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← Hay Castle Trust

2025-04-30-accounts

HAY CASTLE TRUST

Contents of the Financial Statements FOR THE YEAR ENDED 30 APRIL 2025

Report ofthe Trustees ofthe Trustees ofthe Trustees ofthe Trustees ofthe Trustees Page
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5
Report ofthe Independent Auditors
6
to
7
Statement of Financial Activities
8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Cash Flow Statement
11
NotestotheFinancial Statements
12
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27

HAY CASTLE TRUST

Report of the Trustees FOR THE YEAR ENDED 30 APRIL 2025

The trustees, who are also directors for the purposes of the Companies Act 2006, present their report with the financial statements of the Trust for the year ended 30 April 2025. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Trust's primary objective is to preserve the heritage and assure the future of Hay Castle in Hay-on-Wye. As befits a building which has enjoyed more than 800 years of continuous occupancy, the Trust aims to promote community and visitor involvement in an active, living amenity which is a focal feature of the town and surrounding area.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning activities for the year.

Page 1

HAY CASTLE TRUST

Report of the Trustees FOR THE YEAR ENDED 30 APRIL 2025

ACHIEVEMENT AND PERFORMANCE

This was the third year of operation, following the Castle opening to the public on 27 May 2022.

Direct visitor income arises from admission fees, donations, and Castle tours. Income also arises from events held within the Castle's grounds, as well as from memberships, the shop, the outsourced café and rental income. Some _ of these activities are carried out through a subsidiary company, Hay Castle Trading Limited, which donates its profits to the Trust.

The Trust runs a programme of talks, workshops, shows, markets and other events for the local community, visitors and schools covering a wide range of interests and topics.

The Hay Festival Winter Weekend took place at the Castle in November 2024. The second Weekend of Mistakes, a programme exploring the history of economic and financial mistakes, took place in March 2025.

The Castle remains a member of both the Historic Houses Association and the Art Fund. These memberships allow the Castle to be promoted to a combined membership of over 200,000.

The exhibitions in the gallery during the year were:

In addition to the above, a further ten exhibitions ran during the course of the year. These events were held in various parts of the Castle, including the café and the sculpture gallery with the subject matter including photography, jewellery and an event which exhibited a range of artwork created by students, including paintings, sculptures, and ceramics. As reported last year, in May 2024 the success of the restoration project was recognised when the Castle won RIBA Wales Building of the Year 2024 as well as a RIBA Conservation Award 2024 and a RIBA Wales Award 2024.

The Trust continues to work towards full Museum Accreditation, having already been granted the status of Working Toward Accreditation.

During the year, the Board decided to appoint external consultants, The Funding Centre, to provide additional capacity and expert support to the Castle around fundraising, especially regarding core funding. An initial prospect search resulted in a number of recommendations for applications which were taken forward during the course of the year. The initiative will be continued in the coming year.

We are extremely grateful for the continued support of the organisations that provide funding for our capital and operational projects. Information on grants awarded during the year is provided in note 3 to the Financial Statements.

PEOPLE

The Castle could not operate without our dedicated team of volunteers who welcome visitors to the Castle, run tours, assist in the shop, provide support at events and exhibitions and help to maintain the grounds. During the year, Carol Peace and Stephen Purse retired from the board after a combined length of service of seven years during which they provided invaluable strategic support to the Castle. The trustees are very grateful for the dedicated efforts of the retiring Trustees.

As reported last year, Karen Usher joined the board on 14 June 2024, adding her extensive business and _ voluntary experience.

Page 2

HAY CASTLE TRUST Report of the Trustees FOR THE YEAR ENDED 30 APRIL 2025

FINANCIAL REVIEW

Financial Position

Total income for the year was £526,039 (2024 - £557,517) and total expenditure in the year was £523,789 (2024 - £533,820), giving a net income position of £2,250 (2024 - £23,687).

At the 30 April 2025 the charity had net current assets of £(746,973) (2024 - (759,800)). Total funds at 30 April 2025 were £9,679,701 (2024 - £9,677,451), of which £115,198 were restricted funds.

During the year, the charity was successful in securing a grant of £41,103 from the Moondance Foundation towards operating costs. Further, the Foyle Foundation awarded a grant of £15,000 to help support staff and operational costs and a grant of £20,000 was received from the Elmley Foundation to help cover the costs of operating the gallery. Contributions towards estate maintenance costs were received from the National Lottery Community Fund (£19,688) and from The Pilgrim Trust (£5,000). Other grant income was received to support exhibitions which were run by the castle throughout the year.

