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2025-08-31-accounts

'I'he Merchant Taylors, Schools Crosby Annual Report & Accounts st For the year ended 31 August 2025 Registered Company: 06654276 Registered Charity Number: 1125485

The Merchant Taylors’ Schools, Crosby Contents for the Year Ended 31 August 2025

CONTENTS

Page

1-12 REPORT OF THE GOVERNORS
(incorporating the Strategic Report)
13 STATEMENT OF GOVERNORS’ REPONSIBILITIES
14-17 INDEPENDENT AUDITOR’S REPORT
18-19 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING THE INCOME AND EXPENDITURE ACCOUNT
20 CONSOLIDATED AND SCHOOL BALANCE SHEETS
21 CONSOLIDATED CASH FLOW STATEMENT
22-26 STATEMENT OF ACCOUNTING POLICIES
27-35 NOTES TO THE ACCOUNTS

The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

The Governors are pleased to present their annual report for the year ended 31 August 2025 under the Charities Act 2011 and the Companies Act 2006, together with the audited accounts for the period, and confirm that the latter comply with the requirements of the Acts, the Charity Commission's Scheme and the Charities SORP 2019.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document – Constitution and Objects

The School is a registered charity (registered number 1125485) and is incorporated under the Companies Act 2006 as a company limited by guarantee and not having a share capital (registered number 6654276). The Charity is governed by the Memorandum and Articles of Association dated 15 July 2008.

The School undertaking and expendable assets of Merchant Taylors’ Schools of the Foundation of John Harrison (the previous unincorporated charity registered under number 526681), were transferred to the Company on 1 September 2008 to form part of the corporate property of the Company. A Charity Commission Scheme was sealed on 28 August 2008 and came into effect on 1 September 2008. This Scheme replaces the former trusts of the unincorporated charity and renames it Merchant Taylors’ Schools of the Foundation of John Harrison Trust. The Scheme appoints the Company as sole corporate Trustee of the unincorporated charity and the Schools’ permanent endowment properties and various prize and scholarship funds. The Scheme includes a uniting direction, so that the unincorporated charity is treated as forming part of the Company for the purposes of charity registration and accounting.

Governing Body

The Governing Body consists of a maximum of three Nominated Governors and eleven Co-opted Governors, all of whom are appointed for renewable periods of three years. The Nominated Governors are nominated, one each, by the Merchant Taylors’ Company, the Committee of the Merchant Taylors’ Old Girls’ Association and the Committee of the Merchant Taylors’ Old Boys’ Association. The Governors who served during this financial year are listed on page 11.

No employee of the Charity can be a Governor and no fee or other remuneration (other than the repayment of reasonable expenses incurred in relation to their duties for the Charity) is payable to Governors. All Governors are also Directors of the Company.

Charity Governance Code

The Charity Governance Code is designed as a tool to support continuous improvement. The Board, having reviewed the Code’s key principles, considers its governance structure and arrangements to be appropriate for the nature of the School’s operations, and as such has decided not to formally adopt the Code. The Board does however regularly revisit the Code’s key principles to ensure that the highest standards of governance are maintained.

Recruitment and Training of Governors

When a vacancy arises for a Nominated Governor, the Board confers with the relevant organisation to identify candidates with the specialist skills required.

In the case of the Co-Opted Governors, when a vacancy arises, the Governors approach or advertise for candidates who they consider are appropriate and would widen the Board's representation and skills. Nominees are considered by the Nominations Committee who review their skills and suitability for the

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

Governing Body before making a recommendation to the Board. Prospective Governors are then appointed following an affirmative vote by the Board and successful receipt of DBS check and character references.

New Governors are provided with an induction pack containing the governing documents and other information about the School, and information on the responsibilities of Governors. They also have the opportunity to meet the Executive Team and other Governors, tailored to their specific requirements. All Governors take part in annual training and briefings on topical subjects incorporated into the program of Governors’ Meetings, with external speakers/trainers being brought in as appropriate. Governors are also encouraged to attend training events run for the sector by external bodies such as the Association of Governing Bodies of Independent Schools (AGBIS). Governors are also expected to regularly attend Board and sub-committee meetings..

Organisational Management

The Governors, as the Charity's Trustees, are legally responsible for the overall management and control of the School. They meet as a full Board at least four times a year. The work of implementing their policies is carried out by a number of Committees, details of which are given on page 11. Each Committee meets at least once a term.

The day to day running of the School is delegated to the Senior Officers, namely the Headmaster, the Senior Deputy Head, the Head of Prep, the Director of Finance & Resources, the Director of Operations & Estates and the Head of Marketing & Admissions. They meet regularly as the Executive Management Team and are supported by their senior management teams. The Senior Officers attend meetings of the Governors and their Committees.

The remuneration of the Senior Officers is reviewed annually. The Governors set the remuneration levels through benchmarking against levels in other Schools of a similar size and character, available through external reports produced for the sector, and based on the performance of the individuals concerned.

Group Structure and Relationships

The School’s fundraising activities are carried out by a separate registered charity, The Merchant Taylors' School General Charitable Trust, for whom the School provides office accommodation and other support services. The Trustees are current Governors of the School.

The School has close contact with their connected associations. Some financial assistance for bursaries is given by the Harrison Society (the alumni association) and the Merchant Taylors' Company. The School greatly values its connections with these associations.

A wholly owned trading subsidiary, Merchant Taylors’ Schools Crosby Services Limited, promotes commercial activities which use the School’s assets to generate income. Any profit from these activities is gift aided to the School.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The Charity's objects, as set out in the Memorandum of Association, are to advance the education of boys and girls by the provision of day and/or boarding schools in or near Crosby and by ancillary or incidental educational activities and other associated activities for the benefit of the community. The School shall include instruction in accordance with the principles of the Christian faith, except that any pupils may be exempted from such instruction, in accordance with any policy set by the Governors from time to time. The Governors have complied with the duty under Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission and the Governors have paid due regard to this guidance in deciding what activities the charitable company should undertake.

Aims and Public Benefit

Within these objects, the School’s aims are as follows:

In the furthering of these aims, the Governors, as the Charity Trustees, have complied with the duty in s.17 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the public benefit requirement under that Act.

Principal activities of the period

The Charity principally provides education to boys and girls from the ages of 4 to 18.

Grant making policy

The Governors are committed to ensuring that access to the education the School offers is not restricted to those who can afford the fees. The Governors’ policy is to make bursary awards on the basis of the individual's educational ability, individual personal circumstances and their parents' financial circumstances, subject to any particular conditions imposed by the original donor where the award is out of restricted funds. Bursary awards may also be made to relieve hardship where an existing pupil’s education would otherwise be at risk, for example in the case of bereavement or redundancy. With the exception of a limited number of scholarships, all assistance now awarded is means-tested and can amount to 100% of the tuition fee.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

Report on Merchant Taylors’ Charitable and Community Activities and Public Benefit

Public Benefit through Fundraising, Bursaries and Grant-making

The Governors have given regard to The Charity Commission’s guidance on public benefit. The School is committed to open and inclusionary access for children irrespective of their financial background.

