OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-06-30-accounts

Registered number: 06819026 Charity number: 1128686

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2025

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Foundation, its Trustees and Advisers 1
Trustees' Report 2 - 10
Independent Examiner's Report 11 - 12
Statement of Financial Activities 13
Balance Sheet 14 - 15
Notes to the Financial Statements 16 - 31

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2025

Trustees A A Ferrier (resigned 7 December 2024)
R D Fuller
G Mead (resigned 7 December 2024)
J F Neale
Dr C J Phillpotts (resigned 20 September 2024)
C E Green
J E Pedler
J S Steward
V Feetham (co-opted 7 December 2024)
Company registered
number
06819026
Charity registered
number
1128686
Registered office
The Hunt House
70 High Street
Paulerspury
Northants
NN12 7NA
Company secretary
T S Dinsdale (appointed 19 December 2024)
Accountants
Streets Chartered Accountants
Potton House
Wyboston Lakes
Great North Road
Bedford
MK44 3BZ

Page 1

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2025

The Trustees present their annual report together with the financial statements of the Foundation for the 1 July 2024 to 30 June 2025. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Foundation qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

2025 End of year accounts - Chairman’s Report

The current board has been very busy during this financial year.

These have included the following:

Our lack of members (398 as at the 30th June 2025 of which 188 are Life Members) is still of major concern to the Trustees.

Foundation Funding

The Foundation has two main sources of funding which are, the net rental income from Hunt House and donations. I have given a breakdown of each below.

Hunt House net rental income

Income:
The rental income from the R.R.E.C. £60,620
Total general donations (including annual donations) £39,533
10% for sale of archive material £12,005
Legacies £50,000
Events £508
Other incl. interest £197
Total £162,86

£162,863

Page 2

THE SIR HENRY ROYCE MEMORIAL FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Costs:

38% of total Electricity bill £2,599 38% of total Gas bill £3,638 50% of Rates bill £2,003 38% of refuse £0 38% of water rates £106 50% of Buildings insurance cost £6,684 Maintenance cost in 2024/5 Financial year £25,529 38% of cleaning bill £10,948 (paid to R.R.E.C.)

Total costs

£31,892 (excluding staff etc)

We also sadly lost our president Charles Tabor this year who left the Foundation a legacy of £50,000, for which we are truly grateful.

The Foundation board has spent £25,529 this financial year on the maintenance of the Hunt House. We have suggested a budget for the 2026 financial year of a further £35,000 (to take account of roof repairs), without tackling the major repairs to the conservatory. The Grade 2 listing restricts what can be done in the way of improvements and upgrades.

You should be aware that this is mainly due to the lack of maintenance during the pandemic.

This does not include the costs of actually running the Foundation e.g. West Wittering files indexing, staff costs, IT costs, audit fees, mandatory insurance costs etc. Therefore, without substantial additional donations the Foundation will again find itself in a deficit situation in 2025/26.

As noted before the Foundation board has been notified by the R.R.E.C. that is considering moving out of Hunt House at some stage. The Foundation is in discussions with the R.R.E.C. to ensure a seamless move as far as members of both organisations are concerned should this ever happen.

If the R.R.E.C. do move out the future of Hunt House will be subject to regular reviews by the Foundation. We would expect to let out parts of the Hunt House to new tenants after undertaking some changes to facilitate this.

Donations

Like most clubs and charities the Foundation has suffered a significant reduction in members over the last few years due to various reasons. One hurdle has been that the R.R.E.C. no longer allow R.R.E.C. members to become Foundation members or to give a donation to the Foundation at the same time as renewing their R.R.E.C. membership or donate to the Foundation from within the R.R.E.C. website.

Page 3

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

We currently have 398 members (anyone who pays £30 or more a year) of which 188 are Life members who, having paid a one-off fee, no longer have to make donations to the Foundation to stay a member, although some continue to make regular donations.

In addition, we received £1,200 in restricted donations. Restricted donations can only be used for the designated purpose and not to cover running expenses e.g. awards or acquisitions.

Events and Lectures

The Foundation held its main event, the Heritage Weekend. This was considered a success and attended by 46 members and guests. We have already arranged the Heritage Weekend for November 2025 and hope to welcome more motoring enthusiasts from the R.R.E.C. and other clubs during the next year.

