2025-08-31-accounts

SEDBERGH SCHOOL

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

for the year ended 31 August 2025

Registered charity: 1080672 Company number: 03946280

S E D B E R G H S C H O O L

Founded in 1525

SEDBERGH SCHOOL

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 August 2025

CONTENTS

	Page
Chair of Governors’ Statement	1
Trustees’ Annual Report (Governors’ Report)
Background to Sedbergh School	2
Charitable objects	2
Objectives and activities	2
Strategic report	3
Public benefit activities and community support	5
Financial review	6
Strategic Plan 2025-30	9
Risk management	11
Policies	13
Environment and sustainability	14
Statement of compliance	16
Structure, governance and management	17
Group structure and relationships	18
Reference and administrative details	19
Statement of Disclosure of Information to Auditor	21
Statement of Governors’ Responsibilities	21
Independent Auditor’s Report	22-24
Consolidated Statement of Financial Activities	25
Balance Sheets (Consolidated and School)	26
Consolidated Cash Flow Statement	27
Notes to the Accounts	28-54

SEDBERGH SCHOOL

CHAIR OF GOVERNORS’ STATEMENT

for the year ended 31 August 2025

With the introduction of VAT on school fees, the removal of the business rates exemption and the increased costs arising from higher National Insurance contributions, combined with a challenging wider economic environment, Sedbergh has faced another demanding year. However, I am pleased to report that the School is well placed to meet these challenges and continues to flourish academically, pastorally and financially.

The School began the 2025/26 year with strong pupil numbers in both the Preparatory and Senior Schools. Although overall numbers were lower than the prior year, at 755 (2024/25: 787) this is a commendable outcome in the circumstances. It reflects the increased focus on marketing both in the UK and overseas, together with the enduring appeal of a Sedbergh education.

Alongside this, the School is pursuing a cost reduction and efficiency programme, which is already beginning to deliver benefits. The School has also continued to invest in facilities, with an ongoing programme of upgrades to boarding houses, IT infrastructure and the School’s’ digital offering across both campuses.

2025 has also been a pivotal year for Sedbergh School, marking the 500th anniversary of its foundation in 1525 by Roger Lupton. This milestone has been celebrated through a series of events, including:

• an evening of music at the Bridgewater Hall in Manchester,

• a gala weekend for parents and Old Sedberghians at the Senior School in May, and

• a carol concert at York Minster in December, attended by the whole School and over 750 guests.

The Schools have continued to benefit from the strength of the entire Sedbergh community, pupils, teaching and business staff, parents, and the Old Sedberghian network, including the Foundation and the Michael Robertson Scholarship Fund. My sincere thanks go to everyone for their contribution and continued commitment to Sedbergh’s ongoing success.

Both Schools have been inspected during the period and received superb reports. Notably, the Senior School received a “significant strength” for boarding, reflecting the commitment and resources that support a community which remains close to 100% boarding, something increasingly rare within the sector, yet still valued by many.

My thanks also go to my predecessor as Chair, Richard Gledhill, for his leadership and wise counsel over the last five years. Richard stepped down as Chair and Governor on 31 December 2025 but remains a Trustee of the School’s Foundation and a Director of our international schools business.

Sedbergh is well positioned within the challenging independent schools sector to continue providing an exceptional education to current and future pupils, and I look ahead to the coming year, and beyond, with confidence and optimism.

Ian Durrans Chair of Governors Sedbergh School

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SEDBERGH SCHOOL

TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

The Board of Governors of Sedbergh School presents its Annual Report and Consolidated Financial Statements for the year ended 31 August 2025 and confirm that they comply with the requirements of the Companies Act 2006, the Charities Act 2022 and the Charities SORP (FRS 102) – Second Edition.

BACKGROUND TO SEDBERGH SCHOOL

Sedbergh School was founded in 1525 and received a Royal Charter from King Edward VI in 1551; it celebrated its quincentenary in 2025. The Senior School (‘Senior School’) is based in the market town of Sedbergh in the Yorkshire Dales, and the Preparatory School (‘Prep School’) and Mulberry Bush nursery (‘the Mulberry Bush’) are located nine miles away in the village of Casterton. The two Schools and the nursery (together ‘the School’) provide education to boys and girls between the ages of six months and 18 years.

The Senior School remains predominantly boarding, with nine boarding houses. The Prep School has a mix of boarding and day pupils. Boarding houses are the heart of the School; they are the term-time home of our pupils and where they forge the closest friendships. The House system creates a smaller, tight-knit, cross-year community within the School where pupils are well supported by staff they know well. The sense of belonging inspires confidence, allows problems to be quickly resolved and develops strong social skills.

CHARITABLE OBJECTS

The object of the School is to advance education by carrying on in Great Britain a school or schools at which infants, children and pupils may obtain education and instruction in academic, sporting, musical, cultural, scientific, technical, vocational, social and commercial subjects, activities and crafts of every description.

OBJECTIVES AND ACTIVITIES

The mission of the School is:

To nurture each Sedberghian so that they realise their full potential in a unique and rigorous environment of excellence, characterised by committed endeavour, moral purpose and integrity of contribution.

In particular, the School aims to:

1. Identify and develop the potential of pupils in a variety of areas: academic, artistic, cultural, sporting, personal, social and spiritual; help them to obtain the best possible qualifications; and prepare them for the opportunities, responsibilities and experiences of life;

2. Provide a safe, welcoming, friendly and supportive environment which recognises the worth of each individual;

3. Provide a fulfilling working environment for both teaching and support staff, and encourage their development;

4. Provide all of our pupils with the skills required to succeed in tomorrow’s workplace, digitally confident in the rapidly changing world of technology;

5. Liaise closely with the parents of its pupils and encourage them to share in the life of the School and the house;

6. Work responsibly within its environment and community; and

7. Attract pupils from a wide range of social and financial backgrounds.

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SEDBERGH SCHOOL

TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)

for the year ended 31 August 2025

Progress in delivering our aims is summarised in the following strategic report.

STRATEGIC REPORT

Achievements and Performance

Quincentenary

2025 marked the five hundredth anniversary of the founding of the School by Roger Lupton in 1525. This significant moment in the School’s history was marked with a wide ranging programme of events for pupils, parents, staff and alumni. The year began with a remarkable concert of the highest quality of choral and instrumental music in the Bridgewater Hall, Manchester, attended by parents, Old Sedberghians, and the whole School.

Sporting fixtures and dinners were held to mark the quincentenary, including at Lord’s, and a weekend of events took place in May celebrating the breadth of offering of the School and its history, including a very moving service of thanksgiving in the School Chapel. The Headmaster and a small group of staff ran from York to Sedbergh over the course of three days, marking in reverse the footsteps of Roger Lupton who walked from Sedbergh to York to be ordained in the Minster.

Michael Raw’s ‘Tis the Hills That Have Stood Around Us charting the history of Sedbergh School from a one room chantry school to a global brand was published in September 2024, and the year ended with a memorable Carol Service in York Minster attended by over 1,400 people including the whole School.

Senior School

The Senior School began the year with 565 pupils (2024: 590).

Excellent results in A levels were achieved, with an increased proportion of A-A/Di-Di grades awarded (35.5% compared to 34.5% in 2024). The average value-added score was its highest since 2019 (discounting teacher assessed grades) at +0.8 (2024: +0.6) with many BTEC candidates and pupils with SEND achieving excellent value added scores. Amongst the results were some outstanding individual and departmental performances, including two pupils achieving three A grades, and one three Di grades at BTEC.

All pupils who wished to go to a UK university did so, with 82% securing their first choice. Six pupils secured places at international universities, and 58% gained places in Russell Group universities. One degree apprenticeship and two apprenticeships were secured.

It was a challenging year for those taking GCSE examinations with the grade boundaries being strengthened. Despite this there were some notable individual performances, as well as excellent value added scores. The School has employed a range of innovative teaching and learning strategies to ensure that pupils of all abilities are able to achieve the best results possible.

The introduction of the Sedbergh values expressed in HARK in 2022 continued to be developed in the form of the ‘Front Four’ pastoral provision: Spirit (counter-bullying and well-being), Compass (PSHE/RSE), Pathways (careers) and Service (community service and giving back). This bespoke programme of pastoral care of Sedberghians delivers an authentic, holistic education for pupils nurturing their social development, emotional wellbeing and mental health, and laying the foundations for a future in which they can

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

thrive and be happy. Of particular note was the PSHE programme which was reviewed half termly in order to respond to events and issues of relevance to teenagers.

Maximising pupil participation in all areas of School life is a key element of life at Sedbergh, and the breadth of opportunities provided offers something for every pupil to enjoy beyond the classroom. Year 9 pupils undertake the John Muir Award in their first term, gaining outdoor skills and experience, and year 10 have a programme of adventurous activities in the Summer Term. This leads to participation in the Duke of Edinburgh Award Scheme, at Silver level for years 10 and 11, and Gold for years 12 and 13. The School is able to take full advantage of its unique setting between the national parks of the Yorkshire Dales and Lake District for expeditions and activities.

Fifteen academic societies offer a variety of opportunities for academic enrichment outside the classroom, from debating to astronomy. The whole-School Pathways careers fair and lecture series showed pupils the range of postSchool opportunities. The 9 Inspire curriculum was launched in Michaelmas Term 2024, seeking to provide year 9 pupils with a skills-based curriculum designed to inspire and ignite interest and curiosity. A broad range of opportunities including whole-year day trips, immersive learning opportunities and real-world applications of academic learning was provided through the year.

With over eighteen sports on offer, the breadth of sport is designed to ensure all pupils can participate at an appropriate level. A structured games programme is provided five days a week, with a competitive fixture list in many sports. We create an environment where pupils can challenge themselves, grow in confidence, and develop resilience alongside health and wellbeing benefits. Across the academic year over 90% of pupils were engaged in competitive inter-school fixtures in a wide range of sports, coached and supported by common room staff.

The programme of performing arts saw many pupils involved in concerts, plays and events, including many special events for the quincentenary year. The Chapel Choir was awarded second place in the Barnardo’s National Choir Competition for best performance of a popular song, and a production of Chicago played to full audiences in the Hirst Centre which was transformed into a theatre set. The Choral Society performed Vivaldi’s Gloria in St Andrew’s Church, with a choir and orchestra made up of pupils, staff, Old Sedberghians and members of the local community.

Pupils enjoyed a number of trips and tours away from Sedbergh, including the year 11 Battlefields trip, which included leading the incredibly moving ceremony at the Menin Gate, a cricket tour to Sri Lanka, rugby tour to South Africa, the Chapel Choir tour of Catalonia and an Art and English trip to New York.

Preparatory School

The Prep School began the year with a roll of 185 pupils (2024: 200). A new Headteacher, Kate Martin, joined the School in Lent Term 2025.

The Prep School is a busy School with a plethora of opportunities for pupils both in and out of the classroom. Performing arts provides all pupils with a chance to be on the stage, from exeat and holiday concerts to productions including the annual nativity for pre-prep children, a year 3-5 production of Nobody Wraps Like an Elf which involved every child from those year groups, and a year 6 and 7 performance of The Wizard of Oz . Half the children in the School take instrumental music lessons, and many receive LAMDA training.

A number of academic initiatives were introduced during the year, including a new system tracking progress for Early Years Foundation Stage (EYFS) pupils, better use of data to improve individual pupils’ outcomes, and build upon each department’s curriculum statement with year group curriculum overviews and assessment of skills progression. The outdoor classroom continues to be well used by all year groups and subject areas.

Sporting opportunities are many and varied, from cross-country running to team sports, target shooting and equestrian activities, making full use of the excellent facilities on the Casterton campus. Pupils from years 7 and 8 enjoyed a sports tour to Edinburgh with rugby, hockey and netball fixtures, Prep School riders joined the Sedbergh

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Equestrian team with senior school pupils. Pupils also participated in the Independent Schools Climbing Competition and others in the IAPS National Swimming Finals.