Giving is a fundamental pillar of our community. Giving is not a new concept for us; we were founded thanks to a generous legacy and the generosity of benefactors has contributed to many hundreds of bursary pupils passing through the School over the centuries.

We are working to embed giving in the very fabric of the School and we want to continue to ensure that the most academically able pupils from the area should be able to join our Merchants’ family, regardless of their circumstance.

We are fortunate to have a strong and growing community of donors who support the School.

Bursaries form an integral part of life at the School; we invest c£1m per year in offering means-tested places to academically excellent pupils who deserve to be part of our community. The bursary offering is part-supported by generous donations from the School’s wider community including the Harrison Society (the School’s alumni association).

During this year, total bursaries, grants and allowances totaled £870,862 per note 1a (2024: £919,572), benefitting 143 pupils.

Public Benefit through Educational Excellence

The School is delighted to have been recognised as the top-performing independent school in Merseyside by the Sunday Times Parent Power. This reflects the continued strengthening of the School’s academic outcomes at both GCSE and A-Level. This year’s results included 47% of GCSE grades at 9-7, 86% achieving Grade 5+ in English and Maths, and 66% of A-Level grades at A*-B. This is a real credit to the ambition and character of the School’s pupils, and the expertise, care and consistency of its staff, and the School’s investment in innovative learning and staff CPD.

Within the Preparatory School, a reflective and value-added tracking system for PIRA (reading) and PUMA (mathematics) data is used, and increased use of online testing ensures that we have a good set of data to build upon as pupils move into the senior schools. Pupils in Years 3 and 5 sit the CAT4 test, which further supports tracking within the Prep as well as supporting transition into Year 7.

The School has sought to develop more opportunities for pupils to participate in co-curricular activities with academic stretch sitting alongside sport, music, drama, CCF, outdoor education and service, because character is strengthened by disciplined effort, teamwork and contribution beyond oneself.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

Public Benefit through Partnership

As might be expected of a School that boasts a 400-year-old history, it holds many long-term partnerships with organisations across the city, county and region. Guided by our values of Ambition, Character, and Excellence, the School actively engages in a wide array of charitable. As well as benefiting many good causes, this work also helps to develop a sense of social responsibility in our pupils. We share our facilities with organisations for free or at significantly discounted rates. We share expertise, coaching and equipment, and pupils from local maintained schools are invited to attend musical and dramatic productions during the course of the year, including special matinee performances exclusively for them. Our partnerships are at the heart of what we do.

The School hosts a variety of sporting events for children at local and regional level, provides financial support and use of facilities to Northern Hockey and Cricket Club and has a strong relationship with Waterloo RFC, Marine FC and Formby CC including sponsorship, joint events and providing use of each other’s facilities. Furthermore, the School is proud to be a regional hub for the MCC Cricket Foundation, Lancashire CC Regional Development Centre, Sale Sharks Training Academy and Scottish Rugby Qualified Pathway Programme.

The School’s Sports Centre has significant community use – it is open to the public during evenings and weekends and includes a gym and a programme of dance and fitness classes which any member of the public can attend. This includes approximately 500 young people from the local community accessing our Holiday Clubs and Sports Camps.

A community and charitable ethos is also encouraged throughout the School and each year support numerous local and national charities, raising in the region of £20,000, through the combined efforts of pupils, parents and staff. In addition, the School’s pupils undertake weekly community service placements in local schools, local charities and local nursing homes.

Public Benefit through savings to the taxpayer

In 2024-25, the School educated approximately 1,000 children at no cost to the state, saving the taxpayer over £8 million annually, based on the published data for the cost of educating a child in the maintained sector.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

STRATEGIC REPORT

Operational Performance

In early 2024, the School announced that the Senior Boys and Senior Girls Schools would merge to form ‑ a single co educational institution, effective from September 2025. As a result, 2024/25 was designated a transition year, with a budgeted operational deficit planned to support the restructuring process and ensure a smooth consolidation. The reduced financial performance during the year was therefore anticipated, and actual results were ahead of budgeted expectations.

Future Strategic Direction

The School has set out a clear and ambitious vision to be the leading independent school in Merseyside.

The strategy is built around five priorities: Achievement, Care, Challenge, Innovation, and Outreach, each aimed at nurturing ambition, character, and excellence. It commits to a rich and challenging curriculum, ‑ exceptional pastoral care, broad co curricular opportunities, and a culture of curiosity and creativity. The School’s outward ‑ facing vision strengthens partnerships across Merseyside, expands opportunities for pupils, and deepens its role as a community hub for service and collaboration.

A comprehensive Estates Masterplan underpins this direction, investing in modern, inspiring facilitiesincluding the refurbishment of the Swimming Pool, a Wellbeing Centre, enhanced Sixth Form provision, refurbished teaching spaces, and state ‑ of ‑ the ‑ art environments for sport, STEAM, and digital learning.

Together, these commitments position Merchant Taylors’ to deliver an education that is academically ‑ rigorous, inclusive, values driven, and responsive to societal change. This ensures that all pupils can thrive, lead, and contribute meaningfully to the world around them.

Financial Review and Results for the Year

The accounts for the period show a reduced out-turn compared to the prior year, with net outgoing unrestricted funds before depreciation and gains/losses in investments of £271,531 (2024: incoming £803,815) and total net outgoing resources of £1,604,882 (2024: incoming £268,949).

Tuition fee income has decreased by 8.5% from prior year. Other income is largely in line with the prior year. Employment costs represent 60% of total expenditure in line with prior year.

The School’s trading company (Merchant Taylors’ Schools Crosby Services Limited) continues to hire out facilities during the holidays and outside school hours as well as running the Sports Centre and delivering holiday camps and specialist sport camps. This has generated a £55,820 surplus (2024: £42,944) due to improved performance.

The School is well resourced and has invested in information technology including software, infrastructure and digital teaching learning a pupil 1:1 device scheme. Significant work has also gone into maintenance of the estate, in order to establish a solid base from which to pursue future capital development.

The School is invested in an ongoing capital expenditure plan to allow buildings to be updated. The School’s buildings were valued for insurance purposes at £101m in October 2024, representing the estimated rebuilding costs, fees and VAT. There was a deficit on the School’s investments of £288,062 (2024: £719,921 surplus).

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

There have been no significant events since the year end affecting the Company.

External Factors

From January 2025, the School was required to charge VAT on tuition fees and other educational supplies, such as music tuition, sports coaching and activity clubs. The School is conscious of the impact of this increase on families and the affordability of an independent education and has worked strenuously to minimise its impact on parents.

From April 2025, the School lost charitable relief on business rates causing an unavoidable increase in overheads. Furthermore, the reduction in the threshold and increase in the rate of employer’s national insurance contributions has increased staff costs from April 2024.

This is a period where all independent schools are facing significant challenges in the medium term and the School intends to navigate this period with robust forecasting, planning and cost management, and without compromising the quality of its provision.

