## **School of Hard Knocks**
## **Annual Report and Financial Statements**
31 March 2025
Company Limited by Guarantee Registration Number 07743730 (England and Wales) Charity Registration Numbers 1147009 (England and Wales) SC046118 (Scotland)
**Contents**
|**Reports**||
|---|---|
|Reference and administrative information|1|
|Trustees’ report|2|
|Independent auditor’s report|12|
|**Financial statements**||
|Statement of financial activities|17|
|Balance sheet|18|
|Statement of cash flows|19|
|Principal accounting policies|20|
|Notes to the financial statements|24|
School of Hard Knocks
**Reference and administrative information**
|**Trustees**|Mr James Cameron|
|---|---|
||Ms Victoria Griffin|
||Mr Mike Francis|
||Ms Yasmine Hafiz|
||Mr Mikel Mellick|
||Mr Neel Sood|
||Ms Kirstin McNutt|
||Mr Nicholas Dent|
|**Chief Executive**|Mr Ken Cowen|
|**Registered office**|Ty Cefn Old Building Unit 4,|
||Rectory Road|
||Cardiff|
||Wales|
||CF5 1QL|
|**Company Registration Number**|07743730|
|**Charity Registration Numbers**|1147009 (England and Wales)|
||SC046118 (Scotland)|
|**Auditor**|Buzzacott Audit LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Solicitors**|Milbank, Tweed, Hadley & McCloy LLP|
||10 Gresham Street|
||London|
||EC2V 7JD|
|**Bankers**|Metro Bank|
||1 Southampton Row|
||London|
||WC1B 5HA|
School of Hard Knocks **1**
**Trustees’ report** 31 March 2025
The Trustees, who are the directors for the purposes of company law, present their statutory report together with the financial statements of School of Hard Knocks for the year to 31 March 2025.
The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of the Companies Act 2006.
The financial statements have been prepared in accordance with the accounting policies set out on pages 20 to 23 of the attached financial statements and comply with the charitable company’s memorandum of association, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
## **Our Aims and objectives**
## _**Purposes and Aims**_
The principal objects of the charity are set out in the charity’s Memorandum of Association:
To assist persons who may have need of support by virtue of poor health, disability, financial hardship or other disadvantage, in particular but not exclusively by the provision of facilities and programmes of physical, educational and other activities as a means of:
- a) advancing in life and by developing skills, capacities and capabilities to enable persons to participate in society as independent, mature and responsible individuals;
- b) advancing education;
- c) advancing physical, mental and emotional health and wellbeing.
## _**Ensuring our work delivers our aims**_
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities.
## **Achievements and Performance**
## _**How our activities deliver public benefit**_
Issues around school attendance, engagement, and exclusions have escalated in recent years. The effects of Covid-19, rising poverty, and overstretched social services are hitting the most vulnerable hardest. In 2023/24, a record 34 million days of learning were lost due to suspensions and unauthorised absence, up from 32 million in 2022/23 and 19 million in 2018/19. Lost learning disproportionately affects pupils growing up in poverty, those with Special Educational Needs (SEN), and those from Gypsy, Roma and Traveller communities. Children on free school meals are more than four times as likely to be suspended, and 45% of all children suspended have SEN.
School of Hard Knocks **2**
**Trustees’ report** 31 March 2025
## **Achievements and Performance** (continued)
## _**How our activities deliver public benefit** (continued)_
Lost learning has a huge impact on young people’s outcomes. Persistent absence and exclusion lead to poorer GCSE attainment, and higher risk of criminal exploitation, unemployment, and mental health difficulties. Councils struggle to cope with the spiralling costs of alternative provision for pupils excluded from, or refusing, school.
It does not need to be this way. Early intervention can equip young people with the tools to engage with learning, safeguard their wellbeing, and achieve in school and later life.
Further, the economic benefits to the country of early intervention that seek to keep young people engaged in school are enormous: New analysis shows that the 2023/24 cohort of permanently excluded pupils will cost the Exchequer an estimated £1.9 billion over their lifetimes. Each child removed permanently from school is projected to cost the state £170,000, due to reduced earnings, increased reliance on welfare, and greater interaction with the criminal justice system.
## _**How we respond**_
School of Hard Knocks’ mission is to support all young people to thrive in secondary education, by changing the experience of pupils who are at risk of exclusion, disruptive or disengaged in school, and are missing out on learning.
We do this through delivering a unique combination of rugby-based sessions, specialist mentoring, and indoor group discussions and activities. 90% of our young participants report feeling more confident and more engaged with school after taking part.
We deliver services via three regional teams in England (across Greater London and Herts), Wales (across Cardiff, Newport SE valleys areas) and Scotland (across Glasgow, Edinburgh and Fife).
School of Hard Knocks work across the UK in areas of high deprivation. Schools refer pupils who are at risk of exclusion, those struggling with chronically low confidence and self-esteem, and those lacking safety or structure at home. Working with a cohort of pupils for an average of two years, our specialist teams deliver a programme of:
All of School of Hard Knocks' activities are rooted in evidence-based practice and develop crucial Social & Emotional Learning skills for young people who are vulnerable. Our model focuses on the “3Cs”:
School of Hard Knocks **3**
**Trustees’ report** 31 March 2025
## **Achievements and Performance** (continued)
## _**How we respond** (continued)_
## _**Confidence:** Self Esteem_
Personal development sessions and rugby activities are designed to build students' confidence and self-esteem. By becoming better at rugby and being involved in a positive environment and team, students gain a sense of achievement and pride, which translates into higher self-esteem. This confidence empowers them to make better decisions and approach challenges with a positive mindset.
## _**Control:** Emotional Regulation & Self Awareness_
Through 1:1 mentoring and physical breakouts (such as tackling and rucking), students learn to manage their emotions and develop self-awareness. These activities help students understand their emotional responses and regulate them effectively. By reflecting on their actions and consequences, students become more aware of their behaviour and learn strategies to control their emotions, leading to better decision-making.
## _**Connection:** Positive relationships_
Teamwork activities during warm-ups and group sessions focus on building positive relationships. By encouraging effective communication and mutual support, students learn the importance of connection and collaboration. These activities foster a sense of cohesion and empathy, helping students understand the impact of their actions on others and promoting positive behaviour.