In addition, the Foundation hopes to renew its customary programme of educational lectures during 2025/26.

Awards

The Foundation continues to support the IET Awards with a certificate, medal and a cash award. We will continue to do this as well as looking for other opportunities to further our charitable aims.

Related parties

Any connection between a trustee or senior manager of the Foundation and a business arrangement must be disclosed to the full board of Directors in the same way as any other contractual relationship with a related party. As at the end of this financial year no members of the board of the Foundation are also board members of the R.R.E.C.

Trustee Remuneration

None of our trustees receive remuneration or other benefit from their work with the Foundation.

Notes on the 2025 accounts

Accountants

We are very happy with our current accountants, Street Chartered Accountants.

Significant items in this year’s accounts

The Foundation has spent a significant amount of money on repairs to Hunt House during this financial year.

This lack of any other regular income other than the rent for Hunt House from the R.R.E.C. has meant that the Foundation is severely limited in what charitable works in can undertake. The Foundation board are not happy with this but currently cannot see a way forward whilst the costs of maintaining Hunt house are so high.

What the Foundation board undertook in the 2024/25 Financial year

The Foundation has now funded and made images from the West Wittering and Experimental files freely available to the public whilst asking for donations. This is a first for the Foundation with nearly 57,500 of those images indexed as at the end of June 2025, with more being indexed every month.

The Foundation Board organised Open Days for the community to raise awareness and introduce people to the wonderful Heritage of the Honourable Charles Rolls and Sir Henry Royce. 66 school children and staff from the local Primary school attended to celebrate the 80th Anniversary of WWII on 9th May and the following day the

Page 4

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Hunt House was open to the community in the surrounding areas. SHRMF played host to Sir John Stuttard who launched a book co-authored with Roger Tanner “Rolls-Royce in East Africa”. The event was very successful in receiving many donations and several new members to the Foundation. The SHRMF has also hosted visits from several organisations and clubs including the Daventry 41Club, Milton Keynes Aviation Society, Michael Web R.R.B.S.A. and the R.R.E.C. Middlesex section.

The Future, what the Foundation board would like to achieve

The Foundation board are committed to making more of the archives available to the public and are in discussions with Bentley Motors, Rolls Royce Motor Cars, the W. O. Bentley Foundation and both the R.R.E.C. and BDC to help achieve this. We are also investigating how we might make the artifacts at Hunt House available to be viewed by more members of the public.

The Foundation board are committed to helping young people take up engineering apprenticeships, especially in car maintenance and restoration. We can only do this if we can attract substantially more members and donations.

Finally, it should never be forgotten that the Foundation is a charity and needs donations to continue to undertake charitable works.

A little recent history of the Sir Henry Royce Memorial Foundation

What it does not do

Page 5

THE SIR HENRY ROYCE MEMORIAL FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

In addition to what the Foundation does, this is what we intend to add

We are aware that we have set ourselves some tasks here and this will not happen overnight but the aspirations are worthwhile and we hope will go some way to a fitting memorial of Sir Henry’s memory.

R D Fuller Chair of Trustees

Date: 23 October 2025

Page 6

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Objectives and activities

a. Policies and objectives

The purposes of the Foundation are:

To promote the advancement of the science and technology of engineering and in particular the science of mechanical engineering relating to car restoration, its history and development for the public benefit and the pursuit of excellence in the science of engineering.

To advance education including, but not exclusively, by the following means:

Providing and maintaining:

Significant activities:

The Foundation is principally engaged in the preservation of the Legacy of Sir Henry Royce and the support of excellence in engineering.

The strategies employed to achieve the Foundation's aims and objects are:

Page 7

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Objectives and activities (continued)

Putting these strategies into action the Foundation has five main areas of activity:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. The Trustees are of the view that, as all the activities of the Foundation are directly or indirectly those of a museum or are educational in nature, they are therefore for the public benefit (especially making the Experimental and West Wittering files available on line for free public use).

Achievements and performance

a. Investment policy and performance

The Trustees, having regard to the liquidity requirements of operating the Foundation, have kept available cash resources in interest-bearing deposit accounts. Their plan is to achieve a rate on deposit that matches or exceeds inflation as measured by the retail prices index however in today’s market this has not been possible.

