OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← King Edward Vi School Southampton

2024-08-31-accounts

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

Company Registration No. 4238902 Charity Registration No: 1088030

KING EDWARD VI SCHOOL SOUTHAMPTON

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON

CONTENTS

Page
Legal and administrative information 1-2
Report ofthe Governors 3-31
Report ofthe independent auditor 32 - 35
Consolidated statement of financial activities 36 — 39
Balance sheets 40 - 41
Consolidated cashflow statement 42
Notestotheconsolidatedfinancialstatements 43-65

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON

LEGAL AND ADMINISTRATIVE INFORMATION

Charity number: 1088030
Company number: 04238902
Address: King Edward VI School
Wilton Road
Southampton
Hampshire
$015 5UQ
Telephone:
Email:		 023 8070 4561
bursar@kes.hants.sch.uk
Website: http://Awww.kes.hants.sch.uk
Professional advisors:
Auditors: Fiander Tovell Limited
Chartered Accountants
Registered Auditors
Stag Gates House
63/64 The Avenue
Southampton
$017 1XS
Bankers: National Westminster Bank plc
68 Above Bar Street
Southampton
$014 2DS
Investment advisors: Evelyn Partners
4!" Floor
Portwall Place
Portwall Lane
Bristol
BS1 6NA
Solicitors: Veale Wasbrough Vizards
Narrow Quay House
Narrow Quay
Bristol
BS1 4QA
Paris Smith
Number One
London Road
Southampton
$015 2AE
Insurance brokers: Marsh Brokers Limited
Capital House
1-5 Perrymount Road
Haywards Heath
RH16 3SY
Architects: MorseWebb
The Byre, Lantern Courtyard
The Street
Bramley
Berkshire
RG265DE

Page 1

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD Vi SCHOOL SOUTHAMPTON LEGAL AND ADMINISTRATIVE INFORMATION (continued)

==> picture [475 x 509] intentionally omitted <==

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Structural|engineers:|R|J|Watkinson|and|Partners|Limited| |12|High|Street| |Lyndhurst| |$043|7BD| |Governors|(who|are|also|directors):| |Patron|The|Lord|Lieutenant|for the|County|of Hampshire| |N|Atkinson| |Ex|officio|Governors|The|Incumbent|of the|Church|of|St|Mary,|Southampton| |Reverend|J|M|Finch| |Nominative|Governors|Hampshire|County|Council| |Councillor|N|S|Penman| |Hampshire|Chamber|of Commerce| |Vacant| |The|Old|Edwardians|Association| |A|J|Connell|BSc| |The|Senate|of the|University|of Southampton| |H|V|Nicholson|MA|(Oxon)|MSc| |Southampton|City|Council| |Position|vacant|June|2023|to|May|2024| |C|M|Lambert|[appointed|23|May|2024]| |Co-optative|Governors|M|Chaloner|MA|(Cantab)|Barrister-at-Law| |G|C|B|Davies|BSc|FCA|[appointed|1|September|2023;|appointed|as| |Chair|1|September|2024]| |D|S|Dhanda| |Dr MR|W|Evans|[appointed|21|October 2024]| |D|P|Geddes| |JJ|Gray|BSc|FCA| |AS|Jones| |P|S|Kirk|B.Ed,|Cert.Ed.| |AO|Knibb|BA|(Hons),|B|Arch,|ARB,|RIBA| |DrJ E|Mitchell MA|(Cantab),|MBBS,|DRCOG,|DCH|[ceased 23 April| |2024]| |AJ|Morgan|MA|(Oxon),|FCA,|ATII|[resigned|as|Chair|31|August|2024]| |C|G|Musker|Chartered|MCIPD| |||H|Rudland| |TAM|Steele|FCA| |V C|Stuart-Taylor|MA| |W|P|Swinn|BDS,|LDS,|RCS| |Dr|AL Thomas|MA,|PhD|(Cantab),|CBiol,|MRSB| |G|Warrington|[appointed|30|January|2024]| |ORE|Wylie|[appointed|16|January|2025]|

----- End of picture text -----

Officers:

==> picture [476 x 96] intentionally omitted <==

----- Start of picture text -----
||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Senior|School|Head|N|T|Parker MA|(Oxon),|M|Ed| |Prep|School|Head|RM|Smith| |Bursar|and|Company|Secretary|N|J|Slowey|MBA,|ACMA,|BSc(Hons)|[appointed|15|April|2024]| |Clerk|to|the|Governors|D|Hummerstone|MA|(Hons)|PgDL|PgDLP|[appointed|3|January| |2024]| |Bursar,|Company|Secretary|and| |Clerk|to|the|Governors|R V Maher|BA|Econ|(Hons),|ACA|[ceased|14|April|2024]|

----- End of picture text -----

Page 2

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2024

The Governors of King Edward VI School Southampton (hereinafter referred to as “King Edward’s” or “the School”) present their annual report and consolidated financial statements for the year ended 31 August 2024 and confirm that they comply with the requirements of the Charities Act 2011, the Companies Act 2006, the Charities SORP (FRS 102) and the company’s Articles of Association. The annual report includes the directors’ report as required by company law.

King Edward’s was founded on 4 June 1553. Since 1 September 2001, it has operated as a charitable company limited by guarantee and not having any share capital.

In 2012, King Edward’s completed the acquisition of Stroud School Limited. In September 2024, as part ofa unified, 2-18 through-school, Stroud School was renamed to King Edward VI Preparatory School Limited (hereafter referred to as “KES Prep’ or “the Prep School”) and the results of that company have been included in the consolidated financial statements since that date. KES Prep is King Edward's preparatory school. On 1 November 2017 KES Bookings Limited was incorporated with 100% of the share capital owned by King Edward’s. On 5 July 2018, it entered a framework agreement with King Edward’s to hire facilities within the School to third parties. The results of KES Bookings Limited have also been included in the consolidated financial statements since that date.

STRATEGIC REPORT

OVERVIEW

The Governors are confident that the strategy set out below and related detailed objectives are a sound basis to maintain the exceptional educational experience for our students over the long term. Our Schools continue to be in good health not only achieving outstanding academic results but also providing a sector leading range of opportunities for our pupils in sport, the arts and in our co-curricular activities. The Schools are financially robust and we are well placed to take advantage of any opportunities which may benefit our educational aims going forward. However, the Governors are acutely aware of the challenges related to current economic uncertainty and recognise that there is absolutely no cause for complacency. We will continue to place our pupils at the centre of everything we do, so that the young adults who leave us will continue to have the confidence and skill set to flourish in whatever field they choose.

OUR AIMS

The School is a charitable company and operates within its Articles of Association, which include regulations for the appointment of trustees.

The Object for which the company is established is to advance education and training in or near Southampton and elsewhere, including the carrying on of a school or schools or other educational establishments and ancillary or incidental educational and other associated activities for the benefit of the community.

Our primary aim is to educate boys and girls through the running of independent co-educational day school(s). On 2 July 2020, the Board approved a new joint ‘Ethos and Values Statement’ for King Edward’s and KES Prep:

‘We nurture and support our pupils, so that they flourish and exceed their expectations in their learning, interests, relationships and emotional development. Our goal is that they become intellectually curious, resilient, confident and ready for their next steps.’

The Charity aims to fulfil its ethos and values through the actions set out in paragraphs A to F below:

A: Flourishing in achievement

  1. Laying down a foundation of wellbeing, so that every pupil will exceed their own expectations both in and outside the classroom.

  2. Providing a varied, rigorous, balanced and exciting curricular and co-curricular programme to inspire learning and engagement for all. 3. Offering lessons and learning experiences that challenge assumptions, foster creativity and promote independence.

  3. Encouraging all pupils and staff to seek to improve and grow in their learning constantly, in the knowledge that this attitude will see them flourish academically.

Page 3

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

  1. improving and developing resources and facilities to enable exceptional learning experiences.

  2. Achieving excellence in public examinations leading to opportunities in higher education and life beyond school as a consequence of these attitudes and factors.

The Governors, as charity trustees believe that these aims can only be attained if we...

B: Flourish emotionally

  1. Recognise that all progress in education relies upon the good mental health of everyone within our community.

  2. Foster in every pupil a strong sense of self-worth, supported by an outstanding pastoral system.

  3. Nurture our pupils so that they engage positively with their emotions, developing emotional resilience.

  4. Help pupils to understand the spiritual dimension of life, and to be able to make ethical and moral choices.

C: Flourish with engagement

  1. Encourage all pupils to explore their potential in everything they do. 2. Offer opportunities to pupils of all ages to develop their teamwork and leadership skills. 3. Recognise the importance of co-curricular activities as a means of promoting positive engagement. 4. Encourage our pupils to relate to the world and their fellow human beings in a tolerant, compassionate and responsible manner.

D: Flourish in relationships

  1. Put kindness at the very centre of our community. 2. Understand that having healthy relationships with others is key to happiness. 3. Teach our pupils to empathise with each other.

E: Flourish in meaning

  1. Encourage our pupils to look beyond material goals and strive to make a positive difference to the world. 2. Develop in our pupils, and role-model as a whole school, an appreciation of our responsibilities to the school community and to society more widely.

F: Flourish as an organisation

  1. Be an attractive and welcoming workplace environment for all staff members. 2. Make efficient and effective use of available resources to provide a class leading school experience.

We promote the academic, moral and physical development of our students through our pastoral care, academic curriculum, and sporting and ancillary activities. The Charity prioritises welloeing, seeking to ensure that its students flourish, being supported to achieve the highest standards of excellence thereby enabling them to operate effectively in a world marked by rapid change. They are taught to be flexible and adaptable. We prepare our students for the future, focusing on initiative, independence and responsibility, and instilling a desire to contribute to the wider community.

The Governing Body shares the common objective to keep King Edward's at the forefront of education, recognising the need for excellence and opportunity within the context of over 470 years of tradition.

In our Independent Schools Inspectorate (ISI) Educational Quality Inspection report in January 2022, we achieved the highest possible ‘excellent’ rating for both pupil achievement and personal development. Indeed, the inspectors further rated every single element of provision within these two broad categories as excellent. The inspectors concluded that:

Page 4

Docusign Envelope !D: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

The key findings for pupils’ academic and other achievements were:

The key findings for pupils’ personal development were:

The Senior School also underwent a statutory ISI Regulatory Compliance Inspection in January 2022, fully meeting all compliance requirements. There is no qualitative grading, schools being assessed simply as having met, or not met, the standard applicable to each area of compliance.

Copies of both reports are available on the School’s website.

The success in delivering excellent academic achievement at KES Prep, our preparatory school, is made clear in its most recent ISI inspection report in February 2024. This inspection also covered regulatory compliance, against which KES Prep is fully compliant. This inspection concluded that:

  1. “Designated governors engage actively in the life of the school, providing knowledgeable support and appropriate challenge to leaders. Senior leaders have a clear vision for the school. Dedicated focus on this vision, along with ambitious expectations and effective communication, have resulted in high levels of mutual trust between leaders, staff, parents and pupils.”

Further extracts can be found on page 24 below detailing the report's findings.

The Heads of our Schools, Mr Neal Parker and Mrs Rebecca Smith put in place a three-year integrated development plan based on the joint ethos and values statement above which covers the period from September 2023 to August 2026.

In September 2024, we embarked on Project Horizon, which represents the formal unification of our two partnering schools, aimed at creating a cohesive identity and culture, and enhancing our educational offering. This initiative included a comprehensive brand identity overhaul both online and offline, along with significant internal strategic projects, and will drive a unified, 2-18 development plan for 2025-2030.

OUR OBJECTIVES

Our objectives are set to reflect our educational aims and the ethos of the Schools. It is important to us that we maintain and enhance academic success. This objective is, however, set in the context of the broader goals we set for the Charity and its students.

In setting the objectives and planning activities, our Governors have given careful consideration to the Charity Commission's general guidance on public benefit together with its supplementary public benefit guidance on advancing education and on fee charging. The Governors have revisited our objectives and future planned activities with due regard to the September 2013 Charity Commission guidance (PB1, PB2, PB3) in accordance with their responsibilities under the Charities Act 2011. The public benefit narrative within this report is also set out taking account of PB3. The Charity Commission guidance for fee-charging educational charities dated 22 October 2015 is also noted. Our historic and ongoing

Page 5

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486COOCAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

public benefit approach as evidenced in this report is wholly congruent with the increased emphasis, set out in this guidance, on sharing the Schools’ facilities with our state sector partners.

The key objectives for the year included:

The Charity has no bank, or third party loans and remains financially robust, and reserves of at least a term's fees are held in contingency. The Governors are not complacent in this regard and will continue to be mindful of affordability pressures on our parents, specific cost pressures on the sector outside of our control and the importance of continuing investment in facilities and education.

COMPANIES ACT 2006, SECTION 172

The revised UK Corporate Governance Code (‘2018 Code’) published in July 2018 applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 (‘2018 MRR’) require the Board to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 (‘S172’) when performing their duty to promote the success of the Company under $172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company.

The S172 statement below focuses on matters of strategic importance to King Edward VI School, and the level of information disclosed is consistent with the size and the complexity of our business.

General confirmation of the Board of Governors’ (“Board”) duties

King Edward VI School’s Board has a clear framework for determining the matters within its remit and has approved Terms of Reference for the matters delegated to its Committees. Certain financial and strategic thresholds have been determined to identify matters requiring Board consideration and approval. The School policies set out the delegation and approval process across the broader business.

When making decisions, each Governor ensures that he/she acts in the way he/she considers, in good faith, would most likely promote the Schools’ success for the benefit of their stakeholders as a whole, and in doing so has regard (among other matters) to:

S$172(1) (A) “The likely consequences of any decision in the long term”

The Board understands the Schools and the evolving environment in which we operate, based on King Edward’s purpose to deliver an excellent educational environment while keeping pupil safety and social responsibility fundamental to our approach. In 2023, to help achieve our strategic ambitions, the Board approved a refreshed development strategy for the period to August 2026. However, while investing for the future, the Board also recognises that we must meet today's changing demands. The Board recognises the complexity of the current

Page 6

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486COO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON

REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

environment and has taken the decisions believed best to promote our pupils’ educational objectives. Our longterm objective remains to deliver on the aims of the Charity for the benefit of our parents, pupils and our wider community.

S172(1) (B) “The interests of the company’s employees”

The Board recognises that our employees are fundamental to our Schools and to the delivery of our strategic ambitions. The success of our Schools depends on attracting, retaining and motivating the best employees. The Board factors in the implications of decisions on employees at all times, ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment.

$172(1) (C) “The need to foster the company’s business relationships with suppliers, parents and others”.

Delivering our strategy requires strong mutually beneficial relationships with suppliers, parents and business partners. The Board requires the promotion and application of the general principles of transparency and integrity in all such relationships.

