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2025-12-31-accounts

The Royal Air Force Club (A charity and company limited by guarantee)

Trustees Annual Report and Consolidated Financial Statements for the Year Ended 31 December 2025

Registered Address

The Royal Air Force Club, 128 Piccadilly, London. W1J 7PY

Charity Details

Charity registration number ~ 1108295

Company Details

Company registration number ~ 05321353

A Company registered by Guarantee.

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Contents

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Foreword from the Chair of the Board of Trustees Page 1
Trustees, Officers and Advisors, Reference and Administrative Information Page 2
Financial Statements Declaration, Governance, Management and Risk Pages 3 & 4
Group Structure, Governance Code and Charitable Objects Pages 5 & 6
The Wider RAF Family and the Club’s Vision Mission and Values Page 7
The Club Strategy and Plans for the Future Page 7
Environmental Strategy and Fundraising Strategy Page 8
Club Committees Pages 9 to 12
Contribution by Club Volunteers Page 12
Staff Engagement, Staff Awards and Staff Visits to RAF Stations Pages 12 & 13
Financial Review Pages 14 & 15
2026 Outlook Page 15
Capital Improvements to the Club House and The Club as a Going Concern Page 16
Key Management Personnel & Remuneration, The Reserves Policy & the
Page 16
Investment Policy
Statement of Trustees Responsibilities Page 17
Independent Auditors’ Report Pages 18 to 21
The Statutory Financial Statements Pages 22 to 25
Notes to the Financial Statements Pages 26 to 38
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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Introduction from the Chair of the Board of Trustees

I am pleased to submit this report on the activities and financial statements of the RAF Club for the period 1 January 2025 to 31 December 2025.

In starting, I would like to record my sincere thanks to, and recognition for, my predecessor as Chair, Air Vice-Marshal The Hon. David Murray (retd), who served in the role until July 2025. I have inherited the lead of a Club Board that has overseen improving financial resilience, updated governance and is firmly focused on its charitable objectives in support of the Royal Air Force community. The Board joins me in expressing its deep appreciation for his commitment and leadership.

The year 2025 was another productive year for the Club. We entered the year from a position of strong financial stability with a positive reserves strategy, providing a solid foundation for the months ahead.

Throughout 2025, Trustees focused on maintaining financial resilience while continuing to offer excellent value for Members. Particular attention was given to affordability for serving officers and ensuring the Club remains relevant and accessible to the serving community, with emphasis on the On Duty Rate, and the introduction of a new ‘Care and Compassion’ Welfare and Respite break for Serving Officers and their immediate families who have or are experiencing difficulties.

The Club significantly invested in its facilities, recognising that the quality of the environment is central to Member experience and long-term sustainability (financial, human and environmental). The major focus was the complete refurbishment of the Basement Kitchen and Running Horse Tavern, which progressed strongly and has been very well received by Members. Planning also preloaded the effort required to undertake the (Main) Ground Floor Kitchen refurbishment which commenced in January 2026; another important investment in the Club’s future.

Alongside physical improvements, the Board supported continued progress in systems modernisation, cyber resilience and environmental accreditation, together with work to further modernise governance and shape the development of a new strategy for 2026 to 2030 and beyond.

During 2025, a portrait of the Club Patron, Marshal of the Royal Air Force His Majesty The King, was commissioned, and we look forward to it being presented in 2026.

I would like to thank the Trustees, President, Vice Presidents, Committee members, the Club Management and Staff alike for their professionalism, endeavour and dedication throughout the year. I am also grateful to the many Members who support the charitable work of the Club through donations, legacies and the Friends programme. It is the combination of many facets, activities, engagement and involvement that make the Club the success it is today.

I look forward to the year ahead as we re-evaluate the Club’s service to the RAF community and adjust our structures, practices and ideas to remain ‘future fit’ in a challenging world.

Warren James CB CBE DL Air Vice-Marshal (retired) Chair of the Board of Trustees

Page 1

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Trustees, Officers and Advisors

Trustees (at 31[st] December 2025)

Air Vice-Marshal Warren James Chair of the Board of Trustees (appointed in July 2025) Air Commodore Paul Higgins Air Commodore Phil Wadlow Vice Chair (Serving) Air Commodore Adam Wardrope Air Commodore Dai Whittingham Group Captain James Beldon Group Captain Peter Brown Group Captain Al Lockwood Wing Commander Gavin Poole Wing Commander Amanda Scarth Wing Commander Paula Willmot Squadron Leader John Peters Flight Lieutenant Haig Tyler Vice-Chair (Business) Mr Neeraj Kapur Mr Bernie Watson

Trustees who retired in July 2025

Air Vice-Marshal The Hon. David Murray

Officer and Secretary

Mr Miles Pooley Chief Executive Officer and Club Secretary

Principal advisors

Auditors

Bankers

Moore Kingston Smith LLP, 9 Appold Street London, EC2A 2AP

Moore Kingston Smith LLP, Coutts & Company 9 Appold Street 440 The Strand London, EC2A 2AP London, WC2R 0QS Solicitors – Charity legal advice Solicitors - Employment legal advice Farrer & Co Burges Salmon 66 Lincoln’s Inn Fields One Glass Wharf London, WC2A 3LH Bristol, BS2 0ZX

Registered Address

The Royal Air Force Club, 128 Piccadilly, London. W1J 7PY

Reference and Administrative Information

The Royal Air Force Club was founded in 1918 and became registered with the Charity Commission in 1965 under charity number 252720. The Trustees and Chief Executive Officer of the Charity are listed on this page, along with the Club’s registered address and principal advisors. The Club became incorporated on 24 December 2004 and received a new Registered Charity Number 1108295 in place of 252720.

Page 2

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

The Board of Trustees presents its report for the year ended 31[st] December 2025.

Governance, Management and Risk

Financial Statements declaration

The financial statements have been prepared in accordance with applicable law and United Kingdom Accounting Standards including the Statement of Recommended Practice for charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 - second edition effective 1 January 2019 - Charities SORP), and the Companies Act 2006.

Governing Document

The Charity is governed by its Memorandum and Articles of Association which were last revised at the Charity’s Annual General Meeting in May 2024 following a review by the Board of Trustees and the Club Lawyers.

Trustee Recruitment and Training

The Charity’s elected Trustees are appointed at the Annual General Meeting based on applications received from the Membership through the Nominations Committee. Candidates for election must satisfy the Board’s specifications concerning personal competence, specialist skills and availability. New Trustees are inducted into the workings of the Charity, including Policy and Procedures, through a programme which is overseen by the appointed Vice-Chair(s).

Organisational Management

The Trustees of the Charity are legally responsible for the overall management, finances and control of the Club and meet at least six times a year. The work of implementing most of their policies is carried out by the following standing sub-committees which meet as required and whose chairs report at each meeting of the Trustees:

Ad-hoc Working-Groups

The ad-hoc working groups include the Nominations Working Group, the Remuneration Working Group and the Systems Working Group which meet as required.

Risk Management

The Board is responsible for setting the Club’s risk appetite and for overseeing the risks faced by the Charity, with The Finance, Audit & Risk Committee playing a key role in the oversight of risks. Continuous horizon scanning and monitoring are used to identify new risks and to evaluate and assess both new and existing risks and controls. Appropriate controls are established and monitored to deal with risks.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Risk Management Responsibilities

The Finance, Audit & Risk Committee & Board of Trustees ~ oversight of risk management The Chief Executive ~ preparation and management of the risk register

The Trustees and the Finance, Audit and Risk Committee regularly review and set risk appetite statements and the Risk Register against which the risks are measured. The risk register contains an assessment of specific risks, and the highest inherent risks are listed (see the table below) with a description of the mitigation controls in place.

