Docusign Envelope ID.. 05E4D67E-DA86486A-9493-604F69D1 EFAF Company registration number: 04205579 .Charily number.. 1090412 TRUSTEES, REPORT AND FINANCIAL STATEMENTS. FOR THE YEAR ENDED 31 MARCH 2025 LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) *AEHA7J49' 1911212025 COMPANIES HOUSE #78 A35 MENZIES BRIGHTER THINKING 0￿U519n Envglope ID.. D5E4D67E-DA86486A-949&604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) CONTENTS Page Ref•rence and admlnlstratlve detalls of the company, Its Trusts•s and advlsers Tru*t•••' r•port 2-24 Independ•nt audltors. report on the fln•n¢lal statements 25-27 Ststsm¢nt of nnanclal activitles 28 Balanc• sheet 29 Statement of cash flowi 30 Notss to the Ilnan¢lal 8tstements DoCU￿n Envelope ID.. DSE4D67E-DA86486A-9493404F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES ANDADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Mr P Robinson Mr G Hipple Ms H Warner Mr S Green Mr F Negro Company reglstered Dumbor 04205579 Ch•rlty r•gl8tsr•d numbor 1090412 Regl8ter•d olfice 9th Floor 10 Exchange Square Pnmrose Street London EC2A 28R Company Secretary Mr J Jackson Chl•f •x•cutlve offlcer ,Mr J Jackson Independent audltors Menzies LLP Chartered A￿OUntants Magna House 18-32 London Road Slaines-Upon-Thames TW18 4BP Bankers Lloyds 8ank PIC 83 Clarence Street Kingslon upon Tharnè8 Surrey Kr1 1RE .Sollcltorn Ashfords LLP 1 New Fetter Lane London EC4A 1AN Page I Oocustgn Env8lope ID.. DSE4067E.OA86486A.9493404F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 CHAIRMAN'S INTRODUCTION The Dutch historian Rulger Bregman talks about needing "a new kind of ambition, not for status, or wealth, or fame, bul for integrity, courage. and public seryice. and ¢iles examples from Ihe past where small groups of people true lo this ambition such as the slave trade abolilionists or suffragettes have changed the wodd for the better. The London Grid for Leaming Trust whilst sharing these tdeals is highly consclous of ils more modest place in the world and likely impact. Nonetheless as a charity operats'ng in a highly competitive commeraal environment rt is P￿asing lo report that either because of the regard for the services and products the Tiu$l offern or because the values and beliets il $land$ for chimes with those shared by ils customers, it has during the last 12 months continued to grow and prosper both in tems of geographical reach and range of services provided. Last year I wrote about getting some ol the key foundations in place $u¢h as owning ils own fib￿ nelwork. This has now allowed the Tnjsl lo continue lo transform from a commissioner of services which simply aggregated demand to purchase servi￿3 from other5 to become a genuine Inlemel Serviix Provider and as $u¢h offer an even richer Sulle of SeN1￿$ whilst maintaining a light grip on costs and therefo￿ prices. Gradually too the Tru$l is becoming a Nats'onal Grid for Learning wilh more $¢hools and Multi Academy Tru$l$ from a¢ro$s the UK joining the LGIL famly during 2024125, Whilst time and effort hove continu8d lo be devoted lo the whol8 range of products that schools arld pupils need the ￿re focus of keeping children safe through the safeguarding and cyber 5eGurity lealures ol our neI￿ork has remained at the fO￿front of the Trust's mission. At the same ts'me the public value aspects of LGIL's work such as the Free School Meals Ellgibllity Checker and playing a central part In the coordination of School admissions have continued lo define our work. As always, the external environment remains challenging and the Trust is keenly conscious of Ihe financial and other demands this Pla￿ on our customers. Helping school¥, to navigate these challenges wlll continue lo be a priority for LGIL. Finally, I would Ilke to thank the school's community lor Iheir loyalty and 8UPPOrt during the la81 year And to thank the Trust's staff for their professionali%n, commitment and dedication to our endeavour. Paul Roblnson Chalrnian, London Grld for L•arnlng Trust Page 2 Docusign envelope ID.. D5E4D67E.DA86486A-949>604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 CEO'8 INTRODUCTION l am delighted to report that LGfL is supporting a record number of schools and MATS across the country. LGfL won the prestigious British Education Supplier Association 18ESAI award for be81 IT Support Organisalion and was "highly commended" by BESA for the Safeskills ￿SOUl￿. LGfL has now been a winner, or a finalist, for over 60 industry awards Sin￿ 2016. LGfL's financial position has strengthened despite the difficult eo)nomi¢ climate. Revenue increased as LGIL conlinued 10 9row nationally. Profilabilily increased due lo lower operating costs. LGfL's pension fund rernainèd in significant surplus LGfL's balance sheet remains fobusl with nel assets over £SM and fixed and inlan9ible assets totalling over £34M. In a diffi￿11 e¢onomic dimate, LGIL remains committed lo saving school$ money. This year LGIL delivered ￿Shable and non-cashable savings estimated al around £8M per annum. The Free School Meals Eligibility Checker identified around £37 M of potential Pupil Premium funding claims wilh nearly £240 M raised since its launch in 2014. This revenue stream is particularly important as any 8ucces$lul Claims a￿ more than likely to be channelled into schools and families faung e¢onomi¢ hardship in areas of $o¢ial and er￿nomiC deprivation. LGfL Lxsnlinues to expand auoss the ￿untry bulldlng a National Grid for Learning INGfLI. Cruoal new customer aquisitions included schools in the North West. Midlands as well as the Home Counties. Mulli Academy Trusts (MATS) and Local Authorit¢es. Reassuringly, ratenlion rate$ remain consistent with prevrous years and there was an increase in felurning cu8tom8r8. LGIL enhan￿d ils secure cloud hosting and transit service Ilhe Supercloudl. Investments included increasing capacity by around thirty pe￿nI. Capacity increases were Complemented by in¢￿8$ed resilience induding the implementation of peering Connections IPNI'S) along with altemalive carrier provision interconnects INNI'81. The enhanced Supercloud ha8 enabled schools and MATS lo consume cloud servi￿$ at unprecedented levels and over a thousand schools received free bandwidth upgrades this year lo ensure they can keep pace with the rapid adoption of doud services and high-qualrty streaming seTrices. As LGfL grows, diversifies ils serVi￿S and transition to a Service Provider there has been a necessary focus on maintaining sufficient ¢apa¢ity and ￿pabilItY lo keep par£ with ¢han9ing needs. LGIL'S inlemal transformation programme (Fil for the Fulurel has been pivotal to Ihal. This year, LGIL has implemented adVan￿d digital and analyti￿1 plalforn8 to boosl produclivily and ensure effective stewardship over a complex and nats'onal infraslruclure. LGfL ￿ntInued lo pione8r in global education technology uso and is responsible for product deployments that are amongst the largest ol their klnd in the worfd. This year LGIL has invested to improve Ihe safeguarding servir*s and products available lo schools as well as enriching its cybetsecurily offer which has led lo a s￿nIfiCant increase in tha level of protection that is afforded lo schools. Finally. l am very grateful for the continued support and trust of all LGfL's stakeholders including schools. MATS. the Board. LGIL Officer5 and partner5. That faith and passion enables LGIL to SU￿SSfUllY continue mission lo advance education. John Jackson CEO LGIL - The National Grid for Learnlng Page 3 Oocustgn Envelope ID.. D5E4067E_DA86486A.9493.604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 LGfL'S ECTIVES LGfL was founded in 2001 to advance educats'on, in particular by providing and assisting in the provision of infomiation and communications technology lo London schools for the benefit of the chIld￿n attending those schools. In 2019120. LGfL's shareholders approved a widening of LGfL's Objects, follo￿ng prior approval by the Charities Commission. The additional objects being.. . lo advance health by assisting in the provision of broadband and other cornmunicalions technology to allow integrated services be￿￿n local aulhorllles and health authorities in the provision of social and other care.. and lo advance community developrnenl by assisting local aUthor￿leS lo integrate se￿iceS through broadband and other Communicat￿n9 technology lo provide services more efficiently and al lower cost to the re¢ipienls of Services particularly the elderly. vulnerable individuals and the disabled. LGIL'S revlsed Objects enable rt lo provide services lo a wide range of beneficiaries across the entire public sector including schools. Mults. Academy Trusls, Coun¢ils, Health Seryices, the PolieA. Housing and Community Services. PRIORITIE LGIL d81ivers its Objeds by focusing on.. - Energising tead)ing and leamlng Ilnduding Ihe provhlon ol reliable broodband 8eTht¢es) Saving schools money Keeping chiklren safe Keeping schools secur8 Promoting wellbeing and Tackling inequality All of these activities are underpinned by LGfL's fibre netsvork, the Nat￿n01 Grid tor Leaming and ts service$ and products Nthich are pa¢kaged together in the LGIL Supercloud. In $8tting out the activilies of the charity The TnJ$le•8 have had regard to the Charity Commi88ion's guKlaneé on Publlc 88nefrt TIE In furtherance of our Objects, LGIL.. - Provides hoh speed and secure conn&¢tivity encompassing mobile and fixed telecommunications infrastructure as well as supporting internel accass and transit to Cloud service providers via public and private peering Delivers a range of educational and technically focused Services spanning. cybersecurity. safeguarding, leaching ond leaming, admissions and curriculum content Commissions supporting services from a range of partnery& induding commercial organisations,. ¢harities and a range of public bodies Cooperates and supports schools. academies arid colleges of further education. other charities, voluntary bodies and slatulory authoritie$, operating in furthefance of the Objects or Similar charitable purposes and assisting them to exchange information and advice P.rocures and enters into contracts to provide services to, or on behalf of other bodies, establishes or acquires subsidiary undertakings, and establishes or takes part in joint procurements. ventures and undertakings Sets aside funds for special Pufposes with a view lo meeling long-temi commrtments or requirement5 Creates and publishes free educational ￿SoUrceS and advi￿ to. all schools, irrespective of vthether they are connected lo LGfL or not and Page 4 Docusbgn Envelope10: 05E4D67E-OA86486A-9493-604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Provid•s hbjh-quality Continuous Pfofes8ional Oevelopmenl {CPDI and resources for School Staff, governors and partners that fosters the innovative use of cutting-edge technologies in the classroom and complements teaching & leaming best Pfaclice. 8TRATEGIC REPORT This Strategic Report gets out LGfL's contribution lo thè advancement of Education over the course of the financial year. This includes key outcomes and perfomance indicators aligned with LGfL's priorities.'