The other significant investment is in the Hunt House. The property is of mixed use and, whilst a part of the building is retained to house the archival records; part is leased on a formal lease to R.R.E.C. Limited. The terms of the lease are set out in the accounting policies.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Principal risks and uncertainties

The Trustees’ policy is to have a low appetite for risk.

Assessment and management of risk is built into the day-to-day management of all activities of the Foundation, through mechanisms that ensure the long-term sustainability of its activities. A risk register documents the main risks identified and the actions necessary for mitigation. The Board review and agree these at least once a year and the Trustees receive reports by exception.

Page 8

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

The Trustees have defined and assessed the major risks to which the Foundation is exposed, in particular, those relating to heritage, operations and finances of the Foundation and are satisfied that robust systems are in place to mitigate their impact. In examining the major strategic, business and operational threats facing the Foundation, the Trustees have considered both the likelihood and the potential impacts arising from them, giving special attention to matters of dependency of income, public perception, adverse publicity, staff employment implications, staff turnover, criminal/civil law issues and government policy. All of these risks are rigorously monitored and, as a consequence, there is continuing focus on evolving danger. Following identification, the necessary steps to maximise the impact of recovery actions are agreed and executed.

The following are viewed as significant potential risks:

Lack of experienced Trustees:

The Foundation board recognises the need for more Trustees to serve on the Foundation board.

The process is ongoing and the recruitment of new Trustees is attracting different skill sets to the Board.

Operational Risks:

The physical security of heritage archives, historic artefacts and the systems associated with their coordination is a key risk, but the Trustees consider appropriate safeguards are in place.

Financial Risks:

The dependence on a dominant source of income is a major risk issue in theory, the provider of The Foundation’s main income (R.R.E.C. Limited and its members) leases the Foundation’s premises to utilise as its operating base. The Trustees have started to put into place plans for the continued use of the Hunt House should the RREC not be a source of revenue. The Reserves Policy reflects and addresses the financial risks as defined above.

Structure, governance and management

a. Constitution

The Sir Henry Royce Memorial Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Methods of appointment or election of Trustees

A Board of Directors governs the Foundation. The Board delegates the day-to-day management of the Foundation to the Foundation staff. The present membership of the Board of Directors is set out on page 1. The maximum number of Directors allowed by the Memorandum and Articles of Association is twenty and the minimum number is four, but is limited to twelve by the rules set down in the Policies and Procedures Manual Part A, which can only be amended by the members in a General Meeting.

In accordance with the Memorandum and Articles of Association, new Directors may be appointed either by the Members at a General Meeting, or, in certain circumstances, by the Directors. The Directors may appoint a person who is willing to act to be a Director subject to clauses 16.5 and 16.6 of the Articles of Association and Section 1 of the Policy and Procedures Manual Part A.

Induction and training of new trustees:

Upon election a new Director is given a welcome pack including a brief history of the Foundation, a copy of the

Page 9

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

Structure, governance and management (continued)

Memorandum & Articles of Association, a skills matrix to determine how best they can support the Foundation or a web link to the Charity Commission’s guidance notes for trustees such as "The Essential Trustee: What You Need to Know" (Leaflets CC3, CC3a and CC29 refer).

c. Trustees' indemnities

The Charity had qualifying third party indemnity provision for the benefit of the Trustees (who are also Directors of The Sir Henry Royce Memorial Foundation for the purposes of company law) and Officers of the Charity in place during the financial year.

Statement of Trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees 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 Foundation and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Foundation's transactions and disclose with reasonable accuracy at any time the financial position of the Foundation 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

R D Fuller Chair of Trustees Date: 23 October 2025

Page 10

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 JUNE 2025

Independent Examiner's Report to the Trustees of The Sir Henry Royce Memorial Foundation ('the Foundation')

I report to the charity Trustees on my examination of the accounts of the Foundation for the year ended 30 June 2024.

Responsibilities and Basis of Report

As the Trustees of the Foundation (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Foundation are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Foundation's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Foundation as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Page 11

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025

This report is made solely to the Foundation's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Foundation's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Foundation and the Foundation's Trustees as a body, for my work or for this report.

