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← Postal Heritage Trust

2025-03-31-accounts

POSTAL HERITAGE TRUST (A company limited by guarantee)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Charity Number: 1102360 Company Number: 4896056

POSTAL HERITAGE TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Contents Page
Legal and administrative information 1
Trustees’ Report (including Strategic Report) 2 - 16
Auditors’ Report 16 - 18
Consolidated Statement of Financial Activities 19 - 20
Consolidated Balance Sheet 21
Charitable Company Balance Sheet 22
Consolidated Cash Flow Statement 23
Notes to the financial statements 24 - 40

POSTAL HERITAGE TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Trustees
Susan Wilkinson OBE Chair
Andrew Adegbemi (appointed 12 June 2025)
Mark Amsden (appointed 27 June 2024)
Paola Barbarino (retired 27 March 2025)
Julian Barker (retired 12 June 2025)
David Gold (retired 25 September 2025)
Hamza Jahanzeb (appointed 12 June 2025)
Courtney Jones (appointed 12 June 2025)
Nicola Kopplemann (appointed 28 January 2025)
Rachel Kuhn (appointed 28 January 2025)
Alix Langley (appointed 25 September 2025)
Ailbhe McNabola (appointed 28 January 2025)
Jacqueline Neville (appointed 25 September 2025)
Susan Raikes (retired 12 June 2025)
Mike Russell
Peter Walls (retired 11 December 2025)
Daniel Wolfe (appointed 28 January 2025)
Laura Wright
Chief Executive Laura Wright
Secretary Lawrence Melinek
Bankers NatWest Bank
Strand
London
WC2N 5JB
Auditors Haysmac LLP
10 Queen Street Place
London
EC4R 1AG
Solicitors Bates Wells
10 Queen Street Place
London
EC4R 1BE
Registered office Calthorpe House
15-20 Phoenix Place
London
WC1X 0DA
Organisation Postal Heritage Trust is a registered charity (number:
1102360) and company limited by guarantee (number:
4896056). The charity is governed by its articles of
association.
Website www.postalmuseum.org

1

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also directors for the purposes of charity law present the annual report and the audited financial statements of the company for the year ended 31 March 2025. The Trustees’ Annual Report includes both the Directors’ Report and the Strategic Report for the purposes of company law.

STRUCTURE, GOVERNANCE & MANAGEMENT

NAME AND REGISTERED OFFICE OF THE CHARITY

Postal Heritage Trust (PHT) is a company limited by guarantee, company number 04896056 and a registered charity in England & Wales charity number 1102360. Its registered address is 15-20 Phoenix Place, London WC1X 0DL. The purposes and business of the company and charity are governed by the memorandum and articles of association.

ORGANISATIONAL STRUCTURE

Postal Heritage Trust (PHT) heads the group of companies which collectively are known, and trade, as The Postal Museum (TPM). Postal Heritage Collection Trust, the other charity in the group, owns the collection of historic material known as The Postal Museum Collection but otherwise, it is not engaged in any trading activities. PHT and PHCT share the same Board members. PHT manages the collection held by PHCT. PHT also owns the entire share capital of two trading subsidiaries, Postal Heritage Services Limited (PHSL), which is engaged in archive services, and Postal Heritage Trading Limited (PHTL), which engages in commercial trading. These financial statements are the accounts of PHT and the consolidated financial statements for the group. This trustees’ report therefore refers to both the work of PHT and to the other constituent members of the group.

The group workforce is conventionally organised through a line management structure, set up by the Board of Trustees. The Chief Executive has an Executive Team that meets weekly. There are regular full staff meetings and team meetings for each of TPM’s departments.

The Board of Trustees sets the remuneration of the Chief Executive, who in turn sets the remuneration of the senior staff in consultation with the Trustee Board’s Audit and Finance subcommittee.

DIRECTORS/TRUSTEES

The Board of Trustees (the Board) is composed of up to fifteen members: ten selected by the Trust via an open selection policy, up to three nominated by Royal Mail Group (RMG), and up to two nominated by Post Office Limited (POL), both following their own internal selection policies. At present, there are nine trustees.

The Board can be added to by co-option, but at present there are no co-opted trustees. Trustees joining the Board receive a full introduction to PHT’s purpose and premises. In addition to a personal briefing, they receive the trustees’ handbook which includes links to the Charities Commission best practice documentation.

In 2024/25, the Board met four times, with other meetings, including conference calls, taking place as and when necessary. The following committees report to the Board: An Audit and Finance sub-committee, reporting on internal and external audit factors and risk, which meets at least four times per year; a Collections sub-committee which meets to consider issues related to the management of TPM’s heritage material; a Nominations sub-committee which meets as and when required.

At the beginning of 2023-24, a decision was made to begin the process of refreshing the Board of Trustees. Many members had served longer than normal terms in order to give continuity to the museum during and after the Covid pandemic and through ongoing loan negotiations. A plan was developed, the first phase of which was the recruitment of a new Chair to replace Rick Wills, the long-standing leader of the Board. This search took place throughout the summer and autumn of 2023 with the nominations committee finally recommending, and the Board appointing, Sue Wilkinson OBE. She took up the role in the March of 2024.

Her appointment will enable the roll out of the next phase of Board recruitment, to find suitably qualified Board members proposed and inducted over a planned period of time. The Board should be refreshed in its entirety by the end of the financial year 2025-2026.

2

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The PHSL and PHTL boards of directors comprise some PHT trustees together with TPM’s Head of Collections (PHSL) and Head of Commercial (PHTL). The PHTL board also includes other directors who are not trustees of PHT. There is a professional advisory board for Archive supplying external expertise in this area.

ACTIVITIES AND PUBLIC BENEFIT- MEETING THE CHARITABLE OBJECTS

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. The public benefit delivered by the group is set out in more detail in the review below.

OUR PURPOSE

WHO WE ARE – OUR MISSION

The Postal Museum tells the story of postal communication and its impact on a global society.

WHAT WE DO – OUR VISION

We use our collection to explore stories around communication, and to inspire everyone to make richer and more meaningful connections in their lives.

OUR VALUES

We will:

OUR STRATEGIC OBJECTIVES

  1. We will create welcoming experiences for anybody to connect with the museum and each other

  2. We will collaborate creatively to deliver content that meets our audience’s needs

  3. We will look after, develop and be curious about our collection to ensure the story of postal communication is relevant, inspiring and inclusive

  4. We will minimize the environmental impact of our activities and communicate effectively about our environmental responsibility

  5. We will develop a sustainable and dynamic business model to enable our work as a charity

3

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

REVIEW OF THE YEAR APRIL 2024 TO MARCH 2025

1. We will create welcoming experiences for anybody to connect with the museum and each other

Audience Development Strategy

Throughout 2024–25, The Postal Museum focused on delivering its Audience Development Strategy and Plan. Rooted in comprehensive research into the needs and motivations of current and potential audiences, the strategy defines our goals for deeper engagement with the public and local communities. It prioritises market development and penetration – leveraging our existing offer to attract targeted audience segments and strengthening relationships with our existing visitors. The plan outlines how we will maintain the successful elements of our current offer while improving or introducing new ones to address key barriers for non-visitors: awareness, price, and relevance.

Visitor surveys conducted onsite and online during 2024–25 indicate we are making strong progress toward these goals. ‘Memory Makers with Children’ has emerged as our largest visitor segment, suggesting The Postal Museum is becoming a “tried and tested” family attraction, bolstered by positive reviews and word-of-mouth. Our Net Promoter Score has remained consistently high, and satisfaction ratings are strong across nearly all areas.

Schools Programme

In 2024–25, 7,299 students and teachers visited the museum. We hosted 235 school classes, with 193 participating in a facilitated, interactive session. Demand for school visits remains high, with most term-time slots fully booked. Notably, visits from Special Educational Needs and Disabilities (SEND) schools increased to 4% of total visits.

Most school visits came from state-maintained primary schools, with 24% from independent schools. Bookings included 29 classes from Camden and Islington, and 33 from London boroughs designated as NPO Priority Places: Barking and Dagenham, Brent, Croydon, Enfield, and Newham. Our Visitor Experience Hosts support each visit, offering staff valuable experience in school engagement.

In September, we successfully renewed our Sandford Award, an independent recognition of educational excellence. The assessor praised our “excellent and enthralling learning experiences for pupils of all ages.”

Teacher feedback has been overwhelmingly positive, with an average rating of 9.5/10 and strong agreement on recommending the museum. Data collected on visit financing shows an average parental/carer contribution of £11.60, which will inform the development of a schools’ bursary scheme.

Highlighted teacher comments include:

“A truly wonderful visit. I was impressed with the inclusivity and all of the support and resources that were available to the children.”

We completed delivery of the Sorting Office Maths Challenge, funded by The Portal Trust, engaging 1,285 students (ages 4–7) through 26 museum sessions and 18 in-school outreach sessions, including visits to schools in Newham and Brent.

We also received £28,215 from A New Direction to deliver The Jolly Postman show to 10 London primary schools. The programme reached 459 students and 87 staff, with 100% of participating schools visiting TPM for the first time. Feedback was highly positive, with many schools incorporating postal themes into their term plans.

An additional £9,800 from Royal Mail Group enabled free virtual Jolly Postman sessions for 60 schools, reaching 1,693 students across the UK, including in Brent, Somerset, Tyne & Wear, and the West Midlands.

Our Home Educators Programme engaged 787 adults and children across 10 themed days. A new maths-themed day received particularly good feedback.

4

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Family Programme

In 2024–25, our family programming—including school holiday events, off-site workshops, and activities—reached 11,625 participants. Feedback was especially positive regarding the support provided by staff and volunteers, with many families highlighting the quality, inclusivity, and intergenerational appeal of the activities. The programme earned a nomination for the Kids in Museums Best Family Museum Award.

Highlights include:

“The assistants were incredible with the kids, and the activities were brilliant!”