During the year an amount of £55,408 (2024: £51,681) was donated from Hay Castle Trading Limited, the company's 100% owned trading subsidiary. A further restricted donation of £30,669 (2024: £23,000) was received for the event ‘Weekend of Mistakes’.

The Company will continue to raise funds from trusts, foundations and individuals to enable a range of performance and participation programmes that are planned for 2025/26.

Principal funding sources

Income from charitable activities was £179,267 (2024: £127,099) with the increase stemming from higher admission ticket income (£83,161 against £73,143 in 2024) and from event income (£49,982 against - £19,506 in 2024).

The principal sources of trading income during the year came from the café - £62,668 (2024: £71,959); from rental income from the letting of retail units - £20,544 (2024: £26,316) and from venue hire - £11,371 (2024: £48,490). The café continues to be run by a third party operator with the charity earning a rental income which is partly turnover based. Income from venue hire fell during the year as a result of fewer weddings compared to previous years. The number of wedding bookings for 2026 are, however, encouraging and the charity is optimistic that this income stream will increase in the years ahead.

The Museums, Gallery and Exhibition Tax Relief credit accounted for during the year was £24,869 (2024: £14,781). Gift Aid credit during the year was £14,884 (2024: £12,436).

Reserves

The trustees have considered the need for free reserves to provide financial resilience. The target is an amount sufficient to cover at least three months operating expenses, or approximately £130,000.

The unrestricted reserves at 30 April 2025 amount to £9,564,503. After deducting the value of fixed assets, adding the £939,000 loan from Lindenleaf CIO (the terms of which are set out in note 21 to the financial statements) and adding the distributable reserves of £55,148 in the subsidiary company (Hay Castle Trading Limited), the adjusted free reserves at 30 April 2025 amount to approximately £129,500 (2024: £171,500), or 100% (2024: 131%) of the target amount.

FUTURE PLANS

The Trust will ensure that the Castle remains attractive both to the local community and visitors from further afield through the continued provision of high quality activities, including exhibitions and events as well as retail and catering outlets.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

Hay Castle Trust is a company limited by guarantee and is governed by its Memorandum and Articles of Association. Governance and the financial health of the Trust are the responsibility of the trustees. None of the trustees has any beneficial interest in the Trust. All the trustees are members of the Trust and guarantee to contribute a sum not exceeding £10 in the event of a winding up.

Recruitment, appointment and induction of new trustees

The power of appointing new or additional trustees is vested in the trustees. Trustees are expected to identify their training needs and take measures to ensure these needs are met.

Page 3

HAY CASTLE TRUST

Report of the Trustees FOR THE YEAR ENDED 30 APRIL 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Key management remuneration

The Castle is operated on a day-to-day basis by the Executive Director and his team. The pay of senior staff is set by the trustees having regard to market rates.

Risk management

The trustees regularly review the major risks inherent in the operation of the Trust and systems and procedures have been established to manage those risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 07639471 (England and Wales)

Registered Charity number 1144524

Registered office Hay Castle Oxford Road HAY-ON-WYE Powys HR3 5DG

Trustees

The current trustees are:

Jennifer Bennett Robert Collingwood Edward Fox Christopher Fyles Fiona Howard Susan Malthouse Chair Alice Sherwood Karen Usher Appointed 14th June 2024 The following trustees also held office during the year: Carol Peace Resigned 27th September 2024 Stephen Purse Resigned 13th December 2024 Senior management Tom True Executive Director Auditors MHA Statutory Auditor Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Bankers Barclays 1-3 Broad Street Hereford HR4 9BH

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

Page 4

HAY CASTLE TRUST

Report of the Trustees FOR THE YEAR ENDED 30 APRIL 2025

STATEMENT OF TRUSTEES’ RESPONSIBILITIES - continued

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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

AUDITORS

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, Macintyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the Board of Trustees on 04/09/2025 and signed on its behalf by:

fret, “Td cag fhe Se Nagi nce sn

Page 5

Report of the Independent Auditors to the Members of Hay Castle Trust

Opinion

We have audited the financial statements of Hay Castle Trust (the ‘charitable company') for the year ended 30 April 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

Page 6

Report of the Independent Auditors to the Members of Hay Castle Trust

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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'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 or to cease operations, or have no realistic alternative but to do so. Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www. frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 auditors’ 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.