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Inherent Risk Mitigation
Loss of Key Staff resulting Annual compensation reviews to aid retention, constant review of
in adverse impact on welfare offerings, offering of flexible working, including ‘working
service and functionality from home’, training and educational support. Emotional support
provided (if applicable).
Control of income and An annual approved budget combined with a budgetary control
expenditure, including system, monthly management accounts, including variance
energy costs analysis and dashboard reports. Decisive management action and
an Internal Audit Team.
The negative impact of Constant review by the Board of Trustees and the Club Executive
possible International Management Team.
Conflict
Cyber Security Breach The Club undertakes documented training with Staff who have
access to susceptible systems, with both regular monitoring and
independent 3 [rd] party penetration and ransomware tests. Cyber
Insurance is in place. The Club is also working towards Cyber
Essentials and Cyber Essentials Plus certification, which it aims to
achieve in 2026. The Club also receives updates from the CISP
(Cyber Information Sharing Partnership).
Significant loss of Club Fire/security prevention measures. H&S Regulation adherence.
facilities through fire or Crisis Management Plan. Business Interruption Insurance.
similar disaster Independent fire risk assessments are performed, and any issues
identified are addressed. Fire suppression system in the kitchens.
Fire compartmentalisation issues are also being addressed with
work starting in 2025 and continuing in 2026.
Terrorist Activity Appropriate security measures based on professional advice (RAF
and Civil police, and HQP&SS). Disrupting and spotting hostile
reconnaissance staff training. Insurance cover in place. Business
Continuity Plan (BCP) for recovery, Club security and Front Desk
staff for vetting visitors, and upgrading of the Club's CCTV with
the installation of additional cameras.
Reputational damage by Monitoring of social media and events held in the Club, and
3rd party and social media increased engagement with event organisers before events are
outlets held.
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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Group Structure

The Charity has a subsidiary trading company, RAFCTC Limited, registered number 6590556. The Company is responsible for using the Charity’s facilities and resources so as to increase the total income and hence improve its continuing ability to achieve its Objects. RAFCTC provides meeting room hire, function and banqueting services to persons supportive of, but not directly associated with, the Royal Air Force, and who therefore are not eligible to join the Club. All trading profit is distributed by Gift Aid each year to the Charity. As the RAFCTC does not have any premises and uses agency staff when required, it is not considered that its activities constitute any risk to the finances of the Charity itself, even during periods of economic uncertainty. In 2026, the RAFCTC revenue represented 11% of the Club’s charitable revenue.

The Charity Governance Code

The Trustees confirm that the Club’s structure, governance and management have been reviewed against the guidance set out in the Charity Governance Code for larger charities issued by the Charity Governance Code Steering Group. In particular, the Trustees have assessed the Board’s performance against the following seven principles:

  1. Leadership

  2. Diversity

  3. Board effectiveness

  4. Integrity

  5. Organisational purpose

  6. Decision – making, risk & control.

  7. Openness & Accountability

Charitable Objects and Club Operational Objectives

The Trustees confirm that they have complied with the duties specified in the Charities Act 2011 to have due regard to the general guidelines issued by the Charity Commission on public benefit. In particular, the Trustees confirm that they have complied with the Commission’s published specific guidance relating to fee-charging charities.

The charitable purpose of the Royal Air Force Club within the meaning of the Act is enshrined within its Charitable Objects:

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Public Benefit is not just provided to Members of the Charity. During the year, the Club hosted visits from like-minded organisations and encouraged visits for RAF Cadets. The Club welcomes, with prior arrangement, non-Member visitors to view the Club House, a Grade II listed building, memorabilia, and art collection.

In 2022, and in each subsequent year, the Club has also produced a separate Impact Report to inform the Membership of the work it does help meet its Charitable Objects. The Impact Report (for the previous year) is formally presented to the Membership at the Annual General Meeting.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

The wider Royal Air Force Family

The Club supports and works closely with the wider RAF family and other Charities working to support Royal Air Force personnel and their families. Recent examples have included:

The Club's Mission, Vision and Core Values

The Trustees and Executive Team work together to maintain the Vision, Mission and Core Values. These are:

Vision
Mission		 Vision
Mission
To be the London Club of choice for serving and
retired Royal Air Force Officers, their families, and
other Members in order to preserve, promote
and foster the spirit of the Royal Air Force
To provide high-quality and value-for-money
facilities and services in Central London that are
in keeping with the heritage and ethos of the
Royal Air Force.
Core Values
Value, respect and support each other Give
personalised,
warm
and
consistently
exceptional service
Create positive, memorable experiences for every
Member		 Care about and give back to our local community

The Club Strategy and Plans for the Future

The Trustees will develop its strategy & deliver the Club’s Vision in the following ways:

Data

Data is required to inform decisions taken by the Trustees and Club management. The data from the Members Survey undertaken in 2023, alongside ongoing Member feedback will be used to:

Data Data
Data is required to inform decisions taken by the Trustees and Club management. The data from the
Members Surveyundertaken in 2023,alongside ongoingMember feedback will be used to:
A
develop a deeper understanding of the current and likely future requirements of each Member
group (serving, former serving, families and other Members), because of the mix of
membership types, the membership age profile and the aspirations and expectations of the
current Service officer cadre have a direct influence on usage and the Club’s ethos.
B
monitor the balance between Membership categories and set limits when necessary to align
with the Charitable Objects.
C
help set the balance between revenue, quality and affordability, and to ensure that resources
areprioritised with the Vision and Mission clearlyin mind.
Information Technology
We will develop and maintain an IT system that supports appropriate data capture to guide strategic
management and the most efficient use of the Club’s resources.
Risk Management
We will ensure that business, security and operational risks are managed appropriately and within the
risk appetiteparameters set bythe Board.
Club Membership
We will work to improve the offer to members to:
A Increase the use of the Club byall members.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

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B Better attract existing members who serve or live away from London.
C Promote the Club as the social venue of choice for serving members based in London.
D Promote the benefits of Club membership to newly commissioned and other non-member
serving officers.
E Increase the membership uptake from former serving officers.
Ethos and heritage
One of the core responsibilities of the Arts and Heritage Committee is to help the Club remain
respectful of its heritage and supportive of the Board and other Committees who ensure it remains
relevant for the future.
Quality
A We will improve the condition of 128 Piccadilly and its facilities, including measures in support
of the Net Zero 2040 target, whenever possible.
B We will provide benefits and training for staff such that the Club becomes recognised as an
employer of choice.
C We will provide training for Trustees and managers to improve the governance and efficient
management of the Club.
D We will develop meaningful Key Performance Indicators for Trustees and Executives.
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Environmental Strategy

The Board of Trustees have agreed a long-term strategy which includes the ambition for the RAF Club to become carbon neutral by 2040. This commitment reflects a growing awareness of the importance of environmental responsibility and the role organisations such as the Club can play in supporting wider sustainability goals. While this target is still some years away, it provides a clear direction for the Club and ensures that environmental considerations are increasingly integrated into our planning and decision-making.

We are currently identifying the most effective and practical measures that will allow us to work towards this objective over time. As part of this process, sustainability is being placed at the centre of all future facilities improvement projects, ensuring that environmental impact is considered alongside operational and member requirements.

