**Brothers of the Sacred Heart**
## **Annual Report and Financial Statements**
30 June 2025
Charity Registration Number 1146264 Company Registration Number 07897531 (England and Wales)
## **Contents**
|**Reports**||
|---|---|
|Reference and administrative information|3|
|Trustees’ report|4|
|Independent auditor’s report|15|
|**Financial statements**||
|Statement of financial activities|20|
|Balance sheet|21|
|Statement of cash flows|22|
|Principal accounting policies|23|
|Notes to the financial statements|28|
Brothers of the Sacred Heart **2**
## **Reference and administrative information**
|**Trustees**|Brother Ronald Hingle SC (Chair)|
|---|---|
||Brother Raymond Hetu SC (appointed 18 Oct. 2024)|
||Brother Joseph Holthaus SC|
||Brother Barry Landry SC|
||Brother Ivy Leblanc SC (deceased 26 Sep. 2025)|
||Brother Michael Migacz SC|
|**Registered address**|Brothers of the Sacred|
||Heart Watling House|
||8 King Harry Lane St|
||Albans|
||Herts|
||AL3 4AW|
|**Address of the Brothers of the Sacred**|Provincial Office|
|**Heart (US Province)**|4600 Elysian Fields Avenue New Orleans|
||LA 70122|
||USA|
|**Charity registration number**|1146264|
|**Company registration number**|07897531 (England and Wales)|
|**Auditor**|Buzzacott Audit LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Bankers**|Barclays Bank|
||PLC 1 Churchill|
||Place London|
||E14 5HP|
|**Investment managers**|Sarasin & Partners LLP|
||Juxon House|
||100 St Paul’s Churchyard|
||London|
||EC4M 8BU|
|**Solicitors**|Stone King LLP|
||Upper Borough|
||Court Upper|
||Borough Walls Bath|
||BA1 1RG|
Brothers of the Sacred Heart **3**
**Trustees’ report** Year to 30 June 2025
The trustees present their annual report together with the financial statements of the Brothers of the Sacred Heart (“the charitable company”) for the year ended 30 June 2025.
The financial statements have been prepared in accordance with the accounting policies set out on pages 23 to 27 of the attached financial statements and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
## **Introduction**
The Brothers of the Sacred Heart is an international Roman Catholic Congregation founded in 1821 by Reverend Andre Coindre with the fundamental mission of educating the young. Today, the Congregation has just under 1,000 members spread across 30 countries. The activities of the Brothers in England and Wales are administered and accounted for through a charitable company established in 2012. The company, which is limited by guarantee, is registered with the Charity Commission, Charity Registration Number 1146264. As there is no British province of the Congregation, the members of the Congregation’s US Provincial Council are the members and trustees of the charitable company.
The charitable company’s objectives include the support of members of the Congregation in the Province, enabling such members to establish and continue their individual ministry; providing support for Catholic education at St Columba’s College and Preparatory School (the College), St Albans; supporting Catholic education in Africa, the Philippines and elsewhere in the developing world, through the provision of grants to the Congregation; and the caring for elderly members of the Congregation who are retired in the United States of America.
The members of the charitable company are members of the US Provincial Council of the Brothers of the Sacred Heart, elections to which are held every three years. At the elections to the US Provincial Council in October 2018, Brother Ronald Hingle SC, already a member and director/trustee of the charitable company, was elected Provincial and was then reappointed in 2021 and 2024. Co-opted trustees may also be appointed by the serving trustees for a term of office ending at the next Annual General Meeting. The trustees direct and manage the affairs of the charitable company. The meetings of trustees are chaired by Brother Ronald Hingle SC. Brother Ivy Leblanc SC took primary responsibility for the financial affairs of the charitable company. As such, when he ceased to be a member of the US Provincial Council from 1 July 2024, he remained a trustee, until his death on 26 September 2025. The new member of the US Provincial Council, Brother Raymond Hetu SC, _ex officio_ became a trustee during the year. The trustees are supported by a Corporate Services consultant and an accountant, engaged on contracts for services. The charitable company has no employees.
## **Constitution**
The Brothers of the Sacred Heart is an incorporated charitable company constituted as a company limited by guarantee, Charity Registration Number 1146264 and Company Registration Number 07897531 (England and Wales). The charitable company was incorporated on 4 January 2012.
Brothers of the Sacred Heart **4**
**Trustees’ report** Year to 30 June 2025
## **Background to the charity**
Since 1955 the Brothers of the Sacred Heart have had a charitable foundation governed by a Trust Deed, which in 1996 was constituted as an incorporated body under the Charities Act 1993 (Charity Registration Number 231733). In April 2012 the charitable company resolved that, subject to the consent of the Charity Commission, the assets and functions of the charitable trust should be transferred to this charitable company and that this should be executed as a deed. The charitable trust was closed and removed from the Charity Commission register on 28 February 2013.
Since 1955 the Brothers of the Sacred Heart have conducted St Columba’s College and Preparatory School (Charity Registration Number 1088480) as a Roman Catholic school in St Albans, Hertfordshire. The Provincial of the US Province appoints an Executive Assistant who serves as Dean of St Columba’s College and as a trustee of the St Columba’s College and Preparatory School charitable company. One of his major roles is to effect good communication of all College activities and development to the members of the Provincial Council. The Dean in post since 2 November 2020 is Brother Joseph Holthaus SC.
In April 2012 the charitable company executed as a deed with the charitable trust, and signed by the Provincial, a Trust Deed to transfer part of the charitable trust's funds to the charitable company to establish The Coindre Bursary Trust, an education fund held in investments with Sarasin & Partners LLP, for the purpose of providing means-tested bursaries and other forms of financial support in benefit of St Columba's College and Preparatory School. The Charity Commission recognised The Coindre Bursary Trust as a registered charity linked by a Uniting Direction with the charitable company on 28 June 2012. The transfer of assets took place on 31 July 2012.
The financial statements accompanying this report are the financial statements of the charitable company, Brothers of the Sacred Heart, which has title to the Congregation’s assets and liabilities in England and through which the activities of the Congregation in England are accounted for (the reporting charity) and The Coindre Bursary Trust (the linked charity). In accordance with the Uniting Direction, the funds of the The Coindre Bursary Trust are treated as restricted funds in the accounts of the charitable company.
