080 7,252	2021 £ 8,441 8,441 (8,381) (8,381) 60 7,020 7,080

Also included in donations and legacies is £2,850 (2021: £2,575) received from King’s School, Bruton towards audit fees. The donations paid of £nil (2021: £4,806) were paid to King's School, Bruton. These amounts are eliminated on consolidation.

Assets of the subsidiary were:

Current assets Total net assets	2022 £ 7,252 7,252	2021 £ 7,080 7,080

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

7: Subsidiary undertakings’ financial results (continued)

b) Crown and Dolphin Enterprises Limited

Crown and Dolphin Enterprises Limited was set up to undertake the commercial activities of the school. It was incorporated in the UK on 25 September 2006 (Company Number 05945177 and with a registered office of King's School, Bruton, Somerset, BA10 0ED). King’s School, Bruton holds 100% of the issued share capital of Crown and Dolphin Enterprises Limited. The results of Crown and Dolphin Enterprises Limited have been consolidated with the school.

A summary of the results of Crown and Dolphin Enterprises Limited are shown below:

Turnover Cost of sales Gross profit Administrative expenses Profit/(loss) before interest Interest payable Profit/(loss) before taxation The assets/(liabilities) of the subsidiary were: Current assets Creditors: amounts falling due within one year Net current assets/(liabilities) Net assets/(liabilities) Capital and reserves: Called up equity share capital Profit and loss account	2022 £ 51,109 (5,671) 45,438 5,860 51,298 - 51,298 2022 £ 43,079 (43,078) 1 1 1 - 1	2021 £ 10,017 (183) 9,834 (35,636) (25,802) (12) (25,814) 2021 £ 20,195 (46,008) (25,813) (25,813) 1 (25,814) (25,813)

34

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

7. Subsidiary undertakings’ financial results (continued)

c) The Martin Barber Trust (charitable incorporated organization)

The Martin Barber Trust (charitable incorporated organisation) was set up to promote the charitable purposes of King’s School, Bruton and the Preparatory School, Hazlegrove. The Martin Barber Trust is a linked charity (linked charity registration number 1071997) and with a registered office of King's School, Bruton, Somerset, BA10 0ED). It was registered with the Charity Commission on 24 April 2018 (Charity Number 1178069).

Income Donations Rental income Total income Expenditure Charitable activities: Donations to King's School and governance costs Total expenditure Net income and movement in funds Net gain on revaluation of investment property Net loss on revaluation of investments Fund balances b/fwd Fund balances c/fwd The assets of the subsidiary were: Fixed assets Current assets Total net assets	2022 £ 990 10,476 11,466 (1,632) (1,632) 9,834 - (38,501) 495,524 466,857 2022 £ 458,125 8,732 466,857	2021 £ 1,000 8,340 9,340 (1,672) (1,672) 7,668 35,538 - 452,318 495,524 2021 £ 170,000 325,524 495,524

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

7. Subsidiary undertakings’ financial results (continued)

d) Bruton School for Girls

Bruton School for Girls (charitable company limited by guarantee) (Company Number 4094352) was acquired by way of control agreement on 28 February 2022. The registered office is Bruton School for Girls, Sunny Hill, Bruton, Somerset, BA10 0NT.

Income Charitable activities Other trading activities Investment income Total income Expenditure Raising funds School operating costs Total expenditure Net income and movement in funds Net losses on investments Net movement in funds Fund balances b/fwd Fund balances c/fwd The assets of the subsidiary were: Fixed assets Current assets Current liabilities Long term creditors Total net assets	10 months to 30 June 2022 £ 2,819,899 1,048,609 17 3,868,525 229,272 5,482,780 5,712,052 (1,843,527) (188,060) (2,031,587) 5,252,361 3,220,774 2022 £ 4,880,745 233,415 (1,860,182) (33,234) 3,220,774

36

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

7. Subsidiary undertakings’ financial results (continued)

e)

The Bruton Girls’ School Company Limited

The Bruton Girls’ School Company Limited, a subsidiary of Bruton School for Girls (Company Number 03107892). The registered office is Bruton School for Girls, Sunny Hill, Bruton, Somerset, BA10 0NT.