Reserves Policy

As at 31 August 2025, the School had total funds of £26,891k (2024: £28,495k). These are set out in notes 14-16 of these accounts. Of these funds, £9,427k (2024: £9,793k) are restricted, primarily for use for grants and bursaries, and £1,925k (2024: £1,999k ) are treated as a permanent endowment, part of which is invested in land and buildings. Unrestricted funds totaling £15,554k (2024: £16,703k) are tied up largely in fixed assets and there are therefore limited free reserves as disclosed per note 17, with the policy being to reinvest in developing buildings, facilities and resources, whilst also ensuring that cashflow overall remains positive. There is a strategic plan in place to improve the free reserves position over the next five years. The Governors are satisfied that the School has sufficient financing available to meet its working capital requirements.

The Governors have considered the level of reserves and financial forecasts in determining that The Merchant Taylors’ Schools, Crosby is a going concern.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

Risk Management

The Board of Governors is responsible for the management of the strategic risks faced by the School.

The School has a Strategic Risk Register in place, it is reviewed at every Board Meeting and also by each sub-Committee to ensure there is sufficient oversight of key strategic risks and their ongoing management.

The monitoring and re-forecasting of the ongoing impact of external inflationary pressures on finances has had increased focus over the last academic year and will continue to do so. Alongside this, ongoing modelling and review is in place to ensure the School has a clear view of the impact of all the potential regulatory and legislative changes that the School may face in the future.

Through the risk management processes, the Governors are satisfied that the major risks identified are adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that risks have been adequately managed. The key controls used by the Charity to manage risks include:

The Governors have given consideration to the basis of preparing the financial statements in the context of the challenging times affecting the sector. Having done so, the Governors consider that the going concern basis remains appropriate.

Fundraising Policy

Section 162a of the Charities Act 2011 requires Charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes”. Such amounts receivable are presented in our accounts as “voluntary income” which includes legacies and grants.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund raisers, or third parties. The day to day management of all income generation is delegated to the Executive Team, who are accountable to the Trustees. The charity is not bound by undertakings to be subject to any regulatory scheme and the charity does not consider it necessary to comply with any voluntary code of practice.

We have received no complaints in relation to fundraising activities.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

INVESTMENT REPORT

Investment Policy and Objectives

The School’s investments are managed on behalf of the Board of Governors in accordance with the Trustee Act 2000. CCLA Investment Management Limited were appointed as the School’s Investment Manager in October 2020 with investments held in their COIF Charity Funds.

The Governors accept that the attainment of the long-term investment objectives requires the acceptance of a certain level of risk which manifests itself in the volatility of, and occasional declines in, the capital value of the funds. The Governors seek to minimise the risks in a manner which is consistent with the attainment of the investment objectives.

In order to achieve these objectives, the Investment Manager is required to ensure an adequate degree of diversification across a range of asset classes of varying degrees of risk. The degree of risk to which the portfolios are exposed will vary from time-to-time in accordance with economic and market conditions and the Investment Manager’s views thereon, but in order to control the limits of risk tolerance, the Governors have agreed a set of ranges for the level of investment in each asset class.

The overall portfolio will be benchmarked against CPI + 5%.

Report from the School’s Investment Manager (CCLA Investment Management Limited)

US equities reached new highs in late 2024 on strong earnings and continued enthusiasm for artificial intelligence (AI), but early 2025 brought weakness - particularly in technology - after China’s DeepSeek launched a low-cost AI competitor. Political uncertainty around tariff announcements added further pressure, driving US equities to 14-month lows in April before they rebounded as earnings growth remained robust and tariffs were temporarily paused. By Q3 2025, global markets had recovered strongly. The MSCI World Index gained over 9% in the quarter (in GBP terms), led by technology, communications services and consumer discretionary companies.

Regional divergence remained clear. The US delivered positive but volatile performance, with high valuations increasing sensitivity to earnings disappointments. UK and eurozone markets produced mixed returns amid political transitions, fiscal considerations and evolving rate-cut expectations.

Fixed income outcomes varied. Initial rate cuts supported bond prices, but long-dated yields rose late in 2024 as investors adjusted expectations for further easing. While this weighed on bond returns at certain times over the 12-month period, falling inflation and clearer central-bank communication helped stabilise markets as the period progressed.

The returns from the COIF Investment Fund (the Fund) were behind benchmark at -3% for the period largely due to underweighting in US tech equities. There was a small shift in asset allocation around the tariff turmoil, a reduction in equities in favour of cash and bonds, before this was reversed later in the year. The Fund’s allocation to infrastructure assets also reduced over the period, with most of the renewable energy assets having been sold.

The Fund’s focus on quality equities, those that have strong balance sheets, robust cash-flow generation and high returns on capital, in aggregate resulted in poor relative performance, with quality as a factor continuing to underperform the broader market. The Fund’s positioning was challenged during periods of strong equity rallies, particularly in the latter part of the period, although high-quality companies continued to benefit from stable long-term fundamentals and are the mainstay of the equity portfolio. The expectation is that as markets broaden out and some of the exuberance around AI disruption dissipates, that quality equities will once more prevail.

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

EQUAL OPPORTUNITIES

The School welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that the School will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes.

The School is an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the ground of race, religion, sex, sexual orientation, disability, being pregnant or on maternity leave, being married or in a civil partnership or gender reassignment. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

The School is committed to safeguarding and promoting the welfare of its pupils and expects all staff and volunteers to share this commitment. In the last two separate Independent School Inspectorate reports, the pastoral care provided by our Form Tutors, Heads of House and Year, was described as ‘excellent’. Parents are given regular information about their children’s social and academic progress through parent evenings in addition to the traditional end of term and year reports. We maintain regular contact with parents throughout the year through informal contacts and through our newsletter. All pupils have a Class Teacher or Form Tutor responsible for pastoral care and academic development. We also have systems of peer support in assisting teaching staff in enforcing the School’s very vigorous anti-bullying policy.

STAFF

The Governors are very appreciative of the dedicated contribution made by all the School’s staff, without whom the high standard and achievements would not have been possible.

AUDITORS

Crowe UK LLP were appointed as auditors in September 2021.