## **Objectives, activities and relevant policies**
## _**Objectives and activities**_
The charitable company’s objects are to advance for the public benefit such charitable purposes connected to the Roman Catholic religion as the trustees shall from time to time think fit. These may take place in England and Wales or in other countries where the Brothers of the Sacred Heart are established. Consideration has been given to the Charity Commission’s guidance on public benefit.
Brothers of the Sacred Heart **5**
**Trustees’ report** Year to 30 June 2025
The charitable company’s objectives include:
- ♦ Providing its vowed members the wherewithal to exercise their religious obligations and to serve as living examples of Christian discipleship to the people they meet daily;
- ♦ Providing financial support for Catholic education at St Columba’s College and Preparatory School, St Albans, Hertfordshire;
- ♦ Supporting Catholic education, especially in Africa and in the Philippines, through financial assistance to the Brothers of the Sacred Heart of the Eastern and Southern Africa Province and the Brothers’ Delegation in the Philippines;
- ♦ Providing financial assistance to the Brothers of the Sacred Heart to further its mission work to relieve poverty organised through the Congregation’s General Council and provinces;
- ♦ Caring for elderly Brothers of the Sacred Heart of the US Province who are retired in the United States; and
- ♦ Maintaining and improving the buildings owned by the Brothers of the Sacred Heart for the accommodation of the religious Congregation and for the Church’s educational mission.
## _**Protection of Children and Vulnerable Adults**_
Like all other organisations who serve in the Congregation, the trustees recognise the absolute necessity of ensuring the protection and safety of all those the charitable company serves in any way. This means that members engaged in any ministry in England must obtain clearance from the Disclosure and Barring Service (DBS). The trustees are fully committed to implementing all policies and procedures as a regulated affiliate of the Catholic Safeguarding Standards Agency (CSSA). Terms of engagement were signed on 11 December 2023. In February 2022 the charity registered with the Religious Life Safeguarding Service (RLSS) and signed a contract to receive the safeguarding services of Religious Life Safeguarding Services Limited, including training, advice and support.
## _**Investment policy**_
The charitable company has a portfolio of listed investments which together with cash awaiting investment had a market value as at 30 June 2025 of £3,854,651 (2024 – £3,894,229).
There are no restrictions on the charitable company’s power to invest. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s view of the market prospects in the medium term; the trustees have agreed a detailed investment policy that includes ethical guidelines with the investment managers which they take into account in their choice of securities. According to the ethical policy, the trustees will not invest in companies which engage in activities which are contrary to the moral and social teaching of the Roman Catholic church, in so far as this can be practically established.
Brothers of the Sacred Heart **6**
**Trustees’ report** Year to 30 June 2025
The overall investment policy is to maximise total return through a diversified portfolio, prioritising total return and portfolio growth over the provision of a pre-determined level of income.
Investments are held for the continuing support and retirement needs of the brothers and for future provision of bursaries at St Columba's College. Investments are acquired in accordance with the investment policies document contained within the charitable company's administrative document. The policies are reviewed bi-annually. The charitable company's primary investment objective is to match or exceed the portfolio benchmark established for the Continuing Community Support Fund and the Coindre Bursary Trust.
Other aspects of the investment policies include:
- ♦ Not investing in companies dealing with abortifacients, armaments and tobacco;
- ♦ Common stock securities of any company should not exceed 5% of the total market value of equities in the portfolio, with the agreed exceptions of HSBC plc and BP plc;
- ♦ No more than 10% of the portfolio should be invested in any one FTSE All Share Sector (except for the Banking sector as agreed); and
- ♦ Balancing the fund to a preferred 65% in equities, 25% fixed income, 5% property and 5% cash, within a flexible range of minimum and maximum boundaries.
The investments are now held in a unitised fund in order to achieve these objectives. The performance of the portfolio and the charitable company’s investment strategy are reviewed by the trustees whose representatives meet with the investment managers regularly.
## **Achievements and performance**
## _**Review of activities**_
During the year the charity continued to support the activities of the brothers as stated in the objectives above.
The charitable company used its funds to meet its objectives as follows.
- ♦ £205,017 (2024 – £212,894) in support of the brothers, in England and in retirement in the US.
- ♦ £189,517 (2024 – £178,029) in gifts and donations, including:
- £39,738 (202 4 – £39,251) from the reporting charity to the Solidarity Fund of the Congregation’s General Council for onward distribution to projects for the relief of poverty.
- £95,373 (2024 – £93,203) from the reporting charity to the Brothers' Delegation in the Philippines for the relief of poverty and for education.
Brothers of the Sacred Heart **7**
**Trustees’ report** Year to 30 June 2025
- £15,000 (2024 – £5,100) in other donations, which was a donation to St Columba's College in support of its strategic review to sustain its charitable enterprise.
- £39,406 (2024 – £40,475) provided from The Coindre Bursary Trust, the linked charity, to support bursaries at St Columba's College (in line with the agreed policy to provide 5% of the average valuation of the fund at 31 December over the three preceding years).
## **Raising funds**
The charitable company aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charitable company manages its own fundraising activities and does not employ the services of professional fundraisers. The charitable company undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charitable company received no complaints about its fundraising activities.
## **Financial report for the year**
## _**Results for the year**_
A summary of the results for the year can be found on page 20 of the attached financial statements.
Total income for the year amounted to £481,461 compared to £469,661 in 2024.
Expenditure amounted to £393,507 compared to £390,680 in 2024. The costs in relation to supporting members of the Province and their ministry were £205,017 (2024 – £212,894). Donations given were £189,517 (2024 – £178,029). Further details of donations given are included in note 6 to the financial statements and above.
The net income for the year before investment gains was £87,954 (2024 – £78,981). The net investment gains totaled £30,200 (2024 – £343,366) and exchange losses on cash held by investment managers were £624 (2024 – £1,294). When these net gains are accounted for, the overall impact on the charitable company’s funds is an increase of £117,530 (2024 – £421,053) for the year.
## _**Investment performance**_
During the year to 30 June 2025, the charitable company’s listed investments produced an income yield of 2.8% (2024 – 3.0%) and a positive capital yield of 0.8% (2024 – positive capital yield of 9.9%).
Brothers of the Sacred Heart **8**
**Trustees’ report** Year to 30 June 2025
## _**Reserves policy and financial position**_
## _Reserves policy_
As explained above, the charitable company carries out a diverse range of activities, some of which comprise short term and externally funded projects whilst others comprise long term projects requiring significant ongoing financial commitment and investment.