Signed: Dated: 23 October 2025

Mr A Endersby

FCA

Streets S J Males Basepoint Business and Innovation Centre 110 Butterfield Great Marlings Luton LU2 8DL

Page 12

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2025

Note
Income from:
Donations and legacies
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
Other expenditure
6
Total expenditure
Net income/(expenditure)
Transfers between funds
16
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
89,609
13,398
65,686
168,693
108,904
3,064
111,968
56,725
(8,536)
48,189
1,927,856
48,189
1,976,045		 Restricted
funds
2025
£
1,300
-
-
1,300
8,536
-
8,536
(7,236)
8,536
1,300
13,778
1,300
15,078		 Total
funds
2025
£
90,909
13,398
65,686
169,993
117,440
3,064
120,504
49,489
-
49,489
1,941,634
49,489
1,991,123		 Total
funds
2024
£
22,799
3,671
66,737
93,207
150,572
-
150,572
(57,365)
-
(57,365)
1,998,999
(57,365)
1,941,634

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 16 to 31 form part of these financial statements.

Page 13

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 06819026

BALANCE SHEET AS AT 30 JUNE 2025

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Investments
14
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 30,288
63,711
163,064
257,063
(6,557)		 2025
£
1,740,615
2
1,740,617
250,506
1,991,123
1,991,123
1,991,123
15,078
1,976,045
1,991,123		 41,155
60,955
146,316
248,426
(47,002)		 2024
£
1,740,208
2
1,740,210
201,424
1,941,634
1,941,634
1,941,634
13,778
1,927,856
1,941,634

The Foundation was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 14

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 06819026

BALANCE SHEET (CONTINUED) AS AT 30 JUNE 2025

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

R D Fuller Chair of Trustees Date: 23 October 2025

The notes on pages 16 to 31 form part of these financial statements.

Page 15

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

1. General information

As set out in the trustees' report, The Sir Henry Royce Memorial Foundation, is a charitable incorporated organisation registered in England adn Wales. The address of their registested office is The Hunt House, 70 High Street, Paulerspury, Northants, NN12 7NA.

The financial statements are prepared in sterling, which is the functional curremcy of the entity.

The charity's obejectives are stated in th trustees report.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

The Sir Henry Royce Memorial Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Page 16

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

2. Accounting policies (continued)

2.2 Income

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Foundation has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Foundation, can be reliably measured.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Foundation's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Foundation which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 17

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

2. Accounting policies (continued)

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Foundation's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 18

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Mixed Use Property - Hunt House

The Foundation has granted a lease to R.R.E.C. Limited for its occupancy of the Hunt House. The lease was for a period of 21 years and commenced on 16 June 2012. The rent was set at £30,000 per annum from 16 June 2012 with review every four years after advice being taken from an appropriate professional. The last rent review occurred in July 2020 and the new rent set at £48,500 per annum. The Trustees have taken professional advice about the current appropriate level of rent and will be in discussion with the directors of R.R.E.C. Limited in respect of the review. Any change in rent will be backdated to 16 June 2024.

There is an obligation for the tenant to grant a simultaneous sub lease to the Foundation, giving the Foundation rights of occupation of certain parts, together with rights of access and use over substantial other areas at effectively no rental cost. The sub-tenant in this case will pay a service charge as a proportion of the costs for maintaining the premises.

The tenant, R.R.E.C. Limited, however remains responsible for the management and security and general administration of the whole complex.

Accordingly, the freehold property owned by the Foundation is designated as a mixed-use property as it is used in part to generate rental income from R.R.E.C. Limited and in part under a sub-lease back to the Foundation for archival and lecture facilities and for its own administrative purposes. Therefore, the value of the Hunt House has been divided between investment property and property held for operational use as a tangible fixed asset.

The lease of the Hunt House has been designated as an investment property and its value initially measured at cost and will be subsequently valued at fair value. The sub-lease back to the Foundation, albeit disclosed in tangible fixed assets, is included in the accounts at a value initially measured at cost and will be subsequently valued at fair value.

As the property is held at fair value, no depreciation is being accrued in respect of either part in accordance with the Charities SORP (FRS 102).

Page 19

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

2. Accounting policies (continued)

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.7 Debtors

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 trade discounts due.

2.8 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.

