OpenCharities

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

2024-08-31-accounts

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

Registered in England and Wales Charity Number: 1142794 Company Number: 7649422

METHODIST INDEPENDENT SCHOOLS TRUST

(A company limited by guarantee)

ANNUAL REPORT

AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2024

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

CONTENTS

Page
Reference and Administrative Details 2
Report of the Trustees (incorporating Strategic Report) 4
Independent Auditor’s Report 25
Consolidated Statement of Financial Activities 29
Consolidated and Charity Statements of Financial Position 30
Consolidated Statement of Cash Flows 31
Notes to the Financial Statements 32

page 1

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Name Methodist Independent Schools Trust

Charity Registration Number 1142794 Company Registration Number 07649422 Registered Office 66 Lincoln’s Inn Fields, London WC2A 3LH Correspondence address 27 Tavistock Square, London, WC1H 9HH

Trustees Appointment Committees
Revd Dr C T Samuel (until 9 August 2024) Chair Ex N
Mr Ian McCaig (from 1 August 2024) Chair Ex N
Revd S Burgess CC Aw Ex N
Mrs E Cleland (until 2 April 2025) CC A Ex N
Mr M Donougher (from 1 September 2024) S
Mr T Emmett T F
Mrs B Halikowa T R
Mr A Harris S
Mr S Holliday T F R
Mr J Jefferson (from 16 August 2024) CC Ex F
Mrs H Mbeah-Bankas CC F N
Mr H Monro (until 23 January 2024) T A R
Lady F Mynors T A R N
Mr A Proctor (from 1 June 2024) T F
Revd Dr J Pye Chair of District (until 31 August 2024) CC
Revd D Saunders Chair of District (1-25 September 2024) CC
Mr S Small (from 27 March 2024) T A
Mr R Thomas (until 31 August 2024) S F
Dr J N Tunnicliffe (until 31 August 2024) T Ex F
Rev’d Dr M Wakelin (from 1 September 2024) CC
Mrs G Wilson S
In attendance – not formally appointed Trustee
Mr Richard Armiger Connexional Representative until 31 August 2024 M

Appointment:

S Nominated by the Chairs of School Governing bodies CC Nominated by the Connexional Council T Nominated by the Trust

Committees:

Ex Executive F Finance & Property A Audit & Risk N Nominations & Governance Aw Awards R Remuneration & Human Resources

page 2

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Company Secretary: Felicia Fasokun (until 19 June 2024) David Martin (from 19 June 2024) Executive Officers Chief Executive Officer Judith Fenn Business Director Sue Roxby (to 31 March 2025) Bankers HSBC Bank Plc The Peak 333 Vauxhall Bridge Road London SW1V 1EJ Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Solicitors Farrer & Co LLP Pothecary Witham Weld 66 Lincoln Inn Fields 84 Eccleston Square, Pimlico London WC2A 3LH London SW1V 1PX

page 3

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

At the start of the year there were ten schools in MIST, each of which has its own distinctive character, history, and place in its local community. Whilst we give examples of the wonderful things happening in our schools in this report, more information about each one is available in detail on their website.

Trust Schools Address Head Website
(part of MIST)
Culford School
1 - 18 years		 Bury St Edmunds,
Suffolk IP2 6TX		 Mrs C Bentley
(from November
2023)		 www.culford.co.uk
Farringtons School Perry Street, Chislehurst, Mr D Jackson www.farringtons.org.uk
3 - 18 years Kent BR7 6LR
Kent College Whitstable Road, Mr M Turnbull www. kentcollege.com
3mths - 18 years Canterbury,
Kent CT2 9DT
Kent College Old Church Road, Pembury Ms K Handford www.kent-college.co.uk
Girls only at Senior and Tunbridge Wells, Kent TN2
Sixth Form 4AX
3 – 18 years
Lorenden School Painter’s Forstal, Faversham, Mr R McIntosh www.lorenden.org
3 – 11 years Kent ME13 OEM
Moorlands School Foxhill Drive, Leeds LS16 5PF Miss J Atkinson www.moorlands-
2 – 11 years school.co.uk
Queen's College Trull Road, Taunton, Mr J Noad www.queenscollege.org.uk
1 – 18 years Somerset TA1 4QS
Shebbear College* Beaworthy, Mr C Jenkins www.shebbearcollege.co.uk
4 – 18 years Devon EX21 5HJ
Truro School Trennick Lane, Truro, Mr A Johnson www.truroschool.com
3 – 18 years Cornwall TR1 1TH
Woodhouse Grove Apperley Bridge, West Mr J Lockwood www.woodhousegrove.co.uk
School Yorkshire BD10 0NR
2 – 18 years

page 4

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Where a Trust School has a trading arm which is a subsidiary of MIST, the respective subsidiary companies are as follows:

ies are as follows:
Company reg. no.
Culford School (Trading Trust) Limited 1411769
Farringtons School Enterprises Limited 2723164
Kent College (Canterbury) Enterprises Limited 2728990
Kent College (Pembury) Enterprises Limited 2728994
Moorlands School Enterprises Limited 3726256
Shebbear College Enterprises Limited (dissolved on 29 October 2024) 2728991
Queen’s College Taunton Enterprises Limited 2754531
Truro School Enterprises Limited 2728988
Woodhouse Grove Enterprises Limited 2448747

Associated Schools are Methodist Schools that have the support of MIST but are structurally completely separate from it and are administered in accordance with their own governing schemes. Their accounts are not consolidated into MIST. The information below is provided for reference only, because the Methodist Schools Property Company is Holding Trustee for their properties.

Associated School Address Charity No. Head
Ashville College Green Lane, 529577 Mrs R Wilkinson
Harrogate HG2 9JP
Kingswood School Lansdown Road, Bath 309148 Mr A Gordon-Brown
BA1 5RG
Rydal Penrhos School Colwyn Bay, 1063489 Mr T Hutchinson
North Wales LL29 7BT

Other Trusts consolidated into MIST

The following charitable trusts are members of the Methodist Independent Schools Trust Group, and as subsidiaries are included in the consolidated accounts:

Trustees/Members Activity Charity no.
The Thompson Education Methodist Schools Provision of 230422
Trust Property Company as the scholarships and
Trustee of the Methodist bursaries to Methodist
Independent Education presbyters
Trust
Woodhouse Grove School Methodist Independent Support to Woodhouse 1176406
Foundation Schools Trust (sole Grove School –
member) principally by
fundraising activities

page 5

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Linked Charities consolidated into MIST

The following charities have been linked to the Methodist Independent Schools Trust. Their finances are reported within the accounting records of the schools which work closely with them or within the MIST Head Office accounting records.

MIST School Activity Charity no.
Culford School General Culford School Charitable support of 1142794-1
Charitable Trust the school
Stratford House School Farringtons School Bursaries for children at 1142794-2
Educational Fund the school
Friends of Kent College Kent College Canterbury Furtherance of 1142794-3
Canterbury Limited education at Kent
College
The Kent College Canterbury Kent College Canterbury Charitable support of 1142794-4
Development Fund the school
Simon Rattenbury Shebbear College Assistance to boys at 1142794-5
Scholarship the school
Shebbear College Shebbear College Charitable support of 1142794-6
Development Fund the school
The Kent College (Wottonley Kent College Canterbury Scholarships and 1142794-8
House) Fund bursars to the school for
children in the local
area
Thomas Robinson Ferens Methodist Schools Provision of 1142794-9
Scholarship Bequest for Property Company as the scholarships and (previously
Methodist Schools Trustee of the Methodist bursaries 313642)
Independent Education
Trust

The following charity is linked to the Woodhouse Grove School Foundation

Southerns Memorial Woodhouse Grove University scholarships 1176406-1
Scholarship Fund for boys who have
attended Woodhouse
Grove School

page 6

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

The Trustees present their annual report together with the audited consolidated financial statements for Methodist Independent Schools Trust (“MIST”), the other charities under its control and the Trading companies for the year ended 31 August 2024. The financial statements have been prepared in accordance with the methods and principles of the FRS 102 Charities Statement of Recommended Practice (SORP), and the Companies Act 2006. The report of the Trustees serves the purpose of both a Trustees’ report and a directors’ report under company law.

Reference and administrative information

Details of the Trust, including its trustees and senior officers, and the charities and subsidiary entities that comprise the group, are given on pages 2 to 6.

Structure, governance and management

MIST was incorporated on 26 May 2011 as a company limited by guarantee and it is governed by its Articles of Association, which were last amended on 8 August 2024.

MIST operates the Trust Schools listed on page 4. MIST is also the sole shareholder of the trading subsidiaries being used for the non-primary purpose trading conducted by eight Trust Schools. The trading subsidiary for Shebbear College was dissolved on 29 October 2024; this followed the departure of the school from the Group on 30 April 2024.

The property (both leasehold and freehold) of the original Trust Schools is held within the Methodist Independent Education Trust (MIET), a charitable trust established in 1903 by Trust Deed. The trustee of MIET is the Methodist Schools Property Company (MSPC) (company number 10834289) and MSPC is the legal owner of the properties held within MIET. MSPC is a trust corporation and MIST is its sole member.

In addition to the Trust Schools, MSPC, as trustee of MIET, also acts as holding trustee for the properties of three other schools. The management of these Schools is wholly in the hands of their governing bodies, and MSPC, as trustee of MIET, is required to act under their direction. The accounts of these schools (known as “Associated Schools”) are therefore not included in the consolidated accounts, but these Schools are listed on page 5 for information.

The freehold property of Lorenden and Moorlands Schools is held directly by MIST as the legal owner.

Appointment of trustees

Members of the Trust, who are the directors of the company, are appointed by the Methodist Conference. The Articles of Association provide that the members of the Trust shall consist of the Chair, three Chairs of Governors Trustees, no more than six Connexional Council Trustees, no more than one person nominated by the District Chairs, no more than six Nominated Trustees and a Connexional Representative (who is not formally appointed Trustee). MIST seeks to be a diverse and inclusive Trustee Board, and maintains a skills matrix to support the identification of those with relevant skills and experience.

The induction and training of Board members is the responsibility of its Chair and the Chief Executive, who work with the Company Secretary to induct all new members and provide information updates and training as necessary. All Trustees visit at least one MIST school every year. Formal induction and training events for trustees, schools Chairs of Governors and senior executive staff are held regularly. The Governance Manual is regularly reviewed by Trustees, available online and circulated to the schools.

page 7

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Organisational management and group structure

Day to day administration and the conduct of education in each Trust School are delegated to a local governing body. The local governing body of each school acts in accordance with the Methodist Independent Schools’ Instrument of Government and the MIST Governance Manual, as regularly reviewed and updated.

