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← Peter Harrison Foundation

2025-05-31-accounts

PETER “| FOUNDATIONHARRISON

Report and Consolidated Financial Statements

Year Ended

31 May 2025

PETER HARRISON FOUNDATION

Annual report and consolidated financial statements for the year ended 31 May 2025

Contents

Page: I Report ofthe trustees
7 Reportofthe independent auditors
I Consolidated Statement ofFinancial Activities
12 Consolidated Balance Sheet
13 Balance Sheet
14 Consolidated Statement of Cash Flows
15 Notes forming part ofthe financial statements
Trustees JC Harrison-Lee LL.B
PJG Lee DL LL.B
N P Harrison
B Dolbear (appointed 15 October 2024)
C P Underhill (appointed 15 October2024)
Director S J Ridley
Principal office Second Floor, Foundation House, 42-48 London Road, Reigate,
Surrey, RH2 9QQ
Bankers Coutts& Co, 440 Strand, London WC2R0QS
Bank of Scotland, The Mound, Edinburgh EH 1YZ
Auditor Moore Kingston Smith LLP, Betchworth House, 57-65 Station
Road, Redhill, Surrey, RHI IDL
Solicitors Withers, 16 Old Bailey, London, EC4M7EG
Charityregistrationnumber 1076579

PETER HARRISON FOUNDATION

Report of the trustees for the year ended 31 May 2025

The Trustees of the Peter Harrison Foundation present their report together with the consolidated financial statements for the year ended 31 May 2025. 1. Structure, governance and management The Peter Harrison Foundation is an independent grant-making trust that supports registered charities and Community Amateur Sports Clubs (CASCs) in the United Kingdom. The Foundation was established by trust deed on 29 April 1999 with an original gift of £1,000 as the initial endowment fund. A donation from the founder of £386,401 was credited to unrestricted income funds in the financial period to 31 May 2000.

During the year to 31 May 2001, the Foundation was gifted £30,000,000 of loan notes on 10 October 2000 by the Peter Harrison KGCN CBE family settlements. The Trustees encashed the loan notes on 15 April 2001. During the year to 31 May 2002 a further endowment of £590,417 was gifted by the Peter Harrison KGCN CBE family settlements, which has been credited to the expendable endowment fund.

On 9 March 2011 a further £15,000,000 was gifted by the Peter Harrison A Settlement Discretionary Fund. These gifts have been added to the original endowment fund for investment and generation of income for annual distribution. The endowment gift fund may be distributed at the Trustees’ discretion, but the current policy is to maintain the value of this capital while distributing income of approximately £1.5 million annually for charitable purposes. The Foundation’s wholly owned subsidiary company PHF Investments Limited holds investment properties and loans for property development. Profits made by PHF Investments Limited are donated to the Foundation. PHF Investments Limited’s loans for property development are held with Chancerygate Limited and Chancerygate Investment Property Limited and the investment properties are managed by Chancerygate Limited. Both Chancerygate Limited and Chancerygate Investment Property Limited are related parties, details of which are disclosed in note 13 to the financial statements. The Trustees meet four times a year when they review the operation of the Foundation and consider grant applications. The Trustees delegate the day to day running of the Foundation to the Foundation Director who reports to the Trustees. A small team of staff supports the Director and during the year there was one part-time Grants Administrator. The Trustees devote time and effort to keep abreast of the latest developments in the charitable sector. The founder and former Chairman of the Foundation passed away on 18 June 2021. Peter was generous, warm hearted and is much missed by his family and fellow Trustees as well as many of the beneficiaries of the Foundation's grants. The Foundation lives on in memory of Peter and the current Trustees continue the work he began with such generosity of spirit.

Since its founding, all Trustees of PHF have been family members. Following the passing of Peter Harrison in 2021, the Trustees recognised the need to bring in new, independent members to the Board. This decision aimed to not only expand the number of people involved but also to enhance the skills and experience within the Board.

To achieve this, the Trustees conducted a skills audit to identify the Board's strengths and areas for improvement. A role description was then developed, detailing the responsibilities, time commitment, and specific skills and experience required. A comprehensive recruitment pack was also created, providing information about the Foundation, the role of Trustees, and the skills being sought.

Our recruitment strategy prioritised attracting individuals with diverse perspectives and expertise aligned with the charity’s mission and strategic objectives. Trustee vacancies were advertised across public platforms, charity sector networks, and through our own contacts to ensure a broad and diverse pool of candidates.

Candidates were shortlisted by the recruitment committee, and those selected were invited to interview with the full Board. Following this selection process two new trustees were appointed on 15 October 2024. Upon appointment, the new Trustees underwent a comprehensive induction process, including meetings with staff and current Trustees, and a thorough introduction to the charity’s governance framework, policies, financial standing, and key activities. Trustees also receive published guidance from the Charity Commission. Ongoing training and development opportunities are provided to ensure Trustees remain informed and effective in their roles.

As outlined in the Trustees’ terms of reference, independent Trustees are required to commit to a minimum term of three years, with the possibility of serving up to nine years across three consecutive terms. Family Trustees, however, do not have a time limit on their tenure. All Trustees serve in a voluntary capacity, adhering to the charity’s conflict of interest policies and regularly declaring any relevant interests.

Remuneration of key management personnel is set at a level which promotes staff morale and retention whilst bearing in mind the charitable purposes of the Foundation. Remuneration is reviewed annually by one of the Trustees.

1

Report of the trustees for the year ended 31 May 2025 (continued)

PETER HARRISON FOUNDATION

  1. Objectives and activities Under the terms of the Trust Deed, the objects of the Foundation are wide and provide that funds are “applied for such charitable institutions or such other objects which are charitable in accordance with the laws of England and Wales as the Trustees may in their absolute discretion select.” The Foundation's vision, mission and objectives are set out below: The Foundation's vision is a society in which all people have access to opportunities to achieve their potential. Its mission is to improve lives by supporting opportunities that enable people who are physically, mentally, socially or economically disadvantaged to achieve their potential.

The Foundation's objectives are to support inspiring and entrepreneurial organisations and projects that create a legacy that improves lives by providing access to opportunities that enable people who are physically, mentally, socially or economically disadvantaged to achieve their potential. The Trustees have also articulated four key values of the Foundation: ‘ Excellence - Supporting and implementing best practice. - Entrepreneurship - Operating with ambition, inspiration and determination, * Integrity - Acting responsibly, respectfully, reflectively and transparently. ‘ Sustainability - Empowering stakeholders to deliver a lasting legacy. During the year the Trustees’ strategies for achieving the objectives of the Foundation were to: * investigate thoroughly all requests for grants; ‘fund projects that meet the Foundation’s objectives and embody the Foundation's values; ‘maintain the value of the endowment fund; * maximise income; and, ‘ distribute income of approximately £1.5 million per annum.

