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2025-08-31-accounts

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Loughborough Schools Foundation

Governors’ Report and Financial Statements

For the year ended 31 August 2025 Registered company number 4038033 Registered charity number 1081765

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Contents

Contents 2
Governors’ report 3
Statement of Governors’ responsibilities 23
Report of the independent auditors to the members of Loughborough Schools Foundation 24
Consolidated statement of financial activities 27
Consolidated summary income and expenditure account 28
Consolidated balance sheet 29
Charitable Company balance sheet 30
Consolidated cash flow statement 31
Notes to the financial statements 32

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Introduction

Governors, Trustees & Directors

The Loughborough Schools Foundation is a company limited by guarantee (Company No. 04038033) and a registered charity (Charity No. 1081765).

The following individuals served as Governors during the year ended 31 August 2025 and up to the date of this report, unless otherwise stated:

Co-opted Governors:

----- Start of picture text -----
Name Changes In Year Notes
Dr M Aslam Resigned 6 December 2024
Mr R G Bailey Appointed 2 June 2025
Mrs K L Basey
Mr A Bowden
Dr Y Carlisle Appointed 2 June 2025
Mr J Cimurs
Mrs A Clark Resigned 4 July 2025
Dr J Esson
Dr S Gowers-Cromie Resigned 22 May 2025
Mr P R K Harris Appointed 2 June 2025
Mr R Harrison Foundation Chair to 3 September 2025
Air Vice-Marshal G Howard Resigned 15 November 2024
Foundation Chair from 4 September
Mr S Leese
2025
Mrs R J E Limb Resigned 4 July 2025
Mr R McDonough Appointed 4 November 2025
Mr S Morris Resigned 6 December 2024
Mrs A Murphy
Mr R Saunt Appointed 12 September 2024
Mr J A Wood Appointed 2 June 2025
----- End of picture text -----

Nominated Governor:

Name Changes In Year Notes
Sister C Leydon Resigned 12 June 2025 Representing Rosminian Sisters of
Providence

Directors

All Governors of the Loughborough Schools Foundation are registered with Companies House as Directors of the Charitable Company.

Trustees

All Governors of the Loughborough Schools Foundation are also registered with the Charity Commission as Trustees of the Charitable Company.

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Professional Advisers:

Bankers: National Westminster Bank plc
Market Place
Loughborough
LE11 3EA
Solicitors: Veale Wasbrough Vizards
Orchard Court
Orchard Lane
Bristol
BS1 5DS
Bird, Wilford and Sale
20 Church Gate
Loughborough
LE11 1UD
Auditors: Cooper Parry Group Limited
Sky View, Argosy Road
East Midlands Airport
Castle Donnington
Derby
DE74 2SA
Tax Adviser: PKF Smith Cooper
Prospect House
1 Prospect Place
Derby
DE24 8HG
Investment Advisers: Charles Stanley & Co. Limited
25 Luke Street
London
EC2A 4AR
Insurance Broker: Hayes Parsons Insurance Brokers
Beacon Tower, Colston Street
Bristol
BS1 4XE
Land Managers: Mather Jamie
3 Bank Court, Weldon Road
Loughborough
LE11 5RF
Registered Office: 3 Burton Walks
Loughborough
LE11 2DU

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Reference Information

Loughborough Schools Foundation is an educational charity administered by Governors, who also serve as the Trustees of the Charity and Directors of the Company. The Foundation comprises three independent schools and one nursery, all located in Loughborough.

Throughout the Governors’ Report and Financial Statements, the company and the charitable trust are referred to collectively as the Foundation.

Structure, Governance and Management

The Foundation is a company limited by guarantee (Company No. 4038033) and a registered charity (Charity No. 1081765). It is governed by its Memorandum and Articles of Association.

Governors of the Foundation, as Directors of the Company and Trustees of the Charity, provide strategic leadership, ensure policy and financial oversight, hold senior leaders accountable and manage risks to guide the Foundation’s long-term success. A formal Scheme of Delegation sets out the responsibilities between the Governors, Committees, and the Executive Leadership Team.

Executive Leadership Team

The day-to-day management of the Foundation and schools is delegated to the Foundation Executive Leadership Team, which includes:

Headmaster: Mr. J Neville, MA (Oxon), MPhil (Cantab) until 23 February 2025 Loughborough Amherst School formally closed on 31 August 2025.

The day-to-day management of educational, pupil development and pastoral matters is delegated to the Heads, supported by their senior staff. Appropriate interim arrangements were put in place as necessary during the year.

In addition to the Heads, the Foundation Executive Leadership Team includes non-educational leadership roles:

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

The Bursar and External Engagement Director oversee centralised functions including finance, estates and grounds management, health and safety, compliance, catering, network services, commercial activity, marketing and the Foundation’s subsidiary companies. The Director of Transformation leads strategic change, oversight of key transformation initiatives to inform future governance and structural decisions and human resources.

Governance Assurance

All Governors give their time freely and no remuneration was paid during the year. Reasonable travelling and associated expenses were paid in accordance with Foundation policy. No Trustee/Director, or person connected with a Governor, received any benefit either from a means-tested Foundation bursary or a scholarship awarded to a pupil.

Professional indemnity and liability insurance is in place for Governors.

Membership of Relevant Professional Bodies

The Heads of the Foundation’s schools are members of the following professional associations:

The Foundation is a member of both the Independent Schools’ Bursars Association (ISBA) and the Association of Governing Bodies of Independent Schools (AGBIS). These affiliations form part of the Independent Schools Council (ISC) and provide valuable platforms for sharing expertise, knowledge and best practice across the independent sector. They also play a key role in representing the sector’s interests to Government and regulatory bodies

Governor Recruitment and Training

The Board of Governors requires a broad and diverse range of skills and experience to fulfil its responsibilities effectively. The Governance Committee (formerly the Nominations and Governance Committee) oversees recruitment, selection, induction and succession planning for Governors.

Governor vacancies are advertised when they arise, and the Foundation has diversified its recruitment methods, including the use of a recruitment partner to target candidates with specific skills and experience. A skills audit is maintained and regularly reviewed to inform both recruitment priorities and Governor development.

The Board recognises that its current composition is less diverse than in previous years, following recent resignations. Addressing this remains an ongoing priority, and the Board continues to work towards agreed diversity goals.

All newly appointed Governors undertake a structured induction programme, including meetings with members of the Executive Leadership Team and relevant Committee Chairs. Governors are asked to complete a Core Training Programme at different stages of their governance journey. This programme ensures consistent onboarding and supports Governors in fulfilling their responsibilities effectively.

Governors are also encouraged to attend external development opportunities to complement internal training. The Foundation is a member of the Association of Governing Bodies of Independent Schools (AGBIS), and Governors are encouraged to participate in its conferences and seminars. A record of Governor training is maintained.

Governance and Committee Structure

The Board of Governors exercises oversight and strategic control of the Foundation through a combination of functional committees and individual School Boards, which operate as committees of the main Board with a specific focus on each school. Members of the Executive Leadership Team attend Governors’ meetings to support informed decision-making.

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Each School Board provides a forum for Governors to engage with school-specific matters, particularly academic and educational issues and to represent the school during ISI inspections. Each Board comprises at least three Governors and meets termly.

An external review of governance was completed in March 2023 and implementation of its recommendations continued throughout 2024/25. This included a detailed consideration of the Foundation’s governance and leadership structure, which led to the decision to create a Chief Executive Officer (CEO) role to provide unified strategic leadership across the Foundation. The role was developed during 2024/25, with the recruitment process launched in September 2025. The new CEO, Mr Chris Staley, took office in January 2026. The CEO reports to the Board and leads the Foundation’s strategic direction, enabling Heads to focus fully on their individual school communities.

An internal governance review was also undertaken during 2024/25 to assess committee effectiveness and streamline responsibilities. As a result:

Committees in Operation During the Year

School Boards (Loughborough Grammar School, Loughborough High School, Fairfield Prep School, Loughborough Amherst School)

Focused on academic and educational matters and served as the primary interface between Governors and the schools. Each School Board also includes an Assistant Nominated Safeguarding Governor, who supports the Foundation’s safeguarding responsibilities at the individual school level and acts as a point of liaison with the Foundation Lead Governor for Safeguarding.

Finance, Audit and Risk Committee

Oversees financial performance, long-term planning, investments, reserves, external audit, internal reviews and risk management. Strengthened during the year to absorb additional responsibilities related to compliance and risk. Composed of at least three Governors, including the H&S Governor, and meets termly.

Governance Committee (formerly the Nominations and Governance Committee)

Oversees governance practices across the Foundation, including recruitment, selection, induction and succession planning for Governors. Also leads on structural governance reviews. Composed of representatives from the School Boards and chaired by the Foundation Chair. Meets termly.

Remuneration Committee

Determines the remuneration of the Foundation’s senior officers. Composed of the four School Board Chairs and chaired by the Foundation Chair. Meets annually.

Subsidiary Trading Board

Oversees the Foundation’s incorporated subsidiaries. Composed of three Directors, two of whom are not Trustees of the Foundation.

Additional Governance Roles

In addition to the formal committee structure, the Board has appointed Foundation Lead Governors for the following key areas:

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

These roles provide strategic oversight and ensure that the Foundation maintains high standards of compliance, inclusion and pupil welfare across all schools.