All pupils at the Prep School are able to participate in a variety of clubs which take place at different times during the School day, and accommodate a wide range of interests from early morning running to flyfishing, textiles and community service. All boarders received CPR training.

The Prep School’s Ways of the Wolf describe the core values that shape the behaviour of pupils and staff: ambition, collaboration, courage, creativity, kindness and responsibility. Pupils in all years were encouraged to think of others with a large number of charity events throughout the year.

The Mulberry Bush

The Mulberry Bush Nursery at Casterton continued to provide high quality nursery care and education to children aged six months and above.

Inspections

Both Senior and Prep Schools were inspected in 2025. The Senior School Headmaster described the rigorous inspection as a very positive experience, and was delighted that the inspectors recognised the School’s boarding provision as a significant strength, in addition to meeting all required standards across leadership, safeguarding, education and well-being. Inspectors commended that the School lives its HARK values which guide not only the pupils but also the wider School culture.

The Prep School inspection in February took place weeks into the new Headteacher’s tenure. Excellent feedback was received, with all standards being met. The report noted the commitment of staff and Governors, the support for pupils of all abilities to benefit from the education provided and opportunities provided, and the well-considered approach to behaviour.

PUBLIC BENEFIT ACTIVITIES AND COMMUNITY SUPPORT

Community support

For several years both staff and pupils have supported a wide range of community initiatives in Sedbergh, most recently through the Sedbergh Gives Back programme; giving back is an important feature of life at Sedbergh School. From regular Thursday afternoon voluntary service sessions in local charity shops, primary schools, food banks and conservation programmes to the whole-day Sedbergh Gives Back house projects at the end of Michaelmas Term and the projects of Challenge Week, pupils learn the importance of helping others.

Public benefit

The School has an excellent record of facilitating access for children from a wide range of social and financial backgrounds, including the most disadvantaged, to provide them with the opportunity to benefit from the full breadth of a Sedbergh education with appropriate bursary and scholarship assistance, provided they meet the School’s minimum entry requirements.

Parents who meet the relevant criteria are supported with means tested bursary awards within the funds available. Bursary awards are made on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk. In assessing means, a number of factors are taken into consideration including family income and assets, together with family circumstances, as the School seeks to ensure opportunities are given to pupils across the full spectrum of affordability and social background. Means tested support is reviewed on a periodic basis to identify any significant change in financial circumstances.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

Governors review both School policy and actual awards. The policy, which fits within the framework of what the School can sensibly afford, is designed to provide the widest possible access, including to those who fall within the definition of low income households.

The Michael Robertson Scholarship Fund, a separate charity which does not form part of the School group, has continued to provide income to support bursary awards, which totalled £0.150m in the year (2024: £0.173m). The Governors recognise this significant contribution and express their gratitude to the Robertson family and appreciation for the work of the Trustees in generating income for the School.

The Roger Lupton Scholarship and Bursary Scheme, funded by the Sedbergh School Foundation, provides funding opportunities to children whose families otherwise could not consider a school such as Sedbergh. In addition the School has continued its relationship with Settlebeck School to provide free places to a number of pupils from Sedbergh and the local area to attend the Senior School in years 12 and 13. Funding from the Foundation under these scholarship schemes amounted to £0.400m (2024: £0.376m).

This year the School provided bursary support to 133 pupils amounting to £1.720m (2024: £1.860m) which equates to 6.3% (2024: 6.6%) of gross fee income, including funding from the Michael Robertson Scholarship Fund and Sedbergh School Foundation.

Equal opportunities

The School is committed to the provision of equal opportunities and an environment that is free of any form of discrimination. Reasonable adjustments are made to meet the needs of pupils and staff who are, or become, disabled.

FINANCIAL REVIEW

*These categories have been impacted by a change in presentation following the implementation of VAT on school fees.

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Macro-economic conditions created a particularly challenging environment for the School. The implementation of VAT on school fees from 1 January 2025 had a significant impact on the School’s operations. For reporting purposes, one term of school fees remained exempt from VAT, while the subsequent two terms were subject to VAT at the standard rate of 20%. From the same date, VAT on purchases also became recoverable. To mitigate the impact, just 8% of the VAT related increase was passed onto parents via a fee adjustment. Of the remaining 12% VAT related increase, 5% was offset by VAT recovery on purchases and 7% was absorbed by the School, necessitating a comprehensive cost review and the implementation of a savings programme.

In addition, from April 2025 the Labour government removed the charitable exemption for independent schools on business rates, resulting in the loss of 80% mandatory relief, which added circa £0.280m per annum to the School’s cost base. The same month also saw an increase in employers’ National Insurance contributions, which added circa £0.300m per annum to the School’s cost base.

Total income received during the year amounted to £27.132m (2024: £26.950m). The majority of the Group’s income is derived from School fee income which decreased by 2% to £22.232m (2024: £22.799m). This reduction was the result of not passing on the full VAT charge to parents, alongside lower pupil numbers.

Donations amounted to £1.076m (2024: £1.032m). This comprised donations towards bursaries, together with significant donations from the Sedbergh School Foundation towards major projects, including a major upgrade programme to many of the windows in senior boarding houses and the continuation of an extensive Wi-Fi and digital transformation project impacting several boarding houses and the majority of classrooms at the Senior School.

Other educational income has increased compared to the prior year, driven by a change in presentation of ‘extras’ income charged to parents with this now shown gross on the SOFA. Costs associated with this are presented within teaching costs. Ancillary income was broadly in line with the prior year. Investment income was higher than the previous year at £0.540m (2024: £0.387m) due to the increase in cash deposits and higher rates of interest available for those larger deposits.

Expenditure on charitable activities was consistent with previous year £24.297m (2024: £24.326m). Boarding costs fell by 12%, driven by a fall in energy prices and firm cost control. However, inflationary pressure and increased staffing costs, particularly as a result of the increase in National Insurance Contributions, led to a 5% increase in teaching costs, 5% increase in management and administration costs and a 1% increase in premises costs. Although several cost categories experienced underlying inflation, the overall increase in expenditure was consistent with previous year because VAT on relevant charitable expenditure was recoverable from January 2025.

Finance costs increased to £0.630m (2024: £0.565m) due to the higher bank base rate.

Trading income increased to £1.992m (2024: £1.839m) following increased booking numbers for the International Summer School. As a consequence, costs associated with the International Summer School also increased. Royalty and service fee income from our overseas schools fell meaning that overall profitability reduced to £0.343m (2024: £0.390m).

During the previous financial year, the School opted for a phased withdrawal from the Teachers' Pension Scheme, complying with all relevant pension and employment legislation. The Teachers’ Pension Scheme has been replaced with an appropriate defined contribution scheme. The School remains committed to providing fair and compliant pension arrangements for all employees.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

Key financial performance indicators

Key financial performance indicators used by the School include the following:

	2025	2024
Pupil numbers (adjusted on a full time equivalent basis)	755	787
Teaching staff costs as % of net fees	36.9%	34.9%
Premises and boarding costs as % of net fees	47.5%	48.8%

Non-financial performance indicators include exam results as set out under the Achievement and Performance section of this report.

Financial position

The overall operating result for the year was net income of £0.556m (2024: £0.610m). Adding the revaluation on residential property of £0.550m, deducting the loss on investments relating to the Group’s funds under management of £0.001m (2024: gain £0.022m) and deducting the actuarial losses on the non-teaching defined benefit pension scheme arising from the FRS 102 revaluation of £0.004m (2024: £0.004m) produces a total net increase in the Group’s funds of £1.101m (2024: £0.628m).

The Group generated positive cash flows of £1.139m from its operating activities, excluding the movement on fees received in advance. Fees received in advance of £3.437m were utilised during the year, resulting in a decrease in creditors and therefore the Group used £2.298m of cash to fund its operating activities. Included on the Balance Sheet are bills relating to the term beginning September 2025 which results in an increase in both debtors and creditors. Investment activities included the purchase of tangible assets of £1.909m (2024: £1.850m) and the management of invested prepaid fees. The repayment of existing loans totalled £0.352m (2024: £0.351m), and interest payments amounted to £0.475m (2024: £0.549m). The overall cash position therefore reduced by £2.169m.

Going concern

The Governors do not consider there to be any material uncertainty about the School’s ability to continue as a going concern, as set out in the accounting policies. During the year there was the implementation of VAT on school fees, the loss of business rate relief and the increase in employers’ National Insurance rates. Despite this, the School produced a positive increase in the Group’s funds from £19.691m to £20.792m. The full year impact of these taxes have been built into the financial modelling for future years. Having reviewed the funding facilities available to the School together with the expected future cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Scenario analysis has been conducted to model potential outcomes associated with other risk factors, such as a reduction in pupil numbers and above inflation cost increase scenarios. In each scenario the business is considered a going concern. Accordingly, the School has continued to adopt the going concern basis in preparing the financial statements.

Net current liabilities decreased to £6.951m (2024: £9.566m) following the unwind of funds from fees received in advance. These funds have correspondingly been disinvested and therefore the level of fixed asset investments has decreased to £7.343m (2024: £9.855m) of which £5.269m (2024: £7.781m) relates to unrestricted investments. Included within investments are balances of £1.240m (2024: £2.950m) relating to cash investments that could be withdrawn within 95 days.

STRATEGIC PLAN 2024-2029

The School’s five year Strategic Plan is reviewed annually. The key objectives of the Plan are summarised below, together with a summary of progress during the year and future plans.

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• Employability and education for the future

To deliver a programme of study In the Senior School the review of the curriculum will see further development which will equip pupils to use of Global Perspectives, Information Technology and Computer Science, in technology safely and creatively, parallel with planned developments across the School’s. This review also and to solve problems in such a includes the provision of Information Technology including the use of AI way as to enhance their within the whole School curriculum and digital technology in teaching employment prospects. We will practice. also deliver new curriculum development in both Schools, including a School-wide digital strategy.

• Manage actively the wellbeing and mental health of pupils and staff

To ensure there is an ethos and A range of initiatives is employed across both Schools to raise awareness and environment which takes the build resilience in our pupils including mental health awareness, mindfulness, mental health of pupils and staff wellbeing, prevention and reporting of bullying, online safety and extensive seriously, and in which it is use of confidential surveys within the pupil body. At the Senior School these managed and monitored actively have been developed into the ‘Front Four’ programme, and the Prep School with staff and pupils being has established a wellbeing room with dedicated Wellbeing Coordinator. The developed and supported, School Counsellor continues to be an integral part of the Senior School’s alongside developing the pastoral provision. teaching of PSHE and RSE by tutors. Pupil and staff well-being Safeguarding policy and practice remains at the forefront of staff and will continue to be actively Governor training, with regular assessment and review at all levels of daily promoted and ill-health operations. This training includes all staff, including those working within the managed swiftly and trading subsidiaries. appropriately to make the School an attractive place to live, Staff welfare remains paramount and a full review of systems and practice to work and learn. support wellbeing in the workplace is ongoing; the staff benefits platform includes access to an employee assistance programme, care concierge and a suite of confidential health and wellbeing support services.

• Sustainability

To review every aspect of The School continues to invest in energy reduction measures as part of a operations to ensure that the longer term refurbishment of both campuses. During the year, the School School operates on a sustainable installed 213 windows with double glazed units and Building Management basis including delivering target Systems in the seven buildings that use the most energy. A rolling programme reductions in energy of future works over the next five years continues to be implemented. consumption and carbon emissions. Pupils will be Ambitious targets to further reduce the School’s carbon footprint are being involved in a range of initiatives finalised as part of a broader range of sustainability and corporate social to deepen their understanding of responsibility objectives. climate change and other environmental issues. Pupils are engaged in a range of initiatives to raise awareness and involvement in all aspects of sustainability and care for the environment.

• Development of land and assets

To modernise elements of the	The ongoing refurbishment of the boarding houses and School buildings on
boarding house accommodation,	the Sedbergh campus includes redecoration, replacement of carpets and
develop additional sports	furniture and energyefficiencymeasures as detailed elsewhere in this report.

