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2026-03-31-accounts

School of Hard Knocks

Annual Report and Financial Statements

31 March 2026

Company Limited by Guarantee Registration Number 07743730 (England and Wales) Charity Registration Numbers 1147009 (England and Wales) SC046118 (Scotland)

Contents

Reports Reports
Reference and administrative information 1
2
12
Financial statements
Statement of financial activities
 16
Balance sheet 17
Statement of cash flows 18
Principal accounting policies 20
Notes to the financial statements 23

School of Hard Knocks

Reference and administrative information

Trustees Mr James Cameron
Ms Victoria Griffin
Ms Yasmine Hafiz
Mr Mikel Mellick
Mr Neel Sood
Ms Kirstin McNutt
Mr Nicholas Dent
Ms Shaunagh Brown
Mrs Karen Neale (appointed 28 April 2025)
Mr Thomas Walsh (appointed 28 April 2025)
Mr Chris Webb (appointed 21 January 2026)
Mr Mike Francis (resigned 1 Dec 2025)
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 Gibson Dunn & Crutcher LLP
2-4 Temple Avenue
London
EC4Y 0HB
Bankers Metro Bank
1 Southampton Row
London
WC1B 5HA

School of Hard Knocks 1

31 March 2026

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 2026.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and c

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 rustee 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

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:

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 ral guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Achievements and Performance

How our activities deliver public benefit

School attendance and exclusion remain among the most pressing challenges facing young people in England today. Full DfE figures for 24/25 are not available yet, though there are signs of modest improvement - nevertheless the situation remains at crisis levels. Overall absence rates fell slightly to 6.63% in 2024/25, but remain well above the pre-pandemic level of under 5%. More concerningly, the proportion of severely absent pupils continued to rise a red flag for the most vulnerable. In 2023/24 (the most recent full academic year with complete data), suspensions accounted for nearly 1.83 million lost school days though early signs from autumn term 2024/25 suggest suspension rates have begun to ease slightly, even as they remain well above pre-pandemic levels.

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31 March 2026

The impact falls hardest on the most vulnerable. Children on free school meals are permanently excluded at 5 times the rate of their peers. Irish Traveller and Gypsy/Roma pupils have the highest persistent and severe absence rates of any group, continuing trends seen in previous years. Disadvantage, a history of social care, and previous suspension are consistently the biggest risk factors for exclusion.

Persistent absence and exclusion are strongly linked to poorer GCSE outcomes, unemployment, mental health difficulties, and criminal exploitation. According to IPPR analysis, it is estimated that permanently excluded pupils from 2023/24 will cost the Exchequer £1.9 billion across their lifetimes around £170,000 per child through lost earnings, welfare dependency, and criminal justice costs. Early intervention changes this trajectory. By equipping young people with the skills and support to stay engaged in education, we protect their futures and deliver significant longterm benefit to society.

How we respond

Our mission is to keep vulnerable children in early secondary education who have experienced hardship, improve their Social Emotional Learning skills and improve their school engagement. We work with children who are at risk of exclusion, struggling with chronic low confidence, or lacking the stability and safety that most young people take for granted. Schools refer pupils to us, and we typically work alongside them for two academic years.

Our programme is delivered in 29 schools in deprived areas in England, Scotland & Wales, combines three elements that, together, are greater than the sum of their parts: rugby-based sessions, specialist one-to-one mentoring, and the delivery of a SOHK developed class-based curriculum. It's a combination that works 90% of participants report feeling more confident and more engaged with school after taking part.

Everything we do is grounded in evidence-based practice and focused on building the Social and Emotional Learning (SEL) skills that vulnerable young people need most. We call it the 3Cs model:

Confidence

Building self-esteem through achievement. Rugby is a sport where progress is visible and physical, and where belonging to a team creates genuine pride. As young people get better, they feel better and that confidence carries into the classroom and beyond.

Control

Developing emotional regulation and self-awareness. Through one-to-one mentoring and the physical demands of the game the tackles, the rucks, the pressure moments young people learn to understand their emotional responses, reflect on their behaviour, and make better decisions.

Connection

Forming positive relationships. Teamwork is at the heart of everything we do. Group sessions and warm-up activities build communication, empathy and mutual support helping young

School of Hard Knocks 3

31 March 2026

people understand the impact their actions have on others and fostering a genuine sense of belonging.