Alongside this longer-term planning, the Club has already begun to introduce several smaller, immediate changes within the building and our day-to-day operations. While individually modest, these steps represent an important starting point and demonstrate the Club’s commitment to making steady progress towards a more sustainable future.

Fundraising Strategy

The Club benefits significantly from generous Member support through general donations and campaign appeals, including funds raised by The Friends of the RAF Club programme, which was set up in 2021 to recognise Members who make regular donations. Legacy Giving will also remain a focus of activity in 2026.

The main initiative for 2026 is a large capital project, the complete modernisation of the Club’s ground floor kitchens. The Club is also exploring the possibility of improving accessibility between the Centenary block and the original wing of the clubhouse via a 4th-floor walkway. More visibly, a Gymnasium refresh and more acoustic pods for the Business Centre will also be prioritised and ‘Care & Compassion’ Respite Breaks will continue to be funded.

The Club employs a part-time Fundraising Director to manage its fundraising and legacy activities. The Club is registered with the Fundraising Regulator and adheres to its policies and guidance. Gift Aid is claimed on all eligible activity where Gift Aid consent has been given.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Club Committees

Committee Members (as at 31 December 2025)

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Art & Finance, Audit Fundraising & Systems
Heritage House & Risk Events Legacies Membership Working
Committee Committee Committee Committee Committee Committee Group
Gp Capt Jim Air Cdre Dai Mr Neeraj Sqn Ldr John Gp Capt Al Air Cdre Paul Flt Lt Haig Tyler
Beldon Whittingham Kapur Peters Lockwood Higgins
Air Cdre Adam Wing Mr Bernie Wg Cdr Paula Gp Capt Mark Wg Cdr
Wardrope Commander Watson Willmot Hollingsworth Amanda Wolfe
Gavin Poole
Dr Michael Wg Cdr Neil Mr James Ms Naomi Flt Lt Mike Gp Capt Guy Mr David
Fopp Cook Calladine Miles Stubbs Sawyer Alexander
Mr Grant Lewis Flt Lt Gary Flt Lt Jennie Sqn Ldr Stuart Fg Off Jochim Wg Cdr Louise Mr Bernard
Hornby Kingston Quinn Wrang-Widén Clarke Brown
Wg Cdr James Sqn Ldr Mike Mr Andrew Mr Richard Wg Cdr Neil Mr Joe
Poynton Sewell Manning Ashton Tomlin Hardstaff
Mr Aubrey Sqn Ldr Mrs Sonja Sqn Ldr James
Dawson Andrew Jackman Traynor
Whisker
Sqn Ldr Gavin Mrs Julia Lucas Flt Lt Jane
Turnbull Shepherd
Mr Richard Mr Charles
Ward Stewart
Chair
Vice Chair
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Club Committees exist to support the work of the Board of Trustees. Each Committee meets on average five times per year to examine subjects in detail, with recommendations fed into the Board for discussion and decision. Committees are chaired by a Club Trustee, with a second Trustee or Committee Member serving as Vice-Chair if required. Volunteers on Committees are drawn from Club Members across all membership categories, ensuring broad representation.

The table above reflects Committee membership as at 31 December 2025. During the year, a number of Committee members retired from their roles and are therefore not listed. The Board of Trustees wishes to record its sincere thanks to those individuals for their service and valued support to the Club.

Art & Heritage Committee

Management of the Club Art collection

During 2025, the Arts and Heritage Committee continued to safeguard and enhance the Club’s art, silver and heritage collections, while increasingly shifting its focus from acquisitions towards proactive conservation and long-term collection management. This work forms part of a wider programme relating to the location, presentation and protection of the Club’s most significant artwork. Key activities during the year included the review of donations and the continued restoration, cleaning and rehanging of important paintings, including the portrait of (a former Club President) Marshal of the Royal Air Force (MRAF) Sir John Salmond.

A major priority was the planned replacement of the current inventory system, with work commencing to identify a future-proof successor and ensure robust data migration. This will also enable a copy of the Art Catalogue to be uploaded to the Members section of the Club website. The Committee also supported improvements to the display and protection of the collection, including protective rails for vulnerable badges and stained-glass displays, alongside ongoing review of lighting in key areas.

Progress was also made in strengthening the Club’s silver collection through the acquisition of additional pieces from the RAF Museum, and the Committee supported the commissioning of a portrait of the Club Patron, MRAF His Majesty King Charles due to be presented in 2026.

Events Committee

Planning and management of the events programme

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

In 2025, the Events Committee delivered a varied programme of dinners, talks and social events for Members and their guests, with many events selling out and attracting strong engagement. Highlights included Burns Night, gourmet and jazz evenings, wine tastings, and the New Members’ Reception, alongside a well-supported VE Day 80th Anniversary Dinner.

The Committee continued to review event performance and broaden the appeal of the programme, particularly to younger and Serving Members. Planning for 2026 progressed during the year, with an expanded calendar of events and continued work to strengthen outreach to the Serving community.

Finance, Audit & Risk Committee (FARC)

Assisting the Board in fulfilling its governance obligations and oversight responsibilities by providing challenge and support to management and assurance over the Club’s financial, audit and risk management procedures, as well as supporting management in making improvements in related performance

The Committee supports the Board in fulfilling its governance responsibilities by providing challenge and support to management and assurance over the Club’s financial performance, audit processes and risk management framework.

In 2025, alongside its routine oversight of trading, budgets and reserves, the Committee oversaw completion of the 2024 audit and the appointment of new external auditors following a formal tender process. The internal audit programme continued to strengthen financial controls and balance sheet oversight. The Committee progressed the Financial Strategy and Reserves Policy and supported the establishment of a revolving credit facility to enhance financial resilience. The long-term financial plan (2025–2040) and associated capital expenditure proposals were reviewed to ensure alignment with a sustainable funding and liquidity position.

An upgraded accounting system became operational during the year, improving reporting accuracy and internal controls. Insurance cover, Gift Aid compliance and beneficiary income classification were also reviewed to ensure ongoing regulatory compliance.

House Committee

Ensuring the maintenance and development of the Club’s infrastructure and environment is consistent with the Club’s ethos and heritage while taking into account members’ views

In 2025, the Committee oversaw the successful completion of the Running Horse and Basement Kitchen refurbishment, a major project that enhanced member experience, improved operational efficiency and strengthened the Club’s commitment to accessibility. The project addressed significant structural and compliance matters discovered during the works and has since delivered strong operational and financial performance. During the year, the Committee also progressed essential infrastructure upgrades, including lightning protection compliance, replacement of dumb-waiter lifts, and improvements to heating, cooling and mechanical systems.

Looking ahead, significant attention was devoted to the planning of the Ground Floor Kitchen Refurbishment Project, scheduled to commence in January 2026. This non-discretionary project will deliver a fully electric kitchen, renewed mechanical and ventilation systems, and improved workflow, supporting both sustainability objectives and long-term service continuity.

The Committee also undertook a detailed review of the Club’s medium and long-term Capital Expenditure programme, extending the planning horizon to ten years and categorising projects to ensure compliance, operational resilience and financial sustainability remain central to decision-making. Sustainability continued to be embedded across projects, with the Club achieving Bronze EarthCheck accreditation during the year and progressing towards further measurable environmental improvements.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Fundraising and Legacies Committee

Supporting the activities of the Royal Air Force Club by enabling and encouraging Members and supporters to contribute funds for the Club’s reserves, capital projects and special appeals.

