2025-08-31-accounts

Absolute Return for Kids (ARK) Annual Report and Accounts For the year ended 31 August 2025

Company limited by guarantee, registration number: 04589451 Charity registration number: 1095322

Contents

Legal, reference and administrative details ............................................................................................ 1 Overall approach ..................................................................................................................................... 2 Trustees’ Report including Strategic Report ........................................................................................... 2 Statement of Trustees’ Responsibilities ............................................................................................... 17 Independent auditor’s report ............................................................................................................... 19 Consolidated Statement of Financial Activities (including income and expenditure account) ............ 24 Charity Statement of Financial Activities (including income and expenditure account) ...................... 26 Consolidated Balance Sheet.................................................................................................................. 27 Charity Balance Sheet ........................................................................................................................... 28 Consolidated Statement of Cash Flows ................................................................................................ 29 Notes to the Accounts .......................................................................................................................... 31

Legal, reference and administrative details

Absolute Return for Kids (ARK) (referred to throughout as ‘Ark’, or ‘the charity’) is a company limited by guarantee, registered in England and Wales, number 04589451, and is a UK registered charity, number 1095322.

umber 1095322.
Directors	The directors of the charity are its trustees for the purposes of charity law and
	the members of the company limited by guarantee. Throughout this report,
	they are collectively referred to as the trustees. The following individuals
	served as trustees during the year:
	Ian Wace (Chair)
	Anthony Clake
	Lord Fink
	Sir Paul Marshall
	None had any beneficial interest in the charity and remuneration of trustees
	is neither paid by the charity nor permitted under its Articles of Association.
Company	Kathryn Godfrey
Secretary
Senior	Lucy Heller, Chief Executive
Management	Rosemary Dixon, Director of Strategy
	Laurie Grist, Director of Projects
	Katie Oliver, Director of Ark Ventures
	Jacqueline Russell, Chief Financial Officer
	Venessa Willms, Managing Director of Ark Schools
Registered Office	1EdCity, EdCity Walk, London, W12 7TF
Auditor	Buzzacott Audit LLP, 130 Wood Street, London, EC2V 6DL
Bankers	Lloyds Bank plc, 70–71 Cheapside, London, EC2V 6EN
Solicitors	Stone King LLP, Upper Borough Court, Upper Borough Walls, Bath, BA1 1RG
Investment	Aurum Funds Limited, 80 Charlotte Street, London, W1T 4QS
Managers
	MW Eureka Fund, c/o Citco Fund Services (Ireland) Limited, Custom House
	Plaza, Block 6, International Financial Services Centre, Dublin 1, Ireland

1

Overall approach

Ark is an education charity that aims to make sure that all children, regardless of their background, have access to a great education and real choices in life.

Ark supports Ark Schools, a separate legal entity which is a successful academy network, with 39 schools serving approximately 30,000 pupils. Ark also delivers a range of programmes and ventures that all aim to improve education beyond its schools.

Trustees’ Report including Strategic Report

Activities, achievements and performance

Ark has a long history of incubating and supporting new initiatives that address some of the most intractable issues in education and society. Since 2002, Ark has incubated and scaled more than 28 organisations supporting health, social care, child protection and education activities. Most (including Ambition Institute, Assembly, Frontline, Global Schools Forum, Now Teach, Peepul and Purposeful Ventures) continue to operate independently today, working globally to impact over 45 million children.

As Ark has grown, the focus has turned increasingly to education. Today, Ark’s network of 39 schools serves 30,000 children in Birmingham, Hastings, London and Portsmouth. Drawing on tried and tested processes in its own schools, Ark develops new approaches that are then shared with the wider sector through its ventures.

Ark’s current ventures include:

• Ark Start, a growing group of nurseries offering high-quality early years education;

• Ark Curriculum Plus, which develops subject excellence resources and training for over 700 schools nationally;

• EdCity, a non-profit partnership with Hammersmith & Fulham Council, that is designed to open up economic and educational opportunities for local people and bring the education sector together to connect and collaborate for wider system impact.

2

Activities, achievements and performance (continued)

Ark Start

Ark Start offers a new model of affordable, high-quality early years care that lays the groundwork for school readiness and lifelong learning. Since opening in 2020, Ark Start has provided more than 700 children with a quality early education, so they leave nursery ready to thrive at primary school.

Achievements and performance this year:

• Ark Start operates a network of nurseries in London with five open by August 2025. Three nurseries opened during the year: Ark Start St Clement in Holland Park; Ark Start Globe in Elephant & Castle and Ark Start Brunel in North Kensington. Preparatory work took place for the opening of two further sites in 2025/26.

• In the Summer 2025 cohort, 95 percent of Ark Start children achieved a Good Level of Development (GLD) compared to the government’s national target of 75 percent by 2028.

• Over the past four years, 91 percent of Ark Start children have met GLD, 24 percentage points higher than the national average of 67 percent. 86 percent of those from disadvantaged backgrounds were school ready, compared to 51 percent of disadvantaged children nationally.

Priorities for 2025/26 are to:

• Open five new settings in London: an expansion of Ark Start Oval and a new site at Ark Start John Keats and a further three nurseries, Ark Start Earls Court, Ark Start All Saints and Ark Start Acton.

• Develop a cluster of Ark Start nurseries in Yorkshire from September 2026, in partnership with other multi-academy trusts.

• Continue working with a broad range of partners to advocate for early years and its importance in establishing foundations for learning.

3

Activities, achievements and performance (continued)

Ark Curriculum Plus

Ark Curriculum Plus (AC+) shares and scales the teaching approaches that have a proven impact in Ark’s schools. Launched as Maths Mastery in 2012, AC+ now offers seven Mastery programmes and works in partnership with 733 schools nationally.

Achievements and performance this year:

• Two programmes were launched to meet the evolving needs of schools: English Mastery Primary and Maths Mastery Secondary.

• Ark’s high-quality Sentence Mastery Sequence, a writing resource to support improvements in the teaching of writing in English, was made freely available, nationally.

• The Education Endowment Foundation extended their support for Maths Mastery, to accelerate take-up and enable 200 schools to benefit from an 80 percent government subsidy.

• Science Mastery was Highly Commended for ‘Evidence and Impact’ in the BESA (British Educational Suppliers Association) Awards in Summer 2025.

• AC+ supported five out of the top 100 most improved schools for pass rates in GCSE English and four out of the top 100 for pass rates in GCSE maths.

• AC+ grew by 15 percent and achieved a renewal rate of 84 percent.

Priorities for 2025/26 are to:

• Support partner schools to deliver high-impact approaches in response to the release of the government’s Curriculum and Assessment Review.

• Provide free sector-wide support as schools adjust to the scale of change.

• Launch a new digital platform, which will provide the foundation for more digital innovation.

• Increase joint working with other outward-facing Ark programmes including Ark Teacher Training.

Ark Start and Ark Curriculum Plus are reported within UK Education, along with any passthrough grants and support to Ark Schools.

EdCity

In 2024, Ark opened the doors to EdCity – a £150 million development in west London – providing facilities for learning, living and working. The campus is a non-profit partnership between Ark and Hammersmith & Fulham Council, including an office block, a nursery, Ark White City Primary Academy, a youth zone, an adult skills hub, and affordable housing.

4

Activities, achievements and performance (continued)

EdCity (continued)

The EdCity office is designed to bring mission-aligned organisations together to focus on improving the lives of children, especially through education. It offers a blend of whole floor office leasing, flexible office workspaces, event space, and commercial uses. In the first year, the building welcomed six other tenants, and membership grew to more than 117 individuals and organisations. Over 50 events were held during the year to foster collaboration and learning, with themes ranging from leadership and school funding to early years and cross-sector collaboration.

Ark is grateful to the Ark trustees, to the London Borough of Hammersmith & Fulham, to Bloomberg, and to all our other partners who have worked to make EdCity a reality.

Future plans:

• The move to EdCity brings new opportunities for collaboration. In 2025/26, work will focus on convening and promoting EdCity as a space to connect, collaborate and learn together.

• The provision of co-working space will be extended, with Ark taking on an additional lease from February 2026 for the 4[th] Floor, which has been made possible following a new grant from Bloomberg.

• In parallel, leasing of the building will continue to be marketed, with the long-term expectation that income generated from the building will support Ark’s work.

Ark Schools

Ark Schools is the main beneficiary of Ark’s fundraising activities. Ark Schools is a multi-academy trust operating 39 academies in Birmingham, Hastings, London and Portsmouth.

Achievements and performance this year:

• Ark Schools remained one of the highest-performing multi-academy trusts in the country for primary outcomes. In 2024/25, 78 percent of children leaving an Ark primary school achieved at least the expected level in reading, writing and maths compared to a national average of 62 percent. At secondary, Ark Schools is the highest performing large multi-academy trust at A level and the highest performing multi-academy trust of any size for BTEC or similar qualifications.

• 86 percent of Ark students progressed to university, more than twice the national average of 37 percent. Of those, 74 percent went to a top third university (versus 41 percent nationally) and 20 percent progressed to a top 15 university.

5

Activities, achievements and performance (continued)

Ark Schools (continued)

Achievements and performance this year (continued):

• Increased opportunities were provided for students across all phases in sport, music, arts, culture, and careers. This year, 4,000 students took part in free music-making activities beyond core music lessons, 2,750 students participated in Ark’s network-wide competitions, and 177 were selected for scholarships in athletics, football and basketball. The expanding Ark Culture programme offered 130 artist-led workshops and performances to 4,700 students in Portsmouth and Hastings. Statutory funding cannot cover all these entitlements, so fundraising is undertaken to support these programmes.

• The Ark Learning Institute, Ark’s centre of excellence for professional development, includes Ark Teacher Training (ATT) – an Ofsted ‘Outstanding’ programme that partners with 168 schools nationally. Over a third (37 percent) of Ark’s early career teachers are graduates of ATT. In June 2025, Ark was awarded a Research Mark Plus from the Chartered College of Teaching for a deeply embedded culture of research and evidence use across settings.

Future plans:

Over the past year, Ark Schools has been developing its strategy for the coming decade. The aim is to see every child across the network reach their full potential, thrive at school, and flourish at the next stage. To achieve this, ambitious goals have been set for academic outcomes and equally stretching goals for thriving at school and beyond. The proposed merger with Pontefract Academies Trust, a group of nine schools in West Yorkshire, will establish a new northern hub and grow the Ark Schools network to 48 schools nationally.

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Principal risks and uncertainties

Risk management

The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to manage those risks. The boards of the charity’s subsidiaries meet regularly and consider the risks that relate to their individual programmes as part of the annual review of business plans. In addition, the Finance and Risk Committee (FRC) reviews the risk register to monitor and manage risks, and to report on these to the board. The FRC meets regularly and at least three times per year. The main risks and mitigating actions are described below.