Fa on Amr ia Rachel Doyle ACA FCCA (Senior Statutory Auditor) for and on behalf of MHA Statutory Auditor Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Date: 17/09/2025

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number 0C455542)

Page 7

HAY CASTLE TRUST

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 30 APRIL 2025

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |Unrestricted|Restricted|Total|Total| |funds|funds|funds|funds| |Notes|£|£|£|£| |INCOME|AND|ENDOWMENTS|FROM| |Donations|and|legacies|3|89,663|159,902|249,565|279,575| |Charitable|activities|6| |The|preservation|of|Hay|Castle|and|the| |advancement|of education|179,267|-|179,267|127,099| |Trading|activities|4|94,871|-|94,871|147,382| |Investment|income|5|2,336|-|2,336|3,461| |Total|366,137|159,902|526,039|557,517| |EXPENDITURE|ON| |Raising|funds|7|26,717|-|26,717|34,879| |Charitable|activities|8| |The|preservation|of|Hay|Castle|and|the| |advancement|of|education|413,313|83,759|497,072|498|941| |Total|440,030|83,759|523,789|533,820| |NET|INCOME/(EXPENDITURE)|(73,893)|76,143|2,250|23,697| |Transfers|between|funds|22|11,550|(11,550)|-|-| |Net|movement|in|funds|(62,343)|64,593|2,250|23,697| |RECONCILIATION|OF|FUNDS| |Total|funds|brought|forward|9,626,846|50,605|9,677,451|9,653,754| |TOTAL|FUNDS|CARRIED|FORWARD|9,564,503|115,198|9,679,701|9,677,451|

----- End of picture text -----

The notes form part of these financial statements

HAY CASTLE TRUST

Balance Sheet 30 APRIL 2025

2025
2024
Unrestricted Restricted Total
Total
Notes funds
£		 funds
£		 funds
funds
£
£
FIXED ASSETS
Tangible assets 15 36,094 - 36,094
51,136
Heritage assets 16 10,393,079 - 10,393,079
10,398,614
Investments 17 1 - 1
1
CURRENT ASSETS
Debtors
Cash at bank		 18 10,429,174
34,404
90,075		 -
94,643
20,555		 10,429,174
10,449,751
129,047
218,850
110,630
325,004
124,479 115,198 239,677
543,854
CREDITORS
Amounts falling due within one year 19 (986,650) - (986,650)
(1,303,654)
NETCURRENTASSETS (862,171) 115,198 (746,973)
(759,800)
TOTALASSETS ASSETS LESS CURRENT LIABILITIES 9,567,003 115,198 9,682,201
9,689,951
CREDITORS
Amounts falling due aftermore than one year 20 (2,500) - (2,500)
(12,500)
NETASSETS 9,564,503 115,198 9,679,701
9,677,451
FUNDS 22
Unrestricted funds 9,564,503
9,626,846
Restricted funds 115,198
50,605
TOTAL FUNDS 9,679,701
9,677,451

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

The financial statements were approved by the Board of Trustees and authorised for issue on 04/09/2025 and were signed on its behalf by:

fle et, Hd cee fhe

The notes form part of these financial statements

HAY CASTLE TRUST

Notes to the Financial Statements FOR THE YEAR ENDED 30 APRIL 2025

  1. STATUTORY INFORMATION

Hay Castle Trust is a company limited by guarantee incorporated in Wales within the United Kingdom. The registered office is Hay Castle, Oxford Road, Hay-on-Wye, HR3 5DG.

The charity does not have any share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

The financial statements are presented in Sterling (£), the company's functional currency, and rounded to the nearest pound.

The principal activities and nature of the Trust's operations are described in the Report of the Trustees.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

  1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to the UK and Republic of Ireland (FRS 102) (effective January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

There have been no material departures from Financial Reporting Standard 102.

Assets and liabilities are initially recognised at historical cost or transaction values unless otherwise stated in the relevant accounting policies.

Going concern

Financial projections have been prepared for a period covering 12 months from the approval of these financial statements. These include both the projected operating results and cashflow projections.

Consideration has also been given to the continued availability of the loan from Lindenleaf CIO, further details of which are provided in note 21.

In these circumstances, the trustees have concluded that no adjustments or additional disclosures are required to the financial statements and are satisfied that it is appropriate for the financial statements to be prepared on a going concern basis.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

This includes capital grants.

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Income includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. Income from other trading activities includes income received under contract.This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Investment income is recognised ona receivable basis.

Page 12

continued...

HAY CASTLE TRUST Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

2. ACCOUNTING POLICIES - continued

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on costs of raising funds include costs of fundraising, advertising, marketing and direct mail materials as well as a consultancy fees.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the management of the charity.

ALLOCATION AND APPORTIONMENT OF COSTS

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis.