$172(1) (D} “The impact of the company’s operations on the community and the environment”

This aspect is inherent in our strategic ambitions, which include the delivery of our public benefit as one of our fundamental objectives. Also, as outlined in our development plan, the changing world continues to drive demand for environmentally friendly and sustainable practices. We recognise the need to tackle climate change and there is an active sustainability programme underway to reduce the Schools’ net carbon emissions.

$172(1) (E) “The desirability of the company maintaining a reputation for high standards of business conduct’.

The Board, in accordance with best practice in Governance, periodically reviews and approves our operating practices to ensure that its high standards are maintained both within our Schools and in the third-party business relationships we maintain.

S172(1) (F) “The need to act fairly between members of the company”.

The Board recognises that in an educational environment there are a significant number of stakeholders whose interests may not always be directly aligned. The Board strongly believes that our Schools will only succeed by working closely at all times with our pupils, parents, employees, volunteers, business partners and other stakeholders.

Culture

The Board recognises that it has an important role in ensuring that our desired culture is embedded in the values, attitudes and behaviours that we demonstrate, including in our stakeholder relationships. The Board has established honesty, integrity and respect for people in our Schools’ core values.

The Board considers that our triennial People Survey is one of our principal tools to measure the engagement, motivation, affiliation and commitment of the key stakeholders in our Schools. It provides insights into the views of our parents, pupils and staff and has a consistently high response rate. The Board utilises the results of this engagement to embed the positives and implement identified improvements for future years.

REVIEW OF ACTIVITIES AND ACHIEVEMENTS

Student numbers and fees

Our educational activities are carried out through our Senior and Preparatory co-educational day Schools; the former is located in Southampton and the latter near Romsey.

Page 7

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

King Edward’s

The School roll for 2023/2024 averaged 987 (987) students. The Governing Body is aware of the financial challenge facing many of our parents through the continued economic uncertainty. The consistently outstanding performance of both students and staff continues to make this the School of choice for students living within commuting distance.

This year has again seen outstanding results and new initiatives and consequently our pupil numbers remain high.

Our fees per term before means-tested and non-means-tested deductions such as bursaries and scholarships were £6,665 (£6,215),

As we are mindful of the ongoing imperative to maintain excellent school facilities, our significant capital expenditure over the last decade has been above the average for the independent day schoo! sector. As trustees of an educational charity, the Governors seek to charge fees at the minimum level required to sustain the exceptional quality of education provided within a sound financial framework with appropriate investment and reserves.

KES Prep

The School roll for 2023/2024 averaged 277 (294) as we implemented a smooth transition to phase out Years 7 and 8 from September 2023. The students’ outstanding achievements in many areas of school life continue to enhance the School's reputation for excellence. The termly fees in 2023/2024 were £6,525 (Years 4-6), £4,980 (Year 3), and £4,285 (Pre-Prep), with the prior year being £6,345 (Year 6), £5,980 (Year 5), £5,825 (Middle School), and £4,060 (Pre-Prep).

The acquisition of KES Prep represented a major strategic change for King Edward's as the School expanded its reach to include children from the early years. The benefits delivered in combining with our main feeder school have increased efficiencies, allowing greater investment together with shared knowledge. A number of cross-school initiatives have beena significant benefit to students in both Schools. There is a natural synergy, and the Governors are delighted that this unified approach to the ethos and learning is now fully embedded from nursery to the upper sixth.

Review of the past year

Our commitment to academic excellence remains unwavering and this year’s results reflect the hard work and dedication of our pupils as well as the wonderful support offered by our staff. More generally, the wider co-curricular programme continues to be a cornerstone of our holistic education approach, and one area of focus has been around the opportunities for personal development through our outdoor learning programme.

At King Edward's, the process of improvement to our facilities has continued, with extensive investment into our sport and co-curricular facilities including a state-of-the-art new astroturf at Hill Lane. We converted our Commemoration Room into a multi-faith chapel and created a '1553' meeting room where pupils and parents can enjoy many of our interesting artefacts from our archives. We continue to invest heavily in our ‘green’ credentials with LED lighting installed in all our classrooms and solar panels contributing to a measured ongoing decrease in our carbon footprint. Whilst we are keenly aware of the external pressures being brought to bear on our School and sector, we are absolutely committed to maintain the highest levels of education and opportunity for our pupils — and for generations of children to come.

The Governors and Senior Leadership Teams have spent significant time considering the implications of the imposition of VAT on school fees with effect from 1 January 2025. Our planning has enabled us to respond positively to the change, providing early reassurance to parents that the overall fee increase in January will be significantly lower than the 20% rate of VAT. We hope that the actions we will take will enable us to maintain our roll at both schools at broadly the current level, to minimise disruption to our services over the next three years. Concurrently, we will be working hard to maximise the efficiency of our operations, saving costs wherever we can do so without impacting on the quality of our pupils' experience, and generating as much revenue as we can from our facilities, particularly during school vacations. This is undoubtedly a significant financial challenge for us but one which we are confident we will manage successfully.

Page 8

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

One of the key areas which will inevitably come under pressure in the new environment will be the provision of bursary support to deserving and able pupils who cannot afford our fees. As we have typically had more capable applicants than funds available, the Governors decided last year to invest in our Development Office with the immediate aim to generate more bursary funds. Our Development Office has already generated significant contributions to our development fund, the King Edward VI Foundation and we hope to build this resource further over time.

We have continued to see some change in our Governing body, with a desire to ensure we have a broad range of exceptional experience and knowledge, with an increasing requirement that the Board has a much greater focus on the longer-term strategic vision for our schools and we are well placed to do this, supported by continued investment in strategic away days and training for the Governing body. September 2024 will see Mr Morgan step down as Chair of Governors after 7 successful years, and hand the reins over to Mr Davies; he is another Chartered Accountant, an alumnus of King Edward’s and has a long and distinguished career as a senior audit partner. At the end of the 2023/2024 we bid farewell to our Bursar of 17 years, Mr Maher. He leaves us in robust financial health, and well placed to weather the challenging years ahead. We are indebted to him and wish him a happy and healthy retirement.

2023/2024 has seen much progress towards the acceleration of integration between our senior and prep schools, this now includes the transition of pupils from our prep to senior school based on a Head’s recommendation, which will remove the requirement for most of our KES Prep pupils to have to pass the King Edward's entrance exam in order to gain entry to the Senior school. In September 2023, we extended our Nursery offering to offer 51-week places to support our parents, and there are exciting plans to develop the school’s curriculum to make it more relevant to the growing demands on our pupils. With this new structure now in place, and the work being undertaken with Project Horizon, the prospects for the KES Prep school are very promising indeed. From September 2024 we welcomed 2-year-olds into our nursery for the first time.

Educational facilities

During this summer our facilities team has continued to be exceptionally busy. We have improved the south facing classroom environment through a number of improvements including new sash windows, crossflow ventilation strategies, LED lighting and natural air movement. We have refurbished the second-floor offices to improve the working environment for a number of staff. This is despite the environment for the procurement of building materials continuing to be exceptionally challenging.

The schools have an ongoing commitment to ensure that the facilities match the aspirations of our students across all of our sites. Further details can be found in this report under “OUR OBJECTIVES’ and “FUTURE PLANS’.

Details of bursary and scholarship awards — policy into practice

Bursaries and Studentships

This year the value of means-tested bursaries and studentships awarded by King Edward’s totalled £931,861 (£959,880) representing 4.9% (5.3%) of the School’s gross fees. In total, 7.8% (8.6%) of the students received means-tested support. This represents 77 (81) of the students of which 24 (27) benefitted from a full remission of fees, with the average award being 60.5% (63.6%).

Means-tested Studentships offer Sixth Form Students limited support with fees (around 20%) for the duration of their A Level course. The value of these awards is included within the Bursaries and Studentships figures above.

An external trust accepts applications from us where appropriate to help students in receipt of bursaries to meet the cost of school trips, examination entrance fees and similar expenses as well as assisting cases of hardship. For the academic year 2023/2024 we received the sum of £26,203 (£22,648).

The desire to support a greater number of bursaries so that able pupils can attend our schools regardless of their means, remains a key objective of the Governors. The King Edward VI Foundation has continued to grow, as old Edwardians of a variety of vintages have made donations or left legacies, and this will be an area of increased focus in the years to come through out Development Office.

Page 9

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Scholarships

In addition, King Edward’s awarded scholarships and music awards to 153 (143) students, based on their educational merit and potential, totalling £141,710 (£132,604) and representing 0.7% (0.7%) of our gross fees.

Scholarships are separated into three areas: Sixth Form, Upper and Lower School years. Awards are made by the Academic Board and relevant Faculty Heads based on assessments made at the start of these three periods. The progress of students receiving scholarships is reviewed to ensure it remains in line with their abilities.

Policy review

The Governors seek to ensure that the bursary, studentship and scholarship awards policies maximise opportunities for able children to accept offers of places at King Edward’s through the availability of means-tested fee assistance. Our policy is designed to widen access and direct resources to those in genuine need who would be unable to attend without assistance. These policies are regularly reviewed in the light of new developments to help to ensure that the objective of maintaining the current wide access continues to be achieved in the short term, and that there are increased access opportunities and means-tested assistance over the long term.

The majority of non-means-tested King Edward’s scholarship awards made in the current year were from restricted funds donated to the School specifically for that purpose. The external funding directed at ability rather than means, although small, is important in encouraging our students to excel in addition to creating links with local employers. The Partridge BMW Engineering Award and Peter Cooper Creativity awards are two examples.

Advancing learning — including the local Partnerships programme

One of the aims and objectives of King Edward’s is that we support our pupils to flourish in meaning, that we encourage our pupils to look beyond material goals and strive to make a positive difference to the world. We develop in our pupils, and role-model as a whole school, an appreciation of our responsibilities to the school community and to society more widely.

We strive towards these aims in much of what we do and see ourselves absolutely as a school embedded in the local community. This is central to our purpose and reflects our past as a state funded grammar school. We foster a number of links with local primary schools, preparatory schools, secondary schools, sports clubs and charities.

The School continues to make a significant contribution to the wider community and complies with the Charity Commission public benefit guidance including its latest update in June 2023.

Overall, the resources invested in this area, identified by the value of time and support costs, are considerable. The vast majority of the work done by our pupils and staff is voluntary and, as a result, it is hard to audit with precision. The feedback from partners is regularly monitored and is highly positive although there is no formal impact assessment. The observation of the work at first hand, together with the feedback from our partners, leaves us in no doubt as to the extensive mutual benefits to all involved. We know that our partners return for further programmes and that our pupils volunteer year on year, thus strengthening our belief in its value. The establishment of a system to quantify and highlight the extensive voluntary contribution has been considered but, at present, it is not felt that this would merit the considerable additional work required to achieve a meaningful assessment. It also runs the risk of discouraging staff and pupils with potentially adverse consequences for so much of the community work in which they so willingly participate.

Partnerships Programme at King Edward's

Our thriving Partnerships’ Programme seeks to widen access to our education resources bringing independent and state school communities together but more significantly recognises the mutual benefit gained through partnership. This includes the pupils from both sectors working together in each other’s schools. The programme has worked significantly since the pandemic to reach previous levels of offerings across a range of workshops and events whenever possible. The programme included a new initiative in the Summer Term of a year 10 Partnerships Day where a whole year group were able to develop mentoring, teaching, learning and leadership skills with the help of primary partnerships in areas of debate, music, sport and science. The Partnerships’ Coordinator merged the role with Prep liaison in September 2023 to better lead the schoo! across all partnership work and offerings. The School wishes to sustain the current extensive programme but recognises that such provision is in effect a

Page 10

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON

REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

cross-subsidy and that, for a number of our parents on limited incomes: this is something that must be considered when setting fees.

The directly attributable financial costs of the programme in the year 2023/2024 amounted to £5,599 (£597), excluding senior management and voluntary staff time, as there are salary rewards and non-teaching time allocations for those with responsibility for the programmes.

The King Edward’s Partnerships programme has continued to evolve and adapt to support the increasing challenges faced by local primary and secondary schools. During the 2023/2024 academic year, our collaborations have placed a special emphasis on STEM, the arts, music, and languages. King Edward’s pupils have taken the lead in these sessions, honing their communication, mentoring, and organisational skills. Visiting partnership pupils have greatly benefited from the state-of-the-art facilities and equipment available at King Edwara’s, including the Dobson Theatre and Wellington Sports Ground. More importantly, the programme has fostered a collaborative and mutually beneficial environment.

We are proud to have become a School Partnerships Alliance Member, joining the School Partnerships Alliance community in 2023. In 2024, we launched our inaugural Partnerships Day. This event celebrated the best of partnership cooperation, with all King Edward's pupils from an academic year group engaging in mentoring, leadership, support, and teaching activities alongside our primary pupil partners. This replaced a smaller venture from our previous Endeavour programme. Partnerships Day was able to offer a whole year group the opportunities collaboration affords and differentiated responsibilities for mentoring and leadership were facilitated with King Edward's hosting the day and recording the days feedback through interviews to better understand the direct impact it had on visitors, pupils and staff.

Partnership Schools 2023/2024:

Primary Schools:

Other Schools:

Regular events

Docusign Envelope ID: 1B915308-1082-4 116-9F45-DC8486COOCAE KING EDWARD VI SCHOOL SOUTHAMPTON

REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

==> picture [480 x 151] intentionally omitted <==

----- Start of picture text -----
School students Edward’s students
ego
Little Libraries Scheme 4 Schools took part in the ‘Little)Whole school event during World Book
Libraries Scheme’. Cabinets andiWeek (students decorated the library
lbooks donated to year 5 and 6 pupils|cabinets).
lacross 4_ partnership — schools,
mpacting approximately 720 pupils.
Moth 88 88
----- End of picture text -----

Page 12

Docusign Envelope ID: 1B915308-1082-4116-9F45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Creative Arts

In 2023/2024 the Creative Arts Faculty provided a full programme of concerts and events. The Romsey Abbey Carol Service held in December was once again held live and to a full congregation. Participants included a community choir comprised of parents and friends of King Edward's supporting the Senior Choir. The school productions of Chicago and ‘Dodger’ were shown to both Partnership schools and to KES Prep and other Prep School visitors. The Peter Folks Art Exhibition is now in its sixth year and over 100 artworks were showcased on a dedicated evening hosted by the Art Department. The Art department also supported our partnerships with numerous local schools through workshops and art-based activities.

King Edward’s Charities Commission and Charity Projects

Charities at King Edward's remains a heavily integrated part of school life and this year we were lucky enough to be recognised for our work by the Goldsmith association as national finalists in their community engagement award. Pupils were given the opportunity alongside 7 other schools selected from over 120 applicants, to present on our charitable endeavours at Goldsmiths Hall in London. To have reached the final of this competition is testament to how our community engagement has impacted so many, and our pupils gave heartfelt and proud feedback on the charitable work that they had been a part of.