Operational risks

The principal operational risk relates to a decline in income which, in turn, could limit the ability of the organisation to fund programmes and to cover central administrative costs. To limit this risk, longterm relationships are developed with a diverse group of donors, including individuals, trusts and foundations, and corporates. Typically, donated funds are restricted to specific programmes and can be for both annual and multi-year support.

Other key operational risks include:

• Ensuring AC+ can make sufficient investment to respond to the upcoming curriculum review.

• Loss of key staff. Teams have been strengthened through the development of recruitment and retention strategies, including succession plans, staff wellbeing programmes and the implementation of a flexible working policy.

Financial risks

Ark invests its reserves to achieve the best return consistent with the stability of, and ease of access to, capital. The main risks arising from the charity’s pursuit of its objectives and the policies agreed by the trustees for managing each of these risks are summarised below:

• The effect of increasing costs, as a result of inflation, especially in staffing. Salary budgets are reviewed and controlled as part of the annual budget setting process. Any in-year increases in salaries or new positions are subject to strict review and approval processes.

• Market price risk, arising over the future value of the charity’s investments. The charity engages professionals to manage the investment portfolios and ensures that they are suitably diversified and consistent with the trustees’ investment strategy.

• The EdCity office building is not yet fully let, leading to lower than anticipated income from rentals. To mitigate this, a strong pipeline of both charitable and commercial tenants is being developed.

7

Principal risks and uncertainties (continued)

Financial risks (continued)

• Currency risk, arising over the future value of the charity’s investments, which are partly US denominated. The FRC considers the portfolio of foreign currency assets and liabilities as a whole and has adopted a policy whereby forward currency contracts cover most of any net imbalance.

• Credit risk, representing the potential financial loss that the charity might suffer through its supporters failing to honour the financial pledges that they have made to it. The charity manages this risk by regularly monitoring outstanding pledges, especially the small number of high value pledges that derive generally from supporters who are well known to the charity and the trustees. Furthermore, pledges are not recognised as income in the accounts of the charity until cash is received in line with the charity’s accounting policies on page 31 to 38 of these accounts.

• Liquidity risk, representing the ability of the charity to meet its liabilities as and when they fall due. The charity continues to direct considerable effort to cash flow management and forecasts to ensure cash is available when required. Investment assets have an adequate level of liquidity, allowing the charity to swiftly convert them to cash should this be required.

• Supplier fraud, especially due to the increased sophistication of attempts, continues to concern the trustees. Multi-factor authentication has been implemented to further protect the organisation, with strict new supplier checks imposed. Staff training on fraud and cyber risks continues, alongside ongoing enhancements to cyber security measures. Cyber Essentials accreditation has been achieved, recognising the strength of cyber security controls.

Financial instrument risks

Ark invests liquid funds in a portfolio that includes hedge fund investments. Many of these investments are denominated in US dollars and hence there is both a currency risk and a market risk on the performance of these investments. The risk is limited through diversification of the portfolio across investment strategies and across investment funds. The investment objective is to outperform cash without significantly increasing risk and historically this portfolio has proved to be significantly less volatile than global equity markets, with positive returns in each of the last ten calendar years. Currency risk is managed by monitoring the net imbalance of foreign currency assets and liabilities and the board has approved the use of forward foreign currency contracts to limit currency gains and losses where the imbalance is regarded as excessive. The forward contracts in place effectively offset most of the foreign currency risk.

Law and regulation risks

There are currently no significant legal or regulatory non-compliance risks perceived by the charity and its subsidiaries.

8

Financial review

Ark’s consolidated income in the year to 31 August 2025 totalled £50.3m (2023/24 – £44.8m), of which £37.9m (2023/24 – £31.3m) was related to the development of EdCity (note 14).

Group expenditure during the year was similar to the previous year at £51.7m (2023/24 – £54.1m). EdCity continues to be the major activity with expenditure of £38.0m (2023/24 – £27.7m) during the year, split between charitable activities of £36.3m (2023/24 – £27.7m) which is predominately build costs for the final phase and £1.7m to support the operation of the investment property (2023/24 – £nil). With work on the school and youth zone completed in 2023/24, additional costs incurred this year of £0.3m were expensed. In 2023/24 total costs of £17.7m were donated to Ark Schools and to Hammersmith & Fulham Youth Zone (note 11).

The office reached full practical completion, including the fit-out of the Ark and Ark Schools spaces, in September 2024, and has since been classified as an investment property. The value of the office grew to £56.7m as an investment property at 31 August 2025 (2023/24 – £49.5m as an asset under construction). The gain on revaluation at the point of recognition as an investment asset was £4.3m.

Ark recorded net income of £4.8m for the year as reported in the consolidated Statement of Financial Activities (SoFA), compared to a £6.7m net expenditure in the previous year. This surplus is largely due to the £4.3m revaluation gain, and the deficit in the prior year from paying over a balance of £11.4m when Purposeful Ventures was discontinued (note 22). As a result, group reserves increased to £42.5m at 31 August 2025 (2023/24 – £37.6m).

The £2.4m cost of raising funds was higher than £0.9m in 2023/24 due to the £1.7m cost of operating the investment property. Other costs include a proportion of the Fundraising Team staff costs, based on the percentage of time spent on fundraising for the charity.

Expenditure by the charity differs from the group in that where a grant is made to a subsidiary company, the total amount committed is shown as expenditure (on grants and project operating costs) for the charity, whereas for the group, the value of funds actually spent by the subsidiary is shown, as all intergroup transactions are eliminated. The charity makes grants to subsidiary companies and programmes to support their charitable activities. The aims and objectives of the programmes supported by the charity are consistent with its own and so support of these programmes contributes to the achievement of the charity’s own aims and objectives.

During the period, continuing operations expenditure at the charity level was £7.2m (2023/24 – £32.2m), with the main difference being £22.0m granted to EdCity Office in 2023/24 compared to £nil in the current year.

9

Financial review (continued)

Core fund income and expenditure

Core fund income and expenditure
Contributions arranged by trustees and patrons Bank interest Investment fee rebates Return on investments Other income Total income raised for core costs Less: Expenditure on core costs Surplus on core funds for the year Transfer to restricted fund Balance at 1 September Balance at 31 August	2025 £'000 1,991 47 318 1,484 - 3,840 (2,656) 1,184 (415) 1,975 2,744	2024 £'000
		1,271 121 123 1,965 208
		3,688 (3,222)
		466 (420) 1,929
		1,975

The Core Fund is a designated fund within the unrestricted fund of the charity and group balance sheets. The income and expenditure in this fund are included in the unrestricted section of the charity and group SoFAs and is further supported by note 14 to the accounts. It has been established by trustees to meet the central, or core, administrative costs of the charity. Trustees are major supporters of the charity and make donations to support the core costs. £1,991k was donated in the year for this purpose (2023/24 – £1,271k). The trustees are confident that these funds, together with investment income and Ark’s other sources of core income, will be more than sufficient to cover core cost expenditure in the period ahead.

As the above table shows, at 31 August 2025, a reserve of £2.7m (2023/24 – £2.0m) has been established to cover core costs for the coming year.

Investment fee rebates, included within core income, arise from funds that rebate their fees as a donation to Ark. Where capital is invested in a fund controlled by the trustees of Ark, 100% of fees are donated in this way.

Ark also maintains a general programme fund for funding specific projects as approved by the trustees. At 31 August 2025, a balance of £0.2m was held in this fund (2023/24 – £0.6m), as several projects were pending trustee approval and funding.

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Financial review (continued)

Balance Sheet

The typical life cycle of funding for programmes within Ark Schools that are sponsored by Ark is three to five years and Ark generally underwrite part or all of the cost and set aside reserves at the outset. In the group balance sheet, these programme commitments are shown as grant creditors. The total value of grant creditors in the group balance sheet at 31 August 2025 was £11.5m (2023/24 – £17.1m) of which £8.3m (2023/24 – £9.5m) is due in less than one year.

In addition to the core costs fund, the group also holds an additional amount of £39.7m (2023/24 – £35.7m): £33.8m as restricted funds (2023/24 – £29.7m), which includes £28.6m (2023/24 – £24.5m) in respect of EdCity, £5.7m as endowment funds (2023/24 – £5.4m) held for the benefit of individual academies within Ark Schools, and £0.2m as unrestricted funds held in its General Programme Fund (2023/24 – £0.6m).

This funding model is considered by the trustees to be reasonably prudent and results in a significant balance of cash and investments due to the receipt of funds in advance of application in programmes. Due to funding for programmes received in the year, the total of cash and investments in the group balance sheet is lower than the prior year at £40.0m (2023/24 – £43.9m).

The FRC oversees the group and charity’s cash management. During the year, the group’s main bank accounts were held with Lloyds Banking Group. At 31 August 2025, 100% of the group’s cash was invested in the Lloyds accounts (2023/24 – 100%). The profile of the charity’s cash holdings are dependent on the working capital needs of Ark’s programmes.

At 31 August 2025, the non-cash investments held by the charity represented 62.3% of total cash and invested funds (2023/24 – 79.4%) and the board, on recommendation from the FRC, has approved this as reasonable. The objective for Ark’s investments is to outperform cash without significantly increasing risk. The liquidity of the investments is such that they can easily be redeemed should cash be required. To maximise returns, investment holdings are actively prioritised over cash at bank, and investments are redeemed only when required. While this results in a relatively low net current asset value of £2.8m (2023/24 - £3.5m), the accuracy of cashflow forecasting allows this to be closely monitored to ensure all liabilities are settled as they fall due.

Funds and Reserves

Total reserves at the year-end amounted to £42.5m (2023/24 – £37.6m) for the group and £4.0m (2023/24 – £3.6m) for the charity. Ark’s policy on reserves is to maintain an unrestricted fund (General Programme Fund and Core Costs Fund) at a level that ensures Ark is able to meet its financial commitments and obligations as they fall due, fund unexpected expenditure when unplanned events or programmes occur, and safeguard the charity from uncertainty over future income.

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Financial review (continued)

Funds and Reserves (continued)

The appropriate level of free reserves is set at an amount sufficient to cover unfunded expenditure from unrestricted funds for a minimum period of six months in the event of a significant fall in income. The value of six months’ core (unrestricted) operating expenditure approximates to £1.3m with the year-end unrestricted reserves for costs standing at £2.7m (2023/24 – £2.0m).

Costs are closely monitored to ensure that unrestricted reserves remain sufficient to meet financial commitments and obligations.

Restricted funds

Ark achieves its charitable objectives through direct implementation of projects by its own charitable subsidiaries and by way of grants to partner organisations.

Note 14 shows how these reserves are split across Ark’s various programmes.

Unrestricted funds – General Programme Fund

The majority of funds raised by Ark are for specific purposes and/or charitable projects (i.e. they cannot be used to cover the organisation’s core costs) and are either passed directly to the beneficiary or, for multi-year projects, held as grant creditors until transferred. Where income is not committed to a specific project at the point of receipt, it can be credited to Ark’s General Programme Fund. The General Programme Fund is used to fund specific projects endorsed by the trustees.