New engagement methods were trialled in the Mail Rail depot, creating a flexible and playful environment. Families enjoyed both open-ended and structured activities, with some staying for over an hour:

“My grandson doesn't normally do arts and crafts, but he’s stayed here for two hours and made five pieces of artwork.”

Highlights included:

February half-term: Reached 2,365 visitors in one week.

Our summer 2024 programme was delivered in partnership with OKIDO, a STEAM magazine and CBeebies series. Featuring a themed trail and facilitated activities inspired by the museum collection, the programme reached 4,152 participants, with ~4,000 engaging in the trail. Feedback from visitors and OKIDO was excellent.

Early Years Programme

2024–25 marked the final year of Post and Play, our early years initiative funded by John Lyon’s Charity. We delivered 72 sessions attended by 2,294 children and carers – 670 of whom were Camden residents. Families frequently praised the quality of resources and staff engagement.

We also piloted ‘Post and Play Out and About’ sessions in three Camden Children’s Centres, reaching 176 people. These low-cost, postal-themed activities were designed for replication at home and reached families who were largely unaware of the museum.

Ahead of funding completion, we are collaborating with University of East London academics to evaluate the project and shape the future of early years programming.

Staff Support

Back in 2021/22, with the help of the external facilitators, the museum worked out our key definitions of Equity, Equality, Diversity and Inclusion (EEDI). To progress this work and to embed these definitions further a series of workshops for non-managers was arranged following the sessions delivered to all managers the year before. The highlight was the new EEDI policy, which was promoted by the EEDI group. Several sessions were also arranged with Prospectus on LGBT+ allyship. The group supported the survey on inclusive language and supported other teams with their work. Some of the members took part in several events arranged through the Inclusive Business Network Camden and shared information with others.

Organisational Learning has been a focus for the People and Culture Team, combining efforts in different areas of work, such as aligning HR practices/policies with the museum’s strategic direction and our values, establishing close cooperation and a dialogue with staff and managers, and planning a more strategic and budget conscious training approach.

The management training programme is ongoing, and we are looking for the ways to bring some new elements to the course. Managers are also consulted on various subjects and thematical discussions have been arranged.

5

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

We were proactive and efficient in responding to the legislative changes regarding preventing sexual harassment in October 2024.

The next focus is on creating a Flexible Working Policy to provide an inclusive and fair framework for everyone, building on our existing hybrid working arrangements. The staff number is stable after recovering following the pandemic.

2. We will collaborate creatively to deliver content that meets our audience’s needs

Community Engagement and Participation

In 2024, we welcomed two new Community Programme Producers, who began building strong partnerships with underrepresented groups in Camden and Islington. Our Community Open Days engaged 1,094 local residents, and five Postal Worker Open Days reached 1,525 participants.

The Community Access Scheme enabled 23 local groups to join as members, reducing financial barriers and broadening access to learning opportunities.

We have developed trusted relationships with postal workers across departments, enabling future engagement through outreach, meetings, and event participation.

The Voices of Resistance exhibition allowed us to pilot collaborative approaches involving academics, community researchers, and groups with cultural ties to the Caribbean. Through co-produced outputs, participants deeply shaped the exhibition content:

Access Programme

Our Post Early relaxed events reached 1,070 people in 2024–25. Shaped by consultation, observation, and benchmarking, the events received highly positive feedback:

“I was so impressed by how accommodating and supportive the staff were. It felt like a celebration of neurodiversity!”

New permanent sensory resource trolleys, co-produced with our Access Champion, have removed barriers and empowered visitors to tailor their own experience. Improvements to the Mail Rail depot tested in family programmes were successfully adapted for autistic and neurodivergent visitors.

We also delivered:

Audio-described tours for 12 blind/visually impaired visitors.

These initiatives contributed to a Kids in Museums Best Accessible Museum Award nomination.

Projects and partnerships

In May 2024 we marked the culmination of a major research and engagement project developed in partnership with King’s College London and partners from other UK Universities. Addressing Health looked at health and mortality in the Victorian Post Office and was developed over several years. A celebration event took place where all partners presented their findings.

A new partnership was developed with the University of Huddersfield to explore postal connections with India, and this will be explored more fully during the coming year. An initial conversation also took place with the Open University to consider a project celebrating the letter in literature and possibly culminating on a joint conference.

The team supported the annual Post Office Art Club exhibition, attending their exhibition launch for the first time.

6

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Work in partnership with other museums included support given to the Porthcurno Museum of Global Communications for a funding application they were making and hosting to a visit by the Director of the US National Postal Museum.

3. We will look after, develop and be curious about our collection to ensure the story of postal communication is relevant, inspiring and inclusive

Exhibitions

The Dressed to Deliver exhibition ran from October 2023 to February 2025, exploring postal uniforms across 200 years. It featured original garments, dressing-up stations, crafts, and interviews with Royal Mail staff. The exhibition received extensive media coverage and excellent visitor feedback:

Collections

A major area of focus in 2024-25 continued to centre on research linked to the Royal Mail Steam Packet Ship Company and their links to the Caribbean. This has been a long-term research project led by the Curatorial team and feeding into the new exhibition opening at the end of this reporting period. In November 2024 a second visit was made to the Caribbean Island of St Thomas to develop the relationship with the community partners and undertake filming that would be used in the exhibition. Approaches have been made to lenders to borrow material from several institutions to enrich the display and fill gaps in the story from the Museum’s own collection. Material for the exhibition was signed into the conservation and digitisation studios to prepare this in readiness for display and to support the exhibition design process.

In June two members of the team attended the opening of a refurbished memorial garden to the fallen of the postal service from the two world wars. The museum’s collection was used to provide images to be incorporated into the memorial.

Significant milestones were reached in the year with digital collecting. The new digital preservation system was configured and in June the first material was preserved in the system. Through the year more material was added, with the aim of transferring all digitally born collection material into the system by the end of 2025.

The Collections team worked during the year with the Post Office IT Public Inquiry team, both in ongoing support to the Inquiry though access to archival documents and with the Public Engagement team. The Museum agreed to work with the engagement team on a Horizon Scandal legacy project and committed to supporting the telling of this story though the collections.

In October a full conservation survey and condition report was completed on the Travelling Post Office which is on display in Norfolk. Plans were made to change the exhibition associated with this during the following year.

The conservation team began a project to undertake a more detailed study on the registration sheets of the Penny Black, held within the Archive. Conversations took place with the Victoria and Albert Museum and the National Archives to work with their conservation science teams to undertake the first ever detailed conservation science assessment of these items.

Following changes to the curatorial team we re-prioritised collections care work at the Museum’s off-site store. A dedicated collections care day was planned and work identified to form a series of collections management and collections care days to be diarised over the coming months.

In March the Museum was represented at the unveiling of the first new letter box to bear the cypher of King Charles III in Wales. The team also supported the ongoing management of Royal Mail’s letter box estate via the working group that helps to safeguard historically significant letter boxes around the UK.

7

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The team supported other parts of the organisation with events and programmes including delivering audio described tours, Royal Mail open days and relaxed openings for a neurodiverse audience.

The oral history collection was added to in the year with investment in new equipment and new recordings being undertaken. Amongst the interview to be carried out were some with former staff on the Post Office Railway. These interviews are key to the Museum’s Enhancing Mail Rail project which will be delivered in the following year.

Online engagement

Online engagement continued to grow, with sessions on the museum’s website reaching over 1,335,000, up from just over a million the previous year. As ever most of these visits were to the homepage and Visit pages, driven by rising awareness of the museum amongst our target audiences. However, interest in our online content also grew with almost 235,000 visits to the blog, an increase of around 30,000 compared to 2023-4. Our digital content, developed through cross-departmental collaboration, covered a wide range of topics, with the bulk of content centred around:

Additionally, a continued focus on video content has driven further growth in social media reach and engagement. We took the decision to move away from X (formerly Twitter) and refocus our efforts on TikTok, Instagram and Meta, developing platform-specific content for each and responding to trends. The pneumatic tube, a popular interactive at the museum, continued to drive high views on TikTok, along with rare and unusual treasures from our archives – a number of which went viral. All of this led to remarkable year-on-year increases of over 300% in both reach and engagement metrics on Instagram, and over 350% in TikTok engagement (with a 200% increase in reach). Meanwhile Facebook reach also more than doubled, with engagement increasing by 40%.

4. We will minimize the environmental impact of our activities and communicate effectively about our environmental responsibility

Framework Progress – 2024 Carbon Emissions and Carbon Reduction

On 22[nd] April 2025, Earth Day, the museum published its carbon footprint results for 2024 – https://www.postalmuseum.org/news/environmental-sustainability-2024/. The work to undertake the calculations took place January to March 2025.

The results, calculated by consultants Eight Versa and audited by Natural Carbon Solutions, showed an overall reduction in the museum’s carbon footprint by 190 tCO2 emissions. The reductions across scopes one, two and three were:

Overall, the museum is ahead of its 2024 carbon reduction pathway target by 130 tCO2e.The reductions can be attributed, but not limited, to:

8

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Working Group (ESW)

The group’s Chair continued to meet with teams and departments across the museum to support the process of reviewing the sustainability action plan.

All members completed the Carbon Literacy Training in March (delivered in partnership with The London Transport Museum and Museum Development London). As part of the certification process, each attendee has committed to group and individual actions. These were collated and will be on the agenda during each ESW group meeting.

To support future Carbon Literacy training for museum staff, a member of the working group who represents Education, Access & Learning will be attending a ‘train the trainer’ session.

The Collections team are currently experimenting with timings on the building management system (BMS) to reduce the use of plant to control collection spaces, whilst maintaining good collection care standards. This is being trialled and will be fully studied over the coming months to be reported on via the ESW group and Collections Subcommittee. A more detailed report will be provided to the Board in future.