The staff team involved in charitable work during 2023/2024 has consisted of 4 members of staff receiving remuneration for their parts in the organisation of events and trips, which totals £9,896 (£9,856) cost to the School.

The number of pupils involved in fundraising around the school remains steady. The last two years have seen an increased number of Lower School pupils attending on a regular basis as well as the usual large numbers from the Upper School, with the Sixth Form making up most of this group.

All pupils are able to nominate a charity they wish the School to support.

The September non-uniform day and cookie sale was held in aid of the British Red Cross. The charity was selected to help raise funds for natural disasters occurring at the time around the world. We donated £400.

The annual year 7 Toy Appeal Fun Run was a huge success. The pupils created fantastic and creative toy-inspired costumes and raised vital funds for Southampton City and Region Action to Combat Hardship (SCRATCh), a charity that provides services which relieve the effects of hardship, disadvantage and poverty for individuals and families living in Southampton and the surrounding area. £2,500 was donated.

We held a cookie sale and non-uniform day in aid of Children in Need during the Autumn Term and raised £400. The Charity was selected by the commission and is a popular choice amongst pupils.

During November we raised fund for the Royal British Legion, through the sale of poppies and remembrance related items. Thanks was given by them for the £369 raised.

To raise awareness of men’s mental health a portion of sixth form and staff member sported some very fetching moustaches, with the great shave being the pinnacle of the event. This raised nearly £1,000 given directly through Movember. The money was donated directly via QR code throughout the activities. In addition, £100 was donated by the School.

The pupils voted to support Hampshire and Isle of Wight Air Ambulance through the retiring collection at the Christmas Carol service. They also sold advent calendars and candy canes during the festive period to raise £2,000 for this cause.

During the Spring Term 2024 the Commission raised funds to support Second Chance Animal Rescue. Based in Southampton, they are a small rescue charity that deals with dogs, cats, small animals, and wildlife. We donated £500.

During the Spring Term, Wessex Heartbeat was supported with £2,000 through Valentines’ sales of love hearts, either to eat or send to a friend. Wessex Heartbeat is a local charity established in 1992 that help babies, children and adults diagnosed with congenital and cardiovascular diseases primarily by supporting the work of the Wessex Cardiac Unit based at Southampton General Hospital.

Page 13

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

The Summer Term saw a focus on supporting the Ruth Strauss Foundation. Sir Andrew Strauss launched the foundation to provide emotional support for families to prepare for the death of a parent and raise awareness of the need for more research and collaboration in the fight against non-smoking lung cancers. The students sold strawberries and cream during a cricket-filled Saturday, hosted a dedicated parent raffle and ran a tuck shop and non-uniform day, and £2,000 was donated in total.

During sports day a tuck shop and pop-up champagne stall helped to raise funds in aid of the Mintridge Foundation. £260 was raised for this cause. The Foundation’s mission is to inspire young people through the power of sports, aiming to enhance their health, well-being, life skills, and aspirations.

The commission has also hosted several collections this year:

For the shoe collection, this year it was decided to support a UK-based charity called Shoe Aid, a charity based in the UK sourcing and supplying free footwear through a collection and distribution network, STEPPING UP to footwear poverty so no child or adult need go without shoes. Over 100 pairs of shoes were collected and donated.

Period poverty was supported in conjunction with FEMSoc (the Senior School Feminist Society), the community donated over 100 feminine hygiene product that were distributed to local food banks. In addition, a toiletries collection was made to support the local homeless charity; products were distributed in Bournemouth and were gratefully received by all.

Charities supported the sustainability group in the slow fashion sales and a donation of £250 was made to the charity No Sweat (fighting Sweatshop Labour).

Our total donations this year include £2,500 raised outside of the routine Commission work, fundraising activities for Cardiac Risk in the Young (CRY).

There are three, concurrent charitable projects running in the Sixth Form, with a selected team and member of staff helping to organise these. The partnership with Kings Copse Primary School has grown its commitment in 2023/2024, building on the initial set-up the previous year. This is reflected in an increase in activities to better match PDSA and Summer Camp pupil commitment. Details of these 3 projects is as follows:

Portsmouth Down Syndrome Association (PDSA):

PDSA provides a range of some of the best specialist services in the UK supporting development and education. It offers training to assist families and professionals in providing effective support from the point of diagnosis, helping to teach children the skills they need to reach their developmental milestones, succeed at school, and become valued and productive members of their communities. Our aim is for the PDSA teen group and our King Edward’s pupils to develop and build a friendship over the course of the year. Pupils undergo training on ‘how to be a friend to someone with Down Syndrome’, given by the PDSA. The selected group of Sixth Formers meet with the group through the year. During the summer holidays we held our PDSA Summer Week with 4 days of activities for the King Edward’s pupils and their PDSA friends. King Edward's pupils raised money throughout the year to pay for all of the activities, which were: Day 1 at school with icebreaker activities, art and sport; day 2 at Marwell Zoo; day 3 at Paultons Park; and day 4 a games and picnic day at school.

Summer Camp:

A team of Sixth Formers organise and run a holiday camp for four days in the school holidays in the New Forest, Hampshire, for children (aged 8-11 years old) from the Southampton Young Carers Initiative. These children have additional responsibilities at home, and we cherish the opportunity to give them a trip away. The Summer Camp is well established and runs every year, giving each young carer a sixth form ‘buddy’ and a chance to enjoy structured activities with children in similar situations. There is no cost to any of the young carers involved as our Pupils raise the money themselves. The Sixth Form team initiate and support fundraising within School and, in addition, they independently raise £100. The team is made of a select group of Sixth Formers who attend the camp, looking after all aspects of the children’s care, with the support of King Edward’s staff.

This year’s Summer Camp was based at Avon Tyrrell in Christchurch. The group of Sixth Form were incredible as they ensured the camp was enjoyable and memorable for the young carers. Day one was a relaxed day; setting up eeSe Page 14

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

camp and playing games, with a chance to practice their talent show routine before a camp dinner and watching the Euros. Day two they had fun at Long Down Activity Farm, feeding goats, holding chicks, and playing in the park. The day ended with a BBQ followed by the highly entertaining camp talent show which both the KES pupils and young carers took part in. Day three the Sixth Form took the Young Carers to Paultons Park, and they finished the day with fish and chips at Highcliffe beach and a game of beach cricket. The final day was an emotional day as the Sixth Form packed up camp and spent their last morning at Moors Valley, enjoying the play trail and a picnic lunch. Feedback from young carers on the camps conclusions was overwhelmingly positive. Opportunities for leadership and mentoring were taken with enthusiasm and gratitude,

Kings Copse Primary School Partnership Project:

The project recruits a Sixth Form team of pupils who raise money and run activity days with children from Kings Copse Primary School for the visually impaired. The Sixth Form team initiate and support fundraising within School and in addition they are expected to raise £100 through personal endeavour. Continuing to work with visually impaired pupils from Kings Copse Primary School has seen the partnership (started in 2022) grow and bonds between pupils across the school develop. King Edward’s pupils organised a variety of days out, being hugely rewarding for the children from Kings Copse and our sixth form pupils as the experiences provided the perfect platform to experiences that were designed to better understand the world from a visually impaired perspective. Summer activity days have also formed an important part of this partnership, newly introduced this academic year. The experience gained by the Sixth Form in supporting and working with visual impairment was invaluable. Feedback through the assembly programme and from teachers at Kings Copse Primary School attest to its success. We donated £1,000 to this project.

Charitable Donations:

Other smaller fundraising events took place throughout the year with donations made to the following charities:

TOTAL: £15,429

War Zone Child Refugee

The Governors and staff at KES Prep and King Edward's recognise the immense suffering of young people forced to flee from active war Zones (or similar tumultuous disasters) and recognised as refugees by the UK Government.

In accordance with our aims and objectives, in which we ‘develop in our pupils, and role-model as a whole school, an appreciation of our responsibilities to the school community and to society more widely’, we sought to provide opportunities where possible and sustainable for displaced refugee children to receive an education at our Schools.

Places offered at our Schools under the War Zone Child Refugee policy would be regarded not as bursary pupils, but rather as ‘sponsored’ children receiving a free temporary education at the School. King Edward’s Senior currently has 6 pupils and KES Prep has 3 pupils attending under this policy heading. In addition to their learning needs, uniform and equipment needs have been provided where possible.

Other community outreach:

Teacher Training and Continuing Professional Development (CPD):

Page 15

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Community Service:

Pupils also take part in practical voluntary service in the jocal community and elsewhere. Through these opportunities to serve others our pupils also gain educationally through a meaningful interaction with those outside our school community.

The items above give a flavour of the variety and extent of the public benefit delivered through the important interaction of our pupils with the wider world and our local community. Encouraging our pupils to understand different perspectives and cultures whilst assisting the learning and development of others is integral to our ethos.

King Edward’s Staff

In addition to direct involvement in charity work by students, several staff at King Edward’s are also involved with the local community and charities. Although this work is entirely voluntary and outside of their job roles, the school seeks to support such commitments as they reinforce our ethos and links into the community. These included:

Page 16

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Facilities Usage

All the third parties listed below have benefited from the use of our facilities during 2023/2024 at no charge or at non-commercial community rates.

Minibuses at KES Prep (no charge)

e The Scouts Association

Dobson Theatre: Hill Lane

e Life Church e Stagecoach

Page 17

Docusign Envelope ID: 1B8915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Wellington

Co-curricular Activities at KES Prep

KES Prep’s collaboration with state schools include the following:

KES Prep charities receiving donations in the year include:

KES Prep Community Links

The following community links were active in the year:

KES Prep Staff

In addition to direct involvement in charity work by students, several KES Prep staff are also involved with the local community and charities. Although this work is entirely voluntary and outside of their job roles, the School seeks to support such commitments as they reinforce our ethos and links into the community. Details are below. e Mrs Brown volunteers for Romsey Young Carers and Michelmersh Silver Band and at the Romsey Show. nnnage 18.

age 18.

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Environmental Initiatives: Cutting our ‘carbon footprint’

We are measuring our energy consumption as equivalent to production of an amount of carbon dioxide (‘CO2e’), in kilogrammes. Monitoring, under the government's new streamlined energy and carbon reporting regime (‘SECR’) has estimated energy consumption to be in excess of 520kg CO2e per pupil. In the past year we have undertaken various environmental initiatives to reduce this level of consumption, as detailed below.

The Group have registered with the Government Energy Savings Opportunity Scheme and we are looking to finalise our report by February 2025.

One hundred percent of the school’s electricity is from green sources with the school’s energy provision provided by Shell Energy. The next step is to reduce gas consumption. Further research is to take place into heat pump technology and Biomass. We are producing approximately 25% of our daytime requirements at the senior school through our Photovoltaic (PV) Panels on the school roofs.

We aim to instil the habit of recycling among our staff and student body. Green bins are provided in every classroom for paper. Our local waste management company combines all of the general waste, and it is incinerated for energy. We are reviewing how our recycling is managed within the wider school community.

We have moved primarily to recycled paper (except publications which may be involved in marketing and where images need specialist paper for better resolution).

Food waste remainsa significant issue. We have introduced a measurement and waste methodology in the kitchens to minimise preparation waste. We are investigating dehydration and Anaerobic Digestion units to manage our food waste.

Travel remains an important area to minimise our carbon footprint and over three quarters of our Senior School students use the KETA bus system and additional bus routes have been provided at KES Prep. A strategic review of our transport system has resulted in a commitment from our contractors to lower emissions and over 90% of bus and coach pupil transport is Euro 6 compliant, with a consequent reduction in our carbon footprint. We continue to use solar voltaic cells on the Steward’s house at Wellington Sports Ground.

Within the school community, the Sustainability Action Group is working hard to change mindsets and empower students to become involved in sustainable thinking. Themes each half term are enabling students to explore different important issues. From slow fashion, food and travel to electric vehicles, biodiversity and air quality, students are also coming up with initiatives and actions to reduce their carbon footprint and energy consumption.

Page 19

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Alumni events

The School continues to develop an engaged and supportive community of Old Edwardians (OEs). In the 2023/2024 academic year, we held five events for OEs: a 10-year reunion, a 25-year reunion, London Drinks, a dinner for our Capon Club members, and the Poole Veterans lunch. These five events were attended by 182 OEs in total, and each one was a good opportunity for them to reconnect with the School. In addition, a number of OEs volunteered throughout the year, giving their time and expertise to help current pupils through careers talks and panel discussions. We continue to publish ‘The Edwardian’, our alumni magazine, twice a year. The magazine is an opportunity for the School to update our alumni on news, but also for OEs to share their updates with the wider alumni community. Finally, the School invested in a sector leading alumni engagement platform, and the KES Alumni Hub will launch in Autumn 2024, creating a digital space for OEs to engage with the School.

Fundraising and development

The Governors regard this as a key objective in our 2023 — 2026 strategic plan. The 2023-2024 academic year therefore saw an expansion in our focus on fundraising activities. In October 2023 our first Director of Development, Richard Wilson, arrived at the School and has been focused on developing a long term Development strategy. The principle aim of this is to increase funding for bursaries for local pupils who would not be able to afford the School's fees. We continue to be motivated by our founder William Capon’s original intention to create educational opportunities for lower-income families in Southampton.

In January, the School made a great first step towards this, securing a £500,000 pledge from the Avent family towards bursaries. This gift will fund three full bursaries over the next decade. We would like to express our sincere thanks to the family for this transformational gift. In total, the School received £563,004 in new funds committed (gifts pledged) and £222,752 in actual donations received.

FUTURE PLANS

The Governors intend to continue their current strategy of maintaining the Schools’ position in a competitive market by investing, as required, to provide high-quality education for our students. Achieving a high standard of academic results is a constant aim whilst maintaining the breadth and depth of the education provided with a clear focus on wellbeing.

The King Edward’s triennial survey of students, parents and staff by an external specialist took place in the Spring Term 2022. KES Prep also conducts the same triennial surveys on a rolling annual programme. The results of both have been incorporated into our next phase of strategic planning, Project Horizon.

The Governors have taken the opportunity to review and revise the pace of future capital expenditure plans in the light of sector challenges. Potential capital expenditure for the academic year 2024/25 which is currently under discussion includes:

Our future plans are financed predominantly from fee income and from our reserves. The Governors need to maintain an equitable balance ensuring that our current students benefit whilst, at the same time, ensuring that a sound infrastructure and financial base are preserved for the next generation of students in the same way as our current students benefit today from the investment made in the past.

The current economic climate has had an impact on many preparatory schools and the Governors keep a watching brief on the threats and opportunities this poses. A healthy intake of students over the long term remains an important factor underpinning the Schools’ development plans to maintain the high quality of educational provision. From September 2021, students at the Senior School who havea sibling that attends the Prep School have been eligible for a sibling discount on their fees.