So far as each of the Governors is aware at the time the report is approved:

Report of the Governors, incorporating a strategic report, approved by the Board of Governors, as the company directors and signed on behalf of the Board on 27 May 2026 by:

Mr P J Marshall KC Chair of the Board of Governors

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

MEMBERS OF THE BOARD OF GOVERNORS

(the dates in brackets indicate the year in which the current term of appointment expires)

Governor (end of current term) Appointing Body Date First Appointed

Chair of the Board of Governors

Mr P J Marshall KC 2019
Nominative Governors
Mr P J Marshall KC Merchant Taylors’ Old Boys Association 2019
Miss A Gervasoni Merchant Taylors’ Old Girls Association 2016
(resigned 18 December 2025)
Revd C A Cowling Merchant Taylors’ Company 2017
Co-optative Governors
Appointed by the Board of Governors
Mrs S Gascoigne (resigned 18 December 2024) 2018
Dr M Agarwal (resigned 12 September 2025) 2019
Mrs G Johnston 2020
Mr C Green 2020
Mr C Sinclair 2022
Miss E Fay (resigned 28 June 2025) 2022
Mr G Mawdsley 2022
Mrs C Poole (resigned 22 January 2025) 2023
Mrs S Fletcher 2023
Mr A O’Brien 2024
Mr M King (appointed 18 December 2024) 2024
Mr J Quartermain (appointed 8 November 2024) 2024

Visitor

Master of the Merchant Taylors' Company

GOVERNORS’ COMMITTEES

Finance Committee Education and Safeguarding Committee Estates Committee Marketing & Admissions Committee Nominations Committee

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The Merchant Taylors’ Schools, Crosby Report of the Governors for the Year Ended 31 August 2025

PRINCIPAL ADVISERS

Auditors -
Crowe UK LLP
3rdfloor, St George’s House
56 Peter Street
Manchester
M2 3NQ
Bankers - Barclays Bank PLC
20 Chapel Street
Liverpool
L3 9AG
Insurance Brokers -
AJ Gallagher
Cropton House
3 Tuns Lane
Formby
Liverpool
L37 4AQ
Investment Advisers - CCLA Investment Management Limited
One Angel Lane
London
EC4R 3AB
Legal advisors - Weightmans LLP
No 1 Spinningfields
Manchester
M3 3EB

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The Merchant Taylors’ Schools, Crosby Statement of Governors’ Responsibilities for the Year Ended 31 August 2025

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors are responsible for preparing the Strategic Report, the Annual Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

In preparing these financial statements the Governors are required to:

The Governors are responsible for keeping accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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The Merchant Taylors’ Schools, Crosby Independent Auditor’s Report for the Year Ended 31 August 2025

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MERCHANT TAYLORS’ SCHOOL,

CROSBY

We have audited the financial statements of The Merchant Taylors’ Schools, Crosby (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities including the Income and Expenditure Account, the Consolidated and Schools’ Balance Sheets, the Consolidated Cash Flow Statement, the Statement of Accounting Policies 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' 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 charitable company's or the group’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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information

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The Merchant Taylors’ Schools, Crosby Independent Auditor’s Report for the Year Ended 31 August 2025

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 this gives rise to 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 our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Trustees’ report.

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

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 23, the Governors (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 Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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The Merchant Taylors’ Schools, Crosby Independent Auditor’s Report for the Year Ended 31 August 2025

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Employment Legislation and Health and Safety Legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent School’s Inspectorate, sample testing of other income and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the

16

The Merchant Taylors’ Schools, Crosby Independent Auditor’s Report for the Year Ended 31 August 2025

financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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.

Vicky Szulist Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 3[rd] floor, St George’s House 56 Peter Street Manchester M2 3NQ Date; 29[th] May 2026

17

The Merchant Taylors’ Schools, Crosby

Consolidated Statement of Financial Activities for the Year Ended 31 August 2025

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES as at 31 August 2025

Notes
Income and Endowments from:
Charitable activities
Fees Receivable
1(a)
Other educational income
2
Investments
3
Donations and legacies
4
Other trading activities
-MTS Crosby Services Limited
5
Other
2
Total Incoming resources
Expenditure on:
Raising funds
Fundraising Costs
6
Charitable Activities
7
Teaching Costs
Welfare
Premises
Marketing and publicity
Grants, bursaries, awards & prizes
1(b)
Finance and other costs
Support Costs
Governance Costs
8
-MTS Crosby Services Limited
5
Restructure Costs
6
Total Resources Expended
6,7
NET INCOMING/(OUTGOING) RESOURCES BEFORE
GAINS/(LOSS) ON INVESTMENTS
Unrealised (Losses)/Gains on investment assets:
11
NET INCOMING/(OUTGOING) REOURCES BEFORE
TRANSFERS
Transfers between funds
9
NET INCOMING/(OUTGOING) REOURCES
NET MOVEMENT IN FUNDS
Balances brought forward at 1 September 2024
Fund Balances as at 31 August 2025
14-16		 Unrestricted
Funds
£
13,033,507
610,815
24,662
151,503
127,484
13,947,971
110,891
8,677,780
1,073,357
2,557,697
197,217
16,279
739,955
1,352,362
107,764
95,683
184,430
15,113,415
(1,165,444)
-
(1,165,444)
-
(1,165,444)
(1,165,444)
16,703,409
15,537,965		 Restricted
Funds
£
237,829
555,251
793,080
870,762
870,762
(77,682)
(288,062)
(365,744)
-
(365,744)
(365,744)
9,793,491
9,427,747		 Endowed
£
-
73,693
73,693
(73,693)
-
(73,693)
-
(73,693)
(73,693)
1,998,816
1,925,123		 Total Funds
2025
£
13,033,507
610,815
262,491
555,251
151,503
127,484
14,741,051
110,891
8,677,780
1,073,357
2,631,390
197,217
887,041
739,955
1,352,362
107,764
95,683
184,430
16,057,871
(1,316,819)
(288,062)
(1,604,881)
-
(1,604,881)
(1,604,881)
28,495,716
26,890,835		 Total Funds
2024
£
14,204,992
671,513
306,139
489,148
144,845
86,293
15,902,930
116,692
8,678,436
1,231,756
2,494,458
117,281
988,521
818,893
1,676,784
51,393
101,901
77,785
16,353,900
(450,970)
719,921
268,951
-
268,951
268,951
28,226,765
28,495,716

18

The Merchant Taylors’ Schools, Crosby

Consolidated Statement of Financial Activities for the Year Ended 31 August 2025

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) as at 31 August 2024

Notes
Income and Endowments from:
Charitable activities
Fees Receivable
1(a)
Other educational income
2
Investments
3
Donations and legacies
4
Other trading activities
-MTS Crosby Services Limited
5
Other
2
Total Incoming resources
Expenditure on:
Raising funds
Fundraising Costs
6
Charitable Activities
7
Teaching Costs
Welfare
Premises
Marketing and publicity
Grants, bursaries, awards & prizes
1(b)
Finance and other costs
Support Costs
Governance Costs
8
-MTS Crosby Services Limited
5
Restructure Costs
6
Total Resources Expended
6,7
NET INCOMING/(OUTGOING) RESOURCES BEFORE
GAINS/(LOSS) ON INVESTMENTS
Unrealised (Losses)/Gains on investment assets:
11
NET INCOMING/(OUTGOING) REOURCES BEFORE
TRANSFERS
Transfers between funds
9
NET INCOMING/(OUTGOING) REOURCES
NET MOVEMENT IN FUNDS
Balances brought forward at 1 September 2023
Bursary Fund Transfer
Fund Balances as at 31 August 2024
14-17		 Unrestricted Funds
Other
Designated
£
£
14,204,992
671,513
42,049
144,845
86,293
15,149,693
-
116,692
8,678,436
1,231,756
2,420,765
117,281
17,829
818,893
1,676,784
51,393
101,901
77,787
15,309,516
(159,824)
-
(32,682)
98,335
(192,506)
98,335
2,076,749
(1,445,346)
1,884,243
(1,347,010)
1,884,243
(1,347,010)
14,819,165
1,347,010
16,703,408
-		 Restricted
Funds
£
264,089
489,148
753,237
970,692
970,692
(217,455)
654,268
436,813
436,813
436,813
9,356,678
9,793,491		 Endowed
£
-
73,693
73,693
(73,693)
(73,693)
(631,403)
(705,096)
(705,096)
2,703,912
1,998,816		 Total Funds
2024
£
14,204,992
671,513
306,139
489,148
144,845
86,293
15,902,930
116,692
8,678,436
1,231,756
2,494,458
117,281
988,521
818,893
1,676,784
51,393
101,901
77,787
16,353,901
(450,971)
719,921
268,949
-
268,949
268,949
28,226,765
28,495,714		 Total Funds
2023
£
15,038,302
652,551
349,326
462,648
155,589
65,340
16,723,756
96,464
8,619,560
1,215,336
2,221,395
140,450
1,113,921
861,292
1,768,404
54,034
69,470
195,517
16,355,843
367,913
(266,586)
101,327
-
101,327
101,327
28,818,468
(693,030)
28,226,765