Under the terms of the Instrument of Government, the Trust reserves to itself sole right of jurisdiction in respect of any scheme involving the disposal of property and any expenditure beyond that previously approved. The Trust remains ultimately responsible for the schools and is also responsible for the strategic direction of the group as a whole. Trustees, supported by representatives from the schools, operate through the main Board with support from number of committees with specific responsibilities: Finance & Property, Audit & Risk, Nominations & Governance, Remuneration & Human Resources, and Awards. The Chairs of Governors of the schools meet at least termly; their views are communicated to the Trust by their three nominated trustees and there are also other occasions on which trustees and Chairs meet in joint sessions. The Heads also meet as a group at least termly and have three representatives in attendance at Trustee meetings. The Trust and most of its committees meet at least three times a year. Following the year end, MIST has refreshed its Committee structure with effect from Spring 2025.

Trustee indemnity insurance is in place for the benefit of all trustees.

Key Management Personnel

The day to day running of MIST is delegated to the Chief Executive Officer (CEO) and the Business Director, supported by a team of 4.8 FTE across key business functions. The day to day running of the schools is delegated to the respective Heads and Bursars (or their equivalent) and their Senior Leadership teams. The CEO and Business Director of MIST attend all the Trustee Board’s Committees, and the Heads and Bursars attend all meetings of their Governing Body’s Committees. As such, the key management personnel for the Trust are considered to be the MIST Trustees, the CEO and Business Director, school governors and the school Heads, Bursars (or equivalent) and Senior Leadership teams.

The remuneration of key management personnel (other than trustees and school governors, who are unpaid volunteers) is set by the MIST Remuneration and Human Resources (HR) Committee for the MIST Executive, by school governors within a framework and salary scale provided by the MIST Remuneration and HR Committee for Heads, and by the school governors for Bursars. The appropriateness and relevance of the remuneration policies is reviewed annually and with a view to ensuring that the Trust is sensitive to contextual issues of pay and employment conditions.

Delivery of MIST’s charitable vision and purpose is primarily dependent on our key management personnel. Staff costs are the single largest element of our charitable expenditure.

Objectives and Activities

Charitable objects

The objects of the Trust as set out in its Articles of Association are:

page 8

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Aims and intended impact

The Methodist Church is engaged in education as part of its Christian mission in the world. Its schools seek to extend the Methodist ethos and character and contribute to diversity in education.

The Trust’s Mission Statement sets out that the Trust and its schools should aim:

Methodist Schools are welcoming communities where individuals are valued, good order is respected, relationships cherished, and where excellence in its widest sense (academic, extra- curricular, lifestyle) is pursued. Methodist Schools encourage a sense of belonging, seek to improve lives and boldly expect the impossible. In Methodist Schools educational experiences and activities bring mind and heart, intellect and passion together. Methodist Schools work in mutually beneficial partnerships with each other and the wider Methodist Church.

Methodist Schools welcome students from all backgrounds. Economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes, although some schools select on the basis of academic ability. We are an equal opportunities organisation and are committed to working environments that are free from any form of discrimination on the grounds of age, disability, gender reassignment, race, religion or belief or sex. We make reasonable adjustments to meet the needs of staff or students who are or become disabled. It is our policy to give full and fair consideration to employment applications from disabled persons having regard to their particular aptitudes and abilities.

The charity recognises the importance of internal communications and as such ensures all Head Office employees are kept informed of developments within the organisation through team briefings and

page 9

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

one-to-one discussions. We provide regular updates to schools and hold individual and group meetings with Chairs of School Governors, Chairs of School Finance Committees, Heads and Bursars.

Our strategy is shared with schools through their Chairs of Governors, supported by regular conferences and events for Chairs, Heads and Chaplains. Our key performance indicators are communicated to schools through regular meetings and correspondence with local Chairs, Chairs of Finance and Bursars in each school. Each school is required to maintain a Business Plan, underpinned by annually updated financial forecasts that look forward five years, taking into account local priorities, the wider context and the overarching strategic aims and performance requirements of MIST. There is a process of review and feedback for these plans and forecasts. See also Section 172 information commencing on p.14 for further information about trustee engagement with employees.

Our Trustees and our schools are committed to safeguarding and promoting the welfare of our students and expect all staff and volunteers to share this commitment. Parents are given regular information about their children’s social and academic progress through both formal and informal contacts from each school. There are also opportunities for parents and students to provide feedback on their experiences in our schools. All schools are inspected regularly by the Independent Schools Inspectorate (ISI), and MIST commissions regular interim safeguarding audits on behalf of the Trustees from an independent safeguarding consultant.

We treat our suppliers with respect, adopting transparent procurement arrangements and setting ourselves high standards for contract monitoring and timely payment. We aim to make a positive contribution to the local economies in which our schools operate. As a consequence, many of our suppliers have long-standing relationships with MIST, either locally or nationally.

Public Benefit

In setting their objectives and planning their activities both the Trustees and school governors have given careful consideration to the Charity Commission’s general guidance on public benefit and confirm that they have given due regard to this guidance.

The Trust and its Schools provide public benefit by:

page 10

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

events requiring specialist facilities. Many organisations (including local schools) use MIST school facilities during the year either free of charge or at heavily discounted rates; in addition, arts, crafts, drama and music festivals and other community events are hosted by MIST schools;

Bursary and grant making policy

MIST firmly believes that access to the education we offer should not only be restricted to those who can afford our fees. Our bursary awards are important in helping to ensure that children from families who otherwise would not be able to afford the fees can access the education we offer. Bursary awards are available to all who meet the general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk. In assessing means, we take into account nationally accepted criteria. Several MIST schools work actively with the Royal Springboard Foundation and HMC to widen access to means tested support. Bursaries are awarded on a sliding scale in proportion to need; some awards are for a full remission of fees.

Volunteers

All the trustees of MIST and local governors in schools are volunteers. Parents and former students also help out in a variety of roles at most of the schools, and often play a key role in fundraising for specific projects.

Streamlined Energy and Carbon Reporting

UK energy use and associated greenhouse gas emissions

Calculations comply with the Streamlined Energy and Carbon Reporting Guidelines. The assessment created for Methodist Independent Schools Trust considers data directly shared by the schools and compiled by MIST’s energy broker. The calculations hereby reported are based on data collated and provided by MIST Schools. The assessment methodology follows the HM Government Environmental Reporting Guidelines and guidelines provided by the Greenhouse Gas Protocol published by the World Business Council for Sustainable Development and the World Resources Institute (WBCSD/WRI Protocol), in conjunction with DEFRA's Greenhouse Gas conversion factors 2024.

Organisational boundary

Financial Control Approach – MIST Schools report any emissions from its operations for which it has the ability to directly influence financial and operating policies to gain economic benefit.

Reporting period

The annual reporting period is 1st September to 31st of August each year and the energy and carbon emissions reported here are for 1 September 2023 to 31 August 2024.

page 11

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Reported Greenhouse Gases (GHGs)

All greenhouse gas emissions are reported in tonnes of carbon dioxide equivalent (tCO2e) to account for all six of the Kyoto Protocol GHG’s.

Emissions factors

Conversion Factors used in this document correspond to the UK Government’s Greenhouse Gas reporting for 2024.

Intensity Ratio

The intensity ratio is total gross emissions in metric tonnes CO2e per 1,000 square meters. This metric is reported to reflect the energy efficiency of the buildings, which are the source of most emissions reported.

Energy consumption and associated emissions:

The summary table below shows the energy consumption and carbon emissions calculated for the schools belonging to MIST for the reporting period. A total of 10 schools were accounted for, noting that one of them was a part of the group for 8/12 of this reporting year.

The reduction in consumption is a result of the implementation of sustainability efforts across schools. These efforts include training and awareness raising for staff and students, adoption of an energy management portal for tracking energy use at a meter level, the roll-out of LED lighting, sensors and device shut-down regimes, ongoing transition to electric vehicles, and improvements to building fabric (replacement windows, insulation etc) to improve energy efficiency.

UK Greenhouse Gas Emissions and energy use data
for theperiod September 2023 to August 2024		 UK Greenhouse Gas Emissions and energy use data
for theperiod September 2023 to August 2024		 Period ended
August 2023
Period ended
August 2024
Total energy consumption used to calculate emissions
(kWh)
Energy consumption break down (kWh):
Scope 1		 31,427,293
30,020,959
18,365,514
16,807,547
Scope 1 Voluntarya 1,937,513
2,710,406
Scope 2 (location-based) 8,358,933
7,942,952
Scope 2 (location-based) Voluntary 2,681,444
2,467,380
Scope 3: 6 Business Travelb 83,889
92,674
Scope 1 emissions in metric(tCO2e)
Natural Gas
LPG
Company Owned Vehicles		 3,046.77
2,843.50
128.82
101.33
263.09
222.86
Site Fuels (Kerosene, Gas Oil, Diesel) Voluntary 227.39
397.84
Biomass Voluntary 10.10
7.07
Refrigerant Discharge Voluntary -
7.06

Scope 2 emissions in metric tonnes CO2e

page 12

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Purchased Electricity
1,730.92		 1,644.59
Purchased HeatVoluntary
28.80		 27.93
Scope 3 emissions in metric tonnes CO2e
Business travel -Grey Fleet
20.34		 22.41
Total gross emissions in metric tonnes CO2e
5,456.22		 5,274.60
Intensityratio tonnes CO2e/1000m1 Mandatoryonly
30.11		 28.10
Intensity ratio tonnes CO2e/1000m2 Mandatory &
Voluntary
31.65		 31.40

a Scope 1 voluntary emissions see an increase in consumption, because fuel categories were broken down this year, including Site Fuel (kerosene), Site Fuel (Diesel), Refrigerants (new this year) and Gas Oil. b Scope 3 Business Travel saw an increase in the mileage recorded for employees, since reporting quality has improved.

Strategic report

Strategies

During the year the Trust has pursued the following strategies for achieving and enhancing its purpose and vision:

MIST had a strategic plan covering the period 2020-25 which set out specific ambitions under four key headings:

  1. Christian in Character : We will work together to better understand and embed Methodist/Christian values in our practice at MIST and in the schools;

page 13

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

  1. Connected : We will be well connected with other organisations in the UK and overseas to enable greater sharing of good practice and to achieve national recognition of our distinctive place in the schools’ sector;

  2. Collaborative and Effective : We will enable collaboration between the schools that adds value to each school and the whole group; and

  3. Commercially Strong and Affordable : We will be a commercially strong family of schools with high standards of financial stewardship, enabling group economies and a commitment to bursary provision that enables wide access and provides recognised community benefit.