Programmes

During the year the Foundation had three principal grant-making programmes:

a) Opportunities through sport and physical activity

The Foundation supported projects that create access to opportunities for sport and physical activity at a grassroots level that enable people across the UK who are physically, mentally, socially or economically disadvantaged to develop personal and life skills to fulfil their potential. Applications were accepted from charities and CASCs throughout the United Kingdom. Grant awards for this programme were usually up to £30,000. b) Positive futures for children and young people

The Foundation supported projects that enhance the lives of children and young people in deprived areas of the Southeast who are physically, mentally, or socially disadvantaged. Applications were accepted from charities and CASCs in the following counties: Berkshire; Buckinghamshire; Hampshire; Isle of Wight; Kent; Oxfordshire; Surrey; East Sussex; and West Sussex. Grant awards for this programme were usually up to £30,000.

c) Trustees’ Discretion

This programme supports projects of particular interest to the Trustees that may fall outside the Foundation’s main programmes; such funding is still in accordance with the terms of the Trust Deed. A part of this programme supports the provision of educational facilities and bursary places for children within an 8 mile radius of Reigate Grammar School to enable them to attend the school. The Trustees do not invite applications to this programme.

Grant-making policy

The Foundation only makes grants to registered UK charities and Community Amateur Sports Clubs (CASCs).

During the year the Trustees made grants according to publicly available guidelines that set out the details of the grant-making programmes and the application process. This information, an eligibility checker and an initial application form could be found on the Foundation’s website at www.peterharrisonfoundation.org. All outline projects that met the funding criteria were assessed by the Director and the Grants Administrator. The Director then undertakes a full review, often includinga call or a site visit, for the purpose of assessing grant applications under consideration. A shortlist of applications were invited to submit more detailed information to be considered by Trustees. The Director prepared reports on all applications for consideration by the Trustees and grants were approved by the Trustees. During the last year 8% of grant applications were successful in being approved by the Trustees.

Ongoing projects are monitored on a regular basis and grantees are asked to submit a report on completed projects.

2

Revort of[the][trustees][for][the][vear][ended][31][Mav][2025][(continued)] 3. Achievements and performance Opportunities through sport and physical activity, £790,500 53 grants were made to UK charities, primarily in the field of disability sport. The principal awards were:

PETER HARRISON FOUNDATION

£30,000 to Access Sport: towards Changing Places London: Transforming disabled young people's lives through community sport £30,000 to Alliance of Sport: towards the Get Well Stay Well initiative £30,000 to Bexley Voluntary Service Council: towards the core costs of the Bexley Disability Sport (and physical activity) Network

£30,000 to Community Integrated Care: towards the core cost of a programme integrating physical activily and sports into care services £30,000 to Scaramouche Sailing Trust: towards the core costs of[the][Nautical][Pathways][Programme]

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||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |£30,000|to Prison|Radio|Association:|towards core|costs of radio|project|to|improve|the wellbeing of prisoners|through|physical|activity| |£30,000 to Mahdlo (Oldham|Youth|Zonc):|towards|the|NextGen|Leaders|in|Spart programme|in Oldham, a two-year|initiative designed|to| |empower young|pcople|through|sports|and|tcadership training| |£28,500|10 Activity|Alliance:|towards|the|creation|and dissemination|of ontinc|"Inclusive|Events and|Inclusive|Voluntccring|Learning| |Modules”| |£20,000|to Nottingham|Hospitals|Charity:|towards|an accessible|cycling programme|at|the National|Rehabilitation|Centre|for people|with| |severe,|life|changing|disabililics| |£20,000|to|Active|Essex|Foundation:|towards|core|cost|of delivering|the|Sports and Youth Crime|Prevention programme| |£20,000|to|Shropshire Cricket|Board:|towards|the|Spinal|Cord|Injury|(SCT)|Project,|a collaboration|between|the|Robert Jones &|Agnes Hunt| |Orthopaedic|Hospital|and|Shropshire|Cricket|Board| |£20,000 to Sickle|Cell & Thalassaemia|Support|Project:|towards|the Active|Wellness|Initiative|for young people with|for|Sickle|cell|disease| |or Thalassaemia| |£20,000|to National|Axial|Spondyloarthritis|Society|(NASS):|towards|a|Great|Yarmouth-based|initialive designed|to remove|barriers|to| |physical|activity|and|foster|a supportive community|for people|with|Axial|Spondyloarthritis| |£20,000|10 The|Elfrida|Society:|towards The|Inclusive|Sports|for People|of All|Abilities|project,|including|its|training programme|

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Positive futures for children and young people, £378,000 Grants were made to 23 charitics. The principal awards were: £30,000 to Stepping Stencs DS: towards the School Outreach Programme to ensure children with Down Syndrome thrive in education £30,000 to Buckinghamshire Disability Service (BuDs): towards the SEND Transitions project, providing support to disabled children, young people and their familics during key educational and developmental transitions £30,000 to Lifelites: towards the 'Giving Children with Life-Limiting Conditions and Complex Disabilities a Voice’ project, delivering bespoke assistive and inclusive technology packages to children's hospices across the South East £30,000 to National Day Nurscrics Association: towards core funding for the carly education of disadvantaged children with Special Educational Needs and/or Disabilities (SEND) in the South East of England, especially 129 childcare settings across that are ranked 1-2 on the Index of Multiple Deprivation £25,000 to Brighton PIP Lid: towards the costs of the Attachment and Biobchavioural Catch-up programme £23,000 to Sport in Mind; towards “Youth Activities to Improve Mental Wellbeing" Project to support young people from some of[the][most] deprived areas in Berkshire, Buckinghamshire, and Hampshire £20,000 to Launch It Trust: towards the Masters Housc initiative at Launch ft Kent £20,000 to Amaze: towards the core cost of the Amazing Futures programme to help young people (14-25yrs) with SEND have a more positive transition to adulthood £20,000 to The Mason Foundation: towards delivery of the Propel programme to provide young adults with leaming disabilities and/or ncurodivergence in Buckinghamshire with workplace oppertunitics £20,000 to Team Domenica: towards the core costs of Team Domenica's Employment Team to enable them to deliver supported work experience, internships and employment opportunities for young people with learning disabilities £20,000 to Carers First: towards core funding of the Young Carers Count Project, improving educational oulcomes, emotional wellbcing, and resilicnce for young carers in Medway. Trustees Discretion: Education, £113,568 In the past the Foundation has provided bursaries cnabling gifled children to attend Reigate Grammar School (‘RGS') irrespective of family income. These bursarics comprise 4 committment to pay these children’s school fees until their education at RGS ends. The introduction of VAT on schoo! fees has meant that this commitment has increased by £113,568. The Trustees will honour their commitment to pay fees for those pupils already awarded bursaries but have decided nat to provide bursaries to RGS in future.