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facilities and implement a School-wide digital strategy.	The digital strategy includes substantial investment in hardware, software and training. All classrooms have a uniform and improved digital configuration aiding teaching across the School. Investment into the Wi-Fi provision in boarding houses has significantly benefitted pupils. Business plans are being prepared for the development of additional sports facilities.
• Overseas schools expansion
To support the development and academic success of Sedbergh School Fuzhou and open additional overseas schools .	Sedbergh School Fuzhou, owned by the Rong Qiao Group, opened in September 2018 with world-class facilities and a strong and experienced leadership team offering a blended British curriculum and compulsory Chinese curriculum in a bilingual school. The pupil roll in September 2025 is now 600 pupils. Sedbergh School International Limited continues to benefit from an outstanding investor partner in the Rong Qiao Group based in Fujian province. Sedbergh Vietnam, owned by EQuest Education Group, opened in Ho Chi Minh in September 2023; its roll exceeds expectations at 1,250 in September 2025. Sedbergh Vietnam delivers a curriculum that seamlessly integrates the rich traditions of both Vietnamese and British cultures and provides a well- rounded education that embraces the best practices from both worlds, ensuring a holistic and globally relevant learning experience. Sedbergh School International Limited continues to explore opportunities for further schools in selected countries overseas, seeking additional investor partners and local operators to provide a unique Sedbergh education internationally.
• UK school group expansion
To identify opportunities for partnerships with culturally aligned schools to build depth and resilience through efficiencies and enhance the pupil recruiting opportunities for the Senior School	The mergers and partnerships of schools is becoming common place across the sector and is seen as a prudent business strategy within the context of the challenging economic environment the sector is experiencing. Sedbergh School’s strategy is to expand via mergers and/or partnerships to further strengthen the Group for the long term.
• Non-fee based revenue generation
To deliver our targets for non- fee based revenue streams through a range of commercial ventures undertaken by our commercial subsidiaries, Sedbergh School International Limited and Sedbergh School Developments Limited.	Sedbergh School Developments Limited once again delivered a large programme of short courses in the Easter and summer holidays in 2025 for children from 6 to 16 years of age, as well as providing training webinars and outreach activity with schools and clubs. Over 2,500 children attended a SSDL training event across the UK. The unique coaching philosophy developed has been offered at courses and events in the north of England and overseas in the UAE and Europe. The International Summer School bookings improved compared to the previousyear which was affected bythe recession in Europe. The 2026

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programme has been further enhanced and refreshed to continue to secure market share as competition grows for English language tuition.

• Financial security, including fundraising To deliver long term financial The School monitors financial progress across both Schools and its commercial security through effective subsidiaries against a detailed five year rolling financial plan to deliver our commercial risk management, long-term financial goals which include: delivery of our medium term financial goals and support of • generating additional liquid reserves; our affiliated organisations, • funding future capital expenditure including new facilities, energy; including fundraising and alumni reduction measures and major renovation works; development. • strengthening our competitive position in our UK and global markets. Financial performance against defined milestones is subject to termly review by the Executive Committee and Board of Governors. Dynamic risk assessment measures are in place for each operational unit including the commercial subsidiaries, and strategic risks are considered and reviewed by the Senior Leadership Team on a monthly basis and by the Board of Governors on a termly basis. Our fundraising activities are carried out through the Sedbergh School Foundation, which has continued to provide support via the Roger Lupton and Settlebeck Scholarship and Bursary schemes throughout the School. The Foundation already has an ambitious fundraising plan to support the development of both Schools as part of the quincentenary celebrations in 2025. Quincentenary restricted reserves and unrestricted reserves held as at 31 August 2025 amount to £6.445m. The strategic management of the Foundation and OS Club falls to the Headmaster, whilst retaining their independent trustee structures. The School is able to provide significant administrative and finance management support to both organisations enabling them to focus effectively on their clearly defined alumni and friends of Sedbergh functions.

RISK MANAGEMENT

The School maintains an up-to-date Strategic Risk Register which identifies the most significant risks to ongoing operations of the School and to the delivery of its strategic objectives. The register details the appropriate risk mitigation measures and is reviewed on a regular basis by the Senior Leadership Team and on a termly basis by the Governors. Underneath this sits an Operational Risk Register, which is also reviewed regularly by the Senior Management Team. Governors have also reviewed the School’s insurance cover to ensure that it is adequate.

The principal risks to the School and the School’s approach to mitigate the risk are as follows:

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Category	Risk	Principal mitigating actions
Financial and Economic	A failure to generate sufficient cash flow to meet strategic objectives and minimum cash generation requirements. Lower pupil roll due to the imposition of VAT on school fees from January 2025.	− Strict budgetary control of operational and capital expenditure − Regular cashflow and reserves forecasting − Revised global marketing strategy − Five year capex programme review − Critical review of all cost centres and identification of potential revenue streams − Detailed contingency planning − Provision of additional means tested bursaries for families in need funded by the Foundation, thus supporting pupil retention
Staff	Inability to recruit and retain high calibre teaching staff. Inability to recruit operational staff, impacting on operational support provision. Strategic leadership and senior management changes of personnel.	− A new competitive salary scale and allowance package for teaching staff was introduced in May 2024 − Implementation of a revised strategy for support staff recruitment − Succession planning and effective handovers for executive and senior managementpositions
Reputation	Reputational damage as a result of an adverse incident at the School or in a subsidiary.	− Staff training and pupil education. − Strict adherence to Safeguarding and Health & Safety and other policies − Development and testing of the major incidentplan
Political	Political, taxation and regulatory changes (such as loss of charitable status, levy changes, changes in overseas pupil visas).	− Regular review of forecasts with sensitivity analysis − Legal/financial advice − Advice from sector bodies eg ISC and ISBA − Contingency plans
External event eg pandemic	Impact in the School and threat to the local community. Inability to provide all aspects of the Sedbergh education on either campus, resulting in loss of revenue. Additional costs arising from the event.	− Major incident planning − Review of policies and procedures − Remote learning plans and staff training − Cost contingency plans − Bio securitymeasures

The Group subsidiaries hold their own registers of strategic and operational risks which are in a consistent format to that of the School and are reviewed by their respective boards on a regular basis.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

POLICIES

Principal sources of funding

The principal sources of funding for the School are fees, commercial income generated by the subsidiaries, and bank finance including medium term bank borrowings and a bank overdraft facility. In addition, the School receives support for bursaries and capital programmes from the Foundation and other charities and donors.

Reserves

The Group policy is to invest retained surpluses to support the development of the School, while ensuring that sufficient reserves are held to meet any contingencies as they arise.

According to the Charities' SORP definition, free reserves should exclude endowment and restricted funds and funds which can only be realised by disposing of fixed assets held for School use. On this narrow basis, the Group has no free reserves but the Governors are satisfied with the position, given the unrestricted cash and unrestricted investments available which at the end of the financial period amounted to £7.323m (2024: £12.005m), as a result of the utilisation of fees received in advance, alongside the overdraft facility of £1.000m. In addition, the School benefits from a portfolio of residential property totalling £7.550m (2024: £6.356m).

The Governors continue to monitor cash, investments and reserves closely to ensure that sufficient reserves are available to meet potential threats to future income, in particular from a deterioration in the economic climate. Subject to this, it is the intention of the Board to continue to reinvest operational surpluses generated into School improvements.

Total funds of the Group are £20.792m (2024: £19.691m), which comprise: endowment funds £1.793m (2024: £1.793m), restricted funds £0.719m (2024: £0.719m) and general funds of £18.280m (2024: £17.179m).

Investments

During the year the Group’s funds were managed in a range of longer term fixed rate deposits and shorter term notice accounts with rates linked to the Bank of England base rate. The Group has an underlying investment strategy of long term capital preservation with the objective of delivering positive absolute returns with low volatility in capital values. The Group investment policy is approved by the Governors and monitored by the Investments Sub-Committee.

Public benefit

In setting objectives for means tested bursaries, community engagement and social inclusion, the Governors have had regard to the Charity Commission’s guidance on public benefit. Further information can be found on page 5 of the Trustees’ Report.

Disabled persons

The School is committed to providing an environment which values and includes all pupils, staff and parents regardless of their educational, physical, sensory, social, spiritual, emotional and cultural needs. It seeks to challenge attitudes about disability and accessibility, and to develop a culture of awareness, tolerance and inclusion. The Group complies with all relevant legislation relating to disabled persons.

The School’s policy requires that disabled job applicants would not be rejected for a reason which relates to their disability; job specifications are always used and selection criteria monitored to ensure that discrimination does not unwittingly occur; and recruitment and selection procedures are adapted where possible to ensure that they do not disadvantage disabled job applicants.

The School takes steps to try to enable an employee who becomes disabled to remain in employment. In consultation with the employee, adjustments to facilitate their retention will be considered. Employees with disabilities are provided with opportunities to develop full and rewarding careers on an equivalent basis to other employees.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

The Accessibility Plans for both campuses illustrate how the School plans over time to further increase accessibility for pupils, staff and visitors who have disabilities. The School aims to make reasonable adjustments to allow disabled pupils to access the education available, bearing in mind the historic nature of its buildings and widespread campuses. These Plans are reviewed every twelve months.

ENVIRONMENTAL AND SUSTAINABILITY

The School recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused.

The School has followed the 2019 HM Government Environmental Reporting Guidelines. In addition, the School used the GHG Reporting Protocol – Corporate Standard and the 2020 UK Government’s Conversion Factors for Company Reporting.

The School commissioned an ESOS compliant intermediate energy audit and report carried out by Arup during 2022/23. The report made recommendations for phased reductions in energy consumption by 2040 through the following measures: monitoring use, fabric upgrades, system optimisation, system intervention, and the introduction of renewable sources of energy.

Summary of data for the year

All figures have been quoted in terms of carbon dioxide equivalent which signifies the amount of CO2 which would have the equivalent global warming impact. CO2e per pupil is the recommended ratio for the sector.

	2025	2025	2024	2024
	kWh	Metric tonnes CO2e	kWh	Metric tonnes CO2e
Scope 1
Gas Consumption	8,403,926	1,537,582	8,844,898	1,617,732
Transport	440,556	122,148	386,507	109,477
Scope 2
ElectricityConsumption	1,788,658	316,593	1,949,365	403,616
TOTAL	10,633,140	1,976,323	11,180,770	2,130,825
Intensity ratio CO2e perpupil		2,577		2,708

The results for 2025 reflect a reduction in energy consumption compared with 2024, with both winters being statistically similar in spite of some extremes of weather in 2025 which might have seen energy consumption rise. However, there was a decrease in gas and electricity consumption helped by the installation of more efficient boilers in 2023 and 2024 and the continued work on replacement of lights with LEDs and further introduction of proximity switches.

Improvements in energy efficiency

During the year the programme to improve energy efficiency continued. The achievements included:

• BMS boiler controls have been installed in five of the School boarding houses and the heating circuit for the Swimming Pool and Gym which extends to adjacent buildings at a cost of £0.136m;

• Smart energy monitoring systems for gas and electricity covering fourteen large buildings across both School sites linked to a central web-based dashboard;

• Investment in new boilers in smaller buildings;

• Further installation of 213 double glazed windows across both campuses.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

The School continues to work on improvements in energy efficiency, in line with its Strategic Plan. Plans for the year ahead include;

• replacement of the heating systems in Senior School boarding houses and a similar sized major buildings once older systems reach end of life;

• the programme of replacing windows with uPVC double-glazed units;

• education and action on recycling and energy use in office and classroom environments;

• insulation upgrades to properties as necessary including continued extensive investment in double glazing in older buildings;

• the appraisal of renewable energy options and future purchasing strategy to progress toward net zero;

• • the evaluation of sustainable travel and reduction in School owned and hired transport for sports travel, off-site activities, business travel, staff travel to work and pupil transport to School.