The trustees have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets and programme related investments, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company’s work, the level of free reserves should be equivalent to 36 months’ expenditure. The trustees are of the opinion that this reflects the charitable company’s reliance on investments to generate investment income to fund recurring expenditure, and the continued performance of St Columba’s College and Preparatory School, from which the charitable company receives most of its income. The policy also provides sufficient flexibility to cover temporary shortfalls in income due to timing differences in income flows, adequate working capital to cover core costs, and will allow the charitable company to cope in the current macroeconomic and geopolitical climate, the extension of VAT to include independent schools in England, and respond to other unforeseen emergencies whilst specific action plans are implemented. The brothers in England receive minimal stipends for their work. The reserves also maintain the cost of sustaining the brothers' residence in England.
## _Financial position_
The balance sheet shows total funds £5,896,264 (2024 – £5,778,734).
These funds include restricted funds of £788,099 (2024 – £800,007) of which £786,716 (2024 – £798,724) related to the linked charity, The Coindre Bursary Trust. These funds are represented by The Coindre Bursary Trust’s investment portfolio, intended for future provision of bursaries at St Columba's College. Further details of restricted funds are given in note 18 to the financial statements.
The tangible fixed assets fund equal to the net book value of the tangible fixed assets and amounting to £1,391,430 (2024 – £1,397,235) has been identified as a separate fund in recognition of the fact that such assets are required to enable the Congregation to carry out its charitable work and are not available to fund activities or meet future commitments. The programme related investment fund equal to the cost of the property used by St Columba’s College and Preparatory School amounted to £215,853 (2024 – £215,853).
An amount of £2,050,000 (2024 – £2,050,000) has been designated to meet the costs of the care and welfare of members of the Province as they grow old or frail. The amount of funds set aside has been calculated using actuarial principles and will provide only modest amounts in the future. The reserves are set aside for the continuing support of the brothers in St Albans and for the needs of retired brothers in the United States. It is estimated that the funds must help support elderly brothers for the next 25 years.
Brothers of the Sacred Heart **9**
**Trustees’ report** Year to 30 June 2025
£223,767 (2024 - £116,633) represents the cost of capital works planned on the Watling House site.
Further details of the purposes of the designated funds and an analysis of the movements on the funds are set out in the notes to the financial statements.
General funds or ‘free reserves’ of the charitable company at 30 June 2025 total £1,227,115 (2024 – £1,199,006).
The trustees consider this level of free reserves accords with the charitable company’s reserves policy stated above. The trustees are of this opinion given the potential for volatility in world stock markets due to the political and economic uncertainties, as well as the continued uncertain impact of VAT on independent schools. They also accept that in the years ahead, members of the Province may require increasing and increasingly expensive health care, and that the designated retirement fund of £2,050,000 described above may prove to be inadequate. It is the intention of the trustees to increase the fund over time.
## **Future plans**
The trustees having reviewed their funding policy post year-end have agreed to continue to meet the objectives of the charity in the following ways:
- (i) To designate funds to support the future needs of the ageing Brothers’ membership of the US Province and to support the living costs of the Brothers resident in the UK;
- (ii) To make an annual contribution of at least US $50,000 to the Institute’s Solidarity Fund to help fund Brothers’ ministries in the developing world.
- (iii) To make an annual contribution of circa US $120,000 to the Delegation of the Philippines.
- (iv) To make an annual donation from the Coindre Bursary Trust to St Columba’s College and Preparatory School for the provision of school bursaries.
- (v) To support the formation of new Brothers, staff and other non-member charity representatives in the charism of the Brothers in furtherance of its charitable activities.
## **Governance, Structure and Management**
## _**Governance**_
In terms of civil law, the charitable company is constituted as a company limited by guarantee (Company Registration No. 07897531 (England and Wales)) and is a charitable company registered for charitable purposes with the Charity Commission (Charity Registration No. 1146264).
Brothers of the Sacred Heart **10**
**Trustees’ report** Year to 30 June 2025
## _**Trustees**_
The names of the trustees who served during the year are set out as part of the reference and administrative information details on page 1 of this annual report and financial statements. No trustee received any remuneration or was reimbursed expenses for services as a trustee, nor had any beneficial interest in any contract with the charitable company, during the year.
The trustees are all members of the Congregation and, as such, are closely involved with the day-to-day work of the brothers and directly responsible for all major decisions.
The trustees are ultimately responsible for the policies, activities and assets of the charitable company. They meet at least four times a year to review developments with regard to the charitable company or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charitable company’s professional advisers including investment managers, solicitors and accountants. The day-to-day management of the charitable company’s activities, and the implementation of policies, is delegated to appropriate members of the Province and to external consultants and advisers as necessary.
Trustees receive induction from their professional advisers at the time of their appointment, in particular on company and charity law and trustees' duties, utilising in particular guidance provided by the Charity Commission for England and Wales. Trustees are kept updated with changes in relevant regulations and guidance by their professional advisers, and receive regular communications from the Conference of Religious in England and Wales, the Diocese of Westminster, and from their professional advisers.
## _**Liability of the members**_
In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.
## _**Key management**_
The trustees consider that they comprise the key management personnel of the charitable company in charge of directing and controlling, running and operating the charitable company on a day-to-day basis.
All trustees are members of the Congregation and they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or their work as key management.
## _**Statement of trustees’ responsibilities**_
The trustees (who are also directors of the Brothers of the Sacred Heart for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Brothers of the Sacred Heart **11**
## **Trustees’ report** Year to 30 June 2025
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 income and expenditure of the charitable company for that period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.
- ♦ select suitable accounting policies and then apply them consistently;
- ♦ observe the methods and principles of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);
- ♦ make judgements and estimates that are reasonable and prudent;
- ♦ state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- ♦ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the trustees confirms that:
- ♦ so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
- ♦ the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
## _**Public benefit**_
In formulating the charitable company’s aims and in planning the work of members of the Congregation, the trustees have had regard to the general guidance published by the Charity Commission on public benefit.
Brothers of the Sacred Heart **12**
**Trustees’ report** Year to 30 June 2025
## _**Risk management**_
In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the charitable company currently faces and have reviewed the measures already in place, or needing to be put in place, to deal with them.