Decades of experience have shown us that rugby is the ultimate team sport for this purpose. It is inclusive (every gender and body type are welcomed), relies on a high level of interdependence and trust between teammates, and provides continual opportunities to practice emotional self-regulation, courage, and problem-solving.
## _**Our Impact this year**_
School of Hard Knocks has been delivering its programmes for 13 years and currently works with 845 students in 29 schools across the UK. The vast majority of participants report feeling more confident in their abilities (91%); more hopeful about their futures (89%); and more engaged at school (90%). Feedback from school partners and young people shows how this impact translates to visible changes in pupil behaviour and achievements in school.
With a newly appointed Evidence & Impact Manager, School of Hard Knocks has started to more comprehensively track changes to pupil attendance, exclusions, and validated measures of Social & Emotional Learning. This will add additional quantitative data to our evidence base, as well as allowing us to benchmark the programme against other interventions and drive continuous improvement.
## _**Programme changes and 5 year strategy**_
In August ’23 we were approached by Impetus, a Private Equity backed organisation that identifies and supports high potential charities both financially and in terms of ongoing and indepth strategic support.
School of Hard Knocks **4**
**Trustees’ report** 31 March 2025
## **Achievements and Performance** (continued)
## _**Programme changes and 5 year strategy** (continued)_
The first major block of work with Impetus was the ‘Driving Impact’ workshops in May ’24 which led to the decision to end our work amongst adults and focus all of our resources on our schools programmes for the following reasons:
- 1) Since the Covid-19 Pandemic, we have experienced a massive increase in demand for our work in schools and conversely a reduced demand for our work amongst adults.
- 2) The ROI (that is, outcomes against costs of intervention per participant) is much better for our schools participants than it has been for our adult participants.
- 3) There is strong and compelling evidence that earlier and lengthy interventions have the best chance of long-term success.
- 4) Our work in schools enables the best possible evidence based and demonstrable outcomes.
As part of the Impetus partnership, we were extremely fortunate to receive a pro bono partnership with Bain & Company who are a global management consultancy firm. Given a team of four for a period of 12 weeks, we worked intensively to support the development of our 5 year strategic plan. The project began in November ’24 and work to mobilise the plan started immediately upon completion in March ’25 with ‘year one’ officially starting in August ’25.
The highly detailed strategy revolves around five ‘Charter Initiatives’ each of which has a charter ‘owner’. The Senior Leadership Team discuss ongoing implementation on a fortnightly basis. The charters are:
- Standardised School sales and pipeline development
- Strengthened schools results delivery
- Enhanced people proposition
- Fundraising excellence
- Tailored Marketing & Brand strategy.
## _**Fundraising**_
Since March ’23 when we had just one part time fundraiser working on corporate partnerships, we have invested in a larger team that consists of: A Director of Fundraising (currently covered by an Interim Director), a Corporate Partnerships Manager (FT) a Trusts and Grant Manager (PT) and events Co-ordinator (PT) and, serving the wider charity as well as the fundraising team, a Marketing & Communications Manager (FT).
The fundraising environment across the whole sector has been depressed as a consequence of subdued economic growth in the UK and so we deemed the investment into a fundraising team to be of critical importance. After a difficult summer (’24) we are just beginning to feel the positive impact of this investment. With income from school contributions remaining static the challenge for the team to raise sufficient funds and build reserves remains high but the travel is markedly in the right direction.
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**Trustees’ report** 31 March 2025
## **Achievements and Performance** (continued)
## _**Fundraising** (continued)_
Being brought on to the Impetus portfolio was and remains a major boost, with a £100k Per Anum grant agreed for as long as the partnership lasts (initially 2.5 years, but with scope for much longer).
An extremely positive area of growth has been through Corporate fundraising, having secured multiyear partnerships with a wide range of businesses such as the Clarkson’s Group (Shipping), Investec (financial services), Civica (Tech), and Firethorn Trust (property investment).
Our flagship annual fundraising event – ‘The SOHK Long Lunch’ raised ~140k in February ‘25, which is our best single event to date. We now have a full calendar of events including our first SOHK golf day, with over 26 business in attendance and a private dining experience for HNW donors and prospects, with a royal family member in attendance.
In January ’25 we appointed our first Evidence and Impact Manager. This provides us with live data and the opportunity for delivery colleagues to see the trends and make constant adjustments to improve delivery - but it will also provide our fundraising team, plus donors and funders with a far more accurate picture of our Impact. We believe this appointment to be completely transformational for the charity.
## _**Ethical approach to fundraising**_
SOHK is a values-driven charity that conducts its activities in line with the highest ethical standards. The charity uses a mixed funding economy to spread risk and ensure stability. Currently, the main methods for accessing individual donors are fundraising events, personal referrals from ambassadors and social media campaigns targeted at friends and supporters of the charity. This greatly reduces the risk of SOHK inadvertently contacting members of the public, especially vulnerable people, in an unreasonably intrusive or persistent manner. The charity has robust internal policies on data collection and handling, is fully GDPR compliant and has a robust, externally validated complaints procedure. The charity is prepared to refund any donation which is shown to have been gained through unreasonable fundraising, whether advertently or inadvertently. During the year the charity received no complaints in respect of its fundraising activities.
## **Financial review**
SOHK’s Revenue decreased by £173k (11%) compared to the prior year, while expenditure fell by £221k (14%).
The drop in Revenue was largely attributable to the decision to cease Adult services and a reduction in Welsh School delivery teams from 2 to 1. Delivery costs reduced in line with activity, and with a comprehensive organisation review undertaken and implemented to streamline services and move towards a functional structure (as opposed to a regional structure), efficiencies were realised.
## _**Principal funding sources**_
Grant income accounted for 35% of SOHK’s income (2024 - 37%). The principal sources of this were Impetus, Lambeth Council, Garfield Weston and the Wooden Spoon Charity. Donations from individuals accounted for 17%, which Corporate Donations and events each accounting for 13%. Contract income paid by the schools, equated to 13% of our total.
School of Hard Knocks **6**
**Trustees’ report** 31 March 2025
## **Financial review** (continued)
## _**Principal funding sources** (continued)_
At the year end the balance sheet showed total funds of £118,311 (2024- £97,385), none of which were restricted (2024 - £91,387 unrestricted and £5,998 restricted).