TANGIBLE FIXED ASSETS

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any residual over their expected useful economic life as follows:

value,

Plant and machinery 25% straight line Fixtures and fittings 10% - 20% straight line Computer equipment 33% straight line

During the period of restoration, freehold land and buildings were held at cost and not depreciated.

Fixed assets are initially recorded at cost. Only assets which cost £500 or more are capitalised.

Investments

Investments are stated at cost less any impairment at the balance sheet date.

HERITAGE ASSETS

Heritage assets are recognised on the balance sheet and initially measured at cost when purchased or if donated, their valuation if known. Assets are subsequently stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Fair values for donated assets are estimated by reference to market prices.

Those heritage assets currently recognised on the balance sheet have indefinite lives and are therefore not depreciated, but reviewed at each reporting date for impairment. Where information on the cost or valuation of heritage assets is not available or the cost of providing such information significantly outweighs any benefit to the users of the accounts then heritage assets are not recognised on the balance sheet.

The Trust maintains a register for its collections of heritage assets which records the nature and current location of each asset.

Taxation

The Trust has been granted exemption from UK corporation tax by virtue of its charitable status. Activities which are not primary purpose trades are within the statutory limits prescribed by the statutory exemption for small trading.

Page 13

continued...

HAY CASTLE TRUST Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

2. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS

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

Debtors

Debtors with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Creditors

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

FUND ACCOUNTING

Unrestricted funds

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Designated funds

Designated funds are unrestricted funds which are set aside by the trustees for a specific purpose.

Restricted funds

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure, which meets these criteria, is charged to the fund, together with a fair allocation of support and governance costs.

Transfers are made from restricted to unrestricted funds relating to the purchase of fixed assets from restricted income where such expenditure fulfils the terms of the restriction.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

  1. DONATIONS AND LEGACIES
2025
2024
£
£
Donations 100,923
87,739
Gift aid 14,884
12,436
Grants 128,780
172,078
Membership schemes 4,978
7,322
249,565
279,575

During the year an amount of £55,408 (2024: £51,681) was donated from Hay Castle Trading Limited, the company's 100% owned trading subsidiary. A further restricted donation of £30,669 (2024: £23,000) was received for the event 'Weekend of Mistakes’.

Page 14

continued...

HAY CASTLE TRUST Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

  1. DONATIONS AND LEGACIES - continued Grants received, included in the above, are as follows:

4.

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|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |National|Portrait|Gallery|-|Creative|Intern|funding|-|7,681| |Welsh|Government|-|towards|operating|costs|-|8,000| |Garfield|Weston|Foundation|-|towards|operating|costs|-|20,000| |Arts|Council|of Wales:|Refugee|Artists|Exhibition|-|10,000| |Colwinston|Charitable|Trust:|Hidden|Gifts|-|Refugee|Artists|in|Wales|-|11,275| |The|Ashley|Family|Foundation:|April|Ashley|A|Lady|in|Hay|-|1,500| |Brecknock|Art|Trust|-|Josef|Herman|Exhibition|-|850| |Arts|Council|of Wales:|April|Ashley A|Lady|in|Hay|-|10,000| |The|Moondance|Foundation:|towards|operating|costs|41,103|58,760| |Welsh|Historic|Gardens|Trust:|restoration|gardens/|grounds|-|1,020| |Herefordshire|Council|-|UK|Shared|Prosperity|Fund|-|6,000| |Hay|History|group:|Display|cabinet|for|archaeological|finds|-|1,500| |Federation|of|Museums|and|Art|Galleries|of Wales:|Art|Handling|-|690| |The|Architectural|Heritage|Fund;|Project|Development|-|29,600| |Bannau|Brycheiniog|National|Park|Authority:|Dark|Skies|-|1,434| |Film|Hub|Wales:|Writing|with|Light|-|3,000| |Bannau|Brycheiniog|National|Park|Authority:|Remarkable|Castles|-|768| |UK|Shared|Prosperity|Fund|for|Events|and|Festivals:|Writing|with|Light|4,755|-| |The|Darkly|Trust|-|Grant|for|PA|System|2,350|-| |Museums|Federation|Cymru|-|Museum|association|conference|expenses|344|-| |Kids|in|Museums|-|Family|Friendly|Museum|Support|Programme|750|-| |The|Pilgrim|Trust|-|Preserving|Hay|Castle's|Medieval|Wall|5,000|-| |THE|HERDS-|To|support|content|creation|and|paid|posts|200|-| |THE|HERDS|-|Endangered|species|workshops|1,990|-| |The|Mumford|Memorial|Fund|-|Towards|the|overheads|of the|learning|5,000|-| |space| |The|National|Lottery|Community|Fund|-|Lawn|maintenance,|staff|costs|19,688|-| |The|Elmley|Foundation|-|Towards|operating|museum|standard|gallery|20,000|-| |The|Herefordshire|Community|Foundation|-|Quentin|Blake|Exhibition|2,000|-| |SR|&|PH|Southall|Charitable|Trust|-|Quentin|Blake|Exhibition|5,000|-| |Colwinston|Charitable|Trust|-|Celebration|of Welsh|Artists|5,600|-| |The|Foyle|Foundation|-|Staff|costs|and|overheads|15,000|-| |128,780|172,078| |TRADING ACTIVITIES| |2025|2024| |£|£| |Cafe|62,668|71,959| |Rental|income|20,544|26,316| |Venue|hire|11,371|48,490| |Other|income|288|617| |94,871|147,382|