The key risks for the charitable company, as identified by the trustees, are described below together with the principal ways in which they are mitigated:
- ♦ Revenue income is dependent on the payments from St Columba’s College and Preparatory School for use of the charitable company’s property, which in turn is dependent on the annual school roll. Considerable uncertainty remains after the introduction of VAT for independent schools. Close communication with the College is being maintained and the matter kept under constant review so that measures can be taken if and when there is any early warning of a likely drop in revenue income. Recent strategic decisions by the College have helped to maintain the annual school roll.
- ♦ An analysis of the age profile of the members of the Province shows that the average age is 75 years. The trustees are aware that there is both a moral and legal obligation to care for the older members. None of the brothers has resources of their own. As the age profile increases, so too does the need to provide care for the brothers. Key elements of the management of this risk are: (a) ensuring that the charitable company has the available resources to finance this care both now and in the years ahead by setting aside assets in a designated fund, the value of which has been based on actuarial principles; and
(b) ensuring that processes are in place to review regularly the ministries and needs of individual brothers encouraging those who need it to take on less demanding ministries and for identifying those who need extra care and help.
- ♦ The charitable company donates significant sums in support of the wider Congregation and its missions. Currently, all donations sent overseas are to fund projects administered directly by members of the Congregation or to the General Council for its disbursement in support of projects to relieve poverty, for which it operates its own financial controls in accordance with the requirements of the Congregation and canon law. Funds donated by the charitable company are always transferred via bank transfer and proof of receipt is obtained. Reports of how the monies have been utilised and applied are obtained and fed back to the charitable company by the members of the Congregation responsible.
- ♦ The charitable company's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by a reputable investment manager who adheres to a policy agreed by the trustees. The trustees meet twice a year with the investment manager and the manager's performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charitable company's needs – both now and in the future. The trustees continue to communicate with their investment managers and, whilst there are concerns over the volatility in world stock markets, the trustees acknowledge also that the charitable company is a long-term investor. As such, the charitable company will be able to weather market volatility over time whilst the trustees keep a watching brief.
Brothers of the Sacred Heart **13**
**Trustees’ report** Year to 30 June 2025
Having assessed the major risks to which the charitable company is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charitable company, they have established effective systems to mitigate those risks.
## **Acknowledgements**
The trustees wish to record their recognition of the professionalism and commitment of the individual members of the Congregation, and those who have assisted the charitable company during the period.
Their dedication and positive approach are much appreciated.
Signed on behalf of trustees of Brothers of the Sacred Heart, Company Registration No. 0789531 (England and Wales) and Charity Registration No. 1146264
**Brother Ronald Hingle SC** Trustee
Approved by the trustees on: **12 January 2026**
Brothers of the Sacred Heart **14**
**Independent auditor’s report** Year to 30 June 2025
## **Independent auditor’s report to the trustees of the Brothers of the Sacred Heart**
## **Opinion**
We have audited the financial statements of the Brothers of the Sacred Heart (the ‘charitable company’) for the year ended 30 June 2025 which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:
- ♦ give a true and fair view of the state of the charitable company’s affairs as at 30 June 2025 and of its income and expenditure for the year then ended;
- ♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- ♦ have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
Brothers of the Sacred Heart **15**
**Independent auditor’s report** Year to 30 June 2025
## **Other information**
The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify 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 the audit:
- ♦ the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- ♦ the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.
## **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 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:
- ♦ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- ♦ the financial statements are not in agreement with the accounting records and returns; or
- ♦ certain disclosures of trustees’ remuneration specified by law are not made; or
- ♦ we have not received all the information and explanations we require for our audit; or
- ♦ the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
Brothers of the Sacred Heart **16**
**Independent auditor’s report** Year to 30 June 2025
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on pages 11 and 12, 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.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- ♦ The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- ♦ We identified the laws and regulations applicable to the charitable company through discussions with management and trustees and from our knowledge and experience of the sector. We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charitable company. These included but were not limited to 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006,
Brothers of the Sacred Heart **17**
## **Independent auditor’s report** Year to 30 June 2025
## **Auditor’s responsibilities for the audit of the financial statements** (continued)
- ♦ We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and those charged with governance and review of minutes of trustees’ meetings.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- ♦ Making enquiries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- ♦ Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- ♦ Performed analytical procedures to identify any unusual or unexpected relationships;
- ♦ Tested and reviewed journal entries to identify unusual transactions;
- ♦ Carried out substantive testing of expenditure including the authorisation thereof;
- ♦ Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- ♦ Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- ♦ Agreeing financial statement disclosures to underlying supporting documentation;
- ♦ Reading the minutes of meetings of the trustee board; and
- ♦ Enquiring of as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Brothers of the Sacred Heart **18**
## **Independent auditor’s report** Year to 30 June 2025
## **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.
Peter Mackereth (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
13 January 2026
Brothers of the Sacred Heart **19**
## **Statement of financial activities** Year to 30 June 2025 **(including an income and expenditure account)**
|Notes|
**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|**Income from:**
Donations
1
Charitable activities
2
Investments and interest receivable
3
Other sources
. Miscellaneous income
**Total income**
**Expenditure on:**
Raising funds
. Investment manager fees
Charitable activities
. Support of members of the Congregation
and their ministry
4
. Donations
6
**Total expenditure**
**Net income (expenditure) before (losses)**
**gains on investments**
7
Exchange (losses) gains on cash held by
investment managers
Net gains on the revaluation and disposal
of listed investments
11
**Net movement in funds**
**Reconciliation of funds**:
Fund balances brought forward at
1 July 2024
**Fund balances carried forward at**
**30 June 2025**|
**92,006**
**267,657**
**94,743**
**5,002**|**100**
**—**
**21,953**
**—**|**92,106**
**267,657**
**116,696**
**5,002**|95,873
245,837
98,269
5,268|1,400
—
23,014
—|97,273
245,837
121,283
5,268|
||**459,408**|**22,053**|**481,461**|445,247|24,414|469,661|
||**(822)**
**205,017**
**150,111**|**(205)**
**—**
**39,406**|**(1,027)**
**205,017**
**189,517**|(164)
212,894
132,454|(79)
—
45,575|(243)
212,894
178,029|
||**354,306**|**39,201**|**393,507**|345,184|45,496|390,680|
||
**105,102**
**(624)**
**24,961**|**(17,148)**
**—**
**5,239**|**87,954**
**(624)**
**30,200**|100,063
(1,294)
271,444|(21,082)
—
71,922|78,981
(1,294)
343,366|
||**129,439**
**4,978,727**|**(11,909)**
**800,007**|**117,530**
**5,778,734**|370,213
4,608,514|50,840
749,167|421,053
5,357,681|
||**5,108,166**|**788,098**|**5,896,264**|4,978,727|800,007|5,778,734|
All of the charitable company’s activities derived from continuing operations during the above two financial periods.