## _**Reserves policy**_
The trustees have considered the charity’s need for reserves, for ensuring that resources are managed responsibly, and that decisions are taken with care for the benefit of the organisations’ objectives.
This includes the need of the charity’s to have sufficient free reserves to cover an unexpected loss of income, cash flow shortage, or unforeseen operational cost. The target level of free reserve has been set at 3 months operating cost, sufficient to cover the charities most significant risks. (Based on 2024/25 activity, this equates to £330k)
The free reserves balance increased by £27k in year to £118k as at 31 March 25. Whilst significantly below target, the shortfall has been underwritten through a personal guarantee from a Trustee, whilst the organisation continues to work towards achieving target.
The charity has set a short-term reserves target of £163k (5 weeks cover) to be achieved 2025-26, rising to £606k (10 weeks cover) by 2029-30.
Service developments and growth, which will add to underlying operating costs, shall not be permitted without consideration of the impact on Reserves and consequential risk associated, to ensure no detriment to cover.
## **Going concern**
Our case for support continues to increase with the challenges facing our beneficiaries. This means now more than ever SOHK is needed to offer valuable help to support the young people we work with to allow them to realise their potential.
The Trustees and the Board’s Finance Subcommittee, supported by the Director of Finance, continue to monitor cashflow, meeting quarterly to review the financial position of the charity and each programme, the balance of restricted and unrestricted funds, the balance sheet, profit and loss, and budget variance for the year to date.
On the basis of their assessment of the Charity’s financial position, the Trustees continue to adopt the going concern basis in preparing the financial statements.
## **Plans for Financial Year 2025-2026**
The Trustees aspire not only to sustain current activity, but through the renewed strategic focus on “Delivering Impact” in Schools to grow activity, to increase the number of young people supported. With ongoing support from Impetus, and significant in year input from Bain & Company, we have developed the comprehensive 5 year strategic plan, setting the long term goals and defining the stepping stones (Initiative Charters) to get there.
For 2025-26 the primary Delivery objectives encompass;
- i. the further development of evidence based practice, supported by the new Evidence and Impact Manager role (created 2024-25),
School of Hard Knocks **7**
**Trustees’ report** 31 March 2025
## **Plans for Financial Year 2025-2026** (continued)
- ii. Re-focus on building a footprint in Wales
- iii. Expansion to include a third team in London before the end of the Financial year
In addition to the above, non-delivery staff objectives include;
- a. Aligning delivery with areas of greatest need
- b. Enhancing our people proposition
- c. Optimise Marketing, Branding and communication strategies
- d. Delivering Fundraising excellence.
As well as generating revenue, the trustees recognise the need to continue our cost control processes and the continuation of the Board’s Finance Subcommittee. The charity aims to deliver a surplus of not less than £45,000 in the 2025-2026 financial year to meet our shortterm reserves target of £163,000.
## **Structure, Governance and Management**
## _**Governing document**_
The organisation is a charitable company limited by guarantee, incorporated on 17 August 2011. It is registered with the Charity Commission, charity number 1147009. The charity was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
The charity registered with OSCR, the Scottish Charity Regulator, on 9 November 2015, charity number SC046118.
## _**Recruitment and appointment of trustees**_
The directors of the company are also charity trustees for the purposes of charity law and Members for the purposes of the Articles of Association. The management of the charity is the responsibility of the Trustees who are elected every three years, for three-year terms, under the terms of the Articles of Association. The charity is managed by the trustees via periodic Board meetings and the day-to-day operation of the Charity is delegated by the Trustees to Mr. Ken Cowen, the Chief Executive Officer.
The Trustees review each year the skills and experience of the Board of Trustees and determine the need to appoint further trustees.
The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.
## _**Key management personnel**_
The key management personnel of the charity in charge of directing, controlling, running, and operating the charity on a day-to-day basis comprise the Trustees (who are not remunerated), the Chief Executive and his Leadership Team.
Their remuneration is set annually by the Board, considering individual performance, the performance of the Charity as a whole, and the financial outlook of the Charity. This process is informed by SOHK’s Performance & Development Reviews, which are conducted by line managers with all staff and by the Chair of Trustees for the CEO.
School of Hard Knocks **8**
**Trustees’ report** 31 March 2025
## **Structure, Governance and Management** (continued)
## _**Employee involvement and employment of the disabled**_
Employees have been consulted on issues of concern to them by means of regular staff meetings and have been kept informed on specific matters directly by management. The charity has implemented a number of policies in relation to all aspects of personnel matters:
- Equal opportunities policy
- Volunteers’ policy
- Health and safety policy.
In accordance with the charity’s equal opportunities policy, the charity has established fair employment practices in recruitment, selection, retention, and training of disabled staff. Full details of these policies are available from the charity’s offices.
## _**Risk management**_
The trustees conduct an annual review of the major risks to which the charity is exposed. A risk register has been established and is updated annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, and clients.
SOHK’s risk register scores risks for their probability and severity, to give an unmitigated risk score. Mitigation is then put in place and the risk is re-evaluated. The charity’s risk register shows the biggest unmitigated risks to the charity to be the following. The mitigation is also included:
- Sporting activity / injuries – Every delivery team has a qualified first aider and first aid kit to hand, and all frontline work has its own standalone risk assessment. The charity holds specific public liability and employers’ liability insurance for its activities, and coaches are required to hold £5m in public liability cover personally. All coaching involves warmups, clearly marked pitches which have been checked for obstructions and hazards and approved equipment. All activities are clearly explained, and no one is forced to participate. The charity has clear Health and Safety Policy which is rigorously adhered to. Charity keeps participant disclaimers in perpetuity.
- Loss of key staff (temporary or permanent) – The charity has a shared drive with nonconfidential files, which can be accessed by all staff. The charity has a financial process document and living delivery manual. All line managers of departing staff are required to steward a handover process to successors. Staff who are made redundant are given paid extension to oversee handover of materials. The charity's reserves policy includes funds for temporary staff to cover sickness, maternity for key staff members. The charity has a staff succession plan assessing roles criticality and impact of individuals. A comprehensive staff wellbeing policy is in place with ongoing refinement. We now retain a counselling service for staff, via our HR support.