The Senior Visitor Experience Manager and Visitor Experience Hosts developed a ‘Green Calendar’ to highlight national dates of significance that aim to raise awareness of environmental sustainability initiatives. The group filter relevant dates and share with these with museum staff via the staff memo and SharePoint site.

5. We will develop a sustainable and dynamic business model to enable our work as a charity

Marketing and Communications Strategy

The strategy for 2023-26 delivers against the objectives of the museum’s Forward Plan and incorporates audience aims and insights from the Audience Development Strategy and Plan, to transition to a sustainable long-term visitor model. It recognises and capitalises on our position as a new museum with ample opportunity to improve recognition within existing audiences and centres relevance to audiences to position the museum as knowable, welcoming, and accessible. The strategy takes a digital-first approach to campaigns with joined up Marketing and PR. Digital-first means we will prioritise digital activity supported by traditional marketing and PR, which plays an important part in the campaign mix.

We continued to roll out the brand campaign creative, ‘A ride for their imagination,’ which was developed the previous year. This creative can be adapted for both family and adult targeted ads and includes digital and video, offering a versatile suite of advertising assets with broad appeal and longevity.

Operations and Ticketing

At the end of 2024-25, visitor numbers were 6% greater than forecast and this can be attributed to increasing capacities across timeslots, greater understanding of audiences needs and continuing to open seven days per week during holidays. The museum’s net promoter score of 67.2 is considered excellent (score above 50).

The Visitor Experience and Booking Support teams continue to improve existing procedures to provide excellent visitor experience and satisfaction. This includes ongoing recruitment and training to upskill the team to undertake various tasks such as ticketing, delivering talks and tours, driving the trains and provide queue engagement during peak periods when queuing times increase. The teams also contributed to the development of Customer Behaviour Guidelines to improve confidence in professionally managing difficult situations; this included participating in workshops and followup training. The team worked towards re-introducing cash to the operation.

9

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The Estates Team has overseen the successful completion of several major projects. This included roof repairs to the museum building, the replacement and remedial works to the Mail Rail sliding door, return to service of the upper fire fighter lift, battery replacement to the trains, implantation of health and safety software and reporting, and a major update to the building management system. Additionally, all planned preventative maintenance to the trains, tracks, heating and ventilation systems was completed for the year. A Health & Safety audit took place in March, and the team developed an action plan to commence the work from April 2025 onwards. addressing the high-priority items.

2024-25 was another successful year for the Retail Team. Revenue for the year increased over 11% compared to the previous year. Except for April and October 2025, every month outperformed the same month in 2023, and in December the highest average transactional value was achieved since opening the museum in 2017. The team, in partnership with an eco-fashion brand, launched an exclusive range of bespoke bags that were created using recycled Royal Mail trolley sleeves, improving online and onsite sales. Additionally, to support the Voices of Resistance exhibition, a new range was developed that represents the exhibition’s content – the range is carefully considerate to the sensitivities of the exhibition.

The Venue Hire and Sales team generated circa 27% more revenue than in 2023 - notably the Christmas period’s sales increased by 100%. Data collection improved greatly and has helped us to understand the profile of the year and the types of clients and events that took place – this supported budget and business planning for 20256-26. Operational and procedural standards were also improved to ensure that clients received an excellent service, whilst supporting staff to plan and deliver events more effectively.

Following the appointment of a new caterer in May 2024, revenue increased approximately 5% compared to the previous year and exceeded the forecasted budget by £10k. This resulted in a 20% increase in the commission received by the museum compared to 2023. The service continues to be good; however, improvements are required to the speed of service, and the café furniture.

Fundraising

The museum secured significant grants and donations in 2024-25 alongside our continued support from Royal Mail Group and Post Office Ltd.

We thank all our supporters, named and anonymous, for their generosity to the museum. No complaints have been received in respect of fundraising.

FINANCIAL REVIEW

Reserves

Postal Heritage Trust’s reserves position is under constant monitoring and management. The general policy of the Trustees is to maintain on average, around five months’ worth of unrestricted operating expenditure plus foreseeable capital commitments as working capital in the form of unrestricted cash, to safeguard The Postal Museum’s efficient running and its ability to meet current commitments and to provide stakeholders with assurance about its financial resilience. The nature of the timing of voluntary funding receipts based on agreements with Royal Mail Group and Post Office Ltd, means that this is not always the case but the agreements themselves provide comfort that the museum can

10

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

continue its normal operations. The reserves policy will be kept under regular review to ensure the museum has sufficient resources to continue to meet its strategic aims and objectives.

At the period end, the unrestricted cash balance of £1,929k (2024: £1,780k) represented about 4 months of budgeted operating expenditure and planned capital commitments for financial year 2025/26. The restricted fund cash balance was £345k (2024: £40k). The cash balance at the end of March is always a low point in the museum’s funding cycle, and large receipts from both Royal Mail and Post Office for donations and the archive services agreement are due in April. The reported cash balance at year-end is not considered by trustees to be a cause for concern.

Of the total funds of £12,656k (2024: £12,924k) at the year end, £864k (2024: £121k) were restricted and £11,792k (2024: £12,803k) were unrestricted, £11,497 of which was designated, as detailed below. The designated funds represent the net asset valuation following completion of the capital project.

Overall, the museum made a deficit of £268k (2024: £1,195k deficit) for the 12-month period after the depreciation provision of £1,033k (2024: £1,040k). Excluding depreciation there was a surplus of £766k (2024: £155k deficit). Restricted funds

Unrestricted funds

Designated funds

Fixed Assets
Net Current Assets/(Liabilities)
Long term liabilities - loans		 General
Designated
Restricted
Total
£
£
£
£
2,369,250
16,493,123
519,098
19,381,471
(2,074,234)
876
345,254
(1,728,104)
-
(4,997,056)
-
(4,997,056)
295,016
11,496,943
864,352
12,656,311

Cash flow

As can be seen on the cash flow statement on page 23 the cash balance at the financial year end had increased by almost £455k to £2,274k. This net cash inflow was expected.

Related parties

Postal Heritage Trust (PHT) was formed from the Heritage Services department of Royal Mail in 2004, from whom it received fixed assets and staff.

Royal Mail Group (RMG) originally nominated two members on the Trust’s board upon foundation, and, like Post Office Ltd., (POL) retains the right to nominate at least one board member.

Both RMG and POL have Funding Agreements to 2040 which provide the charity with funds for the general purpose of meeting its charitable objectives. This amounted to £1.56m in the 12 months to 31 March 2024 (2024: £1.53m). They have also transferred some of their intellectual property rights to the group.

11

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

POL and RMG have an Archive Services Agreement with PHT via its trading subsidiary, Postal Heritage Services Ltd (PHSL), which provided the latter with £1,077k of income over the 12 months to March 2024 (2024: £1,057k), for the purpose of maintaining, and providing public access to the RMG /POL archives. This agreement runs until 2040.

Postal Heritage Trust (PHT) and the Postal Heritage Collection Trust (PHCT) are under joint control of the board of trustees. PHCT is a company limited by guarantee. It is a holding entity into which the Royal Mail Museum Collection was transferred on 29 March 2004.

Principal risks and uncertainties

Principal risks

The primary risk is the ability to resolving satisfactorily the historical loans relating to the capital project made to The Postal Museum by Post Office Ltd and Royal Mail. The Postal Museum has signed a Heads of Terms agreement with RM and POL This document and other details are being reviewed by all connected parties to the original loan agreements. Trustees are viewing this in a positive light and, although some details require further clarification and possibly some amendment, they are in the firm belief that this document is the basis of a viable agreement to secure the museum’s long-term future. Pending the outcome of further discussions, neither RM nor POL have indicated any intention to enforce the original loan terms within the next 12 months from the signing of these accounts. Trustees are therefore taking the view that the risk of the museum not being considered as a going concern has been substantially mitigated against.

Trustees consider that the other main risk over this period relates to cash. They are assured by the projected £1.6m cash balance at the end of March 2027 and the projected budgets and cash flow as outlined above provided that agreement can be reached on renegotiating the repayment terms of the loan. Currently the loans are classified in these accounts split between being due within one year and due within more than one year as, whilst the initial terms and conditions were breached as at the year end date, neither RM nor POL have sought repayment of the loan up to December 2024. Additionally, they are reassured by the tight spending controls that the museum has demonstrated since 2018, including a revised operating model which tightly manages third-party contracts in-house and the levers that the museum can pull to increase at quick notice the capacity of the museum, thus driving admissions income.

The Postal Museum’s operational risk profile can be measured against its dependence in a normal year of operations, on income from the following income streams: 28% from admissions income, 45% from fundraising, 18% from services and 9% from commercial activity. The major risks associated with each are as follows:

Admissions Income – The principle financial risks to admissions income are the reliability of the Mail Rail attraction, including the trains, and the demand for tickets from the public. The visitor profile is understood and train reliability is very good, so these risks are rated as “low” in the TPM risk register. TPM’s reputation is also a key factor in attracting visitors, centred on its ability to meet legal standards, and in particular, health, safety, and security obligations.

Fundraising – Much of the fundraising target has been secured through long term agreements with RM and POL but that still leaves a significant sum to be raised each year from various sources. A shortfall in fundraising income is rated “low” in the TPM risk register following mitigating actions. A membership scheme was introduced in 2019 to help build long term loyalty across a broader donor base. No complaints were received in respect of fundraising.

Commercial Income – This income derives from three components: Retail, Food & Beverage (F&B) and Events. F&B is the smallest component and is considered to be of low risk. Retail performance is dependent on a combination of forecast attendance and spend per head being achieved. The novelty of the TPM sites is an attraction for our Events operation, but attracting new business has proved to be very challenging in a postCovid setting with a high inflation economic environment. Based on expected value, the performance of the Events offer is rated “medium” in the TPM risk register.