19

The Merchant Taylors’ Schools, Crosby

Consolidated and Merchant Taylors’ Balance Sheets for the Year Ended 31 August 2025

CONSOLIDATED AND SCHOOL BALANCE SHEET (Company number 06654276) 31 AUGUST 2025

Notes
FIXED ASSETS
School Buildings and Equipment
10a
Investment Properties
10b
Listed investments
11
CURRENT ASSETS
Debtors
12
Stock
Bank deposit and current
accounts
CURRENT LIABILITIES
Creditors
13
NET CURRENT ASSETS
TOTAL NET ASSETS
ENDOWED FUNDS
14
Fixed Assets
Land & Building Reserve
RESTRICTED FUNDS
15
UNRESTRICTED FUNDS
Land and Buildings Reserve
16
Retained Surplus
16
TOTAL FUNDS
17		 Consolidated
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
981,687
301,765
29,567
29,567
2,119,546
2,861,954
3,130,800
3,193,286
(2,465,522)
(2,011,777)
665,277
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 Consolidated
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
981,687
301,765
29,567
29,567
2,119,546
2,861,954
3,130,800
3,193,286
(2,465,522)
(2,011,777)
665,277
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 Consolidated
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
981,687
301,765
29,567
29,567
2,119,546
2,861,954
3,130,800
3,193,286
(2,465,522)
(2,011,777)
665,277
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 Consolidated
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
981,687
301,765
29,567
29,567
2,119,546
2,861,954
3,130,800
3,193,286
(2,465,522)
(2,011,777)
665,277
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 School
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
1,102,068
381,013
29,464
29,464
1,992,166
2,773,292
3,123,698
3,183,769
(2,458,420)
(2,002,260)
665,278
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 School
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
1,102,068
381,013
29,464
29,464
1,992,166
2,773,292
3,123,698
3,183,769
(2,458,420)
(2,002,260)
665,278
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 School
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
1,102,068
381,013
29,464
29,464
1,992,166
2,773,292
3,123,698
3,183,769
(2,458,420)
(2,002,260)
665,278
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715		 School
2025
2024
£
£
£
£
18,569,709
18,776,930
140,000
140,000
7,515,847
8,397,277
26,225,556
27,314,207
1,102,068
381,013
29,464
29,464
1,992,166
2,773,292
3,123,698
3,183,769
(2,458,420)
(2,002,260)
665,278
1,181,509
26,890,833
28,495,716
1,295,845
1,295,845
629,278
702,971
9,427,747
9,793,491
115,074
115,074
15,422,889
16,588,334
26,890,833
28,495,715
26,225,556
665,277		 27,314,207
1,181,509		 26,225,556
665,278		 27,314,207
1,181,509
3,130,800
(2,465,522)		 3,193,286
(2,011,777)		 3,123,698
(2,458,420)		 3,183,769
(2,002,260)
26,890,833 28,495,716 26,890,833 28,495,716
1,295,845
629,278
9,427,747
115,074
15,422,889		 1,295,845
702,971
9,793,491
115,074
16,588,334		 1,295,845
629,278
9,427,747
115,074
15,422,889		 1,295,845
702,971
9,793,491
115,074
16,588,334
26,890,833 28,495,715 26,890,833 28,495,715

Approved and authorised for issue by the Governors and signed on their behalf on 27 May 2026 by:

C Cowling Finance Governor

The statement of accounting policies and notes on pages 22 to 35 form part of these accounts.

The School has taken advantage of an exemption as per section 408 of the Companies Act 2006 from presenting the individual income and expenditure account. The deficit for the year for School is £1,660,702 (2024: surplus of £226,005 ).

20

The Merchant Taylors’ Schools, Crosby Consolidated Cash Flow Statement the Year Ended 31 August 2025

CONSOLIDATED CASH FLOW STATEMENT

2025 2025 2024
£ £ £ £
Net cash provided by operating activities (see
below)		 (760,176) (632,211)
Cash flows from investing activities
Dividends and interest from investments
262,491		 306,139
Purchase of tangible fixed assets (838,069) (2,147,969)
Purchase of investments - -
Proceeds from sale of investments 593,345 1,852,486
Proceeds from sale of fixed assets
-		 14,000
Cash provided by investing activities 17,767 24,656
Change in cash and cash equivalents in the
reporting period		 (742,408) (607,555)
Cash and cash equivalents at the beginning of the
reporting period		 2,861,954 3,469,509
Cash and cash equivalents at the end of the
reporting period		 2,119,546 2,861,954
£ £
Reconciliation of incoming resources to net cash
inflow from operations
Net movement in funds (1,604,882) 268,949
Investment income receivable (237,829) (264,089)
Bank interest receivable (24,662) (42,049)
Depreciation of buildings 464,249 405,107
Depreciation of equipment 581,039 558,532
(Increase)/decrease in debtors (679,922) (107,181)
Decrease in stock - (2,936)
Profit from sale of fixed assets - (14,000)
Increase/(decrease) in creditors 453,745 (714,623)
Losses/(Gains) on investments 288,085 (759,921)
Losses/(Gains) on investment properties - 40,000
Net Cash inflow from operating activities (760,176) (632,211)
Analysis of change in net debt
01.09.24 Cashflows 31.08.25
£ £ £
Bank deposit and current accounts 2,861,954 (742,408) 2,119,546

21

The Merchant Taylors’ Schools, Crosby Statement of Accounting Policies the Year Ended 31 August 2025

STATEMENT OF ACCOUNTING POLICIES

Accounting Policies

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

Basis of Accounting

The School is limited by guarantee and has no share capital

The financial statements have been prepared 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 (FRS 102) effective 1 January 2019 (Charities SORP(FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.