3

Report ofthe[ trustees][for][ the][year][ ended][3f] May[2025][(continued)]

PETER HARRISON FOUNDATION

3. Achievements and performance (continued)

Trustees' Discretion: Other £243,000

Grants were made to 30 charities, the largest donations of which were:

£125,000 to Community Foundation for Surrey: Peter Harrison Foundation Community Fund

£30,000 to Theodora Children's Charity; towards Giggle Doctor visits at the Royal Marsden Hospital

£25,000 to The Orpheus Centre Trust: towards The Orpheus Sewage System

The Trustees have referred to the Charity Commission's guidance on public benefit when reviewing their vision, mission and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the vision, mission and objectives they have set. The Trustees believe that, taken together, these grants meet the objective of supporting inspiring and entrepreneurial organisations and projects that create a legacy that improves lives by providing access to opportunities that enable people who are physically, mentally, socially or economically disadvantaged to achieve their potential.

4. Future plans

During the year, the Trustees undertook a comprehensive review of our grantmaking approach, informed by informal consultations with both grant seekers and current grantees. This examination followed an unprecedented demand for support, with only about 7% of applications being successful, Trustees recognise the time and resources organisations invest in preparing grant applications and want to avoid charities spending their valuable time on applications when the likelihood of success is so low. The Foundation’s revised funding strategy is designed to improve our impact and strengthen our ability to deliver our charitable objectives. Our mission remains clear: to empower individuals with disabilities or significant disadvantages to reach their full potential.

Our refreshed approach emphasises building capacity within the charitable sector through a dual-layered funding model:

The Foundation will operate on an invitation-only basis, and we expect this approach to remain in place for the foresecable future. Foundation staff will proactively identify partners whose missions align with our goal of supporting life-changing opportunities for those most in need. We anticipate that initially most of our partners will be organisations that have previously received funding from the Foundation.

Foundation staff will monitor progress against agreed objectives and gather feedback to refine our approach over time. We are committed to listening, adapting, and working responsively to cnsure our support delivers the greatest possible impact.

We will continue to share updatcs through our website.

5. Financial review

The financial statements consolidate the results of the Foundation with those of its subsidiary, PHF Investments Limited, for the year ended 31 May 2025.

(i) Total gross income

Total gross income for the year amounted to £3,076,392 (2024: £2,857, 196).

The unrestricted income fund received interest from property development loans of £871,343 (2024: £919,795), rental income of £1,219,370 (2024: £1,155,764) and income from listed investments of £442,789 (2024: £426,425). The Teport on investments below explains the movement in types of investment and hence the changes in income.

(ii) Charitable grants awarded

In order to maintain the value of the cndowment and thereby enable future grant making the Trustees have decided that current grant making from the unrestricted fund be limited to circa £1.5 million (see Section 6 below), Afler duc consideration and assessment the Trustees awarded grants for the ycar of £1,500,068 (2024: £1.475,308) from the unrestricted fund, In addition grants of £ni! (2024: £30,500) were made from the expendable endowment funds during the year, Details of the principal grants given are shown in scction 3 above.

4

PETER HARRISON FOUNDATION

Report of the trustees for the year ended 31 May 2025 (continued)

§. Financial review (continued)

(iii) Investments

The Trustees’ overall investment objective is to achicve sufficicnt total returns to fund ils existing grant programme whilst also protecting the capital value of its assets for the benefit of future beneficiaries.

The Foundation's principal investments comprise investment properties, property development loans and managed investment funds. To take advantage of[the][relatively][high][interest][rales][currently][ available][£12,306,576][(2024:][£6,319,692)][of][ the][Foundation's cash][is][ managed][ by] Cazenove Capital. Investment propertics are bought and soid depending on market conditions and opportunities arising. No propertics were bought or sold during the year, There was a £300,000 lass (2024: £75,000 gain) in the valuation of the properties, with one properly accounting for £250,000 of the loss, the fall reflecting a reduction in current investment yields for the particular business carried out at that property . The Trustees are fully aware of market volatility but are also conscious thal the Foundation's properties are mainly held to provide income to fund the charity's grant programme and are prepared to take a long term view. The Trustees continue to monitor the position, balancing the need for income against possible long term falls in capital value. The property market continues to be challenging and the Trustees consider opportunities that provide a reasonable return with an acceptable level of risk.

The Foundation has made loans to fund property developments which carn interest and, on certain developments, also entitle the Foundation to a share of any development profits, but not of any losses. The interest on these loans is payable quarterly which provides the Foundation with regular income from which to fund grants. For one of the loans the developer has decided to hold the property long term and consequently the profit share that is duc on the sale of[the][property][will][not][ be][realised][for][ some][Gime.][It][has][ been][agreed][that][the][ estimated] profit of£850,000 on that development be treated as a loan, the loan bearing interest until it is repaid. Apart from this no new loans were taken out during the ycar (2024: two new loans amounting to £7,000,000) and there was one loan repayment of £4,600,000 (2024: no loan repayments). The net reduction in loans during the year meant that the interest received similarly cll.

The Foundation has invested in various charity pooled funds, which are held primarily to generate income to finance the payment of grants. The returns on these funds tend not to be as great as those on the Foundation's property related investments, however the income from the property related investments can fluctuate particularly when properties arc sold or loans repaid and it can take time before new properties can be acquired or new loans made. The charity pooled funds tend ta provide more consistent income. The value of the funds rose by £156,019 (2024: £817,326) during the year. The Foundation and its subsidiary held cash at the year end of £13,108,239 (2024: £7,033,633). The increase in cash largely arose from the repayment ofa property development loan during the year. The cash held is more than the charity needs to mect its commitments and operating costs and consequently a proportion is under the management of Cazenove Capital! {sce above) pending other investment opportunities.

The Tnustccs regularly monitor the Foundation’s investments and cash reserves with view to balancing prudence with the necd to gencrate income. In so doing the Trustees consider the risks associated with cach class of investment, bearing in mind the risks inherent with those particular assets and the wider cconomic risks arising. The Trustees consider that the present mix provides a reasonable balance of returns with an acceptable level of risk but continue to kecp the charity's assets under revicw. The Trustees consider that the charity’s investments and the income these investments gencrate should be sufficient to mect the charity's present obligations and also ensure its ability to continue to make grants in the long term.

6. Reserves policy

The Trustees arc conscious of the recent high rates of inflation and the impact this has had on the real value of the Foundation's reserves. If the reserves of £51,026,416 at 31 May 2021 were to be maintained in line with the Consumer Price Index they would necd to have increased to £12,595,710 by 3] May 2025. The reserves at 31 May 2025 were in fact £56,767,905 - a shortfall of £6,854,221. The Trustees are acutely awarc of[the][ growing][ demand][for][ funding][to][support][life-changing opportunities][for][ people][with][disabilities][and] those affected by poverty. They are also mindful of the impact that inflation and market conditions have had on the Foundation’s reserves. Balancing these considerations, the Trustees have taken a long-term view. Since 2021, the Foundation has awarded grants at a stcady rate of approximately £(.5 million per year. This approach reflects the Trustees’ commitment to meeting current needs while ensuring that the Foundation remains sustainable and capable of supporting future gencrations. The Trustees review this policy regularly and remain open to adjusting it in response to changing circumstances. Their priority is to steward the Foundation’s resources responsibly while continuing to support organisations delivering meaningful and lasting change in their communities.