12

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Services Income – This mainly derives from our management of the archives and public records of both POL and RM. These services are governed by and funded through a long-term agreement, and so the principal risks relate to failure to deliver services to the defined SLA’s and/or loss or damage to the collections; both these eventualities are rated as “low to moderate” risks due to their likelihood of failure following mitigating actions.

Cyber risk

In addition to the above-mentioned risks, the Postal Museum is in the process of safeguarding itself against the risk and consequences of a cyber-attack. Measures being taken include physical, electronic and staff training.

Risk management

The Audit & Finance Sub-Committee oversee the risk management process. The TPM Risk Registers are reviewed by the executive team on a periodical basis with a highlight report being provided to the full Board following each review. The Audit & Finance sub-committee aims to review the full set of registers at least quarterly.

The trustees have considered the financial position of the museum in great detail and note the following:

Lookout period

The strategy and direction of the museum has been outlined in the Forward Plan, the current version of which runs through to 2029. Sitting alongside this is a detailed cash flow projected to the end of financial year 2025/26 with further projections for the next 10+ years. Cash flow projections take account of assumptions concerning projected visitor numbers and future programming. Planned content to be shown within the museum alongside digital and virtual delivery, developed alongside an Audience Development Plan, gives the Trustees confidence that audiences will be attracted to interesting and relevant displays, blogs, talks and events.

This strategy has been strongly endorsed by various funding bodies who generously supported The Postal Museum since opening and especially through the pandemic in 2021 and 2022. External funding from a variety of sources is expected to continue for the foreseeable future. This strategy was reinforced by the award of National Portfolio Organisation (NPO) status by Arts Council England (ACE) covering the 3 years ending March 2026, with a further one year extension granted in April 2024 and another one year extension granted in March 2025. There is a realistic expectation that this will continue for further funding rounds.

Supporting analysis

The Trustees, through the delegated responsibility of the Finance and Audit Committee, regularly review budgets, reforecasts, and cash flow scenarios along with underlying assumptions and risks. Scenario planning underpins the budgets set with constructive challenge coming through committees and the Board. Trustees receive regular updates from the Executive Team which make clear the actions that can be taken to mitigate against any downturns by reducing expenditure at relatively short notice and by avoiding any unnecessary long term large financial commitments. They are also assured of the entrepreneurial nature of the organisation through reports on income generating activities.

Going concern

As is reported in note 1b on page 24, the trustees have considered the charitable group’s forecasts and projections for a period of 15 months from the approval of the financial statements. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future, a minimum of which is a period of twelve months and, subject to the non-enforcement of the loan repayment obligations and in light of the draft agreement to restructure the loan. The charity continues to adopt the going concern basis in preparing its financial statements. The Trustees consider that the conditions described in respect of the historical loans as mentioned above, constitute a material uncertainty which may cast doubt over the charitable company’s ability to continue as a going concern although substantially mitigated by the Heads of Terms agreement referred to above. The working assumption is that this agreement will be formalised in the form of binding contracts.

13

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Trustees are clear that The Postal Museum continues to be a going concern despite the hitherto absence of a permanent agreement with Royal Mail Group Ltd and Post Office Ltd to resolve the historic loans. Both lenders have indicated in a series of meetings and the signed Heads of Terms agreement, that their preferred outcome is for the Postal Museum to continue to exist, and neither has given any indication of any intention to call back the loans in accordance with their contractual rights. Trustees expect a satisfactory outcome.

FUTURE PLANS

Audience

In 2025, we will continue to implement our Audience Development Strategy and Plan which, using the findings from our audience segmentation and audience research, will guide our strategic approach. The plan will be supported by the 3-year Marketing and Communications Strategy, a Commercial Strategy and a Community Engagement Strategy and Plan, which will deliver the aims of audience development.

Jolly Postman 40th Anniversary Programme

Launching in February 2026, it will feature a special exhibition, licensed by Penguin Random House. Jessica Ahlberg has agreed to lend archive materials. Family-friendly experiential designers will be engaged to bring the story to life.

Community Engagement

In 2025–26, we will co-produce a Community Engagement Strategy and Action Plan through creative consultation and continue the Voices of Resistance legacy work. We will also pilot outreach with postal workers in Swindon to better represent the national story.

Content

Research for the forthcoming year will continue to be driven by the Voices of Resistance exhibition. New research will be undertaken into Sir Rowland Hill’s time in South Australia in the 1840sin a senior role with the Post Office. We will also begin research into the Windrush generation and their links to the postal service.

Work to expand the Museum’s collection related to the Horizon IT scandal is also a focus for next year. As part of the partnership with the Public Inquiry Engagement team, the team will explore how this story can be told through the collections, and in outputs such as exhibitions, redisplays and publications.

The team will work towards opening the offsite museum store, readying the site for visits from the public, by refreshing the signage and interpretation.

Voices of Resistance

Slavery and Post in the Caribbean launches April 2025, exploring how British postal ships enabled enslavers to manage plantations via the postal service, and how despite the Slavery Abolition Act in 1833, British postal ships continued to benefit from enslaved labour.

Enhancing Mail Rail

Installation of audio-visual hardware and fit out begins in June 2025, with content development running through the year. Completion is expected by January 2026.

Visitor Experience

The team will develop tours and talks that support the exhibition and enhance the existing tunnel tours.

Estates are focussed on completing the Health and Safety audit actions as per the priority timelines. A fire risk assessment will also be completed and an action plan developed. Planned preventative maintenance is successfully delivered and a similar plan for reactive and cyclical maintenance is needed; software/applications to support this work will be explored and tested.

14

POSTAL HERITAGE TRUST

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The Retail team will be recruiting a new Assistant who is dedicated to working in the onsite shops to drive visitor engagement and conversion to generate more income. The Mail Rail shop is due to be refitted to ensure it matches the aesthetics of Mail Rail and drives conversion and revenue. The team will develop a range for the next temporary exhibition (The Jolly Postman), focussing on improving the online shop to generate more revenue and implementing environmentally sustainable initiatives that support the museum to achieve its net-zero goals.

The events team will be developing new standard operating procedures and training to staff who work during events and birthday parties. In collaboration with Marketing & Communications, we will develop a marketing plan for driving venue hire sales, birthday parties and other opportunities e.g. breakfast and daytime meetings. A supplier tender is also planned, to ensure that an updated approved supplier list is available.

Statement of Trustees’ Responsibilities

The Trustees (who are also Directors for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable Company and the group and of the movement in funds, including the income and expenditure, of the charitable Company and group for that period.

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

In so far as we are aware:

In making its decisions, Trustees have had due regard to the Charity Commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant.

On 19 November 2024 the company’s auditor changed its name from Haysmacintyre LLP to HaysMac LLP.

This report, which includes both the Directors Report and the Strategic Report for the purposes of company law was approved by the Board on 11 December 2025 and signed on their behalf by:

Susan Wilkinson Director

15

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

POSTAL HERITAGE TRUST

FOR THE YEAR ENDED 31 MARCH 2025

Opinion

We have audited the consolidated financial statements of Postal Heritage Trust for the period ended 31 March 2025 which comprise the consolidated statement of financial activities, the consolidated and company balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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.

Material uncertainty relating to going concern

We draw attention to note 1b in the financial statements, which indicates that Postal Heritage Trust has defaulted on its loan repayment obligations and, whilst assurances have previously been obtained from the lenders that they will not enforce debt recovery these assurances are not legally binding and have expired. As stated in note 1b, the trustees expect a satisfactory resolution to current negotiations with the lenders, but these have not concluded at the date of the approval of the financial statements. These matters indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. 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.

16

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

POSTAL HERITAGE TRUST

FOR THE YEAR ENDED 31 MARCH 2025

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee and Strategic Report (which incorporates the strategic report and the directors’ report prepared for the purpose of company law).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 16, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the group/charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and other factors such as income tax, payroll tax and sales tax.

17

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

POSTAL HERITAGE TRUST

FOR THE YEAR ENDED 31 MARCH 2025

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

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

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

Use of our report

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

16[.] December 2025

Jane Askew (Senior Statutory Auditor) December 2025

For and on behalf of Haysmacintyre LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

he UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

18

POSTAL HERITAGE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025

INCOME
Donations and legacies
Donations & Grants - Royal Mail Group Ltd
Donations & Grants - Other
Income from Charitable activities
Admissions and membership
Outreach and exhibitions
Income from other trading activities
Income of trading company - PHSL
Income of trading company – PHTL
Other income
Investment Income
TOTAL INCOME
EXPENDITURE
Charitable activities:
Operation of The Postal Museum
Collections
Outreach and exhibitions		 2025
Unrestricted
2025
Restricted
2025
Total
2024
Total
Notes
4
4
6
6
5
5
5		 £
£
£
£
1,563,526
-
1,563,526
1,524,968
446,373
807,154
1,253,527
445,689
1,746,844
-
1,746,844
1,431,518
58,494
-
58,494
59,409
1,106,781
-
1,106,781
1,089,640
533,305
-
533,305
451,319
18,122
-
18,122
7,902
19,158
-
19,158
12,425
5,492,603
807,154
6,299,757
5,022,870
2,482,732
-
2,482,732
2,363,822
886,963
4,000
890,963
845,356
598,223
69,694
667,917
646,810
Costs of raising funds:
Expenses of charity – PHT 5 888,902
-
888,902
846,042
Expenses of trading company - PHSL 5 1,133,471
-
1,133,471
1,080,530
Expenses of trading company – PHTL 5 503,474
-
503,474
434,873
TOTAL EXPENDITURE
Net (expenditure)/income
Transfer between funds
NET MOVEMENT IN FUNDS
Funds brought forward
FUNDS CARRIED FORWARD		 6,493,765
73,694
6,567,459
6,217,433
(1,001,162)
733,460
(267,702)
(1,194,563)
(9,712)
9,712
-
-
(1,010,874)
743,172
(267,702)
(1,194,563)
12,802,833
121,180
12,924,013
14,118,576
11,791,959
864,352
12,656,311
12,924,013

There were no recognised gains and losses other than those shown in the above Statement of Financial Activities. All income and expenditure of the period was derived from continuing activities. The comparative Consolidated Statement of Financial Activities on page 20 shows the 2024 split between funds.