The financial statements have been prepared in accordance with the historical cost convention, modified by the revaluation of investments and investment properties which are included at fair value.

The Trustees confirm that the Charity meets the definition of a public benefit entity under FRS 102.

The group financial statement consolidates the financial statements of the School and its subsidiary undertaking Merchants Taylors’ Crosby Services Limited. All inter group transactions are eliminated fully on consolidation. No separate statement of financial activities has been prepared for the charity as advantage of the exemption afforded by s408 of the Companies Act 2006 has been taken.

Financial Instruments

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument.

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

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

Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount to settle the obligation can be measured or estimated reliably.

Creditors and provisions are recognised at their settlement amount allowing for any trade discounts.

Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, the Governors are required to make estimates and judgements. The matters considered below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that would impact the amounts reported in the results of operations, financial positions and cash flows:

22

The Merchant Taylors’ Schools, Crosby Statement of Accounting Policies the Year Ended 31 August 2025

Other key sources of estimation uncertainty include:

Going Concern

The Governors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. In satisfaction of this responsibility, the Governors have considered the Group’s ability to meet its liabilities as they fall due for a period of at least 12 months from the signing of the financial statements. The financial statements have been prepared on a going concern basis, which principally assumes that the Group will continue to receive fee income at a sustainable level.

This is a period where all independent schools are facing significant challenges in the medium term and the School intends to navigate this period with robust forecasting, planning and cost management, and without compromising the quality of its provision. It is key that any reduction in the pupil roll as a result of these challenges is met with a corresponding reduction in operating costs. The key challenges are outlined below.

From January 2025, the School is required to charge VAT on tuition fees and other educational supplies, such as music tuition, sports coaching and activity clubs. The School is conscious of the impact of this increase on families and the affordability of an independent education and has worked strenuously to minimise its impact on parents. From April 2025, the School will lose charitable relief on business rates for an unavoidable increase in overheads. Furthermore, the reduction in the threshold and increase in the rate of employer’s national insurance contributions will also increase staff costs from this point.

The Governors have also considered the cash requirements of the School for at least 12 months from the date of this report and are satisfied that sufficient funds are available to meet the liabilities as they fall due taking into account the strength of the balance sheet and levels of cash and unrestricted investments currently held, as well as access to an arranged overdraft of £1m. As a result, the Governors believe that, whilst uncertainty exists, this does not pose a material uncertainty that would cast doubt on the School’s ability to continue as a going concern.

The Governors therefore consider it appropriate to prepare the financial statements on a going concern basis.

23

The Merchant Taylors’ Schools, Crosby Statement of Accounting Policies the Year Ended 31 August 2025

Funds Structure

The School has an endowed fund consisting of a Special Investment Capital Fund which is a permanent endowment fund originally endowed in 1974. This fund is used to support capital and infrastructure investments in the School.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. The prize and scholarship fund represents individual funds set up by a number of donors for specific prizes or scholarships. The Grants and Bursaries funds are used to provide assistance with fees, based on financial need, in the form of bursaries, scholarships, school assisted places and awards to certain pupils.

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. They include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose. The Governors have designated that the Grieve Hudson Fund should be used for providing financial assistance to pupils in the Boys’ School and the Edith Gillespie Fund should be used for providing financial assistance to pupils in the Girls’ School.

Fees and similar income

Fees receivable and other income (including trading activities and educational income) are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School, but include contributions received from restricted funds for assisted places, bursaries, scholarships and other awards.

Bank interest and listed investment income

Bank interest and listed investment income, together with the recoverable taxation, are accounted for on a receivable basis. Liquid resources are represented by bank interest in the Cash Flow Statement.

Donations and legacies

Donations and legacies received for the general purposes of the School are included as unrestricted designated funds. Donations and legacies subject to the specific wishes of donors are carried to relevant restricted funds, or to endowed funds where the amount is required to be held as permanent capital.

Resources expended

Resources expended are accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Overhead and other costs, not directly attributable to particular functional activity categories, are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, by reference to staff time.

Costs of generating funds include all financing support costs. Charitable activities include expenditure associated with the objects of the School and include both the direct costs and support costs of the activity.

Governance costs comprise the costs of running the charity, including audit fees, Governors' liability insurance, reimbursed expenses and all the costs of complying with constitutional and statutory requirements.

24

The Merchant Taylors’ Schools, Crosby Statement of Accounting Policies the Year Ended 31 August 2025

Finance Leases

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired by finance leases are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the School. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities.

Operating leases

Rentals payable are charged on a time basis over the lease term.

Pension schemes

The School contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the School. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with FRS102 therefore, the Scheme is accounted for as a defined contribution scheme.

The School also contributes to a defined contribution Administrative Staff Pension Scheme for those who wish to join it, at 8% or 6% of annual basic salary. Contributions are also made to one individual’s personal pension scheme.

Finance and other costs

Other costs include depreciation of equipment and the running cost of the School’s buses.

Recognition of liabilities

Liabilities are recognised once there is a legal or constructive obligation that commits the School to pay out resources.

Taxation

As a registered charity, the School is exempt from taxation on income and gains arising out of their charitable activities.

School buildings and equipment

Capitalisation and replacement

Land and buildings are shown in the accounts at historical cost. The Governors do not consider that it is appropriate to apply a current day value to the School’s land and buildings. A number of the properties are listed and the Governors are required to keep the buildings in a good state of repair. The costs of minor repairs are written off as incurred, major refurbishments such as the roof at the Boys’ School are capitalised.

25

The Merchant Taylors’ Schools, Crosby Statement of Accounting Policies the Year Ended 31 August 2025

Depreciation

All buildings and sports facilities are depreciated over 50 years, or over their useful life if this is considered to be less.

The depreciation of other assets aims to write off the cost over their estimated useful lives. The rates of depreciation used are as follows:

Assets under construction
Buildings and sports facilities
Motor vehicles
Equipment
Administration computers
Teaching computers		 Years
Nil
10-50
4
3-10
3-4
3-4

Not all furniture is capitalised, but is written off in full when purchased. Individual capital items costing less than £500 are written off when acquired.

Investment Properties

Investment properties are valued at open market value by an independent qualified professional. Depreciation is not provided for on these properties and any movement is reflected in the Statement of Financial Activities.

Listed investments and investment income

Listed investments are included at closing bid price value at the balance sheet date. The value of gains or losses arising from disposals and the unrealised value of market movements are included in the Statement of Financial Activities. Investment income is accounted for in the period in which the School is entitled to receipt.

Stocks

At the year end stock is accounted for on vending machines and catering food items.

Grants and Bursaries

Grants and bursaries etc. from restricted funds are included as restricted expenditure and unrestricted income in the period for which the award is given. Allowances from unrestricted funds towards school fees receivable are treated as a reduction in those fees. The disclosure of these amounts is given in note 1(a).