Going Concern

The Trustees remain confident that the Foundation is able to meet its financial obligations as they fall due, as well as continuing to invest in the fabric of the buildings and the facilities and equipment required to provide an excellent education at the Foundation’s schools. Whilst the Foundation has net current liabilities of £60k this includes a mortgage on a property of £534k which is due for renewal in 2026 and which we fully expect to refinance on normal lending terms. Excluding this the Foundation has net current assets of £474k. The Foundation holds sufficient cash reserves, minimal debt, and continues to generate sufficient funding and operating surpluses to meet its financial obligations. The Trustees note that the 2024-25 result was affected by the extraordinary costs for the closure of Loughborough Amherst School and following this closure in summer 2025 the Foundation will see a significant reduction in costs and is in a stronger and more stable financial position moving forwards.

The Foundation prepares budgets and long-term forecasts to understand its financial position, model risks and scenarios, and continually takes action to ensure that it can remain in a financially sustainable position and deliver its charitable objectives. The longer-term forecasting that has been completed shows that the Foundation will continue to generate operating surpluses and maintain sufficient cash funds to continue meet all its financial obligations.

Based on this assessment the Trustees are confident that the Foundation can continue as a going concern for the foreseeable future and the financial statements have therefore been prepared on a going concern basis.

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

STRATEGIC REPORT

The Foundation remains committed to delivering an outstanding academic experience, a nurturing pastoral environment and a rich co-curricular offering across its schools. In our senior schools we are relatively unique in offering single sex education on one co-ed campus and this gives our pupils the best of both worlds in their experience with us and allows our educational leaders to deliver a better and more rounded experience for pupils. Despite Government policy and external factors creating an exceptionally challenging year we have responded to these challenges and continue to maintain high pupils numbers and a strong financial position. As ever, our pupils continue to make us proud with their outstanding achievements as we support them to develop and grow for the next step in their journey, wherever that may be.

Key Performance Indicators

The Foundation assess its success in the implementation and pursuit of its Charity strategy by following key performance indicators:

Academic Excellence at Loughborough

The Foundation is proud to report another year of strong academic performance across its schools, reflecting the dedication of pupils and staff and our continued commitment to excellence.

Loughborough Grammar School

A Level  A: 18%  A–A: 45%  A*–B: 71%

GCSE

Loughborough High School

A Level  A: 30%  A–A: 64%  A*–B: 87%

GCSE

 Grades 9–8: 51%  Grades 9–7: 69%  Grades 9–5: 92%

Loughborough Amherst School

A Level  A: 4%  A–A: 18%  A*–B: 47%

GCSE

 Grades 9–8: 24%  Grades 9–7: 37%  Grades 9–5: 77%

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Fairfield Prep

The 2024–25 academic year has been another highly successful one for Fairfield Prep School. We were also delighted that, as in previous years, every Year 6 pupil who applied for a place within the Loughborough Schools Foundation was successful in gaining entry to either Loughborough Grammar School or Loughborough High School. Alongside an impressive number of academic and music scholarships, it was particularly pleasing that several pupils were awarded sporting scholarships, an exciting first in Fairfield’s distinguished history.

In November 2024, the Independent Schools Inspectorate (ISI) judged Fairfield to be fully compliant across all five regulatory standards. The report was particularly complimentary about our EYFS provision, noting the expertise and dedication of staff and the excellent range of learning opportunities available to our youngest pupils. The few recommended next steps were limited to minor enhancements, all of which are already being addressed as part of our ongoing School Development Plan, an outcome that represents the very best result the governors and staff could have hoped for.

ISI Inspections

In November 2024, all Foundation schools underwent full inspections by the Independent Schools Inspectorate (ISI). These inspections provided valuable external assurance across key areas including educational quality, safeguarding, leadership and governance. Each school met the required standards in all categories, affirming the Foundation’s commitment to high-quality provision and pupil welfare. The inspection outcomes have informed ongoing strategic planning and reinforced confidence in the schools’ educational and pastoral approach.

Pupil Numbers

The pupil numbers remain strong and at the start of the year were 791 at Loughborough Grammar School, 522 at Loughborough High School, 448 at Fairfield Preparatory School and 291 at Loughborough Amherst School. An average of 130 children also attended the Nursery setting throughout the year, equivalent to 69 Full Time pupils.

Sporting Achievement at Loughborough

Our sports programme focuses on both high performance and inclusive participation and has continued to grow.. With a wide range of specialist coaches and teachers we continue to see high participation levels at all age groups across a range of sports and strong performance from both individuals and teams at a competitive level.

This year we were excited to launch our sports scholarship programme, with expert external assessors from Loughborough University supporting assessments across Year 7, 8, 9 and 12. Scholars joined the Foundation in September 2025. Alongside this, the Student Athlete Programme successfully supported 16 pupils this year, providing tailored academic and sporting guidance.

The Foundation’s football programme has expanded significantly, with national placings for LGS teams including a top-15 finish for the U15s, and our boys and girls football teams at Fairfield reaching the IAPS National Finals From September 2025, football will feature on the games programme across all senior schools, with a comprehensive boys’ offer and a growing girls’ programme.

Our pupils achieved notable success across a wide range of sports:

National Champions:

Loughborough High School First XI Hockey Team – Winners of the England Hockey Tier 2 Cup Loughborough High School Under-14 Badminton Team – Champions of both the England Schools Badminton competition and the School Sport Magazine Cup

National Finalists:

Fairfield Prep School Under-11 Boys and Girls Football Teams – Finalists in the IAPS National Football Competition Loughborough Grammar School U15 Football Team – Semi-finalists in the ISFA National Bowl Loughborough Grammar School U16 Badminton Team – Ranked in the top 10 nationally

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

County Champions:

Loughborough Grammar School – County champions in U15 & U16 Rugby Loughborough Grammar School – County champions U14–U16 Badminton Loughborough Grammar School – County champions U15 Cricket Loughborough High School – County champions in U14–U16 Badminton Loughborough High School – County champions in U15 Indoor Cricket

Loughborough Grammar School and Loughborough High School – county champions in Key Stage 3 Swimming

Every pupil in Fairfield from Year 4 to Year 6 was offered the opportunity to represent their school in sport each term, reflecting our commitment to inclusive participation.

The Foundation also continued to develop its trips and tours programme, including domestic fixtures and a longhaul rugby tour to South Africa in July 2025.

Strategic partnerships with Loughborough University, Leicester City Football Club, Nottingham Forest Football Club and national governing bodies have strengthened our outreach and visibility. Staff continue to contribute nationally, including representation on the RFU National Schools Board and presentations at PGCE programmes as well as hosting student teachers from Loughborough University and Nottingham Trent University and being one of the Loughborough University ITap Centres.

Outstanding Music at Loughborough

Our pupils benefit from a dedicated music faculty located in a purpose built building including recital hall and numerous practice rooms on campus and benefitting from instruction from many professional musicians and teachers. Music is highly visible across all of our schools , with over 200 concerts and events annually and maintaining strong engagement with pupils, parents and the wider community. The department’s work is underpinned by a commitment to excellence, inclusion and outreach with one of the highlights of the year being our annual spring concert at De Montfort Hall Across the board range of instruments we support, during the year we were delighted to replace and upgrade our entire range of pianos. This included purchasing a Bösendorfer grand piano for our recital hall for our pupils to use, but also a range of other high quality pianos to support a wide variety of different genres.

This year saw strong academic outcomes in both GCSE and A Level Music, with 100% pass rates and high value-added scores. Performance exam results were equally impressive, with 71% of all entries achieving Merit or Distinction and 84% of Grade 6–8 candidates reaching the same standard. Two diploma-level awards were also achieved.

Pupils secured places at leading institutions including the Guildhall School of Music and Drama, Royal Birmingham Conservatoire, Durham University and Leeds University.

Outreach and community engagement remain central to the department’s ethos. Initiatives included:

Staff are active nationally, contributing to professional associations, adjudicating competitions and performing professionally. The Director of Music was recently elected President of the Music Teachers Association and will contribute to national curriculum strategy and advocacy.

Broad Co-curricular at Loughborough

Beyond music and sport all schools in the Foundation offer a wide range of co-curricular and enrichment activities for our pupils to both enjoy and support their broader development. In fact there are over 140 clubs and societies across the Foundation giving every pupil a chance to find something to suit their interests!

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

We maintain a large Combined Cadet Force, offering pupils significant personal development by building leadership, discipline, confidence, and resilience and our Royal Air Force cadets proved themselves to be the best in the country in retaining the Royal Air Squadron Trophy for the second year in a row. We also remain both proud and humble in our involvement in the market towns’ annual service of remembrance.

Performing arts thrive at Loughborough with a vibrant and inclusive offering, In additiona to regular creative and performing opportunities within the schools, pupils led our large productions of Madagascar at Fairfield, and Mary Poppins and The Little Mermaid across our senior schools.

Strategic Developments

This year has been defined by two major strategic developments: the closure of Loughborough Amherst School and the continued evolution of governance and leadership, including the creation of a Chief Executive Officer (CEO) role.