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |8.|CHARITABLE|ACTIVITIES|COSTS| |Direct|Support| |Costs|(see|costs|(see| |note|9)|note|10)|Totals| |£|£|£| |The|preservation|of|Hay|Castle|and|the| |advancement|of|education|405,999|91,073|497,072| |9.|DIRECT|COSTS|OF|CHARITABLE|ACTIVITIES| |2025|2024| |£|£| |Staff|costs|139,581|140,594| |Heat,|light,|power,|water|and|waste|collection|45,919|60,030| |Heritage|&|learning|activities|costs|15,232|7,735| |Cleaning|costs|23,681|34,456| |Insurances|22,521|23,916| |Postage|and|stationery|851|1,300| |Advertising|and|promotions|3,716|5,209| |Exhibition|costs|24,378|30,445| |Repairs|and|maintenance|44,413|36,693| |Staff &|volunteer|travel,|training|and|expenses|1,672|4,726| |Office|expenses|11,006|6,826| |Cost|of|events|71,169|52,413| |Bank|charges|436|420| |Exceptional|items|1,424|-| |405,999|404,763| |10.|SUPPORT|COSTS| |Staff|Governance| |costs|Finance|Other|costs|Totals| |£|£|£|£|£| |The|preservation|of|Hay| |Castle|and|the| |advancement|of|education|60,631|447|21,336|8,659|91,073| |2024|58,314|699|26,067|9,098|94,178| |11.|NET|INCOME/(EXPENDITURE)| |Net|income/(expenditure)|is|stated|after|charging/(crediting):| |2025|2024| |£|£| |Depreciation|-|owned|assets|17,014|16,408| |Auditors'|remuneration|6,500|6,500|

----- End of picture text -----

Depreciation is apportioned to include £14,108 (2024: £13,174) within raising funds (note 7) and £2,906 (2024: £3,234) within support costs (note 10).

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HAY CASTLE TRUST Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

12. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees' remuneration, other benefits or expenses paid for the year ended 30 April 2025 or for the year ended 30 April 2024.

13. STAFF COSTS

----- Start of picture text -----
||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Wages|and|salaries|184,042|181,931| |Social|security|costs|12,059|12,679| |Employer|pension|costs|4,111|4,298| |200,211|198,908| |The|average|number|of employees|during|the|year|was|as|follows:| |2025|2024| |Employees|8|6| |One|employee|received|emoluments|in|excess|of £60,000.| |The|total|key|management|personnel|remuneration|benefits|paid|during|the|year was|£60,631|(2024:|£58,313).| |14.|COMPARATIVES|FOR|THE|STATEMENT|OF|FINANCIAL|ACTIVITIES|-|30|APRIL|2024| |Unrestricted|Restricted|Total| |funds|funds|funds| |£|£|£| |INCOME|AND|ENDOWMENTS|FROM| |Donations|and|legacies|111,455|168,120|279,575| |Charitable|activities| |The|preservation|of|Hay|Castle|and|the| |advancement|of|education|127,099|-|127,099| |Trading|activities|147,382|-|147,382| |Investment|income|3,461|-|3,461| |Total|389,397|168,120|557,517| |EXPENDITURE|ON| |Raising|funds|34,879|-|34,879| |Charitable|activities| |The|preservation|of|Hay|Castle|and|the| |advancement|of|education|234,359|264,582|498,941| |Total|269,238|264,582|533,820| |NET|INCOME/(EXPENDITURE)|120,159|(96,462)|23,697| |Transfers|between|funds|14,832|(14,832)|-| |Net|movement|in|funds|134,991|(111,294)|23,697| |RECONCILIATION|OF|FUNDS| |Total|funds|brought|forward|9,491,855|161,899|9,653,754| |TOTAL|FUNDS|CARRIED|FORWARD|9,626,846|50,605|9,677,451|

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

17. FIXED ASSET INVESTMENTS

Shares in in
group
undertakings
COST £
At 1 May 2024 and 30 April 2025 1
NET BOOK VALUE
At 30 April 2025 1
At30April2024 1

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Hay Castle Trading Limited

Registered office: Hay Castle, Oxford Road, Hay-on-Wye, Hereford,United Kingdom, HR3 5DG Nature of business: Retail

19.