The School has completed the main requirements of ESOS phase 3 and submitted the final part as an action plan in February 2025 and the first annual progress report ahead of the 5 December 2025 deadline. The School will adhere to the updated regulatory requirements of ESOS phase 4, including;

• reporting total energy consumption, including transport mileage, annually;

• developing plans to align energy audits more closely with net zero targets and carbon reduction;

• appointing a lead assessor;

• making a mandatory net zero assessment;

• aiming for a reporting deadline at the end of 2027.

Other sustainability measures

The School is developing a full sustainability plan which in addition to operational energy, carbon footprint and sustainable travel includes the following subjects:

• education and integration of sustainability into School daily life – a long term campaign to influence both staff and pupils with the inclusion of sustainability in the curriculum;

• water use – fast identification and resolution of leaking pipes and taps; reducing boarding house use by pupils;

• waste management including improved recycling, waste reduction, food waste bio-digestion and waste oil from kitchens sent to be made into bio-fuel;

• sustainable construction and refurbishment;

• sustainable procurement – through engagement with suppliers to assess their own commitment to sustainability;

• sustainable catering – reduction in fuel use through digital catering, food miles, locally produced produce, sustainable meat and fish products, reduction in food waste, and the elimination of the use of disposable plastics; and reduction in the number of kitchens by centralising production between pairs of boarding houses and replacement of gas fired appliances with electric powered alternatives;

• biodiversity on campus – an intrinsic part of the estate management with maturing woodland planted over the last twenty years and a further 200 trees planted at Casterton.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

STATEMENT OF COMPLIANCE

The Governors have complied with their duty in regard to the matters in section 172 (1) (a)-(f) of the Companies Act 2006 (‘the Act’).

The Governors confirm that they have acted in the way they consider, in good faith, would be most likely to promote the success of the School and for the benefit of its members as a whole, and in doing so have had regard (amongst other matters) to:

• the likely consequences of any decision in the long term;

• the interests of the School’s employees;

• the need to foster the School’s business relationships;

• the impact of the School’s operations on the community and the environment;

• the desirability of the School maintaining a reputation for high standards of business conduct; and

• the need to act fairly as between members of the School.

Relationships

The School recognises the importance of our stakeholders to the future of the School, including our pupils and their families, employees, suppliers, the Government and our strategic partners. Our approach to all these parties is founded on the principle of proactive and systematic communication based upon an open and honest dialogue and a clear appreciation of needs and objectives.

Relationships with parents are managed on an individual basis, through those in close contact with them through the education journey, as well as key communication forums and interaction with staff on the School site and at events. Parents are engaged with the relevant Parents’ Associations at Senior and Prep Schools, providing feedback to the Heads on a termly basis.

The School, the Governors and senior employees participate in various education sector associations and groups, which give access to supplier groups and decision-makers, Government and other regulatory bodies.

The School is a member of the Heads’ Conference, the Independent Association of Prep Schools, the Independent Schools’ Bursars’ Association and the Association of Governing Bodies of Independent Schools.

Employee engagement

The School continues to place a high emphasis on mutually beneficial relationships with its employees, whom it regards as essential to the School’s future success.

There is a well-established system for regular communication with staff at all levels in both Schools, including weekly departmental meetings, regular email updates, formal and informal staff presentations, as well as a full in-service training programme and an extensive social diary. Employees are encouraged to raise any issues or ideas for improvement they may have with their line manager or through the whistleblowing arrangements.

Staff at all levels are kept advised of the progress of the School in comparison with our strategic objectives and development plans, including matters that may be pertinent to their immediate interests.

The School puts great emphasis on providing equality of opportunity for all employees and ensuring that fair selection and development procedures apply. The aim of policies in this area is to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, sex, disability, marital status, colour, religion, race or ethnicity, or is disadvantaged by conditions or requirements which cannot be shown to be justifiable. In the event of an employee becoming disabled whilst in the School’s employment, measures will be taken to ensure that they can continue in their employment as far as is practicable.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document and constitution

Sedbergh School was endowed as a Chantry School in 1525 by Roger Lupton, Provost of Eton, and incorporated by Royal Charter of King Edward VI as a Free Grammar School in 1551. It was reconstituted under the Endowed Schools Act of October 1874. The Scheme, Provisions and subsequent amendments were repealed and reconstituted by Trust Deed in July 1956. This Trust Deed was amended during subsequent years, the last amendment being in 1980.

In 2000, the School became an incorporated charity (charity number 1080672, company number 3946280), entailing the preparation of new governing instruments and the transfer of the Charity’s assets, with the exception of the Scholarship & Prize Funds which are classified as permanent endowment. These Scholarship & Prize Funds became linked charities with Sedbergh School and are incorporated within the School accounts. The Articles of Association were renewed in 2023 to meet current company and charity law and practice.

The Governing Body

All Members of the Company are Directors of the Company and Governors of the School. The membership of the Board of Governors consists of up to fifteen Co-optive Governors.

Until 5 July 2023, the Governing Body included His Majesty’s Lord Lieutenant of Cumbria in an ex-officio position; this ceased with the retirement of the previous Lord Lieutenant. The Articles of Association now allow for the Lord Lieutenant to nominate a representative to hold a Co-optive Governor position; this position is currently vacant.

The Lord Archbishop of York also nominates a representative (Revd M D Ineson) who holds one of the Co-optive Governor positions.

The remaining Co-optive Governors are appointed by the Board of Governors for a specific period not exceeding three years initially. A Governor is eligible for re-election for up to three further terms of three years. Governors are reappointed at the Annual Retirement Meeting of Governors.

The Charity has one Governing Body for both the Senior School and the Prep School, with separate registrations with the Department for Education for each site. Details of the Governing Body are provided on page 19.

Management arrangements

During the year, the day-to-day running of both Schools was delegated to: the Headmaster, Sedbergh School, the Chief Operating Officer, the Prep School Headteacher and the Senior Management Teams at the Senior and Prep Schools. The Headmaster, Sedbergh School and the Chief Operating Officer are responsible to the Board for the delivery of the strategic objectives set out in the strategic plan and attend the Governors’ Board and relevant Committee meetings as appropriate. In the January 2025, a new Prep School Headteacher joined the School, and in April 2025 a new Chief Operating Officer commenced employment, both of whom were appointed following rigorous recruitment processes.

The Board delegates authority through formal terms of reference to a range of committees and sub-committees including the Executive, Education and Governance & Remuneration Committees and the Safeguarding, Audit & Risk Sub-Committee and the Investments Sub-Committee. The commercial subsidiaries are separate limited companies who report to their own independent boards.

Arrangements for setting pay and remuneration of key management personnel

Remuneration for senior management positions is determined by the Governance & Remuneration Committee. The Committee reviews the terms and conditions of the senior office holders on an annual basis. Due consideration is given to national benchmarking reports, including periodic surveys by independent authorities such as AGBIS and Baines Cutler Solutions (an independent schools consultancy business), to ensure that their remuneration is commensurate with similar roles within the sector.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

Indemnity insurance

Third party indemnity insurance was in place for the benefit of Governors during the period.

Appointment of new Governors

Members of the Governing Body are recruited by invitation to ensure that the right mix of skills, talent, expertise and experience is achieved to deliver effective governance and achievement of the strategic goals of the School, as well as encouraging diversity of background and thinking on the Board. The Governance & Remuneration Committee meets regularly to consider new Governor appointments.

On appointment, new Governors receive induction training which takes into account their existing professional qualifications or area of expertise. An ongoing programme of Governor training is in place.

GROUP STRUCTURE AND RELATIONSHIPS

The Charity has two wholly owned subsidiaries and an associated company; in addition it has close relationships with the Old Sedberghian Club and with two other unconnected separate charities, as follows:

Subsidiaries

Sedbergh School Developments Limited

Sedbergh School Developments Limited was incorporated on 11 April 1996. Its principal activities continue to be the provision of courses and other commercial trading ventures.

Sedbergh School International Limited

Sedbergh School International Limited was incorporated on 7 October 2015 in order to facilitate the provision of educational activities outside of the United Kingdom.

Associate

Sedbergh Hotel Enterprises Limited

Sedbergh Hotel Enterprises Limited is an associated company, set up to procure, refurbish and run The Black Bull in Sedbergh. Sedbergh School Developments Limited holds 36% of the issued share capital of Sedbergh Hotel Enterprises Limited

Other

The Sedbergh School Foundation (the Foundation)

The Foundation is a separate charity, whose purpose is to raise funds and support current and future investment in facilities, amenities and activities undertaken by the School. There is a close working relationship between the Foundation and the School, as described earlier.

The Old Sedberghian Club (‘OS’ Club)

The OS Club is a separate society which provides the School alumni with an extensive programme of events, activities and support. The School benefits from the generosity of a thriving network of Old Sedberghians whose close support is greatly appreciated and gladly acknowledged. There is a close working relationship between the Club, School and Foundation.

The Michael Robertson Scholarship Fund

The Michael Robertson Scholarship Fund is an independent restricted fund, not part of the Group, which kindly provides income on an annual basis to support bursary awards at the School.

Fundraising and the Foundation

The Foundation made restricted grants to the School during the year totalling £0.866m (2024: £0.598m). This included providing additional scholarships and bursary support and funding towards significant capital projects, including a major upgrade of windows in a number of the boarding houses and phase 2 of an extensive Wi-Fi and digital transformation programme. The School did not carry out any direct fundraising activity on its own behalf and did not engage third party fundraisers.

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

REFERENCE AND ADMINISTRATIVE DETAILS

Governing body

• Chair: - R J Gledhill MA (Cantab), ACA*# [retired 31 December 2025]

• I W Durrans BA (Oxon), ACA*# [from 1 January 2026]

• Co-optive: - A J N Bedford BA (North Carolina)*

• R R Biggs MA (Oxon), BSc (Cape Town)

• J D Campbell OBE, MA (hc), FRSA*

• C A Cook BEd (Oxford) [appointed 1 September 2025]

• T J Davies BSc (Newcastle) *

• I W Durrans BA (Oxon), ACA*# [appointed as Chair from 1 January 2026]

• Lt Gen Sir Andrew Gregory, KBE CB, DL, MA (Cantab)

• Revd M D Ineson MA, BA (Bristol), BEng (Birm) (representing The Lord Archbishop of York)#

• I A Keith BA (Heriot-Watt), CA [appointed 13 May 2025]

• Professor J Mennell BSc (Leeds), DL [resigned 11 February 2025]

• R N Papworth BA (Oxon)*#

• M R Piercy MA (Leicester) [retired 15 March 2025]

• J H B Warburton-Lee

• Members of the Executive Committee at 31 August 2025

Members of the Safeguarding, Audit and Risk Sub-Committee as at 31 August 2025

Headmaster and Headteacher

Sedbergh School and the Senior School: D J Harrison MA (Cantab) Prep School: W R Newman BEd (Exeter), MA (Victoria) [resigned 31 December 2024] K E Martin BA (Northumbria), PGCE [appointed 1 January 2025]

Chief Operating Officer, Company Secretary and Clerk to the Governors

P S Marshall TD [retired 21 April 2025]

B W Bennett CBE, MA (Cranfield), MPhil (Madras) [appointed 22 April 2025]

Registered address

Sedbergh School Malim Lodge Sedbergh LA10 5RY www.sedberghschool.org

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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

Bankers

Barclays Bank Plc 1[st] Floor, 3 Hardman Street Spinningfields Manchester M3 3HF

Insurance brokers

Marsh Brokers Ltd Capital House 1 - 5 Perrymount Road Haywards Heath RH16 3SY

Auditor

HaysMac LLP 10 Queen Street Place London EC4R 1AG

Solicitors

Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA

Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF

Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD

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SEDBERGH SCHOOL

TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2025

STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITOR

The Governors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Governors has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

AUDITOR

The auditor, HaysMac LLP has indicated a willingness to continue in office. A resolution to reappoint HaysMac LLP as auditor will be put to the members at the March Board meeting.