Unrestricted funds – Core Costs Fund

The trustees ensure that the central administrative costs of the charity are met through funds set aside specifically for that purpose. In the balance sheet, these funds are shown under unrestricted funds - core costs. The balance held on this fund is broadly equivalent to twelve months’ expenditure on core costs at 2024/25 levels (2023/24 – seven months).

Unrestricted funds – EdCity co-working space

The EdCity co-working space fund comprises income and expenditure relating to the office workspaces and event space provided by the charity within the EdCity office building. The purpose of the project is to develop an educational hub in west London. All income and expenditure relating to the coworking space are unrestricted, as the project generates its own income and the trustee grant funding does not impose restrictions on how its objectives are achieved.

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Financial review (continued)

Investment Policy

The Ark charity had a portfolio of investments (excluding cash) with a market value as at 31 August 2025 of £9.3m (2023/24 – £17.9m). Ark invests to further its charitable aims, taking into consideration the environmental, social, and governance aspects of the investments in line with its values. There are no restrictions on the charity’s power to invest. The investment strategy is set by the trustees and considers income requirements, with the risk profile and the investment manager’s view of the market prospects in the medium term. The overall investment policy is to outperform cash without significantly increasing risk.

Grant-Making Policy

The trustees apply the funds of Ark at their discretion and in accordance with the charitable purposes and objectives of the charity. Grants are made to programmes mostly operated within the Ark family of organisations. Grants are awarded based on the strategic and financial requirements of each programme. Requests are reviewed by the board and are subject to regular reviews of performance against the grant. Expenditure on grant-making is recognised annually in the consolidated statement of financial activities.

Statement of public benefit

Trustees have paid due regard to the Charity Commission’s public benefit guidance and are satisfied that the charity complies with Section 4 of the Charities Act 2011. The sections at the beginning of this trustees’ report dealing with objectives and achievements explain in detail the activities of the charity and the sections of the international community that benefited from Ark’s work. The charity does not rely to any significant extent on the services of volunteers, with the exception of the contribution of time and skills from the trustees and a small number of patrons and advisors.

Approach to fundraising

Ark fundraises from a defined list of individuals, companies, and charitable trusts and foundations. Ark does not conduct mass mailing or telephone campaign fundraising and has no plans to start this kind of fundraising activity. Ark’s network of schools conducts their own fundraising and may use fundraising platforms to promote specific school campaigns, including JustGiving. Ark has a small team of professional fundraisers and support staff. The charity does not outsource fundraising activities. Donor data is handled with care – information is held on a secure database, and files are managed by Ark. Ark is a paid member of the Fundraising Regulator and complies with advice and guidance set by the body. The charity has not received any fundraising complaints.

Trustees’ assessment of going concern status

The trustees have considered the risks facing the charity, the forecast of cash flows, and the level of reserves and are satisfied that Ark will be able to meet all financial obligations as they fall due over the next 12 months following approval of the accounts and therefore conclude that the charity is a going concern.

13

Governance

Governing document

Ark is a company limited by guarantee governed by its Memorandum and Articles of Association dated 12 November 2002 and is registered as a charity with the Charity Commission.

Organisation

The board of trustees, which can have up to 10 members, oversees the charity. The board meets at least twice a year. There is also a programme board to oversee each venture, and a Finance and Risk Committee (FRC). The FRC reports to the board and makes recommendations in their areas of responsibility. Trustee vacancies are advertised, and prospective candidates will meet with members of the Ark senior management team and the Chair of the board of trustees as part of the appointment process. New trustees undergo an induction programme that includes meeting the senior management team, a briefing on their role and responsibilities, and meetings with existing trustees and the Advisor to the board.

The following individuals served as trustees during the financial year and up to the date these financial statements were approved:

Ian Wace (Chair) Anthony Clake Lord Fink Sir Paul Marshall

Executive directors are appointed by the trustees to oversee the day-to-day operations of the charity. The executive directors, referred to as the senior management team, have delegated authority for operational matters including finance and employment.

The following individuals served on the senior management team during the financial year and up to the date these financial statements were approved, except as indicated:

Lucy Heller (Chief Executive) Rosemary Dixon (Director of Strategy) Laurie Grist (Director of Projects) Katie Oliver (Director of Ark Ventures) Jacqueline Russell (Chief Financial Officer) Máire Sloman (Chief People Officer) Resigned 22 September 2025 Venessa Willms (Managing Director of Ark Schools) Appointed 1 September 2025

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Governance (continued)

Remuneration statement

Pay and benefits for the Chief Executive are determined by the Chair of the board in consultation with other board members and the Advisor to the board. When deciding pay and benefits for the rest of the organisation, including the senior management team, salary survey information and other relevant data is used as a benchmark to compare against similar organisations in the voluntary sector.

The Advisor to the board, who is an employee of the charity and has delegated authority from the Ark board, will review and approve all pay proposals for direct reports to the Chief Executive, excluding the Managing Director of Ark Schools, whose remuneration is funded by Ark Schools and approved by the Ark Schools board. Ark salaries, including those of the senior management team, are set on appointment and reviewed annually in accordance with pay review procedures.

Related parties

The charity has established a number of companies to implement its programmes. Subsidiaries are listed in note 18.

Ark Schools is a multi-academy trust that is responsible for the schools that Ark runs in the UK. Ark is the sole member of Ark Schools. Ark Schools is registered in England and Wales as a company limited by guarantee (company number 05112090) and an exempt charity. It has the same registered address as Ark. Ark Schools receives the majority of its income from the UK Government and, due to the requirement for ultimate government control of these funds, does not form part of the group in these accounts.

Ark UK Programmes is responsible for Ark’s work in UK education beyond Ark Schools. Ark UK Programmes is registered in England and Wales as a company limited by guarantee (company number 05932797) and is a registered charity (charity number 1137932). It is wholly owned by Ark and consolidated in these accounts. It has the same registered address as Ark.

The EdCity project is being delivered out of three Special Purpose Vehicles (SPVs):

• EdCity Office (ECO), incorporated on 1 October 2018, is a registered charity and company limited by guarantee (charity number 1184547; company number 11596797). The company was established for the purpose of the development and ongoing management of the EdCity office building, located on the EdCity site.

• EdCity Development Limited, incorporated on 10 August 2018, is a company limited by guarantee (company number 11511870). The company was established for the sole purpose of managing the development of the EdCity project, on behalf of ECO and the other development partners.

• EdCity Management Company Limited, incorporated on 21 August 2018, is a company limited by guarantee (company number 11528726). It is responsible for the estate management of EdCity on behalf of the owners and tenants, including managing the public realm and energy centre.

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Governance (continued)

Related parties (continued)

All EdCity SPVs are wholly owned subsidiaries of Ark and are consolidated in these accounts. They are all registered in England and Wales at the same address as Ark.

Ark established Ark (South Africa) Limited to run the charity’s programmes in sub-Saharan Africa. The directors elected to cease all activities and deregister the entity in September 2023. Ark (South Africa) Limited was formally dissolved by Companies House on 12 November 2024 and has been removed from the Central Register of Charities (previously registered in England and Wales as a charitable company limited by guarantee - company number 04957091; charity number 1108175). This entity is therefore no longer included in the group accounts.

Ark is also affiliated to Absolute Return for Kids US, Inc. (Ark US), a US philanthropic organisation which shares Ark’s mission, and which supports the work of the charity through grants. Following a reduction in US giving, this organisation is currently dormant and is in the process of being dissolved. This entity is therefore not included as part of the group accounts.

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Statement of Trustees’ Responsibilities

The trustees (who are also the directors of Ark for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and the charitable company and of the income and expenditure of the group for that period. In preparing those financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in Accounting and Reporting by Charities: statement of recommended practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);

• make judgements and estimates that are reasonable and prudent;

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

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

The trustees are responsible for keeping proper accounting records and disclosing with reasonable accuracy at any time the financial position of the group and charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees confirms that:

• so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware;

• the trustee has taken all the steps required of trustees to make themselves aware of any relevant audit information and establish that the charity’s auditors are aware of that information.

The confirmation is given and should be interpreted in accordance with the provision of section 418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statement may differ from legislation in other jurisdictions.

17

Statement of Trustees’ Responsibilities (continued)

This report was approved by the board of trustees and signed on its behalf by:

Ian Wace Trustee Approved by the board on 15 April 2026

18

Independent auditor’s report to the members of Absolute Return for Kids (Ark)

Opinion

We have audited the financial statements of Absolute Return for Kids (Ark) (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2025 which comprise the group and charitable parent company statement of financial activities, the group and charitable parent company balance sheets, the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and of the charitable parent company’s affairs as at 31 August 2025 and of the group’s income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

19

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees’ report, which is also the directors’ report for the purposes of company law and includes the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees’ report, which is also the directors’ report for the purposes of company law and includes the strategic report, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report including the strategic report.

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

• adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the charitable parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

20

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charitable company and group through discussions with trustees and other management, and from our knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Charities Act 2011, Companies Act 2006, data protection legislation, employment and, in respect of the EdCity projects, the CIS scheme in relation to taxation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

21

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

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• used data analytics to investigate the rationale behind any significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• reviewing the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing any available correspondence with the charitable company’s legal advisors.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

22

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Katharine Patel (Senior Statutory Auditor) for and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 20 April 2026

23

Consolidated Statement of Financial Activities (including income and expenditure account)

For the year ended 31 August 2025

Notes Income and endowments from: Donations and legacies Donations 2 Donated services 2 Charitable activities Investment income 3a Other 3b Continuing operations Discontinued operations 2 & 22 Total Expenditure on: Raising funds 4 Charitable activities Support to programmes 4 & 5 Continuing operations Discontinued operations 4 & 22 Total Net (expenditure) income before other gains and losses Net gains on unlisted investments 6 & 9 Revaluation gains on investment property 9 (Losses) on foreign currency transactions Net income (expenditure) Fund transfers 14 Net movement in funds 7 Total funds brought forward Total funds carried forward	Unrestricted £'000 3,023 - - 365 338 3,726 - 3,726 685 3,179 3,864 - 3,864 (138) 1,484 - (1) 1,345 (938) 407 2,562 2,969	Restricted £'000 4,518 85 3,620 1,717 36,320 46,260 280 46,540 1,659 45,793 47,452 280 47,732 (1,192) - 4,323 - 3,131 938 4,069 29,728 33,797	Endowments £’000 - - - - - - - - 57 - 57 - 57 (57) 390 - - 333 - 333 5,355 5,688	Year ended 31-Aug-25 Total £'000 7,541 85 3,620 2,082 36,658 49,986 280 50,266 2,401 48,972 51,373 280 51,653 (1,387) 1,874 4,323 (1) 4,809 - 4,809 37,645 42,454	Year ended 31-Aug-24 Total £'000 31,804 442 2,837 364 9,210
					44,657 130
					44,787
					906 41,748
					42,654 11,412
					54,066
					(9,279) 2,621 - (5)
					(6,663) -
					(6,663) 44,308
					37,645

The notes on pages 31 to 67 form an integral part of these financial statements.