5

PETER HARRISON FOUNDATION

Report ofthe[trustees][for][ the][ year][ ended][ 31] May[2025][(continued)]

7. Legal and administrative

The Legal and Administrative Information set out after the title page forms part of the Report. The financial statements comply with current Statutory requirements, the Trust Decd, and present accounting regulations. The Foundation is constituted under a Trust Deed dated 29 April 1999 and was registered as a charity in England and Wales on 15 July 1999 under registration number 1076579, The governing body is the Board of Trustees, Future trustees must be appointed by resolution of the Trustees.

  1. Risk management The Trustecs acknowledge their responsibilities and recognise that good practice includes consideration and reporting of risk management. The Trustecs have examined the major strategic, business and operational risks involved in the Foundation’s activitics and have conducted a risk assessment,

The Trustecs have identified and considered potential risks under the following categories:

The Trustees have reviewed and assessed the potential impact of the major risks identified and have noted the steps taken to mitigate those tisks. The Trustees are confident that currently there are no medium or high risks to the Foundation and the likelihood of such risks arising is low. Any significant changes in procedures have a risk assessment made prior to implementation. Regular reviews of the risk assessment arc made prior to meetings of the Trustees.

9, Statement of Trustees‘ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS [02 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Foundation and of the income and expenditure of the Foundation for that period. In preparing these financial statements the Trustees are required to:

' select suitable accounting policies and then apply them consistently;

‘observe the methods and principles in the Charities SORP;

‘make judgements and estimates thal are reasonable and prudent; and,

" prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position ofthe Foundation and to enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the asscts of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

  1. Auditors Moore Kingston Smith LLP have indicated their willingness to continue in office and it is proposed that they be re-appointed auditors for the ensuing year.

On behalf of the Board

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6

PETER HARRISON FOUNDATION

Independent Auditor's Report to the Trustees of the Peter Harrison Foundation

Opinion

We have audited the financial statements of the Peter Harrison Foundation for the year ended 31 May 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Cash Flow Statement 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 (02 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). ;

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK)) and applicable law. Our responsibilitics under those standards are further described in the Auditor’s Responsibilitics for the audit of the financial statements section of our report. We arc independent of the charity in accordance with the cthical 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 cthical responsibilities in accordance with these requirements. We believe that the audit cvidence 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 Irustees’ 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 cvents or conditions that, individually or collectively, may cast significant doubt on the group and charity's ability to continue as a going concer for a period of at Icast twelve months from when the financial statements are authorised for issuc. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon, The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do nol 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 materia! inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

/

PETER HARRISON FOUNDATION

Independent Auditor’s Report to the Trustees of the Peter Harrison Foundation (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concer and using the going concern basis of accounting unless the trustees cither intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charitics Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether duc to fraud or error, and to issuc an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantec 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 agercgate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

‘ Identify and assess the risks of material misstatement of the financial statements, whether duc to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a materia! misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

8

PETER HARRISON FOUNDATION

Independent Auditor’s Report to the Trustees of the Peter Harrison Foundation (continued)

Auditor’s responsihilitics for the audit of the financial statements (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audil,

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, arc instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularitics, including fraud is detailed below.

The objectives of our audit in respect of fraud, arc; to identify and assess the risks of material misstatement of the financial statements duc to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks ofmatcrial misstatement duc to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and charity.

Our approach was as follows: - we obtained an understanding of[the][legal][and][regulatory][requirements][applicable][to][the][charity][through] the use of permanent audit file information, updated this year for any changes that have been identified by management or by our own investigations and considered that the most significant are the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council;

9

19 December 2025

PETER HARRISON FOUNDATION

Consolidated Statement of Financial Activities for the year ended 31 May 2025

Notes 2025 2025 2025 2024
.
Garestnicted
incomefund		 Expendable
endowment
funds		 Total Total
£ £ £ £
Income from:
Donation 2 0 12,839 12,839 0
Investments and cash deposits 3 1,836,876 7,307 1,844,183 1,701,432
Rental income 4 1,219,370 0 = 1,219,370 1,155,764
Total income 3,056,246 20,146 3,076,392 2,857,196
Expenditure on:
Raising funds:
Rental activity 4 105,772 0 105,772 136,481
Charitable activities 5 1,745,379 0 1,745,379 1,726,654
Total expenditure 1,851,151 0 = 1,851,151 1,863,135
Netoperating income 1,205,095 20,146 1,225,241 994,061
Net realised investment gain 7 850,000 0 850,000 476,234
Net unrealised invesiment losses (2024: gains) 7 (143,981) 0 (143,981) 892,326
Net income and net movement in funds 1,911,114 20,146 1,931,260 2,362,621
Reconciliation of funds
Funds brought forward I 9,678,888 45,157,757 54,836,645 52,474,024
Fundscarriedforward 1! 11,590,002 45,177,903 56,767,905 54,836,645

All amounts relate to continuing activities.

All recognised gains and losses arc included in the statement of financial activities, The notes on pages 15 to 26 form part of these financial statements.

il

PETER HARRISON FOUNDATION

Consolidated Batance Sheet as at 31 May 2025

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Notes|2025|2024| |£|£|£|£| |Fixed|assets| |Managed|investment|funds|7|11,909,972|11,753,953| |Investment properties|7|17,025,000|17,325,000| |Loans|7|15,350,000|19,100,000| |Total|investments|44,284,972|48,178,953| |Intangible|fixed asscts|8|50,695|74,308| |Total|fixed|asscts|44,335,667|48,253,261| |Current|assets| |Debtors|9|482,054|968,007| |Cash|at|bank|and|in|hand| |Cash|and|bank|balances|31,390|30,500| |Short|term|deposits|13,076,849|7,003,133| |13,590,293|8,001,640| |Creditors:|amounts|falling|due|within|one year| |Charitablei|grants|providedided|aand contracted;|for,|5|(217,294)|(384,884)| |but|not|paid| |Other creditors|10|(527,937)|(502,636)| |(745,231)|(887,520)| |Net current|assets|12,845,062|7,114,120| |Total|assets|less|current liabilities|$7,180,729|$5,367,381| |Creditors:|amounts|payable|after more|than|one|year| |Charitable|grants|provided|and|contracted|for,| |but not|paid|5|(412,824)|(530,736)| |Net assets|$6,767,905|54,836,645| |Expendable endowments| |Lindowment|gifis|l1|45,00! ,000|45,001,000| |Expendable endowment|gifl|Ul|176,903|156,757| |45,177,903|45,157,757| |Income|funds| |Unrestricted|income|fund|1|11,590,002|9,678,888| |Total expendable endowment and income|funds|56,767,905|54,836,645| |The|notes|on|pages|15|to|26|form|part of thesc|financial|statements.| |These|financial|statements|were reviewed|and|approved|by|the|Board|ofTrustees, on|7|