In 2025, the Club received £876,000 income from donations including Gift Aid, a substantial legacy and a sizeable donation, which has been used to bolster the Club’s reserves. £157,000 of this was raised through the generous support from the Friends of the RAF Club along with donations to the Club’s Victoria Cross Artwork Appeal. Members and Friends also purchased commemorative Tankards with proceeds going towards the Running Horse Refurbishment costs.

Funds from the Friends of the RAF Club and the unrestricted Legacy fund were also allocated towards improving accessibility to the Running Horse for all Members, substantial works which included elevating the existing floor levels, removing steps and widening the entrance to the Tavern.

Monies were also used to fund our new ‘Care & Compassion’ Respite Breaks for two Club Members and their families which launched earlier in the year. We are grateful for all these donations.

Membership Committee

Developing and implementing the Club membership strategy to recruit and retain members

In 2025, the Membership Committee continued to oversee the Club’s membership strategy, with a sustained focus on recruiting and retaining Serving and Reservist Officers, strengthening the RAF Station Club Representative network, and ensuring a well-balanced membership across categories. The Club was pleased to report that it currently has the highest number of Serving Officers in over ten years, reflecting the continued success of this long-term priority.

The Committee continued to vet applications, manage renewals and debtor processes, and supported improvements to membership procedures to streamline elections and strengthen governance. During the year, the Committee also progressed important eligibility and Club Rule clarifications, including updates relating to RAFAC subscriptions and clearer criteria for officers serving on exchange, loan service or secondment with the RAF.

In addition, the Committee developed enhanced plans to recognise long-term membership milestones, expanding recognition beyond 50 years, and continued to work closely with the Club’s Events and Membership teams to deliver New Member and membership recognition events.

Succession planning also continued during the year, with new Committee members joining and responsibilities being reallocated to support long-term continuity.

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Membership by type ~ 2023 to 2025
0 1000 2000 3000 4000 5000 6000 7000 8000
Serving & Reservists
Former Serving
Spouses / Partners
Family
All other Affiliate
Widow/ers
Honorary
2023 2024 2025
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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

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Total membership ~ 2023 to 2025
Year end 2023
Year end 2024
Year end 2025
0 5000 10000 15000 20000 25000 30000
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The Systems and IT Working Group

Overseeing IT strategy and principles and the usage of data

The Systems Working Group advised on projects including data analysis and evaluating longerterm plans including a smart Club Membership card, a new Member Relationship Management System and changes to the Club website to make it more user friendly and accessible to the Members. The new website will be launched in 2026. In addition, the Working Group has led a project to improve the Club’s Wi-Fi capabilities which has included the replacement of over 150 network points and the upgrade of broadband infrastructure supplied to the building.

Club Library and Archive

In 2025, the Library volunteers undertook a complete inventory of the books, donating and selling duplicate editions and purchasing new books missing from the collection. The Club library is supported by a volunteer team of librarians, and the Club’s archive is maintained by volunteer archivists:

archivists:
Club Librarians Mrs JackyAtkinson Mrs Gaynor Cooper FgOff SandyCopland
Dr Peter Elliott(Chair) WgCdr Rob Stephens Mr Peter Thorne Sqn Ldr Gavin Turnbull
Club Archivists Mr Peter Elliott WgCdr Michael Gilbert GpCapt Paul Stewart

Contribution by Volunteers

All Trustees, Committee members, Working Group members, Internal Auditors, Librarians and Club Archivists are unpaid volunteers, and it is estimated that over 480 volunteer days were given to the Club in the year for the benefit of all Club Members. The Club benefits enormously from their considerable professional expertise and invaluable advice.

Staff Engagement

Our people remain central to the Club’s success, and fostering strong engagement continues to be a key priority. We are committed to ensuring that staff feel valued, supported and fairly rewarded, creating an environment in which they can consistently deliver the high standards of service for which the Club is known.

Throughout 2025, we retained a dedicated and professional team, with staff turnover remaining favourably low in comparison to wider industry trends. Our commitment to charitable and community activity also continued, driven by the staff-led Charity and Community Team. The Staff Welfare Fund, introduced in 2022 to assist in times of need, remains an important source of support and was again available to colleagues during the year. The Club’s sustainability initiative, ‘The Green Arrows’, also continued its work in promoting environmentally responsible practices across the organisation.

The payroll platform introduced previously has now been fully embedded, providing a more efficient process and enabling team members to access payslips and manage personal information easily via the dedicated app. The Health Cash Plan, launched as part of our broader

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

wellbeing programme, continues to be well received, alongside the launch of a Cycle to Work Scheme. We have also relaunched a dedicated hospitality learning and communications platform. Staff engagement activities throughout the year were rounded off with the annual awards presentation at the Staff Christmas Lunch, which remains a valued opportunity to recognise individual and team contributions.

Staff Awards

In 2025 we presented the following awards:

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Todor Tsachev - Maintenance
Newcomer of the Year ~ 2025 (two winners)
Raphaelle Burgess-Jones - Reception
Front of House Star ~ 2025 Dave Holland - Security
Heart of House Star~ 2025 Lily Andrei – Staff Canteen
Casual of the Year ~ 2025 Ashmita Magar - Banqueting
Department of the Year ~ 2025 Housekeeping
Employee of the Year ~ 2025 Daniel Fernandes - Housekeeping
Leader of the Year ~ 2025 Jose Carvalho – Food & Beverage
Chief Executive Special Recognition ~ 2025 Membership
(two winners) Finance
Unsung Hero – 2025 Christian Blaj - Purchasing
Member Recognition Award ~ 2025 Meetings & Events
Champions of Challenge ~ 2025 The Kitchen
Transformation Award ~ 2025 Maintenance
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All of our award winners truly embody the very essence of exceptional service and hospitality, and we were delighted to recognise them at the end of the year, along with celebrating all our team’s success and commitment to the Club with a very special Christmas lunch celebration.

Staff Visits to RAF Stations

The Membership Department, supported by other members of staff, resumed its quarterly visits to Royal Air Force College, Cranwell, exhibiting at the graduating Initial Officer Training Cadets Freshers Faire, with over 200 officer cadets expressing an interest in joining the Club. Further visits to other units are also being planned for Club Staff.

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The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

2025 Financial Review

Quarter 1

The year started strongly with revenue exceeding the previous year’s performance by 3%. Occupancy for the quarter was 70%, which was 2% below the previous year's

Quarter 1 Th ttd tl ith di th
Quarter 1 Total revenue
£2,751,195		 Surplus
£59,165		 e year sare srongy w revenue exceeng e
previous year’s performance by 3%. Occupancy for the
quarter was 70%, which was 2% below the previous year's
occupancy of 72%, reflecting lower occupancy rates across central London. The increase in revenue
is reflected in the surplus for the quarter, with it being £48k higher than in the same period in 2024.

Quarter 2

The positive start to the year continued into the second Total revenue Surplus quarter. Revenues were 9% higher than the previous year’s Quarter 2 £3,506,860 £573,046 performance and exceeded £3.5m. A donation of £400k from Prince Bandar was received in May. The surplus for the quarter was £566k, compared to £381k in the previous year.

Quarter 3

Total revenue was £16k lower than the same quarter in 2025, in part due to the renovations of the Running Horse. A deficit was posted in July and August, reflecting lower

Quarter 3 Total revenue
£2,815,022		 Deficit
-£7,754
2025, in part due to the renovations of the Running Horse.
A deficit was posted in July and August, reflecting lower
revenue due to the school holidays and the Running Horse project, however, there was a surplus
of £34k in September.