King Edward’s has continued to develop links internationally as well as in Southampton through the development of partnerships with UK and overseas schools, charitable activity in the UK and abroad, fundraising, community work and support for local projects.

Page 20

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

The Governors view our bursary and scholarship awards as important in both promoting excellence and widening access to the education our Schools provide. The Governors regularly review our bursary and scholarship awards policies to ensure that able children can accept offers of places at both Schools through the availability of meanstested fee assistance. This includes reviewing earning thresholds applied to our bursary awards in the light of ongoing Charity Commission guidance. We will continue to review our current policies and procedures to ensure they are sustainable, well designed and effective to target the limited resources where they are most needed.

The Governors intend to continue investing in the success of the Partnerships programme by maintaining our strong links and exchanges with the state sector. in developing our plans as we move forward, we will work closely with the Heads of the schools with whom we partner ensuring that a positive contribution to our shared educational aims continues. This takes up a considerable number of staff and student time but has always been a core part of our ethos. The self-evaluation process under the ISI inspection arrangements continues to be regularly updated. Our students are known for their intellectual talents, being nurtured and encouraged through exceptional pastoral care. Our Schools maintain their friendly and welcoming character. The involvement of Edwardians and students from KES Prep in the wider community as well as in sport, culture and charity work gives our students a strong social conscience. They are very keen to support the wider community, and the quality of the education they receive from age 3 to 18 is clearly reflected in the most recent qualitative ISI reports for both Schools which are available on our website. The implementation of the Charity’s strategic planning processes, coupled with the consistent high performance of our students, underpins our reputation as one of the UK’s leading educational establishments.

OUR FINANCES

A healthy consolidated operating surplus has been achieved this year, thanks to higher than forecast pupil numbers at King Edward's, despite inflationary pressures on salaries, utilities, fuel and food costs. KES Prep’s loss is improved from last year, as 2022/2023 includes the one-off redundancy payments made to staff following the decision to end the duplication of years 7 and 8 in August 2023, Pupil numbers have not been as high as hoped at KES Prep, however it is anticipated that the Head’s Recommendation will help to improve this position going forward. Since King Edward’s acquired KES Prep in 2012, c. £1.4m has been gift aided to be reinvested in educational facilities. KES Prep continues to feed pupils each year to the Senior School, and the total current number of senior school pupils from KES Prep exceeds 180. This throughflow is an essential part of the Senior School's financial sustainability and educational success.

Our investments are held with Evelyn Partners (previously called Smith and Williamson Investment Management LLP), having been appointed two years ago following a three-stage tender process. The details are reported under ‘Investment Policy’ below. In addition to managing our restricted cash, an overdraft facility was agreed at a preagreed highly competitive interest rate as part of this arrangement. This allows cash balances in excess of working capital to be invested to improve returns whilst maintaining quick access to funds if and when needed.

The Governors continue to be proactive in monitoring the implementation of our longer-term strategic aims, regularly reviewing the finances, budgets, expenditure variances and cash flow as part of the effective stewardship of the Schools. Our long-term strategic approach to decision making together with the financial policies outlined in this report are necessary elements in the consistent delivery of our educational aims. Our schools continue to be financially robust, and we are very well placed to address the new challenges which will surely come our way in the years ahead. We will continue to manage our resources carefully, placing our pupils in the centre of everything we do, and we will always strive to deliver excellence in the broad educational experience which we deliver.

Several upcoming tax changes will significantly impact our financial outlook. From January 2025, we face the introduction of VAT on fees, increased employer's National Insurance contributions, and a lower NI threshold as announced in the October 2024 budget. Additionally, the phasing out of business rates relief will affect our historically strong financial position over the next two to three years.

Our strategy to partially absorb the VAT costs will create a heavier financial burden in the initial two years, before we complete our planned fee adjustments by 2027/28. While the combined effect of these three tax changes is substantial, we have undertaken extensive financial planning to address these challenges. We are confident in our

Page 21

Docusign Envelope !D: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

ability to support parents through this transition period, ensuring that these tax changes neither compromise the quality of education we provide nor unduly burden our school community.

Reserves policy and financial health

The unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Governors and are held at a level considered appropriate to cover the risks and uncertainties of operating as an independent educational establishment. Designated funds are set aside by the Governors out of unrestricted general funds and the transfers into capital reserves relate to our plans to continue to develop all our sites to a consistently high standard and to maintain our exceptional shared sports ground facilities. Our available cash reserve meets our strategic targets which are currently being increased as a result of the economic pressures anticipated within our sector. The Schools have no external borrowing, and the Governors believe that the Schools are financially resilient. We built our investments during the year, to augment these to a term's fees, to help protect against future financial uncertainties during harder economic times and against the headwinds facing the independent sector as a whole.

Investment policy and performance

The Board has assigned responsibility for the management of the investments to the Finance sub-committee, which has delegated that role to Evelyn Partners. The investments are managed on a discretionary basis but within the confines of an agreed investment policy.

The primary purpose of our investment policy is to generate monies to meet bursaries and scholarship/prize awards. In addition, the school seeks to protect the real long-term value of the investments against inflation. The long-term total return objective is CPI +3%, net of costs, implying a medium level of risk.

The assets can be invested widely including equities, bonds and property both in the UK and overseas. Evelyn Partners are committed to investing our funds responsibly and are a signatory to the United Nations Principles for Responsible Investment. Our investment manager is specifically excluded from direct investment in companies that generate more than 5% of revenue in gambling, tobacco and adult media.

At the year-end, approximately 67.5% (57.5%) of our funds are invested in UK and overseas equities through a combination of global leading companies and collective investments. The remainder is invested in a combination of short dated fixed interest securities, commercial property, infrastructure, gold and 3.9% (16.3%) was held in cash and other instruments. There was significantly more cash held on 31 August 2024 owing to fees in advance payments, which had not yet been invested into equities and the like. The year to 31 August 2024 saw a return of 12.3% (1.9%), compared to the benchmark return of 15.5% (2.1%).

Asset cover for funds

Note 20 to the accounts sets out an analysis of the assets attributable to the various funds. These assets are sufficient to meet the Schools’ obligations on a fund-by-fund basis. The Schools’ tangible fixed assets are all held for use by the Schools. Investments (including Endowed Assets) are held to create income and capital growth pending utilisation.

Pension liability

Details of our staff pension schemes are shown in Note 25. Since January 2024, teaching staff in both our Schools are no longer eligible to join the Teachers' Pension Scheme (TPS), an unfunded multi-employer defined benefits scheme governed by the Teachers’ Pension Scheme Regulations 2014. Instead, they are enrolled into the APTIS pension scheme. The TPS employer contribution rose in April 2024 to 28.68%, which had been 23.68% since September 2019. The increase in these contributions has been borne by staff themselves, through a deduction in salary, which was agreed through a consultation process in 2022/2023. Part of the outcome of this consultation was that teaching staff now also have the option to join the APTIS pension scheme, in which they have more flexibility in contributions, and in which Employer contribution rates are set at an equivalent level to the TPS, prior to April 2024. This is considered further in the ‘Risks and risk management’ section below.

Some Senior School professional services staff are in a defined benefits scheme which remains within the Hampshire Pension Fund Scheme having been de-grouped on 1 April 2017 in line with national trends on such local authority schemes. The Senior School has been graded as in the lowest risk category and our annual contributions are therefore expected to be lower than other de-grouped admitted organisations. An actuarial valuation was carried

Page 22

Docusign Envelope ID: 18915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

out on 31 March 2022 and the results were reported at the Hampshire Pension Fund AGM in October 2022. See Note 25 in the financial statements.

OUR ETHOS, STRATEGY AND POLICIES

Our Board is responsible for setting a strategy for achieving the objectives which our Governors have set. Its focus is on the development of our students, their continued high levels of academic and co-curricular achievement, and on widening further the extensive access to the education our Schools provide. In taking forward our strategy we:

Our ethos: caring schools serving our local community and society

King Edward's is a charity which seeks to benefit the public through the pursuit of its stated aims. Our fees are set at a level to ensure the financial viability of the educational provision offered and at a level that is consistent with our aim of providing a first-class education to boys and girls. Our Schools welcome students from all backgrounds.

To admit a prospective student, we need to be satisfied that our Schools will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken in the Senior School to satisfy ourselves and parents that potential students can cope with the pace of learning and benefit from the education we provide.

An individual’s economic status, sex, gender reassignment, ethnicity, race, religion, sexual orientation or disability do not form part of our assessment processes. We are an equal opportunity organisation, and our policies are consistent with the Equality Act 2010. We are committed to a working environment that is free from any form of discrimination and, for the avoidance of doubt, regard all the protected categories listed above as equally valid with none taking precedence over another. We will use our best endeavours to understand and uphold the fundamental rights of all parties equally in the event of any real or perceived conflict. We seek to educate, creating an environment reflecting mutual respect, empathy and understanding and to that end encourage constructive dialogue offering differing perspectives from students and staff. We will make reasonable adjustments to meet the needs of staff or students who are or become disabled.

Our Schools are committed to safeguarding and promoting the welfare of our students and expect all staff and volunteers to share this commitment. All staff are subject to ongoing safeguarding training in accordance with DfE guidelines, the last such training took place in September 2022 for staff and in July 2022 for Governors. New staff also receive child protection training as part of their induction. All staff and Governors involved in recruitment have been trained in a National College accredited safer recruitment course which occurs triennially, the most recent one taking place in March 2021 and training for the Chair took place in February 2023. Whilst our systems and training on all safeguarding matters are robust, we are not complacent. Alongside the above training, staff have previously engaged in PREVENT training delivered by the local PREVENT team on matters relating to radicalisation, to ensure their actions are proportionate and address only relevant risks. The School actively promotes creative and independent thinking, welcoming staff, parents and pupils of all faiths and none.

Parents are given regular information about their children's social and academic progress through parent evenings in addition to the traditional end of term and year reports. We maintain regular contact with parents throughout the

Page 23

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

year both informally and through our e-bulletin and parent portal. We also have a strong pastoral system which, as well as supporting the welfare of our students, also enforces our very rigorous anti-bullying policy.

The most recent qualitative ISI inspection reports for both Schools demonstrate the impact of the Schools’ ethos and pastoral care provided:

At King Edward’s, the 2022 ISI Inspection report concluded that:

“Pupils develop strong self-understanding and self-belief. This is achieved because of the focus given to encouraging self-confidence by the school’s leadership and the support provided by dedicated pastoral and academic staff.

Pupils demonstrate excellent relationships with peers and adults and exhibit a strong sense of community through the school's overarching ethos of nurture and support. Pupils show an excellent moral compass in discussions, in class and during mealtimes. They live out the school’s ethos by clearly demonstrating the qualities of being kind and showing respect to others. Pupils showed much consideration and a sense of responsibility for the impact of their own behaviour and choices on others.”

At KES Prep, the most recent 2024 ISI Inspection report concluded that:

“Leaders and staff work together to promote the school’s values and ethos. Pupils are respectful of each other and of adults. This contributes to a calm, purposeful environment in which pupils behave well. Staff take a consultative and restorative approach.”

Instilling an ethos of social responsibility is at the heart of our charitable educational aims. In the light of Charity Commission guidance, the aim to develop and sustain close links with the community is fulfilled through educational and other associated activities carried out by the students and staff in the community delivering important educational and non-educational benefits to all involved. These activities are recognised and appreciated by our community. The Governors are committed to developing and sustaining this important aspect of the Schools’ ethos. As such, we continue to interpret the aim in its widest sense in accordance with our objectives, resisting pressures to direct resources away from activity which results in non-educational benefits for those who do not attend the Schools. In practice, this means that we will continue to encourage activities such as visits to local retirement homes by our students or using our design technology and textile equipment to produce PPE for NHS staff during a time of national crisis.

ACCESS POLICY

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our students benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which help our students to develop an understanding of the perspectives of other people that will be vital in their adult lives.

Our bursary policy together with our “Partnerships” programme and Foundation initiative contribute to a widening of access to the education we offer and the facilities we enjoy. The Governors are committed to identifying ways to expand the current bursary opportunities across all age groups whilst recognising the need to maintain affordability for parents paying the full fee.

Bursary policy and overview

The Governors view our bursary awards as important in helping to widen student access to ensure that a King Edward VI School education is provided to children from a broad spectrum of society, continuing the School’s long tradition of providing public benefit. The Governors are aware of their obligations under the Charities Act 2011 and the Charity Commission's guidance and seek to adhere to the public benefit principles identified by the Charity Commission. This policy is normally reviewed on an annual basis to take into consideration the latest guidance. We will continue to seek funds to increase our bursary awards whilst delivering our extensive programme of sharing our facilities with state and charitable organisations that share our aims, the details of which are listed under the extensive “Partnerships Programme” heading above.

King Edward's has a long history of providing financial assistance to students and their families and will continue to do so. While the costs of running the School require that those who can pay full fees must do so, in the current year

Page 24

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

the School has foregone 5.6% (6.1%) of gross fee income at the Senior School in fee remissions. This reflects the varying household income of recipients of bursary awards from year to year which we factor in over the longer term to the number of bursary awards offered. This figure is broken down into means-tested bursary and studentship awards totalling 4.9% (5.3%); scholarships and other non-means-tested awards make up the balance. Approximately 7.8% (8.6%) of the students at King Edward's at any one time, benefit from means-tested support, with 24 (27) worth 100% of fees. The bursary awards ranged from 7.2% to 100% remission of fees in the current year (13% to 100%). King Edward's limited bursary funding is primarily directed towards the parents of new students with the purpose of providing ongoing support during the time in which their child is a pupil of the Senior School up to the level of support required on entry into the School, subject to the parents’ continuing compliance with the terms and conditions of the bursary award and the level of bursary funds available. The scheme is designed to assist prospective parents on low incomes who, for financial reasons, might otherwise be unable to send their child to the School. in cases of hardship where an existing student's education and future prospects would otherwise be at risk, in exceptional circumstances, consideration will be given to providing financial support including the funding of school trips. Applications to an external trust may be made for support in hardship cases or to cover additional items incurred by bursary candidates such as uniform costs, bus fares, lunches and school trips.

In assessing means, we take a number of factors into consideration including family income, investments, equity, other assets and savings. We also take account of family circumstances, for example, dependent relatives and the number of siblings. However, King Edward’s does not have a large endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.

We are thankful to the trustees of The EPA Cephalosporin Fund (EPA) for their ongoing support with the latest award of £500,000 over 5 years to 2023/2024 towards the endowment of our bursary support. Maintaining exceptional science facilities is an important requirement to preserve the ongoing support from the EPA.