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Trustee,
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12

PETER HARRISON FOUNDATION

Balance Sheet as at 31 May 2025

Balance SheetSheet as at 3131 May 2025
Notes 2025 2024
£ £ £ £
Fixed assets
Managed investment funds 7 11,909,972 11,753,953
Loan tosubsidiarycompany 7 29,800,000 34,800,000
Investment in subsidiarycompany 7 1,000 1,000
Total investments 41,710,972 46,554,953
Intangible fixedassets 8 50,695 74,308
Total fixed assets 41,761,667 46,629,261
Current assets
Debtors 9 1,253,853 395,924
Cash at bank and in hand
Cash and bank balances 21,390 20,500
Shorttermdeposits 12,851,596 6,916,007
14,126,839 7,332,43
Creditors: amounts fallingduewithin one year
Charitabl
i
:
haritab¢grants,providedandcontracted, but
not paid		 5 (217,294) (384,884)
Othercreditors 10 (27,202) (24,117)
(244,496) (409,001)
Netcurrent assets 13,882,343 6,923,430
Total assets less current liabilities 55,644,010 53,552,691
Creditors: amounts payable aftermore than one year
Charitable grants, provided and contracted, but
notpaid 5 (412,824) (530,736)
Netassets $5,231,186 $3,021,955
—— ——:—:———
Expendable endowments
Endowmentgifts ll 45,001,000 45,001,000
Expendableendowment gift ll 176,903 156,757
45,177,903 45,157,757
Income funds
Unrestricted income fund 1] 10,053 283 7,864,198
Totalexpendableendowmentand income funds 55,231,186 53,021,955
ee -——_____—_.
-=}

The notes on pages 15 to 26 form part of[these][financial][statements.] These financial statements were reviewed and approved by the Board of Trustecs, on

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\
Trustee
C P UaderW\
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4 >
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13

PETER HARRISON FOUNDATION

Consolidated Statement of Cash Flows for the year ended 31 May 2025

2025 2025 2024 2024
£ £ £ £
Netincome for thereporting period 1,931,260 2,362,621
Adjustments for:
Realisedgains on investments (850,000) (476,234)
Unrealised losses (2024: gains) on investments 143,981 (892,326)
Income reccivable from investments and cash deposits (1,844,183) (1,701,432)
Rents reccivable from invesiments (1,219,370) (1,155,764)
Amortisation 25,778 6,200
Increase in debtors (1,912) (259,504)
Decrease in creditors (257,536) (295,209)
Netcash usedby operating activities (2,071,982) (2,411,648)
Cash flows from investing activities:
Dividend distributions and interest received 1,846,439 1,669,711
Rent reccived 1,226,080 1,435,222
Proceeds from investment loan repayments 5,076,234 0
Investment loans made 0 (7,000,000)
Purchaseofintangible fixed asset (2,165) (68,808)
Deposit inmedium term bank deposit 0 750,000
Netcash provided by investing activities 8,146,588 (3,213,875)
Change incash in the reportingperiod 6,074,606 (5,625,523)
Cash atthebeginning ofthe reportingperiod 7,033,633 12,659,156
Cash attheend of the reportingperiod 13,108,239 7,033,633
Analysisof cash 31 May 2025 31 May2024
£ £
Cash and bank balances 31,390 30,500
Short term deposits 13,076,849 7,003,133
13,108,239 7,033,633

The notes on pages 15 to 26 form part of these financial statements.

14

PETER HARRISON FOUNDATION

Notes forming part of the consolidated financial statements for the year ended 31 May 2025

1 Accounting policies

Basis ofpreparation and assessment ofgoing concern

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments at market value, and are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective | January 2015 (‘the SORP’), FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102"), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements are prepared in Sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest Pound.

The Foundation constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertaintics about the Foundation’s ability to continue as a going concern. The most significant area of uncertainty is the valuation of the Foundation's investment properties, however, these form only part of the Foundation's net asscts and with the Foundation’s cash balances exceeding its grant commitments and other liabilities there is no risk that the Foundation cannot mect its current obligations, The Trustees are confident of the Foundation’s ability to continue as a going concern for at least twelve months from the date of approval of these financial statements.

Critical accounting estimates and areas of[judgment]

In preparing financial statements it is necessary to make certain judgments, estimates and assumptions that affect the amounts recognised in the financial statements. ‘The trustees consider that the valuation of the subsidiary’s investment properties is the only amount which requircs judgment and cstimation and that could have a significant effect on the financial statements. The investment propertics’ valuations are bascd on advice from the subsidiary’s property consultants of their view of the market value at the year end, Property valuations necessarily require judgment however the subsidiary's property consultants are experts in their ficld and the trustees consider that the risk of a material misstatement is unlikely to occur. Furthermore, the impact of a misstatement would not affect the ability of the Foundation to mect its grant commitments as the Foundation’s cash balances and readily realisable investments are sufficient to settle its grant commitments in full.

Group financial statements

These financial statements consolidate the results of the charity and its wholly owned subsidiary PHF Investments Limited on a line by line basis. A separate statement of financial activitics, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by the Charitics SORP FRS 102.

Income

Income is accounted for gross in the period in which the Foundation is entitled to reccipt. Fees for the management of the Foundation’s cash deposits arc netted against the interest receivable on these deposits as ihe fees are immaterial.

Expenditure

All expenditure is included on an accruals basis.

Support costs comprise costs for processing grant applications, including support to actual and potential applicants, together with governance costs meeting constitutional and statutory requirements which include the cost of Trustee meclings and audil fecs. Where costs cannot be directly attributed to either of these categories an apportionment is made based on estimated staff time.

15

PETER HARRISON FOUNDATION

Notes forming part of the consolidated financial statements for the year ended 31 May 2025 (continued)

1 Accounting policies (continued)

Charitable grants charged in the year are as follows:

(a) Awarded by the Trustees, and all contractual conditions met in the year.

(b) Awarded by the Trustces in the previous year for which the contractual terms have been met in the current year.

Fixed asset investments Investment properties arc stated at their estimated market value. No depreciation is provided on investment properties.

The managed investment funds are stated at their listed price.

Loans for property development are stated at cost less Provision for diminution in value. The property development loans carn interest and, for certain of the loans, a share of any net development profit, but not of any losses. The share of net development profits is accounted for when they can be determined with reasonable certainty.