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Foundation anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.10 Financial instruments

The Foundation only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 20

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

2. Accounting policies (continued)

2.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Donations
Legacies
Total 2024		 Unrestricted
funds
2025
£
39,609
50,000
89,609
20,399		 Restricted
funds
2025
£
1,300
-
1,300
2,400		 Total
funds
2025
£
40,909
50,000
90,909
22,799		 Total
funds
2024
£
22,799
-
22,799

4. Income from other trading activities

Income from fundraising events

Lectures and visits
Event income		 Unrestricted
funds
2025
£
12,890
508
13,398		 Total
funds
2025
£
12,890
508
13,398		 Total
funds
2024
£
3,963
(292)
3,671

Page 21

(A Company Limited by Guarantee)

THE SIR HENRY ROYCE MEMORIAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

5. Investment income

Unrestricted
funds
2025
£
Rents received
60,620
Deposit account interest
5,066
65,686
Total 2024
66,737		 Total
funds
2025
£
60,620
5,066
65,686
66,737		 Total
funds
2024
£
65,000
1,737
66,737

6. Other expenditure

Unrestricted Total Total
funds funds funds
2025 2025 2024
£ £ £
Event expenditure 3,064 3,064 -

7. Analysis of expenditure by activities

Charitable expenditure
Total 2024		 Activities
undertaken
directly
2025
£
10,374
13,124		 Support
costs
2025
£
107,066
137,448		 Total
funds
2025
£
117,440
150,572		 Total
funds
2024
£
150,572

Page 22

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Depreciation
Associate administration
Archive expenses
Awards expenditure
Total 2024
Analysis of support costs
Staff costs
Property costs
Property insurance
Other expenses
CRM costs
Outsourcing costs
Legal costs
Governance costs
Total 2024		 Activities
2025
£
693
799
8,605
277
10,374
13,124
Activities
2025
£
43,691
16,766
8,787
11,510
4,069
-
14,973
7,270
107,066
137,448		 Total
funds
2025
£
693
799
8,605
277
10,374
13,124
Total
funds
2025
£
43,691
16,766
8,787
11,510
4,069
-
14,973
7,270
107,066
137,448		 Total
funds
2024
£
5,489
-
5,208
2,427
13,124
Total
funds
2024
£
49,812
55,415
1,595
11,358
3,729
5,666
-
9,873
137,448

Page 23

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

8. Independent examiner's remuneration

2025 2024
£ £
Fees payable to the Foundation's independent examiner for the
independent examination of the Foundation's annual accounts 2,220 2,100

9. Staff costs

Wages and salaries
Contribution to defined contribution pension schemes		 2025
£
43,014
677
43,691		 2024
£
48,959
853
49,812

The average number of persons employed by the Foundation during the year was as follows:

2025 2024
No. No.
Admin 2 2

No employee received remuneration amounting to more than £60,000 in either year.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 30 June 2025, expenses totalling £ 3,195 were reimbursed or paid directly to 5 Trustees (2024 - £816 to 2 Trustees) . These expenses were reimbursement of legitimate expenses incurred by trustees on Foundation business.

Page 24

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

11. Tangible fixed assets

Cost or valuation
At 1 July 2024
Additions
At 30 June 2025
Depreciation
At 1 July 2024
Charge for the year
At 30 June 2025
Net book value
At 30 June 2025
At 30 June 2024		 Freehold
property
£
1,739,000
-
1,739,000
-
-
-
1,739,000
1,739,000		 Plant and
machinery
£
181,481
1,100
182,581
181,450
214
181,664
917
31		 Fixtures and
fittings
£
295,243
-
295,243
295,243
-
295,243
-
-		 Computer
equipment
£
1,435
-
1,435
258
479
737
698
1,177		 Total
£
2,217,159
1,100
2,218,259
476,951
693
477,644
1,740,615
1,740,208

The freehold property above relates to Hunt House, 70 High Street, Paulerspury, Northants, NN12 7NA.