School of Hard Knocks **9**
**Trustees’ report** 31 March 2025
## **Structure, Governance and Management** (continued)
## _**Risk management** (continued)_
- Reserve’s Policy – Our reserves policy is updated annually to account for the current financial position and costings, with a goal to consistently maintain our short-term reserve target. While our cashflow requires strict management, the Director of Finance forecasts any cashflow shortages and remedial actions needed to the CEO and Trustees.
- Illegal activity by the charity (intentional or unintentional). The charity is advised by Milbank on a pro bono basis. Clear policies are in place for all areas of charitable activity and line managers ensure that these are adhered to.
- Failure to meet targets on delivery income- The charity realises given the current financial position and cost of living crisis, the charity must accept some risk within our fundraising landscape. A Director of Fundraising is now in place who will lead and further build a team that will ensure sustainability and growth - that said, the Trustees along with the senior leadership are prepared to adapt delivery dependent on the funding secured.
## **Trustees' Responsibilities Statement**
The Trustees (who are also directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial 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. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgements and accounting 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation; and
- declare any conflicts of interest under s175 of the Companies Act 2006.
School of Hard Knocks **10**
**Trustees’ report** 31 March 2025
## **Trustees' Responsibilities Statement** (continued)
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, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 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 charity’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 charity’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.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Approved by the Trustees and signed on their behalf by:
School of Hard Knocks **11**
**Independent auditor’s report** Year to 31 March 2025
## **Independent auditor’s report to the trustees and members of School of Hard Knocks**
## **Opinion**
We have audited the financial statements of School of Hard Knocks (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the 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 31 March 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
School of Hard Knocks **12**
**Independent auditor’s report** Year to 31 March 2025
## **Other information** (continued)
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
- proper and 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.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, 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.
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**Independent auditor’s report** Year to 31 March 2025
## **Responsibilities of trustees** (continued)
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:
## _**How the audit was considered capable of detecting irregularities including fraud**_
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 charity through discussions with management and trustees and from our knowledge and experience of the charity 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 charity. These included but were not limited to the Companies Act 2006; the Charities Act 2011; the Charities Accounts Scotland Regulations 2006; Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102), Safeguarding Regulations, GDPR, fundraising regulations; and
- We assess the extent of compliance with laws and regulations identified above by making enquiries of management and representatives of the trustees and review of the minutes of trustees’ meetings.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by:
- Making enquiries of management and representatives of the 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.
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**Independent auditor’s report** Year to 31 March 2025
## **Auditor’s responsibilities for the audit of the financial statements** (continued)
_**How the audit was considered capable of detecting irregularities including fraud** (continued)_
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;
- Tested the authorisation of expenditure;
- Tested the implementation of financial controls;
- 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 trustees; 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
School of Hard Knocks **15**
**Independent auditor’s report** Year to 31 March 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 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 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.
Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
Date: 12 August 2025
Buzzacott Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
School of Hard Knocks **16**
**Statement of financial activities** (incorporating an Income and Expenditure Account) Year to 31 March 2025
|Notes|**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£|2024
Total
funds
£|
|---|---|---|---|---|---|---|
|**_Income and expenditure_**
**Income from:**
Donations
1
Other trading activities
2
Charitable activities
. Provision of training courses
3
Interest receivable
**Total income**
**Expenditure on:**
Raising funds
4
Charitable activities
. Provision of training courses
5
**Total expenditure**
**Net income (expenditure)**
**Net movement in funds for the**
**year**
**Reconciliation of funds:**
Fund balances brought forward
at 1 April 2024
**Fund balances carried**
**forward at 31 March 2025**
16|**375,693**
**215,670**
**377,733**
**325**|
**105,054**
—
**270,619**
—|
**480,747**
**215,670**
**648,352**
**325**|349,336
149,839
361,739
172|22,710
—
634,436
—|372,046
149,839
996,175
172|
||**969,421**|
**375,673**|**1,345,094**|861,086|657,146|1,518,232|
||**229,559**
**712,938**|
**35,326**
**346,345**|
**264,885**
**1,059,283**|112,585
777,322|39,377
616,338|151,962
1,393,660|
||**942,497**|
**381,671**|**1,324,168**|889,907|655,715|1,545,622|
||**26,924**|
**(5,998)**|
**20,926**
|(28,821)|1,431|(27,390)|
||**26,924**
**91,387**|
**(5,998)**
**5,998**|
**20,926**
**97,385**|(28,821)
120,208|1,431
4,567|(27,390)
124,775|
||**118,311**|
—|
**118,311**|91,387|5,998|97,385|
All of the charity’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.
School of Hard Knocks **17**
**Balance sheet** 31 March 2025
|||**2025**|**2025**|2024|2024|
|---|---|---|---|---|---|
||Notes|**£**|**£**|£|£|
|**Fixed assets**||||||
|Tangible assets|12||**40**||471|
|**Current assets**||||||
|Debtors|13|**171,203**||21,900||
|Cash at bank and in hand||**102,620**||209,635||
|||**273,823**||231,535||
|**Liabilities**||||||
|Creditors: amounts falling due||||||
|within one year|14|**(155,552)**||(134,621)||
|**Net current assets**|||**118,271**||96,914|
|**Total net assets**|||**118,311**||97,385|
|**The funds of the charity:**||||||
|Unrestricted funds||||||
|. General fund|17||**118,311**||91,387|
|Restricted funds|17||—||5,998|
|**Total charity funds**|||**118,311**||97,385|
The financial statements have been prepared in accordance with the small companies exemptions provided by section 415A of the Companies Act 2006.