There are no recognised gains and losses other than those shown above.

24

Consolidated Statement of Financial Activities (including income and expenditure account) (continued)

For the year ended 31 August 2025

Total income Total expenditure Net income (expenditure) for the year	Continuing operations 2025 £’000 49,986 (51,316) (1,330)	Discontinued operations 2025 £’000 280 (280) -	Year ended 2025 £’000 50,266 (51,596) (1,330)	Continuing operations 2024 £’000 44,657 (42,299) 2,358	Discontinued operations 2024 £’000 130 (11,412) (11,282)	Year ended 2024 £’000 44,787 (53,711)
						(8,924)

The income and expenditure account above excludes the movement on the endowment funds. It is stated before losses/gains on investments and transfers.

The summary income and expenditure account is derived from the statement of financial activities on page 24 which, together with the notes to the financial statements on pages 31 to 67, provide full information on the movements during the year on all the funds of the charity.

Total income of £50,266k (2023/24 – £44,787k) comprises £3,726k (2023/24 – £2,417k) in relation to unrestricted funds and £46,260k (2023/24 – £42,370k) in relation to restricted funds. A detailed analysis of income and expenditure by source is provided in the statement of financial activities and the notes to the financial statements.

Net expenditure for the year of £1,330k (2023/24 – net expenditure of £8,924k) comprises net expenditure of £138k (2023/24 – £805k net expenditure) in relation to unrestricted funds and net expenditure of £1,192k (2023/24 – £8,119k net expenditure) in relation to restricted funds, as shown in the statement of financial activities.

25

Charity Statement of Financial Activities (including income and expenditure account)

For the year ended 31 August 2025

Notes Income from: Donations and legacies Donations 2 Donated services 2 Charitable activities Investment income 3a Other 3b Continuing operations Discontinued operations 2 &22 Total Expenditure on: Raising funds 4 Charitable activities 4 & 5 Continuing operations Discontinued operations 4 &22 Total Net (expenditure) before gains on investment and losses on foreign exchange Net gains on investments 6 (Losses) on foreign currency transactions Net income (expenditure) Fund transfers 14 Net movement in funds 7 Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted £'000 3,023 - 365 338 3,726 - 3,726 685 3,179 3,864 - 3,864 (138) 1,484 (1) 1,345 (938) 407 2,562 2,969	Restricted £'000 2,319 85 - - 2,404 280 2,684 - 3,342 3,342 280 3,622 (938) - - (938) 938 - 1,054 1,054	Year ended 31-Aug-25 Total £'000 5,342 85 365 338 6,130 280 6,410 685 6,521 7,206 280 7,486 (1,076) 1,484 (1) 407 - 407 3,616 4,023	Year ended 31-Aug-24 Total £'000 29,994 442 244 208
				30,888 130
				31,018
				851 31,370
				32,221 130
				32,351 (1,333) 1,971 (5)
				633
				-
				633 2,983
				3,616

The notes on pages 31 to 67 form an integral part of these financial statements.

There are no recognised gains and losses other than those shown above.

26

Absolute Return for Kids (ARK)

Consolidated Balance Sheet

As at 31 August 2025

Company number 04589451

Notes Fixed assets Tangible assets 8 Investment property 9 Investments 6 Current assets Debtors 10 Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 12 Net current assets Creditors: amounts falling due after one year 12 Total net assets Total Funds of the Group Endowment funds Restricted income funds Unrestricted funds: General Programme Fund Core costs fund EdCity co-working space Total Group funds 14	2025 £'000 132 57,342 17,780 75,254 3,839 22,201 26,040 (23,196) 2,844 (35,644) 42,454 5,688 33,797 220 2,744 5 42,454	2024 £'000 49,493 642 24,444
		74,579
		3,980 19,488
		23,468
		(19,983)
		3,485
		(40,419)
		37,645
		5,355 29,728 587 1,975 -
		37,645

The notes on pages 31 to 67 form an integral part of these financial statements. Approved by the board of trustees and signed on its behalf by:

Ian Wace Trustee Date: 15 April 2026

27

Absolute Return for Kids (ARK)

Charity Balance Sheet As at 31 August 2025 Company number 04589451

Notes Fixed assets Investments 6 Concessionary loans 10 Current assets Debtors 10 Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 12 Net current liabilities Creditors: amounts falling due after one year 12 Total net assets Total funds of the Charity Restricted income funds Unrestricted funds: General Programme Fund Core costs fund EdCity co-working space Total charity funds 14	2025 £'000 11,785 4,000 15,785 2,041 3,182 5,223 (10,841) (5,618) (6,144) 4,023 1,054 220 2,744 5 4,023	2024 £'000 18,917 4,500
		23,417
		1,558 3,648
		5,206
		(13,981)
		(8,775)
		(11,026)
		3,616
		1,054 587 1,975 -
		3,616

The notes on pages 31 to 67 form an integral part of these financial statements. Approved by the board of trustees and signed on its behalf by:

Ian Wace Trustee Date: 15 April 2026

28

Consolidated Statement of Cash Flows

For the year ended 31 August 2025

Notes Net cash (used in) provided by operating activities 20 Cash flows from financing activities New borrowings and interest capitalised Loan repayment Net cash (used in) provided by financing activities Cash flows from investing activities Dividends, interest and rent from investments Purchase of property, plant, and equipment Proceeds from sale of investments Transfer of endowments funds Purchase of investments Net cash provided by (used in) investment activities Change in cash and cash equivalents due to exchange rate movements Net change in cash and cash equivalents Cash and cash equivalents at 1 September Cash and cash equivalents at 31 August	Year ended 31-Aug-25 Total £'000 (3,600) - - - 1,615 (2,342) 8,384 - (1,343) 6,314 (1) 2,713 19,488 22,201	Year ended 31-Aug-24 Total £'000 7,262 20,285 (22,060)
		(1,775) 357 (19,132) 11,139 (300) (7,647)
		(15,583) (2)
		(10,098)
		29,586
		19,488

29

Consolidated Statement of Cash Flows (continued) For the year ended 31 August 2025

Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
Cash at bank and in hand Cash and cash equivalents at 31 August	Year ended 31-Aug-25 Total £'000 22,201 22,201	Year ended 31-Aug-24 Total £'000
		19,488
		19,488

Analysis of changes in net debt

Cash at bank and in hand Loans Finance lease obligations Total	At 1 September 2024 £’000 19,488 (32,874) (13,386) (19) (13,405)	Cash flows £’000 2,713 - 2,713 - 2,713	Other non-cash changes £’000 - (113) (113) 6 (107)	At 31 August 2025 £’000
				22,201 (32,987)
				(10,786) (13)
				(10,799)

The notes on pages 31 to 67 form an integral part of these financial statements.

30

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies

Basis of preparation

These financial statements have been prepared for the year to 31 August 2025.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Charities Act 2011 and the Companies Act 2006.

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

The financial statements are presented in sterling and are rounded to the nearest thousand pounds.

The accounts consolidate Ark and its project implementing subsidiaries active during the year: Ark UK Programmes, EdCity Development Limited, EdCity Management Company Limited and EdCity Office. All intra-group balances, transactions, incomes, and expenses are eliminated on consolidation.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

• Estimating the impact of inflation on the charity’s income and expenditure, and assessing income from new sales and activities, for the purpose of preparing cash flow forecasts and budgets to assist in the assessment of going concern;

• Allocating support costs across charitable activities;

• Timing of income recognition for programme fees;

• The basis of allocating costs in relation to the construction and fit-out of the project as capital or as expenditure;

• Classification of leases as finance or operating;

• The discount rate used in assessing the present value of future lease payments for the investment property (Hambling Court); and

• Measurement of fair values of listed investments and the Group’s investment properties.

31

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect of a period of one year from the date of approval of these accounts.

The trustees are confident that despite the challenges from the current economic climate, Ark and its subsidiaries have access to sufficient resources to continue for the foreseeable future. EdCity Office is now operational with several floors let and generating income. The trustees acknowledged the challenges in the rental market and for that reason, decided to fully fund the repayment of the London Borough of Hammersmith & Fulham loan during the prior year. The building continues to be actively marketed. The trustees remain fully committed to Ark.

AC+ has undertaken a full strategic review including a review of programme design to ensure it remains resilient to market and cost pressures.

A number of significant areas of judgement that affect items in the accounts are detailed above. In addition, the most significant areas that affect the carrying value of the assets held by the charity in the next accounting period (the year ending 31 August 2026) are the level of investment return and the performance of the investment and property markets (see the investment policy and the risk management sections of the trustees’ report for more information). Whilst this is likely to lead to a reduction in income, the trustees remain of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

The trustees have concluded that there are adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Fund accounting

Unrestricted funds are those which the donor gives to the charity without stipulating a specific purpose. They are to be used for the furtherance of the objectives of the charity in general and may be applied to specific projects at the discretion of the trustees.

Within unrestricted funds, the charity maintains three separate funds: Core Costs, EdCity co-working space and the General Programme Fund (GPF). The Core Costs fund covers income and expenditure relating to the central administrative costs of the charity. The EdCity co-working space fund comprises income and expenditure related to the office workspaces, event space, and commercial uses provided by the charity in the EdCity office building. The GPF holds income which must be used to fund specific charitable projects as approved and funded by the trustees (i.e. cannot be used to cover the organisation’s core costs).

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Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Fund accounting (continued)

The relevant income is credited to the GPF and when the board commits funds to a specific project, the required amount of funding is either managed directly through the GPF or transferred to the relevant restricted fund.

The endowment fund represents monies invested on behalf of individual Ark academies. Any returns generated on these funds can be used without restriction, but only by the academy in question, and are therefore recognised as restricted income. The initial capital can only be used with agreement of the Secretary of State for Education, unless it is spent on ‘equipment, facilities, accommodation, landscaping and signage’ at the relevant academy. The Ark All Saints Academy endowment is a permanent endowment for which Ark UK Programmes has been appointed as the trustee.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Unrestricted income is accounted for on a receivable basis. Restricted income is accounted for on a receivable basis but subject to recognising any donor restrictions. Where the corresponding programme expenditure can be clearly identified and matched with donor receipts, the income is recorded in the same accounting period as the expenditure and income is deferred if not fully spent. Income is not accrued except where there is a clear contractual entitlement, and such income is then only recognised to the extent that the corresponding expenditure is recorded in the same accounting period. Deposit interest is recognised on an accrual basis.

Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market. An equivalent amount is included as expenditure.