Quarter 4

Quarter 4
In the fourth quarter, overall revenues exceeded £4.1m and
was 12% higher than the previous year. Income this quarter
included an accrual of £243k related to the estate of RMB
Surplus
£910,248
Total revenue Surplus
Quarter 4 £4,058,854 £910,248

Montague. The operating surplus was £910k, which is £353k higher than the same quarter in 2025.

Yearly Overview

The strong financial performance that was experienced in 2024 continued into 2025 with the Club recording a total income more than £13.0m for the first time in its history. Two drivers for the increase in income were:

Occupancy for the year was 78% compared to a Budget of 79%, while the Food and Beverage revenues were 1% higher than Budget. The Royal Air Force Club like many in the hospitality sector experienced the negative effect of rising general inflation. Despite this and through the application of tight cost controls, the resultant net operating surplus of £1.37m exceeded Budget by £.083m.

Cash provided by operating activities was £2.4m, down from £2.6m in 2025. Capital expenditure was £2.6m. The net effect was a year-end cash balance of £1.7m which was a decrease of £0.2m compared to the previous year.

Page 14

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

The following charts summarise the year’s activities by month for the key indicator of Bedroom Occupancy and Total Revenues and Operating Surplus/Deficit with comparisons against the previous year:

----- Start of picture text -----
Bedroom Occupancy - 2022 to 2024
100%
80%
60%
40%
20%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 2023 2024
----- End of picture text -----

----- Start of picture text -----
Total Revenue - 2022 to 2024 (including donations)
£1,500,000
£1,250,000
£1,000,000
£750,000
£500,000
£250,000
£-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 2023 2024
----- End of picture text -----

2026 Outlook

The Club’s financial forecast for 2026 anticipates a marginal improvement in activity levels, however this is against a background of continuing high inflation, high energy costs and labour capacity restraints. The result is that the surplus in 2026 is expected to be lower than 2025.

Page 15

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Capital Improvements to the Club

During 2025, the Running Horse and its kitchen underwent a full refurbishment, which was completed in September 2025. In 2026, the ground floor kitchen will be refurbished, with the project due to be completed in April 2026.

A short-term 5-year plan alongside the Club’s existing 10-year plan has been developed to ensure that refurbishment projects can take into account the future needs of both the building and the Membership.

The Club as a Going Concern

The Board of Trustees consider there are no material uncertainties about the Club’s ability to continue as a going concern. The Trustees have reviewed the Club’s financial forecast and business plans for the following year and up to 31 March 2027 and anticipate similar levels of trading and financial performance as achieved in the last financial year.

Having considered all available information about current circumstances and future trends, the Trustees have a reasonable expectation that the Club has adequate resources to continue to operate as a viable organisation for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Key Management Personnel and Remuneration

The Board, supported by the Chief Executive and the Executive Team, together comprise the key management personnel of the Charity in charge of directing, controlling, and managing the Club and its operations on a day-to-day basis. All trustees give their time freely and no trustee received remuneration in the year. Note 6 to the Financial Statements gives details of the total remuneration and benefits of the key management personnel of the Club and Trustees’ expenses and related party transactions during the year. The pay of the Chief Executive and Executive Team is reviewed annually by the Remuneration Working Group which reports to the Board and the review takes into account comparative data from several external sources.

Reserves Policy

The Trustees reviewed the Club’s Reserves policy in September 2025 as part of its annual review of the Club’s strategy. Taking into account the Charity Commission’s guidance and using the serious adverse financial impact of the global pandemic as an example of a severe event, the Board agreed it was essential to protect the long-term interests of the charity and its beneficiaries by aiming for a General “free” Reserve target of £3m to be achieved over time. This unrestricted Reserve objective will provide financial cover for the key business risks, such as business downturns and uninsurable and unexpected operational interruptions or losses.

Free reserves at 31 December 2025 totalled £412,173. The Club’s long-term financial plan will look to add to the Club’s free reserves and bring the reserves held in line with the policy set by trustees. In order to protect the Club in the short term a revolving credit facility of £5m is in place to cover the period in which the Club plans to continue building up its free reserves.

Investment Policy and Objectives

It has been the Club’s policy to hold any cash surplus to operating and capital expenditure requirements on short-term deposits with financial institutions with high credit ratings.

Page 16

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Statement of Trustees responsibilities

The Trustees (who are also the directors of The Royal Air Force Club for the purposes of company law) are responsible for preparing the Report of the Trustees 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 Club and of the incoming resources and application of resources, including the income and expenditure, of the Club for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Club 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 Club and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Provision of information to auditors

In so far as the trustees are aware at the time the report is approved:

The Trustees’ report, incorporating the Strategic Report, was approved by the Board of Trustees, and signed on their behalf by:

Air Vice–Marshal Warren James

Chair of the Board of Trustees Wednesday 25[th] March 2026

Page 17

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025 Independent Auditors Report to the Members of the Royal Air Force Club

Opinion

We have audited the financial statements of The Royal Air Force Club (the ‘parent charitable company’) and its subsidiaries (the ’group’) for the year ended 31 December 2025 which the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual 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.

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 course of the audit or otherwise appears to be materially misstated. If we identify

Page 18

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025 Independent Auditors Report to the Members of the Royal Air Force Club

such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the group and 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 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

Page 19

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025

Independent Auditors Report to the Members of the Royal Air Force Club

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

Page 20

The Royal Air Force Club The Trustees’ Annual Report and Consolidated Financial Statements For the year ended 31 December 2025 Independent Auditors Report to the Members of the Royal Air Force Club

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Aikens (Senior Statutory Auditor)

Date: 21/04/2026

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Road, London. EC2A 2AP

Page 21

The Royal Air Force Club Consolidated Statement of Financial Activities (including Income and Expenditure account) For the year ended 31 December 2025

Note
Income from:
Charitable activities
Club income
2
Donations and Legacies
Legacies
Donations from appeals and friends
of the Club
Other trading activities
Trading activities
Investment income
Total Income
Expenditure on:
Charitable expenditure
Club operating costs
Donations made
Other trading activities
Trading activities
Raising funds
Fundraising costs
Total expenditure
3
Net income / (expenditure) and
net movement in funds
Balance brought forward
Balance carried forward		 Unrestricted
Funds
£
10,765,122
319,250
556,775
1,429,396
61,388
13,131,931
10,477,360
10,000
1,076,242
33,624
11,597,226
1,534,705
11,421,000
12,955,705		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
7,478
7,478		 Total
2025
£
10,765,122
319,250
556,775
1,429,396
61,388
13,131,931
10,477,360
10,000
1,076,242
33,624
11,597,226
1,534,705
11,428,478
12,963,183		 Total
2024
£
11,774,552
-
173,628
298,971
34,299
12,281,450
10,752,930
10,000
171,428
2,694
10,937,052
1,344,398
10,084,080
11,428,478

All recognised gains and losses are included in the consolidated statement of financial activities.

All transactions are derived from continuing activities.

Full comparative figures for the year ended 31 December 2024 are shown in note 18.

The accompanying notes form part of these financial statements.