All recognised gains and losses are included in the above statement of financial activities.
Brothers of the Sacred Heart **20**
**Balance sheet** 30 June 2025
|Notes|
**2025**
**£**|**2025**
**£**|2024
£|2024
£|
|---|---|---|---|---|
|**Fixed assets:**
Tangible assets
10
Investments
. Listed investments and cash held
for re-investment
11
. Programme related investment
12
**Current assets:**
Debtors
13
Cash at bank and in hand
**Liabilities:**
Creditors: amounts falling due
within one year
14
**Net current assets**
**Total net assets**
**The funds of the charitable**
**company:**
Unrestricted funds
. Tangible fixed assets fund
15
. Programme related investment fund
16
. Designated funds
17
. General fund
Restricted funds
18|
**15,614**
**449,707**|**1,391,430**
**3,854,651**
**215,853**|37,229
260,682|1,397,235
3,894,229
215,853|
|||**5,461,934**
**434,330**||5,507,317
271,417|
||**465,321**
**(30,991)**||297,911
(26,494)||
||
||||
|||**5,896,264**||5,778,734|
|||**1,391,430**
**215,853**
**2,273,767**
**1,227,115**||1,397,235
215,853
2,166,633
1,199,006|
|||**5,108,165**
**788,099**||4,978,727
800,007|
|||**5,896,264**||5,778,734|
Approved by the trustees and signed on their behalf by:
## **Brother Ronald Hingle SC**
Trustee
## Approved on: **12 January 2026**
Company Registration Number 07897531 (England and Wales)
Brothers of the Sacred Heart **21**
## **Statement of cash flows** Year to 30 June 2025
|Notes|
**2025**
**£**|2024
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash used in operating activities
A
**Cash flows from investing activities:**
Investment income – listed investments and interest
Investment income – programme related investment
Purchase of tangible fixed assets
Capital expenditure on PRI
Proceeds from the disposal of investments
Purchase of investments
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 July 2024**
Change in cash and cash equivalents due to exchange rate
movements
**Cash and cash equivalents at 30 June 2025**
B|
**34,791**|(5,114)|
||**104,336**
**12,360**
**(27,920)**
**(3,696)**
**79,406**
**(15,049)**|109,283
12,000
—
—
73,000
(120,000)|
||**149,437**|74,283|
||**184,228**
**342,973**
**(624)**|69,169
275,098
(1,294)|
||
**526,577**|342,973|
## **Notes to the statement of cash flows for the year to 30 June 2025.**
## **A Reconciliation of net movement in funds to used in operating activities**
||**2025**
**£**
**117,530**
**33,725**
**(30,200)**
**(116,696)**
**3,696**
**624**
**21,615**
**4,497**
**34,791**|2024
£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Depreciation
Gains on investments
Investment income
Capital expenditure on PRI
Exchange losses (gains)
Decrease (increase) in debtors
Increase (decrease) in creditors
**Net cash used in operating activities**||421,053
28,875
(343,366)
(121,283)
—
1,294
2,039
6,274|
|||(5,114)|
## **B Analysis of changes in cash and cash equivalents**
||At 1 July
2024
£|Cash flows
£|Exchange
gains
£|**At 30**
**June 2025**
**£**|
|---|---|---|---|---|
|Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|260,682
82,291|189,025
(4,797)|—
(624)|**449,707**
**76,870**|
||342,973|184,228|(624)|**526,577**|
No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).
Brothers of the Sacred Heart **22**
**Principal accounting policies** 30 June 2025
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
## **Basis of preparation**
These financial statements have been prepared for the year to 30 June 2025 with comparative information provided in respect to the year to 30 June 2024.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Under a Uniting Direction issued by the Charity Commission under section 12(1) of the Charities Act 2011, this charity (i.e. Brothers of the Sacred Heart (Charity Registration Number 1146264)) is the reporting charity and its related charity, The Coindre Bursary Trust (Charity Registration Number 1146264-1) is the linked charity. The effect of the Uniting Direction for accountancy and reporting purposes is that a single set of accounts is presented for the two charities combined with The Coindre Bursary Trust shown as a restricted fund. Under the Uniting Direction, both charities continue to exist as independent entities in all other respects.
The charitable company constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
## **Critical accounting estimates and areas of judgement**
Preparation of the financial statements requires the trustees to make significant judgements and estimates.
The items in the financial statements where these judgements and estimates have been made include:
- ♦ estimating the useful economic life of tangible fixed assets for the purposes of determining the annual depreciation charge;
- ♦ estimating the value of land included as part of land and buildings to enable the calculation of depreciation on building costs alone; and
- ♦ determining the value of designated funds needed at the year end, in particular in respect to the assumptions made in determining the value of the retirement fund.
Brothers of the Sacred Heart **23**
**Principal accounting policies** 30 June 2025
## **Assessment of going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.
The charity’s investment income may be affected by the continuing volatility in listed investments markets due to the ongoing macroeconomic and geopolitical instabilities. Inflation has meant that costs have increased, although the overall impact is expected to be immaterial. The trustees will continue to keep income (particularly that from St Columba’s College and Preparatory School) and expenditure under review but do not anticipate that the impact there will be any material impact on the charity’ finances or impact on the charity’s going concern.
With regard to the next accounting period, the year ending 30 June 2026, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment market. As noted above, this is particularly relevant at the current time with political and economic uncertainties.
## **Income recognition**
Income is recognised in the period in which the charitable company has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Income comprises donations, legacies investment income and a recharge from associated schools.
Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charitable company has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charitable company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probable that those conditions will be fulfilled in the reporting period.
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
In accordance with the Charities SORP FRS 102 volunteer time is not recognised.
Income from charitable activities consists of a recharge from associated schools and is recognised to the extent that it is probable that economic benefits will flow to the charitable company and the income is capable of financial measurement. It is measured at fair value of the consideration received or receivable, excluding any relevant discounts or value added tax.