Fulfilling the matters set out in Section 172 (1) of the Companies Act

The table that follows sets out how MIST’s Trustees have regard to the matters in Section 172 (1)(a) to (f) of the Companies Act 2006:

Section 172
Responsibilities		 Specific examples
Long term
results: The
likely
consequences
of any decision
in the long
term		 In order to ensure that decisions are well-informed, the Trustee Board includes
three school Chair Trustees, and has three Heads in attendance on rotation. Other
Committees also have school members, and we regularly establish working
parties with wide representation from across the organisation.
Schools prepare Annual Reports for Trustees highlighting achievements and
challenges which are reviewed and discussed at Board meetings.
Ongoing implementation of our five-year strategy is reviewed regularly by
Trustees. The actions to achieve the strategy are undertaken in close partnership
with our schools. Preparation of our new strategy is founded on consultation with
stakeholders across MIST.
Our financial reporting and forecasting approach captures the five most recent
years and looks five years into the future, including capital investment
expectations. Forecasts are updated and reviewed annually at school and
consolidated level, noting performance against KPIs, and confirming key actions
both for MIST and for schools.
Authority is delegated through a well-defined structure set out in our Governance
Manual to ensure that decisions are taken by those best placed to do so. We
conducted a review of Governance during the calendar year 2024 and will be
implementing the recommendations from that work going forward, clarifying
delegation arrangements, strengthening trustee assurance and smoothing
information flows between central and local governance.

page 14

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Section 172
Responsibilities		 Specific examples
Our workforce:
The interests of
MIST’s
employees and
volunteers		 Trustees, the CEO and Business Director visit schools regularly. MIST hosts regular
events and conferences at which employees, local volunteer governors and
Trustees meet to discuss a range of strategic issues, engage with training, and
build positive relationships.
MIST is a Living Wage employer. All school and Trust employees are paid at least
the Living Wage Foundation minimum, and we are working with our contract
partners to ensure this is the case for all their staff working in our schools.
Staff well-being is a regular item at Trustee meetings, with first-hand input from
schools via Heads at every session.
Advice and guidance are provided to school Governors and senior executives to
support them in acting as good employers on MIST’s behalf. Model documents
are provided to support employment processes, and good practice is shared
across peer networks.
Our Pastoral Visitor provides central support and co-ordination for the work of
MIST (and MAST) school Chaplains, who play an important role in the spiritual and
pastoral life of our communities.
Our business
relationships:
The importance
of developing
MIST’s business
relationships
with suppliers,
customers, and
others		 Our relationships with pupils and parents are brokered by individual Schools on
behalf of MIST, and we pride ourselves on the high quality of these relationships.
Our schools provide regular opportunities for parent and pupil feedback and take
action where appropriate.
We maintain clear procedures and record-keeping for any complaints at each
School and we monitor and support our schools in responding appropriately to
the (very few) more serious complaints.
We strive to maintain good relationships with our suppliers, making payments in
a timely way and adhering to our Financial Procedures Manual in awarding
contracts in a fair and transparent manner. We encourage Schools to consider
and support local suppliers where appropriate.
MIST has good relationships with its key advisers as trusted partners whose advice
and support are founded on a clear understanding of MIST’s structure, objectives,
and priorities. We regularly review and re-tender for group-wide services and
each school reviews and re-tenders locally for the provision of local services in
order to ensure ongoing quality and value for money for the charity based on a
shared understanding of our current requirements.

page 15

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Section 172
Responsibilities		 Specific examples
The community
and our
environment:
The impact of
the MIST’s
operations on
the community
and the
environment		 It is very important to us that we have a positive impact in the communities in
which our Schools operate. We achieve this in many ways, including through
provision of bursary awards for local pupils who would not otherwise be able to
attend the school, making facilities available for local and community use
(including specialist sports, arts and theatre facilities), working in partnership with
other local schools and supporting local and national charitable organisations
through fundraising. We continue to seek ways in which we can increase the
proportion and value of means-tested in order to prioritise those families for
whom independent education would not otherwise be possible.
We identify and invest in ways to reduce our impact on the environment, and to
encourage our staff and students to be proactive in this regard. Various initiatives
aimed at improving energy efficiency have been undertaken as described on page
13. A Property Sub-Committee includes the environmental impact of the group’s
estate specifically within its remit and considers the outcome and
recommendations from the annual Streamlined Energy and Carbon Reporting.
MIST published a Net Zero strategy at the end of August 2022, in which Trustees
committed to working to achieve Net Zero by 2040. Work has been carried out to
assess the nature and scale of the work required to achieve this across our school
sites and consideration of this challenge will form part of ongoing strategic
planning.
Our desire to
maintain our
reputation for
high standards
of business
conduct		 We set ourselves high standards, which are described in our Governance Manual,
Code of Conduct, Financial Procedures Manual, and associated policies. We
monitor these standards through our regular interactions with schools and
through the Annual School reporting cycle.
We run a cycle of internal audit reviews through a mixture of internal and third-
party assessment which consider the practices and controls operating in our
Schools and check that they meet our standards – with follow-up and support as
needed.
Our Schools are regularly inspected by the Independent Schools Inspectorate and
achieve strong outcomes. These inspections facilitate surveys of parents and
students about their experience of the standard of business conduct by the
schools, and the inspection reports include any recommendations arising from
these. Our Schools typically receive very positive feedback.
We are committed to doing our utmost to ensure that modern slavery is not
taking place anywhere in our own business or our supply chains. Each of our
schools endorses that commitment and works proactively to fulfil it.
As ambassadors for the Methodist Church in their communities, our Schools
consciously set themselves high standards for considerate behaviour.

page 16

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Section 172
Responsibilities		 Specific examples
Fairness: The
need to act
fairly between
members of
MIST and its
beneficiaries		 All Trustees are encouraged to visit and get to know individual Schools, with a
rotating programme of annual visits. Annual School Reports are reviewed and
discussed by Trustees.
School matters form part of the agenda of every Trustee meeting. Financial
reporting is made available at both a School and consolidated level so that
Trustees can make informed decisions. Input and feedback are sought regularly
from Schools to inform Trustee and Executive activity and the strategic direction
of travel.
The salary scales for Heads and MIST Head Office staff are set centrally (and
reviewed annually) by a Remuneration Committee of the Trustees; all other salary
decisions are delegated to the schools.
The relationship between beneficiaries (students and families) and MIST’s Schools
is governed by a standard set of contract terms based on those widely utilised
across the independent sector and are regularly updated in line with best
practice. Our Schools operate clear Admissions policies which explain how School
places are awarded, and there is a Complaints procedure in place for use by any
beneficiary who feels they have not been treated fairly. Scholarship/bursary
awards are made on the basis of published criteria. Parents and students are
encouraged to communicate openly and regularly with staff in Schools in order
that the best possible outcomes are achieved for all our beneficiaries.
Regular meetings of Bursars, Heads, Chairs of Governors, Chairs of Finance,
Finance leads, safeguarding leads, and HR managers are facilitated by MIST in
order to share good practice, offer advice and guidance (often from third party
experts), provide transparency about MIST’s expectations, and identify and deal
with any concerns arising locally.

Fundraising standards information

The MIST schools are encouraged to carry out fund-raising activities with parents and alumni to raise additional funds to support the school in fulfilling MIST’s charitable objects. MIST maintains registration with the Fundraising Regulator, and all schools are aware of and take account of the Fundraising Standards, the Charity Commission guidance on fundraising and other relevant regulation. None of the schools used third party organisations to assist with fundraising during the year. Any fundraising activity is carefully targeted to known individuals, and notes are kept capturing contact preferences in line with the schools’ own Privacy Notices and associated policies. There have been no complaints in relation to fundraising activity in the current or previous year.

Achievements and performance

We are proud of our achievements during 2023-24 against the key objectives set out in our Group Strategic Plan 2020-25:

Christian in Character :

During the year MIST conducted two school self/peer-evaluations using its own SERVE (Spirituality, Ethos, Relationship and Values Evaluation) framework based on the Statutory Inspection of Anglican and Methodist Schools (SIAMS) process used in the maintained sector. This captures, supports and

page 17

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

share the means by which our schools demonstrate their distinctive Methodist character and ethos. One of these reports commented:

“Love permeates the actions of those leading the school, which is then reflected in the interactions between staff and pupils. This strong servant leadership creates a community, where pupils and staff successfully care for one another. This culture of care is embedded and secure. In discussions, the school’s values were strongly and succinctly summarised by staff as: “Kindness, Community and Respect”. Pupils live these values through their interactions with staff and peers giving a very real impression of Methodism in action.”

Our Pastoral Visitor continued to support Chaplains in both MIST and MAST schools through a programme of visits and facilitation of the annual Chaplains’ Conference.

One MIST school was awarded, “School of Sanctuary” status during the year, which means that they are now able to explore from a place of influence how to respond to those seeking sanctuary in our country. They have begun by welcoming those who are seeking asylum into school, giving real life stories of war and homelessness. They have also organised football matches at school alongside sports footwear donations for asylum seekers, supported by the Sports Department. “We want to promote that ‘all are welcome’ at our school.”

Connected :

Work has continued to strengthen links and networks both within and beyond the Group. Peer network meetings have continued and are important forums for the sharing of information and good practice and for debate, mutual support and advice.

The Heads of RE had their first training day last June, inviting an RE consultant to run a session. Based on its success they will run the day again in 2025.

The leads for Equity, Diversity and Inclusion in our schools prepared for their first meeting, held in September 2024, sharing good practice, challenges and planning for an in-person day at one of our schools.

The Designated Safeguarding Leads group continues to meet annually and we have increased the support and training for our Safeguarding Governors, devising a toolkit for use on conversations in schools and inviting them to a day of training and sharing of best practice.

Our schools are also members of local networks and partnerships, including with local state schools, community groups and charitable organisations.

Collaborative and Effective :

Public Examination results in Summer 2024 were very much in line with the national picture, and it was most pleasing to note that the value added for the pupils in our schools supports our deeply held view that every child can grow and succeed in their own way and time. In this way, MIST schools continue to provide an education tailored to the needs and aspirations of all pupils and each pupil.

Schools inspected by ISI during the year all demonstrated full compliance and high standards of educational provision.

Commercially Strong and Affordable :

The schools in membership of the group vary significantly in size, location, provision and offer, whilst having in common their commitment to the provision of education with a Methodist ethos. Our

page 18

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

smaller schools have found it particularly challenging to recover from the impact of the Covid pandemic, not only on overseas boarding recruitment, but also on affordability for parents in the new economic context. In order to ensure that the wider group remained commercially strong, the difficult decision was taken during the year to dispose of Shebbear College to a school group with a portfolio of similarly small schools. Further information about the impact of that disposal is shown at page 20 (Financial Review).

The group provided education to 5603 school age pupils during the year, not including those pupils at Shebbear College, which left the Group during the year (2023: 5949). 13% of our students were boarders (2023: 14%). Pupil numbers were slightly down (by 1%) year on year, not including Shebbear College in either year. All of our schools also make provision for nursery-aged children (between 3 months and 4 years old, depending on the setting).

A range of discounts are awarded by the schools to widen accessibility. Bursaries are means tested and provide for a wide range of pupils to attend who would not otherwise be able to afford to do so. There are also specific discounts available to families meeting the criteria (e.g. for staff children, for siblings, for armed forces families etc). The total remissions awarded amounted to £14,622,000, 12% of gross fee income (2023: £13,966,000, 12%). Bursaries specifically amounted to £5,150,000, 4.3% of Gross Fee Income (2023: £4,980,000, 4.4%). We are working to increase the proportion of remissions offered as means-tested bursaries in order to keep a MIST education within the reach of as many families as possible.

Income from trading activity in support of the work of the schools reached £4,558,000 (2023: £4,085,000).