	10 months to
	30 June
	2022
	£
Turnover	43,144
Cost of sales	-
Gross profit	43,144
Administrative expenses	(2,039)
Profit before taxation	41,105
The assets of the subsidiary were:
	2022
	£
Current assets	50,766
Current liabilities	(50,283)
Total net assets	3,220,774

37

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

8: Net income

The net income for the year is stated after charging/(crediting):

The net income for the year is stated after charging/(crediting):
	2022	2021
	£	£
Depreciation of assets
- owned assets	556,397	530,831
Hire of plant and machinery	-	90,489
Interest payable on bank loans	74,404	51,662
Pension finance costs	1,000	3,000
Pension provision movement	(217,000)	(72,000)
Auditors remuneration:
Fees payable to the Group's auditors for the audit of King's School, Bruton	20,000	14,550
Fees payable to the Group's auditors in respect of:
- The auditing of the financial statements of the subsidiaries	26,150	5,150
- All other services	26,850	8,475

No Governors or persons connected with them received any remuneration in the year (2021: nil).

No Governor received reimbursement for travel and other expenses during the year totalling £nil (2021: nil).

9: Staff costs

2022 £ Wages and salaries 8,764,356 Social security costs 754,573 Pension contributions 892,037 Termination and redundancy payments 1,339,427 11,750,393	2021 £ 7,523,727 665,473 1,147,756 21,621 9,358,577

In the prior year, severance staff costs of £nil (2021: £21,621) were paid in order to achieve appropriate staffing for the schools. Staff costs includes the cost of peripatetic staff of £253,689 (2021: £292,805). These staff are excluded from the employee numbers below.

As a result of the closure of Bruton School for Girls, redundancy payments were accrued in respect of 91 members of staff.

The number of employees in the year, including part time staff and excluding Governors, is broken down into the following categories:-

Trading company Teaching Welfare Premises Support	Average Number of Employees 2022 Number 2021 Number 3 2 189 157 112 113 35 30 58 45 397 347

38

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

9: Staff costs (continued)

The number of employees whose total annual emoluments (excluding pension contributions) fell within the following bands were:-

following bands were:-
	2022	2021
	Number	Number
£60,000 - £70,000	5	3
£70,001 - £80,000	1	1
£90,001 - £100,000	1	1
£100,001 – 110,000	1	-
£120,000 - £130,000	1	1

The total employee benefits paid to key management personnel of the school is disclosed in note 26 to these financial statements.

10: Analysis of expenditure

Staff costs £ Other costs £ Depreciation £ Raising funds: Financing costs under advance fees - 94,262 - Pension scheme finance costs 1,000 - - Marketing and publicity 34,055 40,599 - Trading subsidiaries (28,908) 7,759 - 6,147 142,620 - Charitable activities: Teaching 7,175,375 790,256 171,358 Welfare 1,624,250 1,417,124 7,500 Premises 546,452 1,516,671 377,539 Support 2,398,169 1,306,760 - 11,744,246 5,030,811 556,397 Total for the Group 11,750,393 5,173,431 556,397	Total 2022 £ 94,262 1,000 74,654 (21,149) 148,767 8,136,989 3,048,874 2,440,662 3,704,929 17,331,454 17,480,221	Total 2021 £ 2,701 3,000 - 31,258 36,959 6,727,629 2,518,185 1,885,795 1,920,569 13,052,178 13,089,137

Expenditure of £119,741 (2021: £55,673) relates to restricted expenditure with the remainder being unrestricted.

39

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

10: Analysis of expenditure (continued)