Brothers of the Sacred Heart **24**
**Principal accounting policies** 30 June 2025
## **Income recognition** (continued)
Investment income is recognised once the dividend or equivalent has been declared and notification has been received of the amount due.
Income derived from the letting of the charity’s programme related investment property is recognised in the period to which the tenancy relates.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank.
All other income is recognised to the extent that it is probable that the economic benefits will flow to the charitable company and the revenue can be measured reliably. It is measured at fair value and accounted for on an accruals basis.
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
- ♦ Expenditure on raising funds includes all expenditure associated with raising funds for the charitable company. This includes investment management fees.
- ♦ Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charitable company through the provision of its charitable activities. Such costs include charitable donations and grants, costs in respect to the support of members of the Congregation and enabling their ministry, including governance costs.
Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.
All expenditure is stated inclusive of irrecoverable VAT.
Brothers of the Sacred Heart **25**
**Principal accounting policies** 30 June 2025
## **Tangible fixed assets**
All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.
- a. Freehold land and buildings
Freehold land and buildings purchased on or prior to 1 July 2015 are included in the financial statements at a valuation determined by the trustees as at that date with professional assistance, based on market value for existing use. As permitted by FRS 102, with effect from 1 July 2015 the value assigned to freehold land and buildings is now deemed its cost. Land and buildings purchased on or after 1 July 2015 are shown on the balance sheet at cost. Freehold land and buildings comprise a large residential convent. Depreciation is provided at 2% per annum on a straight-line basis to write off the building over its estimated useful economic life to the Congregation.
- b. Other tangible fixed assets
Plant and other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives:
- ♦ Furniture, fittings and equipment – 5% to 25% per annum based on cost
- ♦ Motor vehicles – 25% per annum based on cost
Other tangible fixed assets which have been fully depreciated are written out of the financial statements as their net realisable value is considered to be negligible.
## **Listed investments and cash held for re-investment**
Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.
The charitable company does not acquire put options, derivatives or other complex financial instruments.
As noted above the main form of financial risk faced by the charitable company is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.
## **Programme related investments**
Programme related investments include a building owned by the charitable company but used by another organisation for purposes consistent with the charitable company’s objectives. The original cost of the building classified as programme related investment is not known. The value at which the building is included represents expenditure on the building since 2011.
Brothers of the Sacred Heart **26**
**Principal accounting policies** 30 June 2025
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year, if held, are disclosed as short term deposits.
## **Creditors**
Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the charitable company anticipates it will pay to settle the debt.
## **Fund structure**
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor-imposed conditions.
General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charitable company’s charitable objects.
Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.
The tangible fixed assets fund represents the net book value of the charitable company’s tangible fixed assets.
The programme related investment fund represents the value of the charitable company’s programme related investment. This investment comprises land and building owned by the charitable company but used by another charitable and not-for-profit organisation with objectives consistent with those of the charitable company. It is the intention of the trustees that this asset should continue to be used for this purpose until at least December 2026, the date to which the property is leased, and as such the value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.
## **Services provided by members of the Congregation**
For the purposes of these financial statements, no value has been placed on administration and other services provided by the members of the Congregation.
Brothers of the Sacred Heart **27**
**Notes to the financial statements** 30 June 2025
## **1 Income from: Donations and legacies**
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|Pensions and other income of
individual religious received
under deed of covenant
Donations
Legacies|**84,115**
**12,691**
**—**|**—**
**100**
**—**|**84,115**
**12,791**
**—**|85,574
2,899
7,400|—
1,400
—|85,574
4,299
7,400|
||**96,806**|**100**|**96,906**|95,873|1,400|97,273|
## **2 Income from: Charitable activities**
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|Recharge from associated
schools|**267,657**|**—**|**267,657**|245,837|—|245,837|
## **3 Income from: Investments and interest receivable**
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|Income from listed
investments
. UK equities and unitised
funds
Income from programme
related investment
Interest receivable|**81,329**
**12,360**
**1,054**|**21,548**
**—**
**405**|**102,877**
**12,360**
**1,459**|81,301
12,000
4,968|22,392
—
622|103,693
12,000
5,590|
||**94,743**|**21,953**|
**116,696**|98,269|23,014|
121,283|
## **4 Expenditure on: Support of members of the Congregation and their ministry**
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|Premises
Living and personal costs
Support of Brothers in the
USA
Depreciation
Governance (see note 5)
Other support costs
. Professional fees
. Accountancy
. Other|**43,098**
**57,753**
**25,175**
**33,725**
**13,650**
**21,707**
**5,925**
**3,984**|**—**
**—**
**—**
**—**
**—**
**—**
**—**
**—**|**43,098**
**57,753**
**25,175**
**33,725**
**13,650**
**21,707**
**5,925**
**3,984**|37,593
41,108
43,235
28,875
11,250
41,449
4,128
5,256|—
—
—
—
—
—
—
—|37,593
41,108
43,235
28,875
11,250
41,449
4,128
5,256|
||**205,017**|**—**|**205,017**|212,894|—|212,894|
Brothers of the Sacred Heart **28**
## **Notes to the financial statements** 30 June 2025
## **5 Governance**
|**Governance**||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
||**Un-**
**restricted**
**funds**
**£**||**Restricted**
**funds**
**£**|||**2025**
**Total**
**funds**
**£**|Unrestricted
funds
£|||Restricted
funds
£|2024
Total
funds
£|
|Professional fees||**13,650**||**—**||**13,650**||11,250||—|11,250|
|**Donations**||||||**2025**
**Total**
**funds**
**£**|
|Un-
restricted
funds
£|
|Restricted
funds
£|2024
Total
funds
£
39,251
97,303
40,475
1,000
178,029|
|Donation to the
Congregation’s Solidarity
Fund – for onward distribution
to projects for the relief of
poverty and for education.
Donations to the
Congregation’s missions
. Brothers’ Delegation in the
Philippines
Coindre Bursary – to provide
support for students at St
Columba’s College and
Preparatory School
Sundry donations||**39,738**
**95,373**
**—**
**15,000**||**—**
**—**
**39,406**
**—**||**39,738**
**95,373**
**39,406**
**15,000**||39,251
93,203
—
—|
|—
4,100
40,475
1,000||
|||**150,111**||**39,406**||**189,517**||132,454||
45,575||
## **6. Donations**
## **7. Net income (expenditure) before (losses) gains on investments**
This is stated after charging:
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|Auditor’s remuneration
. Current year
. Previous year
Depreciation|11,400
2,250
33,725|**—**
**—**
**—**|**11,400**
**2,250**
**33,725**|11,250
—
28,875|—
—
—|11,250
—
28,875|
## **8. Staff costs, key management personnel and trustees’ remuneration**
The charitable company did not employ any staff during the year (2024 – none).