- Energising leaching and learning (including the provision of reliable broadband) Saving schools money Keeping children safe Keeping schoo18 Secure Promoting wellbeing Tackling inequallty ENERGISING TEACHING AND LEARNING Since its inception in 2001, the curriculum resources, a5 with the broader technology servic8s portfolio. have been one of the key foundational blocks of the servi￿$ offered to schools and, more than ever, the connection betsY&&n eonlenl, teaching practi￿ (Pedagogyl and technology has never been greater. High speed, rollable ¢onneclivity lo the internet and cloud service providers 18 now a criliGg1 foundats'on for the delivery of a modem. digitally enabled curriculum and management support Service in schools. LGfL upgraded rn0￿ that 200 schools for free as part of its commitment lo ensure schools have capacity to meet their curriculum needs and harness the power of the cloud. As aggregate demand from schools rose. LGIL increased the capacity of ils supe￿l0Ud private cloud by over 300/0 and look steps to diversify its Connectivity lo deliver h￿h availability of core servicEs. Resilient conneclivity is a requirement for all schools lo conslder. LGIL has developed 11$ connectivity se￿ie£S lo schools to enable diverse fibre conne¢livrty and enable real time failover should the primary fibre connection be losl. In a￿a9 where rib￿ has limited. il any availability. LGfL has made use of satellile allematives such as Starfink lo enable continurty of servio. In I￿h1 of th? dizzying pace ol technological change, It is vilal that the curriculum portfolio continues to be adapted, expanded with a Tan9e of innovative conlenl. policy guidelines and tools lo support teaching and leaming, Changing processes. policies and leaching methods to effectively harness digltal devices and materials is a complex undertakin9 and potentially fraught wilh risk to schools. children and teachers. Indeed, it is wmmon for sizable sums of money to be invested in the "adoption" of technology le.g. by purchasing large numbers of devices) bul there is no corresponding change programme lo 'abxirb' the technology into processes, resour￿ management and professional development. In this scenario, the technology add$ r￿$1 bul reduced, if any, value. Therefore. effectively integrating the lalesl digital technology into everyday teathing and leaming requires Ca￿￿1 and focused support lo help evolve pedagogy, which LGIL'S Curnculum Team is well plae£d to provide alongside a growing Tretr￿Tk of lead schools from the EdTe¢h Hubs programme. {http Iledlechhubs.LGfL.neV). Throughoul finanrial year 25. LGfL has partnered extensively with lead praclilioners to ensure the use of technology is precise, purposefvl, and achieves measurable impact for both teachers and leamers. Key ￿$oUr￿$ have been developed, including the PedTe¢h http'.Ilpedtech.LGIL.neV resource hub and the 'Making the Case.. Why EdTech?' guides, which support the development of a holistic Digital Strategy. The LGtL Oigilal Transformation Tool self-assessmenl toolkit https".Ildtt.LGIL.nel has becorne a key start point for an inc*easing number of schools to help secure effective EdTech adoption. This 1$ complemented by an ever*volving staff. training programme that provides aC￿sS lo an extensive calalo9ue of case studies. These studies feature leading praditioners sharing feedback and practical advice on navKJatin9 Ihe Complex issue of Digitsl Slfalegy within their ￿h0o1 OT Multi-A¢ademy Trust. LGIL ongoing partnership with EdTech Uk contsnues to develop a national nehyoth of leading practilioners where sthool Page 5 Docusign Envelope ID.. D5E4D67E-DA86486A-949>604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 leaders and teachers get together lo share best practices ledle¢hhubs.LGfL.netl and disseminate that within a region. These sessions have. been very well received. and they wll remain a key part of LGfL's activity going forward. LGfL has delivered an extensive Continuous Professional Development ICPDI programme for schools. wh¢ch are delivered across a range of subjects, and specialisms which aim to support schools on known challenges relating lo everyday leaching and learning, mental heallh and well-being and efficient organisalional use of digital technology. Many of these programmes are delivered in partnership with key suppliers and highly regarded experts in their field at no cost lo sthools which is another way in which LGIL saves money for schools. other Curriculum Team highlights this year have in¢luded'.- LGIL and EdTechUk hosted the second EdTech Hubs Summrt al Samsung KX in November 2024 wilh over 200 s¢hools in attendanc£ from ac¥oss England A workload reduction pilot looking at how Al can play a role in helping primary, SEND and se￿ndary schools hame$s the power ol Al to help manage workload and improve productivity. A prololype Online School Bank System was Su￿a$s1u1IY piloted with lead school$. This plalforni helps children develop essential flnancial literacy and life 3kllls by allowing them lo manage Ihelr ¢)wn bank accounts and make purchases usin9 0 dedicated school bank card within a safe, secure, school-based environment. Al the 8Err 2025 COnfe￿nCe. LGfL and EdTechUk premiered a pioneenng 'Live Lesson, concei)t. This demonstration Induded INe pedagogical n•rr•lion and Ihe abilrty lo display dose-up video of individual pupils, work progress in real- lime. Consumptlon of the tree curriculum praducls withln the broadband and Supercloud bundle remain$ high. The 8ugythlngs platfo￿￿ is continually evolving. now wrth Al inlegraled into online activibes that allow young children lo interview famous historical r￿Ures. Furthemiore, new features in the Just2easy platform provide an effective ahernalive lo numerous separate. duplicate subscription seNice$ for which many $¢hool$ are still paying. KEY OUTCOMe8 Energislng Teachlng and Learning Estimated Dalty Reach ol LGIL Servlces to Children Teachers and ort staff Peak Intemei Transit Schools Receivin a Flee Bandwidlh U rade standard Connection S eed ol Seconda Schools lo Ihe Inlemet standard Connection speed of Pnmary Schoots to tne Intemet 1.8 Million 160G 189 1Gb 100- 500 MO 100- 300 Mb 99.98 % Average Connection speed ol Speclal Schools to Inteinet Percenta e Availabil- of the LGfL Supercioud Eslimaied Number of Schools Using LGIL'S Bunoieo Curriculum Products Trainin Events Undertaken Dele ates Booke 1300 233 7391 Page 6 Docuspjn Envelope ID.. 05E4D67E-DA86486A-9493-604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 SAVING SCHOOLS MONEY Schools remain under financial strain with inflationary p￿SSUre$, rising salary costs, new ￿gUlatOry burdens (induding the need lo comply with technolo9y slandaf¢J$l and high energy costs as well as supply chain pressures resulting from general economic uncertalnty. LGIL femains focused on helping 8¢hools feduc£ these pressures and protect front line leachlng and learnin9 by providing products and services to schools and MATS that avo￿ incufflng costs, deliver cashable savings, identify potential funding claims as well as offering very compets'live pricing to Schools. In FYE 25 LGfL held its broadband pricing for the 9th year in succession wh￿h is a remarkable achievement. LGIL is able to Save Schools Money due to its purchasing scale encompassin9 thousand5 of schoo15. By leveraging ils buying power and its 51alu$ as a Central Purchasing Body , LGIL is able lo provide schools with a value-added bundle ol critical digital products and sen4i¢e$ for free. Free products indude safeguarding, cyberse¢urily, curriculum content, bandwidth upgrades and nefvvoth ￿nneCtivItY. The resullanl savings lo schools a￿ estimated around £8M per annum. LGIL has rnade it 31raighffoThiard for Schools to identify and track their savings by using the online LGfL Savings Calculator which enables schoo5s lo check how much use is being made of LGfL's freely bundled services & products and lar9et artas where further savings could be made. In addition to savings and cost avoidan￿, LGfL's Free School Meal IFSM} chething gervice identified over £37 M per annum of potential Pupil Premium Funding lor Schools and pgrenls. LGIL'S purchase of 14,000 kilometres of fibre means that savings and cost avoidance are marbled in for years lo come and schools have the potential lo be upgraded up lo 10 Gbps. Owning the fibre allows LGfL lo Shield gchools from unpredictable prlce hik8$ that are impacting telecommunications Pfic88 in the UK. Nearly 200 sthools re￿iVed free upgrades in FYE 25 enabling children to consume high quality conlenl SI￿arned directly from cloud seNices providers. KEY OUTCOMES saving Schools Money Estimaled Llcences & Services Freei Distritsuted to Schools Esiimaied Annual Savin s l Additional Value to Schools Per Annum 1 .4 Million £8 Milllon KEEPING CHILDREN SAFE Filtering the inlernel and monitoring device$ lor inappropriate use is • complex and rapidly evolving challenge. Over the course of the year. LGIL significantly énhanced ils doud filtering seryice ISchoolProlecti to provide effective protection, remediate risks and improve usability. Key advances induded a major overhaul ol the website calegorisation engine to provide greater granularity and ¢onlrol over how websites are classif￿d, whether they should be blocked or not and the introduction of counlermeasures to remediate the risks of Artilicial Intell￿ence. Upgrades were made which prevented undesirable consequences and potential access lo inappropriate content resurtin9 from CloudFlare's rollout of Encrypled Client Hello (ECH). A new dashboard driven internel usage reporting platfonm was deployed which enables schools and MATS lo more easily identify polential inappropriate use of the internet and key trends which may be of concern, LGfL's fillenng platform, SthoolProlect, is now processing billions of web access requests a day rnaking LGfL'8 deployment 1$ one of the largest of. its kind in the wodd. Increased consumption of the filtering platfom ne￿ssitated a significant increase in processing capacity in Ihe LGfL Supercloud. LGfL's work on protecting children through its filtering systems was re￿gnised by the UK Safter Internet Centre (UKSICI with LGIL being only one of a handfvl of organisations to receive Filtering Accredilation. LGfL partnered with SENSO to bolster inlernet fimering with device-based fittering and alerting. This key partnership provides further protection for children by monitoring. how the device is used including inappropriate use of VKleo conferenc4ng and language on the device. Importantly this product was bundled free of change lo all schools who are LGfL customers which saved s¢hool$ money and increased protedion. From a stsnding start the device monitoring product"ha$ been successfully rolled out to over 1.000 schools making it one of the largest and most rapid deployments of its kind in the UK. Building self-awareness and ￿nfiden￿ amongst children to hamess the potential of internet safely and appropriately remains a focus. LGfL has developed its own online system, Saleskills, lo support that vision. In this ffinancial year. Page 7 Docusign Envelope ID.. DSE4D67E-DA86486A-949M04F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Safeskills has been used by over 800 schools with thildren answering over 500.000 questions. Al the BErr Awards 2025 Safeskills wa$ highly ¢ommended in the Wellbeing and Safeguarding Resources category. In addition. LGIL held over 100 training rAiurse$, spanning 21 different courses with over 5,000 bookings being made. Crijcially, LGIL extended ils safeguarding support to governors. LGIL extended rts Safeguarding services and products lo early years settings and parent5 including the development of an Online Safety Audil lor Eady Years and a parent Online Safely Resource. LGIL continues lo provide resources and subject matter experts.se lo schools and national agencies who are tackling extremism. This includes support lo the Department for Education who published a ￿SoUrce for schools called Educate Against Hate which LGIL contributèd to. LGtL continues lo provide advir£ on risk assessment. policy and practical classroom approaches lop tackle radicalisation and LGfL continues to deliver keynoles lo Designated Sale9uarding and Prevent Leads al COnferen￿S across England. KEY OUTCOME8 Kpopino e,hildr•n Saf• Esiimaled Web Requests Filtered Each Da roxlmale Dai Active Devices Indicalive Siles Blocked Each Da Davo Youn Eslimated Uni ue Websites Blocked Indicalive Number ol Qtlesllons Answefed by Chlldren uslng Sale Skllls 2.7 Billion 870,000 240 Million 700 Million C. 500,000 KEEPING SCHOOLS SECURE LGfL prov¢des Schools and MAT'S with a multi layered defensive shield as part of ils Supercloud and fibre broadband bundle. This defence in depth shield includes filtered inlemel connections. murtiple firewalls. 