Page 25

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

12. Fixed asset investments

Cost or valuation
At 1 July 2024
At 30 June 2025
Net book value
At 30 June 2025
At 30 June 2024		 Investments
in
subsidiary
companies
£
2
2
2
2

Principal subsidiaries

The following was a subsidiary undertaking of the Foundation:

Name Company Class of Holding Included in
number shares consolidation
Sir Henry Royce Limited 02857720 Ordinary 100% No
The financial results of the subsidiary for the year were:
Name Net assets
£
Sir Henry Royce Limited (21,658)

Page 26

(A Company Limited by Guarantee)

THE SIR HENRY ROYCE MEMORIAL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

13. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
Current asset investments
Fixed term deposit account		 2025
£
8,321
13,258
8,709
30,288
2025
£
63,711		 2024
£
26,093
8,342
6,720
41,155
2024
£
60,955

14. Current asset investments

Page 27

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

15. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Accruals and deferred income		 2025
£
2,325
10
4,222
6,557		 2024
£
42,173
2,346
2,483
47,002

16. Statement of funds

Statement of funds - current year


Unrestricted funds
General Funds
Tangible Fixed Assets
Restricted funds
Awards
Artefacts
Autocar Binding
Archiving
Philip Hall Award
Total of funds		 Balance at 1
July 2024
£
187,646
1,740,210
1,927,856
-
11,628
1,150
-
1,000
13,778
1,941,634		 Income
£
168,693
-
168,693
-
1,300
-
-
-
1,300
169,993		 Expenditure
£
(111,273)
(695)
(111,968)
(250)
-
-
(8,286)
-
(8,536)
(120,504)		 Transfers
in/out
£
(9,636)
1,100
(8,536)
250
-
-
8,286
-
8,536
-		 Balance at
30 June
2025
£
235,430
1,740,615
1,976,045
-
12,928
1,150
-
1,000
15,078
1,991,123

Page 28

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Tangible Fixed Assets
Restricted funds
Awards
Artefacts
Autocar Binding
Archiving
Philip Hall Award
Total of funds		 Balance at
1 July 2023
£
240,253
1,744,264
1,984,517
1,990
9,228
1,150
1,114
1,000
14,482
1,998,999		 Income
£
90,807
-
90,807
-
2,400
-
-
-
2,400
93,207		 Expenditure
£
(137,448)
(5,489)
(142,937)
(2,427)
-
-
(5,208)
-
(7,635)
(150,572)		 Transfers
in/out
£
(5,966)
1,435
(4,531)
437
-
-
4,094
-
4,531
-		 Balance at
30 June
2024
£
187,646
1,740,210
1,927,856
-
11,628
1,150
-
1,000
13,778
1,941,634

17. Summary of funds Summary of funds - current year

General funds
Restricted funds		 Balance at 1
July 2024
£
1,927,856
13,778
1,941,634		 Income
£
168,693
1,300
169,993		 Expenditure
£
(111,968)
(8,536)
(120,504)		 Transfers
in/out
£
(8,536)
8,536
-		 Balance at
30 June
2025
£
1,976,045
15,078
1,991,123

Page 29

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

17. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 July 2023
£
1,984,517
14,482
1,998,999		 Income
£
90,807
2,400
93,207		 Expenditure
£
(142,937)
(7,635)
(150,572)		 Transfers
in/out
£
(4,531)
4,531
-		 Balance at
30 June
2024
£
1,927,856
13,778
1,941,634

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2025
£
Tangible fixed assets
1,740,615
Fixed asset investments
2
Current assets
241,985
Creditors due within one year
(6,557)
Total
1,976,045		 Restricted
funds
2025
£
-
-
15,078
-
15,078		 Total
funds
2025
£
1,740,615
2
257,063
(6,557)
1,991,123

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2024
£
-
-
-
-
-		 Restricted
funds
2024
£
-
-
13,778
-
13,778		 Endowment
funds
2024
£
1,740,208
2
234,648
(47,002)
1,927,856		 Total
funds
2024
£
1,740,208
2
248,426
(47,002)
1,941,634

Page 30

THE SIR HENRY ROYCE MEMORIAL FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

19. Related party transactions

The charity has a working relationship with R.R.E.C. Limited. In 2025 the following transactions took place between the trust:

All the above funding was received to provide services in respect of maintenance and every day running expenses of The Hunt House and has been included in the financial statements under expenditure on charitable activities. The outstanding balance with R.R.E.C. Limited as at 30 June 2025 was £7,601 owed to the Foundation and £1,716 owed from the Foundation (2024: £26,093 owed to the Foundation and £37,066 owed from the Foundation).

Page 31