EdCity generates income through the leasing of office accommodation to a range of occupiers, including charities, social enterprises and commercial tenants with a focus on social and educational activities. The long-term objective is for EdCity to generate sustainable rental income from office lettings to support Ark’s charitable activities, with income intended to contribute towards the charity’s core operating costs. The property is managed through a leasing model that enables occupiers to align workspace provision with environmental, social and governance considerations, with social value reflected in the ongoing operation and financial management of the development.

33

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Income (continued)

Investment income from investment properties, investments and bank accounts is recognised in the periods they relate to.

Rental income from the investment property is recognised on a straight-line basis over the lease term.

Property cost recharges are recognised in the period the investment property recharges relate to. These include, but are not limited to, service charge, utility and insurance cost recharges.

Expenditure

Liabilities are recognised as expenditure once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category.

Ark and Ark UK Programmes are registered as a VAT Group with Ark Schools and reclaim VAT on business-related expenditure. Irrecoverable VAT is included in expenditure when incurred.

Costs of raising funds include those incurred in seeking donations for the charity and in publicising the work of the charity. Costs associated with the operation of the Investment property are also included as cost of raising funds from September 2024.

Expenditure on charitable activities comprise expenditure related to the direct furtherance of the charity’s objectives. In the accounts of the charity, the award of a grant is recorded as charitable expenditure and the unexpended amount is held in the balance sheet as a grant creditor. In the accounts of the group, any such grant to a subsidiary company is not recognised as expenditure; instead, the expenditure in the subsidiary is recognised as the charitable expenditure when incurred. Any unspent grant is recognised in the group balance sheet as a restricted fund.

Allocation of overhead and support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office, finance, payroll, and governance costs that support the charity’s programmes and activities. Governance costs are those incurred in connection with the management of the charity’s assets, organisational administration, and compliance with constitutional and statutory requirements.

Where costs cannot be directly attributed, they have been allocated to activities in line with the time spent by individual members of staff or the department on each activity.

34

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Tangible fixed assets

Costs directly attributable to the acquisition or development of an asset which is expected to bring a future economic benefit to the charity and have a useful life exceeding one year are capitalised. Assets in the course of construction are capitalised at cost, but no depreciation is charged until the construction of the asset is complete and ready for its intended use.

The charity’s main asset, the EdCity office building, was first occupied in September 2024 and transferred to investment property from this date to be carried at fair value.

Leasehold improvements are depreciated on a straight line basis over the useful life of the asset or the lease length, whichever is the shorter. Furniture and fittings for the Ark Start nurseries with a combined value of less than £50k and where no individual item is greater than £5k are not capitalised. Items with a combined value of £50k or over, or individual items that are greater than £5k, are capitalised and depreciated over five years. Premises costs are expensed where a nursery is operating under a licence to occupy.

Investment property

Investment properties are held to earn rentals and/or for capital appreciation. They are initially recognised at cost, including directly attributable transaction costs. Further costs directly attributable to the development of an asset which is expected to bring a future economic benefit to the charity and have a useful life exceeding one year are capitalised, including the cost of major renovations and improvements. Subsequently, investment properties are measured at fair value, with changes in fair value recognised in the statement of financial activities in the period in which they arise. The costs of operating, maintenance, repairs and minor improvements are recognised in the statement of financial activities when incurred, including pass-through costs as part of fundraising costs.

Rental income from investment properties is recognised on a straight-line basis over the lease term.

On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is recognised in the statement of financial activities.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise.

35

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Investments (continued)

A fair value hierarchy that prioritises the inputs to valuation techniques is used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The levels of fair value hierarchy are described below:

• Level 1 (listed investments) – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

• Level 2 (unlisted investments) – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable either directly or indirectly; and

• Level 3 (unlisted investments) – Prices or valuation that require inputs that are both significant to the fair value measurement and unobservable.

Investments that trade in markets that are not considered to be active but are valued based on quoted market prices for an identical instrument, dealer quotations, or alternative pricing sources supported by observable inputs are classified within Level 2. As Level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub-sectors.

The method of calculating realised gains on withdrawal of investments is on an average historical cost basis.

Arrangements with other project beneficiaries

EdCity Office acts as a conduit for funding in respect of the development of the school and a proportion of the costs for the development of the nursery, adult education, and youth zone as part of the wider EdCity project. As EdCity Office is not the ultimate beneficiary of these elements of the project, once completed, the amounts were granted to the relevant project beneficiary, effectively reflecting a charitable donation. The share of ongoing running costs post completion is expensed as incurred.

Foreign currencies

Charity

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the rate of exchange ruling at the balance sheet date.

36

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Foreign currencies (continued)

Group

Assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange effective at the balance sheet date. All exchange differences are recognised through the statement of financial activities.

Operating lease

Operating lease rentals are charged on a straight-line basis over the term of the lease. Some of the nurseries are operating on a licence to occupy, and therefore the term of the agreement and ultimate risks and rewards of ownership determines whether it is reported as an operating lease. These are included in the charitable activities expenditure in the statement of financial activities.

Finance lease

A finance lease is recognised when it is determined that the lease arrangement transfers substantially all the risks and rewards of ownership to the lessee.

At the commencement of the lease term, Ark recognises its rights of use and obligations under the finance lease as an asset and a liability in the balance sheet at an amount equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, determined at the inception of the lease. Where the implicit rate cannot be determined, the charity’s incremental borrowing rate is used.

Any initial direct costs are added to the amount recognised as an asset. Subsequently, the minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the effective interest method, to produce a constant rate of change on the balance of the capital repayments outstanding.

Debtors and prepayments

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Accrued income

Accrued income is income which has been earned but not yet received. It must be recognised in the accounting period in which it arises rather than in the subsequent period in which it will be received.

37

Notes to the Accounts

For the year ended 31 August 2025

1. Accounting policies (continued)

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. Grant creditors have been recognised according to the timeline that the funding is expected to be spent over some of which are creditors over one year.

Loans

Concessionary loans, (philanthropic loans which have been given or received at below the prevailing market rate of interest), and commercial loans are initially recognised at the amount received and reviewed annually for impairment.

The balance outstanding at the reporting date includes any interest accrued as per the loan terms agreed.

Discontinued operations

Where a decision has been made to discontinue or terminate an activity in accordance with the definitions contained within FRS 102, income, costs and obligations associated with the discontinuing operation are recognised within the year. The income, costs and obligations are disclosed separately on the face of the statement of financial activities.

38

Notes to the Accounts

For the year ended 31 August 2025

2. Donations and legacies

2. Donations and legacies
Unrestricted funds Contributions to core costs General donations Restricted funds Restricted grants and donations Continuing operations Discontinued operations – Restricted funds Total	Group 2025 £'000 1,991 1,032 3,023 4,603 7,626 280 7,906	Charity 2025 £'000 1,991 1,032 3,023 2,404 5,427 280 5,707	Group 2024 £'000 1,271 694 1,965 30,281 32,246 130 32,376	Charity 2024 £'000
				1,271 694
				1,965 28,471
				30,436 130
				30,566

The trustees ensure that the core costs of the charity are covered, either from grants and donations or in-year investment returns. Grants and donations include £1,991k (2023/24 – £1,271k) raised for this purpose.

The Group received donated services in the amount of £85k (2023/24 – £442k), which related to pro bono services provided by Bain & Co in the form of UK education consultancy services and is included in restricted grants and donations above.

39

Notes to the Accounts

For the year ended 31 August 2025

3a. Investment income

Investment income arises from investments and investment properties. This includes rents and property recharges, dividends, fee rebates and interest receivable.

Bank interest group entities Investment property income Endowment Investment Income Fee Rebates charity Bank interest charity Total	Unrestricted £'000 - - - 318 47 365	Restricted £'000 153 1,438 126 - - 1,717	Total 2025 £'000 153 1,438 126 318 47 2,082	Unrestricted £'000 - - - 123 121 244	Restricted £'000 8 25 87 - - 120	Total 2024 £'000
						8 25 87 123 121
						364

*Group figures are represented by the above table, with charity only figures being unrestricted in nature.

3b. Other

Other income includes recharges from various group entities. Ark charges each of its group entities for central resources such as Finance, HR, IT, and a desk charge for the use of space within its office. At group level, this includes recharges from EdCity Development Limited and EdCity Management Company Limited to the London Borough of Hammersmith & Fulham and the Hammersmith & Fulham Youth Zone for construction and estate costs plus costs charged from EdCity Office to the tenants for rent and property services.

Estate management fee and utilities Income from the development of the EdCity project Non-bank interest Co-working space income Activities related to group entities Total	Unrestricted £'000 - - - 338 - 338	Restricted £'000 255 36,059 6 - - 36,320	Total 2025 £'000 255 36,059 6 338 - 36,658	Unrestricted £'000 - - - - 208 208	Restricted £'000 64 8,880 58 - - 9,002	Total 2024 £'000
						64 8,880 58 - 208
						9,210

*Group figures are represented by the above table, with charity only figures being unrestricted in nature.

40

Notes to the Accounts

For the year ended 31 August 2025

4. Analysis of expenditure

Group

Expenditure on raising funds Cost of raising funds Endowment Investment management fees Direct operating costs of the investment property Expenditure on charitable activities UK Education EdCity EdCity co-working space Endowments - Grants to Ark Schools International Education Continuing operations Discontinued operations Total expenditure	Unrestricted funds Support costs (note 5) Activities undertaken directly £'000 £'000 685 - - - - - 685 - 1,182 - 788 45 - 1,164 - - - - 1,970 1,209 2,655 1,209 - - 2,655 1,209	Restricted funds Activities undertaken directly Grant funding of activities £'000 £'000 - - 57 - 1,659 - 1,716 - 8,756 688 36,349 - - - - - - - 45,105 688 46,821 688 - 280 46,821 968	Total 2025 £'000 685 57 1,659	Total 2024 £'000
				851 55 -
			2,401 10,626 37,182 1,164 - - 48,972 51,373 280 51,653	906 12,820 28,539 - 300 89
				41,748
				42,654
				11,412
				54,066

41

Notes to the Accounts

For the year ended 31 August 2025

4. Analysis of expenditure (continued)

Charity

Expenditure on raising funds Cost of raising funds Expenditure on charitable activities UK Education EdCity EdCity co-working space International Education Continuing operations Discontinued operations Total expenditure	Unrestricted funds Support costs (note 5) Activities undertaken directly £'000 £'000 685 - 685 - 1,182 - 788 45 - 1,164 - - 1,970 1,209 2,655 1,209 - - 2,655 1,209	Restricted funds Activities undertaken directly Grant funding of activities £'000 £'000 - - - - 1,387 1,955 - - - - - - 1,387 1,955 1,387 1,955 - 280 1,387 2,235	Total 2025 £'000 685 685 4,524 833 1,164 - 6,521 7,206 280 7,486	Total 2024 £'000
				851
				851 8,451 22,830 - 89
				31,370
				32,221
				130
				32,351

Group activities undertaken directly represent programmatic work by the central charity and its operating subsidiaries. For the central charity, this represents where charitable expenditure (as opposed to the cost of raising funds) relates primarily to the set-up of new programmes.