We viewa socially diverse student population as a key component of a full and balanced education. The availability of bursaries is advertised locally and in line with the objectives of the School. The focus of the advertising reflects the fact that we wish to make low-income families aware that a King Edward’s and KES Prep education can be accessible to those who cannot afford the fees. It also seeks to inform those involved in the current education of potential students who may be better placed to assess the benefit to the individual child thus encouraging families to look into the opportunities available for their child. Further details of our bursary policy and how to apply are available on our website.

OTHER POLICIES ON ASSISTANCE

Financial planning policy

Timely financial planning is often the key for many parents who are hoping to send their children to King Edward’s or KES Prep. The Governors are aware of the many competitive products available from specialist third parties to finance school fees through monthly payments or other payment terms tailored to the fee payer. In the light of this and the strict financial regulations governing credit agreements, the Schools do not offer comparable products to new entrants. In the event of financial hardship, such as redundancy, individual discussions may take place to consider varying the standard payment terms where this will assist the fee payer to overcome temporary financial difficulties; any agreed variation being in accordance with the relevant regulations.

Family discounts policy

Sibling discounts are awarded in both Schools without recourse to means testing. The Governors are aware that continuity is important for families and believe that some recognition of the increased likelinood of financial difficulty in meeting the fees of more than one child is warranted. From September 2021, siblings at both the Prep and Senior Schools are considered when calculating sibling discounts, to assist the affordability pressures on our families with more than one child.

Page 25

Docusign Envelope ID: 1B915308-1082-4116-9F45-DC8486CO0CAE KING EDWARD Vi SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

PROMOTING HIGH ACADEMIC STANDARDS

Scholarship policy

The purpose of our scholarship awards is to recognise and encourage exceptional ability tangibly demonstrating our commitment to academic excellence, maximising the potential of all students including the most academically able. Awards may be subject to conditions imposed by the original donor.

At the Senior School, academic scholarships are awarded on the results of the Admissions Examination, taking into account the recommendations of Head Teachers. Awards made when progressing within the School are based on nominations by teaching staff and a shortlist is drawn up for consideration by the Academic Board.

Sports and Creative Arts scholarships in Music, Art and Drama are also available. The successful candidates are expected, during the tenure of their award, to make an important and continuing contribution to Sport or the Creative Arts at the School.

Scholarships are awarded with a fixed remission of fees of up to 25%. The level of remission awarded to a scholarship student has been reduced in recent years. Awards above 10% are only available in the Sixth Form and have been predominantly funded by historic donations given by external bodies for that purpose. Where further assistance is required, scholarship awards may be supplemented by a means-tested bursary. We advertise the availability of scholarship awards and further details of our scholarship policy are available on our website.

Assistance for our staff

As part of our emphasis on attracting and retaining high-calibre staff, we offer a discount scheme where staff members choose to educate their children at either School.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The company is governed by its Articles of Association, which were revised on 12 December 2018.

Governing Body

The Governors (who are also directors of the company for the purpose of the Companies Act 2006) of King Edward VI School Southampton during the year are disclosed in the Legal and Administrative Information pages of the Annual Report.

Nominative Governors are appointed in accordance with the practice of the appointing body. The name of each person appointed is notified to the Clerk to the Governors. Nominative Governors hold office for up to five years and can be re-appointed by the Governing Body. Co-optative Governors are appointed by the Board and hold office for up to three years and can be re-appointed by the Governing Body. The Chair and Vice-Chair are elected to their respective posts annually by the Board.

Membership of the Governors' Committees during the year to 31 August 2024 was as follows:

KES Prep: Buildings, Grounds and Sports (B G and S): Mr A J Morgan Mr A J Morgan Mrs C G Musker (Chair) Vice-Chair of Governors, Mr | Rudland (Chair) Mrs W P Swinn Mr A O Knibb Miss P S Kirk Mr A J Connell Mrs H VL Nicholson Mr G CB Davies MrORE Wylie

Page 26

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Education and Welfare (E and W): Finance: Mr A J Morgan Mr A J Morgan Mr A S Jones (Chair) Chair of the B G and S Committee, Mr | Rudland Miss P S Kirk Chair of the E and W Committee, Mr A S Jones Mrs C G Musker Chair of the KES Prep Committee, Mrs C G Musker Dr J E Mitchell Mr J J Gray (Chair) Dr AL Thomas Mr A J Connell Mr D S Dhanda Mr D P Geddes Miss V Stuart-Taylor Mr M Chaloner Dr M R W Evans Mr T Steele Mr G C B Davies Development: Membership: Mr A J Morgan (Chair) Mr A J Morgan Chair of the B G and S Committee, Mr | Rudland Vice Chair of Governors, Mr | Rudland Chair of the E and W Committee, Mr A S Jones Chair of the E and W Committee, Mr A S Jones Chair of the Finance Committee, Mr J J Gray Chair of the Finance Committee, Mr J J Gray Chair of the KES Prep Committee, Mrs C G Musker Chair of the KES Prep Committee, Mrs C G Musker Mr D P Geddes

Salaries: Mr A J Morgan (Chair) Chair of E and W Committee, Mr A S Jones Chair of Finance Committee, Mr J J Gray Chair of the KES Prep Committee, Mrs C G Musker Mr M Chaloner

Governors / Directors with Specific Responsibilities Miss P S Kirk (Senior School Compliance) Mrs W P Swinn (Prep School Compliance and Child Protection, Parent Teacher Association and Early Years) Mr A J Connell (ICT Strategy) Miss P S Kirk (Sustainability) Dr J Mitchell (Senior School Child Protection) [ceased 1 December 2023] Mr M Chaloner (Senior School Child Protection) [from 1 January 2024] Mr A J Morgan (Parent teacher association) Mrs H V L Nicholson (Marketing Committee) Mr 1H Rudland (Health & Safety)

The Board reviewed the terms of reference for all Committees on 8 December 2018 and agreed revisions to the terms of the Finance, KES Prep, Membership and Salaries sub-committees. The Board has continued its proactive focus on strategic long-term governance matters, including skill mix and succession planning, having established a Membership Committee in July 2015 for that purpose. This review included a revision to the Articles in December 2018.

Governance remains strong and the Governing Body is well placed to provide wise leadership to meet the unique mix of challenges that will face the sector over the medium term. The company has made qualifying third-party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Governor recruitment and training

The Governing Body requires breadth and depth of experience to carry out its duties effectively and efficiently. New Governors are appointed by the existing Board of Governors. When recruiting new Governors, the important attribute is a passion for the work of our Schools and an understanding of education as a holistic and rounded experience of personal growth. We invite individuals to consider joining our Board where they possess these qualities and add to the breadth and quality of the existing perspectives, experience and expertise. Where possible, the Governors consider that the skills and experience of the Board should comprise the following:

Page 27

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486COOCAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

One Governor may have one or more of these skills. Our Governors are a significant factor underpinning the exceptional record of success in recent years as recognised by the most recent ISI inspection.

New Governors are inducted into the workings of the Schools and Charity by other Governors, the Head and Clerk to the Governors and undertake external induction training as appropriate. As well as receiving regular training, the Governors remain actively involved in the Schools.

Department Heads give regular presentations directly to the Governors to aid their understanding of key aspects of the Schools. In 2023/2024 at the Senior School, there have been presentations on wellbeing, and training on “new headship” and briefings by AGBIS.

During the year we have arranged training courses in specific areas of interest for individual Governors organised by AGBIS and other leading providers to the sector. Further to the away days in 2022/2023, additional strategic days were held on 13 January 2024 and 16 October 2024 focussing on leadership and the decision-making process took place for Governors and senior members of the schools’ leadership team. Governors are also provided with appropriate training materials including general guidance such as the Charity Governance Code in addition to the AGBIS guidelines for Governors. Particular care is taken with the induction of new Governors, and we encourage all Governors to attend third-party training courses as part of their continuing professional development, including AGBIS training for new governors which was attended this year.

The Governors’ intranet provides online support and has been updated to facilitate easier secure Governor access to relevant supporting documentation. This is an important source of training materials in addition to ensuring that all Governors receive timely information on governance issues affecting the Schools. Email updates on key issues and training opportunities are also circulated to all Governors on a regular basis.

An external review of our governance took place during the 2020/2021 academic year as part of our ongoing monitoring processes. This involved extensive interviews of staff and governors by two external AGBIS reviewers, followed by the presentation of a detailed report. A governance self-review is conducted annually in the Autumn Term and the 2021 summary has been discussed at length by the Board. The skills audit highlights the core competencies pertinent to running preparatory and senior day schools in a charity context.

Governance is a dynamic process and proactively maintaining the Schools’ strong governance is a key factor in the success of the Charity in delivering its aims. This is clearly evidenced in the latest strategic review by the Chair of Governors ensuring the continued effective governance of the Schools.

Organisational management

The Governors are responsible for determining the general policy and strategic direction of the Schools. The Heads undertake the key leadership role overseeing educational, pastoral and administrative functions in consultation with the senior staff. The day-to-day administration is undertaken within the policies and procedures approved by the Governors, which provide that only significant expenditure decisions and major capital projects need to be referred to the Governors for prior approval. The Heads oversee the recruitment of all educational staff, whilst under delegated authority the Bursar oversees the recruitment of administrative and professional services staff.

The Governors meet as a Board at least three times a year to determine the general policy of the Charity and review its overall management and control, for which they are legally responsible. The work of implementing the Board's policies is carried out by the relevant sub-committees, meeting three times a year and reporting to the Board. These regular meetings are attended by relevant members of the senior leadership teams. Detailed written reports are presented, together with verbal briefings on all governance items. Minutes set out agreed actions to be taken and are kept under review.

Clear policies are in place and the implementation of agreed objectives is monitored. The day-to-day running of the Schools is delegated to the Heads and the Bursar, supported by other members of the senior leadership team. The Heads and Bursar are invited to attend all meetings of the Governing Body and all sub-committee meetings.

The Bursar, Mr Maher retired on 31 August 2024 having fulfilled the role since October 2005. Our new Bursar (and Company Secretary), Mrs Slowey joined in April 2024 and the role of Clerk to the Governors was separated out and

Page 28

Docusign Envelope ID: 1B915308-1082-4116-9F45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON

REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Mrs Hummerstone was also appointed. The Clerk is responsible for co-ordinating the work of the Governors and their committees, preparing Board papers and management accounts and the review of matters arising.

The Governors commit to exercise their role in accordance with the seven principles outlined in the Charity Governance Code being part of their induction process.

The Trustees note the recent revision to the Charities Governance Code, in particular the ‘Equality, Diversity and Inclusion (EDI) Principle’ and ‘Integrity Principle’ and during the last year have taken proactive steps to add diversity to the Board and to reinforce the duty to provide a safe environment for everyone who has contact with the charity.

These principles underpin the actions of Governors, ensuring they act in the best interests of the Charity, within its Objects and the powers set out in its Articles. They seek to exercise reasonable skill and care to achieve the strategic aims.

All Governors, as trustees give of their time freely and no remuneration was paid in the year. Expenses legitimately incurred on School business paid to Governors in the year detailed in note 10. No Governor or person connected with a Governor received any benefit from either means-tested bursaries or scholarships awarded to our students.

The pay of the senior leadership team across both Schools is approved by the Chair of Governors in consultation with senior Governors including the Chair of the Finance Committee and Vice-Chair of Governors. Regular sector -

Page 29

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

benchmarking is undertaken on a 3-yearly cycle and discussed at the Finance Committee, the last discussion being in March 2023.

Organisational structure and relationships

King Edward’s is an active member of ISC, ISBA, Solent and Trinity Groups for the promotion and maintenance of school standards generally. The Head of King Edward’s is a member of the Headmasters’ and Headmistresses’ Conference, which provides the opportunity to share expertise, knowledge and experience across the independent school sector. The Conference also facilitates appropriate sector representation to government and regulators. Mrs Rebecca Smith is a member of the Independent Association of Preparatory Schools (IAPS) which enables her to keep abreast of all matters relevant to the Prep School. She reports to the Senior School Head.

Risks and risk management

The Governors are responsible for the overseeing of the risks faced by the Schools. The detailed consideration of risk is delegated to the senior leadership of the Schools. Risks are identified, assessed and controls established throughout the year. A formal review of the Charity’s risks and risk management processes is undertaken annually and in compliance with the Charity Commission risk management guidance (CC26) and with regard to their February 2016 risk framework document. Risk is managed by reviewing in excess of 90 specific factors under the broad headings of governance, operational, financial, environmental, external, compliance and legal. IT risks and cyber-fraud continue to be a significant risk with many independent schools having recently been targeted.

The risk of imposition of VAT will be realised in January 2025. As discussed previously we have undertaken much planning around this and planned our approach accordingly. We have also increased our contingency funds to a sum equivalent to a term’s fees to reflect the increased business risk.

The cost of defined benefit staff pensions and the risk that they could compromise the financial viability of the Charity have increased significantly. During the year, the Governors working party, the Pensions Working Group, continued to monitor the implications of the recent changes to the Teachers’ Pension Scheme.

The risk of economic and political uncertainty due to conflict in Europe and the Middle East and the impact of inflationary pressures on the organisation, increased significantly this year. The impact on pupils and staff continues to be monitored, alongside the impact on pricing and supplies relevant to the schools’ business.

It is also recognised that the inability to recruit and retain high-calibre staff, particularly teachers, continues to be a key risk to such a people-dependent organisation and considerable focus and resource has been placed on this area including staff training. Coupled with this we have seen the continued growth of regulatory requirements increasing the risk of compliance failure. Specific Governor training, covering their responsibilities on compliance is provided on an ongoing basis and formally updated every three years.

Transporting pupils in and out of Southampton in a cost effective, environmentally friendly and timely manner continues to be difficult. The Governors are keeping a watching brief on plans to introduce local congestion zones and the general pressure of affordability on both transport providers and parents. A strategic review of our transport system has resulted in a commitment from our contractors to adopt a single live tracking system for our buses and in excess of 80% of the transportation is in Euro 6 compliant vehicles.

Routes are also regularly reviewed to manage predictable roadwork delays. These changes will improve the experience and convenience for pupils and parents whilst significantly reducing our carbon footprint. The Schools are also working very hard to avoid above inflation cost increases for our parents. The Governors are also mindful of the long-term strategic benefits of taking opportunities for integration with other educational establishments that will add value to the educational experience of our students. This is managed through main Governors’ meetings, strategic away days and the Development sub-committee which meets when required.

Through the risk management processes established for the Schools, the Governors are satisfied that the major risks identified have been addressed and mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The Governors believe

Page 30

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON REPORT OF THE GOVERNORS (continued) FOR THE YEAR ENDED 31 AUGUST 2024

that both Schools are well placed to meet future challenges and will continue to excel in the delivery of the Charity's aims.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The financial risk assessment has been updated to reflect the current and potential impact of changes to the Teachers’ Pension Scheme, parent affordability and the potential changes of Government policy in the area of taxation. The balance sheet remains strong with healthy cash balances, no bank loans and access to a £2million drawdown facility at short notice at competitive rates if required.