'Oislributed Oenial of Service IDDoS} proteclion, anti-vinjs. ransomware, secure backup, anli-phishing, mall scanning, encrypted file transfer. training and secure ￿mote aexess. Several important changes were made to the routs'ng. and Iransil of schools. ne￿OrK traffic including the deployment of the National Cyber Security Cenlre's Protective DNS sanitising technology to reduce the risk of schools inadvertently accessing inappropriate coTrlenl or siles. Thls year, LGIL implemented Private Netsvorf( Peering Into 119 supe￿l0Ud with global lechnolcgy companles. Peering means schools traffic is not having to IravetBe the internet whith results in a more secure and lower latency connection. LGfL further increased cyber resilience and protection ol its Supercloud by ¢ompleting a migration to world class dalacentres in Equinix. This move provided enhanced facilities and enabled LGfL lo install additional proleclions and safely measures lo maintain service. Exiensive Business Conts'nuity and Disaster Recovery IBCDR) testing was successfully undertaken as part of the move. Importantly, LGIL has partnered with the National Cyber Security Centre {NCSCI and assisted schools in the closure of a number of publicly accessible. vulnerabilities that were highlighted by the NCSC'S Early Wamin9 Servic*. Similarly, LGfL works Closely wrth JANET, schools and MATS to remediate DDOS attad(s to minimise disruption to schools as well as inve8tl9ale alerts which may indicate that credentials have been compromised or there is a nsk ol Significant data exfillration Page 8 Do¢￿sIgn Envelope ID.. 05E4D67E-DA86486A-9493-604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Centrally managed firewalls are a key part of the securrty shleld'thal Is deployed Into Sthools. These pertonn a number of key tasks such as Netr￿Ik Address Translation as well as controlling inbound and outbound traffic flows betsveen the school, LGfL'$ Supercloud and the internet more generally. LGfL manages thousands of firewalls efficiently by using appropriate management and admini$lralive tools. This year. the central management $yslems for firewalls, were upgraded and this system now.allows more advanced ￿portIng and ovtrsighl across the entire LGfL ne￿Ork as well as openin9 UP the use of technologies such as salellite. LGfL extends the protection that it delivers for schools and MATS to end user devices. Industry leading antivirus is Installed on hundreds of thousands ul devices and server5 protecting against advanrAd malware and ransomwaw atta¢k$. LGfL also provides a rna￿vare removal lool lo Schoob. LGIL enhances ils security protection beyond technology counlemieasures to encompass user awarene58. policy advice and best practi￿ toolkits. This includes the provision of phishing simulation and training tools. In the last financial year lens of thousands of fake phishing emails were sent. Each phishing email reports on end user awareness of cyber threats and where Ihere are gaps li.e, the phishing wa$ gucce88full provide training. LGIL loo1$ for $e¢urily a$$urance lesling include vulnerability assessment scans and demand for this 8UPPOrt increased over the course of the financial year. LGIL updated ils advi¢X and guidance to schools in line wlh the DfE's new Cyber Se¢unty Standard$ including LGfL's Elevate Cyber Security Toolkit which was extensively downloaded and training was delivered lo interested schools and governors. Togelher, LGIL'S product and sepi1￿ offerings enable $¢hool8 lo keep pace wllh DfE Technology Slandards and 8VO considerable cost from trying to purcha8e and deploy highly complex 8ecurity technology to meet their needs. KEY OUTCOMES Keeping Schools Secure Estlmate(l Numbef ol Emalls Scanned for Vlrus. Malware and Phishin Approximated Devices Prolecled by LGIL Anli-Ransomware, Anti- Virus Devlce Mana emenl and Anll-malware Indicative Percentage of LG￿ schools Maklng Use ol LGIL'S Vulnerabil- Assessment Tools roximale Devices Securi Mana ement Cloud Eslimalea Volume of Data Securel Backed U b 300 Mllllon 250,000 20% 374 000 500 TD Page 9 Docusign Envelopg ID." D5E4D67E-DA86486A-9493-604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 PROMOTING WELLBEING Schools and Mulli Academy Trusts lac£ increasing workloads and $ignifi¢anl demands on their lime which Is placing the education system under strain. Teachers need.support and LGIL has shared a wide range of freely available materials for promoting mental health and wellbeing induding the award-winning resour¢es developed with Child Bereavement UK which help schools support children. their lamilies and the wider school community dealing with a lamily bereavement. The LGfL Child Be￿a¥ement toolkrt Ihttps'.Ilchildbereavement,LGfL.org.uk) has been updated lo feature support for SEND pupils with advice on how lo support more complex needs in relation to bereavement, with lurther classroom resources in development as part of the ongoing partnership with LGfL . LGfL's ongoing support for the breadth and depth of pressures for undedines our cornmilment to ensuring all members of the school community are able to thnve and reach their polenknal, TACKLING INEQUALI Digital inclusion remains a core focus for LGfL and en¢ompasse$ finanaal support as well as the provision of targeted resources in areas of need such as sUPPOrting children with Special EduGational Needs. LGfL Sets aside support lor 8UPPOrting greater inclusion through the In¢ludED seNio. This team produ￿$ largeled conlenl and resources to support I schools. inclusive practic£ for all learners including new ease studies featurin9 symbol used with the LGIL Widgil resour database. An updated Universal Design for Learning IUOLI CPD resource http'.Iludl. LGfL.nel has been launched, featuring range of Case studies that model effeth.ve indusive practice in action. In addition, a néw resoufce on effective symbol use auoss the curriculum maximises LGtL's investment in the Widgil Symbols database. htlp.'Ilsymbols.LGfL.net. The IncludED team continues lo present al key regional conference$ on effective EdTech use lor inclusion, partnering with local authorities and long-term partners such as CENMAC Icenlre for Motor and Associated communicats.on Handicaps) Much of LGfL's growth continues to be in areas that aré poorly gerved by broadband where sthools have previously baen connected al low speeds. The introduction of high quality, symmelri¢al fibre seNice$ has enabled schools in rural and coastal area8 lo enjoy the Same dlgllal experience as more affluent a￿a$ where hi$lori¢ally g¢hool$ have had higher Speeds. The EdTech Hubs Programme is supporting critical areas ot deprivation, successfully reaching schools in coastal lown8 like Harwi¢h. inner-oty locathons such as Liverpool. and highly populated dislrbcls like Tower Hamlets. This initialive delivers langible levelling-up opportunllie$ by developing vital dlgilal 5ki115 amon9 Students and slaff, and by helpin9 schools leverage the support programme One of LGtL's key servieés is the Free School Meals Eligibility Checklng se￿1￿. Launched in 2014, this application has now idents'fied £240 M in potential premium claims for schools and families in areas of social and economic deprivation. In FYE 25 more than £37M of additional funding was identified. The Free School Meal checker is available al no ¢o$l lo LGIL connected schools and rt is planned lo rollout the Servi￿ nationally in FYE 26 to all schools which could raise MO￿ than £100M a year as well as reducin9 the Costs of thi$ Seryice lo schools. KEY OUTCOMES Tackllng In•quality Pupil Premlum Funding idenlllled for Schools Pupil Premium Funding identlfled slnce the inceplion oTthe Pupil Checker, lo 31 March 2025 £37.000,000 £239 000,000 Page 10 Oocusign Envelope IO". DSE4D67E-DA86486A-9493-604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 PAN LONDON SHARED SERVICES LGIL continues to provide several pan London and wional servi￿6 spanning local government, health and the police which enable efficient and cosl-effective service delivery. Those services include the Pan London Admissions Servicé. tha London Public Services Nehvork, GovRoam and the Free School Meals Eligibility Checker. Loeai Gov•rnm•nt Shar•d s•rvie•s - Appllcatlons lor SellOOI PlaC•S Approxlmate Percentage of Councils Registered for GovRoam Setvice roxlmate A Ilcatlons for Seconda School Places Processed proximate A Iicatlons for Rece tjon scnooi Places 60% 102,000 98,000 THE TRANSFORMATION OF LG LGIL was established as a commissioner of regional broadband to schools Ihal was funded by government through the Hamessing Technology Grant IHTGI. Today, LGfL is a Diversified Cloud Services Provider thai is delivering services as well as commissroning al a record scale. The complex Iransformalion from a government lunded agency lo a commercial. self-suslalning charity has nècessitated fundamental and lar-reaching ¢hange$ lo LGIL. These have taken place over several years but have been critical lo its suNival. LGfL's ability lo adapt ils business model lo meet Ihe needs of schools and ¢uslomers is a contributory factor in achieving hyh levels of customer retention and staying relevant in a highly ¢ompetilive market, FIT FOR THE FUTURE Much of the intemal Iransfornation activity relating lo the change from Service Coinmissioner lo Servi¢* Provid¢r is being delivered via LGIL'S Fll for the Future programme along with the considered expansion of the LGIL lechnical and sep4i¢e delivery leams such as the Safeguarding, Cyber8ecurily and Cloud Cenlres of Excellenc4. A critical part of LGfL's long le￿ success is the development and deployment of digital plalfoms to boost PToductivty and support an effioenl and effective service lo schools, MATS and Local Aulhoriknes. Crilie41 investment indudes the implemenlalion of a modem Customer Relationship Management ICRM) Syslem which underpins sales management, communication, servir2 management along with a modern helpdesk improved websrte and finanoal system The deployment of technology cannot be done in isolation from pro￿$Se$ and culture. Therefore, in parallel lo the deployment of.IT solutiong, LGIL has continued lo review its proc¥55es and re-engineer them as new digital platform8 are introduced. The CRM system also has a rang8 of inte9ralion tools enabling bi4ireclion81 updates ol data behveen systems wllhout the need lo rekey informalion. The advanced use of data and business intelligence tooling is a key comerslone of LGIL, Having critical and appropriale infornalion at the fingertips ol all staff drives efficient and effective stewardship of operatio.ns. finance and our partner servic£s. LGfL's ability lo harness the power of data has been enhancEd by the advanced use of analylical dashboards thal proV￿e realtime performan￿ information. LGfL has developed ils own monitonng systems to meet the specific needs of schools and MATS. This has proven invaluable in keeping unplanned outsges lo a minimum and for identifying Irends of conc£m8 that requlre intervention. Modem finanryal systems 'provide support across LGtL to ensure that accurate dala. is available for forecaSt￿¢g, profit and loss, cash flow and balance sheet management. Several improvements have been introduced in the Finance Team with respect lo lechnology and processes this year ￿SuItIng in improved efficiency and oversight. For example, billing be￿en LGfL and rts largest supplier. VM02 has been simplrfied lo avoid a large amount of technical accounting adjustments needing to be made each month. As planned, LGfL inlroduc£d new. Asset and Contract Management modules wrthin the finan￿ system that have enabled automation of key tasks such as depreciation and deferred income management. As part of ils Frt for the Futu￿ programme. LGIL has C￿llabOrated extensively with partners lo improve oversight and servi management as well as addressing conorns with the quality of infomation held on partner systems. Extensive work has been undertaken lo integrate. where possible, IT syslems to enable the Seamless exchange of infomialion betsveen $yslems and workflow automation. Page11 DOCu￿9n Envelope ID.. DSE4067E.DA86486A.9493-604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 WORKFORCE TRANSFORMATION LGfL reco9nises the need for a modem and motivated workforce that has the skills and ¢apa¢ity lo meet the changing and growing demands of a national provider. .The pandemic has ￿sUlted in fundamental changes in wothforce and accommodation needs with a general move lo hybrid working. LGfL has embraced this change which has contributed to continuing high levels of employee retention. The expansion in services has led to planned headcount increases and changes in the ￿MpoS￿10n of the workforce. This is complemented by the prudent and targeted use of contingent labour lo meet peaks and troughs in demand as well as project demands. This is sel lo continue as LGIL continues to invest In building a strong and sustainable produ¢X and service5 Portfolio lo meet.the needs of schools and MATS. As part of its workforce .tran$fomalion has been a review of LGfL's Defined Benefit Scheme and LGfL will dose its ¢￿￿ent Scheme to new members and move .10 a Defined Contribution Stheme. RISK MANAGeMENT The management and mitigation of rijk 1$ a key lo¢u$ lor LGfL 8nd.ever more pressing in a climale ol uncertalnly. LGfL has embedded risk management and mitigation in all aspe￿$ of its work and key areas of ￿nCeM a￿ ￿pOrted to the Board along wilh mitigating action8. The following seclions provide an updated consideration of the major challenges and nsks Ihal