Responding to Changes in External Environment

As a result of a new Government taking office in July 2024 there were some significant changes in policy towards independent schools and additional taxes affecting all businesses. It was confirmed in July 2024 that independent school fees would become subject to VAT from 1[st] January 2025 and that independent schools would also lose charitable business rates relief. These policy changes had been previously identified as a risk. In addition, in October 2024 it was announced that businesses, including the Foundation, would be subject to a significant increase in employers national insurance taxes and that the National Living Wage would increase far in excess of inflation. These Government policy changes build on the longer-term trend of falling birth rates affecting education nationally.

For 2024/25 a significant focus of the Foundation was in preparing for, and responding to the challenges that the Government taxes and policy changes created, whilst trying to maintain the quality of our academic, co-curricular and pastoral offer.

Closure of Loughborough Amherst School

Following a formal consultation process initiated in January 2025, the Board made the exceptionally difficult decision to close Loughborough Amherst School at the end of the 2025 academic year. This decision was taken with deep regret and only after extensive engagement with stakeholders and thorough consideration of all available options.

Over the course of the year, the Board convened many times to ensure that feedback from parents, staff and the wider community was carefully reviewed. The consultation process included town hall meetings, a formal staff consultation, engagement with parent groups and direct correspondence with families. These forums revealed a profound emotional connection to Amherst and the Board acknowledges the distress this decision has caused.

Despite exploring multiple alternatives, the decision was ultimately driven by long-term strategic and financial considerations. These included a declining trend in pupil numbers, demographic shifts and the need to consolidate resources in response to the implementation of VAT on school fees and increases in costs. The Foundation’s priority remains the provision of high-quality education, and this decision, though painful, was necessary to safeguard the future of the wider Foundation.

Pupils successfully transitioned to continue their education in a variety of schools, including those within the Foundation, and the pupils sitting exams in years 11 and 13 achieved success in light of these difficult circumstances.

To minimise compulsory redundancies the Foundation supported staff to redeploy into alternative roles within the Foundation and also implemented a voluntary severance scheme. This approach was designed to support staff in making informed decisions about their future and to reduce the overall impact on the workforce.

Boarding at Loughborough High School

In response to the closure of Amherst and the need to maintain continuity for boarding pupils, the Board approved a strategic decision for Loughborough High School to return to boarding. A material change application was submitted in the summer term of 2025 and formally approved in October 2025.

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Governance and Leadership Review

In response to the increasingly complex educational and financial landscape, the Board had previously approved the creation of a Chief Executive Officer (CEO) role to lead the Foundation into its next strategic phase and commenced the recruitment process. This marks a significant evolution in our governance model and reflects our commitment to strategic coherence, operational agility and long-term sustainability.

The CEO will serve as the single point of executive leadership, reporting directly to the Board of Governors. This structure enables more streamlined decision-making and governance, allowing the Foundation to respond with greater confidence and agility to sector-wide opportunities and challenges. The CEO will work closely with the Board, Heads and Central Services to develop and deliver a unified Foundation strategy that supports growth, encourages innovation and ensures the effective use of shared resources.

Loughborough Grammar School Leadership

This year marked a significant leadership milestone for Loughborough Grammar School with the successful appointment of a new Headteacher. Following a period of interim leadership, this permanent appointment brings renewed clarity and strategic direction to the school.

The Board has actively supported the new Headteacher’s transition, helping to shape a long-term vision that reflects the school’s values and aspirations. This leadership development is expected to bring renewed consistency and confidence to the school community, enabling a sharper focus on academic excellence and pastoral care.

Marketing & Recruitment Strategy

The Marketing & Recruitment Strategy continued to evolve over the year, taking a data and insights-led approach to navigate the challenging market conditions. The development of value propositions for each of the schools within the Foundation has strengthened content through social media, recognised as a core channel for prospective parents, and delivered increases in engagement. A significant body of work has taken place to redevelop the Foundation’s websites ready for launch early in the 2025/26 academic year.

A concerted effort has been made to build brand awareness across key regional recruitment hotspots through a mix of advertising and PR activity across digital, print and out-of-home channels. This has been supplemented with the commencement of relationships with, amongst others, Leicester City Football Club (community partnership) and the East Midlands Chamber (membership) to further increase brand visibility.

Improvements have been made to key recruitment events, such as the Foundation’s Open Morning, to enhance the customer experience for prospective families. More stringent analysis of the recruitment pipeline has enabled improvements in conversion from enquiry through to enrolment.

Financial Review

The Foundation has continued to navigate a challenging external environment which during 2024/25 included independent schools becoming subject to VAT, increases in taxation, ongoing inflation and falling birth rates.

Independent schools becoming subject to 20% VAT from 1 January 2025 meant that school fees needed to be exceptionally increased, although through recovering VAT on our purchases and a number of other savings and efficiencies we were able to limit the impact to parents to 15%. This was in line with most other independent schools. We do however recognise that this was a significant increase for parents, many of whom make difficult choices to prioritise the benefits of an independent school education.

Total income for the year of £36.5m (2024: £38.3m) was lower than last year. By limiting the impact of VAT to our parents to 15% this led to revenue from school fees reducing from £35.6m to £34.5m (3%), as the Foundation doesn’t keep the 20% VAT on school fees and pays this over to HMRC. We saw another strong year of donations and legacies at £0.9m (2024: £1.7m) and continue to be well supported by our alumni community, with 2024 being particularly high as a result of a large legacy from Derek Greasley which will support pupil bursaries for many years to come. Our investments continued to perform in line with our expectations and generated income of £0.5m (2024: £0.5m).

Total expenditure of £37.1m (2024: £36.6m) is +1.5% higher than 2024. The Foundation managed to successfully control costs despite the removal of exemptions for business rates and increases in employment taxes and national

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

living wage part way through the year. The Foundation also benefitted from being able to recover VAT on some of its purchases and has been working to recover VAT on major building projects in line with the applicable rules. We continue to monitor our costs to make savings and efficiencies whilst still prioritising the quality of our educational, pastoral and co-curricular programme.

Extraordinary costs in relation to the closure of the Loughborough Amherst School were £2.9m, which includes the write off of historical spend on the leased premises. Whilst the closure of the school was an incredibly difficult decision to make, it will provide long term financial benefits and stability to the Foundation.

The overall result for the year is a net expenditure of £3.6m (2024: net income of £2.1m). Excluding the extraordinary closure costs the movement on unrestricted funds is a surplus of £0.1m (2024 £1.3m) and the Foundation will in the future benefit from a lower cost base from consolidating its activities onto our Burton Walks campus and Quorn playing fields.

Net movement on unrestricted funds
Extraordinary Costs – Amherst closure
Net movement on unrestricted funds before
extraordinary costs		 2025
£000
(2,769)
2,864
95		 2024
£000
1,336
-
1,336

Some turbulence within financial markets returned during the year as a result of US trade policy, leading to the Foundation’s investments falling in value by £0.1m at the end of the year (2024: gaining by £0.3m). The overall cash position remains healthy with cash balances of £3.9m (2024: £9.0m). The Foundation spent £1.2m on new property plant and equipment during the year (2024: £1.9m) , which is below the depreciation charge of £2.1 million. 2024 saw the development our new sixth form centre in Loughborough Grammar School which opened at the start of the autumn term in September 2025. This created a fantastic new study, wellbeing and social spaces and included a new café. This was generously supported by the Shepherd family. The Foundation’s challenge for the future is ensuring that sufficient surpluses are made to continue to invest in the excellent facilities that are currently on offer.

The Foundation’s two subsidiary companies had a good trading performance. LSF Shop LTD made a profit of £18,000 compared to £34,000 in 2023-24, with the closure of the Amherst school reducing uniform sales in summer 2025. Thomas Burton Development LTD made a profit of £225,000, increasing from £144,000 in the previous year as a result of the increased hire of school facilities. Profits from both companies are gifted to the parent charity.

Covid 19 Pandemic

Repayments for the CBILs loan (Coronavirus Business Interruption Loan Scheme) were made through 2024/25 with £0.6 million outstanding at the year end. This is due to be fully repaid in June 2026. No funds were received in relation to the Covid 19 Pandemic during the year.

Investment Policy/Performance:

The investment objectives are to generate the highest possible returns, which are commensurate with a low to medium level of risk. The Foundation does not specifically invest in ethical investments and its investment portfolio is managed by two investment managers: Charles Stanley Wealth Managers and CCLA Investment Management Ltd. The value of the portfolio increased from £5.1m to £6.8m during the year, with a large legacy donation received in cash towards the end of 2024 being invested in the portfolio in the year.

The Finance, Audit and Risk Committee routinely review the investment portfolio and compare performance to relevant benchmarks, such as the FTSE 100, the FTSE All share and the MSCI PIMFA Private Investor Balanced Indices to benchmark performance.

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Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Reserves

The Foundation aim to hold funds which are sufficient but not excessive in order to fund current operational requirements and future development. The Foundation is mindful of the need to maintain a level of reserves which enables the organisation to respond to circumstances and mitigate risk, including ensuring compliance with the terms of the mortgages and bank loans. The Trustees review the reserves policy on an annual basis.

The Foundation aims to hold a minimum of £2m (cash balances) at all times which is approximately one month’s net operating costs. The value of cash held at 31 August 2025 was £3.9m (2024: £9.0m) and, as part of that the value of unrestricted cash was £1.5m (2024: £4.7m).