Governors’ responsibilities for the financial statements

The Governors (who are also directors of King Edward VI School Southampton for the purposes of company law) are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group 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 2/3/2025 | 16:02 GMT above Strategic Report and Trustees’ Report are approved by the Board on ....................... and signed on its behalf.

Grraint Danics

G C B DAVIES

Chair of Governors

Page 31

KING EDWARD VI SCHOOL SOUTHAMPTON INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 AUGUST 2024

Opinion

We have audited the financial statements of King Edward VI School Southampton (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and the Parent Charitable Company Balance Sheet, the Consolidated Cash Flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Report of the Governors, other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

Page 32

KING EDWARD VI SCHOOL SOUTHAMPTON INDEPENDENT AUDITOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

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 the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Report of the Governors.

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 governors’ responsibilities statement set out on page 32, the governors 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 group's and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the governors either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http:/Awww.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Page 33

KING EDWARD VI SCHOOL SOUTHAMPTON INDEPENDENT AUDITOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 34

KING EDWARD VI SCHOOL SOUTHAMPTON

INDEPENDENT AUDITOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2024

Use of our report

This report is made solely to the company’s Governors, 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 Governors 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 Governors as a body, for our audit work, for this report, or for the opinions we have formed.

==> picture [202 x 56] intentionally omitted <==

----- Start of picture text -----
Le. foul,
forarkand Gregoryon behalf ACAof (SeniorFiander Statutory Auditor)Tovell Limited
----- End of picture text -----

Chartered Accountants Registered Auditors

Ss KS 2025 Stag Gates House 63/64 The Avenue Southampton Hampshire $017 1XS

Page 35

Docusign Envelope ID: 1B915308-1082-41 16-9F45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024
eee
Notes Unrestricted funds
Other		 Self- Restricted
funds		 Endowed
funds		 Total
funds		 Total
funds
Revenue Capital designated _ financing 2024 2023
fund reserve funds activities
£ £ £ £ £ £ £ £
INCOMING RESOURCES
Income from donations and legacies 6 - - 12,049 - 128,985 159,749 300,783 133,075
Income from charitable activities:
Fees 4(a) 23,095,196 - - - - - 23,095,196 22,198,495
Additional school activities 74,325 - - - - - 74,325 58,394
Catering income 768,722 - - - - - 768,722 716,794
Bus income 1,077,002 - - - - - 1,077,002 1,020,621
Other school income 5 156,615 - - - - - 156,615 189,625
Income from othertrading activies:
Self-financing activities - - - 790,796 - - 790,796 1,413,094
Income from property and ancillary activities 57,460 - - - 1,500 - 58,960 77,232
Investment income:
Bank and other interest 52,769 - 8,789 - 57,445 - 119,003 101,243
Investment income 195,184 - 9,104 - 152,953 - 357,241 287,545
Total incoming resources 25,477,273 - 29,942 790,796 340,883 159,749 26,798,643 26,196,118
RESOURCES EXPENDED
Expenditure on raising funds:
Fund raising for voluntary income 401,821 - - - - - 401,821 216,892
Self-financing activities - - - 736,445 - - 736,445 1,479,973
Charitable activities
School operating costs 21,138,364 - 57,033 - - - 21,195,397 20,610,432
Bus costs 1,140,546 - - - - - 1,140,546 1,035,869
Scholarships, bursaries and prizes 4(b) - - 891,621 - 318,012 - 1,209,633 1,218,881
Ancillary activities’ costs 330,925 - - - - - 330,925 339,392
Other resources expended
Taxation of subsidiary 11 - - - - - - - -
Totalresourcesexpended 12 23,011,656 - 948,654 736,445 318,012 - 25,014,767 24,901,439

Page 36

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024 FOR THE YEAR ENDED 31 AUGUST 2024
ee
oa
8.
a...
8
880...
Ss
as
Notes Revenue Unrestricted
Capital		 funds
Other
Self-
designated _financing		 Restricted
funds		 Endowed
funds		 Total
funds
2024		 Total
funds
2023
fund reserve funds activities
£ £ £ £ £ £ £ £
Net incoming/(outgoing) resources before transfers 2,465,617 - (918,712) 54,351 22,871 159,749 1,783,876 1,294,679
Transfers between funds 13 (2,336,876) 1,225,867 793,436 - 317,573 - - -
Net incoming/(outgoing) resources before other
recognised gains/(losses) 128,741 1,225,867 (125,276) 54,351 340,444 159,749 1,783,876 1,294,679
Realised gains/(losses) on disposal ofinvestment assets - - 82,917 - (33,542) 30,768 80,143 72,125
Net income/(expenditure) forthe year 128,741 1,225,867 (42,359) 54,351 306,902 190,517 1,864,019 1,366,804
Actuarial gains/(losses) on defined benefit pension schemes (52,000) - - - - - (52,000) 4,000
Unrealised gains/(losses) on investmentassets - - 738,438 - 353,951 309,914 1,402,303 (122,723)
Net movement in funds forthe year 76,741 1,225,867 696,079 54,351 660,853 500,431 3,214,322 1,248,081
Balances at
1 September 2023		 7,546,623 28,915,222 1,154,487 8,845 4,206,297 3,448,226 45,279,700 44,031,619
Balancesat31August2024 7,623,364 30,141,089 1,850,566 63,196 4,867,150 3,948,657 48,494,022 45,279,700

All operations are continuing operations.

Page 37

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

EORTHE YEAR ENDED 31 AUGUST 2024

EORTHE
THE YEAR ENDED 31 AUGUST		 AUGUST 2024
Notes Unrestricted funds Restricted Endowed Total
Other Self- funds funds funds
Revenue Capital designated financing 2023
fund reserve funds activities
£ £ £ £ £ £ £
INCOMING RESOURCES
Income from donations and legacies 6 - - - - 132,325 750 133,075
Income from charitable activities: a
Fees A(a) 22,198,495 - - - - - 22,198,495
Additional school activities 58,394 - - - - - 58,394
Catering income 716,794 - ss - - - 716,794
Bus income 1,020,621 - - - - - 1,020,621
Other school income 5 189,625 - - - - - 189,625
Income from other trading activies: -
Self-financing activities - - - 1,413,094 - . 1,413,094
Income from property and ancillary activities 74,760 - - . 2,472 - 77,232
Investment income: -
Bank and other interest 45,190 - - - 56,053 - 101,243
Investment income 123,422 - 9,220 - 154,903 . 287,545
Total incoming resources 24,427,301 - 9,220 1,413,094 345,753 750 26,196,118
RESOURCES EXPENDED
Expenditure on raising funds: -
Fund raising for voluntary income 216,892 - - - - - 216,892
Self-financing activities . - - 1,479,973 - - 1,479,973
Charitable activities =
School operating costs 20,609,932 - - - - 500 20,610,432
Bus costs 1,035,869 . - - - - 1,035,869
Scholarships, bursaries and prizes 4(b) . - 922,258 - 296,623 - 1,218,881
Ancillary activities’ costs 339,392 - - - - - 339,392
Other resources expended ¥
Taxation of subsidiary 11 - - . - - - .
Totalresourcesexpended 12 22,202,085 - 922,258 1,479,973 296,623 500 24,901,439

Page 38

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

Notes Unrestricted funds Restricted Endowed Total
Other Self- funds funds funds
Revenue Capital designated financing 2023
fund reserve funds activities
£ £ £ £ £ £ £
Net incoming/(outgoing) resources before transfers 2,225,216 . (913,038) (66,879) 49,130 250 1,294,679
Transfers between funds 13 (2,161,664) 1,150,867 1,067,752 (29,639) (27,316) - -
Net incoming/(outgoing) resources before other
recognised gains/(losses) 63,552 1,150,867 154,714 (96,518) 21,814 250 1,294,679
Realised gains/(losses) on disposal of investment assets - ~ 33,851 - 17,728 20,546 72,125
Net income/(expenditure) for the year 63,552 1,150,867 188,565 (96,518) 39,542 20,796 1,366,804
Actuarial gains/(losses) on defined benefit pension schemes 4,000 - - - - - 4,000
Unrealised gains/(losses) on investment assets . - (38,302) - (41,906) (42,515) (122,723)
Net movement in funds for the year 67,552 1,150,867 150,263 (96,518) (2,364) (21,719) 1,248,081
Balances at 1 September 2022 7,479,071 27,764,355 1,004,224 105,363 4,208,661 3,469,945 44,031,619
Balancesat31August2023 7,546,623 28,915,222 1,154,487 8,845 4,206,297 3,448,226 45,279,700

All operations are continuing operations.

Page 39

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 AUGUST 2024

Notes 2024 2023
£ £ £ £
Fixed assets
Tangible assets 14 32,185,005 32,083,759
Investments 15 15,916,838 14,222,468
48,101,843 46,306,227
Current Assets
Debtors 16 715,606 760,193
Cash at bank and in hand 8,567,732 901,009
9,283,338 1,661,202
Creditors: amounts falling due within one year 17 (3,544,085) (2,493,932)
Net current assets/(liabilities) 5,739,253 (832,730)
Total assets less current liabilities 53,841,096 45,473,497
Creditors: amounts falling due aftermore
than one year 18 (5,410,270) (202,642)
Self-financing activities’ net assets 63,196 8,845
Net assets 48,494,022 45,279,700
Funds
Endowed funds 21 3,948,657 3,448,226
Restricted funds 22 4,867,150 4,206,297
Designated funds 23 32,054,851 30,078,554
Revenue fund: 24
Revaluation reserve 263,258 263,258
Other funds 7,360,106 7,283,365
7,623,364 7,546,623
48,494,022 45,279,700

3/3/2025 | 11:12 GMT

The financial statements were approved by the Governors ON ........cccccecceesesseeesenneees

Erraint Danics

G CB Davies

Chair of Governors

Company registration no.: 04238902

Page 40

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON BALANCE SHEET - PARENT ONLY

FOR THE YEAR ENDED 31 AUGUST 2024

Notes 2024 2023
£ £ £ £
Fixed assets
Tangible assets 14 24,085,379 23,898,074
Investments 15 18,405,386 16,711,016
42,490,765 40,609,090
Current Assets
Debtors 16 540,880 7,901,608
Cash at bank and in hand 7,309,904 776,668
7,850,784 8,678,276
Creditors: amounts falling due within one year 17 (2,732,605) (2,140,241)
Net current assets 5,118,179 6,538,035
Total assets less current liabilities 47,608,944 47,147,125
Creditors: amounts falling due aftermore
than one year 18 (4,885,619) (159,242)
Self-financing activities’ net assets 63,196 8,845
Defined benefit pension scheme liability 25 - -
Net assets 42,786,521 46,996,728
Funds
Endowed funds 21 3,948,657 3,448,226
Restricted funds 22 4,867,150 4,206,297
Designated funds 23 32,054,851 30,078,554
Revenue fund 24 1,915,863 9,263,651
42,786,521 46,996,728

3/3/2025 | 11:12 GMT

The financial statements were approved by the Governors ON ..........cccccsccesesseeseeteneens

Erraint Danics

G CB Davies

Chair of Governors

Company registration no.: 04238902

Page 41

Docusign Envelope ID: 1B915308-1082-4116-9F45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON CONSOLIDATED CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2024

2024 2024 2023
£ £ £ £
Cash generated by operating activities 9,482,273 2,578,210
Cash flows from investing activities
Investment income 476,244 388,788
Payments to acquire fixed asset investments (381,491) (4,106,880)
Proceeds from sale offixed asset investments 169,567 143,541
Payments to acquire tangible fixed assets (2,083,370) (3,085,530)
Proceeds from sale of tangible fixed assets 3,500 -
Cash generated by/(used in) investing activities (1,815,550) (6,660,081)
Cash used in financing activities - .
(Decrease) / Increase in cash in the year 7,666,723 (4,081,871)
Cash and cash equivalents at the beginning ofthe reporting period 901,009 4,982,880
Cash and cash equivalents at the end of the reporting period 8,567,732 901,009
Reconciliation of net income/(expenditure) to net cash flowfrom operating activities:
Net income/(expenditure) forthe reporting period 3,214,322 1,248,081
Adjustments for:
Depreciation charges 1,982,124 1,728,000
(Profit)/loss on disposal offixed assets (3,500) 2,226
Unrealised (gains)/losses on investment assets (1,402,303) 122,723
Realised (gains)/losses on investment assets (80,143) (72,125)
Investment income (476,244) (388,788)
(Increase)/decrease in debtors 44,587 (262,092)
Increase/(decrease) in creditors 6,257,781 103,667
Net (gains)/losses on pension schemes 155,000 145,000
Employer contributions tofunded defined benefit pension schemes (155,000) (145,000)
Decrease/(increase) in self financing activities’ net assets (54,351) 96,518
Netcashgeneratedbyoperatingactivities 9,482,273 2,578,210

Page 42

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

Charity information

King Edward VI Schoo! Southampton is a private charitable company limited by guarantee, established under its Memorandum and Articles of Association and registered with the Charity Commission and Companies House in England and Wales. The principal address is Wilton Road, Southampton, Hampshire, $015 5UQ. The charity is a public benefit entity.

1.1 Basis of preparation

The Financial Statements have been prepared under the historic cost convention, with the exception of certain fixed assets which are included at market value. The Financial Statements have been prepared in accordance with the Charities SORP “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)" (SORP2019) issued in October 2019, applicable UK accounting standards and the Companies Act 2006. The principal accounting policies adopted in the preparation of the Financial Statements are set out below.

The Financial Statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts are rounded to the nearest £.

The parent entity has taken advantage of the reduced disclosure framework exemption in connection with its own results. This gives exemption from the following disclosures: statement of cash flows and key management personnel! remuneration.

1.2 Basis of consolidation

These accounts incorporate the results of the Charity, King Edward VI School Southampton, and its subsidiary companies, King Edward VI Preparatory School Ltd (formerly Stroud School Limited) and KES Bookings Limited, on a line for line basis. The results of subsidiaries sold or acquired are included in the statement of financial activities up to or from the date control passes. All intra group transactions have been eliminated on consolidation.

1.3. Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Fees received and receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees are stated after deducting allowances, scholarships and other remissions granted by King Edward's and KES Prep. Amounts invoiced in advance are deferred and carried forward within creditors, whilst amounts due but not yet received in the year are shown within debtors.

Page 43

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

Investments in subsidiary undertakings are stated at cost in the parent company’s financial statements.