LGfL faces. Financial risk is addressed in Ihe finance sectlon laler in this report. The key nsks that LGIL is currenlly managing are related lo-. Mitlgating cybersecunty th￿at5 Regponding effe￿IvelY to panclemi 8rexil and trade relations Market throats Managing gr0￿h sustainably Managing inflationary pressures Ensuring a posllive organisational climate. Keeping pace with technology and mart(et change Ensuring supply chaln resllion Implemented effective Disastèr Recovery (DR) planning and simulation MITIGATING CYBERSECURITY THREATS Cybersecurity is a critical risk for all organisalions. Recent high-profile attacks have caused significant financial loss and operalional disruplion lo affe(aed organisalions as well as their customers. LGfL recognises that the￿ 1$ continuing activity and efforts to disrupt schools and other bodies through largeled activities. including spamming, dislnbuted denial of seNice attacks IDOOSI. ransomware attacks, phishing, impetsonalion, credential theft, mahvare and viruses. LGIL has. pul in place a range of proaclive remediations lo protect it5 seNios along with schools and MATS. LGIL is accredited ft>r Cyber Essentials Plus which is the. highest level. Security risk management extends to LGfL's supply chain and ils important lo ensure that b￿a¢he9 and vulnerabilities are monitored and remediated appropriately. LGfL has made important changes lo its key ¢ontracts induding speafic security Complian￿ and ￿portIng standards. New services are now being offered lo schools this year which will provhle further help and support as set out in this report. This will indude proadive alerting lo schools when LGfL proactively recognises vulnerabilities. LGfL is also planning to invest substantially in both ils school equipment and the Supercloud to ensure they have. the enhanced protection they require. Page 12 Docu%gn Envglope ID: D5E4D67E-DA86486A.949&604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 RESPONDING EFFECTIVELY TO PANDEMICS The worl(hvide COVID pandemic severely disrupted the global economy. Massive public boFrowing and spending continues lo negalively impact the e¢onomi¢ outlook with underlying inflalionary pressures driving UP ¢ost$ for all suppliets. LGIi has taken steps lo increase resilience against a lulure COVID-19 event and related Supply dysfunction by diversifying its partners and broadening the range of products available to rneef seNice needs and adopting a conscious strategic move away from supplier monopolies along wlh working to ensure greater self-suffiGiency in key functions and services. BREXIT AND GL08AL TRADE RELATIONS The contlnuing unc£rtainly with respect to the UKS trading arrangements with the rest of the world remains a. oincern with no obvious resolution in sight. The situation has further deslabilised compared lo the previous finanaal year due lo the unpredictable trade policies of the US govemmenl. For the reasons sel out earlier in this report, LGIL'S ¥upply chain is slrenglhening with our major supply partners already well advanced in terns of conlin9ency plannin9. 'Neverthe￿S5. the are likely to be continuing swings in currency exchange rates that will adversely affect pri￿8 and drive-up costs to schools. LGIL 19 miligaling this impo¢t by purchasing at ¥cale and ensuring that there is an effective procurement ￿paCitY at the heart of LGIL. In the next financial year, LGIL wll seek lo build up an appropriate level ol stock of key equipment which will enable $ervirA$ lo keep running in the evenl of major supply chain disNplion. MARKET ThREAT8 . LGfL needs to ensure that it continually innovates its products and servie£s to ensure they remain competit￿Ye and offer value for money. Low-eost allemalive lelecommunicalions supply such as Fibffj to the P￿rnise {fftpl and contended G￿abYte Passive Oplical Nehvork {GPONI are a key competitive risk to LGIL and a consideration for LGIL when il was reviewing whether lo purchase fibre from Virgin Media. The market threat from lower cost conneclivrty is growing as a S￿nifIcant amount of government and private sector investment is going into building out allemalive fib￿ netrNork$ and upgrading consumer nehvoth$ which 18 challengin9 the duopoly of provision from Virgin Media and 8T. All Nets are now beneflttlng from access lo BTS duGt$ via Physical Infrastructure AcLess IPIAI agreements whlGh enables them lo avoKI significant capital investment in avil works, such as trenchin9 and lunnelling , lo route fibre c8bles. Use of PIA'S mean8 that All Net5 can now deliver very c05t-effeclive connectivity to cuslomars, particularly in a￿aS where there are potential large numbers ol residential customers. Satellite connectivity is becoming a mainstream allernalive connectNily oplion lo schools with the emergence of platfoms such as Sladink. These offer reasonable connection speeds and are particularfy ImpaGtlul in rural areas where the CA)Sts of expanding backhaul fibre to remote locations is particularly expensive. LGIL'S rlsk mltlgation 19 to focus on provtdln9. a wider and relevant dlgital 8ervice offering to schools dellverlng Increased value from its bundled products and 5ervi¢es as opposed lo cornpetsng in a race lo Ihe bottom on price. This year. LGIL has built further market differentiation by building a stronger Inlernel servi￿ Provision {ISPI lo schools and MATS that most of its compelrtors will struggle to replicate as they lack the Scale ol LGfL. Continuing product innovation remains a key risk miligalion. LGIL is therefore developing a broader portfolio of connectivity products beyond leased lines to encompass lower cost allernalives lo leased lines including satellite and fibre to Ihe premise as opposed to offering only one size fits all opts'on. These include the safeguarding products and services described earlier. LGIL conkn'nues to explore allemalive telecommunications partners to evaluate whether they can support LGIL whe VMo2'$ nets1￿rk is not'available or there are technical reasons why an altemative provider makes sense. The introduction of new procurement ￿gUlationS a180 offers opportunities lo engage th& martel differently and this will be ath.vely explored in the years ahead. MANAGING INFLATIONARY PRESSURE3 Inflation has been volatile and remains high, 'This has been due lo a wide variety of evènts including higher ener9y costs, the war in the Ukraine along with US policy shifts. These exlernal events have had negaknve impacts on Ihe UK economy and all businesses generally drsving up prices: LGIL'S focus on effiuency, inc*eased product optimisation, contract management as well as generaling value for money. from ils supplier base are. importanl miligalions to inflationary pressures as well as the addition of new products and services lo increase the value ol what LGfL offers schools at no addth'onal cost. Wherever possiblè. LGfL seeks lo avoid contracts Whe￿ RPI inffeases are automatically assumed and takes steps to redu￿ potential cost pressures during contract renewal negotiations. Page 13 Docusign Envglope ID.. D5E4D67E.OA86486A-949>604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 NAGING GRowfH LGfL is grown9 its Customers and diversifying its products which is inevitably bringing organisatsonal pressures including the urgent and ¢ontinuing need to m¢yJernise LGIL as an organisalion and remain both efficient and a high productivily organisats'on. As sel out earlier in this Slralegi¢ Report. LGfL's Fil for the Future programme 1$ crrtical to supporting and managing LGfL's growth by transforming pro¢•$$es, systems and worklorce Induding the wider use of next generation digital plattonns indudin9 CRM and efficient e-channels. Growth in LGfL's ¢￿verage and widening ol LGfL's dlred servic£s and produ￿$ requlres LGfL lo recruit additional staff to meet identified needs in those areas including enabling functions such as finance, business development .and sales alon9side Increased head¢ounl in key are8s such as safeguarding. LGfL has also mitigated the ¢halleng8$ of gr0￿h by making use of contingenl labour and subject matter. experts, particulady for projects and new developments whe demand$ are variable. ENSURING A POSITIVE ORGANISATIONAL CLIMATE High performance organisations have a positive and engaged Workfor￿ and LGIL continues lo reap the benefit of a positive working Gulture wrth low levels ol staff lumover. The move lo a modern HQ has benefitted LGIL, including closer t￿5 with sGhool$, Councils and partner organisalions and Provided • world dass operating facility for slaff. This year the focus ha¥ been the continuing empowement of indivhduals and leams lo develop their services and ¢oa¢hing the organisalion lo improve their perf0mlan￿. Continuous Improvement and learning is also applied to nuanc* and improve processes resulting in small steps to big change. The adoption ol a flat organisational Structu￿ means the￿ is a maximum 014 levels induding the CEO. Looking ahead. LGIL will continue to keep its organisalional slrudure under review lo ensure that it ha$ sufficient capacity to meet demand and individual staff mernber3 have a $u818inable portfolio of woth. Over the last year, additional headcounl has been added to teams at a sustainable le rale and growth will continue in the next financial year and beyond. KEEPING PACE WITH MARKET & TECHNOLOGY CHANGE LGfL is in a technology market where innovation and change are constant. As such il is vital to ensure that products and servic*s remain Current and relevant in a highly competitive area. There is a risk that disruptive and fasl-moving changes in new technology and assoaated serVI￿S could render services obsolegcent or expensive which would create issues with customer ￿tentIon. Work is already Unde￿aY lo ensure that LGfL support these changes and deliver the inleroperabllity and fl8xibilily that s¢hools need. In doing $0, Ihere will be ongoing challenges and a constant balancing. act for LGfL and ils delivery partners lo manage betsveen providing a secure netsvork and the need for more flexibility in schools and MATS. Key priorities include improvemen18 to produ¢t$ that Support the increased use ol doud serviL*5 and help s¢hool$ mitigate the impacts on. learning from the global pandemic. LGfL will also invest lo modemise other key platform5 this year that will enhance its safeguarding credentials to schools. Continuing slrategic investments in Safeguarding. inlraslructure. cybersecurity and networks are planned to enable LGIL Io continue operating al the forefront of innovation and practice in the education market. LGfL is ￿refullY assessing the key plalfomis that will underpin the next generation of servi￿$ lo schools. SUPPLY CHAIN RESILIENCE With a $ub$tanlial .proportion of current services oulsour¢ed to exlemal partners there ￿MaInS the risk that one of these could fail, particularly in the current climate. In mili9alion, LGfL. undertakes regular review meetings with suppliers. Finanual checks through Dunn & 8rad$treel a￿ conducted regularly and. are part of the assessment pro￿S5 for major new conlracl awards. LGfL has also enhanced its visibility and"oversight of outsoUr￿d s¢Ni¢es and has a much deeper understand of them. To improve resilience in ils supply chain, LGfL has expanded rts commercial ecosystem. This has delivered a significant broadening of products and capabilities available to LGIL as well as reducjng the exposure to one supplier. The expansion of LGtL's partnerships has proven invaluable in driving innovation into the serVI￿S and subscriptions that LGfL offers. It also provides LGfL with allemalive supply should partners fail to rneel the standard$ that LGfL requires and cornpelition for new business. The Cfealion of a Oigrtal Transfomialion Partner NelM)th has been a particular success with. close lo 100 Small and Medium Sized Enterprises ISMEs} working closely LGIL on supporting schools in London and beyond. Over Page 14 Do¢usign Envelope ID.. D5E4067E-DA86486A_9493-604F69DIEFAF LONDON"GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 the course of the next financial year, LGfL will be taking continuing steps to ensure that effective governance and application if best pracllces are applied lo the key contrads for VMo2 8nd Adept given the cnlical role they. have in shaping the perc£plion and success of LGfL delivered services. DISASTER RÉCOVERY PLANNING AND SIMULATION There is significant and heightened risk of dtsruption to ServI￿S caused by a range of underlying challenges including Cyberthreals and