£11.741m of capital expenditure took place during the year (2023: £14.102m). The largest projects were at Culford School, where work continued on replacing the roof of the listed Culford Hall at the heart of the site and at Woodhouse Grove where a set of projects including a cover to a set of netball/tennis courts and a new sixth form block were completed during the year. In addition, an astro turf was built at Lorenden Prep school to facilitate year-round outdoor sport and the hosting of matches with other schools, and a pre-fabricated Music Studio building was added to the site. Facilitating works began at Truro School for the construction of a new Music Centre with refurbished multi-use hall, creating a hub for musical education for Truro and the wider county.

Key performance indicators

The Trustees review the following key performance indicators both for the Trust and its Schools:

The Trustees review the following key performance indicators both for the Trust and its Schools:
Key Performance Indicator Progress
To maintain the high level of all-
round Methodist and Christian
education within the Schools of the
Trust.		 MIST is delighted that the schools continue to demonstrate
high levels of pupil achievement and ongoing care and
consideration for the wider community.
To achieve a financial surplus of 5%
in order to be able to make
continued investment in the
facilities needed to support the
Trust’s activities.		 The group result is for an in-year deficit following the
disposal of Shebbear College. However, three individual
schools achieved the target.

page 19

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Key Performance Indicator Progress
Free reserves to be approximately
5% of Total Income at each school.		 Every school is encouraged to build up free reserves over
time for the Group in order to mitigate unforeseen
challenges and underpin future capital investment. Five of
the schools met this target for the year.
Total internal loans to Schools to
be no more than 25% annual Gross
Fee income		 MIST plays an important role as a source of funding for
strategic investment by the schools. During the year five
schools had ongoing internal loan balances for capital
works. Total internal loan balances were 13% of GFI at year
end.

Financial Review

The results of the group have been consolidated in the attached accounts. The total net assets are £75,355,000 (2023: £81,141,000), and tangible fixed assets have increased to £108,265,000 (2023: £106,754,000).

As in previous years, just under 90% of the group’s incoming resources was school fee income in 202324, which amounted to £104.3 million in the year (2023: £99.3 million). Income from trading subsidiaries amounted to £4,558,000 (2023: £4,085,000) contributing £1,590,000 (2023: 1,177,000) after operating costs. Fundraising was carried out by some Schools at a total cost of £256,000 (2023: £218,000); voluntary income generated during the year amounted to £671,000 (2023: £648,000).

During the year (with effect from 30 April 2024) Shebbear College in Devon left the MIST family of schools to join Inspired Learning Group, an operator which owns and manages a growing group of schools and nurseries across the UK. As a smaller, rural institution, the school was unusual among the MIST family of schools and faced particular challenges in the recent economic conditions. MIST had supported the school for a number of years and had previously worked closely with it to address these challenges. This move secured a sustainable future for Shebbear College and the pupils and staff within it, which the Trustees considered to be a key priority for the MIST and for the school. The disposal was made for a nominal consideration. At the time of the disposal, the fixed and tangible assets associated with the school were valued at £4.334M on MIST’s balance sheet (after accumulated depreciation of £4.922M). After adjustment to reflect the allocation of operating assets and liabilities between MIST and the buyer, the loss on disposal for MIST was £3.289m.

The year saw an overall cash inflow despite significant capital expenditure. This is primarily a consequence of higher than usual fees in advance receipts, which are held as composition fees on the balance sheet and released into income as they fall due.

MIST operated a Revolving Credit Facility with HSBC and has met the covenants associated with that facility throughout the reporting period. Nothing was drawn against this facility at year end.

Investment Policy

The trustees are responsible for the investments held by the Trust. The policy is reviewed annually, and during this year it was agreed to continue the existing policy of maximising total return. The Funds are managed by the Methodist Church Central Board of Finance (CFB), which operates a pro-active approach to ethical and socially responsible investing shaped by Christian values. CFB is a signatory to the Principles for Responsible Investment and attained the highest rating of A+ for overall Strategy

page 20

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

and Governance in the 2020 PRI Assessment Report. The funds invested for MIST gave a rate of return in line with market conditions.

Reserves Policy Note 21 sets out the Group and Charity Funds and describes the movement on those funds during the year, whilst note 22 sets out where those Funds are held. Note 16 shows the Total Funds by subsidiary.

Endowed and Restricted Funds are either for the provision of scholarships and bursaries or relate to donations associated with specific projects.

Unrestricted funds amount to £72,330,000 (2023: £78,182,000), all of which are held in the Group’s property assets, and MIST has made regular, strategic investment both in existing and new buildings in order to protect and enhance the value in these assets. MIST’s policy is to encourage and support each school to build local reserves through the generation of regular operating surpluses. MIST operates cash pooling across the Group and utilises cash receipts as working capital in order to minimise borrowing costs.

MIST has leveraged part of the property assets as security for a revolving credit facility (RCF) which ensures appropriate access to further cash to meet MIST’s obligations as needed throughout the year, to which an overdraft provides additional headroom as and when required. This limits MIST’s exposure whilst protecting flexible access to appropriate levels of funding. Trustees consider that an RCF most closely meets the Group’s funding requirements, ensuring that when cash balances are strong, borrowing costs are minimal, preserving charitable funds for investment in the schools. MIST’s Trustees examine the group’s short-term cash flow projections on a termly basis and longer-term forecasts on an annual basis and are satisfied that they are adequate to meet ongoing obligations and support the group’s future plans. Renewal of the facilities is under way with the support of MIST’s bankers.

Plans for future periods

The independent sector is facing significant challenge following the Government’s imposition of VAT on school fees from 1 January 2025 compounding other cost challenges, including the loss of mandatory business rate relief from April 2025 and significant increases in National Insurance contributions from the same date. A number of MIST schools have already seen reductions in the pupil roll, and we anticipate further falls as families either leave the sector, or do not join in the same numbers as previously.

MIST Trustees have adopted a consolidation strategy for the next eighteen months (to September 2026) aimed at strengthening the Group’s position as it faces into these challenges. Trustees are pursuing three clear priorities:

  1. Ensuring the viability of the group through a focus on business and finance, enacted through strong and effective governance (including consideration of a more centralised operating model)

  2. Clarifying and enhancing the value of MIST for its constituent schools and communities

  3. Developing, strengthening and exploiting networks within and beyond MIST to support and strengthen the work of our schools

Principal risks and uncertainties

All the Trust Schools have their own risk assessment procedures, including an (at least) annual review of the key local risks by senior staff and Governors. Formal assurances are obtained from local

page 21

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

governing bodies in respect of the risks for which they have delegated responsibility; the risks to the Trust and to the Group as a whole are reviewed annually by the Audit Committee and by the trustees.

Trustees consider there to be seven key areas of strategic risk: Financial sustainability, governance, safeguarding and wellbeing, education and standards, people and culture, cyber, and property. A strategic risk register captures the detail of these at group level, and the risks and associated mitigations are kept under regular review both at school and at MIST to minimise our exposure as far as possible. It is clear that financial sustainability presents the most urgent challenge for a number of our schools and consequently for the wider group, with an associated focus on this at both a strategic and local level.

MIST sets clear expectations for the schools through published Key Performance Indicators (see pages 19 and 20) and manages financial risk through the regular budget and forecasting cycles, by which local Governors and MIST Trustees review income, expenditure and cash flow on a termly basis and implement adjustments where necessary to return within expected parameters, including the arrangement of and draw down against MIST’s borrowing facilities with HSBC in response to cash flow requirements.

MIST does not use any hedging instruments, and thus hedge accounting is not employed in these financial statements.

Credit risk primarily takes the form of our parents’ ongoing ability to pay the school fees. This is managed by schools locally through careful consideration in setting school fees at a level which balances expected cost increases with the challenge such increases might present for parents, by the use of best practice contractual terms describing the mutual obligations of the school and the parents, by pro-active debt management by school finance teams, and by providing mechanisms by which families who would not otherwise be able to afford fees have access to bursary funds. Debtors are closely monitored at school and Group level, and provisions are made where it is not expected that funds will be recovered on a timely basis. Trustees are satisfied that year-end fee debtor levels as a percentage of Gross Fee income are appropriate (being less than 1%). Trustees are aware that the addition of VAT to school fees from 1 January 2025 will heighten this risk, and are monitoring the situation closely.

Insurance is in place across the group to mitigate the risks of adverse events (including cyber-attack).

The Trustees consider that these and other risks are properly managed and, where possible, mitigated.

Going concern

The Trustees have considered the financial status of MIST and have concluded that there is a reasonable expectation that MIST remains a going concern.

Trustees are very aware that MIST faces uncertainty over the next 12 months. Costs remain high and there are sector-wide concerns about the affordability of independent school fees for middle-income families, particularly following the addition of VAT to school fees. We expect that pupil numbers may reduce. However, our schools continue to offer choice and quality for parents in their local and international markets, and each continues to play a key and valued role in their local community. Some schools within the portfolio are stronger financially than others, and work continues across all schools to address risk, manage costs and to secure their position, with support from the Head Office team. We continue to leverage our asset base to invest appropriately in the capital fabric of our estates.

page 22

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

Based on the consolidated budgets and cash flow forecasts for the year head, and forward forecasts from these, MIST has access to ongoing funding from HSBC across a combination of facilities secured against school properties. The Trustees are of the view that MIST’s financial commitments can be appropriately accommodated, and that MIST will continue to meet bank covenant requirements going forward.

Statement of Trustees’ Responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

page 23

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST YEAR ENDED 31 AUGUST 2024

REPORT OF THE TRUSTEES

The Trustees, in their capacity as directors, hereby approve the Report of the Trustees and the incorporated strategic report.

7 May 2025 ………………………………………..…………… ……………………………………… Chair of Finance Committee Date Mr J Jefferson

page 24

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF METHODIST INDEPENDENT SCHOOLS TRUST

Independent Auditor’s Report to the Members of Methodist Independent Schools Trust

Opinion

We have audited the financial statements of Methodist Independent Schools Trust (MIST) and its subsidiaries (the “group”) for the year ended 31 August 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Statement of Financial Position, Consolidated Statement of Cash Flows 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 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 trustee's 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 and 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information 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.

page 25

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF METHODIST INDEPENDENT SCHOOLS TRUST

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 charitable company and group 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 trustees

As explained more fully in the trustees’ responsibilities statement set out on page 23 onwards, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

page 26

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF METHODIST INDEPENDENT SCHOOLS TRUST

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 group and the parent charity 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 Charities Act 2011, 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 group’s and the parent charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group and the parent charity for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and safety legislation and Employment 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 - legacy income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on legacy income and the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and any other regulators where applicable, 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 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

page 27

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF METHODIST INDEPENDENT SCHOOLS TRUST

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 non-compliance 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.