Approved by the trustees and signed on their behalf by:
Company Registration Number: 07743730 (England and Wales)
Charity Registration Numbers: 1147009 (England and Wales) and SC046110 (Scotland)
School of Hard Knocks **18**
**Statement of cash flows** Year to 31 March 2025
|Notes|**2025**
**£**|2024
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash (used in) provided by operating activities
A
**Cash flows from investing activities:**
Purchase of tangible fixed assets
Net cash used in investing activities
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 April 2024**
B
**Cash and cash equivalents at 31 March 2025**
B|
**(107,016) **|162,819|
||
—|—|
||—
**(107,016)**
**209,635**
|—
162,819
46,816|
||**102,619**|209,635|
**Notes to the statement of cash flows for the year to 31 March 2025.**
## **A Reconciliation of net movement in funds to net cash used in operating activities**
||**2025**
**£**|2024
£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Depreciation charge
(Increase)/decrease in debtors
Increase creditors
**Net cash(used in) provided by operating activities**|**20,926**
**431**
**(164,882)**
**36,509**|(27,390)
432
188,576
1,201|
||**(107,016)**|162,819|
## **B Analysis of changes in cash and cash equivalents**
||As at 31
March
2024
£|Cash
flows
£|**As at 31**
**March**
**2025**
**£**|
|---|---|---|---|
|Cash at bank and in hand
**Total cash and cash equivalents**|209,635|(102,619)|**102,630**|
||209,635|(102,619)|**102,630**|
No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.
School of Hard Knocks **19**
**Principal accounting policies** Year to 31 March 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 31 March 2025, with comparative information given in respect to the year ended 31 March 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 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), the Charities Act 2011, Charities Accounts (Scotland) Regulations 2006 and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
## **Assessment of going concern**
The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.
The trustees and senior staff continue to work to strengthen the organisation, addressing areas of risk. This has included the development of a comprehensive and robust 5 year strategy to grow and develop activities in a planned an managed way. Whilst the current year surplus was relatively modest (£21k), it is a positive to see reserves increasing at a time when activity declined. Expenditure remains strictly controlled, with the organisation demonstrating agility in year to rapidly adapt appropriately to changes in service provision. Meanwhile, the strategic decision to develop a dedicated Fundraising Team is starting to bear fruits, enabling the organisation to approve further investments and developments in line with the agreed Strategic Plan.
The trustees continue to monitor and maintain sufficient cashflow and the Board’s Finance Subcommittee continues to meet quarterly to review the financial position of the charity and each programme, the balance of restricted and unrestricted funds, the balance sheet, profit and loss, and budget variance for the year to date. The trustees, along with the leadership team, also continue to develop alternative delivery models to ensure the charity can adapt no matter the current financial climate.
On the basis of their assessment of the Charity’s financial position the Trustees continue to adopt the going concern basis in preparing the financial statements.
School of Hard Knocks **20**
**Principal accounting policies** Year to 31 March 2025
## **Critical accounting estimates and areas of judgement**
Preparation of the financial statements requires the trustees and management 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 purpose of determining the annual depreciation charge;
- The allocation of staff costs between charitable expenditure and raising funds.
- estimating the value of gifts in kind received; and
- estimating future inflows and outflows for the purpose of assessing going concern.
## **Income recognition**
Income is recognised in the period in which the charity 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 and grants, fee income, sponsorship, income from events and investment income.
Donations are recognised when the charity 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 charity 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 charity and it is probable that those conditions will be fulfilled in the reporting period.
Donated services provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided to the charity. An equivalent amount is included as expenditure.
Donated services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services of equivalent economic benefit on the open market.
In accordance with the Charities SORP FRS 102 volunteer time is not recognised.
Grants and fee income from government and other agencies have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding. Income is deferred when the charity has not satisfied the requirements for entitlement or when the donor has specified funds for use in a future accounting period. Sponsorship income is receivable on an annual basis in recognition of the charity’s participation in certain activities.
School of Hard Knocks **21**
**Principal accounting policies** Year to 31 March 2025
## **Income recognition** (continued)
Fee income is recognised once the charity has fully met all performance criteria as specified in the relevant contract.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity 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 charity. This includes staff costs associated with fundraising and the costs of fundraising events.
- Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include the delivery of training courses, direct and support costs including governance costs.
All expenditure is stated inclusive of irrecoverable VAT.
## **Allocation of support and governance costs**
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of project management carried out at Headquarters, personnel development, financial procedures, provision of office services and equipment and a suitable working environment.
Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice. Governance costs are allocated to the charity’s sole activity, provision of training courses.
Support costs are allocated to the charity’s activity, provision of training courses, and fundraising.
## **Taxation**
The company is a charity under the Finance Act 2010 (schedule 6, paragraph 1) definition. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by the Corporation Tax Act 2010 (part 11, chapter 3) or the Taxation of Chargeable Gains Act 1992 (section 256), to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period.
School of Hard Knocks **22**
**Principal accounting policies** Year to 31 March 2025
## **Tangible fixed assets and depreciation**
All assets costing more than £1,000 are capitalised.
Tangible assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful economic lives on the following basis:
Computer equipment 33.33% straight line Schools equipment 33.33% straight line Outdoor equipment 33.33% straight line
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
## **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.
## **Creditors and provisions**
Creditors and provisions 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 and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
## **Funds**
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.
The general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the School of Hard Knock’s charitable objects.
## **Pension costs**
Contributions in respect of the charity’s defined contribution scheme are charged to the statement of financial activities when they are payable to the scheme.