The key management personnel of the charitable company in charge of directing and controlling, running and operating the charitable company on a day-to-day basis comprise the trustees. They received nil remuneration or reimbursement of expenses in connection with their duties during the year (2024 – £nil).
The charitable company’s trustees are all members of the Congregation. However, as the trustees mostly reside in the US, their living and personal expenses are borne by the Brothers of the Sacred Heart (US Province). Certain expenses are occasionally borne by the charitable company in respect to the general costs of the US Province and these totalled £ nil in 2024 (2024 – £nil). No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2024 – none).
Brothers of the Sacred Heart **29**
**Notes to the financial statements** 30 June 2025
## **9. Taxation**
Brothers of the Sacred Heart is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities or tax on capital gains, as it falls within the various exemptions available to registered charities.
## **10. Tangible fixed assets**
|**Tangible fixed assets**|||||
|---|---|---|---|---|
||Freehold
land and
building
£|Furniture,
fittings
and
equipment
£|Motor
vehicles
£|**Total**
**£**|
|**Cost or deemed cost**
At 1 July 2024
Additions
Disposals
At 30 June 2025
Cost
Deemed cost (2015 valuation)
**Depreciation**
At 1 July 2024
Charge for year
Disposals
At 30 June 2025
**Net book values**
At 30 June 2025
At 30 June 2024|1,606,807
1,170
—|62,094
—
—|24,278
26,750
(11,500)|**1,693,179**
**27,920**
**(11,500)**|
||1,607,977|62,094|39,528|**1,709,599**|
||139,201
1,468,776|62,094
—|39,528
—|**240,823**
**1,468,776**|
||1,607,977|62,094|39,528|**1,709,599**|
||221,825
25,164
—|49,841
2,988
—|24,278
5,573
(11,500)|**295,944**
**33,725**
**(11,500)**|
||246,989|52,829|18,351|**318,169**|
||1,360,988|9,265|21,177|**1,391,430**|
||1,384,982|12,253|—|**1,397,235**|
As permitted under FRS 102, the charitable company has adopted a policy of not revaluing its tangible fixed assets. Tangible fixed assets are stated at cost or deemed cost. Where a valuation has been used in prior periods this has been taken to be deemed cost under the transitional arrangements of FRS 102.
Brothers of the Sacred Heart **30**
**Notes to the financial statements** 30 June 2025
## **11 Listed investments and cash held for re-investment**
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|**Listed investments**
Market value (fair value) at 1
July 2024
Additions at cost
Disposals at book value
. Proceeds
. Net realised gains (losses)
Net unrealised investment
gains
Market value (fair value) at 30
June 2025
**Cash held by investment**
**managers**
Cost of listed investments at
30 June 2025|**3,019,146**
**9,116**|**792,792**
**5,933**|**3,811,938**
**15,049**
**(79,406)**
**278**
**(79,128)**
**29,922**|2,682,702
120,000|738,870
—
(18,000)
710
(17,290)
71,212|3,421,572
120,000|
||**(56,000)**
**1,245**|**(23,406)**
**(967)**||
(55,000)
4,896||(73,000)
5,606|
||**(54,755)**
**23,716**|**(24,373)**
**6,206**||(50,104)
266,548||(67,394)
337,760|
||**2,997,223**
**70,711**|**780,558**
**6,159**|**3,777,781**
**76,870**|3,019,146
76,359|792,792
5,932|3,811,938
82,291|
||**3,067,934**|**786,717**|**3,854,651**|3,095,505|798,724|3,894,229|
||**2,549,184**|**483,967**|**3,033,151**|2,587,009|493,266|3,080,275|
All investments comprise Class A income units in the Sarasin Alpha Endowment Fund. All listed investments held within the Fund were dealt in on recognised stock exchanges.
## **12 Programme related investments**
Programme related investments comprise a property occupied by St Columba's College and Preparatory School, a charitable and not-for-profit organisation, for purposes consistent with the charitable company’s objectives.
||**2025**
**£**|2024
£|
|---|---|---|
|At 1 July 2024 and
at 30 June 2025|**215,853 **|
215,853|
## **13 Debtors**
|**Debtors**|||
|---|---|---|
||**2025**
**£**|2024
£|
|Amounts receivable from St Columba's College and Preparatory School
(note 20)
Other debtors
Prepayments and accrued income|**—**
**15,231**
**383**|26,507
10,351
371|
||**15,614**|37,229|
Brothers of the Sacred Heart **31**
## **Notes to the financial statements** 30 June 2025
## **14 Creditors – amounts falling due within one year**
|**Creditors – amounts falling due within one year**|||
|---|---|---|
||**2025**
**£**|2024
£|
|Expense creditors
Donations payable
Accruals|**3,268**
**12,293**
**15,430**|2,168
11,576
12,750|
||**30,991**|26,494|
## **15 Tangible fixed assets fund**
|**Tangible fixed assets fund**|||
|---|---|---|
||**2025**
**£**|2024
£|
|At 1 July 2024
Net movement in year
At 30 June 2025|**1,397,235**
**(5,805)**|1,426,110
(28,875)|
||**1,391,430**|1,397,235|
The tangible fixed assets fund represents the net book value of the charitable company’s tangible fixed assets and has been set up in recognition of the fact that the assets are required for the day-to-day work of the charitable company and are not available to finance current expenditure or meet contingencies.