Tina Allison

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

7 May 2025

page 28

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Net (expenditure) before investment
gains
NET MOVEMENT IN FUNDS
TOTAL FUNDS CARRIED FORWARD
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activity (provision of education):
School fees
4
Other educational income
5
Other trading activities
6
Investments
8
Other
9
Total income
EXPENDITURE ON:
Raising funds
10
Charitable activities
11
Total expenditure
11
Net gains on investments
16
(Loss) on disposal of discontinued
operation
28
NET (EXPENDITURE)/INCOME
Transfers between funds
21
RECONCILIATION OF FUNDS:
Total funds brought forward		 173
(3,047)
512
(3,289)
(5,824)
(28)
(5,852)
78,182
72,330
Unrestricted
funds
£'000
104,264
5,471
5,094
316
1,167
116,485
(3,206)
(116,326)
(119,532)		 498
(80)
81
-
1
28
29
2,668
2,697
Restricted
funds
£'000
-
-
-
13
-
511
(18)
(573)
(591)		 -
-
37
-
37
-
37
291
328
Endowment
funds
£'000
-
-
-
-
-
-
-
-
-		 671
104,264
5,471
5,094
329
1,167
116,996
(3,224)
(116,899)
(120,123)
(3,127)
630
(3,289)
(5,786)
-
(5,786)
81,141
75,355
Total
2024
£'000		 648
Total
2023
£'000
99,339
5,138
4,449
120
1,305
110,999
(3,126)
(107,906)
(111,032)
(33)
84
-
51
-
51
81,090
81,141

page 29

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

Company Number: 07649422

METHODIST INDEPENDENT SCHOOLS TRUST

CONSOLIDATED AND CHARITY STATEMENTS OF FINANCIAL POSITION AS AT 31 AUGUST 2024

Notes
TOTAL ASSETS LESS CURRENT LIABILITIES
TOTAL NET ASSETS
Restricted income funds
LIABILITIES:
Creditors: Amounts falling due within one year
18
NET CURRENT LIABILITIES
Creditors: Amounts falling due after more than one
year
19
THE FUNDS OF THE GROUP/CHARITY:
Endowment funds
Unrestricted funds
Unrestricted funds
Total unrestricted funds
TOTAL GROUP/CHARITY FUNDS
21
FIXED ASSETS:
Tangible assets
15
Intangible assets
Investments
16
CURRENT ASSETS:
Stocks
Debtors: Due within one year
17
Cash at bank and in hand		 89,056
(13,701)
75,355
328
2,697
72,330
72,330
75,355
(42,058)
(25,045)
Group
2024
£'000
108,265
40
5,796
114,101
209
3,100
13,704
17,013		 83,854
(2,713)
81,141
291
2,668
78,182
78,182
81,141
(33,990)
(28,106)
Group
2023
£'000
106,754
41
5,165
111,960
212
3,766
1,906
5,884		 88,581
(13,701)
74,880
328
2,629
71,923
71,923
74,880
(41,570)
(25,260)
Charity
2024
£'000
108,183
32
5,626
113,841
140
4,936
11,234
16,310		 Charity
2023
£'000
106,702
41
5,014
111,757
143
5,108
-
(33,508)
5,251
(28,257)
83,500
(2,713)
80,787
291
2,600
77,896
77,896
80,787

As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities of the parent Charity is not presented as part of these financial statements. The Charity's surplus for the year was £1,969,000 (2023: £1,068,000).

The financial statements were approved by the board of trustees and authorised for issue on 7 May 2025 and are signed on its behalf by:

……………………………………………………………………. Mr John Jefferson Chair of Finance Committee

page 30

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

CASH FLOW FROM OPERATING ACTIVITIES:
Net (expenditure)/income from the reporting period (as per statement of financial activities)
Adjustments for:
Depreciation and amortisation charges
Net (gains) on investment assets
Dividends and interest from investments
(Profit) on the sale of fixed assets
Loss on fixed assets on disposal
Interest payable
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES:
Interest payable
Repayments of borrowings
Cash (outflow)/inflow from borrowing
Finance lease payments
Fees in advance scheme:
New fees in advance money
Amounts repaid
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD
Cash and cash equivalents at the beginning of the reporting period
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends and interest from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant, equipment and intangibles
NET CASH USED IN INVESTING ACTIVITIES
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Bank overdrafts		 (5,786)
5,840
(630)
(329)
(126)
4,087
100
3
666
4,410
8,235
(100)
(25)
(2,000)
17
17,333
(201)
15,024
12,008
1,696
13,704
2024
£'000
329
161
(11,741)
(11,251)
13,704
-
13,704		 51
5,582
(84)
(120)
(21)
-
181
(4)
(7)
(1,177)
2023
£'000
4,401
120
4
(14,102)
(13,978)
(181)
(14)
2,000
(12)
1,421
(143)
3,071
(6,506)
8,202
1,696
1,906
(210)
1,696

page 31

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. Accounting policies

Company information

Methodist Independent Schools Trust (the charitable company number 07649422) is a private company limited by guarantee incorporated in England and Wales. The registered office is 66 Lincoln's Inn Fields, London WC2A 3LH. The company's principal activity is disclosed in the report of the trustees.

Accounting convention

The financial statements have been prepared in accordance with the accounting policies set out below, under the historical cost convention (except as modified for the annual fair value adjustment of fixed asset investments) and comply with the Companies Act 2006, the Memorandum and Articles of Association of the charitable company, and 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 charitable company meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared in Sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The principal accounting policies are set out below.

Going concern

The trustees consider that there are no material uncertainties about the charitable company's and group's ability to continue as a going concern. The trustees note that the group and charity net current liabilities of £25,045,000 and £25,260,000 respectively (2023: £28,106,000 and £28,257,000) reflect advance school fee payments and pupil fee deposits which occur in the normal course of business practice for independent schools. Advance fee payments were unusually high during the year in a context where there was concern about the impact of Government policy on future school fees.

As outlined in the Trustees’ Annual Report, whilst trustees are very aware of the challenging times ahead for independent schools, they are pleased that good work is being done across the Group to prepare for these. The trustees’ review of the Group’s financial position, the availability of funding, current forecasts and future plans gives them confidence that the Group remains a going concern for the foreseeable future.

Group accounts

These financial statements consolidate the results of the charitable company and its wholly owned and controlled subsidiaries on a line by line basis .

MIST is the sole shareholder of eight trading subsidiaries, with a separate trading subsidiary being used for the non-primary purpose trading conducted by eight of the nine Trust Schools. MIST's smallest prep school does not have a subsidiary company. MIST is also the sole member of the Methodist Schools Property Company. These entities are consolidated into the group results as this sole membership confers effective control on MIST.

Income

School fees and other educational income receivable are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances and other remissions allowed by each school. Other educational income consists of extras, optional subjects and ancillaries charged to pupils.

Scholarship and bursary awards are treated as a reduction in fees in the period for which they are given.

All other types of income, including investment income, are accounted for on an accruals basis and recognised in the statement of financial activities when earned by the charitable company and its group.

page 32

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Donations are accounted for as and when the charitable company and its group has entitlement, the amount involved can be reliably quantified and a transfer of economic benefit to the charitable company and its group is probable. Donations received for the general purposes of the group are credited to unrestricted funds. Donations subject to specific wishes of donors or for a particular purpose are credited to restricted income funds or Endowed funds where the capital is permanent.

Legacies are accounted for as and when the charitable company and its group has entitlement, the amount involved can be reliably quantified and a transfer of economic benefit to the charitable company and its group is probable. Entitlement is taken to be the earlier date of the charitable company and its group being notified of an impending distribution following settlement of the estate or the legacy being recieved.

Investment income from securities and property is accounted for in the period in which it is receivable.

Expenditure

Expenditure is recognised as soon as a liability is considered probable. Expenditure is accounted for on an accruals basis, inclusive of irrecoverable VAT. Costs of raising funds are those costs incurred in attracting voluntary income, together with those costs incurred in trading activities that raise funds. Charitable activities comprise expenditure associated with teaching and school activities and include both direct and support costs.

Governance costs are those incurred in the governance of the charitable company, its group and its assets and are mainly associated with constitutional and statutory requirements.

Lease rentals payable in respect of assets held under operating leases are charged to the statement of financial activities over the lease period.

Employee benefits - Pensions

Retirement benefits to employees of the charitable company and its group are provided by the Teachers' Pension Scheme (TPS) in respect of some teaching staff; The Pensions Trust Growth Plan (TPTGP) and the Legal & General Worksave Pension Plan (L&GWPP).

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the charitable company and its group in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes. Contributions are calculated on a pay-as-you-go basis and there is no obligation to fund a past deficit.

The TPTGP is a multi-employer plan which is a money purchase scheme with guaranteed benefits. The charitable company and its group contributes at various rates on an employee by employee basis. It is not possible for the charitable company to obtain sufficient information to enable it to account for the TPTGP as a defined benefit scheme.

The TPS and the TPTGP are therefore treated as defined contribution schemes for accounting purposes and the contributions are recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. A liability is also recognised for deficit contributions arising from an agreement with the TPTGP multi-employer plan that determines how the charitable company and its group will fund a deficit. Deficit contributions are discounted when they are not expected to be settled wholly within 12 months of the period end.

The L&GWPP is a group personal pension scheme. The default investment fund is the Legal & General Multi-Asset Fund 3, which aims to provide long-term investment and growth through exposure to a diversified range of asset classes.

Employee benefits - Other

Short term employment benefits including holiday pay are recognised as an expense in the period in which the services are received from the employee involved. Termination benefits are accounted for on an accruals basis as and when employment ceases.

page 33

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost of assets, other than land, less their residual values over their useful lives using the following annual percentages as the basis:

Buildings 2% on cost
Building improvements 4% on cost
Sports pitches 5% on cost
Fixtures and equipment 10% to 33.3% on cost
Vehicles 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of financial activities.

Assets in the course of construction and land are not depreciated.

Intangible fixed assets

Expenditure on the purchases and developing of computer software is capitalised where all of the criteria in FRS 102 are met. Intangible assets are stated at historical cost and amortised over the shorter of the initial contract length or their useful lives. The current annual percentage is 33% on cost.

Investments

The investments of the charitable company and its group are included in the statement of financial position at fair value (their market value determined on the basis of quoted bid price). The gains or losses arising upon their annual fair value adjustment are included in the statement of financial activities.

Stocks

Stocks are included in the statement of financial position at the lower of cost and net realisable value.

Finance leases and hire purchase contracts

Assets acquired under finance leases or hire purchase contracts are capitalised and the interest element is written off to the statement of financial activities on a straight line basis over the period of the lease.

Fund accounting

Restricted funds are funds subject to specific conditions imposed by donors. The purpose and use of the restricted funds are set out in the notes to the financial statements. Amounts unspent at the year end are carried forward in the balance sheet. A single figure is reported for the unrestricted funds of the Charity and the Group. Trustees believe this provides reliable and relevant information about the funds position and emphasises the flexibilty available to Trustees to direct funds as required.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, bank overdrafts and funds drawn against the revolving credit facility (RCF).

Deposits

Pupils joining the schools are required to pay a deposit which is then classified as a basic financial instrument. Deposits are returned when a pupil leaves the school in line with the terms and conditions set out in the parent contract. All deposits have been recorded as liabilities falling due within one year.

page 34

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Financial instruments

The charitable company applies the provisions of Section 11 ‘Basic Financial Instruments' and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the charitable company and its group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest and less any impairment.