Analysis of support costs

Educational £ Marketing £ Staff costs 2,248,784 149,385 Finance and administration 773,990 113,509 ICT infrastructure 255,148 - Travel costs 121,190 - Restricted expenditure 21,718 - Governor costs - - Audit and accountancy - - 3,420,830 262,894 11: Tangible fixed assets Group Freehold Assets Land and under Buildings Construction £ £ Costs: At 1 July 2021 24,156,111 - Additions 1,196,736 - Acquisitions through business combinations 5,330,000 - Transfer - - Disposals (10,641) - At 30 June 2022 30,672,206 - Depreciation: At 1 July 2021 4,134,313 - Charged in the year 322,706 - At 30 June 2022 4,457,019 - Net Book Value: At 30 June 2022 26,215,187 - At 30 June 2021 20,021,798 -	Governance £ - - - - - 1,783 19,422 21,205 Furniture, fittings, computers & equipment £ 4,573,674 137,274 - - - 4,710,948 3,894,768 222,826 4,117,594 593,354 678,906		Total 2022 £ 2,398,169 887,499 255,148 121,190 21,718 1,783 19,422 3,704,929 Motor Vehicles £ 204,417 - - - - 204,417 186,508 10,865 197,373 7,044 17,909	Total 2021 £ 1,008,010 486,410 222,713 114,813 55,673 2,772 30,178 1,920,569 Total £ 28,934,202 1,334,010 5,330,000 - (10,641) 35,587,571 8,215,589 556,397 8,771,986 26,815,585 20,718,613

All tangible fixed assets are used in the direct furtherance of the school’s objectives.

The legal title of freehold land and buildings with a net book value of £801,790 (2021: £801,790) is held in the name of the incorporated School, King’s School, Bruton (Charity No. 1071997). The legal title to the remainder of the freehold land and buildings is held by the unincorporated charity, King’s School, Bruton Trust (Charity No. 1071997 - 1).

40

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

11: Tangible fixed assets (continued)

School Costs: At 1 July 2021 Additions Transfer At 30 June 2022 Depreciation: At 1 July 2021 Charged in the year At 30 June 2022 Net Book Value: At 30 June 2022 At 30 June 2021 Fixed asset investments Listed investments Shares in subsidiary companies Investment properties	Furniture, fittings, Freehold Assets computers Land and under & Buildings Construction equipment £ £ £ 24,156,111 - 4,573,674 1,196,736 - 137,274 - - - 25,352,847 - 4,710,948 4,134,313 - 3,894,768 305,496 - 221,627 4,439,809 - 4,116,395 20,913,038 - 594,553 20,021,798 - 678,906 Group 2022 £ School 2022 £ 731,409 400,700 - 2 1,340,000 - 2,071,409 400,702	Motor Vehicles £ 204,417 - - 204,417 186,508 7,954 194,462 9,955 17,909 Group 2021 £ 56,071 - 170,000 226,071	Total £ 28,934,202 1,334,010 - 30,268,212 8,215,589 535,077 8,750,666 21,517,546 20,718,613 School 2021 £ 56,071 2 - 56,073

12: Fixed asset investments

41

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

12: Fixed asset investments (continued)

a) Listed investments

Market value brought forward Acquisitions through business combinations Purchased during year Net (losses)/gains Market value carried forward Book cost carried forward All investments held are listed in the UK. b) Shares in subsidiary company Shares in Crown and Dolphin Enterprises Limited Shares in King’s School Bruton International Limited	Group 2022 £ 56,071 42,586 718,614 (85,862) 731,409 766,275	School 2022 £ 56,071 - 393,930 (49,301) 400,700 399,005	Group 2021 £ 48,670 - - 7,401 56,071 5,075 2022 £ 1 1	School 2021 £ 48,670 - - 7,401 56,071 5,075 2021 £ 1 1

b) Shares in subsidiary company

The registered office of both subsidiaries above is King's School, Bruton, Somerset, BA10 0ED. King's School Bruton International Limited is dormant.

42

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

12: Fixed asset investments (continued)

c) Investment properties

Fair value: At 1 July 2021 Acquisitions through business combination Revaluations At 30 June 2022 Impairment: At 1 July 2021 At 30 June 2022 Net Book Value: At 30 June 2022 At 30 June 2021	Total £ 170,000 1,170,000 -
	1,340,000
	-
	-
	1,340,000
	-

The fair value has been based on market valuation provided to the Governors from Savills who are not connected to the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Governors consider this valuation to be representation of the market value of the properties at the year end.

The investment property is held within the group. The school holds no investment property.