Investment income from listed investments is accounted for when received. Interest on deposits is accounted for on an accruals basis. Donations Donations received for the general purposes of King Edward's and King Edward's Prep are credited to the Revenue fund. Donations subject to specific wishes of the donors are carried to relevant restricted funds or to endowed funds where the amount is required to be held as permanent capital.

1.7 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities. The irrecoverable element of VAT is included with the item of expense to which it relates. Construction costs charged to King Edward's and King Edward's Prep that are capitalised are excluded from trading expenditure. Fixed assets Fixed assets of the parent company are included at valuation at 1 September 1979 or subsequent cost. Freehold land and buildings were valued by the Governors at that date for insurance purposes with the exception of land which was revalued at its estimated market value. The surplus arising on the valuation has been transferred to Capital Reserve.

The land and buildings of the subsidary undertaking include assets shown at their fair value as at 21 May 2012.

Fully depreciated assets are written out of the financial statements at the end of their depreciation period.

Single items costing less than £1,000 are written off as an expense as acquired.

Depreciation is provided on all tangible fixed assets in use, other than freehold land and assets in the course of construction, at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected life as follows:

Freehold buildings Over 50 years
General plant and equipment Over 3 to 10 years
Furniture, fixtures and fittings Over 5 to 10 years
Motor vehicles Over4 to 5 years
Computerand audio-visual equipment Over 3 to 4 years
Sailing boats and equipment Over4 years
Portablecomputerequipmentincludinglaptops Over3years

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively

Page 44

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting Policies (continued)

1.9 Depreciation (continued) The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the Statement of Financial Activities.

1.10 Leasing

Rentals payable under operating leases are charged against income ona straight line basis over the lease term.

1.11. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash and cash equivalents

Cash and cash equivalents include cash in hand,deposits held at call with banks, other short term liquid investments with original maturities of three months or less, and bank overdrafts.

1.13 Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that is likely to result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.15 Self-financing activities

Receipts collected and payments made by King Edward’s and KES Prep in connection with self-financing activities are accounted for in the Statement of Financial Activities as the schools ultimately retain any surplus or deficit arising. These balances are a reflection of the large number of activities and trips which the pupils undertake.

1.16 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

1.17 Taxation

The subsidiary companies are subject to corporation tax but liability to tax can be relieved by way of a Gift Aid distribution to the parent charity.

Page 45

Docusign Envelope ID: 1B915308-1082-4 116-9F45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting Policies (continued)

1.18 Pension schemes

King Edward's and KES Prep participate in the Teachers' Pension Scheme. This is a multi-employer defined benefit pension scheme. The pension liability is the responsibility of the fund. As a result it is not possible to identify the assets and liabilities of the scheme that are attrioutable to King Edward's and KES Prep. Accordingly, under FRS 102, the scheme is accounted for as if it were a defined contribution scheme. King Edward's is an admitted body to the superannuation scheme operated by the Hampshire County Council which is a multi-employer defined benefit pension scheme. The assets of the scheme are measured using closing market values. Liabilities are measured using the projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of the scheme expected to arise from employee service in the period, the expected return on the scheme's assets and the increase during the period in the present value of the scheme's liabilities arising from the passage of time, and actuarial gains and losses are all recognised in the Statement of Financial Activities.

All other pension arrangements are defined contribution schemes where the assets of the schemes are held separately from those of King Edward's and KES Prep in independently administered funds. The pension cost charge represents contributions payable by King Edward's and King Edward's Prep to the funds.

1.19 Funds and reserves

The endowed funds represent donations to fund scholarships, bursaries, prizes and other awards from the income derived and which cannot be expended as revenue. The income from these funds, together with accumulated unspent income from prior years, is restricted.

Restricted funds are to be used for specific purposes as laid down by the donor.

The unrestricted funds can be used in accordance with the charitable objects at the discretion of the Governors and are held at a level considered practicable and achievable to cover the risks and uncertainties of operating as an independent educational establishment. Designated funds are set aside by the Governors out of unrestricted general funds for specific future projects.

2 Key estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Charity's accounting policies. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next twelve months are as follows:

Defined benefit pension scheme liability

Provision is made for the deficit on the Hampshire County Council superannuation defined benefit pension scheme. The deficit is an estimate based on calculations and valuations made by independent actuaries.

As at 31 August 2024, the scheme position is that of an asset of £1,052,000 (2023: £710,000). The surplus has not been recognised in these financial statements on the basis that it would be unable to recover the surplus.

Page 46

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

3 Subsidiary companies

The Charity has an interest in two wholly owned subsidiaries, King Edward VI Preparatory School Ltd (KES Prep) (company no: 00616684), which provides education for 2 to 11 year olds and a trading subsidiary, KES Bookings Limited (KBL) (company no: 11043126). The results of these companies up to 31 August 2024 are included in the group financial statements as detailed below:

==> picture [456 x 205] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |£|£| |KES|Prep|KBL| |Turnover|4,035,100|51,217| |Rent|receivable|2,486|-| |Interest|receivable|4,399|:| |Other|operating|income|65,145|:| |Operating|expenses|(4,477,598)|(35,018)| |Interest|payable|(112,059)|-| |Net|profit/(loss)|before|taxation|(482,527)|16,199| |Taxation|credit|-|.| |Net|profit/(loss)|after taxation|(482,527)|16,199| |Donation|to|parent|charity|.|(17,415)| |Retained|loss|for the|year|(482,527)|(1,216)|

----- End of picture text -----

At 31 August 2024, the aggregate amount of net assets and reserves was as follows:

==> picture [456 x 215] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |£|£| |Fixed|assets|7,567|,336|-| |Current|assets|1,406,824|92,945| |Current|liabilities|(8,715,224)|(71,746)| |Liabilities|due|in|more|than|one|year|(524,650)|-| |(265,714)|21,199| |Represented|by:| |£|£| |Share|capital|5,945|5,000| |Revaluation|reserve|263,258|.| |Other|reserves|(534,917)|16,199| |(265,714)|21,199|

----- End of picture text -----

Page 47

Docusign Envelope !D: 1B915308-1082-4116-9F45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

4 Fees
2024 2023
(a) Fees consists of:
£ £
Gross fees 24,064,730 23,179,201
Less: total bursaries, grants and allowances (2,179,167) (2,199,587)
21,885,563 20,979,614
Add back: scholarships, grants etc. paid from unrestricted,
restricted and designated funds 1,209,633 1,218,881
23,095,196 22,198,495
(b) The total grants, awards and prizes paid for byTrust Funds consist of:
2024 2023
£ £
Scholarships, grants etc. paid from restricted and designated funds 1,207,148 1,212,581
Prizes and leaving awards 2,485 6,300
1,209,633 1,218,881
5 Other income 2024 2023
£ £
Unrestricted:
Insurance commission 2,300 2,162
Entrance and registration fees 22,375 21,275
Other school income 131,940 166,188
156,615 189,625
6 Donations and legacies 2024 2023
Unrestricted: £ £
Other 12,049 -
Restricted:
EPA Cephalosporin Fund 100,000 100,000
KES Foundation 28,730 32,070
Other 255 255
Endowed:
Other 159,749 750
300,783 133,075

Page 48

Docusign Envelope ID: 1B915308-1082-41 16-9F45-DC8486COQ0CAE KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

7 Expenditure 2024 2023
£ £
Total expenditure includes:
Auditors' remuneration:
- Fees payable for the audit of the parent and consolidated accounts 21,180 18,216
Fees payable to the charitable company's auditor for other services:
- Audit ofthe charitable company's subsidiaries 10,680 10,218
- Taxation compliance 1,920 2,484
- Advisory and other services 6,137 6,664
Operating lease rentals
- Plant and machinery 13,961 11,830
- Land and buildings - -
8 Employees
2024 2023
£ £
Total staff costs:
Wages and salaries 11,655,891 11,365,773
Social security costs 1,170,831 1,167,314
Pension contributions - defined contribution and multi-employer defined
benefit schemes 2,107,561 1,993,653
Operating costs of defined benefit pension schemes 141,000 162,000
15,075,283 14,688,740
Private medical insurance 21,085 65,750
15,096,368 14,754,490

8 Employees

The average monthly number of employees in the year was:

Total Full time equivalents
2024 2023 2024 2023
Number Number Number Number
Teaching 209 230 163 181
Non-teaching 124 132 77 83
333 362 240 264
2024 2023
Number Number
Full time 158 197
Part time 175 165
333 362

Page 49

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE

KING EDWARD Vi SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

8 Employees (continued)

The number of employees who had total employee benefits excluding employer pension contributions above £60,000 were:

£60,000 were:
2024 2023
Number Number
£60,001 - £70,000 21 25
£70,001 - £80,000 6 6
£80,001 - £90,000 1 1
£90,001 - £100,000 1 2
£100,001 - £110,000 4 -
£110,001 - £120,000 - 1
£120,001 - £130,000 - -
£130,001 - £140,000 - 1
£140,001-£150,000 1 -

There were 32 (2023 - 36) higher paid employees to whom retirement benefits were accruing under defined benefit pension schemes.

9 Key management remuneration

Key management remuneration
2024 2023
£ £
The remuneration of key management
personnelisasfollows: 944,371 923,134

10 Governors

Neither the governors nor any other person connected with them received any remuneration. Two governors were reimbursed expenses of £1,373 (2023 - three governors, £1,102).

Page 50

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

==> picture [478 x 327] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |11|Taxation|2024|2023| |£|£| |Domestic|current|year tax| |U.K.|corporation|tax|-|~| |Total|current|tax|-|-| |Factors|affecting|the|tax|(credit)/charge|for the|year| |Loss|of subsidiary|undertakings|on|ordinary|activities|before|taxation|(466,328)|(743,643)| |Loss|on|ordinary|activities|before|taxation|multiplied|by|standard|rate|of| |UK|corporation|tax|of 25%|(2023|-|21.50%)|(116,582)|(159,883)| |Effects|of:| |Change|in|unrecognised|deferred|tax|94,282|173,782| |Permanent|disallowable|expenditure|4,515|814| |Adjustments|to|previous|periods|-|.| |Depreciation|on|assets|not|qualifying|for|tax|allowances|21,835|18,976| |Superdeduction|-|(5,691)| |Change|in|tax|rate|.|(24,254)| |Losses|-|-| |Gift|Aid|transfer|to|parent|(4,050)|(3,744)| |116,582|159,883| |Current|tax|(credit)/charge|for the|year|-|-|

----- End of picture text -----

All taxable profits of the subsidiary undertakings are donated to the parent charity by way of a gift aid transfer. Therefore, no tax charge arises.

On 1st April 2023, the UK current tax rate increased from 19% to 25%. Therefore, a hybrid rate has been applied for the prior period and has been used in the calculation of the tax liability. The deferred tax rate remains at 25%.

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Page 51

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

12 Analysis of total resources expended

Analysis of total resources expended
Staff costs Depreciation Other Total
2024 2024 2024 2024
£ £ £ £
Charitable activities:
Bus costs 62,998 - 1,077,548 1,140,546
Teaching costs 12,290,718 262,715 1,327,913 13,881,346
Welfare costs 170,580 72,915 1,487,135 1,730,630
School premises 596,052 1,646,494 1,139,581 3,382,127
Other premises 153,717 - 177,208 330,925
Support costs 1,661,363 - 475,022 2,136,385
Bursaries, grants, awards and prizes - - 1,209,633 1,209,633
14,935,428 1,982,124 6,894,040 23,811,592
Governance costs - - 64,909 64,909
Costs of generating funds:
Marketing and publicity 217,973 - 183,848 401,821
Self-financing activities - - 736,445 736,445
217,973 - 920,293 1,138,266
Other resources expended:
Taxation of subsidiary - - - -
Total resources expended 15,153,401 1,982,124 7,879,242 25,014,767
Staff costs Depreciation Other Total
2023 2023 2023 2023
£ £ £ £
Charitable activities:
Bus costs - - 1,035,869 1,035,869
Teaching costs 12,471,921 245,116 1,237,532 13,954,569
Welfare costs 134,827 36,231 1,389,148 1,560,206
School premises 565,153 1,424,696 1,134,469 3,124,318
Other premises 150,040 - 189,352 339,392
Support costs 1,432,863 - 473,793 1,906,656
Bursaries, grants, awards and prizes - - 1,218,881 1,218,881
14,754,804 1,706,043 6,679,044 23,139,891
Governance costs - - 64,683 64,683
Costs of generating funds:
Marketing and publicity . - 216,892 216,892
Self-financing activities - - 1,479,973 1,479,973
- - 1,696,865 1,696,865
Other resources expended:
Taxation of subsidiary . . - -
Totalresourcesexpended 14,754,804 1,706,043 8,440,592 24,901,439

Page 52

Docusign Envelope iD: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

13 Transfers 2024 2023
£ £
From Revenue fund to:
Capital reserve 1,225,867 1,150,867
Restricted fund transfer 317,573 -
Designated bursary grants and allowances 793,436 2,161,664
Net transfers from Revenue fund 2,336,876 3,312,531
From Endowed to Designated funds:
School contribution to bursaries paid from endowed funds - -
From Restricted to Designated funds:
Designated bursary grants and allowances - 27,316
From Self-financing to Designated funds:
Assettransfers - 29,639

Page 53

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024 ———

14 Tangible fixed assets
Group: Assets in the Freehold Furniture Computer Sailing
course of land and and Ground Motor and a-v boats and
construction buildings fittings equipment vehicles equipment equipment Total
£ £ £ £ £ £ £ £
Cost or valuation
At 1 September2023 1,625,841 31,199,342 15,229,781 2,412,622 554,986 4,595,461 29,477 55,647,510
Additions 1,398,487 - 361,229 34,447 229,009 60,198 - 2,083,370
Reclassification (1,832,565) - 1,753,924 23,417 - 55,224 - -
Disposals - - - - - - - -
At 31 August 2024 1,191,763 31,199,342 17,344,934 2,470,486 783,995 4,710,883 29,477 57,730,880
Depreciation
At
1 September2023		 - 8,077,590 8,995,628 1,865,942 469,455 4,125,660 29,476 23,563,751
Charge forthe year - 504,772 957,259 184,463 72,915 262,715 - 1,982,124
Disposals - - . - - . - -
At 31 August2024 . 8,582,362 9,952,887 2,050,405 542,370 4,388,375 29,476 25,545,875
Net book value at 31 August 2024 1,191,763 22,616,980 7,392,047 420,081 241,625 322,508 1 32,185,005
Netbookvalueat31August2023 1,625,841 23,121,752 6,234,153 546,680 85,531 469,801 1 32,083,759

Freehold land and buildings includes land at estimated market value on 1 September 1979 of £435,000. Buildings include assets valued by the Governors as at 1 September 1979 at £2,400,000 for insurance purposes. The assets of the subsidiary undertaking include a property valued at £325,000 in 1986, which had a historic cost of £61,742. . On transition to FRS 102 in 2015 the group adopted the transitional rules to treat valuation as deemed cost. No depreciation has been charged on land and buildings of £2,674,234 (2023 - £2,674,234).