The Foundation’s investment in its subsidiary undertaking, PHF Investments Limited, is unquoted and shown at cost. As consolidated financial statements are presented, and in view of the disclosures in notes 4 and 7 regarding the subsidiary, the Trustees do not believe that estimating the market value of the this investment and including this valuc on charity Balance Shect would be relevant to users’ understanding of the accounts. As a result the investment is presented at historic cost.

The Statement of Financial Activities includes realised gains and losses from investments that have been sold and unrealised gains and losses arising from the revaluation of investments that are still held. Intangible fixed assets Intangible fixed assets comprise set up costs for the charity's grant database and management system. Intangible fixed assets are stated at cost and depreciated ona straight line basis over three years once the system is fully operational.

Otherfinancial instruments a) Cash and cash equivalents Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity datc of three months or less. b) Debtors and creditors Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one ycar and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment, discounted at a market rate of interest. Grants payable after more than one year are not considered to be financial instruments as they are non-contractual in nature and consequently are not measured at their present value. Expendable endowment funds

Where funds are given to be held as endowments, they are shown as expendable cadowment funds in the financial statements. Expendable endowments are those where the trust terms provide for conversion to income under certain circumstances. Of the endowment funds £150,445 (2024: £131,413) is restricted 10 grants in accordance with the late founder's known interests (sce note 2) and £176,903 (2024: £156,757) is restricted to expenditure subject to the donor’s approval.

16

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

2 Donations received The estate ofPeter Harrison donated £12,839 (2024: Enil) to one of the Foundation's expendable endowment funds. The late Peter Elarrison was also chairman and Trustee of the Foundation until his death on 18 June 2021. The Trustees intend to make grants in accordance with Peter Harrison's known interests from the expendable endowment fund in memory of Peter Harrison.

3 Income from investments and cash deposits

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|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Income|from|listed|investments|442,789|426,425| |Interest|receivable|from|loans|for|property|development|871,343|919,795| |Interest|reccivable|from|bank|deposits|and|other deposit|accounts:| |Unrestricted|income|fund|$22,744|347,581| |1,836,876|1,693,801| |Expendable|endowment|fund|7,307|7,631| |1,844,183|1,701,432| |=|—E|

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All of the income shown above, other than the interest receivable for the expendable endowment fund, is attributable to the unrestricted income fund in both ycars.

4 Subsidiary company

The wholly owned subsidiary, PHF Investments Limited pays the lower of a) tts taxable profits and b) the amount that can be lawfully distributed to the charity under a Deed of Covenant. A summary of the subsidiary's results is shown below:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Rental|income|1,219,370|1,155,764| |Interest|receivable|890,290|963,676| |Operating expenses|for|rental|activitics|(105,772)|(136,481)| |Fair|value|tosses (2024:|gains)|on|investment properties|(300,000)|75,000| |Other operating|expenses|(12,859)|(14,709)| |Intercst|payable on sharcholder|loans|(1,623,975)|(2,057,753)| |Share|of net development|profit|on|loans|850,000|476,234| |Profit on|ordinary|activities|917,054|461,731| |Donation|payable|to|parent charily|(1,#95,025)|(363,296)| |Loss (2024:|profit)|retained|in|the|subsidiary|(277,971)|98,435|

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All of the income and expenditure of PHF Investments Limited, including rental income and rental expenditure, is allributable to the unrestricted income fund in both years.

WV

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

5 Charitable activities

Grants
awarded		 Support
costs		 Total
£ £ £
2025
Opportunitics through sportandphysical activity 790,500 121,509 912,009
Positive futures for children andyoung pcople 378,000 52,730 430,730
Trustees’ Discretion - Unrestricted income fund: education 113,568 2,293 115,861
« Unrestricted income fund: other 243,000 68,779 311.779
- Expendable cndowment funds 0 0 0
[css grantsawarded in previous years not taken up (25,000) 0 (25,000)
1,500,068 245,311 1,745,379
iE ———————e eee
2024
Opportunities through sport and physical activity 789,539 139,369 928,908
Positive futures for children andyoung people 381,300 $7,892 439,192
Trustecs* Diserction —- Unrestricted income fund: education 163,969 10,720 174,689
~ Unrestricted income fund: other 165,500 12,865 178,365
- Expendable endowment funds 30,500 0 30,500
Less grants awarded in previous years nat taken up (25,000) 0 (25,000)
1,505,808 220,846 1,726,654

The support costs have been apportioned to grants awarded on the basis of the number of grants awarded, except for expendable endowment funds where expenditure is subject to the donor’s approval.

Reconciliation of grants provided or reserved:

Reconciliation of grantsgrants provided or reserved:
2025 2024
£ £
Grants awarded during the year 1,500,068 1,505,808
Add charitable grants awarded and contracted in previous year but not paid
at 31 May 2024 915,620 1,286,139
2,415,688 2,791,947
Charitablegrants paidduringthe year (1,785,570) (1,876,327)
Charitable grants provided and contracted for but notpaid at 3! May 2025 630,118 915,620
Charitable grants provided and contracted forbut not paid comprise.
Grants payable aftermore than one year but within five years 382,389 $05,374
Grants payable after five years 30,435 25,362
Grants payable aftermore than onc year 412,824 530,736
Grants payable during the next year 217,294 384,884
630,118 915,620

18

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

6 Support costs

Grant-making Governance Totalsupport
2025 costs costs costs
£ £ £
Staffcasts
Gross salaries 82,887 3,872 86,759
Employer’s National Insurance
Pension		 6,841
3,315		 320
155		 7,161
3,470
Staffrecruitmentand training 100 0 100
93,143 4,347 97,490
Professional fees
Audit fees 0 28,229 28,229
Legalandprofessional fees
Websileconsultancy		 0
1,600		 2,945
0		 2,945
1,600
1,600 31,174 32,774
Premises costs
Rent 20,803 972 21,775
Rates
Premisesmanagement		 11,812
9,809		 552
458		 12,364
10,267
42,424 1,982 44,406
Officecosts 42,86! 2,002 44,863
Amortisation ofintangible assets 24,628 1,150 25,778
204,656 40,655 245,311

Support costs comprise costs for processing grant applications, including support to actual and potential applicants, together with governance costs meeting constitutional and statutory requirements which include the cost of Trustee meetings and audil fees. Where costs cannot be directly attributed to either of these calegories an apportionment is made based on estimated staff time.

No Trustee received any remuneration or was reimbursed for expenses incurred on the activities of the Foundation. The average number of persons employed during the year was 2 (2024: 2), all employees are part time being equivalent to 1.2 (2024: 1,2) full time employees, All employee time is involved in providing either support to the governance of the charity or support services to charitable activities. The Trustees consider the Foundation’s key management personnel comprise the Trustees and the Director. The total employment benefits of the key management personnel were £60,120 (2024: £55,441). One (2024: none) employee's emoluments excecded £60,000.