The Foundation total reserves at 31 August 2025 were £66.6m (2024: £70.2m) and these comprised endowment funds of £45.6m (2024: £46.6m), restricted funds of £7.4m (2024: £7.2m) and unrestricted funds of £13.6m (2024: £16.4m). The unrestricted funds include certain tangible fixed assets and related mortgage loans, which are functional assets used in the day-to-day delivery of educational activities by the Foundation. Excluding the value of these fixed assets and related mortgage loans, there is a deficit of unrestricted funds of £4.1m (2024: £2.3m). Although this balance of unrestricted funds is negative, this is not uncommon across the independent schools’ sector and demonstrates the Foundation’s investment of its operating reserves into new school buildings and an ongoing program of refurbishment, development and investment in order to maintain the excellent teaching facilities for our pupils.

Philanthropy and Alumni Relations

The ability of the Foundation to offer wider access through financial support is reliant upon the ongoing generosity of the Schools’ core community (parents, alumni, staff, governors and friends) alongside that from external companies, trusts and foundations. Fundraising efforts are underpinned by a comprehensive alumni engagement strategy which delivers key events, communications and a volunteering programme.

Fundraising efforts and initiatives primarily support bursaries and relieve hardship for parents where the pupil’s education and future prospects would otherwise be at risk. Funds have also been raised to enhance the pupil experience by establishing prizes, strengthening sport and music, and providing travel and cultural opportunities. During the year £0.9m was raised (2024: £1.7m) with 2024 seeing the hugely generous legacy from Derek Greasley.

Grants and bursaries are awarded based on educational ability and financial circumstances, subject to the restrictions imposed by the donor of the funds.

The Foundation uses an in-house team for the purpose of fundraising and is fully registered with the Fundraising Regulator to which it pays the statutory fundraising levy and abides by their Fundraising Code of Practice.

There have been no failures to comply with the scheme or standards and no complaints received by the Foundation about its fundraising activities. The Foundation has taken all reasonable precautions to protect vulnerable people and other members of the public from unreasonably intrusive or persistent fundraising.

Employment

The Foundation is an equal opportunities employer; and has a responsible approach to employment legislation. The Foundation met the statutory requirements to provide a report on gender pay equality and will continue to monitor this area and make changes, when and where they are practicable.

The Foundation welcomes applications for employment from disabled persons and assists, whenever practicable and taking into account HR best practice, the recruitment, training, career development and promotion of disabled people. Should an employee become disabled during their employment we make all reasonable adjustments to ensure they can remain in employment; and where necessary facilitate re-training.

The Foundation encourages the continuous development and training of its employees and the provision of equal opportunities for the training and career development of all employees.

15

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

The Foundation is committed to engaging with its employees. A variety of methods are used to achieve this, including team meetings, Common Room briefings and our staff representative groups. Since early 2022 the Foundation has voluntarily recognised the teacher’s trade union NASUWT.

Salaries

The arrangements for setting the pay and remuneration of the Foundation’s key management personnel and any benchmarks, parameters or criteria used in setting their pay are detailed in note 8 in the notes to the financial statement.

Future Plans

The Foundation will focus on embedding the new leadership structure and finalising the appointment of the CEO. Strategic priorities for 2025/26 include:

Risk Management

The Trustees are responsible for the identification and management of the risks faced by the Foundation, including the individual schools. Day-to-day oversight of risk management is delegated to the Bursar and the wider Executive Team, who are responsible for implementing controls and monitoring risks. The Finance, Audit and Risk Committee provides more detailed oversight on behalf of the Board of Trustees, particularly in relation to strategic risks.

Risks are identified, assessed, and mitigated through established controls and continuous improvement efforts. The Foundation’s risk management strategy includes:

The Trustees group risks into six categories:

To further strengthen governance controls, the Foundation reviewed the governance and leadership structure and has introduced a Chief Executive Officer role to provide strategic leadership across the organisation and reinforcing the distinction between governance and operational responsibilities.

16

Loughborough Schools Foundation Governors’ Report and Financial Statements

For the year ended 31 August 2025

In addition to VAT, the Foundation faces broader financial risks including rising operational costs, inflationary pressures, increased pension and staffing costs and sharper competition. These factors require careful financial planning and strategic agility.

To support long-term resilience and informed decision-making, the Foundation has an established 10-year financial forecasting model and financial strategy. Together, these tools support strategic decisions around fee structures, investment priorities and resource allocation, ensuring the Foundation remains financially robust while continuing to deliver high-quality education.

A key development in this area was the Foundation’s review of pupil image use in marketing and communications. This initiative responded to new AI-related child protection offences, a sharp rise in AIgenerated child sexual abuse material reports and updated sector guidance. Mitigation measures included reducing the use of identifiable pupil images, securing explicit consent, removing metadata and exploring alternative visual formats. These actions reflect the Foundation’s commitment to safeguarding in the digital age and its proactive approach to managing reputational and technological risk.

Public Benefit

The Foundation continues to make a meaningful and measurable difference to both its pupils and the wider community. The Governors confirm that they have given due regard to the requirements of the Charities Act 2011 and the public benefit guidance published by the Charity Commission, particularly as it applies to independent schools.

Financial Support

The Foundation remains committed to broadening access to its schools through bursary provision. During 2024/25 means-tested financial assistance totalling £1,345,000 was awarded in the following areas:

17

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Educational Outreach and Partnerships

The Foundation actively fosters collaboration between independent and state sectors, sharing resources and expertise to enhance educational outcomes.

Educational Experiences

The Foundation believes that education should be shared. Its schools actively collaborate with state schools, universities and community organisations to extend learning beyond their own pupils.

Over 250 pupils from state schools attended 11 academic masterclasses in subjects including mathematics, computing, science, languages, art and history. These sessions were designed and delivered by Foundation staff and were offered free of charge to ensure accessibility.

Loughborough Grammar School hosted a Classics Day for Adults, attended by 50 members of the public and ran an Art Workshop for Year 5 and 6 pupils from Costock C of E Primary School. Pupils from local state schools were invited to attend school productions, including a performance of Mary Poppins. Warren Hills Primary School took part in Combined Cadet Force activities as part of their elective day, now a reoccurring annual event.

Fairfield Prep School hosted events such as the Leicestershire Chess Championships, sharing facilities and expertise with local schools and promoting inclusive access to enrichment opportunities.

Educational Expertise

Loughborough Grammar School hosted a free academic conference for 35 teachers and PGCE students, reinforcing its role as a centre for educational excellence. Outreach included Oxbridge and Medicine preparation sessions for 100 high-achieving pupils from local state schools. Staff also led CPD workshops, facilitated subject network meetings and supported sports moderation sessions with local schools.

18

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

The Foundation maintained its Initial Teacher Training partnership with Loughborough University, supporting trainee teachers. Staff at Loughborough High School delivered CPD to teachers in the wider community through three events held during holidays and weekends. Fairfield Prep School hosted students and apprentices from Loughborough College, offering placements and mentoring that support the development of future educators.

Teachers also contributed to external examinations as markers and assessors and staff rom across the Foundation served as governors in local state schools and trustees of charities.

Community Engagement

The Foundation plays an active role in the local community, offering facilities and staff expertise across music, sport and volunteering.

Music

Music is a powerful connector, and the Foundation’s Music Department continues to use it as a bridge between schools and the community. Outreach included:

Sport

Sport at the Foundation is about more than competition, it’s about inclusion, development and collaboration. The Sports Department has continued to work closely with local schools and community groups to promote physical activity, leadership and shared learning.

Volunteering

Pupils and staff across the Foundation make a meaningful contribution to the wider community through a broad range of volunteering activities. These initiatives support educational development, community wellbeing and personal growth, while helping young people to understand their role in society and the difference they can make.

At Loughborough Grammar School, pupils in Years 12 and 13 volunteer weekly in local charity shops, gaining valuable experience and supporting older adults through conversation and companionship. The Voluntary Service Unit also co-ordinates food parcel collections, with the whole school contributing to harvest and Christmas donations for local families and food banks.

19

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Pupils volunteer weekly at John Storer House, providing support to adults with learning disabilities and older people. Their presence is well received and has become a visible and valued part of the centre’s weekly rhythm. During Enrichment Week, pupils work with external partners such as the Canal & Rivers Trust, Beacon Hill, and Ashmount Special School, engaging in environmental and inclusive education projects that broaden their understanding of the world and their place within it.

The Duke of Edinburgh Award continues to be a cornerstone of pupil volunteering, with over 160 pupils contributing between 15 and 50 hours each to local and national charities. Pupils also support classroom learning and sports activities in local primary schools such as Rendell and Holywell, building relationships and offering practical help.

A highlight in the calendar is the town Remembrance Day Parade, with over 200 pupils participating. The Foundation’s contingent is the largest outside London and is deeply appreciated by the local community.

At Loughborough High School, sixth form pupils volunteer weekly at St Mary’s Catholic Primary School, supporting reading and learning activities for younger children. A member of staff also coaches a local netball team, contributing 200 hours to community sport.

These activities are reviewed annually to ensure they remain impactful and aligned with the Foundation’s charitable objectives.