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors (who are also directors of Sedbergh School for the purposes of company law and the Trustees for the purposes of Charity Law) are responsible for preparing the Trustees’ and Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Sedbergh School Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of incoming resources and application of resources, including the income and expenditure, of the group 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 (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

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

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

The Sedbergh School Governors are responsible for keeping adequate accounting records which disclose with sufficient accuracy at any time the financial position of the charitable company 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report, which incorporates the Strategic Report, was approved by the Governors on 21 March 2026 and signed on their behalf by:

I W Durrans Chair

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SEDBERGH SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SEDBERGH SCHOOL

Opinion

We have audited the financial statements of Sedbergh School for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and School Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 of the parent charitable company’s affairs as at 31 August 2025 and of the group’s and parent charitable company’s net movement in funds, including the 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 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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SEDBERGH SCHOOL

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 Trustees’ Annual Report (which includes the strategic report and the directors’ 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 strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

• adequate accounting records have not been kept by the parent charitable company; 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 for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 21, 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 the 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 the 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.

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

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Education (Independent School Standards) Regulations 2014, safeguarding regulations, health and safety requirements, GDPR, employment law, company law and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the

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SEDBERGH SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SEDBERGH SCHOOL

financial statements such as Companies Act 2006, Charities Act 2011 and consider other factors such as payroll tax and VAT.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to income recognition and management override of controls. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted at the year end; and

• Challenging assumptions and judgements made by management in their accounting estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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.

Tracey Young (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of HaysMac LLP, Statutory Auditor London Date: EC4R 1AG

30 March 2026

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SEDBERGH SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2025

Unrestricted Restricted Note £’000 £’000 Income from: Charitable activities: - School fee income 2 22,232 - - Other educational income 3 997 - - Other ancillary income 3 200 - Other trading activities: - Trading income 4 1,992 - Investment income 5 446 94 Donations, legacies & grants 6 - 1,076 Other income: - Sundry income 89 - - Profit/(Loss) on sale of fixed assets 6 - Total Income 25,962 1,170 Expenditure on: Charitable activities 23,360 937 Raising funds: - Trading costs 1,649 - - Financing costs 630 - Total Expenditure 8 25,639 937 Net Income 323 233 Transfer Between Funds 233 (233) Other Recognised Gains/(Losses) Gain on revaluation of fixed assets 10 550 - (Losses)/Gains on investments 9 (1) - Actuarial loss on defined benefit pension scheme 20 (4) - Net Movement in Funds 1,101 - Total Funds Brought Forward 17,179 719 Total Funds Carried Forward 18 18,280 719	Endowed £’000 - - - - - - - - - - - - - - - - - - - 1,793 1,793	Total 2025 £’000 22,232 997 200 1,992 540 1,076 89 6 27,132 24,297 1,649 630 26,576 556 - 550 (1) (4) 1,101 19,691 20,792	Total 2024 £’000 22,799 687 160 1,839 387 1,032 50 (4) 26,950 24,326 1,449 565 26,340 610 - - 22 (4) 628 19,063 19,691

All activities are classed as continuing. The notes on pages 28 to 54 form part of these accounts.

25

SEDBERGH SCHOOL

BALANCE SHEETS

at 31 August 2025 Company number: 03946280

Note Fixed Assets Tangible fixed assets 10 Investments 11 Current Assets Stocks 12 Debtors 13 Cash at bank and in hand Creditors:amounts falling due within one year 14 Net Current Liabilities Total Assets Less Current Liabilities Creditors:amounts falling due after more than one year 15 Total Net Assets Excluding Defined Benefit Pension Scheme Asset Defined benefit pension scheme asset 20 Total Net Assets Funds Unrestricted funds - General reserve 18c - Revaluation reserve 18c - Pension reserve 18c 18c Endowment funds 18a Restricted funds 18b Total Funds	Consolidated 2025 2024 £’000 £’000 26,418 25,809 7,343 9,855 33,761 35,664 147 140 10,562 1,826 2,191 4,278 12,900 6,244 (19,851) (15,810) (6,951) (9,566) 26,810 26,098 (6,018) (6,407) 20,792 19,691 - - 20,792 19,691 13,304 12,753 4,976 4,426 - - 18,280 17,179 1,793 1,793 719 719 20,792 19,691	School 2025 £’000 26,416 6,776 33,192 105 10,276 1,778 12,159 (19,625) (7,466) 25,726 (6,018) 19,708 - 19,708 12,787 4,976 - 17,763 1,793 152 19,708	2024 £’000 25,807 9,288
			35,095 133 1,990 3,483 5,606 (15,695)
			(10,089)
			25,006 (6,407)
			18,599 -
			18,599
			12,228 4,426 -
			16,654 1,793 152
			18,599

The School’s net income for the year was £0.565m (2024: £0.402m) and the net movement in funds was £1.109m (2024: £0.416m).

The financial statements were approved, authorised for issue and signed on behalf of the Board of Governors on 21 March 2026.

I W Durrans Chair of Governors

26

SEDBERGH SCHOOL

CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 August 2025

Operating Activities Net income Depreciation charge Investment income Discount on fees received in advance Interest paid Investment management fee (Profit)/Loss on sale of fixed assets Defined benefit pension scheme Increase in stocks (Increase)/Decrease in debtors Increase/(Decrease) in creditors (Decrease)/Increase in fees received in advance Net cash (used in)/provided by Operating Activities Investing Activities Investment income Purchase of tangible fixed assets Proceeds on sale of tangible fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by/(used in) Investing Activities Financing Activities Interest paid Discount on fees received in advance Repayment on loans Finance lease rentals Net cash used in Financing Activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Represented by: Cash at bank and in hand Bank overdraft	2025 £’000 £’000 556 1,308 (540) 140 471 - (6) (4) (7) (8,194) 7,415 (3,437) (2,298) 529 (1,909) 7 5,210 (2,699) 1,138 (475) (140) (352) (42) (1,009) (2,169) 4,278 2,109 2,191 (82) 2,109	2024 (Restated) £’000 £’000 610 1,271 (209) - 549 4 4 (4) (15) 322 (697) 8,692 10,527 205 (1,850) 3 2,509 (8,575) (7,708) (549) - (351) (45) (945) 1,874 2,404 4,278 4,278 - 4,278

27

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

1 Accounting policies

Legal status

Sedbergh School is an incorporated (private company limited by guarantee) charity (charity no. 1080672, company no. 03946280), registered in England. The School’s address is Sedbergh School, Malim Lodge, Sedbergh, LA10 5RY.

Sedbergh School was founded in 1525 and received a Royal Charter from King Edward VI in 1551. The object of Sedbergh School is to advance education by carrying on in Great Britain a school or schools at which infants, children and pupils may obtain education and instruction in academic, sporting, musical, cultural, scientific, technical, vocational, social and commercial subjects, activities and crafts of every description. Sedbergh School meets the definition of a public benefit entity under FRS 102.

Basis of accounting

The accounts are prepared under the Companies Act 2006, Charities Act 2011 and under the historical cost convention as modified by the adoption of fair value accounting for investments and the revaluation of private dwellings. These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities Statement of Recommended Practice (“Charities SORP (FRS 102) (second edition, effective January 2019)”).

Monetary amounts in these financial statements are rounded to the nearest whole £1,000 except where otherwise indicated. The financial statements are presented in sterling which is also the functional currency of the School.

Basis of consolidation

The School’s individual accounts include the linked charities Sedbergh School Prize Fund (charity no. 1080672-1), Sedbergh School Scholarship Fund (charity no. 1080672-2), Rosalie Mary Forster Bursary Fund (charity no. 1080672-3) and Casterton School Scholarship Fund (charity no. 1080672-4).

The consolidated accounts include the School, the Appeal Fund, the Education Fund, the School’s trading subsidiaries, Sedbergh School Developments Limited (company no. 03184583) and Sedbergh School International Limited (company no 9814021) together with the share of the results of its associate Sedbergh Hotel Enterprises Limited (company no 10598631), in which Sedbergh School Developments Limited has a 36% shareholding.

All financial statements are made up to 31 August 2025 except for Sedbergh Hotel Enterprises Limited which has a financial year end of 30 June 2025. The following accounting policies have been applied consistently in dealing with items that are considered material to the School’s financial statements.

The charity has taken the exemption from presenting its unconsolidated income and expenditure account under section 408 of the Companies Act 2006.

Reduced disclosures

In accordance with FRS 102, the School has taken advantage of the exemptions from the following disclosure requirement in the individual financial statements of Sedbergh School:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flows and related notes and disclosures.

• Section 11 ‘Basic Financial Instruments’– Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches.

Going concern

The Governors consider that there are no material uncertainties that could cast significant doubt on the School’s ability to continue as a going concern.

The Governors have considered the current cash position and future forecasts including sensitivity analysis. Therefore, the Governors remain confident in the School’s cash flow forecast and its ability to meet its ongoing

28

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

obligations as they arise for the next twelve months from the date of approval of the financial statements. As a result, the financial statements are prepared on a going concern basis.

Income

Income from School fees represents fees earned in respect of tuition given during the year. Fees received in respect of tuition to be given after the year end are included in creditors as fees received in advance. Fees receivable are stated after deducting allowances for scholarships and bursaries granted by the School, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Income from trading activities represents the invoiced value, net of Value Added Tax, of goods sold and services provided to customers during the period. Turnover is recognised when substantially all the risks and rewards of ownership have been transferred.

Donations received are recognised where there is entitlement, the receipt is probable, and the amount can be measured with sufficient reliability. Donations subject to specific wishes of the donors are carried to relevant restricted funds, or to endowment funds where the amount is required to be held as permanent capital.

Other income, including investment income, is accounted for on an accruals basis.

Grant income is recognised and accrued, in the period to which the relevant costs relate.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably. Amounts are discounted to present value for longer-term liabilities. Expenditure is summarised under functional headings on a direct costs basis.

Expenditure on raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Charitable activities include expenditure associated with the objects of the School and both the direct costs and support costs relating to this activity. Grants awarded are expensed as soon as they become legal or operational commitments. Management and administration costs include governance costs incurred in the governance of the School and its assets and are primarily associated with constitutional and statutory requirements.

Taxation

The School is a registered charity and therefore it is exempt from income and corporation tax on income and gains falling within chapter 3 Part 11 Corporation Tax Act 2010 or S256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

The subsidiary undertakings, Sedbergh School Developments Limited and Sedbergh School International Limited are liable to income and corporation tax on their income and gains. Gift aid payments, if made, paid to the Charity reduce the taxable income and gains. The subsidiaries are eligible to make gift aid payments to their holding company, the School.

Fixed assets

The School buildings, boarding houses and land owned by the School at Sedbergh are included on the balance sheet at the historical cost.

Private dwellings (“residential properties”) and property held for sale are held at valuation. All movements in value arising from a change in value of private dwellings, in excess of their original cost, are shown in the Statement of Financial Activities as revaluation gains or losses, with movements being credited/charged to the revaluation reserve. Any diminution in value below original cost is charged to the Statement of Financial Activities as an impairment.

29

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

All other fixed assets are measured at their cost or values at the time of acquisition, net of depreciation and any impairment losses. Capital items costing less than £1,000 are written off as an expense as acquired.

Depreciation

Depreciation is provided on tangible fixed assets at rates and bases calculated to write off the cost less estimated residual value, based on current market prices, of each asset over its expected useful life as follows:

School buildings - 20 - 50 years Fixtures and fittings - 5 – 20 years Computer equipment - 3 years All weather pitch - 20 years Motor vehicles - 4 years Leasehold improvements - over the life of the lease

Land is not depreciated and assets under construction are only depreciated once they come into use.

Impairment of fixed assets

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 School estimates the recoverable amount of the asset.

Investments

Investments are stated in the balance sheet at their market value as at the balance sheet date. All movements in value arising from investment changes or revaluation are shown in the Statement of Financial Activities and are allocated to the appropriate fund according to the allocation of the underlying asset.

Investments in associates are recognised initially in the consolidated balance sheet at the transaction price and subsequently adjusted to reflect the group's share of total income and equity of the associate, less any impairment. Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the School has a legal obligation to make good the losses.