19

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

6 Support costs (continued)

2024 Grant-making
costs		 Governance
costs		 Totalsupport
costs
£ £ £
Staffcosts
Gross salaries 77,524 3,770 81,294
Employer’s National Insurance 6,932 337 7,269
Pension 3,101 15l 3,252
Staffrecruitmentand training 150 0 150
87,707 4,258 91,965
Professional fees
Audit fees 0 28,431 28,431
Legalandprofessional fees 0 5,250 5,250
0 33,681 33,681
Premises costs
Rent 19,424 945 20,369
Rates 13,137 639 13,776
Premises management 8,400 409 8,809
40,961 1,993 42,954
Offficecosts 43,91) 2,135 46,046
Amortisation ofintangible assets $,912 288 6,200
178,49]
——SansosemaaeSeSe=e		 42,355
OUI		 220,846
Oe

20

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

7 Investments
G
sroup		 Managed
investment funds		 Investment
properties		 Loans Totalfor
group
£ £ £ £
Cost and valuation
At
 June 2024 11,753,953 17,325,000 19,100,000
Additions
Disposals		 0
0		 0
0		 850,000
(4,600,000)		 850,000
(4,600,000)
Revaluation gains;{losses) NS6,019 ____(300,000) 143,981)
At 3t May2025 11,909,972 17,025,000 15,350,000 44,284,972
Historic cost
At31 May2025 10,500,000 16,307,689 15,350,000 42,157,689
At 31 May2024 10,500,000 16,307,689 19,100,000 45,907,689
Managed Investment in Loan to Total for
Charity investment funds subsidiary subsidiary charity
company company
£ £ £ £
Cost and valuation
At
 June 2024 13,753,953 1,000 34,800,000
Additions 0 0 0 0
Repayment 0 0 (5,000,000) (5,000,000)
Revaluation gains 156,019 tah ee CD __156,019
At3l May2025 11,909,972 1,000 29,800,000 41,710,972
Historic cost
At 31 May2025 10,500,000 1,000 29,800,000 40,301,000
At31 May2024 10,500,000 (,000 34,800,000 45,301,000
2025 2024
£ £
Net realised investment gains
Loans; share ofdevelopment profits 850,000 476,234
Net unrealised investment gains/( losses)
Managed investment funds 156,019 817,326
Investment propertics (300,000) 75,000
(143,981) 892,326

The managed investment funds are all listed and comprise: COIF Charities Investment Fund managed by CCLA Investment Management Limited, Newton Growth and Income Fund for Charities managed by Newton Investment Management Limited (both mixed funds), Charities UK Equity Index Fund managed by BlackRock Investment Management (UK) Limited and ‘Charifund’ managed by M&G Investment Management Limited (both UK equity funds). All of the managed investment funds are held principally to generate income.

The Foundation's wholly owned subsidiary, PHF Investments Limited (company number 06772346), holds investment properties for which it collects rental income (see note 4). The property valuations are based on advice from the company's property consultants of their view of the market value as at 31 May 2025. The valuations do not factor in any potential changes in value beyond 31 May 2025.

21

PETER IIARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

7 Investments (continued)

The Foundation has made loans to (und property developments which carn interest and, on certain developments, also entitle the Foundation to a share of any development profits, but not of any losses. For onc of the loans the developer has decided to hold the property long term and conscquently the profit share that is duc on the sale of the property will not be realised for some time. it has been agreed that the estimated profit of £850,000 on that development be treated as a loan, the loan bearing interest until it is repaid. Apart from this no new loans were taken out during the year (2024: two new loans amounting to £7,000,000) and there was one loan repayment of£4,600,000 (2024: no loan repayments).

PHF Investments Limited had aggregate capital and reserves at the year end of £1,537,719 (2024: £1,815,690). The company’s results for the year are shown in note 4. PHF Investments Limited is incorporated in England and one of the Trustees, Peter Lee, is a director of the company.

The loan from the Foundation to PHF Investments Limited is repayable on 8 May 2029 or earlier at the discretion of the company's directors. The interest charged on this loan is set at 0.5% above the prevailing Bank of England base rate.

8 Intangible fixed assets
Group and charity £
Cast
At June2024
Additions 2,165
Disposals 0
At31 May 2025 82,673
——_{——EK£zZEEEE
Amortisation
Ati June 2024 6,200
Charge for the year
Disposals		 25,778
0
At 31 May 2025 31,978
Net book amount
AU31 May 2025 50,695
At31May2024 74,308
Group Group Charity Charity
2025 2024 2025 2024
£ £ £ £
Trade debtors 296,907 311,575 0 0
Profit shares receivable 0 476,234 0 0
Otherdebtors andprepayments 29,945 22,740 13,481 7,457
Accrued income receivable 155,202 157,458 45,347 25,171
Donation receivable from subsidiary company 0 0 1,195,025 363,296
482,054 968,007 1,253,853 395,924

22

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

10 Other creditors
Group Group Charity Charity
2025 2024 2025 2024
£ £ £ £
Rent received inadvance 324,944 327,609 0 0
Trade creditors 37,665 29,113 10,102 565
Accruals
Taxesand social security		 48,564
62,982		 67,588
$5,276		 17,100
0		 23,552
0
Other creditors 53,782 23,050 0 0
527,937 502,636 27,202 24,117
1t Analysis offunds
Group At 1June
2024		 Income Expenditure Gainsand
losses		 At3}
May 2025
£ £ £ £ £
Expendable endowments
Endowment gills
Further expendableendowment gifts		 45,001,000
156,757
45,157,757		 0
20,146
20,146		 0
0
0		 0
0
0		 45,001,000
176,903
45,177,903
Income funds
Unrestricted fund		 9,678,888 3,056,246 = (1,851,151) 706,019 11,590,002
54,836,645
2		 3,076,392 (1,851,151)
eS		 706,019
OOOO		 56,767,905
_——————ee—e
Charity At 1 June
2024		 Income Expenditure Gainsand
losses		 At31
May 2025
£ £ £ £ £
Expendable endowments
Endowment gifts
Further expendableendowmentgifts		 45,001,000
156,757
45,157,757		 0
20,146
20,146		 0
0
0		 0
0
0		 45,001,000
176,903
45,177,903
Income funds
Unrestricted fund		 7,864,198 3,765,586 (1,732,520) 156,019 10,053,283
53,021,955 3,785,732 (1,732,520) 156,019 55,231,186

The endowment gifis may be distributed at the Trustees’ discretion, but the current policy is to retain the endowment in order to maximise income for grant distribution in each year, The further expendable endowment gifts are those where the trust terms provide for conversion to income under certain circumstances. During the year £nil donations (2024: £30,500) were made.