% %
Class of share: holding
Ordinary 100
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors 2025
£
11,203		 2024
£
23,930
Amounts owed
Other debtors
VAT
Prepayments		 by group undertakings 10,088
91,380
-
16,376		 -
182,554
5,994
6,372
129,047 218,850
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025
£		 2024
£
Bank loans and overdrafts (see note 21) 10,000 10,000
Other loans (see note 21) 939,000 939,000
Trade creditors 4,874 44,552
VAT 497 -
Other creditors 2,403 7,769
Accruals and deferred income 29,876 302,333
986,650 1,303,654

Included within accruals and deferred income above is the following deferred income:

2025
2024
£
£
Venue hire 15,465
6,672
15,465
6,672

All deferred income relates to income received in advance of venue hire dates.

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

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

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Bank|loans|(see|note|21)|2,500|12,500| |21.|LOANS| |An|analysis|of the|maturity|of|loans|is|given|below:| |2025|2024| |£|£| |Amounts|falling|due|within|one|year|on|demand:| |Bank|loans|10,000|10,000| |Other|loans|939,000|939,000| |949,000|949,000| |Amounts|falling|between|one|and|two|years:| |Bank|loans|-|1-2|years|2,500|12,500|

----- End of picture text -----

The bank loan is interest bearing and was drawn under the Bounce Back Loan Scheme.

The other loan is from Lindenleaf ClO under the terms of a funding agreement dated 16 July 2016, as subsequently amended. The loan is interest free and the Trust may repay the loan at any tme.

Until 24 May 2027 the lender may:

The lender shall convert any part of the loan outstanding at 24 May 2027 into a donation.

22. MOVEMENT IN FUNDS

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Net|Transfers| |movement|between|At| |At|1/5/24|in|funds|funds|30/4/25| |£|£|£|£| |Unrestricted|funds| |General|fund|(822,904)|(56,879)|954,113|74,330| |Fixed|asset|fund|10,449,750|(17,014)|(942,563)|9,490,173| |9,626,846|(73,893)|11,550|9,564,503| |Restricted|funds| |Heritage|Skills|Training|8,253|(1,670)|-|6,583| |National|Lottery|Community|Fund|-|17,284|-|17,284| |The|Moondance|Foundation|-|salary| |contribution|1,846|39,257|-|41,103| |April:|A|Lady|in|Hay|10,906|(10,906)|-|-| |Project|Development|29,600|(1,646)|(11,550)|16,404| |The|Darkly|Trust|-|1,246|-|1,246| |Museums|Federation|Cymru|-|110|-|110| |Preserving|Hay|Castle's|Medieval|Curtain| |Wall|-|5,000|-|5,000| |THE|HERDS|-|2,190|-|2,190| |The|Elmley|Foundation|-|11,585|-|11,585| |The|Foyle|Foundation|-|8,480|-|8,480| |Celebration|of 20th|Century Welsh|Artists|-|5,213|-|5,213| |50,605|76,143|(11,550)|115,198| |TOTAL|FUNDS|9,677,451|2,250|-|9,679,701|

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

22. MOVEMENT IN FUNDS- continued

Net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|366,137|(423,016)|(56,879)| |Fixed|asset|fund|-|(17,014)|(17,014)| |366,137|(440,030)|(73,893)| |Restricted|funds| |Heritage|Skills|Training|-|(1,670)|(1,670)| |National|Lottery|Community|Fund|19,688|(2,404)|17,284| |Weekend|of|Mistakes|30,669|(30,669)|-| |Defibrillator|453|(453)|-| |The|Moondance|Foundation|-|salary| |contribution|41,103|(1,846)|39,257| |April:|A|Lady|in|Hay|-|(10,906)|(10,906)| |Project|Development|-|(1,646)|(1,646)| |Writing|with|Light|4,755|(4,755)|-| |The|Darkly|Trust|2,350|(1,104)|1,246| |Museums|Federation|Cymru|344|(234)|110| |Family|Friendly|Museum|Support| |Programme|Wales|750|(750)|-| |Preserving|Hay|Castle's|Medieval|Curtain| |Wall|5,000|-|5,000| |THE|HERDS|2,190|-|2,190| |Mumford|Memorial|Fund|5,000|(5,000)|-| |The|Elmley|Foundation|20,000|(8,415)|11,585| |The|Foyle|Foundation|15,000|(6,520)|8,480| |Quentin|Blake|Exhibition|7,000|(7,000)|-| |Celebration|of 20th|Century Welsh|Artists|5,600|(387)|5,213| |159,902|(83,759)|76,143| |TOTAL|FUNDS|526,039|(523,789)|2,250|