Classification of financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities

Basic financial liabilities, including trade, other payables, loans and bank overdrafts, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

2. Critical accounting estimates and areas of judgement

In the application of the charitable company’s and the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

In addition to the trustees’ assessment of the going concern status of the charitable company and its group, the following other specific judgements, estimates and assumptions were critical to the preparation of these financial statements.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. Useful economic lives and residual values are reviewed annually and reassessed where necessary to better reflect the actual usage of the assets involved.

Provisions relating to fee debtors

The trustees consider whether fee debtors are recoverable. Where there is an indication that recoverability is unlikely, the amounts involved are recognised as a provision for bad debts. This assessment requires an estimation of future likely cash flows in order to calculate the appropriate amount of any provision.

Pension contributions

The charitable company and its group has an obligation to make employer contributions to the pension schemes of which its employees are members. The cost of providing pension benefits and the present value of the obligations of the charitable company as an employer depends upon a number of factors, including life expectancy, salary increases, asset valuations and discount rates.

page 35

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

3. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
2023		 89
Unrestricted
Funds
£'000
173
173		 559
Restricted
Funds
£'000
498
498		 -
Endowment
Funds
£'000
-
-		 Total
2024
£'000
671
671		 Total
2023
£'000
648
648
648

4. SCHOOL FEES

Gross school fees chargeable
Less:
Scholarships awarded to pupils
Bursaries awarded to pupils
Staff, sibling and other allowances		 Total
2024
£'000
118,886
(3,119)
(5,150)
(6,353)
104,264		 Total
2023
£'000
113,305
(3,060)
(4,980)
(5,926)
99,339

School fees income amounted to £104,264,000 (2023: £99,339,000) of which £533,000 (2023: £192,000) was met from restricted funds donated towards bursaries and scholarships.

5. OTHER EDUCATIONAL INCOME

Optional subjects and pupils' extras
Other ancillary income		 Total
2024
£'000
3,007
2,464
5,471		 Total
2023
£'000
2,886
2,252
5,138

2024 other educational income amounted to £5,471,000 (2023: £5,138,000) all of which was unrestricted.

6. OTHER TRADING ACTIVITIES

Lettings income
Income from subsidiary trading activities (note 7)		 Total
2024
£'000
536
4,558
5,094		 Total
2023
£'000
364
4,085
4,449

Other trading activities income amounted to £5,094,000 (2023: £4,449,000) all of which was unrestricted.

page 36

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

7. INCOME FROM TRADING ACTIVITIES

Trading Activities

The charitable company and its group controls all of the issued share capital of a series of trading subsidiary companies, each of which is incorporated in England and Wales - please refer to note 16 for a list of these companies. The subsidiaries are engaged in commercial trading activities relating to and in support of their related school, and they donate all of their taxable profits to their parent entity under Gift Aid each year. The results and financial position of these trading subsidiaries is summarised in aggregate below using information extracted from their audited financial statements.

Turnover
Operating costs
(Loss) for the year
Total assets
Total liabilities
Total funds		 2024
£'000
4,558
(2,968)
1,590
2,960
(467)
2,493		 2023
£'000
4,085
(2,908)
1,177
2,380
(2,422)
(42)

Fundraising Activities

The charitable company is the sole member of a foundation (Woodhouse Grove School Foundation) which is engaged in fundraising activities relating to and in support of the school. It donates all profits to the parent entity each year. The results and financial position of this fundraising subsidiary in support of the school is summarised in aggregate below using information extracted from its audited financial statements. Please refer to note 16 for further details.

Income
Operating costs
Profit for the year
Total assets
Total liabilities
Total funds		 2024
£'000
61
(9)
52
274
16
290		 2023
£'000
5
(9)
(4)
253
(11)
242

8. INVESTMENTS

2023
Investment income
Bank and other interest		 101
Unrestricted
Funds
£'000
82
234
316		 19
Restricted
Funds
£'000
13
-
13		 -
Endowment
Funds
£'000
-
-
-		 Total
2024
£'000
95
234
329		 Total
2023
£'000
110
10
120
120

page 37

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

9. OTHER INCOME

Other income:
Other items
2023
10.
RAISING FUNDS
2023
11.
ANALYSIS OF EXPENDITURE
2023
Fundraising costs
Cost of subsidiary trading activities
Raising funds:
Fundraising costs
Charitable activity (provision of education):
Teaching costs
Welfare costs
Premises costs
Support costs
Governance costs
Charitable publicity costs
Finance costs
Other		 3,112
Staff costs
£'000
74,885
69,032
Unrestricted
Funds
£'000
Unrestricted
Funds
£'000
238
2,968
3,206
1,167
1,167
1,305
1,880
53,381
4,484
6,810
6,902
-
1,428
-
-		 14
Depreciation
£'000
5,840
5,582
Restricted
Funds
£'000
Restricted
Funds
£'000
18
-
18
-
-
-
8
84
-
3,329
2,419
-
-
-
-		 -
Other
£'000
1,336
4,996
7,944
12,432
7,289
1,411
1,514
1,552
924
39,398
36,418
Endowment
Funds
£'000
Endowment
Funds
£'000
-
-
-
-
-
-		 3,224
58,461
12,428
22,571
16,610
1,411
2,942
1,552
924
120,123
Total
2024
£'000
Total
2024
£'000
256
2,968
3,224
1,167
1,167
Total
2024
£'000		 Total
2023
£'000
1,305
1,305
1,305
Total
2023
£'000
218
2,908
3,126
3,126
3,126
54,400
12,182
21,130
15,877
962
2,610
739
6
111,032
Total
2023
£'000
111,032

Expenditure on raising funds was £3,224,000 (2023: £3,126,000), of which £3,206,000 (2023: £3,112,000) was unrestricted and £18,000 (2023: £14,000) was restricted.

Charitable activities expenditure amounted to £116,899,000 (2023: £107,906,000) of which £573,000 (2023: £310,000) was restricted.

Support costs include administration and information technology expenditure across the schools, as well as the costs of planning and facilitating pupil transport.

page 38

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

12. GOVERNANCE COSTS

GOVERNANCE COSTS
Auditor's remuneration
Other professional fees
Governors' expenses
Other costs		 2024
£'000
132
835
69
375
1,411		 2023
£'000
106
150
63
643
962

In accordance with normal commercial practice, professional indemnity insurance is taken out to cover losses arising from neglect or default by any charity trustee, employee or officer.

13. NET INCOME/(EXPENDITURE)

NET INCOME/(EXPENDITURE)
2024 2023
£'000 £'000
Net income/(expenditure) for the year is stated after charging/(crediting):
Amounts payable under operating leases 858 764
Depreciation on:
Tangible fixed assets 5,840 5,521
Intangible fixed assets 30 48
(Profit) on disposal of tangible fixed assets (126) (21)
Interest payable on loans 100 181
Bad debts written off 288 227
Auditor's remuneration:
Audit services - statutory audit of parent and consolidated accounts 114 85
Other services:
Audit services - statutory audit of subsidiaries 18 21
Taxation compliance services 26 20

page 39

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

14. STAFF COSTS

STAFF COSTS
2024 2023
Group £'000 £'000
The aggregate staff costs during the year comprised:
Wages and salaries 59,975 55,938
Social security costs 5,505 5,152
Defined benefit pension costs 7,075 6,767
Defined contribution pension costs 1,961 1,056
Termination/redundancy payments 369 119
74,885 69,032

The defined benefit pension costs above include contributions to Teachers' Pensions Scheme and The Pensions Trust Growth Plan, which are accounted for as defined contribution schemes as outlined in note 25 .

Of the termination payments identified above, zero (2023: £38,000) was included within creditors at the balance sheet date.

The average number of employees during the year comprised:
Teaching staff
Non-teaching staff
The average number of employees during the year on the full time equivalent basis comprised:
Teaching staff
Non-teaching staff
The number of employees whose emoluments exceeded £60,000 during the year were as follows:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
£140,001 - £150,000
£150,001 - £160,000
£160,001 - £170,000		 2024
No.
861
1,180
2,041
767
807
1,574
37
17
9
6
1
2
1
4
-
5
-
2024
No.
2024
No.		 2023
No.
876
1,177
2,053
747
807
2023
No.
1,554
27
16
4
5
1
4
3
-
3
-
.
2023
No.

In respect of employees whose emoluments exceeded £60,000 during the year, total pension contributions payable during the year amounted to £1,160,000 (2023: £862,000).

The key management personnel of the charitable company and its group comprise the trustees, the trust executive, the school governors and the senior management teams of the schools.

The trustees received no remuneration for their services in the current year, and 13 individuals (2023: 9), who were trustees were reimbursed £20,000 for any travelling and subsistence costs incurred (2023: £18,000). During the year it was agreed that a payment would be made to the circuit (parish) employing the Chair of Trustees in order to facilitate his part-time release to support the work of MIST. Payments totalling £12,000 (2023: £5,115) were made to the circuit during the year, with the express permission of the Charity Commission and the approval of the Trustees.

page 40

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

The aggregate remuneration of the other key management personnel, including employer's national insurance contributions, was £6,952,000 (2023: £7,384,000).

2024 2023
Charity £'000 £'000
The aggregate staff costs during the year comprised:
Wages and salaries 58,268 54,407
Social security costs 5,505 5,152
Defined benefit pension costs 7,075 6,768
Defined contribution pension costs 1,961 1,056
Termination/redundancy payments 369 119
73,178 67,502

Of the termination payments identified above, zero (2023: £38,000) was included within creditors at the balance sheet date.

The average number of employees during the year comprised:
Teaching staff
Other staff
The number of employees whose emoluments exceeded £60,000 during the year were as follows:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
£140,001 - £150,000
£150,001 - £160,000
£160,001 - £170,000
£170,001 - £180,000		 861
1,154
2,015
37
17
9
6
1
2
1
4
-
5
-
1
2024
No.
2024
No.		 876
1,151
2023
No.
2,027
27
16
4
5
1
4
3
-
3
-
1
-
2023
No.

In respect of employees whose emoluments exceeded £60,000 during the year, total pension contributions payable during the year amounted to £1,160,000 (2023: £862,000).

page 41

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

15. TANGIBLE ASSETS

Group
Cost:
As at 1 September 2023
Additions
Disposals
Transferred
As at 31 August 2024
Depreciation:
As at 1 September 2023
Charged for the year
Disposals
As at 31 August 2024
As at 31 August 2023
Net book value:
As at 31 August 2024		 94,391
90,330
Land and
buildings
£'000
142,198
3,021
(7,780)
8,492
145,931
51,868
3,280
(3,608)
51,540		 94,391
90,330
Land and
buildings
£'000
142,198
3,021
(7,780)
8,492
145,931
51,868
3,280
(3,608)
51,540		 2,980
6,486
Assets under
construction
£'000
6,486
4,986
-
(8,492)
2,980
-
-
-
-		 29,675
2,363
(4,798)
27,240
10,249
9,326
Fixtures and
equipment
£'000
39,001
3,404
(4,916)
-
37,489		 Vehicles
£'000
645
612
1,869
309
(419)
-
1,759
1,257
197
(340)
1,114		 Total
£'000
189,554
11,720
(13,115)
-
188,159
108,265
82,800
5,840
(8,746)
79,894
106,754

The charitable company's land and buildings comprise the freehold premises of the trust schools, seven of which are vested under the 1903 Trust Deed in the Methodist Independent Education Trustee on behalf of the Methodist Independent Schools Trust. The other two are held directly by MIST.