School of Hard Knocks **23**
**Notes to the financial statements** Year to 31 March 2025
DRAFT
## **1 Income from donations**
|**Income from donations**||||
|---|---|---|---|
|||||
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**|
|Individuals
Corporate donations
Gifts in Kind
**2025 Total funds**|**210,622**
**88,631**
**76,440**|**19,717**
**85,337**
_—_|
**230,339**
**173,968**
**76,440**|
||**375,693**|**105,054**|
**480,747**|
|||||
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2024 Total_
_funds_
_£_|
|_Individuals_
_Corporate donations_
_Gifts in Kind_
_2024 Total funds_|_179,366 _
_91,697 _
_78,273 _|
_—_
_22,710_
_—_|_179,366_
_114,407_
_78,273_|
||_349,336 _|
_22,710_|_372,046_|
## **2 Income from other trading activities**
|**Income from other trading activities**||||
|---|---|---|---|
|||||
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**|
|Sponsorship Income
Income from fundraising events
**2025 Total funds**|**41,667**
**174,003**|
_—_
_—_|**41,667**
**174,003**|
||**215,670**|
_—_|**215,670**|
|||_Restricted_
_funds_
_£_|_2024 Total_
_funds_
_£_|
||_Unrestricted_
_funds_
_£_|||
|_Income from fundraising events_
_2024 Total funds_|_149,839 _|
_—_|_149,839_|
||_149,839 _|
_—_|_149,839_|
|**Income from charitable activities**|||**2025 Total**
**funds**
**£**|
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**||
|Grant income
Fee income
**2025 Total funds**|**205,000**
**172,733**|
**270,619**
_—_|
**475,619**
**172,733**|
||**377,733**|
**270,619**|
**648,352**|
||||_2024 Total_
_funds_
_£_|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_||
|_Grant income_
_Fee income_
_2024 Total funds_|_95,697 _
_266,042 _|
_634,436 _
_— _|
_730,133_
_266,042_|
||_361,739 _|
_634,436 _|
_996,175_|
## **3 Income from charitable activities**
School of Hard Knocks **24**
**Notes to the financial statements** Year to 31 March 2025
DRAFT
## **4 Expenditure on raising funds**
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**|
|---|---|---|---|
|Fundraising staff costs (note 9)
Cost of fundraising events
Other fundraising costs
Support costs (note 6)
**2025 Total funds**|**123,569**
**73,663**
**26,509**
**5,818**|
**34,846**
**-**
**6**
**474**|
**158,415**
**73,663**
**26,515**
**6,292**|
||**229,559**|
**35,326**|
**264,885**|
|||||
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2024 Total_
_funds_
_£_|
|_Fundraising staff costs (note 9)_
_Cost of fundraising events_
_Other fundraising costs_
_Support costs (note 6)_
_2024 Total funds_|_46,460_
_43,128_
_—_
_22,997_|
_34,946_
_20_
_—_
_4,411_|_81,406_
_43,148_
_—_
_27,408_|
||_112,585_|
_39,377_|_151,962_|
## **5 Expenditure on charitable activities**
|||||
|---|---|---|---|
|Training courses
Course delivery staff costs (note 9)
Support costs (note 6)
**2025 Total funds**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**
**153,209**
**546,027**
**360,047**
**1,059,283**|
||**70,473**
**282,418**
**360,047**|
**82,736**
**263,609**
_—_||
||**712,938**|
**346,345**||
||_Unrestricted_
_funds_
_£_
_91,798_
_430,848_
_254,676_
_777,322_|
_Restricted_
_funds_
_£_
_137,004_
_417,982_
_61,352_
_616,338_|_2024 Total_
_funds_
_£_|
|_Training courses_
_Course delivery staff costs (note 10)_
_Support costs (note 7)_
2024 Total funds|||_228,802_
_848,830_
_316,028_|
||||
_1,393,660_|
School of Hard Knocks **25**
**Notes to the financial statements** Year to 31 March 2025
DRAFT
## **6 Support costs**
|||||
|---|---|---|---|
|Office and rent costs
Accommodation, travel and subsistence costs
Staff expenses reimbursed
Insurance
Website and promotional material
Consultancy fees
Depreciation
Sundry expenses
Support staff costs (note 10)
Governance costs (note 8)|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**|
||**37,707**
**10,788**
**237**
**6,226**
**5,818**
**56,264**
**432**
**4,388**
**230,056**
**13,949**|
**318**
**156**
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_|
**38,025**
**10,944**
**237**
**6226**
**5,818**
**56,264**
**432**
**4,388**
**230,056**
**13,949**|
||**365,865**|
**474**|
**366,339**|
|||||
|---|---|---|---|
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**
**6,292**
**360,047**
**366,339**|
|Analysis of support costs
. Fundraising costs
. Charitable activities|**5,818**
**360,047**|
**474**
_—_||
||**365,865**|
**474**||
|||||
|---|---|---|---|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2024 Total_
_funds_
_£_|
|_Office and rent costs_
_Communication Cost_
_Accommodation, travel and subsistence costs_
_Staff expenses reimbursed_
_Insurance_
_Website and promotional material_
_Consultancy fees_
_Depreciation_
_Sundry expenses_
_Support staff costs (note 9)_
_Irrecoverable VAT_
_Governance costs (note 7)_|_21,465_
_—_
_8,916_
_583_
_3,642_
_22,997_
_47,124_
_—_
_5,781_
_136,743_
_4,271_
_26,151_|_16,617_
_378_
_1,717_
_110_
_685_
_4,411_
_8,868_
_432_
_1,087_
_25,733_
_804_
_4,921_|_38,082_
_378_
_10,633_
_693_
_4,327_
_27,408_
_55,992_
_432_
_6,868_
_162,476_
_5,075_
_31,072_|
||_277,673_|_65,763_|_343,436_|
|||||
|---|---|---|---|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_|_2024 Total_
_funds_
_£_|
|_Analysis of support costs_
_. Fundraising costs_
_. Charitable activities_|_22,997_
_254,676_|_4,411_
_61,352_|_27,408_
_316,028_|
||_277,673_|_65,763_|_343,436_|
School of Hard Knocks **26**
**Notes to the financial statements** Year to 31 March 2025
## **7 Governance costs**
|**Governance costs**|**Governance costs**|||
|---|---|---|---|
|||||
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2025 Total**
**funds**
**£**|
|Accountancy and audit costs
Other professional fees
**2025 Total funds**|**13,800**
**149**|
_—_
_—_|**13,800**
**149**|
||**13,949**|
_—_|**13,949**|
||||_2024 Total_
_funds_
_£_|
||_Unrestricted_
_funds_
_£_|_Restricted_
_funds_
_£_||
|_Accountancy and audit costs_
_Other professional fees_
_2024 Total funds_|21,044
5,107|3,960
961|25,004
6,068|
||26,151|4,921|31,072|
## **8 Net income (expenditure)**
This is stated after charging:
||**2025 Total**
**funds**
**£**
**934,498**
**432**
**15,000**|2024 Total
funds
£
1,092,712
432
14,000|
|---|---|---|
|Staff costs (note 9)
Depreciation of tangible fixed assets
Auditor’s remuneration
. StatutoryAudit|||
## **9 Staff costs**
Staff costs were as follows:
||**2025**
**£**
**830,326**
**79,702**
**24,470**
**934,498**|2024
£
981,947
82,587
28,178
1,092,712|
|---|---|---|
|Wages and salaries
Social security costs
Pension costs|||
Total staff costs have been allocated between expenditure on raising funds, course delivery, governance and support costs based on the approximate percentage of staff time spent in each area, as follows:
||**2025**
**£**
**158,415**
**546,027**
**230,056**
**934,498**|
2024
£
81,407
848,830
162,476
1,092,713|
|---|---|---|
|Expenditure on raising funds
Course delivery
Support costs|||
School of Hard Knocks **27**
**Notes to the financial statements** Year to 31 March 2025
## **9 Staff costs** (continued)
The average monthly number of employees during the year was as follows:
||**2025**
**No.**|2024
No.