13: Stocks

Finished goods and goods for sale	Group 2022 £ 33,555	School 2022 £ 24,078	Group 2021 £ 38,415	School 2021 £ 29,062

14: Debtors: falling due within one year

Fees Other debtors Prepayments and accrued income Other amounts due from group undertakings	Group 2022 £ 177,095 51,607 674,653 - 903,355	School 2022 £ 175,445 16,612 633,653 4,954 830,664	Group 2021 £ 142,274 986 172,884 - 316,144	School 2021 £ 142,274 936 172,859 35,548 351,617

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

15: Creditors: amounts falling due within one year

Group 2022 £ School 2022 £ Group 2021 £ Bank loans and overdrafts 260,502 260,502 236,596 Trade creditors 895,693 765,223 529,347 Taxation and social security 199,987 199,213 178,941 Amounts due to pension schemes 124,443 124,443 142,095 Other creditors 545,923 456,622 235,281 Accruals and deferred income 2,773,393 1,109,136 690,910 Other amounts due to group undertakings - 38,814 - 4,799,941 2,953,953 2,013,170

School 2021 £ 236,596 527,905 178,941 142,095 235,281 681,604 325,525 2,327,947

Included within the group's accruals and deferred income is £48,476 (2021: £70,448) in relation to school fees paid in advance and £10,000 (2021: £5,500) in relation to deposits for future events.

16: Creditors: amounts falling due after more than one year (Group and School)

Group 2022 £ School 2022 £ Group 2021 £ Bank loans 3,295,537 3,295,537 2,727,418 Parents’ deposits 598,238 598,238 575,175 Contractual obligation 8,762 - - 3,902,537 3,893,775 3,302,593	School 2021 £ 2,727,418 575,175 - 3,302,593

A secured bank loan was taken out in December 2013 to part finance the new Teaching and Learning Centre at Hazlegrove, the Fitzjames. It is repayable in equal termly instalments over 10 years from draw down. Interest on the loan is payable at bank base rate plus 2%. Changed to 1.15% over base rate.

A secured bank loan was taken out in February 2018 to part finance The Rectory/Glebe. It is repayable in equal termly instalments over 25 years from draw down.

A secured bank loan was taken out in February 2018 to part finance The Music School. It is repayable in equal termly instalments over 20 years from draw down. Interest on the loan is payable at 2.5%.

A secured loan was taken out in December 2020 to purchase 1 Wellesley Green for living accommodation for the House Mistress. It is repayable in instalments over 25 years from draw down. Interest on the loan is payable at 1.66%.

A secured loan was taken out in April 2022 to purchase Walford House, which is currently rented to staff members. The loan is repayable in equal instalments for 25 years from drawdown. Interest on the loan is payable at 1.90% over base rate.

All loans are secured by way of a debenture comprising a fixed and floating charge over the school's assets and undertakings.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

17: Borrowings (Group and School)

Bank loans Payable within one year Payable after one year Greater than five years payable by instalments See note 16 for details of bank loans. Advance fees scheme (Group and School) Shown as: Amounts due within one year (note 15)	2022 £ 3,556,039 3,556,039 260,502 3,295,537 3,556,039 2,240,616 2022 £ -	2021 £ 2,964,014 2,964,014 236,596 2,727,418 2,964,014 2,485,993 2021 £ -

18: Advance fees scheme (Group and School)

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

Balance brought forward Amounts accrued to contracts as debt-financing costs Amount utilised in payment of fees Balance carried forward	2022 £ - - - - -	2021 £ 231,540 2,701 234,241 (234,241) -

45

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

19. Unrestricted funds: movement in the year

Group

2022

Balance at 30 June 2021 £ Income £ Expenditure £ School – general fund 18,030,736 15,903,804 (14,024,950) Acquisition of new subsidiaries treated as donated income - 7,265,068 - KSB Foundation – general fund - 3,965 (3,915) Martin Barber Trust – general fund (11,944) 990 (990) Group charity fund 18,018,792 23,173,827 (14,029,855) Non-charitable trading funds (25,813) 51,021 277 17,992,979 23,224,848 (14,029,578) Eliminated on consolidation 187,865 (23,954) 23,890 Bruton School for Girls - 780,759 (3,352,753) Bruton Girls’ School Company Ltd - 43,144 (2,039) Group 18,180,844 24,024,797 (17,360,480) 2021 Balance at 30 June 2020 £ Income £ Expenditure £ School – general fund 17,403,578 13,624,503 (12,997,345) KSB Foundation – general fund 62 8,319 (8,381) Martin Barber Trust – general fund (11,944) 1,000 (1,000) Group charity fund 17,391,696 13,633,822 (13,006,726) Non-charitable trading funds 1 10,017 (35,831) 17,391,697 13,643,839 (13,042,557) Eliminated on consolidation 188,153 (9,381) 9,093 Group 17,579,850 13,634,458 (13,033,464)	Gains/ (losses) Transfers £ 25,485 - - - 25,485 (25,485) - - - - - Gains/ (losses) Transfers £ - - - - - - - -	Balance at 30 June 2022 £ 19,935,075 7,265,068 50 (11,944) 27,188,249 - 27,188,249 187,801 (2,571,994) 41,105 24,845,161 Balance at 30 June 2021 £ 18,030,736 - (11,944) 18,018,792 (25,813) 17,992,979 187,865 18,180,844