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

26

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

1 FEES RECEIVABLE

(a)
(b)		 Fees receivable consist of:
Gross
Fees
Less total grants, bursaries, scholarships, awards and allowances
Add bursaries, scholarships and awards paid for by Unrestricted
Funds
Add bursaries, scholarships and awards paid for by Restricted
Funds
All fees receivable were unrestricted in the current and prior year.
Movements in deferred income
Fee income deferred brought forward
Fee income receivable in the year
Fee income deferred carried forward
Gross fees recognised in the year
The total amount paid for by Restricted Funds consists of:
School Assisted Bursaries
Scholarships
Awards
Total included in gross fee income		 2025
£
13,033,507
(887,141)
12,146,366
16,279
870,862		 2024
£
14,232,021
(946,601)
13,285,420
-
919,572
13,033,507
537,461
12,749,077
(253,031)

13,033,507
745,782
108,580
16,500
870,862		 14,204,992
378,728
14,363,725
(537,461)
14,204,992
789,433
115,139
15,000
919,572

27

The Merchant Taylors’ School, Crosby

Notes to the Accounts the Year Ended 31 August 2025

2 OTHER INCOME

2025
Educational Activities
£
School Buses
610,815
All income from education activities was unrestricted in the current and prior year.
Other ancillary income
2025
£
Miscellaneous Items
127,484		 2024
£
671,513
2024
£
86,293

All other ancillary income was unrestricted in the current and prior year.

3
INVESTMENT INCOME
Bank Interest
Listed Investment Income		 2025
£
24,662
237,829
262,491		 2024
£
42,049
264,089
306,138

Investment income of £227,919 (2024: £264,089) was restricted and nil (2024: nil) was designated. All other investment income in the current and prior year was unrestricted.

4 DONATIONS AND LEGACIES

These comprise sums received from various individuals and organisations for investment in the Grants and Bursaries, Prize and Scholarships or Capital Project funds.

In 2025, £350,000 (2024: £400,000) was received from the Merchant Taylors' General Charitable Trust.

5 INVESTMENT IN SUBSIDIARY COMPANY

The School has a 100% interest in its trading subsidiary Merchant Taylors’ Crosby Services Limited which is incorporated in the United Kingdom (Company number 08668764).

The principal activity of Merchant Taylors’ Crosby Services Limited continues to be that of promoting commercial activities which use the School’s assets to generate income from lettings and other activities. Its trading results for the year, as extracted from the audited financial statements, are summarised below:

Turnover
Expenditure
Retained (loss)/profit for the year		 2025
£
151,503
(95,683)
55,820		 2024
£
144,845
(101,901)
42,944

The net assets of the subsidiary at 31 August 2025 amount to £100 (2024: £100)

28

The Merchant Taylors’ School, Crosby

Notes to the Accounts the Year Ended 31 August 2025

6
Expenditure
Other expenditure includes:
Auditors' remuneration for the statutory audit
Governors' liability insurance
Lease payments
Total staff costs were as follows:
Salaries
PAYE and National Insurance costs
Pension contributions (See Note 21)
Redundancy/ Settlement agreements
The number of employees whose emoluments exceeded £60,000
were:
£60,000-£70,000
£70,000-£80,000
£80,000-£90,000
£90,000-£100,000
£100,000-£110,000
£140,000-£150,000		 2025
£
24,960
8,400
53,298
2025
7,151,923
781,184
1,656,939
184,430
9,774,476
2025
-No
3
-
2
-
-
1		 2024
£
24,960
8,400
296,502
2024
7,259,876
727,328
1,418,933
77,787
9,483,924
2024
-No
1
1
2
1
1
-

The average total number of employees in the year was 240 (2024: 244), including 91 (2024: 88) part time staff. The average number of teaching staff employed by the School was 116 (2024: 124).

The key management personnel of the School comprised the Executive Head, the Head at the Boy’s Senior School, the Joint Interim Heads at the Girl’s Senior School, the Head at the co-educational Stanfield Preparatory School and the Director of Finance & Resources.

The Total employee benefits received by the key management personnel for their services to the charity were £501,970 (2023: £535,456). Neither the Governors nor persons connected with them received any remuneration or other benefit from the School. Expenses of £2,537 were reimbursed to 3 Governors (2024: £1,265 to 3 Governors).

29

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

ANALYSIS OF TOTAL RESOURCE 7 EXPENDED

EXPENDED
Charitable Activities:
Teaching Costs
Welfare
Premises
Marketing and publicity
Bursaries, awards and prizes (note 1b)
Finance and other costs
Fundraising
Sub-Total
Support Costs
Trading Company
Re-structure Costs
Governance Costs:
Management and administration of
the charity (note 8)		 Staff Costs
Depreciation
Other
Total 2025
2024
£
£
£
£
£
7,886,113
-
791,667
8,677,780
8,678,436
168,484
-
904,873
1,073,357
1,231,756
415,459
727,640
1,488,291
2,631,390
2,494,458
157,047
-
40,170
197,217
117,281
-
-
887,041
887,041
988,521
-
-
739,955
739,955
818,893
58,066
-
52,825
110,891
116,692
8,685,169
727,640
4,904,823
14,317,632
14,446,037
851,832
325,531
174,999
1,352,362
1,676,784
53,046
-
42,637
95,683
101,901
184,430
-
-
184,430
77,787
9,774,477
1,053,171
5,122,459
15,950,107
16,302,509
-
-
107,764
107,764
51,393
9,774,477
1,053,171
5,230,223
16,057,871
16,353,902

Bursaries awards and prizes of £979,182 (2024: £970,692) were restricted. Depreciation of £73,693 (2024: £73,693) was from endowed funds. All other expenditure in the current and prior year was unrestricted.

8 ANALYSIS OF GOVERNANCE COSTS

ANALYSIS OF GOVERNANCE COSTS
Governors' liability insurance
Auditors' remuneration (see note 6)
Legal fees
Governors' reimbursed expenses
(travel)		 2025
2024
£
£
8,400
8,400
23,050
24,960
73,777
15,132
2,537
1,256
107,764
49,748

30

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

9 TRANSFERS 2025

There were no transfers between funds in 2025.

TRANSFERS 2024

(a) transfers made in the course of normal operating
activity
Utilisation of designated unrestricted capital funds
Utilisation of capital levy		 Unrestricted
Designated
Restricted
Endowed
1,445,346
(1,445,346)
-
-
631,403
-
- (631,403)
2,076,749
(1,445,346)
- (631,403)

10a TANGIBLE FIXED ASSETS - GROUP

Cost
1 September 2024
Adjustments
Additions
Transfers
31 August 2025
Depreciation
1 September 2024
Adjustments
Charge for period
31 August 2025
Net book values
31 August 2025
31 August 2024		 Assets
under
construction
£
Freehold
Land and
Buildings
£
Long term
Leasehold
Land and
Buildings
£
Fixtures,
Fittings
and IT
Equipment
£
Total
£
3,583,834
20,995,885
93,364
3,819,444
28,492,527
10,059
-
-
-
10,059
354,898
4,593
-
470,683
830,173
(3,742,080)
3,742,080
-
-
-
206,711
24,742,558
93,364
4,290,127
29,332,759
- (7,718,111)
(93,364)
(1,904,123)
(9,715,598)
-
-
-
(2,165)
(2,165)
-
(464,249)
-
(581,039)
(1,045,289)
- (8,182,360)
(93,364)
(2,487,327)
(10,763,052)
206,711
16,560,197
-
1,802,799
18,569,709
3,583,834
13,277,774
-
1,915,321
18,776,929

10b INVESTMENT PROPERTIES - GROUP

Market value brought forward at 1 September
2024
Additions
Transfer to tangible fixed assets
Gain/(Loss) on revaluations
Market value carried forward at 31 August 2025		 £
140,000
-
-
-
140,000

31

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

Investment Properties are included on a fair value basis. External revaluations have been carried out by Clive Watkin, Berkeley Shaw and Entwistle Green all Estate Agents on a rolling three year programme and internally on an annual basis.