Investments in associates are accounted for at cost less impairment in the individual financial statements.

Stock

Stock is valued at the lower of cost (based on purchase price) and fair value.

Pension schemes

Retirement benefits for the School’s teaching staff are provided by the Teachers’ Pension Scheme (“TPS”). This is a defined benefit scheme which is externally funded and contracted out of the State Earnings Related Pension Scheme. This scheme is a multi-employer pension scheme. It is not possible to identify the School's share of the underlying assets and liabilities of the Teachers' Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS 102, the School accounts for the scheme as if it were a defined contribution scheme. The School's contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

During the previous financial year, the School opted for phased withdrawal from the Teachers' Pension Scheme. This decision means that while no new employees will be able to join the scheme, existing members will continue to participate until they leave employment or choose to opt out. Those who previously opted out will not be able to rejoin the scheme under the phased withdrawal arrangement.

New teachers will be offered the group money purchase scheme to ensure that all employees have access to a pension plan that meets statutory requirements.

The School contributes to a separate defined benefit scheme for non-teaching staff. This is an occupational defined benefit scheme. The defined benefit pension scheme current service costs are charged to the Statement of Financial Activities within staff costs. Net interest on the net defined benefit asset is recognised in the Statement

30

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

of Financial Activities. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The School only recognises an asset in respect of a surplus on the scheme valuation to the extent that the asset is recoverable through reduced future contributions or through a reimbursement from the Scheme.

The School also contributes to a group money purchase scheme which is available for all staff following the phased withdrawal from Teachers’ Pension Scheme. Contributions are charged to the Statement of Financial Activities in the period in which the salaries to which they relate are payable. Defined contribution pension costs are allocated to unrestricted funds.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Fund accounting

The School has various types of funds for which it is responsible and which require separate disclosure. These are as follows:

Unrestricted funds Funds which are expendable at the discretion of the Governors in furtherance of the objects of the School. In addition to expenditure on the School’s operations, such funds may be held in order to finance capital investment and working capital. Restricted funds Donations or legacies received which are earmarked by the donor for specific purposes. Such purposes are within the overall aims of the School. Endowment funds Funds given to the School where the income may be used in furtherance of the objects, but the capital must be retained. Designated funds The School may at its discretion set aside funds for specific purposes which would otherwise form part of the general reserves of the School.

Financial instruments

The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 in full to all its financial instruments.

Trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. Bank loans and other loans are initially recognised at their transaction value and subsequently measured at amortised cost using the effective interest rate method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Investments are initially measured at transaction price and subsequently measured at fair value through net income or expenditure.

Leases

An asset and corresponding liability are recognised for leasing agreements that transfer to the School substantially all of the risks and rewards incidental to ownership (“finance leases”). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Statement of Financial Activities so as to produce a constant periodic rate of interest on the remaining balance of the liability.

All other leases are operating leases and the annual rentals are charged to the Statement of Financial Activities on a straight line basis over the lease term.

31

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

Critical accounting estimates and areas of judgement

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

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Pension scheme valuation assumptions

The present value of the defined benefit pension asset depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 20, will impact the carrying amount of the pension asset. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 August 2021 has been used by the actuary in valuing the pensions asset at 31 August 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension asset.

The surplus on the pension scheme valuation as at 31 August 2025 has not been recognised as an asset because the Governors do not consider that it is recoverable.

Fee debtor provision

A provision for impairment of fee debtors is established when there is objective evidence that the amounts due will not be collected in line with the usual fee collections due to financial difficulty of the debtors.

Useful life of fixed assets

In making decisions regarding the depreciation of tangible fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the Statement of Financial Activities in each year.

Residential property valuations

Residential properties are held at valuation. The Governors make informed decisions on an annual basis about property values in conjunction with the School’s property advisers.

In the opinion of the Governors there are no critical judgements involved in the preparation of the financial information.

32

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

2 School fee income

2025 £’000 Gross fees Bursaries Scholarships Other concessions Less contributions from restricted funds Education Fund 14 Appeal Fund 11 Michael Robertson Scholarship Fund 150 Scholarship and Prize Funds 52 Sedbergh School Foundation 400 Casterton Old Girls Association 1 Casterton School Scholarship Fund 9 Rosalie Mary Forster Bursary Fund 4 Net fees 3 Other income from charitable activities Other educational income Other fees Bookroom Sundry Registration fees Fees in lieu of notice Surcharge interest on late fees	2025 £’000 27,215 (1,720) (1,300) (2,604) (5,624) 641 (4,983) 22,232		2024 £’000 16 12 173 54 376 2 9 4 2025 £’000 724 56 1 46 154 16 997		2024 £’000 28,102
					(1,860) (1,468) (2,621)
					(5,949) 646
					(5,303)
					22,799
					2024 £’000 517 55 17 64 25 9 687

Other educational income is generated by the School only and is credited to unrestricted funds.

33

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

3 Other income from charitable activities (continued)

Other income from charitable activities(continued)
Other ancillary income Rent Commissions Sundry	2025 £’000 174 1 25 200	2024 £’000 143 1 16
		160

Other ancillary income is generated by the School only and is credited to unrestricted funds.

4 Trading income

Short courses Facilities and lettings Book sales Royalty and service fee income nvestment income Dividends received from fixed asset investments Bank interest received	2025 £’000 1,547 44 21 380 1,992 2025 £’000 - 540 540	2024 £’000 1,270 46 - 523
		1,839
		2024 £’000 5 382
		387

5 Investment income

2025: £94,000 (2024: £102,000) of investment income was credited directly to restricted funds.

34

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

6 Income from donations, legacies and grants

Grants (restricted) Donations (unrestricted) Sedbergh School Foundation (restricted to bursaries and scholarships) Michael Robertson Scholarship Fund (restricted to bursaries and scholarships) 7 Expenditure Charitable expenditure includes: Depreciation – owned assets Depreciation – assets under finance leases Operating lease cost Other expenditure (excl VAT) includes: Auditor’s remuneration: Statutory audit of parent company and group accounts Audit of subsidiaries where such services are provided by the group auditor Total audit Other services Financing costs Interest on bank loans and overdrafts Discount on fees received in advance Finance lease interest Amortisation on bank loan arrangement fee		2025 £’000 526 - 400 150 1,076 2025 £’000 1,260 48 173 35 9 44 8 52 2025 £’000 473 140 6 11 630		2024 £’000 283 200 376 173
				1,032
				2024 £’000 1,223 48 133 33 9 42 11 53 2024 £’000 545 - 9 11 565

35

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

7 Expenditure (continued)

Staff costs Wages and salaries Social security costs Pension costs	2025 £’000 11,973 1,295 2,069 15,337	2024 £’000 (Restated) 11,871 1,138 1,779 14,788

Following the introduction of salary exchange in April 2024, employees may exchange part of their salary for employer pension contributions. As a result, these contributions are treated as employer contributions for accounting purposes.

The average number of staff employed by the School during the year:

Teaching staff Premises and grounds staff Administration and clerical staff Catering, boarding house and medical staff	2025 No. Full time 127 25 32 68 252	Part time 63 5 22 120 210	2024 No. Full time 123 27 31 76 257	Part time 65 6 26 123
				220

Neither the Governors nor persons connected with them received any remuneration or other benefits from the School or any connected organisation. Details of expenses paid to Governors are provided in note 19.

The number of employees whose emoluments, including benefits in kind, exceeded £60,000 was:

	2025	2024
	No.	No.
£60,001 - £70,000	11	14
£70,001 - £80,000	9	4
£80,001 - £90,000	3	3
£120,000- £130,000	-	1
£140,000 - £150,000	1	1
£160,000 - £170,000	1	1

Included in the 2024 figures above were 17 employees accruing benefits under defined benefit schemes until 30 April 2024. Following this date, all 17 of those employees ceased accruing benefits under defined benefit schemes as part of the phased withdrawal from TPS and joined a defined contribution scheme. Contributions to a defined benefit scheme in respect of these individuals totalled £nil (2024: £0.196m).

Key management personnel

The School considered its key management personnel during the year to comprise the two Heads, at the Senior School and the Prep School, and the Chief Operating Officer. The total employment benefits including employer pension contributions of the key management personnel were £0.575m (2024: £0.576m).

36

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

8 Analysis of expenditure

Charitable activities Teaching costs Boarding houses, staff and medical provision Premises costs Management and administration Grants, awards and prizes Publicity Raising funds Trading Financing costs (note 7) Governors’ meeting costs Audit and accountancy (exc VAT)	Staff costs £’000 8,213 2,705 1,520 1,754 - 407 14,599 738 - 738 15,337 - -		Other Depreciation Total 2025 £’000 £’000 £’000 992 - 9,205 1,989 - 4,694 3,031 1,308 5,859 1,155 - 2,909 772 - 772 451 - 858 8,390 1,308 24,297 911 - 1,649 630 - 630 1,541 - 2,279 9,931 1,308 26,576 Governance costs_(included within_ management and administration costs) 14 - 14 52 - 52

All expenditure is charged to the unrestricted fund, with the exception of £0.879m (2024: £0.752m) of grants, awards and prizes and £0.058m (2024: £0.058m) of management and administration costs that are charged to the restricted fund.

37

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

8 Analysis of expenditure (continued)

Staff costs £’000 Charitable activities Teaching costs 7,949 Boarding houses, staff and medical provision 2,650 Premises costs 1,441 Management and administration 1,624 Grants, awards and prizes - Publicity 405 14,069 Raising funds Trading 719 Financing costs (note 7) - 719 14,788 Governors’ meeting costs - Audit and accountancy - ir value gains and losses Fair value gains and losses on financial assets: (Loss)/Gain on fixed asset investments		Other Depreciation Total 2024 £’000 £’000 £’000 798 - 8,747 2,666 - 5,316 3,105 1,271 5,817 1,147 - 2,771 760 - 760 510 - 915 8,986 1,271 24,326 730 - 1,449 565 - 565 1,295 - 2,014 10,281 1,271 26,340 Governance costs_(included within_ management and administration costs) 16 - 16 53 - 53 2025 2024 £’000 £’000 (1) 22	Other Depreciation Total 2024 £’000 £’000 £’000 798 - 8,747 2,666 - 5,316 3,105 1,271 5,817 1,147 - 2,771 760 - 760 510 - 915 8,986 1,271 24,326 730 - 1,449 565 - 565 1,295 - 2,014 10,281 1,271 26,340 Governance costs_(included within_ management and administration costs) 16 - 16 53 - 53 2025 2024 £’000 £’000 (1) 22
			2024 £’000 22

9 Fair value gains and losses

38

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

10 Tangible fixed assets

Consolidated Cost or valuation As at 1 Sept 2024 Additions Revaluation Disposal Transfers CGS Adjustment As at 31 August 2025 Depreciation At as 1 Sept 2024 Charge for the period Disposal As at 31 August 2025 Net book value As at 31 August 2025 As at 31 August 2024	Residential property Leasehold improvements £’000 £’000 6,356 1,052 636 - 550 - - - 8 - - - 7,550 1,052 - 140 - 11 - - - 151 7,550 901 6,356 912	Fixtures & fittings Other assets School land & buildings £’000 £’000 £’000 13,444 1,316 14,890 1,024 102 - - - - - (4) - 269 - - - - (259) 14,737 1,414 14,631 8,843 1,127 3,530 720 139 314 - (3) - 9,563 1,263 3,844 5,174 151 10,787 4,601 189 11,360	All weather surfaces Assets under construction £’000 £’000 2,905 277 49 98 - - - - - (277) (282) - 2,672 98 791 - 124 - - - 915 - 1,757 98 2,114 277	Total £’000 40,240 1,909 550 (4) - (541)
				42,154 14,431 1,308 (3)
				15,736
				26,418
				25,809

Included within the consolidated tangible fixed assets are fixtures and fittings with a net book value of £2,000 (2024: £2,000) relating to Sedbergh School Developments Limited. The remaining tangible fixed assets of £26,416,000 are those belonging to the standalone company of Sedbergh School. The net book value of assets held under finance leases is £nil (2024: £48,000) included within School land & buildings, with a depreciation charge of £48,000 (2024: £48,000). School land and buildings have been valued for insurance purposes in October 2025 at £165m (2024: £159m). In addition, the School’s contents are insured at a value of £9.2m (2024: £9.7m).