46

KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

20: Restricted funds: movement in the year

2022

The Scholarship and Prize Fund Courtyard works – Fitzjames Fitzjames Theatre 2019 Commemoration Fund Arnold Hayward Stevenson Bursary John Davie Room Refurbishment Old Brutonian Golf Society Art Gallery Sports Pavilion The 2021 Covid Impact Fund HZG Science Block Donation All other funds less than £1,000 School KBS Foundation funds for: John Davie Room Refurbishment Fitzjames Extension Martin Barber Trust Bruton School for Girls Turing Scheme Eliminated on consolidation Group	Balance brought forward £ 55,071 16,000 5,238 24,936 393,931 3,029 697 14,508 203,616 15,550 127,500 2,032 862,108 890 6,190 7,080 20,304 - 20,304 (188,153) 701,339	Income £ Expenditure £ Investment gains/ (losses) & transfers £ 6,347 46,434 (49,301) - - - - - - 2,965 - - 2,576 (46,434) - - - - - - - - - - 8,940 - - - (21,718) - - - - 348 (348) - 21,176 (22,066) (49,301) - - - 122 - - 122 - - 10,476 (642) - 77,977 (77,977) - 88,453 (78,619) - - (19,056) - 109,751 (119,741) (49,301)	Balance Carried forward £ 58,551 16,000 5,238 27,901 350,073 3,029 697 14,508 212,556 (6,168) 127,500 2,032 811,917 890 6,312 7,202 30,138 - 30,138 (207,209) 642,048

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

20: Restricted funds: movement in the year (continued)

2021

The Scholarship and Prize Fund Courtyard works – Fitzjames Fitzjames Theatre 2019 Commemoration Fund Arnold Hayward Stevenson Bursary John Davie Room Refurbishment Old Brutonian Golf Society Art Gallery Sports Pavilion The 2021 Covid Impact Fund HZG Science Block Donation All other funds less than £1,000 School KBS Foundation funds for: John Davie Room Refurbishment Fitzjames Extension Martin Barber Trust Eliminated on consolidation Group	Balance brought forward £ 46,093 16,000 5,238 22,092 350,000 3,029 697 14,508 117,256 - - 2,032 576,945 890 6,068 6,958 12,636 12,636 (188,153) 408,386	Income £ Expenditure £ 1,577 - - - - - 2,845 (1) 43,931 - - - - - - - 86,360 - 70,550 (55,000) 127,500 - - - 332,763 (55,001) - - 122 - 122 - 8,340 (672) 8,340 (672) - - 341,225 (55,673)	Investment gains/ (losses) & transfers £ 7,401 - - - - - - - - - - - 7,401 - - - - - - 7,401	Balance Carried forward £ 55,071 16,000 5,238 24,936 393,931 3,029 697 14,508 203,616 15,550 127,500 2,032 862,108 890 6,190 7,080 20,304 20,304 (188,153) 701,339

The Scholarship and Prize Fund was set up from donations received to provide income for pupil scholarships and prizes.

The Fitzjames Theatre Fund comprises gifts restricted by donors to the Foundation for making improvements to the stage and auditorium of the theatre at King’s School, Bruton.

The 2019 Commemoration Fund was established for fund raising for the school's Five Hundredth Anniversary celebrations.