11 LISTED INVESTMENTS

LISTED INVESTMENTS
Market value as at 1 September 2024
(Sale)/Purchase of Fund Units
Increase/(Decrease) in market value
Market value as at 31 August 2025		 Restricted
£
Endowed
£
Total
£
8,397,277
-
8,397,277
(593,345)
-
(593,345)
(288,085)
-
(288,085)
7,515,847
-
7,515,847

All the quoted fixed asset investments are listed on a recognised Stock Exchange

12 DEBTORS

DEBTORS
Fees outstanding
Gift aid due from Subsidiary
Amount due from subsidiary undertaking
Sundry debtors and prepayments		 Consolidated
School
2025
2024
2025
2024
£
£
£
£
142,260
118,934
142,260
118,934
-
-
55,820
42,944
-
-
71,129
38,427
839,427
182,831
832,858
180,709
981,687
301,765
1,102,068
381,014

13 CREDITORS

Creditors due within one year:
Trade creditors
Deferred income
Taxation and National Insurance
Pensions
Lease Liabilities
Other creditors and accruals		 Consolidated
School
2025
2024
2025
2024
£
£
£
£
691,684
344,690
691,684
344,690
305,021
823,961
305,021
823,961
769,415
162,666
769,415
162,666
152,773
156,866
152,773
156,866
158,137
205,630
158,137
205,630
388,492
317,963
381,390
308,446
2,465,522
2,011,777
2,458,420
2,002,260

32

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

ENDOWED FUNDS - GROUP AND 14 SCHOOL

SCHOOL
Fixed Assets
Land & Building Reserve		 Balance at
01.09.24
Investment
Movement
Resources
Expended
Depreciation
Balance at
31.08.24
£
£
£
£
£
1,295,845
-
-
-
1,295,845
702,971
-
-
(73,693)
629,278
1,998,816
-
-
(73,693)
1,925,123

RESTRICTED FUNDS - GROUP AND 15 SCHOOL

Prize and
Scholarship Funds
Grant & Bursaries
Fund
Glasgow Fund		 Balance at
01.09.24
Incoming
Resources
Resources
Expended
Transfers
(Note 9)
Investment
Movement
Balance at
31.08.25
£
£
£
£
297,214
-
(108,580)
-
(4,347)
184,287
8,409,512
793,102
(707,420)
-
(245,438)
8,249,756
1,086,762
(54,758)
-
(38,300)
993,704
9,793,488
793,102
(870,758)
-
(288,085)
9,427,747

The Prize and Scholarship Funds represent individual trust funds set up by a number of donors, including the John Harrison Foundation account.

The Grants and Bursaries Funds are used to provide assistance with fees, based on financial need, in the form of bursaries, scholarships, School assisted places and awards.

The Glasgow Fund was a legacy donation used to provide bursaries at the School.

16 UNRESTRICTED FUNDS - OTHER

UNRESTRICTED FUNDS - OTHER
Balance at 1 September 2024
Net incoming resources before transfers
Transfers between funds (note 9)
Balance at 31 August 2025		 Land and
Building
Reserve
Retained
Surplus /
(Deficit)
Total
£
£
£
115,074
16,588,334
16,703,408
-
(1,165,445)
(1,165,445)
-
-
-
115,074
15,422,889
15,537,963

33

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

ALLOCATION OF THE CHARITY'S NET ASSETS 17 2025

The net assets were held in the various Funds as follows:

Endowed Funds
Restricted Funds
Unrestricted Funds		 Tangible Fixed
Assets
£
Investments
£
Net Current
Assets
£
Total
£
1,925,123
-
-
1,925,123
-
7,515,847
1,911,900
9,427,747
16,644,586
140,000
(1,246,623)
15,537,963
18,569,709
7,655,847
665,277
26,890,833

As part of the Schools’ incorporation, the Charity Commission determined that part of the School’ properties should be treated as permanent endowment. This is set out in the new Scheme dated 28th August 2008.

18 COMMITMENTS UNDER OPERATING LEASES

At 31 August 2025 the School had future minimum lease payments under non-cancellable operating leases as follows:

Operating leases which expire:
Not later than one year
Later than one year and not later than five years		 2025
2024
£
£
43,706
53,298
67,969
131,329
111,675
184,627

The operating leases shown in the table above relate to leases on photocopiers, computers and computer networks.

34

The Merchant Taylors’ School, Crosby Notes to the Accounts the Year Ended 31 August 2025

21 PENSION SCHEMES

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,526,751 ( 2024: £1,547,814 ) and at the year-end £130,188 ( 2024 - £136,974 ) was accrued in respect of contributions to this scheme.

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

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The outcome of the most recent actuarial valuation of the TPS was published in November 2023 and prepared as at 31 March 2020. The employer contribution rate increased by 5% from 1 April 2024 to ensure that the Scheme continues to meet present and future obligation. Previously, the actuarial valuation prepared as at 31 March 2016, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%, which increased to 28.68% from April 2024. The contribution rate for the full financial year 2024/25 was 28.68%.

Effective from September 2023, the School entered phased withdrawal from the TPS, with new members of teaching staff joining a defined contribution scheme. This is in line with the majority of the independent school sector, with action being taken in order to mitigate against increases in the employer’s cost of the scheme.

22 RELATED PARTIES

The School’s fundraising activities are carried out by a separate registered charity, the Merchant Taylors' General Charitable Trust, for whom the School provides office accommodation and other support services. The Trustees of the General Charitable Trust are current Governors of the School. The General Charitable Trust donated £350,000 in 2025 (2024: £400,000).

Merchant Taylors’ Schools Crosby Services Limited, a wholly owned subsidiary, carries out commercial activities and uses the School’s assets to generate income from lettings and other activities. Its year end is 31 August 2025 and the surplus of £52,640 (2024: £42,944) will be gift aided back to the School.

In the financial year there were 4 Governors (2024: 4) of the School who held office for at least part of the year and who had children enrolled at the School during the year. The arrangements for all children of Governors to be admitted to the School are consistent with those for all other children who enter the School.

There were no other related party transactions.

35

Merchant Taylors, Schools Registered Company: 06654276 Registered Charity Number: 1125485