Some of the properties held in the group balance sheet of MIST have been pledged as security to the group's bankers in support of the overdraft and revolving credit facilities granted to MIST, which in turn enables MIST to provide loan funding to the Trust Schools. The net book value of these properties which is included in the table above amounts to £33,855,00 (2023: £33,131,000).

Some of the group's tangible fixed assets have been funded by finance leases and hire purchase contracts. During the year, depreciation of £35,000 (2023: £31,000) was charged in respect of those assets, and at the balance sheet date, the net book value of those assets amounted to £58,000 (2023: £39,000).

page 42

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Charity
Cost:
As at 1 September 2023
Additions
Disposals
Transferred
As at 31 August 2024
Depreciation:
As at 1 September 2023
Charged for the year
Disposals
As at 31 August 2024
As at 31 August 2023
Net book value:
As at 31 August 2024		 94,391
90,330
Land and
buildings
£'000
142,198
3,021
(7,780)
8,492
145,931
51,868
3,280
(3,608)
51,540		 94,391
90,330
Land and
buildings
£'000
142,198
3,021
(7,780)
8,492
145,931
51,868
3,280
(3,608)
51,540		 2,980
6,486
Assets under
construction
£'000
6,486
4,986
-
(8,492)
2,980
-
-
-
-		 29,536
2,366
(4,798)
27,104
10,167
9,274
Fixtures and
equipment
£'000
38,810
3,377
(4,916)
-
37,271		 Vehicles
£'000
1,869
309
(419)
-
1,759
1,257
197
(340)
1,114
645
612		 Total
£'000
189,363
11,693
(13,115)
-
187,941
82,661
5,843
(8,746)
79,758
108,183
106,702

Some of the properties held in the group balance sheet of MIST have been pledged as security to the group's bankers in support of the overdraft facility granted to MIST, which in turn enables MIST to provide loan funding to the Trust Schools. The net book value of these properties which is included in the table above amounts to £33,855,000 (2023: £33,131,000).

Some of the charity's tangible fixed assets have been funded by finance leases and hire purchase contracts. During the year, depreciation of £35,000 (2023: £31,000) was charged in respect of those assets, and at the balance sheet date, the net book value of those assets amounted to £58,000 (2023: £39,000).

Historical cost
Historical cost
Group- Listed investments at market value
Balance brought forward
Additions at cost
Disposals
Net gains / (losses) in the year
Balance carried forward
Charity- Listed investments at market value
Balance brought forward
Additions at cost
Disposals
Net gains / (losses) in the year
Balance carried forward
FIXED ASSET INVESTMENTS		 2,448
2,487
5,165
-
1
630
5,796
5,014
-
1
611
5,626
2024
£'000
2024
£'000		 5,081
-
-
84
2023
£'000
5,165
2,449
4,933
-
-
81
2023
£'000
5,014
2,487

16. FIXED ASSET INVESTMENTS

page 43

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Other investments

MIST is the sole member of the following subsidiary charities:

Total Total Total Total Total Surplus
assets liabilities funds income expenditure
Foundations £'000 £'000 £'000 £'000 £'000 £'000
Woodhouse Grove 274 16 290 61 (9) 52
Foundation Trust

The Charity owns 100% of the issued ordinary share capital in the following companies:

Total Total Total Total Total Surplus/
assets liabilities funds income expenditure (deficit)
Trading subsidiaries £'000 £'000 £'000 £'000 £'000 £'000
Culford School (Trading Trust) 448 (448) - 1138 (1,015) 123
Limited
Farringtons School 365 (365) - 207 (59) 148
Enterprises Limited
Kent College (Canterbury) 733 (733) - 945 (569) 376
Enterprises Limited
Kent College (Pembury) 147 (147) - 143 (27) 116
Enterprises Limited
Moorlands School Enterprises 123 (125) (2) 112 (3) 109
Limited
Queen's College Taunton 126 (126) - 655 (591) 64
Enterprises Limited
Truro School Enterprises 409 (409) - 740 (428) 312
Limited
Woodhouse Grove 609 (606) 3 612 (268) 344
Enterprises Limited
Methodist Schools Property - - - - - -
Company

Details regarding the company number, charity number and registered office are included pages 3 to 5 of this report.

page 44

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

17. DEBTORS

DEBTORS
Fee debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2024
£'000
630
-
717
1,753
3,100		 Group
2023
£'000
1,139
3
727
1,897
3,766		 Charity
2024
£'000
630
2,469
84
1,753
4,936		 Charity
2023
£'000
1,139
1,948
124
1,897
5,108

All of the group debtors represent amounts falling due within one year.

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank overdraft
Funds drawn on revolving credit facility (RCF)
Other loans
Finance lease obligations
Deposits (note 20)
Prepaid fees (note 20)
Composition fees (note 20)
Trade creditors
Taxation and social security costs
Other creditors
Pension deficit repayment plan
Accruals		 Group
2024
£'000
-
-
19
14
6,639
19,251
6,224
3,536
917
3,120
44
2,294
42,058		 Group
2023
£'000
210
2,000
24
28
6,934
14,139
1,737
3,062
1,278
2,151
45
2,382
33,990		 Charity
2024
£'000
-
-
19
14
6,639
19,251
6,224
3,417
917
2,910
44
2,135
41,570		 Charity
2023
£'000
210
2,000
19
28
6,934
14,139
1,737
2,900
1,278
2,020
45
2,198
33,508

The bank overdraft is secured by way of a charge over certain of the group's property assets. It is subject to annual review and is arranged at a floating interest rate referencing the Base Rate.

The Group held a Revolving Credit Facility with the Group’s bankers during the year. It is a committed three year facility with the option to extend for a further one or two years after May 2022 (both of which has been exercised at the time of signing these accounts). It is arranged at a floating interest rate referencing SONIA. Due to the cyclical nature of the group's cashflow this facility is rolled over on a monthly basis as required. The undrawn element of this facility was £15,000,000 at 31 August 2024 (2023: £13,000,000).

The finance lease obligations are secured upon the assets to which they relate.

page 45

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024
Group
Other loans
Finance lease obligations
Prepaid fees (note 20)
Composition fees (note 20)
Pension deficit repayment plan
2023
Group
Other loans
Finance lease obligations
Prepaid fees (note 20)
Composition fees (note 20)
Pension deficit repayment plan
2024
Charity
Other loans
Finance lease obligations
Prepaid fees (note 20)
Composition fees (note 20)
Pension deficit repayment plan
2023
Charity
Other loans
Finance lease obligations
Prepaid fees (note 20)
Composition fees (note 20)
Pension deficit repayment plan		 Due within
1 to 2 years
£'000
19
10
623
5,221
12
5,885
Due within
1 to 2 years
£'000
19
4
-
1,096
41
1,160
Due within
1 to 2 years
£'000
19
10
623
5,221
12
5,885
Due within
1 to 2 years
£'000
19
4
-
1,096
41
1,160		 Due within
2 to 5 years
£'000
36
25
28
7,504
-
7,593
Due within
2 to 5 years
£'000
54
-
-
1,300
5
1,359
Due within
2 to 5 years
£'000
36
25
28
7,504
-
7,593
Due within
2 to 5 years
£'000
54
-
-
1,300
5
1,359		 Due after
5 years
£'000
-
-
-
223
-
223
Due after
5 years
£'000
2
-
-
192
-
194
Due after
5 years
£'000
-
-
-
223
-
223
Due after
5 years
£'000
2
-
-
192
-
194		 2024
Total
£'000
55
35
651
12,948
12
13,701
2023
Total
£'000
75
4
-
2,588
46
2,713
2024
Total
£'000
55
35
651
12,948
12
13,701
2023
Total
£'000
75
4
-
2,588
46
2,713

page 46

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

20. DEFERRED INCOME

Prepaid fees and deposits

Parents pay for fees in advance and provide deposits to secure places for pupils. Movements during the year were as follows:

2024
Balance brought forward at 1 September 2023
Amounts received during the year
Amounts recognised as income during the year
Amounts repaid to parents during the year
Balance carried forward at 31 August 2024		 Group
£'000
21,073
26,407
(18,874)
(2,065)
26,541		 Charity
£'000
21,073
26,407
(18,874)
(2,065)
26,541
2023
Balance brought forward at 1 September 2022
Amounts received during the year
Amounts recognised as income during the year
Amounts repaid to parents during the year
Balance carried forward at 31 August 2023		 Group
£'000
20,997
19,905
(17,225)
(2,604)
21,073		 Charity
£'000
20,998
19,904
(17,225)
(2,604)
21,073

Composition fees

Parents may enter into a contract to pay to the school for tuition fees in advance. The money may be returned subject to specific conditions. Movements during the year were as follows:

2024
Balance brought forward at 1 September 2023
Amounts received during the year
Interest earned on balances during the year
Amounts recognised as income during the year
Amounts repaid to parents during the year
Balance carried forward at 31 August 2024		 Group
£'000
4,325
17,333
98
(2,383)
(201)
19,172		 Charity
£'000
4,325
17,333
98
(2,383)
(201)
19,172
2023
Balance brought forward at 1 September 2022
Amounts received during the year
Interest earned on balances during the year
Amounts recognised as income during the year
Amounts repaid to parents during the year
Balance carried forward at 31 August 2023		 Group
£'000
4,930
1,421
58
(1,941)
(143)
4,325		 Charity
£'000
4,930
1,421
58
(1,941)
(143)
4,325

page 47

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

21. THE FUNDS OF THE GROUP AND THE CHARITY

2024
Group
Endowment funds:
Scholarships and bursaries funds
Restricted income funds:
Scholarships and bursaries funds
2,085
Appeals funds
268
Other restricted funds
315
2,668
78,182
Total funds of the group
81,141
Unrestricted funds:
Unrestricted funds
Total funds of the charity
Balance at
1 September
2023
£'000
Charity
Endowment
Scholarships and bursaries funds
291
291
77,896
77,896
80,787
Unrestricted funds:
Unrestricted funds
Balance at
1 September
2023
£'000
291
291
Restricted income funds:
Scholarships and bursaries funds
Appeals funds
Other restricted funds
2,017
268
315
2,600
T_Transfer between funds_
U		 435
(533)
-
-
76
(58)
511
(591)
116,485
(122,821)
116,996
(123,412)
Income
£'000
Expenditure
£'000
-
-
-
-
113,430
(119,868)
113,430
(119,868)
113,941
(120,459)
Income
£'000
Expenditure
£'000
-
-
-
-
435
(533)
-
-
76
(58)
511
(591)
Unrealised gain/(loss)		 298TU
(182)T
(7) TU
109
630
Other
£'000
37U
37
465T
465
611
484TU
Other
£'000
37U
37
298TU
(182)T
(7) TU
109		 2,285
86