Page 22

The Royal Air Force Club Consolidated Statement of Financial Position As at 31 December 2025

Note
Fixed assets
Tangible assets
7
Intangible assets
8
Investments
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Current liabilities
Creditors: amounts falling
due within one year
12
Net current assets
Net assets
Funds
Unrestricted Funds:
16
- Designated funds
- General funds
Restricted funds		 £
£
11,719,327
272,596
-
11,991,923
98,387
678,646
1,941,337
2,718,370
(1,747,110)
971,260
12,963,183
12,543,532
412,173
7,478
12,963,183
2025		 £
£
10,209,420
97,031
-
10,306,451
94,601
428,256
2,165,831
2,688,688
(1,566,661)
1,122,027
11,428,478
10,451,436
969,564
7,478
11,428,478
2024

The financial statements were approved and authorised for issue by the Board on ….................... And were signed 25th March 2026 below on its behalf by:

W James Air Vice-Marshal

H Tyler Trustee

Company number 05321353

The notes on pages 26 to 38 form an integral part of these financial statements.

Page 23

The Royal Air Force Club Charity Statement of Financial Position As at 31 December 2025

Note
Fixed assets
Tangible assets
7
Intangible assets
8
Investments
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Current liabilities
Creditors: amounts falling
due within one year
12
Net current assets
Net assets
Funds
Unrestricted Funds:
16
- Designated funds
- General funds
Restricted funds		 £
£
11,719,327
272,596
100
11,992,023
98,387
855,565
1,709,131
2,663,083
(1,691,923)
971,160
12,963,183
12,543,532
412,173
7,478
12,963,183
2025		 £
£
10,209,420
97,031
100
10,306,551
94,601
592,504
1,981,093
2,668,198
(1,546,271)
1,121,927
11,428,478
10,451,436
969,564
7,478
11,428,478
2024

The parent undertaking's total income for the year before gift aid from RAFCTC Limited was £11,702,534 (2024: £11,982,479) and its net income for the year amount to £1,181,554 (2024: £1,216,854).

The financial statements were approved and authorised for issue by the Board on ….............................. and were 25th March 2026 signed below on its behalf by:

W James H Tyler Air Vice-Marshal Trustee

Company number 05321353

The notes on pages 26 to 38 form an integral part of these financial statements.

Page 24

The Royal Air Force Club Consolidated Cash Flow Statement For the year ended 31 December 2025

Cash provided by operating activities
Cash flows from investing activities
Purchase of fixed assets
Cash outflows from investing activities
Cash flows from financing activities
Loan repayments
Cash outflows from financing activities
Increase / (Decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
At 1 January
2025
Analysis of changes in net debt
£
Cash at bank and in hand
2,165,831
Bank loans due < 1 year
-
Bank loans due > 1 year
-
Net debt
2,165,831
Reconciliation of net movement in funds
to net cash flow from operating activities
Net movement in funds
Depreciation and amortisation charges
(Increase)/Decrease in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash (used in) / provided by operating activities		 2025
£
2,485,929
2,485,929
(2,710,423)
(2,710,423)
-
-
(224,494)
2,165,831
1,941,337
Cash flows
£
(224,494)
-
-
(224,494)
2025
£
1,534,705
1,024,951
(3,786)
(250,390)
180,449
2,485,929		 2024
£
2,626,628
2,626,628
(809,552)
(809,552)
(3,779,140)
(3,779,140)
(1,962,064)
4,127,895
2,165,831
At 31 December
2025
£
1,941,337
-
-
1,941,337
2024
£
1,344,398
989,457
(2,405)
327,572
(32,394)
2,626,628

The notes on pages 26 to 38 form an integral part of these financial statements.

Page 25

The Royal Air Force Club Notes to the financial statements Year ended 31 December 2025

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

General information

The Royal Air Force Club is a charitable company, limited by guarantee, registered in England and Wales. Its registered office is 128 Piccadilly, London, W1J 7PY. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the prearation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The functional currency is pounds sterling and items are rounded to the nearest pound.

The Royal Air Force Club meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initally recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Basis of Consolidation

These financial statements consolidate the results of The Royal Air Force Club and its subsidiary, RAFCTC Limited (registered in England and Wales, registered number 06590556) on a line by line basis. As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities of the parent undertaking is not presented as part of these financial statements.

Going Concern

The Board of Trustees consider there are no material uncertainties about the Club's ability to continue as a going concern. The Trustees have reviewed the Club's financial forecast and business plans for the period ending 31 March 2026 and anticipate similar levels of trading and financial performance as achieved in the last financial year.

Having considered all available information about current circumstances and future trends, the Trustees have a reasonable expectation that the Club has adequate resources to continue to operate as a viable organisation for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives. Designated funds are amounts that have been set aside at the discretion of the Trustees. Restricted funds are funds that are to be used in accordance with specific restrictions impose by donors or which have been raised by the charity for particular purposes.

Page 26

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

1 ACCOUNTING POLICIES (Continued)

Income

Income represents the total income receivable during the year comprising government grants, donations, subscriptions, entrance fees, bedroom receipts, food, beverages and investment income.

Tangible fixed assets and depreciation

Fixed assets are held at cost less accumulated depreciation.

The original freehold buildings are maintained to a standard that preserves likely residual value at a level at least equal to the book value. Accordingly no provision has been made for depreciation as the amount involved would not be material. Building improvements related to the Centenary Extension project are depreciated over 50 years.

Major improvements to Club premises are written off on a straight line basis over six to fifteen years from the date of completion of the refurbishment.

Computer equipment is written off on a straight line basis over three years.

Minor additions to the furniture, fittings, equipment and other improvements to the Club premises have been written off directly against revenue.

The Club does not capitalise donated assets principally comprising works of art.

Intangible fixed assets and amortisation

Intangible assets are recorded at cost within the financial statements and relate to computer software. Software is being amortised over a period of 10 years.

Allocation of support costs

Support costs include back office costs, finance, personnel, payroll and governance costs which support the Club's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The allocations of support costs are set out in note 2.

Staff Costs

The Club operates a Group Personal Pension Plan with Legal and General. Contributions to the Plan are charged to the income and expenditure account. Redundancy and termination payments are included in the income and expenditure account within the relevant activity line on an accruals basis.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Debtors

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

Page 27

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

1 ACCOUNTING POLICIES (continued)

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Land & Buildings

The original land and buildings are recorded at cost within the financial statements. Management have considered depreciation to be immaterial due to the estimated useful economic life of the building being greater than 50 years and the estimated residual value of the building is greater than the carrying value in the accounts.

Creditors and provisions

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

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised as unrealised gains/losses in the Statement of Financial Activities, unless they are included in a hedging arrangement. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Judgements in applying accounting policies and key sources of estimation uncertainty

In the process of applying its accounting policies, the Club is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the Club evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraph details the estimate and judgement the Club believes to have the most significant impact on the annual results under FRS 102.