An adjustment has been made for 4 assets under the capital goods scheme (CGS) as this became applicable following the introduction of VAT on independent school fees on 1 January 2025. The cost of these assets has been reduced by £541,000 with a corresponding VAT debtor created. This will be unwound over the remaining life of the assets.

Private dwellings are revalued on a regular basis, and a full Red Book RICS valuation was performed by Sanderson Wetherall in February 2026, at open market value. The valuation of these properties was £7.550m and therefore the assets were revalued with an increase of £0.550m. The Governors consider this to be an appropriate market value for the assets as at 31 August 2025.

39

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

11 Investments

NOTES TO THE ACCOUNTS (continued) 31 August 2025 nvestments
Consolidated At market value: Balance at 1 Sept 2024 Additions Disposal proceeds Increase in market value Balance at 31 August 2025 School At market value: Balance at 1 Sept 2024 Additions Disposals proceeds Increase in market value Balance at 31 August 2025	2025 £’000 9,855 2,699 (5,210) (1) 7,343 2025 £’000 9,288 2,370 (4,881) (1) 6,776	2024 £’000 3,767 8,575 (2,509) 22 9,855
		2024 £’000 3,204 8,007 (1,940) 17 9,288

Included within the investments are balances of £1.240m (2024: £2.950m) relating to cash investments that could be withdrawn within 95 days.

Subsidiary undertakings

The School controls 100% of Sedbergh School Developments Limited (company no. 03184583; with the same registered address as the School, detailed on page 19), which runs sporting and educational courses making use of the School’s facilities. Its trading results and summary balance sheet, extracted from its audited accounts for the year ended 31 August 2025 were:

Turnover Cost of sales Gross profit Administration costs Interest Net profit Trading income is credited to unrestricted funds in the consolidated accounts. Total assets Total liabilities Total reserves	2025 £’000 1,591 (981) 610 (450) 1 161 2025 £’000 582 (345) 237	2024 £’000 1,316 (807) 509 (443) (5) 61 2024 £’000 468 (365) 103

40

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

11 Investments (continued)

The School also controls 100% of Sedbergh School International Limited (company no. 9814021; with the same registered address as the School, detailed on page 19) which was formed to facilitate opening of an overseas school. Its trading results and summary balance sheet, extracted from its audited accounts for the year ended 31 August 2025 were:

Turnover Cost of sales Gross profit Administration costs Net profit rading income is credited to unrestricted funds in the consolidated accounts. Total assets Total liabilities Total reserves	2025 £’000 390 (32) 358 (173) 185 2025 £’000 399 (120) 279	2024 £’000 523 (26)
		497 (182)
		315
		2024 £’000 434 (23)
		411

Associated Undertakings

Sedbergh School Developments Limited holds 36% of the issued share capital of Sedbergh Hotel Enterprises Limited (company no. 10598631), set up to procure, refurbish and run The Black Bull in Sedbergh.

Investment valuation

nvestment valuation
				2025	2024
				£’000	£’000
At 1 Sept 2024 and 31 August 2025				-	-
	Type of shares held	Proportion	Country of	Registered Office
		held (%)	incorporation
Sedbergh Hotel Enterprises					44 Main Street,
Limited	A ordinary shares	36%	UK	Sedbergh, LA10 5BL

The audited results of Sedbergh Hotel Enterprises Limited for their year ended 30 June 2025 are as follows;

Aggregate amount of capital and reserves Loss for the period	2025 £’000 (2,035) (230)	2024 £’000 (1,805)
		(391)

41

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

12 Stocks

Consumables Bookroom stationery	Consolidated 2025 2024 £’000 £’000 83 63 64 77 147 140	School 2025 £’000 41 64 105	2024 £’000 56 77 133

13 Debtors

Debtors for School fees and extras Trade debtors Prepayments and accrued income VAT debtor Other debtors Amounts due from related undertakings	Consolidated 2025 2024 £’000 £’000 8,049 657 448 79 1,382 892 541 - 111 166 31 32 10,562 1,826	School 2025 £’000 8,049 - 1,321 541 111 254 10,276	2024 £’000 657 - 877 - 166 290 1,990

Debtors for School fees and extras

In prior periods, fee invoices raised shortly before the year end were treated as requests for payment and were not recognised as trade debtors and deferred income where the amounts would substantially offset. Following the introduction of VAT on school fees, such invoices are now recognised as trade debtors, with the corresponding fees element treated as deferred income and the VAT element recognised as a taxation creditor. This change affects balance sheet presentation only and does not impact the timing of income recognition.

VAT Debtor

VAT debtor includes £541,00 (2024: £nil) which relates to accrued VAT recoverable via the Capital Goods Scheme in future years.

14 Creditors: amounts falling due within one year

Trade creditors Bank overdraft Accruals and deferred income Parental deposits Fees received in advance Taxation and social security Finance lease creditor Other creditors Bank loans	Consolidated 2025 2024 £’000 £’000 1,019 939 82 - 7,026 839 959 887 8,786 12,223 1,280 282 43 48 296 232 360 360 19,851 15,810	School 2025 £’000 946 - 6,984 959 8,786 1,280 43 267 360 19,625	2024 £’000 849 - 814 887 12,223 282 48 232 360 15,695

42

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

14

Creditors: amounts falling due within one year (continued)

Accruals and deferred income

In prior periods, fee invoices raised shortly before the year end were treated as requests for payment and were not recognised as trade debtors and deferred income where the amounts would substantially offset. Following the introduction of VAT on school fees, such invoices are now recognised as trade debtors, with the corresponding fees element treated as deferred income and the VAT element recognised as a taxation creditor. This change affects balance sheet presentation only and does not impact the timing of income recognition.

Parental deposits

All new pupils joining the School must pay a deposit. This is refunded when the pupil leaves the School.

Taxation and social security

Included within taxation and social security is the VAT liability relating to bills issued in advance of the term beginning September 2025.

Fees received in advance

Fees are apportioned over the pupil’s time at the School. The money may be returned upon the withdrawal of the pupil from the School, cancellation of entry or exclusion, on the receipt of one term’s notice.

Assuming pupils remain in the School, advance fees will be applied as follows:

Within 1 year Within 1 to 2 years Within 2 to 3 years Greater than 3 years	Consolidated and School 2025 2024 £’000 £’000 5,718 6,732 1,755 2,702 802 1,585 511 1,204 8,786 12,223	Consolidated and School 2025 2024 £’000 £’000 5,718 6,732 1,755 2,702 802 1,585 511 1,204 8,786 12,223
		12,223

The movements during the year were as follows:

As at 1 Sept 2024 New contracts Refunded Amounts utilised in payment of fees to the School As at 31 August 2025	Consolidated and School 2025 2024 £’000 £’000 12,223 3,531 1,015 12,151 (226) - (4,226) (3,459) 8,786 12,223

43

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

14 Creditors: amounts falling due within one year (continued)

Deferred income

Deferred income at the prior year end relates to amounts received in advance from the Michael Robertson Scholarship Fund. In 2025, this includes Michaelmas Term 2025 fees billed in advance.

The movements during the year were as follows:

As at 1 Sept 2024 Released in year Deferred in year As at 31 August 2025	Consolidate 2025 £’000 80 - 6,179 6,259	d and School 2024 £’000 - - 80 80

15 Creditors: amounts falling due after one year

Bank loans Finance lease creditor	Consolidated and School 2025 2024 £’000 £’000 6,018 6,370 - 37 6,018 6,407	Consolidated and School 2025 2024 £’000 £’000 6,018 6,370 - 37 6,018 6,407
		6,407

Bank loans

During 2023, a £7.252m term loan was arranged at an interest rate of 2.6% over base rate and will be repaid by way of 59 monthly instalments of £30,092 with a final repayment after five years.

The bank loans fall due as follows:

			Consolidated and School	Consolidated and School
			2025	2024
			£’000	£’000
Amounts falling due within	1	year (note 14)	360	360
Amounts falling due within	1	to 2 years	360	360
Amounts falling due within	2	to 5 years	5,658	6,010
			6,378	6,730

The bank loans, with an outstanding balance at 31 August 2025 of £6.378m (2024: £6.730m), are secured by way of legal charges over certain properties and a fixed and floating debenture over the School’s assets.

44

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

16 Analysis of changes in net debt

nalysis of changes in net debt
At 1 Cash at bank and in hand Bank overdraft Sub-total Loans falling due within one year Loans falling due after more than one year Finance lease obligations Net debt	September 2024 Non Cash Movements £’000 £’000 4,278 - - - 4,278 - (360) (360) (6,370) 352 (85) (12) (2,537) (20)	Cash flows At 31 August 2025 £’000 £’000 (2,087) 2,191 (82) (82) (2,169) 2,109 360 (360) - (6,018) 54 (43) (1,755) (4,312)
			2,109 (360) (6,018) (43)
			(4,312)

17 Allocation of the charity net assets

The net assets are held for the various funds as follows: As at 31 August 2025 Fixed assets Net current assets/(liabilities) Consolidated £’000 £’000 Endowment (18a) 1,408 385 Restricted (18b) 666 53 Unrestricted funds (18c) 31,687 (7,389) 33,761 (6,951) School Endowment (18a) 1,408 385 Restricted (18b) 99 53 Unrestricted funds (18c) 31,685 (7,904) 33,192 (7,466) As at 31 August 2024 Fixed assets Net current assets/(liabilities) Consolidated £’000 £’000 Endowment (18a) 1,408 385 Restricted (18b) 666 53 Unrestricted funds (18c) 33,590 (10,004) 35,664 (9,566) School Endowment (18a) 1,408 385 Restricted (18b) 99 53 Unrestricted funds (18c) 33,588 (10,527) 35,095 (10,089)	Long term liabilities £’000 - - (6,018) (6,018) - - (6,018) (6,018) Long term liabilities £’000 - - (6,407) (6,407) - - (6,407) (6,407)	Total £’000 1,793 719 18,280
		20,792
		1,793 152 17,763
		19,708
		Total £’000 1,793 719 17,179
		19,691
		1,793 152 16,654
		18,599

45

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

18a Endowment funds

Balance at 1 Sept 2024 Consolidated and School £’000 Collingwood and Baynes Foundation 456 Scholarship and Prize Fund 1,140 Casterton School Scholarship Fund 197 1,793 Balance at 1 Sept 2023 Consolidated and School £’000 Collingwood and Baynes Foundation 455 Scholarship and Prize Fund 1,129 Casterton School Scholarship Fund 195 1,779	Income Expenditure Revaluation gains Balance at 31 Aug 2025 £’000 £’000 £’000 £’000 - - - 456 - - - 1,140 - - - 197 - - - 1,793 Income Expenditure Revaluation gains Balance at 31 Aug 2024 £’000 £’000 £’000 £’000 - - 1 456 - - 11 1,140 - - 2 197 - - 14 1,793

The Collingwood & Baynes Foundation and the Scholarship and Prize Funds form part of the School’s permanent endowment and were set up to provide scholarships and prizes to pupils attending the School.

Casterton School Scholarship Fund relates to funds transferred on the merger of Casterton and Sedbergh School. Charity Commission approval was obtained for these to be transferred from Casterton School to Sedbergh School.