The notes on pages 24 to 40 form part of these financial statements.

19

POSTAL HERITAGE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 (comparative)

INCOME
Donations and legacies
Donations & Grants - Royal Mail Group Ltd
Donations & Grants - Other
Income from Charitable activities
Admissions and membership
Outreach and exhibitions
Income from other trading activities
Income of trading company - PHSL
Income of trading company – PHTL
Other income
Investment Income
TOTAL INCOME
EXPENDITURE
Charitable activities:
Operation of The Postal Museum
Collections
Outreach and exhibitions		 Year to Mar
2024
Unrestricted
Year to Mar
2024
Restricted
Year to Mar
2024
Total
15 Months
to Mar 2023
Total
Notes
4
4
6
6
5
5
5		 £
£
£
£
1,524,968
-
1,524,968
1,611,991
386,629
59,060
445,689
382,650
1,431,518
-
1,431,518
1,265,626
59,409
-
59,409
82,808
1,089,640
-
1,089,640
1,327,116
451,319
-
451,319
498,399
7,902
-
7,902
21,148
12,425
-
12,425
4,832
4,963,810
59,060
5,022,870
5,194,570
2,350,872
12,950
2,363,822
2,522,348
845,356
-
845,356
901,867
610,185
36,625
646,810
690,678
Costs of raising funds:
Expenses of charity – PHT 5 846,042
-
846,042
913,430
Expenses of trading company - PHSL 5 1,080,530
-
1,080,530
1,369,087
Expenses of trading company – PHTL 5 434,873
-
434,873
618,698
TOTAL EXPENDITURE
Net (expenditure)/income
Transfer between funds
NET MOVEMENT IN FUNDS
Funds brought forward
FUNDS CARRIED FORWARD		 6,167,858
49,575
6,217,433
7,016,108
(1,204,048)
9,485
(1,194,563)
(1,821,538)
-
-
-
-
(1,204,048)
9,485
(1,194,563)
(1,821,538)
14,006,881
111,695
14,118,576
15,940,115
12,802,833
121,180
12,924,013
14,118,577

There were no recognised gains and losses other than those shown in the above Statement of Financial Activities. All income and expenditure of the period was derived from continuing activities.

The notes on pages 24 to 40 form part of these financial statements.

20

POSTAL HERITAGE TRUST (Company Number 4896056)

CONSOLIDATED BALANCE SHEET AT 31 MARCH 2025

2025 2024
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets
Other fixed assets 7 19,300,104 19,300,104 19,862,413
Museum Collection 8 81,367 367 81,367
19,381,471 19,943,780
CURRENT ASSETS
Stock – goods for resale 49,947 49,947 48,544
Debtors and prepayments 10 1,034,732 1,034,732 1,437,815
Cash at bank and in hand 2,274,393 393 1,819,427
3,359,072 3,359,072 3,305,786
CREDITORS: amounts falling due within
one year 11 (5,087,176) (5,012,914)
NET CURRENT (LIABILITIES) / ASSETS (1,728,104) (1,707,128)
TOTAL ASSETS LESS CURRENT LIABILITIES 17,653,367 18,236,652
CREDITORS : amounts falling due after more
than one year
Loans 11 (4,997,056) (5,312,639)
NET ASSETS 12,656,311 12,924,013
FUNDS
Restricted funds: 12 864,352 121,180
Unrestricted funds:
Designated 12 11,496,943 12,510,958
General 12 - -
Trading subsidiary reserves 12 295,016 291,875
12,656,311 12,924,013

The notes on pages 24 to 40 form part of these financial statements.

Approved and authorised for issue by the board of directors on 11 December 2025 and signed on their behalf by:

Susan Wilkinson Director

21

POSTAL HERITAGE TRUST (Company Number 4896056)

CHARITABLE COMPANY BALANCE SHEET AT 31 MARCH 2025

2025 2024
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets
Other fixed assets 7 19,295,544 19,858,422
Investment in subsidiary companies at cost 9 2 2
19,295,546 19,858,424
CURRENT ASSETS
Debtors and prepayments 10 2,161,239 1,645,207
Cash at bank and in hand 872,314 679,144
3,033,553 2,324,351
CREDITORS: amounts falling due
within one year 11 (5,052,115) (4,319,363)
NET CURRENT LIABILITIES (2,018,562) (1,995,012)
TOTAL ASSETS LESS CURRENT
LIABILITIES 17,276,984 17,863,412
CREDITORS: amounts falling due
after more than one year
Loans 11 (4,997,056) (5,312,639)
NET ASSETS 12,279,928 12,550,773
FUNDS
Restricted funds 12 782,985 39,815
Unrestricted funds:
Designated 12 11,496,943 12,510,958
General 12 - -
12,279,928 12,550,773

The notes on pages 24 to 40 form part of these financial statements.

Approved and authorised for issue by the board of directors on 11 December 2025 and signed on their behalf by:

Susan Wilkinson Director

22

POSTAL HERITAGE TRUST (Company Number 4896056)

CONSOLIDATED CASH FLOW STATEMENT AT 31 MARCH 2025

2025 2024
£ £
Cash flows from operating activities
Net (expenditure) for the financial year (267,702) (1,194,563)
Adjustments for
Depreciation 1,033,472 1,040,019
Interest received (19,158) (12,425)
(Increase) / decrease in stock (1,403) (3,685)
(Increase) / decrease in debtors 403,082 (34,536)
Increase / (decrease) in creditors (241,321) 306,419
Net cash generated from operating activities 906,970 101,229
Cash flows from investing activities
(Purchase) of tangible fixed assets (471,162) (44,057)
Interest received 19,158 12,425
Net cash from investing activities (452,004) (31,632)
Cash flows from financing activities
Cash inflow from new borrowing - -
Net increase / (decrease) in cash and cash equivalents 454,966 69,597
Cash and cash equivalents at beginning of the year 1,819,427 1,749,830
Cash and cash equivalents at the end of the year 2,274,393 1,819,427
Movement in net debt
£ £ £ £
At 31 March 2024 Cash flows Non-cash changes At 31 March 2025
Cash at bank and in hand 1,819,427 454,967 - 2,274,393
Loans due within one year (1,737,361) - (315,583) (2,052,944)
Loans due after one year (5,312,639) - 315,583 (4,997,056)
Total (5,230,573) - (4,775,607)

The notes on pages 24 to 40 form part of these financial statements.

23

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

a) Accounting basis

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company and its subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011, and Regulations made thereunder.

In the view of the trustees in applying the accounting policies adopted, no judgements were required, other than the determination of the appropriateness of the going concern basis as out below, that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

b) Going concern

FRS102 requires the trustees to adopt a going concern basis in preparing the financial statements unless they intend to liquidate the charitable company or have no realistic alternative to do so.

Postal Heritage Trust and Postal Heritage Services Ltd have defaulted on their loan repayment obligations to Royal Mail Group Ltd and Post Office Ltd (the lenders). However, the lenders have not exercised their right under the default provisions of the loan agreement, to require immediate repayment of the loan. The Postal Museum has signed a Heads of Terms agreement with RM and POL This document and other details are being reviewed by all connected parties to the original loan agreements. Trustees are viewing this in a positive light and, although some details require further clarification and possibly some amendment, they are in the firm belief that this document is the basis of a viable agreement to secure the museum’s long-term future.

The trustees expect a satisfactory resolution to current negotiations with the lenders, but these have not concluded at the date of the approval of the financial statements. The trustees take comfort from indications by both lenders, including the non-enforcement of the loans, that their preferred outcome is for the Postal Museum to continue to exist and neither has given any indication of any intention to call back the loans in accordance with their contractual rights.

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the company to continue as a going concern. Notwithstanding this material uncertainty, the trustees have made this assessment for a period of at least one year from the date of approval of the financial statements.

In particular the trustees have considered the charitable group’s forecasts and projections for a period of 15 months from the approval of these financial statements to 31 March 2027. After making enquiries the trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future, a minimum of which is a period of twelve months and, subject to the non-enforcement of the loan repayment obligations and agreement to revised terms and conditions as set out in the Heads of Terms within the timeframes noted above.

Trustees are clear that The Postal Museum continues to be a going concern despite the hitherto absence of a permanent agreement with Royal Mail and Post Office Ltd to resolve the historic loans. Both lenders have indicated in a series of meetings and other correspondence that their preferred outcome is for the Postal Museum to continue to exist and neither has given any indication of any intention to call back the loans in accordance with their contractual rights.

24

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

c) Consolidation basis

The consolidated financial statements of Postal Heritage Trust (PHT) include the results, assets and liabilities of the charitable company and its wholly owned trading subsidiary companies, Postal Heritage Services Limited and Postal Heritage Trading Limited on a line by line basis. In addition, the consolidated financial statements include Postal Heritage Collection Trust (PHCT), a charitable company under common control, on a similar basis. In prior years, the consolidated financial statements were prepared by PHCT. The charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006 and has not prepared a separate Statement of Financial Activities.

d) Restricted funds

Restricted funds are to be used for specified purposes, as laid down by the grant-making body or donor.

e) Designated funds

Designated funds have been set aside at the Trustees’ discretion for a specific purpose.

f) Unrestricted funds

Unrestricted funds include donations, consultancy income and other incoming resources received or generated for unspecified charitable purposes.

g) Donations and gifts

Income received by way of donations and gifts is included in the Statement of Financial Activities when received or there is a high probability of receipt.

h) Revenue grants

Revenue grants are credited to incoming resources in the year for which they are receivable. Revenue grants are deferred where the income represents amounts received for future years and are released to incoming resources in the year for which they have been received.

i) Expenditure

All expenditure is accounted for on the accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Such support costs, including governance costs, are allocated between cost of generating funds and resources expended on charitable activities on basis of time spent.