Charitable Donations and Fundraising

Pupils demonstrated strong commitment to charitable causes, raising £27,600 through events such as bake sales and non-uniform days. Contributions by school:

Loughborough Amherst School £4,000 Fairfield Preparatory School £6,300 Loughborough Grammar School £7,600 Loughborough High School £9,700

Pupils supported causes such as Rainbows Children’s Hospice, and took part in the LOROS Elephant Art Trail, a creative initiative that brought together art and advocacy in support of hospice care. The Combined Cadet Force contributed to community fundraising by attending the West Dalby Primary School Summer Fete, delivering activities and displays that were well received by pupils, parents and staff.

At Fairfield Prep all 445 pupils and 40 staff contributed produce to local charities including John Storer Charnwood, Women’s Aid, and The Carpenter’s Arms. Now in its 33rd year, this tradition instils empathy and community awareness in even the youngest learners.

Sharing Our Facilities

In addition to pupil-led fundraising, the Foundation supported charitable organisations through the provision of facilities free of charge or at reduced rates. Throughout the year, the Foundation welcomed a wide range of groups and initiatives, including:

20

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Economic Impact

In addition to the public benefit arising from the Foundation’s charitable activities, the Foundation makes a significant positive contribution to the local economy.

In 2024/25 it employed on average 733 people, and 82.6% of the £22.9m paid in salaries and employment on-costs (£20.1m in 2023/24) remained in Leicestershire, with an estimated 96.5% remaining in the East Midlands.

We support local businesses. In 2024/25 our total direct spend was circa £9.1m (£10.8m in 2023/24), of which £3.8m was spent in the East Midlands economy.

We estimate that in providing an education to more than 2,000 local children, the exchequer collectively saved more than £16.1m a year which it would otherwise cost to educate those children in local maintained schools. In addition, the introduction of VAT on School Fees from January 2025 resulted in VAT payments to the exchequer of £3.2m (2024/25 £18,000).

Section 172 Statement

The Trustees have acted in a way in which they consider, in good faith, promoted the success of the Foundation for the benefit of all beneficiaries and wider stakeholder groups. The ways in which they have done this are described in further detail throughout this report, specifically:

Stakeholder Section Employees Page 15 (“Employment”) Beneficiaries Pages 9-10 (Academic) and Page 17 (“Financial Support”) Community Pages 17-20 (“Public Benefit”) Economic benefit Page 21 (“Economic Impact”)

21

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Streamlined Energy and Carbon Reporting

UK Greenhouse gas emissions and energy use data for the period 1 September 2024 to 31 August 2025:

Energy consumption used to calculate emissions (kWh)
Energy consumption breakdown (kWh) :

gas

electricity

transport fuel
Scope 1emissions in metric tonnes CO2e
Gas consumption
Owned transport – mini-buses
Total Scope 1
Scope 2emissions in metric tonnes CO2e
Purchased electricity
Renewable electricity purchased
Scope 3emissions in metric tonnes CO2e
Business travel in employee owned vehicles
Total gross emissions in metric tonnes CO2e
Intensity ratio Tonnes CO2e per pupil		 2024/25
9,556,510
7,329,782
2,107,608
119,120
1,341.06
27.19
1,368.25
373.05
-365.6
3.23
1,378.93
0.64		 2023/24
9,465,300
7,327,242
2,011,735
126,323
1,340.15
16.94
1,357.09
416.53
-408.2
2.67
1,368.09
0.63

Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per pupil, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We have installed smart meters across all sites and increased video conferencing technology to facilitate staff to work from home and not travel to work for meetings. Under the government ESOS initiative there is a plan and programme of work to improve energy efficiency, including but not limited to installing LED lighting, Solar panels, upgrading the heating systems and motion sensors to control lighting.

Approved by the Board on 15 January 2026 and signed on its behalf by:

Simon Leese Chairman

22

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Governors’ responsibilities statement

The Governors (who are also Directors of Loughborough Schools Foundation for the purposes of company law and Trustees for the purposes of charity law) are responsible for preparing the Governors’ Annual Report, including the 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 Directors 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that disclose with reasonable 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Governors are aware:

The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable companies website. Legislation in the United Kingdom governing the preparation and dissemination may differ from legislation in other jurisdictions.

Approved by the Board on 15 January 2026 and signed on its behalf by:

Simon Leese Chairman

23

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LOUGHBOROUGH SCHOOLS FOUNDATION

Opinion

We have audited the financial statements of Loughborough Schools Foundation (“the company”) and its subsidiaries (“the group”) for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Company Balance Sheets, the Cashflow Statement and the related notes 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 (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 ‘The financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities SORP 2019.

In our opinion, the financial statements:

Basis for Opinion

We conducted our audit in accordance with international Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' 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 Foundation'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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

We have nothing to report in this regard.

24

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LOUGHBOROUGH SCHOOLS FOUNDATION

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Report and the Strategic 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:

Responsibilities of Governors

As explained more fully in the Statement of Governors’ Responsibilities set out on page 23, the Governors (who are Trustees of the charitable company for the purpose of charity law and 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 governors 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 Governors are responsible for assessing the groups’ and 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 governors either intend to liquidate the group or the 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.

Our assessment focussed on key laws and regulations the Foundation has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation.

25

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LOUGHBOROUGH SCHOOLS FOUNDATION

We are not responsible for preventing irregularities, including fraud. Our approach to detecting irregularities, including fraud, included, but was not limited to, the following:

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection of fraud based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

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 Auditors' 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.

Kevin Hodge�s (Senior Statutory Auditor)

For and on behalf of:

COOPER PARRY GROUP LIMITED

Date: 13 February 2026

Statutory Auditors

Sky View, Argosy Road, East Midlands Airport, Castle Donington, Derby, DE74 2SA

26

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Consolidated statement of financial activities for the year ended 31 August 2025

Unrestricted Restricted Restricted
income income Endowed 2025 Total
 2024 Total
Note Funds funds funds funds funds
£000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 3 - 875 - 875 1,694
Other trading activities 4 480 - - 480 461
Investments 5 346 190 4 540 560
Charitable activities 6 34,470 - - 34,470 35,585
Other 159 24 - 183 49
Total income and endowments 35,455 1,089 4 36,548 38,349
Expenditure on:
Raising funds:
Financing costs 9 231 - - 231 319
Trading operations 9 253 - - 253 281
Charitable activities 9 34,876 811 952 36,639 35,959
_
Total expenditure 35,360 811 952 37,123 36,559
__ _
Net income/(expenditure) before
gains/(losses) on investments and transfers 95 278 (948) (575) 1,790
Gain/(Loss) on investment assets 11 - (91) (41) (132) 319
_ _ _ _ _
Net income/(expenditure) before transfers 95 187 (989) (707) 2,109
and extraordinary items
Extraordinary items 9 (2,864) - - (2,864) -
Transfers between funds - - - - -
_ _ _ _ _
Net movements in funds (2,769) 187 (989) (3,571) 2,109
Reconciliation of funds
Total funds brought forward 17 16,367 7,232 46,559 70,158 68,049
_ _ _ ______ ______
Total funds carried forward 17 13,598 7,419 45,570 66,587 70,158
_ _ _ _ _

All incoming resources and resources expended derive from continuing operations.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 32 to 52 form part of these financial statements.

27

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Consolidated summary income and expenditure accounts for the year ended 31 August 2025

Note
Income from charitable related activities
Income from non-charitable trading activities
Interest and investment income
5
Gross income in the reporting period
Expenditure on charitable activities
Expenditure on non-charitable trading activities
9
Interest payable
9
Depreciation and charges for impairment of fixed assets
Total expenditure in the reporting period
Net income for the year (excl. extraordinary items)
Extraordinary items
9
Net income for the year		 2025
£000
35,528
480
535
36,543
(34,563)
(253)
(231)
(1,124)
(36,171)
372

(2,864)
(2,492)		 2024
£000
37,328
461
556
38,345
(33,807)
(281)
(319)
(1,071)
(35,478)
2,867
-
2,867

The income for the current year and prior year arises from continuing activities.

A detailed analysis of the subsidiaries’ trading results are set out in note 4.

Detailed analysis of the expenditure is provided in the statement of financial activities and note 9.

The summary income and expenditure account excludes endowed funds and unrealised gains/(losses) in accordance with Companies Act 2006. The account is derived from the statement of financial activities on page 27 which together with the notes to the financial statements provides information on the movement during the year of the funds of the group.

The notes on pages 32 to 52 form part of these financial statements.

28

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Consolidated balance sheet

at 31 August 2025

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stock
12
Debtors
13
Cash at bank and in hand
Liabilities: amounts falling due within one
year
Creditors
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Provisions for liabilities
Provisions
16
Net assets
Funds
Endowed funds
17
Restricted income funds
17, 18
Unrestricted income funds
18
Total funds		 2025
£000
£000
61,985
6,849
68,834
149
2,515
3,875
6,539
(6,599)
(60)
68,774
(867)
(1,320)
66,587
45,570
7,419
13,598
66,587		 2024
£000
212
1,131
8,950
10,293
(6,157)		 £000
63,693
5,086

68,779
4,136

72,915
(2,280)
(477)

70,158
46,559
7,232
16,367

70,158

The financial statements were approved by the board of directors on 15 January 2026 and were signed on its behalf by:

Simon Leese Chairman Company registered number: 4038033

The notes on pages 32 to 52 form part of these financial statements.