46

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

18b Restricted funds

General Funds Rosalie Mary Forster Bursary Fund Casterton School Scholarship Fund Casterton Old Girls Association Scholarship and Prize Fund Casterton Scholarship Fund Collingwood and Baynes Foundation School Funds Education Fund Appeal Fund Consolidated Funds General Funds Rosalie Mary Forster Bursary Fund Casterton School Scholarship Fund Casterton Old Girls Association Scholarship and Prize Fund Casterton Scholarship Fund Collingwood and Baynes Foundation School Funds Education Fund Appeal Fund Consolidated Funds	Balance at 1 Sept 2024 £’000 - 93 5 53 - - 1 152 317 250 719 Balance at 1 Sept 2023 £’000 - 92 5 53 - - 1 151 314 248 713		Income Expenditure £’000 £’000 1,076 (843) 4 (4) - - 1 (1) 52 (52) 9 (9) 3 (3) 1,145 (912) 14 (14) 11 (11) 1,170 (937) Income Expenditure £’000 £’000 833 (709) 4 (4) - - 2 (2) 56 (56) 9 (9) - - 904 (780) 17 (17) 13 (13) 934 (810)	Transfer £’000 (233) - - - - - - (233) - - (233) Transfer £’000 (124) - - - - - - (124) - - (124)	Revaluation gains £’000 - - - - - - - - - - - Revaluation gains £’000 - 1 - - - - - 1 3 2 6	Balance at 31 Aug 2025 £’000 - 93 5 53 - - 1 152 317 250 719 Balance at 31 Aug 2024 £’000 - 93 5 53 - - 1 152 317 250 719

The Education Fund was set up to provide funds to assist the sons of Old Sedberghians (“OSs”) killed in the wars. It has since been widened to support primarily children of OSs without the means to attend Sedbergh, or indeed other pupils who are in need of financial support to attend the School.

The Appeal Fund was set up by the Governors in 1996 to fund various projects, including the raising of funds for Scholarships and Bursaries to pupils attending the School.

Casterton School restricted funds, including the Rosalie Mary Forster Bursary Fund, Casterton School Scholarship Fund and Casterton Old Girls Association, relate to funds transferred on the merger of Casterton and Sedbergh School. Charity Commission approval was obtained for these to be transferred from Casterton School to Sedbergh School. The Rosalie Mary Forster Bursary Fund remains a linked charity.

General funds are pooled grants, the majority of which are from Sedbergh School Foundation and the Michael Robertson Trust, relating to facility improvements or the betterment of education, including bursaries.

47

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

18c Unrestricted funds

Balance at 1 Sept 2024 £’000 Revaluation Reserve 4,426 Pension Reserve - General Funds 11,687 Bursary Fund – designated 545 Local Young People’s Fund 16 Collingwood and Baynes Foundation (20) School Funds 16,654 Trading Company 525 Consolidated Funds 17,179 Balance at 1 Sept 2023 £’000 Revaluation Reserve 4,426 Pension Reserve - General Funds 11,216 Bursary Fund – designated 612 Local Young People’s Fund 19 Collingwood and Baynes Foundation (20) School Funds 16,253 Trading Company 318 Consolidated Funds 16,571		Income Expenditure £’000 £’000 - - 4 - 24,639 (24,343) 27 - 9 (5) - - 24,679 (24,348) 1,981 (1,989) 26,660 (26,337) Income Expenditure £’000 £’000 - - 4 - 24,504 (24,251) 27 - 3 (8) - - 24,538 (24,259) 1,839 (1,632) 26,377 (25,891)	Transfers Revaluation gains/(losses) Balance at 31 Aug 2025 £’000 £’000 £’000 - 550 4,976 - (4) - 260 - 12,243 (27) - 545 - (1) 19 - - (20) 233 545 17,763 - - 517 233 545 18,280 Transfers Revaluation gains/(losses) Balance at 31 Aug 2024 £’000 £’000 £’000 - - 4,426 - (4) - 218 - 11,687 (94) - 545 - 2 16 - - (20) 124 (2) 16,654 - - 525 124 (2) 17,179

The Bursary Fund – designated, represents funds for Bursaries to pupils attending the School, not falling into the other funds.

Local Young Peoples’ Fund is a fund to provide grants to local children pursuing educational goals.

The revaluation reserve was created when the School’s residential property was revalued at market value. Any changes in valuation are credited/charged through the revaluation reserve.

48

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

19 Related parties

a) Transactions with Governors

Total expenses of £4,309 (2024: £6,831) were paid to 11 (2024: 11) Governors. These were in respect of travel and subsistence.

b) Transactions with subsidiaries and associate

Transactions with Sedbergh School Developments Limited (a 100% owned trading subsidiary of Sedbergh School) included expenditure of £0.829m (2024: £0.808m). As at 31 August 2025, Sedbergh School Developments Limited owed Sedbergh School £0.214m (2024: £0.259m). Amounts gift aided to Sedbergh School amounted to £0.027m (2024: £nil).

Transactions with Sedbergh School International Limited (a 100% owned trading subsidiary of Sedbergh School) included expenditure of £0.189m (2024: £0.178m). As at 31 August 2025, Sedbergh School International Limited owed Sedbergh School £0.025m (2024: £0.014m). Amounts gift aided to Sedbergh School amounted to £0.317m (2024: £0.179m).

Transactions with Sedbergh Hotel Enterprises Limited (an associate undertaking of Sedbergh School Developments Limited) included expenditure of £0.010m (2024: £0.004m). As at 31 August 2025 £nil (2024: £nil) was due between entities.

c) Sedbergh School Foundation

The purpose of the Foundation is to promote or improve the education given at Sedbergh School, or the facilities thereof, or the amenities thereof, or the well-being of the pupils educated there, in relation to their education either at the School or at some other place of education, after leaving the School. The Sedbergh School Foundation is deemed a related party as the Headmaster of the School is also a trustee of the Foundation and there are two other common trustees between the School and the Foundation.

The amount owed by Sedbergh School Foundation as at 31 August 2025 was £0.0148m (2024: £0.190m). Grants from the Foundation amounted to £0.866m (2024: £0.602m). Transactions with Sedbergh School Foundation included expenditure of £0.242m (2024: £0.196m).

The School has a lease agreement with the Foundation for the rental of Guldrey Lodge, at a current rate of £52,000 per annum. This has been charged to the Statement of Financial Activities during the year. The rent is reviewed annually in line with the specific terms of the lease agreement.

20 Pension schemes

Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £0.190m (2024: £0.989m) and at the year-end £0.015m (2024: £0.018m) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. The Valuation Report shows notional assets of £222.2bn and liabilities of £262bn, resulting in a scheme deficit of £39.8bn.

49

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued) 31 August 2025

20 Pension schemes (continued)

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

During the previous financial year, the School opted for a phased withdrawal from the Teachers' Pension Scheme. This decision means that while no new employees will be able to join the scheme, existing members will continue to participate until they leave employment or choose to opt out. Those who previously opted out will not be able to rejoin the scheme under the phased withdrawal arrangement.

The Group Self Invested Personal Pension (SIPP)

In January 2024, the School opened a new self-invested personal pension scheme for its non-teaching staff. Employers’ contributions are currently paid at a minimum rate of 5.05% of employee’s salary. Following the phased withdrawal from TPS, the scheme was opened to teaching staff on 1 May 2024. Contributions by the School, including those made by salary sacrifice, to the scheme totalled £2.069m (2024: £0.613m) and the balance outstanding with the scheme was £0.159m (2024: £0.150m).

Sedbergh School Pension Fund

The School also operates a defined benefit scheme in the UK for certain (three) non-teaching staff. Since 31 August 1994, the scheme has been closed to new members and to future accrual. The last full actuarial valuation was carried out as at 31 August 2021. The scheme entered wind up on 17 November 2025. Due to the wind up, the scheme’s investments were disinvested into cash. Subsequent to the year end, the three remaining members have taken cash equivalent transfer values from the scheme meaning that there are no remaining liabilities. The scheme wind up is expected to be completed within the next six months.

	2025	2024
	%	%
Rate of increase of pensions in payment	0.00	0.00
Discount rate	5.95	5.00
Inflation assumption RPI	0.00	3.25
Inflation assumption CPI	0.00	2.25

The mortality assumptions adopted at 31 August 2025, imply the following life expectancies:

	2025	2024
Expected age at death of current pensioner at age 65:
Male aged 65 at year end	87.7	87.3
Female aged 65 at year end	89.8	89.7
Expected age at death of future pensioner at age 65:
Male aged 45 at year end	89.3	88.9
Female aged 45 at year end	91.2	91.0

50

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

20 Pension schemes (continued)

Analysis of amount debited/(credited) to the Statement of Financial Activities:

Net interest credit Remeasurements of the net asset Return of fund assets (excluding amount included in net interest) Actuarial losses /(gains) Charge recorded through other comprehensive income Total defined benefit cost/(credit)		2025 £’000 (4) (4) 31 (22) 9 5	2024 £’000 (4) (4) (5) 5 - (4)

Cumulative actuarial losses amounted to £nil at 31 August 2025 (2024: £nil).

Changes in the fair value of plan assets and changes in present value of defined benefit obligation:

Fair value of scheme assets/present value of (liabilities) at beginning of period Contributions by employer Benefits paid Interest income/(cost) Return on scheme assets (excluding amount included in net interest expense) Actuarial gains Fair value of scheme assets/present value of (liabilities) at end of period Surplus on scheme not recognised	2025 Assets £’000 239 - - 12 (31) - 220 (77) 143	2025 Liabilities £’000 (157) - - (8) - 22 (143) - (143)	2025 Total £’000 82 - - 4 (31) 22
			77 (77)
			-

51

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

20 Pension schemes (continued)

Changes in the fair value of plan assets and changes in present value of defined benefit obligation:

Fair value of scheme assets/present value of (liabilities) at beginning of period Contributions by employer Benefits paid Interest income/(cost) Return on scheme assets (excluding amount included in net interest expense) Actuarial gains Fair value of scheme assets/present value of (liabilities) at end of period Surplus on scheme not recognised		2024 Assets £’000 222 - - 12 5 - 239 (82) 157		2024 Liabilities £’000 (144) - - (8) - (5) (157) - (157)		2024 Total £’000 78 - - 4 5 (5)
						82 (82)
						-

The return on plan assets was:

The return on plan assets was:
Interest income Return on plan assets (excluding amount included in net interest expense) Total return on plan assets The fair values of assets of the scheme were: Corporates Gilts Cash Total market value of assets	2025 £’000 12 (31) (19) 2025 £’000 - - 220 220	2024 £’000 12 5
		17
		2024 £’000 46 193 -
		239

The Fund has no investments in the School or in property occupied by the School.

Contributions of £nil are expected for the year to 31 August 2025 (2024: £nil).

52

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

21 Capital commitments

At 31 August 2025 the School had capital commitments of £0.129m (2024: £0.157m).

22 Commitments under operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

Amounts due: Within one year Between one and five years	2025 £’000 106 265 371	2024 £’000 58 103 161

53

SEDBERGH SCHOOL

NOTES TO THE ACCOUNTS (continued)

31 August 2025

24 Comparative Statement of Financial Activities

Unrestricted Restricted Note £’000 £’000 Income from: Charitable activities: - School fee income 2 22,799 - - Other educational income 3 687 - - Other ancillary income 3 160 - Other trading activities: - Trading income 4 1,839 - Investment income 5 285 102 Donations, legacies & grants 6 200 832 Other income: - Sundry income 50 - - Loss on sale of fixed assets (4) - Total Income 26,016 934 Expenditure on: Charitable activities 23,516 810 Raising funds: - Trading costs 1,449 - - Financing costs 565 - Total Expenditure 8 25,530 810 Net Income 486 124 Transfer Between Funds 124 (124) Other Recognised Gains/(Losses) Gains/(Losses) on investments 9 2 6 Actuarial losses on defined benefit pension scheme 20 (4) - Net Movement in Funds 608 6 Total Funds Brought Forward 16,571 713 Total Funds Carried Forward 18 17,179 719	Endowed £’000 - - - - - - - - - - - - - - - 14 - 14 1,779 1,793	Total 2024 £’000 22,799 687 160 1,839 387 1,032 50 (4) 26,950 24,326 1,449 565 26,340 610 - 22 (4) 628 19,063 19,691

54