Page 28

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

2 Income generated from charitable activities

2025
£
Subscriptions
2,572,492
Food & beverages
4,305,783
Accomodation
3,614,346
Events
229,516
Other
42,985
10,765,122
Analysis of total expenditure
Staff Costs
Direct costs
Support
costs
Depreciation &
amortisation
Club operating costs
5,812,396
1,737,314
1,902,699
1,024,951
Donations made
-
-
10,000
-
Trading activities
536,977
169,541
369,724
-
Raising funds
30,382
-
3,242
-
6,379,755
1,906,855
2,285,665
1,024,951
Staff Costs
Direct costs
Support
costs
Depreciation &
amortisation
Club operating costs
5,978,081
1,856,183
1,929,209
989,457
Donations made
-
-
10,000
-
Trading activities
-
171,428
-
-
Raising funds
2,694
-
-
-
5,980,775
2,027,611
1,939,209
989,457
2025
Support Costs
£
Staff costs
1,437,223
Office expenses
254,708
Property expenses
1,281,434
Other support costs
660,102
Governance costs
89,421
3,722,888
Governance costs
Audit costs
31,352
Legal
37,055
Trustee costs & committee expenses
21,014
89,421
Income from charitable activities in 2025 has decreased due to a reallocation of income from the
RAFCTC, the Club's trading subsidiary.		 2024
£
2,411,199
4,543,601
4,466,304
239,767
113,681
11,774,552
2025 Total
10,477,360
10,000
1,076,242
33,624
11,597,226
2024 Total
10,752,930
10,000
171,428
2,694
10,937,052
2024
£
1,421,192
253,989
1,007,573
613,515
64,132
3,360,401
46,000
2,966
15,166
64,132
Club to

3 Analysis of total expenditure

Page 29

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

4
Net income / (expenditure) for the year
This is stated after charging the following:
Auditors' remuneration - Audit
Auditors' remuneration - Other services
Deprecation
Amortisation
5 Employee and staff costs
The average number of contracts for Full Time and Part Time staff were:
Staff costs were as follows:
Wages and salaries
Agency
Social security costs
Pension costs
The number of staff who fell within the following bands were:
£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£170,000 - £179,999		 2025
£
26,652
4,700
999,143
25,808
2025
No.
174
2025
£
5,279,194
272,959
577,600
250,002
6,379,755
2025
No.
1
4
-
-
1
1		 2024
£
28,750
23,125
984,102
5,355
2024
No.
136
2024
£
5,065,446
217,574
454,307
243,448
5,980,775
2024
No.
2
2
1
1
-
1

The Trading subsidiary, RAFCTC, incurred £536,377 in staff costs (2024: £65,383) which are included within Trading Activities expenditure.

6 Trustees' Remuneration and reimbursed expenses

The key management personnel of the parent charity, the Club, comprise the Trustees and the Executive Team. The total employee remuneration and benefits of the key management personnel of the Club were £705,235 (2024: £683,249).

No Trustees received remuneration for their services during the year. The charity trustees were not paid from employment with the Club or its subsidiary in the year (2024: Nil). No Club trustee received payment for professional or other services supplied to the Club (2024: Nil). During the year 10 trustees (2024: 12 trustees) were reimbursed expenses totalling £3,191 (2024: £7,699).

Page 30

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

7 Tangible fixed assets

Group and Club
Cost or valuation
At 1 January 2025
Transfers
Additions
Disposals
At 31 December 2025
Depreciation
At 1 January 2025
Provided for the year
Disposals
At 31 December 2025
Net Book Value
At 31 December 2025
At 31 December 2024		 Freehold
£
1,638,395
-
-
-
1,638,395
-
-
-
-
1,638,395
1,638,395		 Land &
Building
£
15,361,289
90,968
1,776,580
(4,463,877)
12,764,960
7,939,924
498,551
(4,463,877)
3,974,598
8,790,362
7,421,365		 Plant &
Machinery
£
2,382,889
15,041
262,400
(1,019,760)
1,640,570
1,978,588
156,673
(1,019,760)
1,115,501
525,069
404,301		 Bedrooms
£
7,693,438
-
298,540
(6,565,138)
1,426,840
7,482,844
156,103
(6,565,138)
1,073,809
353,031
210,594		 Computer
Hardware
£
2,382,889
-
32,184
(2,015,718)
399,355
1,978,589
187,816
(2,015,718)
150,687
248,668
404,300		 Assets
under
Construction
£
130,465
(130,465)
163,802
-
163,802
-
-
-
-
163,802
130,465		 Total
£
29,589,365
(24,456)
2,533,506
(14,064,493)
18,033,922
19,379,945
999,143
(14,064,493)
6,314,595
11,719,327
10,209,420

All the fixed assets are used for charitable activities.

In addition to the capitalised fixed assets, the Club has an extensive collection of paintings, sculptures and bronzes, other objects d'art and books and documents, either purchased by or donated or loaned to the Club. These represent a history of both aircraft and those who served in or were associated with the RAF. The cost of those items, and especially paintings, purchased by the Club is insignificant in terms of the value of the whole collection, which is irreplaceable. The Trustees do not believe that the significant cost involved in valuing the whole collection for accounting puposes would derive significant additional benefit to the user of the accounts in terms of assessing the Trustees' stewardship of the assets. Consequently, these assets have not been capitalised in the financial statements. A full inventory is kept for insurance purposes.

During 2025, the Finance Team upgraded the accounting system to include a dedicated fixed assets module. As part of this upgrade, the manual fixed asset records were migrated into the new system. The migration process involved a detailed review of the fixed asset register, including the removal of fully depreciated assets and the expansion of asset categories to improve the accuracy and consistency of fixed asset classification.

8 Intangible fixed assets

Intangible fixed assets
Cost or valuation
At 1 January 2025
Transfers
Additions
At 31 December 2025
Amortisation
At 1 January 2025
Provided for the year
At 31 December 2025
Net Book Value
At 31 December 2025
At 31 December 2024		 Computer
software
£
102,385
24,456
72,465
199,306
5,354
25,808
31,162
168,144
97,031		 Assets
under
Construction
£
-
-
104,452
104,452
-
-
-
104,452
-		 Total
£
102,385
24,456
176,917
303,758
5,354
25,808
31,162
272,596
97,031

Page 31

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

9 Investments
Charity:
Shares in subsidiary company at cost
At 31 December 2025		 2025
£
100
100		 2024
£
100
100

The Club has a wholly owned subsidiary, RAFCTC Limited, which operates the trading activity of the Club and gift aids its suplus to the Club. The subsidiary is registered in England and Wales (registration number 06590556).

Profit and loss account
Turnover
Cost of sales
Gross profit
Administation expenses (net of interest receivable)
Profit for the financial year
Amount payable under gift aid to the Club
Balance sheet
Net current assets
Share capital
10 Stock
Group and Club
Goods for resale
11 Debtors
2025
2024
£
£
Trade debtors
129,055
200,609
Other debtors
356,506
128,152
Prepayments and accrued income
193,085
99,495
Amounts due from subsidiaries
-
-
678,646
428,256
Group		 2025
2024
£
£
1,429,396
298,971
(940,869)
(99,881)
488,527
199,090
(135,373)
(71,547)
353,154
127,543
353,154
127,543
100
100
100
100
2025
2024
£
£
98,387
94,601
98,387
94,601
2025
2024
£
£
91,717
172,159
356,506
153,747
193,085
99,495
214,257
167,103
855,565
592,504
Club

Page 32

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

12
Trade creditors
Other creditors
Other taxation and social security
Accruals and deferred income
13 Analysis of deferred income
Deferred income at 1 January
Applied during the year
Released during the year
Deferred income at 31 December
CREDITORS: amounts falling due
within one year		 2025
2024
£
£
553,609
360,544
245,902
605,138
561,455
115,639
386,144
485,340
1,747,110
1,566,661
2025
2024
£
£
233,012
229,171
290,189
233,012
(233,012)
(229,171)
290,189
233,012
Group
Group		 2025
2024
£
£
553,583
357,534
198,595
590,298
553,601
115,639
386,144
482,840
1,691,923
1,546,311
2025
2024
£
£
233,012
229,171
290,189
233,012
(233,012)
(229,171)
290,189
233,012
Club
Club

Deferred income relates to subscriptions received in advance relating to the subsequent year.