Salaries are allocated to the Postal Heritage Trust and its trading subsidiaries, Postal Heritage Services Limited and Postal Heritage Trading Limited, on the basis of time spent on each activity.

Governance costs, which are allocated consistently with other costs, are those costs relating to the general running of the charity by its trustees and include audit fees and trustee expenses.

i) Operating leases

The costs of operating leases are charged to the Statement of Financial Activities in the year to which they relate.

k) Heritage assets

The charity holds a collection of assets which reflect the history of the postal system. The museum collection is comprised of items which would fall under the definition of heritage assets in FRS 102 where such a heritage asset is defined as an asset “with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture”.

The majority of assets in the collection are not valued on the balance sheet on the basis that appropriate valuations do not exist and could not be obtained at proportionate cost.

25

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

A small number of heritage assets were acquired by purchase in relatively recent past and, in the case of these assets, the cost of purchase is known. The aggregate cost of these assets is shown on the balance sheet. No depreciation is charged.

l) Depreciation and amortisation

The costs of fixed assets with a purchase price of £1,000 or more are capitalised and written off on a straightline basis over their useful lives, as follows:

General office equipment, fixtures, and fittings 5 years Other equipment Variable periods depending on deemed useful asset life Long leasehold property 40 years and 25 years (period of lease)

m) Pension scheme

The charity operates a defined contribution pension scheme under auto-enrolment rules. The scheme is open to all staff subject to them meeting the eligibility criteria. Staff retain the right to opt out of the scheme if they choose to do so. The employer makes contributions to the scheme on behalf of each member.

Employees who were previously members of the Royal Mail Group POS and POPS defined benefit final salary schemes transferred to the charity’s scheme for all contributions from the date of transfer. Those employees retain preserved rights in the Royal Mail Group’s schemes.

n) Intangible assets

The cost of software and exhibition films are treated as intangible assets where the value exceeds £1,000. The accounting policy is to write down these amounts over a period of 5 years on a straight line basis.

2.

STAFF NUMBERS AND COSTS

STAFF NUMBERS AND COSTS
(a)
The average number of employees during the year were as follows:		 2025
2024
Number
Number
97
88

(b) For a 12 month period,

One employee (2024: 1) received remuneration in the band £60,000 - £70,000. One employee (2024: 1) received remuneration in the band £70,000 - £80,000.

No employee (2024: 0) received remuneration in the band £90,000 - £100,000. One employee (2024: 1) received remuneration in the band £110,000 - £120,000

For the purpose of the above disclosure, remuneration refers to salary and taxable benefits in kind only.

Wages and salaries
Social security costs
Pension costs		 2025
2024
£
£
2,654,082
2,419,625
238,083
218,387
164,578
144,760
3,056,743
2,782,772

26

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

During the year, reimbursable expenses of £680 (2024: £753) were paid to 4 (2024: 3) trustees for travelling expenses and subsistence.

The charity made payments of £1,999 (2024: £2,104) in the year for trustees’ indemnity insurance.

Laura Wright was employed as CEO and Trustee of the charity. The legal authority for payments to her was a Charity Commission Order. During the year she received remuneration of £105,704 (2024: £110,910) in respect of her employment. In addition, the charity made contractual pension contributions of £6,342 in respect of her employment.

The total employee benefits of the charity's Key Management Personnel in the year amounted to £471,804 (2024: £469,266).

3.

NET MOVEMENT IN FUNDS FOR THE YEAR
This is stated after charging:
Auditors’ remuneration – audit of parent company
– subsidiary company audits
– other services
Operating leases – land and buildings
Depreciation of fixed assets		 2025
2024
£
£
18,950
15,730
19,176
15,400
4,460
6,325
230,802
217,445
1,033,472
1,040,019

4. DONATIONS AND LEGACIES

Donations & Grants - Royal
Mail Group Ltd and Post
Office Ltd
Donations & Grants - Other
Legacies
Arts Council England Grant
Renovating interactives
Post and play
Sorting Office Maths
Challenge
Jolly Postman virtual
sessions
Primary Arts Touring
Enhancing Mail Rail		 2025
2025
2025
2024
2024
2024
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
1,563,526
-
1,563,526
1,524,968
-
1,524,968
287,575
-
287,575
236,629
-
236,629
13,798
-
13,798
-
-
-
150,000
-
150,000
150,000
-
150,000
-
5,000
5,000
-
-
-
-
27,000
27,000
-
27,000
27,000
-
-
-
-
14,115
14,115
-
9,800
9,800
-
4,995
4,995
-
20,115
20,115
-
-
-
-
745,239
745,239
-
12,950
12,950
2,014,899
807,154
2,822,053
1,911,597
59,060
1,970,657

27

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

5. ANALYSIS OF EXPENDITURE

DIRECT COSTS
Staff Costs
Other staff related
items & consultancy
Property costs
Direct activity costs
Depreciation
SUPPORT COSTS
Staff Costs
Other staff consulting
Auditors remuneration
Trustee Expenses
Other Support Costs
Staff Costs
Other staff related
items & consultancy
Insurance
Post, stationery,
telephone
Office equipment
IT costs
Legal & Professional
Other
Loan interest
Gift Aid to charity
Support cost recharge
Total expenditure 2025
Total expenditure 2024		 2025
PHT
PHSL
PHTL
Collections
Outreach
Operations
Total
£
£
£
£
£
£
£
453,585
319,512
202,822
388,849
130,926
983,141
2,478,835
2,697
788
2,335
4,712
5,042
14,072
29,646
100,826
3,723
866
165,390
177,009
493,827
941,641
71,829
39,873
182,833
117,827
126,104
351,807
890,273
104,876
3,828
-
182,915
195,370
546,483
1,033,472
733,813
367,724
388,856
859,693
634,451
2,389,330
5,373,867
7,082
-
-
11,615
12,430
34,680
65,807
344
-
-
565
605
1,687
3,201
2,162
9,726
9,450
3,320
3,547
9,921
38,126
417
-
-
701
752
2,094
3,964
57,968
-
-
95,089
101,771
283,923
538,751
7,192
-
-
11,803
12,635
35,248
66,878
10,672
-
-
17,505
18,734
52,270
99,181
1,189
168
1,774
1,949
2,088
5,820
12,988
1,633
-
-
2,682
2,866
8,006
15,187
9,891
13,129
1,186
16,228
17,368
48,453
106,255
3,280
2,100
2,415
5,373
5,755
16,055
34,978
6,173
943
14,085
10,123
10,833
30,222
72,379
135,897
-
-
-
-
-
135,897
(36,644)
324,110
16,446
(60,109)
(64,332)
(179,471)
-
(52,167)
415,571
69,262
(85,574)
(91,586)
(255,506)
-
155,089
765,747
114,618
31,270
33,466
93,402
1,193,592
888,902
1,133,471
503,474
890,963
667,917
2,482,732
6,567,459
846,042
1,080,530
434,873
845,356
646,810
2,363,822
6,217,433

28

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

ANALYSIS OF EXPENDITURE (2024 comparative note)

DIRECT COSTS
Staff Costs
Other staff related
items & consultancy
Property costs
Direct activity costs
Depreciation
SUPPORT COSTS
Staff Costs
Other staff consulting
Auditors remuneration
Trustee Expenses
Other Support Costs
Staff Costs
Other staff related
items & consultancy
Insurance
Post, stationery,
telephone
Office equipment
IT costs
Legal & Professional
Other
Loan interest
Gift Aid to charity
Support cost recharge
Total expenditure 2024
Total expenditure 2023		 2024
PHT
PHSL
PHTL
Collections
Outreach
Operations
Total
£
£
£
£
£
£
£
409,523
308,970
160,748
351,076
118,208
887,637
2,236,162
5,846
222
728
9,584
10,257
28,622
55,259
95,428
3167
680
156,535
167,532
467,386
890,728
69,665
26,079
182,836
114,278
122,305
341,210
856,373
105,645
2,825
-
184,256
196,803
550,490
1,040,019
686,107
341,263
344,992
815,729
615,105
2,275,345
5,078,541
8,745
-
-
14,343
15,350
42,826
81,264
4,469
-
-
7,339
7,851
21,909
41,568
1,795
7,700
7,700
2,756
2,944
8,235
31,130
1,131
-
-
1,903
2,041
5,684
10,759
53,762
-
-
88,189
94,386
263,320
499,657
1,652
-
-
2,711
2,902
8,096
15,361
11,686
-
-
19,169
20,515
57,237
108,607
1,133
159
2,074
1,857
1,989
5,544
12,756
845
-
-
1,388
1,483
4,142
7,858
10,169
9,116
2,808
16,684
17,856
49,813
106,446
1,565
2,103
2,258
2,564
2,746
7,661
18,897
5,775
1,400
7,744
9,470
10,135
28,275
62,799
141,790
-
-
-
-
-
141,790
(33,894)
315,000
-
(55,598)
(59,504)
(166,004)
-
(50,688)
403,789
67,298
(83,148)
(88,989)
(248,262)
-
159,935
739,267
89,882
29,627
31,705
88,476
1,138,892
846,042
1,080,530
434,873
845,356
646,810
2,363,822
6,217,433
913,430
1,369,087
618,698
901,867
690,678
2,522,348
7,016,108

29

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

6. RESULTS FROM TRADING SUBSIDIARIES

Postal Heritage Services Limited is a wholly owned trading subsidiary of Postal Heritage Trust incorporated in England and Wales.