29

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Charitable balance sheet at 31 August 2025

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stock
12
Debtors
13
Cash at bank and in hand
Liabilities: amounts falling due within one
year
Creditors
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Provisions for liabilities
Provisions
16
Net assets
Funds
Endowed funds
17
Restricted income funds
17, 18
Unrestricted income funds
18
Total funds		 2025
£000
22
2,878
3,574
6,474
(6,534)
 2025
£000
22
2,878
3,574
6,474
(6,534)
£000
61,985
6,849
68,834
(60)

68,774
(867)
(1,320)
66,587
45,570
7,419
13,598
66,587		 2024
£000
38
1,492
8,689
10,219
(6,081)		 £000
63,691
5,086

68,777
4,138

72,915
(2,280)
(477)

70,158
46,559
7,232
16,367

70,158

The financial statements were approved by the board of directors on 15 January 2026 and were signed on its behalf by:

Simon Leese

Chairman

Company registered number: 4038033

The notes on pages 32 to 52 form part of these financial statements.

30

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Consolidated statement of cash flows
for the year ended 31 August 2025
Note
Net cash flow from operating activities
Net cash flow (used)/provided by operating activities
19
Cash flows from investing activities
Purchase of property, plant and equipment
10
Purchase of investments
11
Proceeds from sale of investments
11
Dividends, interest and rents received from investments
5
Net cash used in investing activities
Cash flows from financing activities
Repayment of Loan and Mortgage
Net cash generated in financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting year
Cash and cash equivalents at the end of the reporting year		 2025
£000
(1,912)
(1,167)
(2,542)
647
540
(2,522)
(641)
(641)
(5,075)
8,950
3,875		 2024
£000
5,087
(1,907)
(96)
123
560
3,767
(1,767)
(1,767)
2,000
6,950
8,950

The notes on pages 32 to 52 form part of these financial statements.

31

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Notes to the financial statements

1 Accounting Policies

Loughborough Schools Foundation is a company limited by guarantee and is incorporated and domiciled in the United Kingdom. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operation and principal activities is to provide a day or boarding school for boys and girls of all ages.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £’000.

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

Basis of consolidation

The group financial statements are the result of the consolidation of the financial statements of the company and its subsidiaries LSF Shop Limited and Thomas Burton Developments Limited. The financial statements of all companies are made up to 31 August 2025.

No separate SOFA has been presented for the charity alone following exemptions afforded by section 408 of the Companies Act 2006.

For the year ended 31 August 2025 the parent charity saw a net reduction of funds of £3,571,0000 (2024: increase of £2,109,000)

Fund accounting

Funds held by the charitable company are either:

Income recognition

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Fees receivable

Fees receivable are accounted for in the period to which they relate. The fees receivable are stated after deducting scholarships and other remissions granted by the charitable company; however, the stated fees include the contributions received from restricted funds for bursaries and other grants.

32

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Investment income

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Donations and legacies

Donations and legacies received for the general purposes of the schools are credited to unrestricted funds. Donations and legacies subject to specific wishes of the donors are carried to the relevant restricted fund or to the endowed fund.

Trading income

Trading income, including income from LSF Shop Limited and Thomas Burton Developments, is included when receivable.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Other expenditure represents those items not falling into the categories above.

Charitable expenditure comprises those costs incurred by the charitable group in the delivery of activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of Loughborough Schools Foundation and its subsidiaries, this includes audit fees.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Redundancy / termination payments

All redundancy and termination payments agreed during the year are recognised within the year.

33

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Tangible fixed assets

The freehold land and buildings were re-valued as at 31 August 2014 and on adoption of FRS 102 SORP this was taken as “deemed cost”.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land and listed buildings - No depreciation charge
Other freehold buildings - 5 – 50 years
Furniture and fittings - 10 years
Equipment - 4 – 10 years

Items costing less than £500 are written off as an expense when acquired.

Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in ‘(loss)/gains’ on revaluation of investments’ in the SoFA. No depreciation is charged on investment properties in accordance with the Charities SORP.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘gains/(losses) on revaluation of investments’ in the SoFA. Realised gains and losses are calculated as the difference between sale proceeds and original cost.

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Provisions

Provisions are recognised when the Foundation has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at an appropriate discount rate that reflects the risks specific to the liability.

Operating Leases

Operating lease rentals are charged to the statement of financial activities on a straight-line basis over the period of the lease.

Deferred income

Prepaid fees are held as creditors until the start of the term to which they relate. They are then transferred to the statement of financial activities and recognised as income.

Taxation

Loughborough Schools Foundation is exempt from income tax and capital gains tax under Section 505 ICTA1988.

34

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Pension schemes

Teachers’ Pension Scheme

The Foundation withdrew from the TPS on 31 August 2021, and on 1 September 2022 the Foundation re-joined the TPS. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective unit credit method. As stated in Note 21, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

Defined Contribution Scheme

The School pays contributions on behalf of its support and teaching staff, into two defined contribution pension schemes, which are managed independently of the finances of the School. The schemes are operated on a defined contribution basis, and therefore no surpluses or deficits will arise. Contributions are charged against expenditure in the year in which they fall due.

Going concern

The Trustees remain confident that the Foundation is able to meet its financial obligations as they fall due, as well as continuing to invest in the fabric of the buildings and the facilities and equipment required to provide an excellent education at the Foundation’s schools. The Trust holds significant cash reserves and continues to generate sufficient funding and operating surpluses to meet its financial obligations. The Foundation prepares budgets and long-term forecasts to understand its financial position, model risks and scenarios, and continually takes action to ensure that it can remain in a financially sustainable position and deliver its charitable objectives. The longer-term forecasting undertaken during the during the year and since the year end included assessing the financial viability of all the Foundation’s schools and, as detailed in the Trustees’ report, this highlighted that Loughborough Amherst School was no longer financially viable which led to the very difficult decision to close the Loughborough Amherst School at the end of the 2024/25 academic year. Whilst the closure of Amherst School will have some short-term financial impact on the Foundation, the longer-term forecasting that has been completed, which takes into consideration the effects of the ongoing cost of living crisis, changes to the Foundation’s VAT status, expected pupil numbers and changes in these and other market and regulatory changes, shows that the Foundation will continue to generate operating surpluses and maintain sufficient cash funds to continue meet all its financial obligations.

Based on this assessment the Trustees are confident that the Foundation can continue as a going concern for the foreseeable future and the financial statements have therefore been prepared on a going concern basis.

Limited by guarantee

Each member of the charitable company undertakes to contribute to such amount as may be required but not exceeding £10.

Re-statement of prior year figures

Where prior year figures are re-stated, the reason will be stated in the notes section to the financial statements.

2 Judgements and key sources of estimation uncertainty

The group makes estimates and assumptions concerning the future. The Governors are also required to exercise judgement in the process of applying the charitable company’s accounting policies. 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 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 addressed below:

35

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

In preparing these financial statements, the directors have made the following judgements:

Leases

The group determines whether leases entered into by the group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Investment properties

Critical estimates, assumptions and judgements relate to the determination of the carrying value of investment properties at fair value. In determining this, the group applies the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm’s length transaction. The nature, facts and circumstances of the investment drives the valuation methodology.

Recoverability of trade debtors

Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the statement of financial activities.

Depreciation and residual values

Management have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3 Donations and legacies

Unrestricted
Restricted
£000
£000
Donations
Legacies
-
-
323
552
-
875
Unrestricted
Restricted
£000
£000
Donations
Legacies
-
-
161
1,533


-
1,694

 2025
£000
323
552
875
2024
£000
161
1,533
1,694

36

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

4 Other trading activities before consolidation

The Foundation owns the entire share capital of The LSF Shop Limited and Thomas Burton Development Limited. Both subsidiaries covenant any taxable profits to the Foundation. The trading results for the year ended 31 August 2025 for both entities, as extracted from their audited financial statements, are summarised below and all relate to unrestricted funds.

The LSF Shop
Ltd
Thomas Burton
Development
Ltd


£000
£000
Turnover
261
247
Cost of sales
(177)
(2)
Gross profit
84
245
Administration
(66)
(20)
Other operating income
1
-
Operating profit
19
225
Interest payable
(1)
-
Net profit
18
225
Retained reserves bought forward
-
-
Covenant
(18)
(225)
Retained reserves carried forward
-
-
he aggregate amounts of assets, liabilities, share capital and reserves were:
The LSF Shop
Ltd
Thomas
Burton
Development
Ltd
£000
£000
Non-current assets
1
0
Current assets
238
267
Creditors: amounts falling due within one year
(238)
(267)
Net current assets / (liabilities)
1
-
Creditors: due after more than one year
-
-

Net assets / (liabilities)
1
-

Share capital and reserves
1
-		 Total
2025
£000
508
(179)
329
(86)
1
244
(1)
243
-
(243)
-
Total
2025
£000
1
505
(506)

1
-

1

1		 Total
2024
£000
461
(187)
274
(106)
1
169
(1)
168
-
(168)
-
Total
2024
£000
2
536
(537)

(1)
-

1

1

The aggregate amounts of assets, liabilities, share capital and reserves were:

Lease costs of £10,290 per annum are payable by LSF Shop Ltd to the Foundation until expiration of the lease on 1 March 2026.