The Arnold Hayward Stevenson Bursary Fund was set up from donations received to enable a gifted pupil with potential to further education in art or architecture or the history of art or architecture, to attend the school as an Art or Art History Scholar, who might otherwise not be able to afford to do so.

The John Davie Room Refurbishment Fund was established to raise monies towards the costs of refurbishment of the John Davie Room, the next stage in the Memorial Hall Refurbishment Project.

The Old Brutonian Golf Society Fund is set up to contribute to the cost of golf tuition for King's School pupils.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

20: Restricted funds: movement in the year (continued)

The Art Gallery fund comprises gifts to the Foundation restricted by donors to build a gallery in the school Design Centre (King’s Bruton) for exhibitions of students’ art and the work of artists in the local community.

The 2021 Covid Impact Fund was set up through donations from Old Brutonians in order to support families specifically affected by the pandemic who otherwise would not have been able to continue to afford to send their children to the school.

The Hazlegrove Science Block fund is a donation specifically for the refurbishment and purchase of equipment for the Science facilities at Hazlegrove.

The Fitzjames Extension fund comprises gifts to the Foundation restricted by donors to provide a purposebuilt fitness suite and gymnasium and separate these activities from the school theatre (King’s Bruton) which is housed in the same building.

The Martin Barber Trust was set up in the prior year to fund scholarships or bursaries for children living within the boundaries of the parish of Bruton, Somerset, or a child of a former pupil of King's School, Bruton, to enable them to be educated at King's School, Bruton.

The Turing Scheme was established by the Department for Education in 2021 as a student exchange scheme, and to provide funding for international opportunities.

21: Endowment funds: movement in the year (Group and School)

2022

Permanent endowment – endowment properties Martin Barber Trust 2021 Permanent endowment – endowment properties Martin Barber Trust	Balance brought forward £ 156,419 487,164 643,583 Balance brought forward £ 156,419 451,626 608,045	Income £ Expenditure £ - - - - - - Income £ Expenditure £ - - - - - -	Investment losses £ - (38,501) (38,501) Investment gains/ (losses) & transfers £ - 35,538 35,538	Balance Carried forward £ 156,419 448,663 605,082 Balance Carried forward £ 156,419 487,164 643,583

Certain School properties have been identified as permanent endowment assets and are shown separately as a permanent endowment fund.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

22: Analysis of net assets between funds

Group

2022 Unrestricted Funds £ Restricted funds £ Endowment funds £ Tangible fixed assets 26,659,166 - 156,419 Investments 1,340,000 561,409 170,000 Current assets 5,631,945 80,639 278,663 Liabilities (8,785,950) - - 24,845,161 642,048 605,082 2021 Unrestricted funds £ Restricted funds £ Endowment funds £ Tangible fixed assets 20,562,194 - 156,419 Investments - 56,071 170,000 Current assets 3,209,413 645,268 317,164 Liabilities (5,590,763) - - 18,180,844 701,339 643,583

Total funds £ 26,815,585 2,071,409 5,991,247 (8,785,950) 26,092,291 Total funds £ 20,718,613 226,071 4,171,845 (5,590,763) 19,525,766

School

2022 Unrestricted Funds £ Restricted funds £ Endowment funds £ Tangible fixed assets 21,361,127 - 156,419 Investments - 400,702 - Current assets 5,294,178 411,215 - Liabilities (6,906,728) - - 19,748,577 811,917 156,419 2021 Unrestricted funds £ Restricted funds £ Endowment funds £ Tangible fixed assets 20,562,194 - 156,419 Investments - 56,071 170,000 Current assets 3,209,413 645,268 317,164 Liabilities (5,590,763) - - 18,180,844 701,339 643,583

Total funds £ 21,517,546 400,702 5,705,393 (6,906,728) 20,716,913 Total funds £ 20,718,613 226,071 4,171,845 (5,590,763) 19,525,766

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

23: Operating lease commitments

At 30 June 2021 the total of the group's future minimum lease payments under non-cancellable operating leases was:

eases was:
	2022	2021
	£	£
Amounts due in one year	127,825	86,169
Amounts due between one and five years	152,076	87,007

24: Capital commitments

There were no capital commitments at 30 June 2022 (2021: £77,634 in relation to the deposit on a science refurbishment that started in July 2021).