Page 54

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

14 Tangible fixed assets (continued)

Parent: Assets in the Freehold Furniture Computer Sailing
course of land and and Ground Motor and a-v boats and
construction buildings fittings equipment vehicles equipment equipment
£ £ £ £ £ £ £ £
Cost or valuation
At 1 September 2023 1,535,012 24,127,285 13,411,354 1,959,388 535,209 3,929,148 29,477 45,526,873
Additions 1,323,961 . 345,483 - 229,009 26,236 - 1,924,689
Reclassification (1,737,923) - 1,721,837 10,967 . 5,119 - -
Disposals - - - - - - - -
At 31 August 2024 1,121,050 24,127,285 15,478,674 1,970,355 764,218 3,960,503 29,477 47,451,562
Depreciation
At 1 September 2023 - 7,804,896 8,404,399 1,424,597 449,678 3,515,753 29,476 21,628,799
Charge for the year - 451,734 897,521 114,581 72,915 200,633 - 1,737 384
Disposals - - - - - - - -
At 31 August 2024 - 8,256,630 9,301,920 1,539,178 522,593 3,716,386 29,476 23,366,183
Net book value at 31 August 2024 1,121,050 15,870,655 6,176,754 431,177 241,625 244,117 1 24,085,379
Netbookvalueat31August2023 1,535,012 16,322,389 5,006,955 534,791 85,531 413,395 1 23,898,074

Freehold land and buildings includes land at estimated market value on 1 September 1979 of £435,000. Buildings include assets valued by the Governors as at 1 September 1979 at £2,400,000 for insurance purposes. . On transition to FRS 102 in 2015 the charity adopted the transitional rules to treat valuation as deemed cost. Included within land and buildings is land of £1,384,234 (2023 - £1,384,234), which is not being depreciated.

Page 55

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

15 Investments

Group:
Managed Other listed Shares in Total Total
funds investments group 2024 2023
undertakings
£ £ £ £ £
Market value
At 1 September 2023 14,222,468 - - 14,222,468 10,309,727
Disposal (89,424) - (89,424) (71,416)
Additions 381,491 - - 381,491 4,106,880
Change in market value 1,402,303 - 1,402,303 (122,723)
At 31 August 2024 15,916,838 - - 15,916,838 14,222,468
Historical cost 13,698,652 . . 13,698,652 13,406,585
Parent:
Managed Other tisted Shares in Total Total
funds investments group 2024 2023
undertakings
£ £ £ £ £
Market value
At
1 September 2023		 14,222,468 - 2,488,548 16,711,016 12,798,275
Disposal (89,424) - - (89,424) (71,416)
Additions 381,491 - 381,491 4,106,880
Change in market value 1,402,303 - - 1,402,303 (122,723)
At 31 August 2024 15,916,838 - 2,488,548 18,405,386 16,711,016
Historicalcost 13,698,652 - 2,488,548 16,187,200 15,895,133

Holdings of more than 20%

The charitable company directly holds more than 20% of the share capital of the following companies:

Company Country of registration Principal Class Shares held
or incorporation activity %
Subsdiary undertakings
KES Bookings Limited England &Wales Facility hire Ordinary 100
King Edward Vi England &Wales School Ordinary 100
PreparatorySchoolLtd

Page 56

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

16 Debtors

Debtors
Group Parent
2024 2023 2024 2023
£ £ £ £
Fees 68,607 64,914 14,637 22,044
Other debtors 51,880 139,857 24,045 134,309
Amounts owed bygroup undertakings - - 67,426 7,289,744
Prepayments 595,119 555,422 434,772 455,511
Accrued interest receivable - P -
715,606 760,193 540,880 7,901,608

Amounts owed by group undertakings are unsecured and repayable on demand. The interest rate charged on the loan is 1.5%. In the parent entity an impairment of £7,908,059 has been made to the amounts owed by group undertakings.

17 Creditors: amounts falling due within one year

Group Parent
2024 2023 2024 2023
£ £ £ £
Amounts owing to suppliers 497,531 906,921 430,364 801,245
Fees in advance 2,302,443 568,573 1,992,935 568,573
Taxation and social security 21,994 17,902 21,994 17,902
Other creditors and accruals 722,117 1,000,536 287,312 752,521
3,544,085 2,493,932 2,732,605 2,140,241

Page 57

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

18 Creditors: amounts falling due after more than one year

Group Parent
2024 2023 2024 2023
£ £ £ £
Other creditors 214,610 202,642 166,410 159,242
Fees in Advance 5,195,660 - 4,719,209 -
5,410,270 202,642 4,885,619 159,242

Included in other creditors due after more than one year are the following balances which are due after more than five years:

Group Group Parent Parent
2024 2023 2024 2023
£ £ £ £
Returnable deposits 58,650 52,798 39,050 38,198
Financial instruments
Group Parent
2024 2023 2024 2023
£ £ £ £
Carrying amount of financial assets
Equity instruments measured at fair value 15,916,838 14,222,468 15,916,838 14,222,468
Equity instruments measured at cost less
impairment - - 2,488,548 2,488,548

19 Financial instruments

Page 58

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

20 Allocation of net assets

Group: Other
Fixed net assets/
assets. Investments (liabilities) Total
2024 2024 2024 2024
£ £ £ £
Endowed funds - 3,948,657 - 3,948,657
Restricted funds - 3,290,418 1,576,732 4,867,150
Unrestricted funds 32,185,005 8,677,763 (1,184,553) 39,678,215
32,185,005 15,916,838 392,179 48,494,022
Comparative Other
Fixed net assets/
assets Investments (liabilities) Total
2023 2023 2023 2023
£ £ £ £
Endowed funds - 3,448,226 - 3,448,226
Restricted funds - 3,290,418 915,879 4,206,297
Unrestricted funds 32,083,759 7,483,824 (1,942,406) 37,625,177
32,083,759 14,222,468 (1,026,527) 45,279,700
Parent: Other
Fixed net assets/
assets Investments (liabilities) Total
2024 2024 2024 2024
£ £ £ £
Endowed funds - 3,948,657 - 3,948,657
Restricted funds - 3,290,418 1,576,732 4,867,150
Unrestricted funds 24,085,379 11,166,311 (1,280,976) 33,970,714
24,085,379 18,405,386 295,756 42,786,521
Comparative Other
Fixed net assets/
assets. Investments (liabilities) Total
2023 2023 2023 2023
£ £ £ £
Endowed funds - 3,448,226 - 3,448,226
Restricted funds - 3,290,418 915,879 4,206,297
Unrestricted funds 23,898,074 9,972,372 5,471,759 39,342,205
23,898,074 16,711,016 6,387638 46,996,728

Page 59

Docusign Envelope ID: 1B915308-1082-4116-9F45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

  1. Endowed funds
Group and parent Scholarships Prizes and
& bursaries other funds Total
£ £ £
At 1 September 2023 3,412,418 35,808 3,448,226
Incoming resources 159,749 - 159,749
Investment gains/(losses) 340,682 - 340,682
Resources expended 2 - a
Transfers - -
At31August2024 3,912,849 35,808 3,948,657

These funds were set up by individual donors. Each fund is allocated its proportion of the investment income and bears its own expenses.

22 Restricted funds

Group and parent

Group and parent
KES Scholarships Prizes and
Foundation &bursaries other funds Total
£ £ £ £
At 1 September 2023 1,080,188 2,580,632 545,477 4,206,297
Incoming resources 50,946 263,426 26,511 340,883
Resources expended (12,997) (281,550) (23,465) (318,012)
Investment gains/({losses) . 320,409 320,409
Transfers 113,924 203,649 - 317,573
At31August2024 1,232,061 3,086,566 548,523 4,867,150

The KES Foundation is a restricted income fund to provide additional fee support over the long term primarily from legacy funds. In accordance with the terms of the Foundation its administration costs are met by the School.

Page 60

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486COOCAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

23 Designated funds

Group and parent: Foundation Self-
scholarships Capital financing
& bursaries reserve activities Total
£ £ £ £
At 1 September 2023 1,154,487 28,915,222 8,845 30,078,554
Incoming resources 29,942 - 790,796 820,738
Resources expended (948,654) - (736,445) (1,685,099)
Transfers in 793,436 1,225,867 : 2,019,303
Investment gains and losses 771,355 - - 771,355
At 31 August 2024 1,800,566 30,141,089 63,196 32,004,851
Transfers
into the
Capital Reserve		 represent £225,867 (2023 - £225,867) in respect of fixed
asset
replacements and £1,000,000 (2023 - £925,000) in respect of the continuing development programme. This
programme is reviewed on a regular basis to ensure ongoing total Capital Reserves are consistent with our
updated ten-year strategic plan forthe Schools
24 Revenue fund Group Parent
£ £
At 1 September 2023 7,546,623 9,263,651
Net incoming resources 2,465,617 2,949,147
Net transfers (2,336,876) (2,336,876)
Actuarial gains/(losses) on defined benefit pension schemes (52,000) (52,000)
Impairment of intercompany - (7,908,059)
At31August2024 7,623,364 1,915,863

25 Pension commitments

King Edward's is an admitted body to the superannuation scheme operated by the Hampshire County Council, and King Edward's and KES Prep participate in the Teachers' Pension Scheme. Both of these schemes are defined benefit pension schemes. The Schools also operate a number of defined contribution pension schemes.

Page 61

Docusign Envelope ID: 1B915308-1082-41 16-9E45-DC8486CO0CAE KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

25 Pension commitments (continued)

(a) Hampshire County Council Superannuation Scheme

The Local Government Pension Scheme Regulations require a full actuarial valuation every third year. This is to establish that the Hampshire Pension Fund can meet its liabilities to past and present contributors, and to review employer contribution rates. The last full actuarial investigation into the financial position of the Fund was completed at 31 March 2022 by Aon Hewitt Limited. The valuation at 31 March 2022 showed that the Fund's financial position had improved since the previous valuation at 31 March 2019 in relation to benefits promised for membership before the valuation date. The value of the Fund's assets was sufficient to cover 98.9% of the value of the benefits earned to date (£7.260 billion) by the Fund's members (that is, a 98.9% funding level).

The actuarial valuation determined that as an admitted body the School's employer contribution rate would increase to 22.3% for the year commencing 1 April 2020.

The following information is based upon the 2022 full actuarial valuation, updated to 31 August 2024 by a qualified independent actuary.

qualified independent actuary.
Principal ActuarialAssumptions 2024 2023
Discount rate 4.95% 5.25%
Rate of increase in salaries 3.65% 4.05%
RPI inflation
CPI inflation 2.65% 3.05%
Pension increases 2.80% 2.80%
The mortality assumptions are based on the recent actual mortality experience ofmembers within the fund
and allow forexpected future mortality improvements. Sample life expectancies atage 65 resulting from these
mortality assumptions are shown below.
2024 2023
Retiring today:
Males 22.0 22.1
Females 24.7 24.7
Retiring in 20 years:
Males 22.5 22.6
Females 25.6 25.7
The allocation ofthe group's share ofthe scheme's assets between categories was:
2024 2023
Equities 55.00% 59.00%
Property 7.00% 6.00%
Government bonds 37.00% 32.00%
Multi Asset Credit 0.00% 0.00%
Cash 1.00% 3.00%
Other 0.00% 0.00%
100.00% 100.00%

Page 62

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486C00CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

25 Pension commitments (continued)

The return on plan assets is: 2024 2023
Interest income on assets 489,000 388,000
Gain/(loss) on assets 377,000 (422,000)
866,000 (34,000)
The reconciliation offunded status to the balance sheet is: 2024 2023
Fair value of assets 10,119,000 9,378,000
Present value offunded defined benefit obligation (9,067,000) (8,668,000)
Less asset cap (1,052,000) (710,000)
The movement in fair value of assets is analysed as: 2024 2023
Opening fair value of assets 9,378,000 9,519,000
Interest income on assets 489,000 388,000
Remeasurement gains/(losses) on assets 377,000 (422,000)
Contributions by the employer 155,000 145,000
Contributions by participants 51,000 50,000
Net benefits paid out (331,000) (302,000)
10,119,000 9,378,000
The movement in present value offunded defined benefit obligations is analysed as:
2024 2023
Opening defined benefit obligation 8,668,000 9,187,000
Current service cost 141,000 162,000
Interest expense on defined benefit obligation 451,000 375,000
Contributions by participants 51,000 50,000
Actuarial (gains)/losses on liabilities 87,000 (804,000)
Net benefits paid out (331,000) (302,000)
9,067,000 8,668,000
Amounts recognised in the Statement of Financial Activities are as follows:
2024 2023
Employer service cost 141,000 162,000
Financing cost (38,000) (13,000)
Amounts included in charitable activities expenditure 103,000 149,000
(Gains)/losses arising on scheme assets (377,000) 422,000
Liability (gains)/osses 87,000 (804,000)
Less: asset cap 342,000 378,000
Total unrealised (gain)/loss perSOFA 52,000 (4,000)
Total (gains)/losses 155,000 145,000
Page63

Docusign Envelope ID: 1B915308-1082-4116-9E45-DC8486CO0CAE

KING EDWARD VI SCHOOL SOUTHAMPTON NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

25 Pension commitments (continued)

There were pension contributions outstanding at the year end of £18,706 (2023: £30,736) in respect of this scheme.

(b) Government's Teachers Pension Defined Benefits Scheme

King Edward's and KES Prep participate in the Teachers’ Pension Scheme (‘the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,341,305 (2023: £1,374,897) and at the year-end £nil (2023: £nil) was accrued in respect of contributions to this scheme.

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

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the ‘greater value’ benefits for groups of relevant members.

From 1 February 2024, the School began a phased withdrawal from the TPS. Employer pension contributions for teaching staff remaining in the TPS are capped at a specific percentage of pensionable salary, with any difference from increased rates addressed through an adjustment in employee salary. Under the phased withdrawal, existing members can stay in the TPS until they leave employment. If they opt out of the TPS, the School provides contributions to an alternative defined contribution pension scheme along with additional funding for life assurance, group income protection schemes, and any related administration costs.

New teaching staff joining the school from 1 February 2024 are only eligible to participate in the alternative defined contribution scheme.

The pension charge for the year includes contributions payable to the schemes, details of which can be found in note 8. There were pension contributions outstanding at the year-end of £39,168 (2023: £34,657).

(c) Other Defined Contribution Schemes

King Edward's and KES Prep also contribute to other defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. The pension cost charge represents contributions payable by the group to the funds. The pension charge for the year includes contributions payable to the schemes, details of which can be found in note 8. There were pension contributions outstanding at the year end of Nil (2023: £Nil) in respect of the above schemes.

Page 64