37

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

5
Investment income
Unrestricted
Restricted
Endowed
£000
£000
£000
Bank interest receivable
228
69
-
Investment income
54
121
4
Rental income
64
-
-
346
190
4		 2025
£000
297
179
64
540		 2024
£000
387
120
53
560

6 Charitable activities

School income receivable comprised:

Tuition fees
Boarding fees
Bursary awards and grants
Bursary awards and grants paid for by restricted funds
Catering receipts
Other fees & grants		 2025
£000
32,036
1,316
(1,345)
683

32,690
1,368
412

34,470		 2024
£000
33,222
1,267
(1,036)
222
33,675
1,570
340
35,585

School income was £34,470,000 (2024: £35,585,000) of which £34,470,000 (2024: £35,585,000) was attributable to unrestricted funds and £nil (2024: £nil) was attributable to restricted funds.

38

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

7 Charitable net income is stated after charging:

Auditor’s remuneration:
For audit
For other services
Governors’ professional liability insurance
Depreciation of tangible fixed assets
7 (a) Staff costs
Wages and salaries
Social security costs
Pension contributions		 2025
£000
49
-
7
2,071
22,912
2,436
3,512
28,860		 2024
£000
39
-
9
2,184
20,292
2,046
3,243
25,581

The number of employees whose contracts were terminated and who left our employment within the financial year totalled 93, with an associated cost of £1,089,000 (2024: 5 employees with an associated cost of £133,000).

In addition to the payments made to employees on termination of employment, a provision of £544,000 has been made in relation to future fee guarantees made to ex-employees whose children remain pupils at the Foundation which were made as part of the overall termination settlement.

The average number of employees in the year was 733 (2024: 759) of whom 286 (2024: 295) were teaching staff and 45 were casual staff (2024: 50).

The number of employees whose emoluments exceeded £60,000 (including any redundancy payments) was:

2025 2024
£60,001 - £70,000 23 9
£70,001 - £80,000 11 5
£80,001 - £90,000 5 1
£90,001 - £100,000 3 -
£100,001 - £110,000 2 2
£110,001 - £120,000 - -
£120,001 - £130,000 2 1
£130,001 - £140,000 2 1
£140,001 - £150,000 1 1
£200,001 - £210,000 1 -
______ ______
50 20

Contributions were made to the Teachers’ Pension scheme, which is a defined benefit scheme for 22 higher paid employees (2024: 9). Contributions were paid to a defined contribution pension scheme for 28 employees (2024: 11).

39

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

8 Governors and key management personnel remuneration and expenses

The Governors consider that they, together with the Heads of the four schools and Foundation leadership team, comprise the Key Management Personnel. The Governors give of their time freely and the pay and remuneration of the Heads and Foundation Leadership team are set by the Remuneration Committee and is kept under annual review. A number of criteria are used in setting pay:

The total amount of employee benefits, including employers National Insurance contributions, employers pension contributions, private medical insurance and accommodation benefits, received by key management personnel is £1,136,000 (2024: £928,000).

The Trustees neither received nor waived any remuneration during the year (2024: £nil).

40

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

9 Analysis of total resources expended

Cost of generating funds
Trading
Financing
Charitable expenditure
Teaching costs
Welfare costs
School meals and catering
Premises
Support costs
Financial Assistance including Bursaries
and Scholarships
Governance costs
Extraordinary items
Total expenditure		 Staff
costs
£000
(note 7)
67
-

67
20,278
234
1,040
1,938
3,566
-
379
27,435
1,358

28,860		 Depreciation
Other
and
Impairments
£000
£000
(note 10)
186
-
231
-
417
-
1,987
-
50
-
928
-
2,313
2,071
1,006
-
750
-
99
-
7,133
2,071
701
805
8,251
2,876		 Total
2025
£000
253
231
484
22,265
284
1,968
6,322
4,572
750
478
36,639
2,864
39,987		 Total
2024
£000
281
319
600
21,468
113
2,163
6,140
5,377
254
443
35,959
-
36,559

Governance costs are an apportionment of the relevant peoples’ salaries with regard to the long term strategic planning of the charitable company.

Extraordinary items of £2.8m relate to the costs of the closure of Loughborough Amherst School. Costs include the impairment of assets (£0.8m); costs associated with the termination of employment, including fees guarantees for children of the respective employees (£1.3m) and legal costs (£0.6m).

Resources expended total £39,987,000 (2024: £36,559,000) of which the split between funds is as follows;

Unrestricted funds
Restricted funds
Endowment funds
Total expenditure		 Staff
costs
£000
28,860
-
-
28,860		 Other
Depreciation
and
Impairments
£000
£000
7,496
1,868
750
61
5
947
8,251
2,876		 Total
2025
£000
38,224
811
952
39,987		 2024
£000
35,143
336
1,080
36,559

Bursaries and scholarship costs of £683,000 (2024: £222,000) have been charged directly to restricted funds.

41

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

10 Consolidated tangible fixed assets

Freehold
Asset in the
land and
Furniture
Course of

Buildings
and fittings
Equipment
Construction
£000
£000
£000
£000
Cost or valuation
Balance at 1 September 2024
74,568
3,097
11,185
784
Additions at cost
195
495
294
183
Transfers
721
36
27
(784)
At end of year
75,484
3,628
11,506
183
Depreciation & impairments
Balance at 1 September 2024
(13,875)
(2,211)
(9,854)
-
Depreciation charge
(1,428)
(163)
(480)
-
Impairment charge
(771)
(31)
(3)
-
At end of year
(16,074)
(2,405)
(10,337)
-
Net book value
At 31 August 2025
59,410
1,223
1,169
183
At 31 August 2024
60,692
886
1,331
784		 Total
£000
89,634
1,167
-
90,801
(25,940)
(2,071)
(805)
(28,816)
61,985
63,693

The parent charitable company has elected, in accordance with S35 10(d) of FRS 102, to use the carrying value on 1 September 2014, the date of transition to FRS 102, of any of the above freehold land and buildings previously carried at a valuation as their deemed cost.

The value of the playing fields and listed buildings, which are not depreciated, at the end of the year was £1,600,000 (2024: £1,600,000) and £4,260,000 (2024: £4,260,000) respectively.

No value is included for land other than playing fields. The site is an integral part of the scholastic entity comprising mainly educational buildings for which no alternative purchaser is foreseen. As a consequence, any valuation of the site is impracticable at reasonable expense.

All assets are held for use in charitable activities.

There were no assets held under finance leases or hire purchase contracts.

The impairment of assets during the year relate to the announced closure of Loughborough Amherst School.

42

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Charitable company tangible fixed assets

Freehold
Asset in the
land and
Furniture
Course of

buildings
and fittings
Equipment
Construction
£000
£000
£000
£000
Cost or valuation
Balance at 1 September 2024
74,568
3,097
11,168
784
Additions at cost
195
495
293
183
Transfers
721
36
27
(784)
At end of year
75,484
3,628
11,488
183
Depreciation
Balance at 1 September 2024
(13,875)
(2,211)
(9,836)
-
Depreciation charge
(1,428)
(163)
(480)
-
Impairment charge
(771)
(31)
(3)
-
At end of year
(16,074)
(2,405)
(10,319)
-
Net book value
At 31 August 2025
59,410
1,223
1,169
183
At 31 August 2024
60,692
886
1,329
784		 Total
£000
89,617
1,166
-
90,783
(25,922)
(2,071)
(805)
(28,798)
61,985
63,691

There were no assets held under finance leases or hire purchase contracts.

The impairment of assets during the year relate to the closure of Loughborough Amherst School.

43

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

11 Investments

Listed and
Freehold
managed
Consolidated and charitable company
property
investments
£000
£000
Balance at 1 September 2024
1,210
3,876
Disposal of property
-
-
Additions at cost
-
2,542
Disposals
-
(647)
Change in market value of investments
-
(132)
Balance at 31 August 2025
1,210
5,639		 Total
£000
5,086
-
2,542
(647)
(132)
6,849

The listed and managed investments of £5,639,000 (2024: £3,876,000) comprise £2,125,000 (2024: £2,201,000) charity investments and £3,514,000 (2024: £1,675,000) investments directly listed in the United Kingdom.

There were no investments that constituted over 5% of the market value of the listed investment portfolio.

The freehold property has been revalued based on the independent valuations by qualified chartered surveyors, which were completed in March 2021 for buildings and August 2022 for land.

12 Stocks

12
Stocks
2025 2024
Consolidated Charitable Consolidated Charitable
company Company
£000 £000 £000 £000
Stocks 22 22 37 38
Subsidiaries’ stocks 127 - 175 -
149 22 212 38

44

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

13 Debtors

13
Debtors
2025 2024
Consolidated Charitable Consolidated Charitable
Company company
£000 £000 £000 £000
Fees receivable 1,816 1,816 3 3
Other debtors, prepayments and accrued 623 623 1,101 1,028
income
Trade debtors 76 - 27 -
Due from group undertakings - 439 - 461
2,515 2,878 1,131 1,492

14 Creditors: amounts falling due within one year

2025 2024
Consolidated Charitable Consolidated Charitable
company Company
£000 £000 £000 £000
Prepaid fees 1,592 1,592 2,522 2,522
Fee guarantees 194 194 104 104
Taxation and social security 1,935 1,923 563 552
Trade Creditors 984 952 1,165 1,122
Mortgage obligation 534 534 28 28
CBILs loan 562 562 613 613
Other creditors 538 517 685 663
Accruals 260 260 477 477
6,599 6,534 6,157 6,081

Fee guarantees are repayable when pupils leave. Other creditors include £421,000 (2024: £439,000) of outstanding pension contributions.