Income and Expenditure:
Turnover
Cost of sales
Gross (loss) / profit for the year before tax
Interest Received
Profit for the year
Retained profit at 1 April
Retained profit for the financial year
Donation to parent charity in respect of 2023 profit
Donation to parent charity in respect of 2024 profit
Retained profit at 31 March / 31 December
Balance Sheet:
Fixed Assets
Debtors
Cash
Creditors
Net Assets
Funds
Share Capital
Reserves
Net Assets		 2025
2024
£
£
1,086,180
1,072,670
(809,361)
(765,530)
276,819
307,140
20,601
16,970
297,420
324,110
138,219
129,109
297,420
324,110
-
(315,000)
(324,110)
-
111,529
138,219
4,560
3,991
774,387
708,926
1,198,408
952,094
(1,865,825)
(1,526,792)
111,530
138,219
1
1
111,529
138,218
111,530
138,219

Postal Heritage Services Limited has produced audited accounts for the year to 31 March 2025.

30

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

6. RESULTS FROM TRADING SUBSIDIARIES (continued)

Postal Heritage Trading Limited is a wholly owned trading subsidiary of Postal Heritage Trust incorporated in England and Wales.

Income and Expenditure:
Turnover
Cost of sales
Gross profit / (loss) for the year before tax
Interest Received
(Loss) / profit for the year
Retained profit at 1 April
Profit / (loss) for the financial year
Donation to parent charity in respect of 2023 profit
Donation to parent charity in respect of 2024 profit
Retained profit at 31 March / 31 December
Balance Sheet:
Stock
Debtors
Cash
Creditors
Net Current Assets
Creditors fallings due after more than one year
Net Assets
Funds
Share Capital
Reserves
Net Assets		 2025
2024
£
£
533,305
451,319
(487,028)
(434,872)
46,277
16,447
-
-
46,277
16,447
153,655
137,208
46,277
16,447
-
-
(16,446)
-
183,486
153,655
49,947
48,544
84,020
27,334
203,671
188,187
(154,151)
(110,409)
183,487
153,656
-
-
183,487
153,656
1
1
183,486
153,655
183,487
153,656

Postal Heritage Trading Limited has produced audited accounts for the year to 31 March 2025.

31

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

7. FIXED ASSETS

Group
Cost
At 1 April 2024
Additions during the year
At 31 March 2025
Depreciation
At 1 April 2024
Charged during the year
At 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024
Charitable Company
Cost
At 1 April 2024
Additions during the
year
At 31 March 2025
Depreciation
At 1 April 2024
Charged during the year
At 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024		 Group
Cost
At 1 April 2024
Additions during the year
At 31 March 2025
Depreciation
At 1 April 2024
Charged during the year
At 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024
Charitable Company
Cost
At 1 April 2024
Additions during the
year
At 31 March 2025
Depreciation
At 1 April 2024
Charged during the year
At 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024		 Long term
Lease
Fixtures,
fittings and
equipment
Plant &
Equipment
Work in
progress
Intangible
Assets
Total
£
£
£
£
£
£
21,796,159
2,761,874
2,696,586
-
181,565
27,436,185
-
23,798
9,633
437,731
-
471,162
21,796,159
2,785,672
2,706,219
437,731
181,565
27,907,347
3,621,183
1,963,161
1,807,863
-
181,565
7,573,772
545,714
253,834
233,923
-
-
1,033,472
4,166,897
2,216,995
2,041,786
-
181,565
8,607,243
17,629,262
568,677
664,433
437,731
-
19,300,104
18,174,976
798,714
888,723
-
-
19,862,413
Long term
Lease
Fixtures,
fittings and
equipment
Plant &
Equipment
Work in
progress
Intangible
Assets
Total
£
£
£
£
£
£
21,796,159
2,691,192
2,696,586
-
181,565
27,365,502
-
19,401
9,633
437,731
-
466,765
21,796,159
2,710,593
2,706,219
437,731
181,565
27,832,267
3,621,183
1,896,469
1,807,863
-
181,565
7,507,080
545,714
250,006
233,923
-
-
1,029,643
4,166,897
2,146,475
2,041,786
-
181,565
8,536,723
17,629,262
564,118
664,433
437,731
-
19,295,544
18,174,976
794,723
888,723
-
-
19,858,422

32

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

8 . MUSEUM COLLECTION / HERITAGE ASSETS

The collection was transferred by Royal Mail at the time the charity was established. No value has been attributed to this collection as stated in the accounting policies note. Subsequent additions to the collection have been valued at cost. There were no additions to the collection during the year (2020: nil). No formal valuation has been made of the collection.

Nature and scale of the assets

The museum’s collection, which comprises over 60,000 objects and thousands of documents, is classified under the following categories:

All aspects of acquisition and disposal are outlined in the Acquisition and Disposal Policy 2010 which has the approval of the Board of Trustees.

Policy for the acquisition, preservation, management and disposal of heritage assets

The heritage assets of The Postal Heritage Collections Trust are the objects that form the museum collection. The majority of the museum collection was gifted to the Trust in 2004 by Royal Mail Group. Further acquisitions have since been made, by purchase through private sale and auction; and by donation, from Royal Mail and members of the public. The collection is managed to the Accreditation Standard, a national standard managed by the Arts Council England, the government body responsible for Museums and Libraries. Preservation of the museum collection in perpetuity is fundamental to the work of museums and this is undertaken through good collection knowledge, safe packing and housing and good house- keeping. Proactive conservation is undertaken where appropriate; usually related to a project. Disposal from the museum collections is undertaken in line with professional standards, including the Accreditation standard and all disposals are in line with the Museums Association’s Code of Ethics for Museums. Disposals from the museum collection are never financially motivated.

Assets reported on the balance sheet

Heritage assets reported on the balance sheet are all reported at cost.

assets reported on the balance sheet are all reported at cost.
Additions Cost of Disposals
Year to 31 March 2025 Nil Nil
Year to 31 March 2024 Nil Nil
15 months to 31 March 2023 Nil Nil
Year to 31 December 2021 Nil Nil
Year to 31 December 2020 Nil Nil

33

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

Transactions relating to heritage assets

From time to time, the trustees approve the transfer of certain duplicate philatelic material for the purposes of sale in support of the capital project to deliver a new Postal Museum / Mail Rail centre. No material from the museum’s unique collections has ever been transferred, only duplicate material has been affected. No transfers took place in 2025 (2024: nil).

9.
INVESTMENTS
Investments in subsidiary undertakings at cost
The investments in subsidiary undertakings represent:		 2025
2024
£
£
2
2

(i) The £1 issued share capital in Postal Heritage Services Limited, a company registered in England and Wales.

(ii) The £1 issued share capital of Postal Heritage Trading Limited, a company registered in England and Wales.

The results of both companies are shown in note 6 together with balance sheet information.

10.
DEBTORS
Trade debtors
Due from subsidiary undertakings
Prepayments and accrued income
VAT
Other debtors		 2025
2024
Group
Charity
Group
Charity
£
£
£
£
682,572
561,357
1,200,689
538,992
-
1,199,025
-
888,325
312,744
284,752
165,221
146,410
-
76,696
-
-
39,416
39,409
71,905
71,480
1,034,732
2,161,239
1,437,815
1,645,207

34

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

11. CREDITORS

Amounts falling due within one year
Trade creditors
Taxation and social security
Accruals
Deferred income
VAT
Loan interest
Loans
Due to subsidiary undertakings
Other creditors		 2025
2024
Group
Charity
Group
Charity
£
£
£
£
269,662
257,798
177,014
165,713
64,547
64,547
62,538
62,538
1,044,927
1,010,006
915,818
882,948
583,507
583,507
1,101,269
567,895
44,870
-
129,082
13,076
989,679
989,681
853,782
853,782
2,052,944
2,052,944
1,737,361
1,737,361
-
56,592
-
-
37,040
37,040
36,050
36,050
5,087,176
5,052,115
5,012,914
4,319,363
Deferred income reconciliation
Opening balance at 1 April 2024
Add: Advances
Less: Revenue recognised
Closing balance at 31 March 2025		 Group
Charity
£
£
1,101,269
567,895
3,425,259
2,337,381
(3,399,082)
(2,321,769)
1,127,446
583,507

Income is recorded as deferred in these accounts where funds have been received in advance of entitlement. This mainly relates to funds received from Royal Mail Group and Post Office Limited in respect of the contractual archive service agreement and the Deed of Donation.

Amounts falling due after more than one year
Loans
The above loans are repayable:
In less than one year
Between one and two years
Between two and five years
After more than five years		 2025
2024
Group
Charity
Group
Charity
£
£
£
£
4,997,056
4,997,056
5,312,639
5,312,639
2,052,944
2,052,944
1,737,361
1,737,361
323,295
323,295
315,583
315,583
847,971
847,971
1,604,134
1,604,134
3,825,790
3,825,790
3,392,922
3,392,922
7,050,000
7,050,000
7,050,000
7,050,000

With the exception of an interest free amount of £550,000, interest on the loans is payable at an annual rate of 2.5%. Interest did not start to accrue until the first anniversary of practical completion of the Postal Museum project. Practical completion occurred on 17 August 2017. The loans are secured over four bank accounts, at the balance sheet date. The Trust’s trading subsidiary, Postal Heritage Services Ltd, has also provided a guarantee in respect of the loans.

The Trust and Postal Heritage Services Ltd have defaulted on their loan repayment obligations to Royal Mail Group Ltd and Post Office Ltd. However, the lenders have not exercised their right under the default provisions

35

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

11. CREDITORS (continued)

of the loan agreement, to require immediate repayment of the loan. The lenders have issued a Heads of Terms agreement which is expected to form the basis of a final settlement agreement as further disclosed in note 1b of

the accounting policies on page 24. It is expected that a satisfactory resolution that is acceptable to all parties will be reached in the near future following the signing off of these accounts and on that basis the trustees continue to consider it appropriate in order for the accounts to show a true and fair view to disclose an element of the loans as repayable after one year.

Trustees are clear that The Postal Museum continues to be a going concern despite the hitherto absence of a permanent agreement with Royal Mail and Post Office Ltd to settle the historic loans. Both lenders have indicated in a series of meetings and other correspondence that their preferred outcome is for the Postal Museum to continue to exist and neither has given any indication of any intention to call back the loans in accordance with their contractual rights.