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

22. MOVEMENT IN FUNDS- continued

Comparative net movement in funds, included in the above are as follows:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Incoming|Resources|Movement| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|fund|389,397|(252,830)|136,567| |Fixed|asset|fund|-|(16,408)|(16,408)| |389,397|(269,238)|120,159| |Restricted|funds| |National|Lottery|Heritage|Fund|-|(124,478)|(124,478)| |Education|and|Activity|-|(6,724)|(6,724)| |Heritage|Skills|Training|-|(33)|(33)| |Community|Foundation|Wales|-|Ashley| |Family|Foundation|-|(8,000)|(8,000)| |National|Portrait|Gallery|-|Creative|Intern|7,681|(7,681)|-| |Welsh|Historic|Gardens|Trust|1,020|(1,970)|(950)| |Community|Nature|Recovery|-|(129)|(129)| |Weekend|of|Mistakes|23,000|(23,000)|-| |Defibrillator|1,042|(1,042)|-| |The|Moondance|Foundation|-|salary| |contribution|58,760|(56,914)|1,846| |Refugee|Artists|in|Wales|exhibition|21,275|(21,275)|-| |Josef|Herman|exhibition|850|(850)|-| |April:|A|Lady|in|Hay|11,500|(594)|10,906| |UK|Shared|Prosperity|Fund|6,000|(6,000)|-| |Display|cabinet|1,500|-|1,500| |Art|handling|690|(690)|-| |Project|Development|29,600|-|29,600| |Dark|Skies|exhibition|1,434|(1,434)|-| |Writing|with|Light|3,000|(3,000)|-| |Remarkable|Castles|768|(768)|-| |168,120|(264,582)|(96,462)| |TOTAL|FUNDS|557,517|(533,820)|23,697|

----- End of picture text -----

Designated fixed asset fund

The fixed asset fund represents the net book value of tangible fixed assets including heritage assets.

Weekend of Mistakes

A donation of £30,669 was received towards the celebrated Library of Mistakes, in residence at Hay Castle 21st - 23rd March 2025. This comprised historians, financial experts, investments sages for a wealth of wisdom and a weekend of financial booms and busts, bubbles, swindles, panics and crashes.

Defibrillator

Donations received towards the purchase of a defibrillator.

The Moondance Foundation - salary contribution

A grant of £41,103 was received from The Moondance Foundation towards the salary costs of the Executive Director.

Writing with Light

The objective of the project was for young audiences, public engagement, screen heritage and inclusion.

The Darkly Trust

Grant funding received towards events equipment.

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

22. MOVEMENT IN FUNDS- continued

Museums Federation Cymru

Grant funding received towards staff development and towards an activities & learning manager's attendance at a conference.

Family Friendly Museum Support Programme Wales

Grant funding received towards improving visitor experience for children and neurodiverse visitors.

Preserving Hay Castle's Medieval Curtain Wall

Grant funding received from Pilgrim Trust towards vegetation clearance and investigations overseen by Cadw

HERDS - content creation

Funding towards supporting content creation and social media boosts relating to ArtFund HERDS project.

HERDS - Educational activities

Funding towards educational activities and workshops related to ArtFund HERDS project.

Mumford Memorial Fund - where the need is greatest

Grant funding received towards core delivery of activities programme.

Hay Castle Living Lawn

Grant funding received from the National Lottery Community Fund towards maintenance of lawn and the delivery of outdoor events programmes.

The Elmley Foundation

Grant funding received towards maintaining museum standard gallery and core delivery of the exhibitions programme.

The Foyle Foundation

Grant funding received towards delivery of the artist support programme.

Quentin Blake Exhibition

Grant funding received from the Southall Trust and Herefordshire Community Foundation towards the production of the Quentin Blake exhibition.

Celebration of 20th Century Artists

Grant funding received from Colwinston Charitable Trust towards production of 20th Century Welsh Artists exhibition.