Grant funding of activities represents programmatic work carried out by group and non-group companies and funded by grants from the central charity.

Support costs relate to Ark's core staff team and the London office and are covered by the Core Costs Fund. These costs are allocated to programmes to reflect the estimated share of staff time and related cost.

42

Notes to the Accounts

For the year ended 31 August 2025

5. Allocation of support costs

Group and Charity

Group and Charity
Expenditure on charitable activities UK Education EdCity Continuing operations Expenditure on raising funds Total expenditure	Management costs £'000 302 202 504 311 815	Finance £'000 302 202 504 50 554	Governance costs £'000 166 111 277 - 277	Other overheads & support staff £'000 412 273 685 324 1,009	Total 2025 £'000 1,182 788 1,970 685 2,655	Total 2024 £'000
						1,541 830
						2,371
						851
						3,222

Support costs relate entirely to Ark's London office and the core staff team covering fundraising, communications, finance, HR, general management, and administration.

Ark uses this broad definition of core costs and then covers these costs from funds raised and set aside specifically for this purpose.

The table above shows how the resources covered by the core budget are allocated using the two broad categories required under the Charities SORP FRS102, i.e. charitable activities and raising funds, and is based upon an allocation of the time spent by individual members of staff.

43

Notes to the Accounts

For the year ended 31 August 2025

6. Investments

Market value at 1 September Additions to investments at cost Disposals at market value Net unrealised investment gains Transfer to cash Market value at 31 August Cash held by investment managers for reinvestment Cost of listed investments at 31 August Disposals are analysed as follows: Original cost Realised gain Disposals at market value	Group 2025 £’000 23,425 1,355 (9,863) 1,858 (1,480) 15,295 2,485 17,780 8,396 Group 2025 £’000 3,993 5,870 9,863	Charity 2025 £’000 17,930 - (8,615) 1,484 (1,480) 9,319 2,466 11,785 3,624 Charity 2025 £’000 2,848 5,767 8,615	Group 2024 £’000 26,022 7,615 (12,126) 2,740 (826) 23,425 1,019 24,444 11,032 Group 2024 £’000 8,719 3,407 12,126	Charity 2024 £’000
				20,835 6,000 (10,076) 1,971 (800)
				17,930 987
				18,917
				6,472
				Charity 2024 £’000
				6,743 3,333
				10,076

All listed investments were traded on a recognised stock exchange. Investments held by the group at 31 August 2025 comprised the following:

Overseas equities Fixed interest Alternative assets Foreign exchange Short-term deposits Cash Total	2025 £’000 3,400 1,969 9,867 1 58 2,485 17,780	2024 £’000
		3,089 1,883 18,445 8 - 1,019
		24,444

44

Notes to the Accounts

For the year ended 31 August 2025

6. Investments (continued)

Alternative assets include investments in hedge funds. These include foreign exchange forward contracts which are used to ameliorate the risk associated with holding investments in foreign currencies. These are held by the investment managers and form part of their strategy for managing risk.

Unrealised gainsas at 31 August (Cumulative): On investments Reconciliation of movements in unrealised gains: Unrealised gains at 1 September Less: in respect of disposals in the year Cash movement Add: net gains arising on revaluation in the year Unrealised gains at 31 August	Group 2025 £'000 6,920 6,920 12,393 (5,871) (1,467) 1,865 6,920	Charity 2025 £'000 5,695 5,695 11,458 (5,767) (1,480) 1,484 5,695	Group 2024 £'000 12,393 12,393 13,837 (3,333) (825) 2,714 12,393	Charity 2024 £'000
				11,458
				11,458 13,553 (3,333) (800) 2,038
				11,458

7. Net movement in funds

Net movement in funds is stated after charging:

Operating lease charges Depreciation Auditors' remuneration - audit of consolidated accounts - audit of subsidiaries - other audit and tax fees Total	Group 2025 £'000 40 18 43 63 47 211	Charity 2025 £'000 - - 43 - 43 86	Group 2024 £'000 - - 41 52 - 93	Charity 2024 £'000
				- - 41 - -
				41

45

Notes to the Accounts

For the year ended 31 August 2025

8. Tangible fixed assets

Group

Cost: At 1 September 2024 Transfer to investment property Additions At 31 August 2025 Depreciation: At 1 September 2024 Charge for the year Disposals At 31 August 2025 Carrying value: At 1 September 2024 At 31 August 2025	Leasehold improvements 2025 £'000 - - 90 90 - (18) - (18) - 72	Assets under construction 2025 £'000 49,493 (49,493) 60 60 - - - - 49,493 60	Total 2025 £’000 49,493 (49,493) 150 150 - (18) - (18) 49,493 132	Total 2024 £'000
				30,361 - 19,132
				49,493
				- - -
				-
				30,361 49,493

No tangible fixed assets are held by the charity (2023/24 – £nil).

The EdCity office building was transferred from tangible fixed assets to investment property on 1 September 2024.

The remaining tangible fixed assets held by the Group at 31 August 2025 relate to leasehold improvements completed and under construction at Ark Start nursery sites.

46

Notes to the Accounts

For the year ended 31 August 2025

9. Investment property

9. Investment property
Cost or valuation: At 1 September Transfer from tangible fixed assets Additions at cost Change in fair value At 31 August	Hambling Court £'000 642 - - - 642	EdCity office £’000 - 49,493 2,884 4,323 56,700	Total 2025 £’000 642 49,493 2,884 4,323 57,342	Total 2024 £’000
				642 - - -
				642

On 1 September 2024, the EdCity office building was transferred from tangible fixed assets to investment property to reflect the intention of the trustees for the asset to generate a long-term return for Ark. £2,884k of EdCity project costs were capitalised in the year as additions to the investment property (2023/24 – £19,132k as additions to asset under construction) including £nil of capitalised interest (2023/24 – £1,405k as additions to asset under construction).

The EdCity office building was valued on a Fair Value (FRS 102) basis as at August 2025 by Radice Chartered Surveyors in a report dated 10 March 2026 at a valuation of £56.7m, resulting in a gain on revaluation of £4.3m. The report was prepared in accordance with the provisions of the latest version of the RICS Valuation - Global Standards incorporating the IVSC International Valuation Standards and the UK national supplement (‘the Red Book’) issued by the Royal Institution of Chartered Surveyors, on the basis of the market value of the long leasehold interest of the property.

In the group, long leasehold investment property is held at fair value. As the Hambling Court property was purchased on 20 May 2016, the trustees of Ark UK Programmes have performed the valuation of the property based on publicly available information.

Included in the amount for Hambling Court investment property is £13k (2023/24 – £19k) relating to assets held under a finance lease (note 13).

47

Notes to the Accounts

For the year ended 31 August 2025

9. Investment property (continued)

Rents receivable

At 31 August 2025, the future minimum receivables under non-cancellable operating leases in respect of rental income from the charity’s investment property and co-working spaces were as follows:

Operating leases – rents receivable - Within one year - After one, but within five years - After more than five years	Group 2025 £'000 1,494 5,065 2,508 9,067	Charity 2025 £'000 411 736 - 1,147	Group 2024 £'000 - - - -	Charity 2024 £'000
				- - -
				-

10. Debtors

Receivable within 1 year Trade debtors Prepayments and other debtors Accrued income Cash held by property agent VAT debtor Related company debtors (EdCity Office) Related company debtors (Ark UK Programmes and Ark Schools) Concessionary Loans Receivable greater than 1 year Related company debtors (EdCity Office)	Group 2025 £'000 561 704 907 517 411 - 739 3,839 Group 2025 £'000 - -	Charity 2025 £'000 99 144 1,064 102 - 566 66 2,041 Charity 2025 £'000 4,000 4,000	Group 2024 £'000 884 178 1,008 228 1,021 - 661 3,980 Group 2024 £'000 - -	Charity 2024 £'000
				22 16 1,317 - - 63 140
				1,558
				Charity 2024 £'000
				4,500
				4,500

48

Notes to the Accounts

For the year ended 31 August 2025

10. Debtors (continued)

The Charity has made two concessionary loans to EdCity Office as part of funding the investment property. One for £1.0m is due for repayment upon the tenth anniversary of practical completion of the office building at EdCity and is interest free. The other mirrors the terms of the £3.5m loan received from Ambition Institute (note 12), with £0.5m repayable each year from August 2026 and the loan accrues interest at 0.25% above base.

11. Arrangements with other project beneficiaries

EdCity Office has acted as a conduit for funding in respect of the development of the school and a proportion of the costs for the development of the nursery, adult education, and youth zone as part of the wider EdCity project. As EdCity Office is not the ultimate beneficiary of these elements of the project, the amounts contributed towards these elements of the project were initially held on the balance sheet until the asset was ready and available for the purposes intended. At this point, the accumulated contribution was recorded as a grant to the relevant project beneficiary, effectively reflecting a charitable donation. For information, the following amounts had been received and paid during the year by EdCity Office on behalf of third parties. The balance was donated to the third parties on completion of that particular phase (i.e. April 2024 for the youth zone and October 2023 for Ark White City Primary):

White City Primary):
At 1 September 2024 Balance owed at 31 August 2025	On behalf of Hammersmith & Fulham Youth Zone for the youth zone development £’000 - -	On behalf of Ark Schools for Ark White City Primary development £’000 - -	On behalf of LBHF for Nursery and Adult Education Centre development £’000 28 28	Total £’000
				28
				28

49

Notes to the Accounts

For the year ended 31 August 2025

11. Arrangements with other project beneficiaries (continued)

The 2023/24 note has been included below for comparison:

Restated balance held at 1 September 2023 Cash received during the year Donation of contributions to related parties Balance owed at 31 August 2024	On behalf of Hammersmith & Fulham Youth Zone for the youth zone development £’000 3,076 (458) (2,618) -	On behalf of Ark Schools for Ark White City Primary development £’000 13,194 1,863 (15,057) -	On behalf of LBHF for Nursery and Adult Education Centre development £’000 28 - -	Total £’000
				16,298 1,405 (17,675)
			28	28

12. Creditors

Amounts falling due within 1 year are analysed below:

Trade creditors Related company creditors (Ark Schools) Related company creditors (Ark UK Programmes) Grant creditors (Ark Schools) Grant creditors (Ark UK Programmes) Grant creditors (Other) Tax and social security creditors Other creditors Ambition loan (see note 12 (continued)) Deferred income (see note 12 (continued))	Group 2025 £'000 431 1,959 - 7,547 - 791 731 6,412 500 4,825 23,196	Charity 2025 £'000 91 1,228 186 7,547 - 791 34 434 500 30 10,841	Group 2024 £'000 367 2,609 - 8,758 - 724 140 5,710 - 1,675 19,983	Charity 2024 £'000
				60 1,775 2,110 8,758 143 724 42 369 - -
				13,981

50

Notes to the Accounts

For the year ended 31 August 2025

12. Creditors (continued)

Movements in deferred income are analysed below.