3
29
32|
|---|---|---|
|Management
Operational|**5**
**18**||
||**23**||
One employee received remuneration between £70,000 and £80,000 in the year (2024 - one employee received remuneration between £70,000 and £80,000). Pension contributions of £2,183 (2023 - £2,121) were paid in respect of this employee.
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis expanded during the 2024/25 year to include new roles of Director of Programmes and Director of Fundraising; in addition to the Trustees (who are not remunerated), the Chief Executive, Operations Manager, and Director of Finance. Total remuneration (including taxable benefits, employer's pension contributions and employers national insurance contributions) of the key management personnel consequently increased for the year was £260,517 (2024 - £156,236).
## _**Trustees’ remuneration**_
No trustee received any remuneration for services or reimbursed expenses as a trustee in the current year (2024 - none).
## **11 Taxation**
School of Hard Knocks is a registered Charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
## **12 Tangible fixed assets**
|**Tangible fixed assets**||||
|---|---|---|---|
||Computer
equipment
£|Schools
Equipment
£|**Total**
**£**|
|**Cost**
At 1 April 2024
Disposals
At 31 March 2025
**Depreciation**
At 1 April 2024
Charge for the year
Disposals
At 31 March 2025
**Net book value**
At 31 March 2025
At 31 March 2024|2,824
(2,824)|
1,295
_—_|
**4,119**
**(2,824)**|
||_—_|1,295|**1,295**|
||2,824
_—_
(2,824)|
824
431
_—_|
**3,648**
**431**
**(2,824)**|
||_—_|1,255|
**1,255**|
||_—_|40|
**40**|
||—|471|**471**|
School of Hard Knocks **28**
**Notes to the financial statements** Year to 31 March 2025
## **13 Debtors**
|**Debtors**|||
|---|---|---|
||**2025**
**£**|
2024
£|
|Trade debtors
Prepayments and accrued income
Other debtors|**27,035**
**140,971**
**3,197**|
10,800
11,075
25|
||**171,203**|
21,900|
## **14 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2025**
**£**|2024
£|
|Trade creditors
Other taxation and social security
VAT
Other creditors
Accruals and deferred income|**21,374**
**13,218**
_—_
**6,070**
**114,890**|23,238
20,212
6,564
11,042
73,565|
||**155,552**|134,621|
## **15 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2025**
**£**|2024
£|
|Deferred income brought forward at 1 April 2025
Income deferred in year
Deferred income released in year
Carried forward at 31 March 2025|**51,775**
**90,390**
**(51,775)**|25,000
59,565
(25,000)|
||**90,390**|59,565|
Deferred income relates to income received in 2024/25 for use by the charity in 2025/26, as specified by the donors.
School of Hard Knocks **29**
**Notes to the financial statements** Year to 31 March 2025
## **16 Statement of funds**
|**Statement of funds**||||||
|---|---|---|---|---|---|
||At 1 April
2024
£|
Income
£|
Expenditure
£|
Transfers
£|**At 31**
**March 2025**
**£**|
|**Unrestricted funds**
**Restricted funds**
Charles Hayward
Comic Relief
Fidelity
Improving Lives Glasgow
Restricted
KPE4 Trust
Millenium Stadium Trust
Moondance Foundation
Harrow School
Joan Ainslie Trust
Lambeth Council
Clarkson Foundation
Places Leisure
Transport for Wales
Private Donation
Lennox Hannay Trust
Clarions
SEWSCAP
Baillie Gifford
Wooden Spoon
William Wates
Total funds|91,387|699,422|
(942,497)|_—_|**118,311**|
||1,229
—
—
—
—
4,769
—
—
—
—
—
—
—
—
_—_
_—_
_—_
_—_
_—_
_—_|_—_
15,000
34,852
15,363
12,357
_—_
19,355
10,000
5,000
53,067
21,277
5,000
14,000
19,717
2,000
3,000
48,342
32,702
62,364
2,277|(1,229)
(15,000)
(34,852)
(15,363)
(12,357)
(4,769)
(19,355)
(10,000)
(5,000)
(53,067)
(21,277)
(5,000)
(14,000)
(19,717)
(2,000)
(3,000)
(48,342)
(32,702)
(62,364)
(2,277)|_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_|_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_|
||5,998|375,673|
(381,671)|_—_|_—_|
||**97,385**|**1,345,095**|
**(1,324,168)**|_—_|**118,311**|
||_At 1 April_
_2023_
_£_|
_Income_
_£_|
_Expenditure_
_£_|
_Transfers_
_£_|_At 31_
_March 2024_
_£_|
|_Unrestricted funds_
_Restricted funds_
_Charles Hayward_
_Comic Relief_
_Fidelity Foundation_
_Improving Lives Glasgow_
_ISG Construction_
_KPE4 Trust_
_Lambeth Council_
_Linc Cymru Housing Assoc._
_Millenium Stadium Trust_
_Paul Hamlyn Foundation_
_Quilter Foundation_
_SEWSCAP_
_Transport for Wales_
_Walcot Foundation_
_Wasps Legends_
_Wates Foundation_
_Wooden Spoon_
_Total funds_|_120,208_|_861,086_|_(889,907)_|_—_|_91,387_|
||_796_
_2,500_
_—_
_—_
_—_
_776_
_—_
_—_
_—_
_36_
_402_
_—_
_—_
_5_
_—_
_52_
_—_|_25,000_
_182,316_
_35,345_
_76,185_
_14,000_
_59,000_
_54,522_
_14,000_
_7,500_
_-_
_24,448_
_104,300_
_12,500_
_-_
_25,000_
_6,723_
_16,307_|_(24,567)_
_(184,816)_
_(35,345)_
_(76,185)_
_(14,000)_
_(59,776)_
_(54,522)_
_(14,000)_
_(2,731)_
_(36)_
_(24,850)_
_(104,300)_
_(12,500)_
_(5)_
_(25,000)_
_(6,775)_
_(16,307)_|_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_|_1,229_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_4,769_
_—_
_—_
_—_
_—_
_—_
_—_
_—_
_—_|
||_4,567_|_657,146_|_(655,715)_|_—_|_5,998_|
||_124,775_|_1,518,232_|_(1,545,622)_|_—_|_97,385_|
School of Hard Knocks **30**
**Notes to the financial statements** Year to 31 March 2025
- **16 Statement of funds** (continued)
## **Restricted Funds**
## _**Charles Hayward Foundation**_
Charles Hayward Foundation provided a multi-year grant funding for rugby coaching and behavioural support mentoring for schools in North Hertfordshire.