23

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

11 Analysis offunds (continued)
Group At 1 June Income Expenditure Gainsand At31
2023 losses May 2024
£ £ £ £ £
Expendableendowments
Endowment gifts 45,00t000 0 0 0 45,001,000
Further expendableendowmentgifis 179.626 7.631 (30,500) 0 156.757
45,180,626 7,631 (30,500) 0 45,157,757
Income funds
Unrestricted fund 7,293,398 2,849,565 = (1,832,635) 1,368,560 9,678,888
52,474,024
—SS		 2,857,196
= (1,863,135)
—eee—ee—S—S=ETT_—Oe™e		 1,368,560
SS		 54,836,645
—————
Charity At I June Income Expenditure Gainsand At3l
2023 losses May 2024
£ £ £ £ £
Expendable endowments
Endowment gifts 45,001,000 0 0 0 45,001,000
45,180,626 7,631 (30,500) 0 45,157,757
Income funds
Unrestricted fund 5,577,143 3,151,174 (1,681,445) 817,326 7,864,198
50,757,769
3,158,805 = (1,711,945)
ea		 817,326 53,021,955
eels

24

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

12 Analysis of act assets between funds

Group - 2025 Endowment Expendable Unrestricted Total
fund endowment income fund funds
fund
£ £ £ £
Fixed assets 44,335,667 0 0 44,335,667
Current assets 665,333 176,903 12,748,057 13,590,293
Current habilitics 0 0 (745,231) (745,231)
Creditors payable after more than onc year 0 0 (412,824) (412,824)
At 31 May 2025 45,00),000
———————————_—		 176,903
————		 11,590,002
—
=		 56,767,905
_— ees
Charity -2025 Endowment Expendable Unrestricted Total
fund endowment incomefund funds
fund
£ £ £ £
Fixed assets 41.76)667 0 0 41,761667
Current assets 3,239,333 176,903 10,710,603 14,126,839
Current liabilities 0 0 (244,496) (244,496)
Creditors payable after more thanoncyear 0 0 (412,824) (412,824)
At3l May2025 45,001,000 176,903 10,053,283 55,231,186
Group -2024 Endowment Expendable Unrestricted Total
fund endowment income fund funds
fund
£ £ £ £
Fixed assets 45,001,000 0 3,252,261 48,253,261
Current assets 0 156,757 7,844,883 8,001,640
Current liabilities 0 0 (887,520) (887,520)
Creditors payable after more thanone year 0 0 (530,736) (530,736)
At31 May2024 45,001,000 156,757 9,678,888 54,836,645
Charity -2024 Endowment Expendable Unrestricted Total
fund endowment income fund funds
fund
£ £ £ £
Fixed assets 45,001,000 0 1,628,261 46,629,261
Current assets 0 156,757 7,175,674 7,332,431
Current habilitics 0 i) (409,001) (409,001)
Creditors payable after more than one year 0 0 (530.736) (530,736)
At31May2024 45,001,000 186,157 7,864,198 53,021,955

25

PETER HARRISON FOUNDATION

Notes forming part of the financial statements for the year ended 31 May 2025 (continued)

13° Related party transactions

During the year the Foundation opcrated from the Second Floor, Foundation House, 42-48 London Road, Reigate, RH2 9QQ. The freehold building was owned by the Peter Robert Harrison 1997 B Settlement (the 'B Setilement’) until it was sold on 24 June 2024. On 24 June 2024 the Peter Robert Harrison 1997 A Settlement (the ‘A Settlement’) took out a lease for the offices on the Second Floor, Foundation House. The Trustees J C Harrison-Lec and N P Harrison are beneficiaries of both the A and B Scttlements. The Trustee P J G Lee is a director of the corporate trustecs of the A and B Settlements.

An agreement was made between the Foundation and the B Settlement that the costs of occupation of the shared office be apportioned based on the space occupied by each entity and the number of staff employed. Until the date of sale of Foundation House the Foundation was charged by the B Settlement £1,273 (2024: £20,369) for rent, £724 (2024: £8,809) for service charges, £1,182 (2024: £13,776) for rates, £620 (2024: £17,414) for general office costs and £nil (2024; £1,046) for insurance (all figures include VAT).

Following the sale of Foundation House and the take up of a lease by the A Settlement a similar arrangement was made between the Foundation and the A Settlement regarding apportioning the cost of occupying the shared office based on the number of staff. During the year the Foundation was charged by the A Settlement £20,502 (2024: £nil) for rent, £9,288 (2024: £nil) for service charges, £11,182 (2024: £nil) for rates, £12,889 (2024: £nil) for general office costs and £255 (2024: £nil) for insurance (all figures include VAT). At the year end the Foundation owed the A Settlement £10,102 (2024: £nil}.

The A Settlement also charged the Foundation £5,382 (2024; £4,773) for bookkeeping services provided during the year (figures include VAT).

The Foundation’s wholly owned subsidiary PHF Investments Limited is managed by Chancerygate Limited. Chancerygate Limited charged £67,874 (2024: £99,113) for managing the properties owned by PHF Investments Limited, advising on acquisitions and disposals of the subsidiary’s investments, advising on the loans for property development and for administering the company. The Trustees consider that these management fees arc charged at a commercial rate. Peter Lee, a Trustee, is a director of Chancerygate Limited and also director and sharcholder of the holding company Chancerygate Group Limited, but does not participate in the negotiation of cither the management or performance fees chargeable by Chancerygate Limited.

At the year end PHF Investments Limited had loans outstanding to Chancerygate Limited of £7,000,000 (2024: £19,600,000) for the purpose of property development. These loans are repayable within 5 years and interest is charged at between 5% and 6% with the company also entitled to 25% to 27,5% ofany net development profits on certain ofthe[loans] once[complete,] During[the][year][interest] on[the][loans] of £421,370[(2024:] £516,850) was eared. In addition £nil (2024: £476,234) of profit shares were earned on the loans payable by Chancerygate Limited to PHF Investments Limited.

PHF Investments Limited has also made loans to Chancerygate Investment Property Limited for the purpose of property development, the total lent as at the ycar end was £8,350,000 (2024: £7,500,000). Peter Lee is a director ofChancerygate Investment Property Limited. Interest is charged on the foans between 5% and 6% per annum and the interest carned during the ycar was £449,973 (2024: £402,945). PHF Investments Limited is also entitled to between 25% and 27.5% of any net development profits once the development has been completed and profit shares of £850,000 (2024: £nil) were reccivable during the ycar. The profit share of £850,000 relates to a loan for a property which Chancerygate Investment Property Limited has decided to hold long term, the profit share due on the sale of the property will consequently not be realised for some time. It was agreed that the estimated profit of £850,000 on that development be treated as a loan, the loan bearing interest until it is repaid.

During the ycar PHF Investments Limited, the Foundation's wholly owned subsidiary, paid £1,623,975 (2024: £2,057,753) of interest to the Foundation. The company also made donattons in respect ofthe[year][of][ £1,195,025] (2024: £363,296) of which £1,195,025 (2024: £363,296) is included in the charity’s debtors at the ycar end,

26