Group Programme fees Programme grant Other Total deferred income*	At 31 August 2024 £’000 960 - 715 1,675	Released from previous year £’000 (930) - (715) (1,645)	Deferred in current year £’000 1,145 30 3,620 4,795	At 31 August 2025 £’000
				1,175 30 3,620
				4,825

*£30k (2023/24 £ nil) within Other relates to the charity rent received in advance from co-working space.

Group Programme fees Programme grant Total deferred income	At 31 August 2023 £’000 1,039 25 1,064	Released from previous year £’000 (1,039) (25) (1,064)	Deferred in current year £’000 960 715 1,675	At 31 August 2024 £’000
				960 715
				1,675

Amounts falling due after 1 year are analysed below:

Loans (see below) Finance lease liability (note 13) Grant creditors (Ark Schools) Grant creditors (Other)	Group 2025 £'000 32,487 13 2,602 542 35,644	Charity 2025 £'000 3,000 - 2,602 542 6,144	Group 2024 £'000 32,874 19 6,898 628 40,419	Charity 2024 £'000
				3,500 - 6,898 628
				11,026

The Charity holds a £3.5m loan from Ambition Institute, £0.5m of which is disclosed in short-term creditors. This loan accrues interest at 0.25% above base and is repayable in any amount on three months’ notice. Confirmation has been obtained in July 2025 from the funder that this loan will not be recalled, but repayment of £0.5m will be required annually from August 2026.

51

Notes to the Accounts

For the year ended 31 August 2025

12. Creditors (continued)

Philanthropic loans included in the above balance include the following:

• Loan 1 - £2.4m – Drawn from The Sequoia Trust in February 2023 at 0% interest. The loan is repayable in full on the earlier of the 31 March 2033 or the sale of the office building.

• Loan 2 - £2.4m – Drawn from The Jagclif Charitable Trust in February 2023 at 0% interest. The loan is repayable in full on the earlier of the 31 March 2033 or the sale of the office building.

• Loan 3 - £21.4m - Drawn from Elba Charitable Foundation. The full loan amount is due for repayment by the fifth anniversary of the agreement date, being between October 2026 and December 2027. If not repaid at this point, the loan incurs interest of 2%. Of the £21.4m balance, £5.0m was in respect of amounts drawn down in 2023/24, £14.4m was in respect of amounts drawn down in 2022/23 and £2.0m in respect of amounts drawn down in 2021/22.

• Loan 4 - £3.0m – agreed with the Resolution Trust in 2021/22. The loan plus interest is repayable on the 20 July 2031. Interest accrues at 3%. Interest accrued and not paid on this loan is £287k (2023/24 – £175k).

Commercial Loan agreements:

In 2023/24 EdCity Office drew down a further £15.4m of a of a loan facility with the London Borough of Hammersmith & Fulham (LBHF) taking the total loan financing amount to £22.2m. In July 2024, £22.2m of debt plus £1.2m of interest was repaid and all security was released.

The maturity of loan financing has been analysed below:

Loan repayable terms 0-1 years 1-2 years 2-5 years 5+ years	Group 2025 £'000 500 2,500 20,900 9,087 32,987	Charity 2025 £'000 500 500 1,500 1,000 3,500	Group 2024 £'000 - 500 23,900 8,474 32,874	Charity 2024 £'000
				- 500 1,500 1,500
				3,500

52

Notes to the Accounts

For the year ended 31 August 2025

13. Leasing commitments

The future minimum finance lease payments are as follows:

The future minimum finance lease payments are as follows:
Not later than one year* Later than one year and not later than five years Later than five years Total gross payment Less: finance charges Carrying amount of liability	2025 £'000 - 2 299 301 (288) 13	2024 £'000
		- 2 299
		301 (282)
		19

*Lease payments of £400 are due in no later than one year.

The finance lease element of the property is based on future rental payments and discounted by a long-term interest rate of 5.6% (2023/24 – 4.54%).

The future minimum operating lease payments are as follows:

- Within one year - After one, but within five years - After more than five years	Group 2025 £'000 547 2,149 2,059 4,755	Charity 2025 £'000 477 1,909 1,909 4,295	Group 2024 £'000 - - - -	Charity 2024 £'000
				- - -
				-

Ark signed a 10 year commitment lease with EdCity Office for the Ground and First floor of EdCity as part of the co-working offering.

Two new operating leases were signed by Ark Start during the period to 31 August 2025. The remaining nurseries being used by the charity are held on a licence to occupy with the relevant school.

53

Notes to the Accounts

For the year ended 31 August 2025

14. Analysis of charitable funds

Group

Group
	31 Aug 2024 £'000 5,271 24,457 29,728 - 29,728 5,355 5,355 1,975 587 - 2,562 37,645	Income £'000 8,391 37,869 46,260 280 46,540 - - 2,091 421 1,214 3,726 50,266	Gains/ (losses) and transfers £'000	Expenditure £'000	31 Aug 2025 £'000
Restricted funds UK Education EdCity Continuing operations Discontinued operation (note 22) Total Endowment Funds Endowment held for Ark Schools Unrestricted funds Core funds General programme funds EdCity co-working space Total Total Group Funds			938 4,323	(9,444) (38,008)	5,156 28,641
			5,261 -	(47,452) (280)	33,797 -
			5,261	(47,732)	33,797
			390	(57)	5,688
			390	(57)	5,688
			1,333 (788) -	(2,655) - (1,209)	2,744 220 5
			545	(3,864)	2,969
			6,196	(51,653)	42,454

Restricted funds

UK Education covers all activities relating to Ark Start and AC+ plus pass through grants to improve education in Ark’s schools.

Discontinued operations includes Purposeful Ventures, a spin-out venture from Ark covering the Martingale Foundation and STEM Excellence Portfolio (note 22).

EdCity comprises all activity related to the EdCity project, from construction through to the operation of the estate.

Endowment fund represents monies invested on behalf of individual Ark academies.

Unrestricted funds

Core costs fund covers activity to meet the central, or core, administrative costs of the charity. General programme fund is for funding specific projects as approved by the trustees.

EdCity co-working space fund comprises income and expenditure related to the office workspaces and event space provided by the charity in the EdCity office building.

54

Notes to the Accounts

For the year ended 31 August 2025

14. Analysis of charitable funds (continued)

Charity

Restricted funds UK Education Continuing operations Discontinued operations (note 22) Total Unrestricted funds Core costs fund General programme funds EdCity co-working space Total Total Charity Funds	31 Aug 2024 £'000 1,054 1,054 - 1,054 1,975 587 - 2,562 3,616	Income £'000 2,404 2,404 280 2,684 2,091 421 1,214 3,726 6,410	Gains/ (losses) and transfers £'000 938 938 - 938 1,333 (788) - 545 1,483	Expenditure £'000 (3,342) (3,342) (280) (3,622) (2,655) - (1,209) (3,864) (7,486)	31 Aug 2025 £'000
					1,054
					1,054 -
					1,054
					2,744 220 5
					2,969
					4,023

Income is the amount receivable for each fund during the year including grants, programmes and ventures income, co-working space, returns on investments, recharges and foreign exchange.

Transfers are the net value of funds received as unrestricted funds committed in-year to specific programmes. Unrestricted funding transferred to programmes is agreed annually by the board and is used to further the charitable aims of each programme. Unrestricted funds committed to programmes but not used in full are transferred back to the general programme fund unless there is an agreement with the board to hold these funds for future use.

Expenditure is the amount expended or committed as grants to other entities including other group companies.

55

Notes to the Accounts

For the year ended 31 August 2025

15. Analysis of net assets between funds

Group 2025 Fund balances at 31 August 2025 are represented by: Fixed assets Current assets Creditors: amounts falling due within one year Creditors: amounts falling due in more than oneyear Total net assets Charity 2025	Unrestricted General funds £’000	Restricted funds £’000 69,566 22,855 (22,980) (35,644) 33,797 Unrestricted General fund £’000 - - 3,185 (216) - 2,969	Restricted funds £’000		Endowment funds £’000		2025 Total £’000 75,254 26,040 (23,196) (35,644) 42,454 2025 Total £’000 11,785 4,000 5,223 (10,841) (6,144) 4,023		2024 Total £’000 74,579 23,468 (19,983) (40,419) 37,645 2024 Total £’000
	- 3,185 (216) -		69,566 22,855 (22,980) (35,644)		5,688 - - -
	2,969		33,797		5,688
					Restricted funds £’000 11,785 4,000 2,038 (10,625) (6,144) 1,054
									18,917 4,500 5,206 (13,981) (11,026)
									3,616

56

Notes to the Accounts

For the year ended 31 August 2025

16. Staff costs and numbers

16. Staff costs and numbers
Salaries and wages Social security costs Pension costs Total salary costs Other staff costs Total staff costs	Group 2025 £'000 5,611 623 623 6,857 88 6,945	Charity 2025 £'000 2,140 262 237 2,639 38 2,677	Group 2024 £'000 5,223 556 577 6,356 57 6,413	Charity 2024 £'000
				2,046 242 218
				2,506 13
				2,519

Other staff costs include an accrual for untaken annual leave in the financial year.

Included in salaries and wages were redundancy and ex-gratia severance payments totalling £7k (2023/24 – £nil) in the charity and £7k (2023/24 – £2k) in the group.

The average number of staff employed, analysed by function, was:

Programmes Support services Fundraising	Group 2025 No. 90 22 4 116	Charity 2025 No. 10 17 4 31	Group 2024 No. 79 23 6 108	Charity 2024 No.
				8 18 6
				32

57

Notes to the Accounts

For the year ended 31 August 2025

16. Staff costs and numbers (continued)

The number of staff whose emoluments (excluding employer pension contributions) were in excess of £60,000 during the year were as follows:

£210,001 - £220,000 £130,001 - £140,000 £110,001 - £120,000 £100,001 - £110,000 £90,001 - £100,000 £80,001 - £90,000 £70,001 - £80,000 £60,001 - £70,000	Group 2025 No. 1 1 1 4 - 3 4 6 20	Charity 2025 No. 1 - - 3 - 2 - 2 8	Group 2024 No. 1 - 1 2 1 1 9 10 25	Charity 2024 No.
				1 - - 1 - - 5 4
				11

The pension contributions made on behalf of the above employees were £203k (2023/24 – £210k) in the group and £91k (2023/24 – £92k) in the charity. No benefit other than pension has been provided to employees.