global economi¢ instability. Fundamental chaiiyes in global supply chains are also occurring as a result of increasin9 Merger and Acquisition activity in the UK Education Market which have the polenlial lo create uninlended consequ&nces such as massive price increases. In response, LGIL has changed its platforms and services including transition to wortd class dalacenlre facilities along wlh the development of its Supercloud and assocaaled peering lationships. As part of these key changes there has been a clinlinuing focus on modelling future events and working Ihrough remediation strategies lor these events. Thi9 modelling has included. lor example, a lolal failure of a dalacenlre. the loss of internet ¢onneGlivity. loss of key infrastructure components Indudlng CO￿ firewalls. The leamin9 from Ihesa simulations has infomied improvements and inve$lmenl$ in the platfom$ and netsvorks Ihat LGfL relies on and. this has resulted in a noti￿able reduction in outages and disruptive events. FINANCIAL REVIEW The Trustees deem that LGfL is a Going Concern based on Ihe conlenl on the financial Slalemenls. Key financial indicators are positive, Nel assels have increa$ed. Profilabilily has increased. Revenues have nsen and operating expenditu￿ has fallen. Whilst there has been a negative movement in Nel Current Assels {NCAI thi8 is the re8uIt of pl3nned $lralegic investments and the financial position will improve over the medium term. Key Financlal Indlcatorj Value of LGIL'S Tan Net Assets Pension Fund Sur Surplus Ible and Intan Ible Asseis £ 34,7 Mllllon £ 5.5 Million £ 4.7 Million £ 3.02 Milllon lus Liabil- INCOME , Income has risen from £25.61 M in the previous financial yeai 10 £26.45 M in the currant financial year. This is due to continued nalional gr0￿h LGfL does not receivé any of its income from public fundraising so is not required lo comply with any fundraising regulations. The major part of LGfL's income Continues lo be derived directly from schools and MATS lor the provision of broadband connectivity and ￿lated seryices including internet filtering, e4nail hosting. e-mail filtering, anti-virus Protection, v*b hosling, secure remote aGGe$$ and online educational resources and devices. Income from broadband connectivity ha5 rison in line wrth forecast and continues to grow at a sustainable rat&. LGfL's stralegy of providing value and financial savings to schools Ihrough bundling additional products into ils core broadband seNice has been a key part of 11$ $u¢ce$$ wrth increasirsg numbers of 5Ghools taking advantsge of the freely available products lo offset pressures in their budgets. As a result, LGIL continues lo benefit from very high levels of customer felents'on for rts broadband service. Growing Confiden￿ in LGfL is reflected by the fact th.at schools who had left LGfL are now reluming which means that LGIL'S share of the London mathet is increasing. Retention rates for cuslorners are consistent with previous years. Based on historical perfomianc*, LGfL is forecast lo continue with nel grovrth underpinned by continued expansion in the Plome Counties, North West and the Midlands based on a healthy pipeline of future sales leads and retention aclivity. Page 15 Docuslgn Envelope ID." DSE4D67E-OA86486A-9493.604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 BALANCE SHEET LGfL'$ balan￿ sheet is Stronger than last year with nel assets increa¥lng. LGIL has lolal langible and intan9ible assets dose to £ 34.7 M in this finanaal year compared lo £36 2 M in the p,revious financial year. Net Cu￿ent Assets INCA) has moved unfavourably but this 1$ due lo higher inve$lment resulting from the pur¢ha$e of Virgin Media fibre and other $hort lem liabilities. There has been a substantial improvement in Total Net Assets from £2.533 M to £5.530 M. This is due lo the capilalisalion of IP addre$$e$ and the fact that LGIL is paying off rts fibre loan fa$lef than the asset is depreciating, LGfL's balance 8heel will contlnue to glrenglhen as it pays off its fibre loan faster'lhan the fibre asset is dep￿ClaI1ng. PENSION SCHEME LGIL operates a Defined .8enefrt Scheme that is part of the Local Government Pension Scheme, This is a scheme based on career average eamings ICAEI and, in some cases, a r￿mbInation of CAE and final salary. Pension perfoThance remains volatile bul positive. The pension furKI is in surplus1£4.7M}. In the next financial year theo is a triennial review of the scheme alon95ide a govemmenl review of D8fined 8enefil Schemes. In ?ccordan¢e with A¢o)unling Standards the Pen8ion Surplus is not reco9ni8ed in these financial slalements CASHFLOW & Liouioir LGIL ha$ retained cash balan¢x8 of £ 3.5 M at year end lo meet business need. Throughout the year LGfL has gtrong liquidity and has sufficient liquid resources lo meet ils needs throughout the financial year without borrowing or use of overdraft facilitie$. LGIL'S credit worthine88 remains strong according lo Dun and Bradstreet. Credit control remained $lronG with LGIL continuing lo delwer historic low of levels of debtor underlying slrong pertofmance from the Credit Control Team. PROFIT AND LOSS LGIL has generated a surplus of £2.997 M which is primarily due lo the capital purchase of fibre which resulted in rental charges being r))nverted to assels on the balance sheet. LGfL's investment in fibre means that profilability has increased markedly as LGfL has r￿nVerted rental expenses lo long lem) assets. LGIL has in¢rea$ed revenues and has a healthy pipeline of Salos. MEDIUM TERM POSITION LGfL'$ Medium Te￿ forecasts indicate that LGfL will be in a stable and sustainable financial position for many years to come. As part of those forecasts, options for cutting costs and generating savings have been developed to enable LGIL to adapt to unforeseen Circumstan￿5. The improvements in LGfL's Medium-le￿ financial planning are enabling the Board lo understand and lesl the Impact of making key investment deci¥ion$ and consKler the trade-offs and consequences of decisions that lie ahead. A review of the pension scherne has taken plao and il is planned lo close the current Defined Benefit Scheme and replace it with a Defined Contribution Scheme in FYE 26. LGfL is confmlenl Ihat the cost of fvlure infrastructure upgrades. allhough substsnlial. will fall. Th￿ is partly due lo market innovation which is offerin9 QPPOrtunities lo rearChIte￿ solutions to schools and MATS. Page 16 Docusign Envelope 10.. 05E4D67E-DA86486A-9493-604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 GOING CONCERN ConsKlering the Financial Statements set out in the accounts, LGfL ha$ adequate resources to meet all liabilib.es as they lall due and will continue in operational existence for the foreseeable future. Sufficient controls are in place to ensu appropriate financial stewardship. Therefore, LGIL has prepared ils accounts and finanoal statements on the basis Ihal the Gharity is a Going Concern. A number of initiatives will ensure that LGIL remains a Going Concxrn for the foreseeable ft11u￿. They are'.- LGIL has continued lo increase ils organisational capacity and capability lo ensure that it keeps pace with the needs of $chool$, MATS and Local Authoritie$ LGIL will continue lo have a diversified inveslmenl portfollo which b'alances the needs to 'Keep the Lights On.. meet "Unavoidable Pressures. and 'lnvest in Gfovrth and Retention.. The pur¢ha$e of licenced fibre from VMo2-has Iranslormed a rental expense into a long-term asset on Ihe balance sheet. This will boost profilabilily in fvlure years as the liabilities diminish al a faster rale than the depreciation charges Contract negotiations Lx>n¢luded with LGfL's slrategic partners Gonllnuing lo deliver Improved seNice performance. Improved infomalion sharing and the advanced use of analyti￿ is enabling efficient idenlificalion of pertormance concerns and swifter ￿MedIa1 a¢lions to resolve them. LGIL Is hame88ing mulli-year lorecasllng for cash. flow, balanee shéét and profil and loss management and constantly viewing'them in light of investmenls and economic change LGfL h89 embedded the us8 of core finan￿81 8tatement8 and lorecasting into corporate govemance including Board investment de¢i$ion$. LGfL has a healthy sales pipeline and by hame$$ing dats and LGfL's Customer Relationship Management ICRM} system il has been able to continue generaling net grovrth LGIL will contlnue to achieve Best Value and reduced ¢o$ts from suppliers through market testin9. financial and targeted commeraal interventions LGfL will continue to diversify the range ol products that il provides to schoo18 and therefore the souThs of Ils income which has Continued in Ihe Current finanaal year LGIL will continue fooJsing on containing the rate of customer attnlion through a tange of largeled inilialives Including flexible pricing, personalised product design and product ennchment LGIL will maintain and enhance rts investment and project management controls, including stopping initiatives that are not delivenn9 benefit. sweating assets and Invesllng wisely lo delivar Inaximuni value LGfL will Continue expanding and diversifying LGfL's cuslomer base in schools and across the public sector Page 17 Docus￿n Envelope ID.. 05E4067E-DA86486A-9493*04F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 RESERVES At the'31 March 2025, LGfL's nel assets were £5.53 M. As previously reported in LGIL plans for a periodic deplets'on of rese￿e5 and unre$tri¢ted funds to enable the modernisalion and upgrade of the schoo15' netsvork peri¢)dically alongside conlinulng investment In product and $ervic*$ improvements to ensure LGIL is eompelitive in the market reserves. The actuarial assessment and pension liability was an improvement on the previous yeafs with the value of the fund rising from £ 2.7 M lo £4.7 M. Going forward, LGfL maintains unreslncted funds andire$erve$ Consistent with anlicipaled commitments in regard .10 maintaining continuity of service, cyclically ￿freShIng ils assets, and ensurlng it can'.- Fund ils operat￿n81 demands for at least 3 months Survive major and unforeseen economic shocks and development$ Provtde ￿ntingencY for IT related initiatives Respond purposely to technology Innovation and Have c8pacily to respond lo new regulations. The opeTats'ng model ol LGfL means that it needs to continually reinvest a Significant proportion of. its su￿lUse$ inlo IT infrastructure, plaifom8, products and services lo eThsu￿ LGfL remalns ¢ompelilive and able lo service the need ol participating schools and other customers. Pa9e 18 Docusign Envelope IO.. DSE4D67E-DA86488A-949>604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 8TRUCTURE. GOVERNANCE AND MANAGEMENT The London Gryd organisalion consists of the following legal entities.. Name Status London Grld lor L•aming Tnist Prfvate. limlted by guarantee. no share capltal, section 30 01 the Companies Act Companies House no. 4205579. Members are London's 33 Local Councils Charty Number 1090412 London Grid Limited Private Limited Company Companles House no. 05122783. Wholty owned b'y London Grid for Leaming Trust. Thls has now Deen merged Wrth LGIL following approval to wlden the ODiects granied by the Charfties Commission ano London Counclls. L•t's G•t Dlgltal Prlvate Llmited Company Companies House no. 11158329 Wholly owned Dy LonQon Grld for Leaming Trust Currentty ¢yormant. APPOINTMENT OF TRUSTEES All 33 London Local Aulhorllies are members of the London Grld lor Leaming Trust Company and are responsible lor appointing the Executive Board. Trustee5 are nominated by the Council. Each Member that is a Counol may nominate a person as a Oiredor, who shall be appointed as a Nominated Director by a resolution of the Directors. The Nominated Oire¢t¢xs appoint one or more persons as Diredors. Directors are chosen by reference to Iheir relevanl qualifications. skills, experience, knowledge, professional, eommercial or Community Standing and. where possible, their contribution lo making the board of Directors appropriately diverse. No Direclors a￿ appointed unless their candidacy has been notified to the Members in sufficient detail and in sufficient time to enable any Member so minded comrnents'ng on the proposed appoinlmenl.. in writing lo LGIL prior lo the appointment being made. The ￿MpanY holds Annual General Meeth'ngs lo appoint Directors and Auditors and receive and approve Dire￿or$, Report and Accounts. Page 19 Docustrdn Envelope ID". D5g4D67E-DA86486A-9493-804F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEE INDUCTION