25: Reconciliation of net income to net cash inflow from operating activities

Net income Non-operating cashflows eliminated: Interest received Income arising on acquisition of BSG Interest payable Gain on investments Depreciation Gain on revaluation of investment property Finance cost pension provision Pension provision movement Decrease in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors Analysis of changes in Net Debt Cash at bank and in hand Borrowings excluding overdrafts	1 July 2021 3,817,286 (2,964,014) 853,272	2022 £ 6,566,525 (12,081) (7,265,068) 74,404 85,862 556,397 - 1,000 (216,800) 4,860 (587,211) 2,590,461 1,798,349 Cashflows 1,237,051 (592,025) 645,026	2021 £ 929,485 (8,676) - 51,662 (7,401) 530,831 (35,538) 3,000 (72,000) 5,547 335,021 (333,492) 1,398,439 30 June 2022 5,054,337 (3,556,039) 1,498,298

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

26: Related party transactions

The key management personnel of the school and Group are detailed in the Governors' Report. The total remuneration for these personnel in the year was £980,501 (2021: £753,243).

Transactions with group undertakings (School)

During the year the school gave a £2,850 (2021: £2,575) donation to its subsidiary KSB Foundation which was used against the audit fees. During the year the school received a donation of £nil from KSB Foundation (2021: £4,806). At the year end there were no outstanding balances (2021: £nil).

During the year the school recharged £34,904 (2021: £35,787) to its subsidiary Crown & Dolphin Enterprises Limited for payroll costs. At the year end the school was due £25,841 (2021: £35,260).

During the year the school received £10,476 (2021: £8,340) on behalf of its subsidiary The Martin Barber Trust in respect to donations made to them and paid £642 (2021: £672) of legal and maintenance fees on their behalf. At the 30 June 2021 King's School, Bruton was holding £326,626 on behalf of the Martin Barber Trust in relation to The Martin Barber Legacy. During the year ended 30 June 2022 King's School, Bruton invested this sum under the instruction of The Martin Barber Trust. At the year end £8,732 (2021: £325,524) is due to the subsidiary.

On 28 February 2022, King's School, Bruton acquired control of Bruton School for Girls Limited and its subsidiary Bruton Girls School Trading Company Limited. The cost of the acquisition comprised cash consideration of £nil. Refer to note 28 for further detail.

During the year the school paid £7,755 (2021: £nil) to its subsidiary Bruton School for Girls Limited, in relation to the usage of the subsidiary’s minibus facilities. At the year end there were no outstanding balances (2021: £nil).

27: Pension schemes

The school operates a defined contribution scheme operated by Legal and General. Up until 31 August 2021 the school participated in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £237,197 (2021: £954,334) and at the year-end £28,497 (2021: £112,695) was accrued in respect of contributions to this scheme.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions 2014. Membership is automatic for teachers. All teachers have the option to optout of the TPS following enrolment. The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. The school has accounted for its contributions to the scheme as if it were a defined contribution scheme. The school has set out below the information available on the scheme.

Valuation of the Teachers' Pensions Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

• Total scheme liabilities for service (pensions currently payable and the estimated cost of future benefits) of £218 billion

• Value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) of £196 billion

• Notional past service deficit of £22 billion

• Discount rate is 2.4% in excess of CPI

As a result of the valuation, new employer contribution rates were set at 23.68% (including a 0.08% administration levy) of pensionable pay from September 2019 onwards (compared to 16.48% during 2018/19). The next valuation result is due to be implemented from 1 April 2023.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

27: Pension schemes (continued)

Valuation of the Teachers' Pensions Scheme (continued)

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. King's School, Bruton has accounted for its contributions to the scheme as if it were a defined contribution scheme. King's School, Bruton has set out above the information available on the scheme.

With effect from 1 September 2021 the school left the TPS.

The TPT Retirement Solutions

Non-academic staff are entitled to contribute to a pension scheme known as The TPT Retirement Solutions. This is a multi-employer pension plan and in most respects is a money purchase arrangement, although it has in the past included certain guarantee elements as described below. The same scheme has been used for Auto Enrolment (staging date February 2014) although at lower contribution levels (as below).

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.