Total remuneration paid to charity key management personnel was £609k (2023/24 – £575k). Key management personnel comprise the CEO, Director of Ark Ventures, Chief Financial Officer, Chief People Officer, Director of Projects, Managing Director of Ark Schools and Director of Strategy. Some members of the key management team are paid by Ark Schools and not directly recharged to the charity.

17. Directors’ remuneration and expenses

The charity did not pay any remuneration to its trustees (2023/24 – £nil). No expenses were reimbursed to or paid on behalf of trustees during the year.

58

Notes to the Accounts

For the year ended 31 August 2025

18. Investments in subsidiaries

Subsidiary Undertaking Ark UK Programmes Ark (South Africa) Limited EdCity Development Limited EdCity Office EdCity Management Company Limited	Country United Kingdom South Africa United Kingdom United Kingdom United Kingdom	Basis of Consolidation 100% ownership 100% ownership 100% ownership 100% ownership 100% ownership	Nature of activities Education Health/Education Construction Real Estate Holding Real Estate Management	Status Trading Dissolved Trading Trading Trading

2025 Income Expenditure Net gains on investments Net movement in funds Total funds brought forward Total funds carried forward Fixed assets Current assets Current liabilities Non-current liabilities Share capital Total funds	Ark UK Programmes £’000 7,254 (7,426) 390 218 9,494 9,712 6,768 6,422 (3,465) (13) - 9,712	EdCity Office £’000 2,204 (2,405) 4,323 4,122 24,551 28,673 56,700 7,197 (1,737) (33,487) - 28,673	EdCity Development Limited £’000 37,263 (37,263) - - - - - 9,617 (9,617) - - -	EdCity Management Company Limited £’000
				871 (850) -
				21 (21)
				- - 364 (362) - (2)
				-

59

Notes to the Accounts

For the year ended 31 August 2025

19. Related party transactions

Group entities:

Other than the transactions and balances with group entities disclosed elsewhere within the notes to these financial statements, and transactions with entities outside the group noted below, there are no further related party transactions to disclose.

Ark Schools:

Ark Schools is a multi-academy trust that is responsible for the schools that Ark runs in the UK. Ark is the sole member of Ark Schools and therefore considered a related party.

Grants to Ark Schools:

During the year, £1,238k of grants were declared by Ark in support of Ark Schools’ programmes (2023/24 - £3,633k). In addition, £16k of grants were declared by Ark in support of Ark Schools’ academies (2023/24 - £66k).

The closing grant creditor due to Ark Schools from Ark was £10,149k (2023/24 – £15,656k) of which £7,547k (2023/24 - £8,758k) was due within one year.

Income received from Ark Schools for expenditure incurred by Ark:

	2025 £’000	2024 £’000
Communications Management team Total	280 140	275 -
	420	275

The closing debtor due from Ark Schools to Ark including intercompany balances was £66k (2023/24 - £102k).

Expenditure paid to Ark Schools:

Expenditure paid to Ark Schools:
	2025 £’000	2024 £’000
Cost of serviced offices IT service costs Finance technology services HR & Governance Other staff costs Total	366 99 25 215 79	762 156 21 200 153
	784	1,292

The closing creditor due to Ark Schools from Ark including intercompany balances was £1,228k (2023/24 – £1,775k).

60

Notes to the Accounts

For the year ended 31 August 2025

19. Related party transactions (continued)

Investments:

Ark holds investments in the MW Eureka Fund, a hedge fund managed by Citco on behalf of Marshall Wace LLP. Anthony Clake, Sir Paul Marshall and Ian Wace are members of Marshall Wace LLP and are also trustees of Ark. Ark Group received £316k fee rebates from MW Eureka Fund for its core operations and EdCity (2023/24 - £124k). This was 100% of the fee charged for managing investments.

The carrying value of investments in the MW Eureka Fund at the balance sheet date of 31 August 2025 was £5.5m (2023/24 – £8.2m). £3.3m shares (2023/24 – £nil) were disposed during the year.

Donations from related parties:

Ark received the following donations from related parties:

Donations received Lord Stanley Fink The Barbara and Stanley Fink Foundation Marshall Wace Asset Management Limited (matched funding) The Eureka Charitable Trust The Jagclif Charitable Trust The Sequoia Trust	2025 £'000 - 50 6 1,410 1,305 1,259	2024 £'000
		50 - 22 250 635 19,645

Lord Stanley Fink is a trustee of Ark.

Marshall Wace Asset Management Limited is the parent company of Marshall Wace LLP. Anthony Clake, Sir Paul Marshall and Ian Wace are all members of Marshall Wace LLP and are trustees of Ark.

Marshall Wace is the main funder of the Eureka Charitable Trust.

Ian Wace is a trustee of the Jagclif Charitable Trust and is also a trustee of Ark.

Sir Paul Marshall is a trustee of the Sequoia Trust and is also a trustee of Ark.

In 2023/24, the charity was gifted £6.0m shares (2024/25 - £nil) in the MW Eureka Fund from the Jagclif Charitable Trust. This income was restricted to the EdCity project. The full amount was redeemed, and the resulting cash was passed on to EdCity Office and used to redeem the loan with the London Borough of Hammersmith & Fulham.

61

Notes to the Accounts

For the year ended 31 August 2025

19. Related party transactions (continued)

Purposeful Ventures:

Lucy Heller is a trustee of Purposeful Ventures and the CEO of Ark.

The following related party transactions with Purposeful Ventures arose in the year:

Income from Purposeful Ventures Payment for back office support by Ark Rent of EdCity space Total	2025 £'000 9 105 114	2024 £'000
		57 -
		57

£19k (2023/24 - £14k) of the amounts above were held as debtors in the balance sheet at year end.

Grants to Purposeful Ventures Strategic support Start-up grants Grants received and paid on (note 22: Discontinued operations) Total	2025 £'000 - 150 280 430	2024 £'000
		112 150 130
		392

£nil (2023/24 - £20k) of the amounts above were held as creditors in the balance sheet at year end.

Bain & Co pro bono strategic support is now being provided directly to Purposeful Ventures.

Now Teach:

Lucy Heller is a director of Now Teach and the CEO of Ark.

Ark recognised £1k (2023/24 – £26k) of income from Now Teach in the year of which £nil (2023/24 - £4k) was held as a debtor on the balance sheet at year end.

62

Notes to the Accounts

For the year ended 31 August 2025

20.Notes to the consolidated statement of cash flows

Reconciliation of net movement in funds to net cash provided by operating activities:

Net income (expenditure) as per the Statement of Financial Activities Adjustments for: Depreciation charge (Gains) on investments Dividends, interest, and rents from investments Realised gain in the year Revaluation reserve movement Expenditure on endowments (Increase) / Decrease in debtors (Decrease) in creditors (excluding endowment and loans) Net cash (used in) provided by operating activities	Group 2025 £'000 4,809 18 (1,874) (2,082) 1,497 (4,323) - (1,490) (155) (3,600)	Group 2024 £'000
		(6,663) - (2,621) (357) 708 - 300 18,345 (2,450)
		7,262

21. Taxation

Absolute Return for Kids (Ark) is a company limited by guarantee, registered in England and Wales, number 04589451, and is a UK registered charity, number 1095322. Given the nature of its activities, the charity will not be subject to income tax or corporation tax on income derived from its charitable activities, as it would fall within the various exemptions available to registered charities.

63

Notes to the Accounts

For the year ended 31 August 2025

22. Discontinued operations - Consolidated

2025 Income from: Donations and legacies: Grants and donations Total income Expenditure on: Charitable activities: Activities undertaken directly Donations to new charity Total expenditure Net expenditure for the year Restricted fund balance at beginning of year Restricted fund balance at end of year	Purposeful Ventures £’000 280 280 - (280) (280) - - -	31 August 2025 Total £’000 280 280 - (280) (280) - - -	31 August 2024 Total £’000
			130
			130
			(1,146) (10,266)
			(11,412)
			(11,282)
			11,282
			-

In 2024/25, two grants totalling £280k were received by Ark on behalf of Purposeful Ventures, which formally discontinued from Ark in November 2023. The grants were subsequently donated onwards.

64

Notes to the Accounts

For the year ended 31 August 2025

22. Discontinued operations – Consolidated (continued)

2024 Income from: Donations and legacies: Grants and donations Total income Expenditure on: Charitable activities Activities undertaken directly Donations to new charity Total expenditure Net expenditure for the year ended 31 August 2024 Restricted fund balance at 1 September 2023 Restricted fund balance at 31 August 2024	Martingale Foundation £’000 - - (726) (5,426) (6,152) (6,152) 6,152 -	STEM Excellence Portfolio £’000 - - (290) (4,840) (5,130) (5,130) 5,130 -	EPG £’000 130 130 (130) - (130) - - -	31 August 2024 Total £’000
				130
				130
				(1,146) (10,266)
				(11,412)
				(11,282) 11,282
				-

During 2024, Education Partnerships Group (EPG) discontinued its activities and was included within the Ark accounts for the last time in full during the year ended 31 August 2024. The charity donation income and support to charities expenditure amount is £nil (2023/24 – £130k).

On 1 November 2023, Martingale Foundation and STEM Excellence Portfolio became part of an independent charity – Purposeful Ventures – and were included within Ark’s consolidated accounts for the last time in full during the year ended 31 August 2024.

65

Notes to the Accounts

For the year ended 31 August 2025

23. Comparative consolidated statement of financial activities for the year ended 31 August 2024

Notes Income and endowments from: Donations and legacies Donations 2 Donated services 2 Charitable activities Investment income 3a Other 3b Continuing operations Discontinued operations 2 & 22 Total Expenditure on: Raising funds 4 Charitable activities Support to programmes 4 & 5 Grants from endowments Continuing operations Discontinued operations 4 & 22 Total Net (expenditure) income before gains on investment and losses on foreign exchange Net gains on investments 6 & 9 (Losses) on foreign currency transactions Net income (expenditure) Fund transfers 14 Net movement in funds 7 Total funds brought forward Total funds carried forward	Unrestricted £'000 1,965 - - 244 208 2,417 - 2,417 851 2,371 - 3,222 - 3,222 (805) 1,971 (5) 1,161 (528) 633 1,929 2,562	Restricted £'000 29,839 442 2,837 120 9,002 42,240 130 42,370 - 39,077 - 39,077 11,412 50,489 (8,119) 66 - (8,053) 528 (7,525) 37,253 29,728	Endowments £’000 - - - - - - - - 55 300 - 355 - 355 (355) 584 - 229 - 229 5,126 5,355	Year ended 31-Aug-24 Total £'000 31,804 442 2,837 364 9,210
				44,657 130
				44,787
				906 41,748 -
				42,654 11,412
				54,066
				(9,279) 2,621 (5)
				(6,663) -
				(6,663) 44,308
				37,645

66

Notes to the Accounts

For the year ended 31 August 2025

24. Post balance sheet events

Post year end, Ark has signed a lease with EdCity Office for the 4[th] floor of 1EdCity.

67