LGfL recognises that poor corporate governance, financial management and decision making have been the main cause of failure in other chanlies, and that Trustees have not been effective in these incidences. According lo research, much ol this ineffectiveness is due lo inadequate induction and support oflered to Twstees. LGIL re¢ognises Ihal a new Tfusleè will make a much more substantial contribution if their induction is handled effectively, and they have the information and skills needed lo undertake their duties effectively. LGIL recognises that il is vital that new. Trustees have all the necessary infomialion to make an eflective conlribution to LGIL'S affairs induding. En3uring th81 new Trustees are fully conver8ant with the Articles and Activities ol LGfL Provision of additional rel?vant material, including Board papers and the statement of accounts Providing Twstee financial training, which is provided by the Company Auditors and That Trustees are awa￿ of their legal obll9ations under Charities Law, Includlng areas such as Public Benefit and Responsibilities of Charity Truslaes ICC31. ORGANISATION LGIL'S Execubve Board of five members meets 45 times a year lo advise. review and direct slrate9y and investment plans a8 well as providing oVers￿h1 of LGfL'$ perfomian¢e. Exceptional Board meetings are called where required. An Audit Committee meets to ￿vIeW the accounting and financial management practices of LGfL. The Audil Committee is re8pon8ible for reviowlng the report from the Extemal Audilors and lor providing a$$ur8nc• to the Board. LGfL is also accountable to ils members through the active enoagernenl of key stak&holder$ in the fom of Local Authority Offi&8rs and school repregent8tive8. In order lo facililale effective operations. thé Chief Executive has. delegated authority for all matters including finance. employment, technology services and commercial aGlivty. As Such, the operation and development of the company is Ihe sponsibility of the Chief Executive, who is accountable lo the Board, and the Mernbe￿. The Chief Executive manages 8 permanent staff and the combined staffing establishment is 41.75 full time equivalents and 42 posls. LGIL make8 appropriate and tar9eled use ol conlingenl labour to meet peaks and troughs in demand .as w?11 as proV￿e ac￿$5 to key skill$ to meet operational and strategic need. In 2016117 the Arti¢le$ of LGL were rel￿Shed lo ensure they reflected best practice., contracting arran9ements between LGfL and LGIL were captured in an intercompany agreement between LGfL and its trading subsidiary. In 2019120 permission was granted by LGfL's shareholders," foll¢)wing aulhorisatson from the Charities Commission. lo exlend the Articles to cover new Objects relating to Well-being and Community Development. Thi$ change was ratified in 2020121 following an extraordinary vote by 11$ Sh8￿hOlderS. In 2022123 a further-change of Objects was approved following advi￿ trom the Charities Commission. REMUNERATION The Board of Truslees is ￿sponSible for CEO remunerats.on and the employee salary-managemenl. and benefits framework. CEO remuneration is ￿vIeWed and sel by Ihe Human Resources subcommittee annually. The remuneration of staff is the responsibility of the CEO. All staff are appointed under local Government terms and conditions. Pay grade8.for Trustee Officers are Gomparable with public-sector employee$ undertakin9 similar roles. Performance is reviewed annually with the outcomes shaping whether there are any perfomance ￿lated payments, increments or fto rise at all. Remuneration will continue to be s¢ruts'nised to ensure value for money and alignment wrth Ihe market generally. Page 20 Docusgn Envelope ID.. 05E4D67E-DA86486A-9493-604F69DIEFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 RELATED PAR TIES LGfL has a trading subsidiary, London Grid Limited. LGIL Trust is the sole shareholder in London GrKI Limited ILGL}. LGL was set up lo provide access to Trustnet seNicEs.for the wider public sector, particularly Councils. From the beginning of 202012021 and following the change in Articles of LGFLT the activit￿5 of LGL have been ab$ortJed within LGFLT itself and the company LGL is ujrrenlly dui"Ii)anl. LGIL has a domant company called Let's Gel Digital. REFERENCE AND ADMINISTRATIVE DETAILS Narn• of the Charlty: London Grid lor Learning Trust Charity Registration Number.. 1090412 London Grid for Learrsing. 9th Floor, 10 Exchange Square, Prirnrose Street, London. EC2A 2BR. Dlre¢torn •nd Tru•ts The directors of Ihe chanlable ￿rnPany lthe charity} are its tfustees for the purpose of charity law. Trustees and officers serving dunng the yeJr and since the year end were as follows.. .Paul Robinson - Chaimian Gary Hipple - Elected RepresenlalNe Fabio Negro - Elected Representatsve Helen Warner - Elected Representative Sean Green - Elected Rep￿Sentativ• Company SecreLiry: John Jackson K•y M•n•gem?nt Per•onn•l John Jadmpli3nrA wSlh a law or regulation is remove4 Irom the events and transactions reflected in the financial slalemenls, as We 11 be less likely to become awa￿ of instances of non-LX+mpllan￿. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional conc*alment, forgery. collusion, omission or mi$repr8sentatson. A further description of our responsibilities for the audit of the financial statements is located on the Finanaal Reporting Council's website al.. wkn￿. .uklaudito This des¢riplton forms part of our Auditors, report. U•• of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 01 Part 16 of the Companies Act 2006. Our audit wort( has been undertaken so that we mighl slate to the charitable company's members those matters V•e are required to stale lo them in an Auditors. ￿port and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility lo anyone olher than the chantable company and it8 members, as a body, lor our audit work, for this ￿port, or for the opinions we have fomied. Ilotu$lqft•d br. &>IF E92A1471... JanIc•￿atth*ws FCA (Senlor statutory audltor) for and on behalf of Menzles LLP Chartered Accounlanls Statutory Auditor Magna House 18-32 London Road Staines-Upon-Thames TW18 48P Date: 18-Dec-2025 Page 27 Docus¢gn Envelope ID: D5E4067E-OA86486A-9493.604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 Unregtrlcted lund8 2025 £000 Re$lrl¢ted funds 2025 £000 Total fvnds 2025 £000 Total funds 2024 £000 Note Income from: Donations and legacies Charitable activities Investments 205 25.347 67 26,246 299 26,246 299 Total In¢offl• 26,$45 26,545 25.619 Expendltur• on: Charilabl? 8¢tivrties 24,402 24,402 26,622 Total expendlture 24.402 24,402 26,622 Net movement In fund$ beforn other recognlsed galn$lllo$s•sl 2,143 2,143 (1.003) Other recognlsed gainsl{lossesl.' Gains on revaluation of fixed assets Actuarial Ilossesllgains on defined benefft pension schemes 988 988 22 11161 Nel movement Inifunds 3,016 3,016 (999) Raconclllallon of funds: Total funds brought forward Net movement in fvnds 2,328 3.016 205 2,633 3,016 3,532 (999) Totsl fund• carrl¢d fomrd 6,344 206 5,549 2,533 The Statement of financial activitss indLKles 811 gains and losses recfrjnised in the year. The notès on pages 3110 SO fomi part of Ih•se financial slalements. Page 28 Oocuslgn Envelope ID.. DSE4D67E-DA86486A-949&604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) REGISTERED NUMBER: 04205579 BALANCE SHEET AS AT 31 MARCH 2025 2025 £000 2024 Noto Flx•d a88ets Intangible assets Tangible assets 11 12 2,376 32,399 1,385 34, 763 34,775 36,148 Current a•$•ts Debtors Cash al bank and in hand 14 3,606 3,491 3.634 4.648 7,097 8,282 Current Ilabllltles Creditors,. amounts falling due within one year 15 {16,9491 (16,997) Net current Ilabllllles 18,852 (8, 715) Total ailets l•*a eurr•nt Il•blllll•• 26,923 27,433 Creditors.. amounts falling due after more than one year 16 120,3741 (24, 900) Net ••sets •xcludlng pen•lon ••i•t 5.549 2, 533 Total net asse18 5,549 2,533 Charlty lund$ Reslricled funds Unrestricted funds. 17 206 6,344 205 2,328 17 Total fund• 5,549 2,533 The Trustees acknovAedge their ￿SponSibl11t1es for Complying with the requ1￿mentS of the Act with respect to accounting r8cords and preparation of financial statemenls. The financial s18lements were approved and authorised for issue by the Trustees and signed on their behalf by= IlyTr•4by. Mr Trustee AY.""" "" nson 205V¢IV4E7'.:" Mr G Hlpple Trustee Date.. 18-Oec-2025 The notes on pages 31 to 50 fonn part of these financial statements. Page 29 Docu%gn En¥elopo ID.. DSE4D67E.OA86486A-9493-604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2026 £000 2024 Not• Ca8h flows from oper•tlng actlvitie8 Nel cash pTovided by operating activities 19 6,516 3.925 Cash flows from Investlng •¢tlvltl•s Purchase'of intangible as$el• Purchase of tang*ile fixed assets 1772 12,423) (1,035) (1,544) Net c••h used in Investlng a¢tlvltle• 13,196) (2,6791 C•8h flows from fln•n¢lng actlvltlel. Rèpayments ol finance lease$ {4,478 (1, 184) Net ¢a•h u••d In flnanclng •¢tlviti¢s {4,478) (1,1841 Chang• In ca•h ind ¢a•h oqulv•l•nt8 In the y••r Cash and cash equivalenls al Ihe beginning of Ihe year 11,1671 162 4,648 4.486 Cash and eash equiv•lents •tlh• end of the year 20 3,491 4,648 The notes on pages 3110 50 form part of these finanaal statements Page 30 Docusign Envelope ID: osE4D67E-DA￿88A-949J-6o4F89Dl EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 G•n¢ral Infomiatlon London Grid for Leaming Trusl {0420S579) is a private charitable company limited by guarantee, incorporated in England and Wales. The address ol the registered office is disclosed on page 1 and rts principal activities described in the Strategic and Diredors, Report. A¢counllng poll¢l•• 2.1 8a$l$ ol prep•ratlon of finanei•l statements Th• financial $tatem•nls have been pr•par•d In apxofdano wlth the Charities SORP IFRS 1021- Accounting and Reportin9 by Charities.. Statement of Recommended Practice applicable lo charities prepanng their. accounts in accordance with the Financial Reportin9 Standard applicable in the UK and Republic of I￿land {FRS 1021 leffeclive 1 January.20191. the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) and the Companies Act 2006. London Grid for Learning Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilitie8 are initially recogni8e,d al hi81orlcal c081 or transaction valua Unle￿ otherwlse slated in the relevant accounting policy. 2.2 Company 8tatu• The company is a company limited by guarantee. The members of the company are the Directors named on page 1. In the event'of Ihe company being wound up. the liability in respect of the guarantee is limited lo £1 per member of the company. 2.3 Golng Concern The Directors are content Wllh the posillon of the ¢ompany, particularly given the difficult e¢onomi¢ dimale. The major periodic refresh of the systems and infrastructure is complete and Iheffj is a stable and expanding customer base lor the broadband Servi￿ with Sc*ool$ and local authorities. New revenue st￿8M$ have been added which have further bolstered the Company's financial position. The Directors anlicipale the company lo Irade sustainably for the foreseeable future. There ara also sufficient cash reserves. A medium tem financial forecast has been introduced lo support investment and financial decision making. The Directors accordingly wnsider that the company is a Going Concern for at least twelve months from the dale of approval of these financial statements and the arxounts are accordingly prepared on the Going Concern basis. 2.4 Incom• All income Is recognised once the company has enlillemenl to Ihe income. 