45

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

15 Creditors: amounts falling due after one year

2025 2024
Consolidated Charitable Consolidated Charitable
Company Company
£000 £000 £000 £000
Fee guarantees 631 631 675 675
Prepaid Fees 236 236 509 509
Mortgage obligation - - 534 534
CIBLs loan - - 562 562
867 867 2,280 2,280

Analysis of Mortgage Loan

Repayments are due as follows:
Amounts falling due:

Within one year

Between one and two years

Between two and five years

After five years		 2025
£000
534
-
-
-





.

.		 2024
£000
28
534
-
-
.
534
 562
.

Lender Term Security Interest Rate HSBC Bank plc 7 years 85 Castledine Street Variable, charged at 1.55% over base rate

The terms of the mortgage allow repayment without incurring any penalty.

Analysis of CBILS Loan

Repayments are due as follows:
Amounts falling due:

Within one year

Between one and two years

Between two and five years

After five years		 2025
£000
562
-
-
-





.

.		 2024
£000
613
562
-
-
.
562
 1,175
.

Lender Term Security Interest Rate Natwest Bank PLC 6 years Six residential properties 1 year interest free, interest rate after 1 year owned by the 2.37% over base rate Foundation, along with the Parkin Sports Hall.

46

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

16 Provisions

Legal &
compliance
Costs
Fee
guarantees
£000
£000
Balance at 1 September 2024
477
-
Charged in year
405
544
Utilised/released in year
(106)
-

Balance at 31 August 2025
776
544		 Total
£000
477
949
(106)
1,320
.

Legal and compliance costs relate to provisions to defend both known claims and potential litigation regarding employment related matters and potential risks that have been identified but were not fully resolved by the year end.

Fee guarantees relate to the provision of ongoing fee remission relating to the children of staff made redundant following the closure of Loughborough Amherst School in July 2025, which were provided as part of the overall staff termination settlement.

17. Analysis of net assets between funds 2025

Tangible
Fixed assets
InvestmentsNet current
assets/
(liabilities)
Non-current
(liabilities)
and provisions
£000
£000
£000
£000
Restricted income funds
Access to Education
-
2,984
1,352
-
Area of Greatest Need
845
529
662
-
Learning Environment
594
-
82
-
Prizes
-
8
39
-
Student Experiences
-
123
201
-
Total restricted income funds
1,439
3,644
2,336
-
Unrestricted income funds
18,191
-
(2,406)
(2,187)

Endowed funds
42,355
3,205
10
-

61,985
6,849
(60)
(2,187)
 Total
2025
£000
4,336
2,036
676
47
324
7,419
13,598
45,570
66,587

47

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

Analysis of net assets between funds 2024

Tangible
Fixed assets
InvestmentsNet current
assets/
(liabilities)
Non-current
(liabilities)
and provisions
£000
£000
£000
£000
Restricted income funds
Access to Education
-
1,158
3,037
-
Area of Greatest Need
551
543
871
-
Learning Environment
628
-
83
-
Prizes
-
8
38
-
Student Experiences
-
127
188
-
Total restricted income funds
1,179
1,836
4,217
-
Unrestricted income funds
19,211
-
(87)
(2,757)
Endowed funds
43,303
3,250
6
-
63,693
5,086
4,136
(2,757)		 Total
2024
£000
4,195
1,965
711
46
315
7,232
16,367
46,559
70,158

48

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

18 Movement on restricted funds 2025

Balance at 1
September
2024
£000
Access to
Education
4,195
Area of Greatest
Need
1,965
Learning
Environment
711
Prizes
46
Student
Experiences
315
.
Total
7,232
.		 Incoming

£000
888
135
(1)
2
65
.
1,089
.		 Outgoing
Transfer and
adjustment
Movements in
investments
Balance at
31 August
2024
£000
£000
£000
£000
(678)
6
(75)
4,336
(51)
-
(13)
2,036
(34)
-
-
676
(1)
-
-
47
(47)
(6)
(3)
324
.
.
.
.
(811)
-
(91)
7,419
.
.
.
.		 Outgoing
Transfer and
adjustment
Movements in
investments
Balance at
31 August
2024
£000
£000
£000
£000
(678)
6
(75)
4,336
(51)
-
(13)
2,036
(34)
-
-
676
(1)
-
-
47
(47)
(6)
(3)
324
.
.
.
.
(811)
-
(91)
7,419
.
.
.
.
7,419
.

The Foundation’s restricted funds are made up of donations and bequests from individuals and organisations that come with conditions on how they are used. For 25-26, these have been classified in line with the primary intention for the fund, and are summarised as:

Movement on restricted funds 2024

Balance at 1
September
2023
£000
Access to Education
2,600
Area of Greatest
Need
1,869
Learning
Environment
743
Prizes
45
Student
Experiences
285
.
Total
5,542
.		 Incoming

£000
1,732
86
3
2
43
.
1,866
.		 Outgoing
Transfer and
adjustment
Movements in
investments
Balance at
31 August
2024
£000
£000
£000
£000
(245)
-
108
4,195
(32)
-
42
1,965
(35)
-
-
711
(2)
-
1
46
(22)
-
9
315
.
.
.
.
(336)
-
160
7,232
.
.
.
.		 Outgoing
Transfer and
adjustment
Movements in
investments
Balance at
31 August
2024
£000
£000
£000
£000
(245)
-
108
4,195
(32)
-
42
1,965
(35)
-
-
711
(2)
-
1
46
(22)
-
9
315
.
.
.
.
(336)
-
160
7,232
.
.
.
.
7,232
.

49

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

19 Reconciliation of net income to net cash flow from operating activities

2025
£000
Cash flows from operating activities
Net Income/(expenditure) for the reporting period (as per the statement of financial
activities)
(3,571)
Adjustment for:
Depreciation charge
2,071

Impairment of tangible fixed assets
805
Dividends, interest and rents received from investments
(540)
Decrease/(increase)in stock
63
Decrease/(increase) in debtors
(1,384)
Increase/(decrease) in creditors
(331)
Increase/(decrease) in provisions
843
Gain/(loss) on revaluation of investments
132

.
Net cash (used)/provided by operating activities
(1,912)
.		 2024
£000
2,109
2,184
-
(560)
2
(225)
1,559
337
(319)
.
5,087
.

20 Analysis of changes in net debt

Balance at 31 Cash Flows Non Cash Balance as at 31
August 2024 Flows August 2025
£000 £000 £000 £000
Cash 8,950 (5,075) - 3,875
Loans falling due within one year (641) 641 (1,096) (1,096)
Loans falling due after more than one year (1,096) - 1,096 -
. . .
Totals
7,213 (4,434) - 2,779
.

50

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

21 Pensions

Teachers’ Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer make contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 as published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Government Actuary’s Department on 27 October 2023 and by the Department for Education on 30 October 2023. The key elements of the valuation and subsequent consultation are:

The employer’s pension costs paid to TPS in the period amounted to £2,129,000 (2024: £2,464,000).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Foundation has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Foundation has set out above the information available on the scheme.

Defined Contribution Schemes

The Foundation pays contributions on behalf of its support and certain teaching staff, into two defined contribution pension schemes, the Royal London Pension Scheme and the Aviva Pension Trust for Independent Schools scheme (APTIS). The assets of these schemes are held separately from those of the Foundation in independently administered funds.

The pension charge for the year in relation to these schemes represents the contributions payable by the Foundation to the schemes and amounted to £1,380,000 (2024: £779,000).

22 Governor’s expenses

In connection with their role as governors of the charitable company, two governors (2024: three governors) received reimbursement amounting to £323 (2024: £940) for expenses incurred.

51

Loughborough Schools Foundation Governors’ Report and Financial Statements For the year ended 31 August 2025

23 Operating Leases

As at 31 August 2025 the charitable company had future minimum lease payments under non-cancellable operating leases as follows:

Expiry date:
Within 1 year
Between 2 and 5 years
Greater than 5 year
Total		 2025
£000
275
569
66		 2024
£000
349
631
-
910
 980

24 Related Party Transactions

During the year recharges of £81,000 (2024: £71,000) were charged to subsidiary undertakings.

Profits of £243,000 (2024: £168,000) were gift aided to the school in line with covenants.

Included within debtors on the charitable balance sheet are amounts owed from group undertakings of £439,000 (2024: £461,000) of which £207,000 (2024: £229,000) relates to a loan which is repayable within one year and is subject to interest at 0.5% per annum. During the year interest of £1,300 (2024: £2,000) was charged on loan accounts with group undertakings.

These transactions were made in the normal course of business.

25 Capital Commitments

There were no significant capital commitments at the end of the financial year.

26 Controlling party

The Governors consider that the company has no controlling party.

27 Company

Loughborough Schools Foundations has two wholly owned subsidiary undertakings which have been included in the consolidated financial statements.

Thomas Burton Developments Ltd (company number 02750735) was incorporated on 25 September 1992 and has called up share capital of £2. LSF Shop Ltd (company number 02100016) was incorporated on 16 February 1987 and has called up share capital of £2.

The subsidiary registered offices are the same as for Loughborough Schools Foundation which can be found on page 2 of the Governors’ report.

52