14 Operating lease commitments

As at 31 December 2025, the club had annual lease commitments totalling:

Leases expiring within 1 year
Leases expiring within 1-5 years		 2025
Other
£
24,308
33,735
58,043		 2024
Other
£
3,224
3,224
6,448

15 Capital commitments

There were £1,548,508 in capital commitments in the year ended 2025 (2024: Nil) relating to the refurbishment of the main kitchen. The project included a redesign to enhance operational efficiency, the replacement of obsolete gas ovens with energy-efficient induction ovens, and upgrades to the extraction systems. In addition, the Dining Room air conditioning system was upgraded as part of the overall works.

Page 33

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

----- Start of picture text -----
16 Statement of funds
At 31
At 1 January
Group Income Expenditure Transfers December
2025
2025
£ £ £ £ £
Unrestricted Funds
General fund 969,564 12,655,681 (11,511,600) (1,701,472) 412,173
Designated:
Fixed assets fund 10,306,451 - - 1,685,472 11,991,923
Legacy fund 35,883 319,250 - - 355,133
Friends of the RAF Club 76,334 157,000 (73,909) - 159,425
Fine art and stained window
13,459 - (11,717) 16,000 17,742
fund
Staff welfare 19,309 - - - 19,309
Total designated funds 10,451,436 476,250 (85,626) 1,701,472 12,543,532
Total unrestricted funds 11,421,000 13,131,931 (11,597,226) - 12,955,705
Restricted Funds
601 Squadron - Victoria Bar
7,478 - - - 7,478
refurbishment
Total restricted funds 7,478 - - - 7,478
Total funds 11,428,478 13,131,931 (11,597,226) - 12,963,183
At 31
At 1 January
Group Income Expenditure Transfers December
2024
2024
£ £ £ £ £
Unrestricted Funds
General fund - 1,264,381 - (294,817) 969,564
Designated:
Fixed assets fund 10,011,634 - - 294,817 10,306,451
Legacy fund 35,883 - - - 35,883
Friends of the RAF Club (9,790) 86,124 - 76,334
Fine art and stained window
15,000 - (1,541) - 13,459
fund
Staff welfare 19,859 - (550) - 19,309
Total designated funds 10,072,586 86,124 (2,091) 294,817 10,451,436
Total unrestricted funds 10,072,586 1,350,505 (2,091) - 11,421,000
Restricted Funds
601 Squadron - Victoria Bar
7,478 - - - 7,478
refurbishment
Staff fund 4,016 4,814 (8,830) - -
Total restricted funds 11,494 4,814 (8,830) - 7,478
Total funds 10,084,080 1,355,319 (10,921) - 11,428,478
----- End of picture text -----

Page 34

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

16 Statement of funds (cont.)

The income funds of the Club comprise Restricted and Unrestricted Funds. The Unrestricted Funds include the following designated funds which have been set aside out of the unrestricted funds by the Trustees for specific purposes.

The Fixed Assets fund represents the net book value of fixed assets held by the group. The transfer represents the movements in the net book value of fixed assets in the year.

The Legacy Fund was created to receive monies specifically left to the Club in Members' wills. The Board authorises expenditure against the fund for the benefit of the Club.

The Friends of the RAF Club was launched in November 2021 and is open to all Club Members who wish to formally contribute to the enhancement of the Club's facilities through making regular donations in addition to the annual membership subscription. Regular donations are not tied to specific projects or particular expenditure and flow through the designated unrestricted Friends of the RAF Club Fund. The Funds are deployed to finance tangible enhancements to the Club's facilities or fund acquisition of additional equipment for the benefit of Members. Investments are made in consultation with Friends.

The Fine Art and Stained Window Fund, which resulted from an appeal, is used to purchase works of art that primarily cover historical gaps in the Club's collection. The transfer is to increase the fund to the expected amount to be spent in the future.

The Staff Welfare Fund has been set up to support employees and their families who are in short-term need, hardship or stress.

The Restricted Fund, 601 Squadron — Victoria Bar Refurbishment, was established in 2021 and includes donations from members of 601 Squadron, Royal Auxiliary Air Force, specifically to fund the refurbishment of the Victoria Bar for the benefit of all Club Members. The refurbishment commenced in the final quarter of 2021 and was completed in the first half of 2022.

Page 35

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

17 Analysis of group net assets between funds

At 31 December 2025
General
Funds
£
Fixed assets
-
Net current assets
412,173
412,173
At 31 December 2024
General
Funds
£
Fixed assets
-
Net current assets
969,564
969,564
Analysis of Club net assets between funds
At 31 December 2025
General
Funds
£
Fixed assets
-
Net current assets
412,173
412,173
At 31 December 2024
General
Funds
£
Fixed assets
-
Net current assets
969,464
969,464		 Designated
Funds
£
11,991,923
551,609
12,543,532
Designated
Funds
£
10,306,451
144,985
10,451,436
Designated
Funds
£
11,992,023
551,509
12,543,532
Designated
Funds
£
10,306,551
144,985
10,451,536		 Restricted
Funds
£
-
7,478
7,478
Restricted
Funds
£
-
7,478
7,478
Restricted
Funds
£
-
7,478
7,478
Restricted
Funds
£
-
7,478
7,478		 Total
£
11,991,923
971,260
12,963,183
Total
£
10,306,451
1,122,027
11,428,478
Total
£
11,992,023
971,160
12,963,183
Total
£
10,306,551
1,121,927
11,428,478

Page 36

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

18 Comparative Statement of Financial Activities - year ended 31 December 2024

Note
Income from:
Charitable activities
Club income
2
Donations and Legacies
Donations from appeals and friends of the Club
Other trading activities
Trading activities
Investment income
Total Income
Expenditure on:
Charitable expenditure
Club operating costs
Donations made
Other trading activities
Trading activities
Raising funds
Fundraising costs
Total expenditure
3
Net income / (expenditure) and net
movement in funds
Balance brought forward
Balance carried forward		 Unrestricted
Funds
£
11,774,552
168,814
298,971
34,299
12,276,636
10,744,100
10,000
171,428
2,694
10,928,222
1,348,414
10,072,586
11,421,000		 Restricted
Funds
£
-
4,814
-
-
4,814
8,830
-
-
-
8,830
(4,016)
11,494
7,478		 Total
2024
£
11,774,552
173,628
298,971
34,299
12,281,450
10,752,930
10,000
171,428
2,694
10,937,052
1,344,398
10,084,080
11,428,478

Page 37

The Royal Air Force Club Notes to the financial statements (continued) Year ended 31 December 2025

19 Members' liability

The Charity is governed by its Memorandum and Articles of Association and limits the liability of each member to £1. The members of the Board of Trustees are Directors of the Company for the purposes of the Companies Act 2006 and serve as Trustees of the charitable company.

20 Related party disclosures

At the year end RAFCTC Limited, a subsidiary wholly owned by the Royal Air Force Club, Owed the Club £214,257 (2024: £275,178).

During the year Trustees made donations to the club totalling £2,710 (2024: nil).

Members of the Board of Trustees are also members of the Royal Air Force Club and pay membership fees on an arm's length basis. These amounts are immaterial and fall due in the normal course of membership and thus the balances have not been disclosed in the financial statements.

Page 38