11 is probable that the income wlll be rerAived and the amounl of income ￿￿1¥able can be measured reliably. Income re¢xived from Local Authorities and schools lor subscription5 and contributions to core adivities 19 recognised in the period to which it relates. Income invoiced in respect of lulure periods is deferred to thal period. Income from the Sale of goods 18 re¢ogni8ed when the go¢)ds are delivered lo customers. Other project income is ￿cOgniSed as receivable. Commissions ￿￿1Vable are recognised as invoiced. Grants affj induded in the Statement of financial activities on a rec£ivable basis. The balance of income received for speafic purposes but not expended dunng the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entiuement of ￿￿1P1, rts recognition is deferred and included in creditors as deferred income, Where enlillement 0￿UrS before income is received, the income is accrued. Page 31 Docusign Envelope ID.. D5E4D67E-DA86486A-9493-604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng poll¢le8 l¢ontlnued) 2.6 Expendlturo Expenditure is re¢ognised On￿ there is a legal or constructive obligation to transfer e￿nOMiC benefit lo a third party. it is probable that a Iransfer of economic benefits will be reqtsired in settlement and the amount of the obligation can be measured reliably. Expenditure is classiffied by activity. The costs of each activity are made up of the total of direct cosls and shared costs, indudirig support costs involved in undertaking each aclivily. Oirect costs attributsble lo a single activity are allocated directly to that activity. Shared costs which Contribute lo more than one activity and support costs which are not attributable to a single activity are apportioned beNveen Iho8e activities on a basis consistent with the use of resources. Cefttral staff costs are allo¢•ted on the basis of lime spent. and depreciatson charges allocated on the portion of the assefs use. Expendllure on charitable activities Is incurred on directly undertaking actSvities which further the company's objectives, as well as any associated support costs. Temination expenditure is recognised a liability and an expense only when Ihe entity is demonstrably committed either.. lal lo lerminale the employment of an employee or group of employees belore the nomal retirement dale; or {bl to provide temiinalion benefits as a result of an offer mad• In ord•r lo •ncourag8 voluntary redundancy. 2.6 Intanglble ••sets and amorusallon Intanglble as$?ts costing £NIL or more are ¢apitali$ed and re¢ogni$ed when futu￿ economlc benefits are probable and the C¢JSt or value ol the assel can be MeaSu￿d reliably. Intangible assets are initially recognised at cost, After retognilion. under the c4)sl model, intangible assets are measured at cost less any accumulated amortlsalion and any ac￿Mulated impaim)ent losses, except for IP Adresses whl¢h a￿ restated al Market Value each year. Amortisation is prov¢ded on intangible assets al rates calculated to write off the cDsl of each asset on a Jtraight- line basis over ils expected useful lile Amorti$ation18 provlded on the lollowing basis.. Content and sO￿are Over 3 10 5 years straight line 2.7 Tangible fixed assets and depreciation Tangible ftxed agsets o)sting £NIL or more are capitalised and recognised when fulure'e¢onomic benefits a probable and the cost or value of the asset Can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the o)st model, tangible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment105ses. All costs incAJrred to bring a tangible fixed asset into it5 intended vffjrking wndrtion should be included in the measurement of cost." Depreciation is tharged so as to allocate the Cost of tangtile fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases.. Fixtures and fittings Office equipment Computer equipmenl 20°A straight line 200A straight line Over 3 to 14 years straight line Page 32 Docusign Envelope ID.. D5E4D67E-DA86486A-9493-604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 A¢¢ountlng pollcle• Icontlnu•dl 2.8 Inv•8lm•nts Fixed asset investments are a lorm ol financial instnjmenl and are initially recognised at their Iran$aclion Cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case il 1$ measured al cost less impaimient. Investment gains and losses. whether.realised or unrealised. are combined and presented as 'Gain8llLosse51 on inveslrnents, in the Statement of financial activities. Inve8lmenl8 in subsidiaTi8s are valued at C08t less provision for impairment. 2.9 Llabllltles and provl$lon$ Llabililie8 are recogn15ed when the￿ i.J an obli9allon at th8 B8lanc• Sheet dale as a resull ol a past event, it 18 probable that a transfer of economic benefit will be required in 8ettlement. and the amount of the $ettlemenl can be eslimaled reliably. Liabilities are recognised at the amount Ihal the Gompany anticipates it will pay lo sellle Ihe debt Of the amount it has received as adVan￿d payments for the goods or seNic*s it musl provide. Provigions are measured at the best eg1imal6 of Ihe amounts required to Settle the obli9alion. Wher6 the effe ol the lime value ol money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that ￿flects the risks gpecific to the liability. The unwnding of the discount is recogni5ed in the Statement of financial activrties'as a finan￿ cost. 2.10 Flnanclal Instrurnents The company only has finanrial 0s8etg and financial Ilabilili09 of 8 klnd that qualify as basic financial inslnJmenl8. Basic financial instrumenls are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised Cost using the effective interesl method. 2.11 Flnance l•ase• Assets obtained under finance leases are capilalised as tangible fixed assets. A$sel$ acquired by finance lease.. are depreciated over the shorter ol the lease term and their useful lives. FinanrA lease5 are those where substantially all of the benefits and risks of ownership are assumed by the company. OblvJalions under such agreements are included in creditors, nel of the finance charge allocated to future periods. The finan¢e element of Ihe rental payment is charged to the Slatemenl of financial activities so as lo Produ￿ a constant periodic rale of charge on the nel obligation oulslandin9 in each period. 2.12 Pénsions The Company operates a defined benefits pension scheme and the pension charge is based on a fvll actuarial valuation dated 30 June 2022. 2.13 Fund a¢countlng General (unds are unrestricted fvnds which are available for use al the discretion of Ihe Trustees in furtherance of the general objectwes ol the company and whlch have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustee5 for particular purposes. The aim and use of each designated fund is Sel out in the notes to the financial statements. Page 33 Docusign Envelope ID: 05E4D67E-DA86486A-9493-804F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 A¢¢ountlng policies Icontinuedl 2.13 Fund a¢¢ounllng {contlnued) Restricted fvnds are funds which are to be used in accordanc2 with specific restnctions imposed by donors or whi¢h have been raised by the company lor particular purposes. The costs of raising and administering Such funds are charged against the 8pecifi¢ fund. The aim and use of each restricted fund 15 sel out in the notes lo the financlal statements. Investment in￿rne, gains and losses are all￿ted to the appropnate fund. Crltlc•l accountlng •8timate• Ind arnas ofludgem&nt ' Estimates and judgements are continually. evaluated and are based on historical experienex and other factors. In¢luding expectations of fvturg events that are believed to be reasonable under the circum8lance$. Critical ac￿untIng esllmales and assumptions.. The company makes eslimates and assumptions Concerning the future. The resulting accounting estimates and assumptson$ wlll. by definition, seldom equal the related actual fesulls. The e$limale$ and o$sumption$ that have a significant risk of causing a material adjuslmenl to the carryin9 amounts ol assets and liabililles wllhin the next financial year are discussed below. In the opinion of the Trustees the main estimate and assumption Ihal may have a significant risk of causing.material adjustrnenl to Ihe carrying amount of asset$ and liabilities within the next financial year are in relation lo Ihe useful life of fixed assets, whl¢h are wrrtten off In accordance with the amorts'sallon and depreclallon pollcles set out in note 2.6 and 2.7. The valuation of the pension scheme assets and liabilities is carried out by the scheme actuary based on various assumptions and estimates. Details are given in Note 22. Income from donatlons and legacl•• Reslrlcted funds 2020 £000 Totsl lund8 2026 £000 Total funds 2024 £000 Granls 205 Total 2024 205 205 Page 34 Do¢u$i9n Envelope ID: DSE4D67E-DA86486A-94934)4F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from charitable activitiès Unrestrlcted funds 2025 £000 Total fund$ 2026 £000 Total funds 2024 Main LGfL Income 22.5 572 3,076 22,590 S72 21,408 613 LGfL Managed Services Income LGL Income 8ridge the Divide 3,076 3,297 29 26,246 28,246 25.347 Total 2024 25,347 25.34T Analysls of expendlture on charltable actlvllles Summary by fund type Unr••trl¢t•d fundi 2025 £000 Total 2025 £000 Tol81 2024 Main LGIL Income LGIL Managed Servi￿8 Income LGL Income Bridge the Divide 21,213 21,213 294 2,896 23.303 265 3,040 14 2,895 24,402 24,402 26.622 Total 2024 26,622 26.622 Page 35 DocusvJn Envelope ID.. 05E4D67E.DA86486A_9493.604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of •xpendlture by activities Actlvltle• undertaken dlre¢tly 2026 £000 Support ¢o$ts 2025 £000 Total funds 2026 £000 Tolal funds 2024 £000 Main LGIL Income LGfL Managed Servic*8 Income LGL Income BrSdge The Divide 16.949 181 2,325 4,264 113 570 21,213 294 2.895 23,303 265" 3,040 14 19,455 4,947 24.402 26.622 Tolal.2024 22,525 4,097 26.622 Inal￿1$ of Support costs LGIL Managed S•Thlc88 Incom• . LGL Income 2025 2025 £000 £000 Maln LGfL Income 2026 £000 Brldge th• Dlvlde 2026 £000 Total funds 2026 £000 Totel funds 2024 £oJo Staff costs Promotions Rent, Electncity and Rates Olher professional fees Repairs and maintenance Other office costs Insurance Other Lease interest and finance Charges Governan￿ ¢osts 1.676 208 45 227 22 1,948 234 1,880 205 351 47 407 492 323. 376 366 24 28 237 46 217 42 297 48 31T 204 40 187 28 25 1,153 98. 31 156 1,340 114 357 93 13 4,264 570 4,947 4,097 Total 2024 3,521 83 480 13 4,097 Page 36 Docusign Envelope 10: DSE4D67E-DA86486A-9493-604F69DIEFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Anal￿1$ ol •xp•ndltur• by a¢tlvltle8 Icontlnu•d) Analysis of support Costs lcontlnued) During the year ended 31 March 2025, the company Incurred the followin9 Goveman¢e cg$15'. £98k 12024.. £79kl includod within the table above in respect of Main LGIL InrA>me, £13k12024'. £12k} in respect of LGL Income and £3k {2024. £2kl in respect of LGfL Managed Servi￿$ Income. Audltorn. remuneratlon 2025 £000 2024 £(AJO Fees payable to the company's auditor and ils associates for the audit ol the company's annual accounts F885 payablè lo the ￿MpanY'S audllor and Ils a$sociat88 in resp&cl of.. All non-audll services not included above 41 38 Staff costs 2025 £000 2024 Wages and 8alarie8 Social security costs Operating costs of defined benefit pension schemes 2,868 318 2, 739 301 476 460 3,636 3.516 Staff costs of £880k {2024. £724k) attributable lo development work on the company's IT inlra8truclura have been caprtalised and are included within fixed asset additions. The average number of persons employed by the company during the year was as follows.. 2025 2024 Admintslrative slaff 43 Page 37 Oo¢uslgn Env8lope ID.. 05E4D67g.DA86486A.949&604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 The number of employees whose employee benefits (excluding employer pen8ion ¢o$ts} ex￿eded £60.000 was.. 2026 2024 No. In the band £60,001- £70.000 In the band £70,001 - £80,000 In the band £80,001 - £90.000 In the band £90,001 - £100,000 In the band £140,001- £1 $0,000 In the band £160,001- £170',000 In the band £170.001 £180.000 10 Remuneration and benef￿9 ￿CeIved by key management peisonnel was £1,064k12024'. £1,008kl. 10. Trustees. remuneratlon and expon808 During the year, no Trustees re￿Ned any remuneration or.olher benefits f2024- £NIL). urin9 the year ended 31 March 2025, no Trustee expenses havo been Incurred (2024 - £NIL). 11. Inlangible a88ets Content & Software IP Addrns8 £000 £000 Total £000 Coot Al 1 April 2024 Additions Revaluations 3,421 766 3,421 772 988 988 Al 31 March 2025 4,186 995 6,181 Amortlsailon Al 1 April 2024 Charge for the year 2,037 769 2,037 769 At 31 March 2025 2,806 2,808 N•t book value Al 31 March 2025 1.381 996 2,376 At 31 March 2024 1.384 1.384 The net book value of assets held under finance leases are £Nil12024'. £13kl. Page 38 Docuslgn En*lope ID.. 05E4D67E-DA86486A-9493-604F69D1 EFAF LONDON.GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. Taftglble fixèd as$•ts Fixtures and fittings £000 Offi¢• qulpment £000 Comput•r equipment £000 Total £000" Cost or v•luation At 1 April 2024 Additions 11 48,119 2,391 48,219 2,423 20 12 At 31 March 2025 31 80,610 50,642 D•preclatlo At 1 Apnl 2024 Charge for the year 20 13,431 4,766 13,457 4,786 Al 31 March 2025 39 18,196 18,243 Net book value Al 31 March 2025 23 62 32,314 32.299 At 31 March 2024 69 34.688 34, 763 The net book value of assets held under finan¢e leases are £26,632k {2024.. £28,581 kl. Page 39 LioCUs￿On Envelope ID". D5E4D67E-DA86486A-9493404F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. Fixed asset investments Prlnclpal $ubsldl•rles The charlly own$ 100% of the ordSnary #hare capital of the lollowing companies. Names Company Regl8t•r•d office or number principal place of buslness Prlnclpal acllvlty Holdlng London Grid Limited 05122783 9th Floor. 