## _**Comic Relief**_
Comic Relief provided funding for adult courses in Wales for psychotherapy support which ended July 2024.
## _**Fidelity Foundation**_
Fidelity Foundation is provided funding 3 year funding support (2023-26) to enable the hiring and establishment of a Trusts & Grants Manager (part time) and Events Coordinator (part time).
## _**The National Lottery-Improving Lives**_
The National Lottery provided a multi-year grant funding to deliver 6 courses over 2 years in Glasgow ending December 2024, working with unemployed adults with a focus on Roma community and refugee/asylum seekers, breaking down barriers between them and local ‘settled’ population.
## _**KPE4 Trust**_
KPE4 Trust provided grant funding for the 2024/25 academic year to deliver our Scotland Schools programme in Craigroyston High School.
## _**Millenium Stadium Trust**_
Millenium Stadium Trust provided £7.5k to support the SOHK Cymru Schools Festival, reward trips, and participant kit for academic year 2023/24
## _**The Moondance Foundation**_
The Moondance Foundation provided £19.5k of funding towards the cost of delivering our schools programme in Wales.
## _**Harrow School**_
Harrow School provided a £10k grant to support the School of Hard Knocks programme delivery at Hatch End High School.
## _**Joan Ainslie Charitable Trust**_
The Trustees of the Trust continued their valued support of School of Hard Knocks, making a £5k donation towards activities.
## _**Lambeth Council**_
Lambeth Council provided grant funding to SoHK to work with two schools in Lambeth during the 2024/25 academic year.
School of Hard Knocks **31**
**Notes to the financial statements** Year to 31 March 2025
## **16 Statement of funds** (continued)
## _**Clarkson Foundation**_
The Clarkson Foundation provided a grant of £50k towards the cost of Programme delivery in 2 London schools during the 2024/25 academic year, of which £21.3k was utilised in the current financial year, with the balance to be utilised April 25 – July 25.
## _**Places Leisure**_
Places Leisure provided £5k of support to the cost of delivery of the School of Hard Knocks Programme at Castlebrae Community Campus.
## _**Lennox Hannay Trust**_
The Lennox Hannay Charitable Trust, which supports the advancement of health and education, provided a grant of £2k towards School of Hard Knocks’ work.
## _**Clarion Housing Association**_
Supporting delivery in Marriotts and Barnwell Schools, through the provision of £3k of funding.
## _**Baillie Gifford**_
Baillie Gifford provided support towards delivery in schools in Scotland during the 2024/25 academic year.
## _**SEWSCAP**_
SEWSCAP continued their support of School of Hard Knocks through the provision of a grant towards the costs of delivery in Welsh Schools for the 2024/25 academic year.
## _**Transport for Wales**_
Transport for Wales contributed £14k to support our programme delivery in Idris Davies High in Caerphilly.
## _**William Wates**_
William Wates Memorial Trust have given us multi-year grant funding over three years to support our work in Warlingham School in London.
## _**Wooden Spoon Society**_
Wooden Spoon made 2 grants in year, i) funding a full-time coach for our schools programme in Scotland for the two academic years ending 2024/25, and ii) a contribution towards our Schools program in England.
School of Hard Knocks **32**
**Notes to the financial statements** Year to 31 March 2025
## **17 Analysis of net assets between funds**
|**Analysis of net assets between funds**||||
|---|---|---|---|
|
|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**
_—_
**91,403**
**(91,403)**
_—_|
**2025 Total**
**funds**
**£**|
|Tangible fixed assets
Current assets
Creditors due within one year|**40**
**197,998**
**(79,727)**||**40**
**289,401**
**(171,130)**|
||**118,311**||**118,311**|
||_Unrestricted_
_funds_
_£_
_471_
_165,973_
_(75,057)_
_91,387_|_Restricted_
_funds_
_£_
_—_
_65,562_
_(59,565)_
_5,997_|
_2024 Total_
_funds_
_£_|
|||||
|_Tangible fixed assets_
_Current assets_
_Creditors due within one year_|||_471_
_231,535_
_(134,622)_|
||||_97,384_|
## **18 Related party transactions**
During the year various trustees contributed financially to the organisation:
- receiving a cash donation of £1,336 (2024 - £1,200) from trustees,
- supported fundraising events to the value of £12,050 (2024: £5,610) through the purchase of tickets and winning auction bids
- contributed donations in kind in the form of auction prizes with a value of £19,400 (2024 - £15,200) from the trustees.
Additionally, the charity received pro bono services of £55,100 (2024 - £55,992) from Millbank LLP, a law firm of which James Cameron is a partner.
## **19 Gifts in Kind**
We were grateful to receive support in the form of gifts in kind and donated services from related parties, as detailed in note 18 above, which are reflected in the accounts. In addition to this, we fully appreciate the pro-bono work provided by Bain (as detailed page 5) to support the development a comprehensive 5 year strategy for School of Hard Knocks (market value £780k). This input will be transformational and has provided guidance that the charity would not otherwise have been able to afford. The market value has not been as income or expenditure in the accounts.
## **20 Commitments under operating leases**
At 31 March 2025, the total of the charity’s future minimum lease payments (relating to Land & Buildings) under non-cancellable operating leases was as follows:
||**2025**
**£**|2024
£|
|---|---|---|
|Amounts due within one year
Amounts due between two and five years inclusive|**190**
_—_|2,280
190|
||**190**|2,470|
School of Hard Knocks **33**