~~Comparative year only~~

Remarkable Castles

Funded provided by Bannau Brycheiniog National Park Authority towards the publication of the Remarkable Castles booklet. Dark Skies Funding was received from Bannau Brycheiniog National Park Authority towards the costs of the exhibition Dark Skies. This exhibition of the work of artist and photographer Judy Goldhill explored our complex relationship to darkness and the night.

Art handling

Funding of £690 was received from the Federation of Museums and Arts Galleries of Wales towards Art handling training that was delivered in the year.

Display cabinet

A grant of £1,500 was received from Hay Castle Group towards the cost a display cabinet.

UK Shared Prosperity Fund

Grant funding was received via Herefordshire Council under Project title: Drawbridge: Hay Castle Open Exhibition Application.

Josef Herman exhibition

Grant of £850 received from the Brecknock Art Trust towards the costs of the Josef Herman exhibition.

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

22. MOVEMENT IN FUNDS- continued

Refugee Artists in Wales exhibition

Grants were received from Arts Council of Wales £10,000 and Colwinston Charitable Trust £11,275 towards Refugee Artists in Wales exhibition.

National Lottery Heritage Fund

Grant funding received from the National Lottery Heritage Fund, for further development phases of Hay Castle.

Community Nature Recovery grant

Funding received from the Brecon Beacons National Park Authority, under the Communities Nature Recovery Grants Scheme towards a wildflower project completed in the year.

Education and Activity

Funding was received in a previous year of £10,000 from The Hobson Charity to support the education and activity programme at Hay Castle.

Heritage Skills Training

Funding was received in a previous year of £20,000 from The Dulverton Trust, and £25,675 from the Andrew Lloyd Webber Foundation which is to be used to establish a heritage skill training programme. The balance will be used to support future activities.

Community Foundation Wales - Ashley Family Foundation Funding was received in a previous year of £8,000 received towards artistic production/materials, marketing and publicity, artist fees, artist travel costs and expenses, art transport, insurance and_ installation, project management and evaluation.

National Portrait Gallery - Creative Intern Funding was received from the National Portrait Gallery specifically to cover the salary and on-costs of an Intern placement at Hay Castle.

Welsh Historic Gardens Trust

The funding was for improvements to the gardens and grounds work.

April: A Lady in Hay exhibition Grants were received from The Ashley Family Foundation £1,500 and Arts Council of Wales £10,000 towards the April: A Lady in Hay exhibition.

Project development

A grant of £29,600 was received from The Architectural Heritage Fund for project development at Hay Castle. This funding was received in March 2024 and will be utilised in the next financial year.

TRANSFERS BETWEEN FUNDS

A transfer of £11,550 was made from the project development fund to the general fund in respect of prepayments made for a potentially capital project.

A transfer of £3,563 was made from the general fund to the designated fixed asset fund, which represents the movement in net book value of the fixed assets at the balance sheet date.

A transfer of £939,000 was made from the fixed asset fund to the general fund, offsetting the value of the Lindenleaf loan, to represent true value of the fixed asset fund.

Comparative year

A transfer of £1,500 was made from the restricted display cabinet fund to the general fund in respect of the funding spent on fixed assets.

A transfer of £13,332 was made from the National Lottery Heritage Fund to the general fund in respect of the funding spent on the capital project.

A transfer of £35,168 was made from the general fund to the designated fixed asset fund, which represents the movement in net book value of the fixed assets at the balance sheet date.

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HAY CASTLE TRUST

Notes to the Financial Statements - continued FOR THE YEAR ENDED 30 APRIL 2025

23. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme. The pension cost for the year represents contributions payable by the charity to the scheme and amounted to £4,111 (2024: £4,298). Contributions totalling £Nil (2024: ENil) were payable to the scheme at the year end and are included in other creditors.

24. CONTINGENT LIABILITIES

In line with the terms of the grant, prior approval from the National Lottery Heritage Fund is required should the property be sold and the National Lottery Heritage Fund may require a share of the net proceeds. It is not the intention of the trustees to sell the property.

On 19 June 2024 a legal charge over the property known as Hay Castle, was filed in favour of The Trustees of the National Heritage Memorial Fund in relation to the funding provided by the National Lottery Heritage Fund for the restoration of the Castle.

25. RELATED PARTY DISCLOSURES

During the financial year, the charity received a donation of £55,408 (2024: £51,681) from its 100% owned trading subsidiary, Hay Castle Trading Limited.

As at 30 April 2025 the amounts due from Hay Castle Trading Limited totalled £10,088 (2024: ENil).

Page 27