The rules of the Plan allow for the declaration of bonuses and/or investment credits if this is within the financial capacity of the Plan assessed on a prudent basis. Bonuses/investment credits are not guaranteed and are declared at the discretion of the Plan’s Trustee.

The Trustee commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing the assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.

The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions.

If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these.

The rules of the Plan state that the proportion of obligatory contributions to be borne by the member and the member’s employer shall be determined by agreement between them. Such agreement shall require the employer to pay part of such contributions and may provide that the employer shall pay the whole of them.

The school paid contributions at a rate of 8.75% (2% for Auto Enrolment) of member salaries during the year. The cost for the year was £184,404 (2021: £263,735) and the outstanding contributions at the balance sheet date were £22,757 (2021 £29,100.)

As at the balance sheet date there were 139 (2021: 158) active members of the Plan employed by the school, of whom 50 (2021: 50) were in the Auto Enrolment scheme. The school continues to offer membership of the Plan to its employees.

It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multiemployer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of the Plan’s total assets. In accordance with FRS 102 the plan is accounted for as defined contribution scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers top pay additional contributions to the scheme.

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

27: Pension schemes (continued)

The TPT Retirement Solutions (continued)

Where the scheme is in deficit and where the school has agreed to a deficit funding arrangement the school recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed below. The unwinding of the discount rate is recognised as a finance cost and any periodic re-estimation of the deficit funding is recognised directly in income and expenditure:

Pension provision	Group 2022 £ 83,472 83,472	School 2022 £ 59,000 59,000	Group 2021 £ School 2021 £ 275,000 275,000 275,000 275,000

Reconciliation of pension provision

Provision at the start of the period Acquisition through business combinations Unwinding of discount factor Utilised in year Decrease due to change in discount rate Provision at the end of the period	Group 2022 £ School 2022 £ 275,000 275,000 24,472 - 1,000 1,000 (63,000) (63,000) (154,000) (154,000) 83,472 59,000	Group 2021 £ 344,000 - 3,000 (72,000) - 275,000	School 2021 £ 344,000 - 3,000 (72,000) - 275,000

The Pensions Regulator has the power under Part 3 of the Pensions Act 2004 to issue scheme funding directions where it believes that the actuarial valuation assumptions and/or recovery plan are inappropriate. For example, the Regulator could require that the Trustee strengthens the actuarial assumptions (which would increase the Plan liabilities and hence impact on the recovery plan) or impose a schedule of contributions on the Plan (which would effectively amend the terms of the recovery plan). A copy of the recovery plan in respect of the September 2011 valuation was forwarded to The Pensions Regulator on 2 October 2012, as is required by legislation.

The scheme is classified as a 'last-man standing arrangement'. Therefore the school is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. The participating employers are therefore, jointly and severally liable for the deficit in respect of TPT Retirement Solutions.

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KING'S SCHOOL, BRUTON (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

28: Acquisitions

On 28 February 2022, King's School, Bruton acquired control of Bruton School for Girls Limited and its subsidiary Bruton Girls School Trading Company Limited. The cost of the acquisition comprised cash consideration of £nil. The substance of the acquisition is that of a gift and it has been accounted for under the purchase method in the consolidated financial statements of the group. The assets and liabilities were valued at their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised as a net gain in the Statement of Financial Activities.

The following table sets out the fair values of the identifiable assets and liabilities acquired and an analysis of their recognition in the Statement of Financial Activities:

Tangible fixed assets Investment properties Listed investments Cash Total assets Pension liability Other net liabilities Total liabilities Consideration Gain on acquisition	Net book value Fair value adjustments Fair value at the date of acquisition £ £ £ 3,731,930 1,598,070 5,330,000 1,475,000 (305,000) 1,170,000 42,586 - 42,586 950,983 - 950,983 6,200,499 1,293,070 7,493,569 (109,840) - (109,840) (118,661) - (118,661) (228,501) - (228,501) - - - 5,971,998 1,293,070 7,265,068

Consolidated income and consolidated profit after tax comprise income of £730,972 and loss after tax of £2,414,415 contributed by Bruton School for Girls and Bruton Girls School Trading Company Limited between the date of its acquisition and 30 June 2022.

55