326
2,697
Balance at
31 August
2024
£'000
328
328

72,330
75,355
328
Balance at
31 August
2024
£'000
328

2,217
86

326
2,629
71,923
71,923
74,880

Movements in funds arising from investment gains/(losses) and transfers between funds are all included in the column headed 'Other'.

page 48

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

2023
Unrestricted funds:
Unrestricted funds
Total funds of the group
Unrestricted funds:
Unrestricted funds
Total funds of the charity
Group
Endowment funds:
Scholarships and bursaries funds
285
285
Restricted income funds:
Scholarships and bursaries funds
Appeals funds
Other restricted funds
1,474
288
675
2,437
Charity
Endowment
Scholarships and bursaries funds
285
285
Restricted income funds:
Scholarships and bursaries funds
Appeals funds
Other restricted funds
1,406
288
675
2,369
Balance at
1 September
2022
£'000
78,368
78,368
81,090
78,197
78,197
80,851
Balance at
1 September
2022
£'000
T_Transfer between funds_
U		 -
-
-
-
398
(192)
127
(98)
53
(21)
578
(311)
-
-
-
-
398
(192)
127
(98)
53
(21)
578
(311)
Income
£'000
110,421
(110,721)
110,421
(110,721)
110,999
(111,032)
107,387
(107,796)
107,387
(107,796)
107,965
(108,107)
Expenditure
£'000
Income
£'000
Expenditure
£'000
Unrealised gain/(loss)		 6U
6
405
T U
(49)T
(392) T
(36)
6U
6
405
T U
(49)T
(392) T
(36)
114TU
114
84
108TU
108
78
Other
£'000
Other
£'000		 291
Balance at
31 August
2023
£'000
291

2,085
268
315
2,668

78,182
78,182
81,141
291
Balance at
31 August
2023
£'000
291

2,017
268
315
2,600

77,896
77,896
80,787

Movements in funds arising from investment gains/(losses) and transfers between funds are all included in the column headed 'Other'.

page 49

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Restricted funds include amounts given to provide scholarships and bursaries to pupils at the relevant schools. In addition, subsidiary and linked charitable trusts established specifically for the purposes of providing scholarships and bursaries are also included within these funds of the group. Linked charities recorded income of £48,000 (2023: £27,000) and expenditure of £31,000 (2023: £16,000) during the year, and their net assets at 31 August 2024 totalled £607,000 (2023: £609,000).

Restricted funds also include amounts given to schools following specific appeals and are generally provided for building or other similar school development projects.

The designated property fund separately identifies previous capital expenditure on the group's property assets, except to the extent that they have been used to facilitate borrowings.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2024
Group
Endowment funds
Restricted funds
Unrestricted funds
2023
Group
Endowment funds
Restricted funds
Unrestricted funds
Charity
Endowment funds
Restricted funds
Unrestricted funds
Charity
Endowment funds
Restricted funds
Unrestricted funds		 Tangible
& intangible
fixed assets
£'000
-
-
108,305
108,305
Tangible
& intangible
fixed assets
£'000
-
-
106,795
106,795
Tangible
& intangible
fixed assets
£'000
-
-
108,215
108,215
Tangible
& intangible
fixed assets
£'000
-
-
106,743
106,743		 Investments
£'000
327
-
5,469
5,796
Investments
£'000
291
2,600
2,274
5,165
Investments
£'000
328
-
5,298
5,626
Investments
£'000
291
2,600
2,123
5,014		 Net current
assets/
(liabilities)
£'000
-
2,697
(27,742)
(25,045)
Net current
assets/
(liabilities)
£'000
-
68
(28,174)
(28,106)
Net current
assets/
(liabilities)
£'000
-
2,629
(27,889)
(25,260)
Net current
assets/
(liabilities)
£'000
-
-
(28,257)
(28,257)		 Long term
liabilities
£'000
-
-
(13,701)
(13,701)
Long term
liabilities
£'000
-
-
(2,713)
(2,713)
Long term
liabilities
£'000
-
-
(13,701)
(13,701)
Long term
liabilities
£'000
-
-
(2,713)
(2,713)		 Total
£'000
327
2,697
72,331
75,355
Total
£'000
328
2,629
71,923
74,880
Total
£'000
291
2,668
78,182
81,141
Total
£'000
291
2,600
77,896
80,787

page 50

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

23. OPERATING LEASE COMMITMENTS

Group - Lessee

The group has entered into operating leases in respect of certain items of school equipment. At the balance sheet date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between one and two years
Between two and five years
After five years
Charity- Lessee
Within one year
Between one and two years
Between two and five years
After five years		 2024
£'000
684
482
454
2
1,622
2024
£'000
684
482
454
2
1,622		 2023
£'000
714
432
451
2
1,599
2023
£'000
714
432
451
2
1,599

24. CAPITAL COMMITMENTS

At the balance sheet date, the group had capital commitments outstanding in respect of capital projects, as follows:

Group
Contracted for but not provided in these financial statements
Authorised but not contracted for
Charity
Contracted for but not provided in these financial statements
Authorised but not contracted for		 2024
£'000
8,552
209
2023
£'000
4,120
802
2024
£'000
8,552
209
2023
£'000
4,120
802

page 51

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

25. PENSIONS

Retirement benefits to employees of the charitable company and its group are provided by the Teachers' Pension Scheme (TPS) in respect of some teaching staff; the Methodist Ministers Pensions Scheme for 4 school chaplains who meet the eligibility requirements; the Pensions Trust Growth Plan (TPTGP) and the Legal & General Worksave Pension Plan (L&GWPP) in respect of all other staff.

Some of the schools participate in the Teachers’ Pension Scheme (“the TPS”) for teaching staff. The pension charge for the year includes contributions payable to the TPS of £5,997,000 (2023: £5,196,000) and at the year-end £681,000 (2023: £634,000) 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 set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at March 2020 and the Valuation Report, which was published in October 2023. The latest valuation showed total scheme liabilities of £262,000 million and notional assets of £222,200 million, giving a notional past service deficit of £39,800 million.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the ‘greater value’ benefits for groups of relevant members

The contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the School has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme.

The Methodist Ministers Pensions Scheme (MMPS) is a defined benefit scheme operated by the Methodist Church.

The TPTGP is a multi-employer plan which is a money purchase scheme with guaranteed benefits. The charitable company and its group contributes at various rates on an employee by employee basis. It is not possible for the charitable company and its group to obtain sufficient information to enable it to account for the TPTGP as a defined benefit scheme.

The TPTGP is classified as a "last man standing arrangement". Therefore, the charitable company and its group is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. If the charitable company and its group were to withdraw from the scheme it would have a liability, which at 30 September 2023 would have been £744,000 (30 September 2022: £1,353,000). There is however no plan to leave the scheme so this contingent liability has not been provided for in the financial statements.

A full actuarial valuation for the TPTGP was carried out at 30 September 2020. This valuation showed total scheme assets of £800,300,000, total scheme liabilities of £831,900,000, and therefore, a deficit of £31,600,000. To eliminate this funding shortfall, all participating employers have been asked to pay additional contributions.

page 52

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

The charitable company and its group are committed to deficit repayments in relation to TPTGP of £56,000 over a period of two years (2023: £92,000 over two years). Provision has been made for deficit repayments as follows:

Group Group Charity Charity
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Provision at the start of the year 92 156 92 156
Unwinding of the discount factor 3 5 3 5
Deficit contribution paid (96) (67) (96) (67)
Impact of changes in assumptions - - - -
Amendments to contribution schedule 58 (2) 58 (2)
Provision at the end of the year 57 92 57 92

Contributions to pension schemes were made for all of the charitable company's and the group's employees (who have not opted out) at the standard rates applicable to the schemes involved.

Pensions costs recognised during the year were as follows:

Defined benefit schemes:
The Teachers' Pension Scheme
The Pensions Trust Growth Plan
Methodist Ministers' Pension Scheme
Local Government Pension Schemes
Defined contribution schemes
At the balance sheet date, the following amounts were included in creditors:
Defined benefit schemes:
The Teachers' Pension Scheme
The Pensions Trust Growth Plan
Defined contribution schemes		 2024
£'000
5,988
1,061
26
-
1,961
9,036
2024
£'000
681
120
266
1,067		 2023
£'000
5,196
906
18
649
1,056
7,825
2023
£'000
472
69
222
763

page 53

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

26. Related party transactions

During the year, the following transactions took place between MIST and its trading subsidiaries, resulting in the following unsecured balances owing to the Trust schools:

Culford School Trading Trust
Limited
Farringtons School Enterprises
Limited
Kent College Canterbury
Enterprises Limited
Kent College Pembury
Enterprises Limited
Moorlands School Enterprises
Limited
Queen’s College Taunton
Enterprises Limited
Shebbear College Enterprises
Limited
Truro School Enterprises
Limited
Woodhouse Grove Enterprises
Limited		 Gift aid distribution to
MIST
2024
2023
£'000
£'000
123
235
148
99
351
-
116
62
108
93
63
102
-
-
312
194
344
273
1,565
1,058		 Expenses cross charged from
MIST
2024
2023
£'000
£'000
-
355
57
12
481
-
12
-
2
-
-
78
-
-
-
-
-
-
552
445		 Owed to MIST
2024
£'000
591
99
326
73
119
173
42
232
310
1,965		 a t 31 August
2023
£'000
591
99
326
73
100
173
42
232
310
1,946

As permitted by the charity's Articles of Association:-

These arrangements were approved by the trustees on the basis of providing value to the charity.

page 54

Docusign Envelope ID: 1283A877-153A-4BFE-ADF1-704F843C1F83

METHODIST INDEPENDENT SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

27. Analysis of changes in net debt - Group

Balance at
1 September
2023
£'000
Cash flows
£'000
Cash at bank and in hand
Bank overdraft
Composition fees
Revolving Credit Facility
Other loans
Obligations under finance leases
1,906
(210)
(4,325)
(2,000)
(99)
(32)
(4,760)
11,798
210
(17,132)
2,000
25
(17)
(3,116)		 -
-
2,285
-
-
2,285
Other non-
cash
changes
£'000
Balance at
31 August
2024
£'000
13,704
-
(19,172)
-
(74)
(49)
(5,591)

28. Note on disposal

During the year Trustees concluded that the charity was not well placed to support ongoing operations at one of the schools in the group. Accordingly as at 30th April 2024 the business and assets of the school transferred to a specialist provider for a nominal consideration. [At the time of the disposal, the fixed and tangible assets associated with the school were valued at £4,334,000 on MIST’s balance sheet (after accumulated depreciation of £4,922,000)] After adjustment to reflect the allocation of operating assets and liabilities between MIST and the buyer, the loss on disposal for MIST was £3,289,000 as shown on the Statement of Financial Activities.

page 55