## **16 Programme related investment fund**
The programme related investment fund represents the value of the charitable company’s programme related investment. This investment comprises land and buildings owned by the charitable company but used by another charitable and not-for-profit organisation with objectives consistent with those of the charitable company. It is the intention of the trustees that this asset should continue to be used for this purpose until at least 24 December 2026. As such the value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations or part of free reserves.
||**2025**
**£**|2024
£|
|---|---|---|
|At 1 July 2024 and
at 30 June 2025|**215,853**|215,853|
## **17 Designated funds**
The income funds of the charitable company include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
||**At 1 July**
**2024**
**£**|**New**
**designations**
**£**|**At 30 June**
**2025**
**£**|
|---|---|---|---|
|Retirement reserve
Property repairs fund|**2,050,000**
**116,633**|**—**
**107,134**|**2,050,000**
**223,767**|
||**2,166,633**|**107,134**|**2,273,767**|
Brothers of the Sacred Heart **32**
**Notes to the financial statements** 30 June 2025
||At 1 July
2023
£|New
designations
£|At 30 June
2024
£|
|---|---|---|---|
|Retirement reserve
Property repairs fund|2,050,000
66,633|—
50,000|2,050,000
116,633|
||2,116,633|50,000|2,166,633|
## _Retirement reserve_
The trustees have established a retirement reserve, representing monies designated by the trustees to provide for the members of the Congregation in their retirement. It has been calculated using actuarial principles and is reviewed regularly by the trustees in the light of the resources available and those likely to be required.
## _Property repairs fund_
Since 2020-21 the trustees have set aside funds to meet planned expenditure on the Watling House property. Of the £250,000 set aside that year, £183,367 was utilised. Since then further funds have been set aside pending a fully costed schedule of works for the remaining repairs: an additional £50,000 in 2023-24 and a further £107,134 in 2024-25.
## **18 Restricted funds**
The income funds of the charitable company include restricted funds comprising the following unexpended balances of monies held on trusts to be applied for specific purposes:
|**The**
**Coindre**
**Bursary**
**Trust**
**£**|**Other**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|The
Coindre
Bursary
Trust
£|Other
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|
|**798,724**
**21,954**
**(39,201)**
**5,239**|**1,283**
**100**
**—**
**—**|**800,007**
**22,054**
**(39,201)**
**5,239**|744,184
23,014
(40,396)
71,922|4,983
1,400
(5,100)
—|749,167
24,414
(45,496)
71,922|
|**786,716**|**1,383**|**788,099**|798,724|1,283|800,007|
The Coindre Bursary Trust represents the funds of the linked charity which are to be used to provide bursaries at St Columba's College.
Brothers of the Sacred Heart **33**
**Notes to the financial statements** 30 June 2025
## **19 Analysis of net assets between funds**
||**Restricted**
**fund**
**£**|
**General**
**fund**
**£**|**Designated**
**funds**
**£**|
**Tangible**
**fixed**
**assets**
**fund**
**£**|
**Programme**
**related**
**investment**
**fund**
**£**|
**Total**
**2025**
**£**|
|---|---|---|---|---|---|---|
|**Fund balances at 30**
**June 2025 are**
**represented by:**
Tangible fixed assets
Listed investments
Programme related
investments
Net current assets
**Total net assets**|**—**
**786,717**
**—**
**1,382**|
**—**
**1,017,934**
**—**
**209,181**|
**—**
**2,050,000**
**—**
**223,767**|
**1,391,430**
**—**
**—**
**—**|
**—**
**—**
**215,853**
**—**|
**1,391,430**
**3,854,651**
**215,853**
**434,330**|
||**788,099**|
**1,227,115**|
**2,273,767**|
**1,391,430**|
**215,853**|
**5,896,264**|
||Restricted
fund
£|
General
fund
£|Designated
funds
£|
Tangible
fixed assets
fund
£|
Programme
related
investment
fund
£|
Total
2024
£|
|Fund balances at 30
June 2024 are
represented by:
Tangible fixed assets
Listed investments
Programme related
investments
Net current assets
Total net assets|—
792,792
—
7,215|
—
1,051,437
—
147,569|
—
2,050,000
—
116,633|
1,397,235
—
—
—|
—
—
215,853
—|
1,397,235
3,894,229
215,853
271,417|
||800,007|
1,199,006|
2,166,633|
1,397,235|
215,853|
5,778,734|
The total unrealised gains as at 30 June 2025 constitute movements on revaluation of investments and are as follows:
|investments and are|as follows:||||||
|---|---|---|---|---|---|---|
||**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|**Unrealised gains at**
**30 June 2025**
**included above:**
Total unrealised gains
on listed investments
**Reconciliation of**
**movements in**
**unrealised gains**
Unrealised gains at 1
July 2024
Less: in respect of
disposals in the year
Add: net gains arising
on revaluation in the
year
Total unrealised gains
at 30 June 2025|**448,039**|**296,591**|**744,630**|432,137|299,526|731,663|
||**432,137**
**(7,814)**
**23,716**|**299,526**
**(9,141)**
**6,206**|**731,663**
**(16,955)**
**29,922**|168,603
(3,014)
266,548|233,783
(5,469)
71,212|402,386
(8,483)
337,760|
||**448,039**|**296,591**|**744,630**|432,137|299,526|731,663|
Brothers of the Sacred Heart **34**
**Notes to the financial statements** 30 June 2025
## **20 Related party transactions**
## _**St Columba’s College and Preparatory School**_
Brother Ronald Hingle SC, Brother Ivy Leblanc SC and Brother Joseph Holthaus SC, who are trustees of the Brothers of the Sacred Heart, were also trustees of St Columba's College and Preparatory School (the College) during the financial year.
During the year ended 30 June 2025, the charity received income £ 267,657 (2024 - £245,837) from the College in relation to the recharges under the transfer agreement (note 1).
The charity also received income of £58,939 (2024 – £43,759), being stipends due for teaching and other services provided by members of the order during the year, as well as £12,360 (2024 – £12,000) in respect of rental income in relation to the Headmaster’s lodge and restricted donations of £100 (2024 – £1,400) (Notes 1 and 2).
At 30 June 2025, debtors included £ nil (2024 – £26,507) receivable from the College in relation to recharges under the transfer agreement, stipends of brothers and rental income for the programme related investment property (note 13).
The charitable company also reimburses costs in relation to utilities such as gas, electricity, insurance, telephone and food to the College. The amounts reimbursed during the year amounted to £27,009 (2024 – £26,626).
The Coindre Bursary Trust made donations to the College. Donations payable during the year amounted to £ 39,406 (2024 – £40,475) (note 6). A further £15,000 (2024 - £nil) was donated by the charitable company to the College for a new development project.
## _**Other transactions**_
Details of other transactions with trustees are disclosed in note 8.
There are no further related party transactions requiring disclosure (2024 – none).
## **21 Liability of the members**
In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.
Brothers of the Sacred Heart **35**