10 Exchange squa￿ Dormant. Primrose Street. London. England, EC2A 2BR 11158329 9th Floor, 10 Exchange Square The company has not yet Pnmrose Street, London. begun trading. England. EC2A 28R 100• Levs Gel D￿lIa1 Limited 100% The finan￿al re¥ults of the $ub$Kliarie$ for the year were.. Names All the fixed asset investments are held in the Unlted Kingdom. Page 40 Docustgn Envelope ID.. DSE4067E.DA86486A_9493404F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. .Debtorn 2025 £000 2024 £000 Oue after more than one year Prepayments and accrued income 986 1,199 985 1.199 Due wllhln one year Trade debtors Other debtors Prepayments and accrued incom& Other debtors- VAT r.epayable 663 433 628 1.200 174 306 1,259 3,806 3,634 15. Cr•dltor•: Amount• f•lllng due wlthln ono y¢•r 2026 £000 2024 £000 Trnde creditors Other taxation and SOCAal security Obligations under finance lease and hire purchase conlraclg Other creditors Attruals and deferred In￿Me 3,647 76 3,219 75 4.470 212 4,454 141 7,732 9,021 15,949 16,997 2025 £000 2024 D•lerr•d Income al 1 April 2024 Resources deferred during the year Amounts released from previous penods 7,617 7,240 17.5171 6.421 7.577 (6,421) 7,240 7,517 Deferred income ￿p￿Sen18 amounts invoiced in respect of broadband etharges and other Servi￿5 which relate lo futu￿ periods. Page 41 Docus¢9n Envelope 10.. DSE4067E-DA86486A-9493-604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Crnditorn: Amount# falllng duo after morn th•n on• y•ar 2025 £000 2024 £000 Net obligations under finance lease and hire purchase contracts AGGruals and deferred income 20,124 24, 596 314 20,374 24,900 The aggregate amount of liabilities payable or repayable wholty or in p.art more than five years after the reporting date is.. 2026 £000 2024 £000 Payable or repayable by inslalmenls 5,274 5,274 Page 42 Docusign Envelope ID.. D5E4D67E-DA86486A-9493-604F69D1EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Statement of funds Statement of funds - current year Balance al 1 Aprll 2024 £000 Transf•rn Inlout £000 G•ln81 Balance at 31 (Lo88•81 March 2026 £000 £000 In¢om• £000 Expendltur• £000 UnrestActed funds Desl9nated funds Pan London Admissions 365 568 11961 1433) 304 General fvndi General Funds Revaluotion reseNe 1,983 25,977 {24,206 433 (1161 4,052 988 1,963 26.977 124,2061 433 873 $,040 Total Unre8trlcted fund• 2,328 26,546 124,4021 873 Re$trf¢tod fund8 Maillorce 205 205 Totsl of funds 2,533 26,546 124,402 873 5,549 Designated Funds The Iruslees have set aside surpluses generated from the Pan London Admissions activity for the enhancement of this service. Restricted Funds The purpose of the Mailforce Grant is lo prov¢de digital solutions for tackling inequality induding the provision of devices to disadvanla9ed children. Rovaluallon reserve This ￿PresentS unrealised gains arising on the ravalualion of IP Addresses (Note 11). Page 43 Oocusign Env8lope10.' 0SE4067E.DA86486A.9493-604F6901EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Ststement of funds {¢ontinuedl Slatement of funds - prior year Balance at 31 Mar¢h 2024 £000 Balance at l April 2023 £000 Transfers in/ou¢ £000 G8ins/ (Losses) £000 lricome Ex￿ndit￿￿. £000 Unrestrlcled fund$ Designated funds Pan London Admissions 565 (102) (278) 365 General fund8 General Funds 3.352 24,849 (26,520) 278 7,963 Totsl Unre8tr1¢ted funds 3,532 25,414 (26.622) 2,328 RoStrl¢t•d lund• Mailforr£ Grant 205 .205 Totsl of fund8 3,532 25.679 (26,622) 2,533 Page 44 Docusign Envelope ID.. OSE4D67E-DA86486A-9493-604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. ..Anal￿1* ol n•t a•••t8 betw¢¢n lund• Analysls of net assets between funds - currènt year Unre•trf¢t¢d funds 202S £000 Re8trlct•d fund• 2025 £000 Total funds 202S £000 Tangible fixed assets Intangible fixed assets Debtors due after more than one year cuf￿nI assets c￿dItorS due wllhin one year Creditors due in more than one year 32,399 2.376 985 5,907 (15.949) 120.374} 32,399 2.378 985 6,112 116,9491 120.3741 205 Total 5.344 205 6,649 Analy•l• of n•1 •••et8 between lund• - prlor ya*r Unrestncted funds 2024 Reslficled funds 2024 £000 Total funds 2024 Tangible fixed assets Intangible fixed assets Debtor5 due after more than one year Current assets Creditors due within one year Credllors due in more than one year 34, 763 1,385 1,199 6,878 (16,997) (24,900) 34, 763 1,385 1. 199 7,083 (16,997) (24,900J 205 Totsl 2,328 205 2,533 Page 45 Docusign Envelop8 ID.. DSE4D67E.DA86486A.9493404F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. Reconclllallon of net movement in fvnds to net cash flow from operating activitiès 2026 £000 2024 Nel inrAmelexpendilure for the year las per Statement of Financial Activities) 2.143 (1, 003) AdJu8lm•nts for: Depreeialion ¢harge$ Amortl8alion charges Loss on the sale of fixed assets Decrease in debtor8 In¢￿ase1(deCrease) in cRditors Currenl pengion ser4ica co818 Defined benefit pension scheme contributions paid Net pen8ion scheme inte￿$V[Inanc¢ ¢o$l 4.786 769 3,279 28 136 11,0951 482 1444) 11331 750 473 {402) (61) N•t cash pmvlded by operating a¢tlvllO•• 6.616 3,925 20. Anal￿1* of caih Ind c*•h.•qulvalents 2026 £000 2.784 707 2024 Cash in hand Notice daposits (less than 3 months) 4,648 Total cash Ind ¢a•h •qulv•lent• 3,491 4,648 21. Anal￿18 of chang0• In not d•bt At 1 Aprll 2024 At 31 March 2025 £000 Cash flows £000 £000 4.648 129.OS71 Cash at bank and in harKI Finan￿ lease$ (1.1571 4,479 3,491 (24,578) {24,4091 3.322 121,087) Page 46 Docvsiqn Envelope ID.. D5E4D67E-DA86486A-949&604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. Pen8lon'¢ommltments The Company operates a defined benefii pension scheme. Pnncipal aduarial assumptions at the Balance sheet dats {expre$sed as weighted averages).. At 31 March 2025 At 31 March 2024 Discount rate Future salary increase$ Future pension increases 4.85 3.25 2.7S 3.25 2.75 The trust is an admitted body to the Royal Borough of Kingston upon Thames Pension Fund, a mulkn"-employer pension lund in which there are many participating employers, The disclosures relale lo the funded liabilities wrthin the Royal Borough of Kingston upon Thames Pension Fund Ilhe 'fund'} which ig part of the local govemmenl pension scherne. London Grid for Leaming Trust I'LGFL'I participates in the fund which provides defined benerts. based on members, final pensionable salary. In aca)￿anCe with Financial Reporting Standard 102 disdosure of certain infomaiion ¢onceming assets, liabilit*s inrA*me and expenditure relating to PenS￿n schemes is NUI￿d. The Employerfs regular conlribulion$ lo Ihe Fund lor the accounting perlod to 31 March 2026 are estimated lo be £444,000. In addition, Strain on Fund Contributions may be requlred. The lat881 actuarial valuation of LGFL'J liabilities took place as at 30 Junè 2022. The principal assumptions used by the independent qualif￿d actuaries In updating the latest valuallon ol the lund for FRS102 purposes are detailed below. LGFL employs a bullding block approach In determining the rate of relum on Fund assets. HisloriGqI markets are studied and assets with hlgher volatility are assumed to generate higher returns Gonsislent wilh widely accepted capital market principles, The assumed rale of relum on each asset ¢la$$ is set out within this note. The overall expected rale of relum on assets is then derived by aggregating the expected return for each asset class over the actual asset allocation for the Fund al 30 June 2022. At 31 Mareh 2025 Years Al 31 March 2024 Y8ars Mortality rates lin yèars) - for a male aged 65 now al 65 for a male aged 45 now - for a female aged 65 now - at 65 for a female aged 45 now 23 23.1 22.9 24.4 23.0 24.5 25.6 25.7 Page 47 41 DtsCUSi9n Envelope ID.. D5E4067E-OA86486A-9493-604F6901 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. P•n•lon ¢ommltm•nts (¢onlAnued) The company'$ Share ol the asels in the scheme was'.- At 31 Morch 2025 £000 Al 31 March 2024 £000 Equities Corporate bonds Property Cash and other liquid assets 5,601 6,734 1,734 267 6.235 4,364 1.247 623 Total falrvalue ol ass•ts 13.336 12,469 The actual retum on scheme assets was £440k (2024 - £516k). The amounts ￿r￿gnISed in the Statement of financial activities are a5 follows.. 2026 £000 2024 £000 Current servlce ¢o$l Interest income Interest 462 476 (516) 449 1615 482 Totsl amount rncogni•ed In tho Slat•ment of flnanclal actlvllles 329 409 Movements In the present value of the defined benefit oblKJalion were as follows., . 2026 £000 2024 £000 'Opening defined benefit obligation Current sefyice cost Interest cost. Contribution by scheme parts'cipanls Actuarial gains 8enefil8 paid Experien￿ adjustsnenl 9,708 462 482 208 {1.9371 12001 {931 9,222 473 449 -192 1745) (191) 308 Clo$lng defined beneflt obll9atlon 8,630 9. 708 Page 48 DocusKJn Envelope ID: D5E4D67E-DA86486A-9493-604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. P•n$lon ¢ommltments {continu•d) . Movements in the fair value of the companrfs share of sd*me assets were as follows.. 2025 £000 2024 £000 Opening fair value of scheme a8sels Expected retum on assels Actuarial Ilossesllgains Contributions by employer Contributions by scheme partiopants Benefits paid 12,469 616 12001 70,657 516 893 402 192 208 1200 (791) Clollng lalr valu• ol•¢h¢m• 4$9ot• 13,330 12,469 A& al tha 31 March 2025, the c108ing position of tho defined benefit obli981ion wa8 a Surplus of £4,706k. {2024'. £2,761k), In line wllh FRS 102 Irealmenl the surplus has not been recognised. The￿fore the derecognised value of t1,945k12024'. £2.761 kl is induded within gainsllosses above. 23. Operating lea•e ¢ommltments Al 31 March 2025 the Company had commitm•nls to make future minimum leas8 payments under nonv¢ancellable 9peraling leases as follows.. 2026 £000 2024 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 392 1,687 392 35 1,993 42T The following lease payments have been recognised as an expense in the Statement of financial activities.. 2025 £000 2024 Operating lease rentsls 392 392 Page 49 Oocuswjn Envelopg ID.. 0SE4D67E-DA86486A-9493-604F69D1 EFAF LONDON GRID FOR LEARNING TRUST (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 24. Finance l•aso commitments Al 31 March 2025 the px*mpany had commrtmenls to make fijture minimum lease payments under non-cancellable finance leases as follows- 2026 £000 2024 £000 Not later than 1 year Later than 1 year and not later than 5 years Later than. S years 4,464 20,124 4,470 19,312 5,274 24.578 29.056 On 18 December 2023, the Chanly entered Into a long-temi service arrangernont for D•rf( Fibre Connectivity, providing the right to use specified optical fibre routes lo deliver connectivity Services. Infrastructure costs are payable in monthly instalments 01 £469,823 over 8 72-monlh period from the commencement of the agreement. Maintenance Charges continue for the full 1 S-year leryn of.the a￿angement and are subject lo annual Indexation in line with the UK Relail Price Index from the third anniversary of the agreement. The arrangement is govemed by th• $upplie¢8 Speeial Temis for Dark Fibie Services, which include provislong for early lerminalion. The arrangement has been d8s8ified •$ o finanrA 108se under FRS 102. 09.$ub8tanlially all risks and rewards incidental to ownership of the undertying assets have transferred to the Charity. 26. R•lated p•rty trnn$a¢tSon• Due to the nature of the Tru81'$ operations pro¢uring"service8 on behalf of the Local Authorities and the composition of the Board of Directors drawn from the Local Aulhoril¢es il is inevitable Ihal transactions lake pla￿ with organisations in which the directors have an Inlerest. No specific Iran$a¢tion$ have been identified where a director has an involvement and which should be disclosed as a related party Iransa¢tion. Pemiission has been obtained from the Charity ¢ommission in order to pay for the profe881onal 8erviceJ of the Chairman IP Robinsoftl. During the year £9,042 including expenses were paid for these servi￿5 {2024.- £8.165). No emoluments or expense$ were paid lo any other director during Ihe current or preceding year. The Trust has indemnrty insurance and Insuran￿ lo indemnify the directors and employees of the Tn￿1 costing £14k {2024 £11 kl for Ihe period. Page 50