12.
FUNDS 2024/25
RESTRICTED
Postal Heritage Collection Trust
Digitised memorial books
Addressing Health Project
Sorted upgrade
Post and play
Sorting Office Maths Challenge
Jolly Postman virtual sessions
Jolly Postman Show
Renovating interactives
Enhancing Mail Rail
UNRESTRICTED -DESIGNATED
Collection fund
Tangible fixed assets
UNRESTRICTED - GENERAL
Postal Heritage Trust
Postal Heritage Services Limited
Postal Heritage Trading Limited		 Brought
forward
Income
Expenditure
Transfers
Carried
forward
£
£
£
£
£
81,367
-
-
-
81,367
5,914
-
-
-
5,914
4,000
-
(4,000)
-
-
251
-
(251)
-
-
16,486
27,000
(30,821)
-
12,665
8,336
-
(18,048)
9,712
-
4,826
9,800
(3,532)
-
11,094
-
20,115
(17,042)
-
3,073
-
5,000
-
-
5,000
-
745,239
-
-
745,239
121,180
807,154
(73,694)
9,712
864,352
876
-
-
-
876
12,510,082
-
-
(1,014,015)
11,496,067
12,510,958
-
-
(1,014,015)
11,496,943
-
3,852,517
(5,197,376)
1,344,859
-
138,219
1,106,781
(809,361)
(324,110)
111,529
153,656
533,305
(487,028)
(16,446)
183,487
291,875
5,492,603
(6,493,765)
1,004,303
295,016
12,924,013
6,299,757
(6,567,459)
-
12,656,311

36

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

12. FUNDS (continued)

RESTRICTED FUNDS

Postal Heritage Collection Trust holds the value of the collection owned by the museum. The value in the Balance Sheet represents the items of known value.

The balance against digitised memorial books represents the value of the unspent grant received for this activity.

The balance of the Addressing Health Project funds received towards a joint project with Kings College and the University of Derby were spent on the year.

Funding for upgrading Sorted! was provided by a Patron. The balance of the donated funds were spent in the year.

Post and Play is a learning activity funded by the John Lyons Charitable Trust.

Sorting Office Maths Challenge is a learning activity funded by The Portal Trust. This project has concluded.

The Jolly Postman virtual sessions are funded with the support of Royal Mail.

The Jolly Postman show is funded by A new Direction.

A patron has provided funding to aid with renovating the museum’s interactives.

Enhancing Mail Rail is a capital project intended to further develop the Mail Rail visitor experience This work was funded by the Post Office Remembrance Fellowship (PORF).

DESIGNATED FUNDS

Collection Fund – Income from the disposal of collection assets held against future collection purchases or collection preservation expenditure.

Tangible fixed assets – funds tied up in the fixed asset and related loans of the parent charitable company.

UNRESTRICTED FUNDS

General fund – funds available to the charity for unrestricted use, which include grant income in respect of the period to 31 March 2025.

COMPANY

The funds of charitable company only are as above, excluding the general funds related to Postal Heritage Services Limited and Postal Heritage Trading Limited, and the restricted fund related to Postal Heritage Collection Trust.

37

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

FUNDS 2023/24
RESTRICTED
Postal Heritage Collection Trust
Digitised memorial books
Addressing Health Project
Sorted upgrade
Post and play
Sorting Office Maths Challenge
Jolly Postman virtual sessions
Enhancing Mail Rail
UNRESTRICTED -DESIGNATED
Collection fund
Tangible fixed assets
UNRESTRICTED - GENERAL
Postal Heritage Trust
Postal Heritage Services Limited
Postal Heritage Trading Limited		 Brought
forward
Income
Expenditure
Transfers
Carried
forward
£
£
£
£
£
81,367
-
-
-
81,367
5,914
-
-
-
5,914
4,000
-
-
-
4,000
5,000
-
(4,749)
-
251
11,716
27,000
(22,230)
-
16,486
3,698
14,115
(9,477)
-
8,336
-
4,995
(169)
-
4,826
-
12,950
(12,950)
-
-
111,695
59,060
(49,575)
-
121,180
876
-
-
-
876
13,739,686
-
-
(1,229,604)
12,510,082
13,740,562
-
-
(1,229,604)
12,510,958
-
3,422,851
(4,967,455)
1,544,604
-
129,109
1,089,640
(765,530)
(315,000)
138,219
137,210
451,319
(434,873)
-
153,656
266,320
4,963,810
(6,167,858)
1,229,604
291,875
14,118,577
5,022,870
(6,217,433)
-
12,924,013
13.
ANALYSIS OF NET ASSETS BETWEEN FUNDS 2025
Fixed Assets
Net Current Assets/(Liabilities)
Long term liabilities - loans
ANALYSIS OF NET ASSETS BETWEEN FUNDS 2024
Fixed Assets
Net Current Assets/(Liabilities)
Long term liabilities - loans		 General
Designated
Restricted
Total
£
£
£
£
2,369,250
16,493,123
519,098
19,381,471
(2,074,234)
876
345,254
(1,728,104)
-
(4,997,056)
-
(4,997,056)
295,016
11,496,943
864,352
12,656,311
General
Designated
Restricted
Total
£
£
£
£
2,039,692
17,822,721
81,367
19,943,780
(1,747,817)
876
39,813
(1,707,128)
-
(5,312,639)
-
(5,312,639)
291,875
12,510,958
121,180
12,924,013

38

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

14. FINANCIAL COMMITMENTS

At 31 March 2025 the group had the following commitments under non-cancellable operating leases.

Due in less than1 year
Due 2-5 Years		 2025
2024
£
£
188,512
188,512
-
-

15. RELATED PARTY TRANSACTIONS

Postal Heritage Trust (PHT) has taken advantage of the exemptions within FRS102 from disclosing related party transactions with Postal Heritage Collection Trust (PHCT), Postal Heritage Services Limited (PHSL) and Postal Heritage Trading Limited (PHTL). The charities SORP requires disclosure of the results and balance sheet positions of the subsidiaries. This information is provided in note 6 in respect of PHSL and PHTL. PHCT has minimal activity. In 2024/25 it received no grants of heritage assets (2024: nil) and at the balance sheet date held heritage assets at a cost of £81,367 (2024: £81,367).

Royal Mail Group (RMG) and Post Office Ltd (POL) have a funding agreement to 2040 to provide PHT with £1,563,526 in the 12 months to 31 March 2025 (2024: £1,524,968) of unrestricted funds, for the general purpose of meeting its charitable objectives. RMG has also transferred some of its intellectual rights to PHT.

RMG and POL have an Archive Services Agreement with PHT and its trading subsidiary, PHSL, which provided the latter with £1,077,313 in the 12 months to 31 March 2025 (2024: £1,056,564) of unrestricted funds for the purposes of maintaining the Royal Mail archives.

RMG and Post Office Limited (POL) have both signed legal agreements with PHT and PHSL related to the museum and to future funding, which will provide income to PHT in the form of unrestricted funds, index linked, until 2040.

RMG provides services to PHT and as at the year end, there was no balance owing (2024: nil).

The disclosures around related parties should be read in conjunction with Note 1 (b) Going concern on page 24 which states that the Trust and Postal Heritage Services Ltd have defaulted on their loan repayment obligations to Royal Mail Group Ltd and Post Office Ltd. In the event of such a default, the Loan Agreements provide Royal Mail Group Ltd and Post Office Ltd with rights to demand immediate repayment. However, whilst reserving their rights, both Royal Mail Group Ltd and the Post Office Ltd have confirmed to the Trust that they are not presently intending to exercise those rights in the next 12 months.

The Heads of Terms agreement which was signed on 17 June 2024 establishes the clear intention for all parties to set aside the existing contractual obligations and to replace them with a set of new contractual agreements that are sustainable for the museum whilst also being acceptable to all stakeholders including the Charity Commission and the Heritage Lottery Fund.

Trustees are clear that The Postal Museum continues to be a going concern despite the hitherto absence of a permanent agreement with Royal Mail and Post Office Ltd to settle the historic loans. Both lenders have indicated in the signed Heads of Terms agreement that their preferred outcome is for the Postal Museum to continue to exist, and neither has given any indication of any intention to call back the loans in accordance with their hitherto existing contractual rights.

39

POSTAL HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

16. PENSIONS

For the purposes of FRS102 the group cannot identify its share of the underlying assets and liabilities of the defined benefit schemes in which it participates in respect of seven employees. Up until February 2023, PHT made pension contributions based on the advice of a qualified independent actuary whose calculations were based upon total scheme membership. A fundamental change in the defined benefit schemes occurred as a result of the passage of the Postal Services Act 2011, with the transfer of all the historic liabilities of the Royal Mail Pension Plan (RMPP) to the new government-backed Royal Mail Statutory Pension Scheme (RMSPS) as at 31 March 2012. Those already receiving a pension, and those who had left service but contributed to the pension prior to 31 March 2012, will receive it from the RMSPS; those who continue to contribute after 31 March 2012 will, upon retirement, receive pensions from both schemes. The public accounts of both RMG and POL schemes indicate that currently these pension schemes are both in surplus. The RMSPS closed to PHT staff at the end of February 2023, and all staff who were members of that scheme were transferred to the defined contribution scheme associated with PHT, for future contributions. Staff who were transferred from the RMSPS retain preserved rights in that scheme, and PHT has no exposure in respect of those rights.

PHT makes pension payments of at least 6% as an employer contribution to a defined contribution scheme for the remainder of its eligible employees who have opted into the scheme.

17 LIABILITY OF MEMBERS

The Postal Heritage Collection Trust is a company limited by guarantee. The liability of each member in the event of a winding up amounts to £1.

18. CAPITAL COMMITMENTS

At 31 March 2025 the group had £562,269 capital commitments (2024: nil).

40