Decades of experience have convinced us that rugby is uniquely suited to this work. It is radically inclusive welcoming every gender and body type. It demands a level of trust and interdependence between teammates that few other sports can match. And it provides constant, real-time opportunities to practise the very things our young people need to develop: courage, emotional self-regulation, and problem-solving under pressure.

Our Impact this year

School of Hard Knocks has been delivering its programmes for 14 years and currently works with 877 students in 29 schools across the UK.

One of the key things that we measure at SOHK is the development of SEL (Social, Emotional Learning) skills which are strongly linked to better life outcomes and contribute to higher academic performance, improved mental health and stronger social connections.

We use two surveys that most directly link to our Three Cs: a) The Rosenberg self-esteem scale and b) the Emotional Regulation Questionnaire Short form (ERQ-s). Our outcomes should be viewed in the context of school wellbeing trends which tend to decline during early secondary years (one study found that 79% of pupil s subjective wellbeing scores fell from ages 11-14).

In 2024/25:

Programme and 5 year strategy

As part of our partnership with Impetus we were extremely fortunate to work with Bain & Company to help shape our ambitious 5 year plan, covering 2025/26-2029/30. We defined three strategic goals and five core commitments that will enable us to strengthen and grow our schools pipeline, build the best team, level up our fundraising mission and extend our reach and impact.

Strategic Goals:

Scale: Reach ~1500-2500 children annually, operating in 55-85 schools by 2030

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Commitments:

Fundraising

The current fundraising landscape in the UK continues to be challenging with total charitable donations falling to ~£14 billion in 2025, down from £15.4 billion in 2024 (Chartered Institute of Fundraising CIF). Internally, this past year for SOHK has also been challenging with our fundraising team reduced by 60% for large parts of 2025 due to maternity leave.

The team continues to develop and strengthen, with the addition of experienced fundraising staff, and the contiuous improvement of the materials, practices and support given.

live data and the opportunity for delivery colleagues to see the trends and make constant adjustments to improve delivery, and also provide our fundraising team, plus donors and funders with a far more accurate picture of our impact.

Additionally, the fundraising team is benefiting from the ongoing work to optimise marketing, branding and communication strategies, raising the profile and awareness of the work we do and the difference we can make.

Although growth has been slower than hoped, we are pleased that we have ended what has been a disrupted year with modest fundraising growth. We have had a great year of fundraising events with our largest and most profitable long lunch to date in a new venue, our inaugural Golf Day and a private dinner hosted by Zara Phillips. We have put a lot of work into significantly improving our trusts and grants function with strong processes in place to ensure high quality and timely reporting to funders.

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.

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31 March 2026

Financial review

revenue rose by £146k (11%) to £1,491k compared to the prior year, while expenditure rose by £106k (8%) to £1,430k, to provide an overall surplus of £61k (2025 £21k surplus).

This growth in income was driven by a number of events run in support of SoHK. Delivery costs fell £82k, in line with expectations due to the cessation of adult services and the full year impact of prior year restructuring. Conversely Support Service costs rose £131k, and Fundraising £57k, as the charity implements its 5 year strategy to deliver growth and sustainability, including the creation of specific posts to better support Delivery Teams and Fundraising activities.

Principal funding sources

Grant income accounted for 29 (2025 - 35%). The principal sources of this were Impetus, SEWSCAP, Rocco Charitable Trust, Fidelity Foundation and the Wooden Spoon Charity.

Events contributed 26% (2025 17%) included Long Lunch, Golf Event, Havant RFC bike ride, and City Showdown Fight Night, along with participation in an Ultra Marathon and several half marathons.

Donations from individuals accounted for 13% (2025 17%), and Corporate donations 14% (2025 16%). Contract income paid by the schools, equated to 17% (13%) of our total.

At the year end the balance sheet showed total funds of £179,043 (2025- £118,311), none of which were restricted (2025 - £118,311 unrestricted).

Reserves policy

The trustees have considered the C , for ensuring that resources are managed responsibly, and that decisions are taken with care for the benefit of the organisation s objectives.

This includes the need for the Charity to have sufficient free reserves to cover an unexpected loss of income, cash flow shortage, or unforeseen operational cost. The minimum target level of free reserve has been set at 3 months operating cost, sufficient to cover the charities most significant risks (Based on 2025/26 activity, this equates to £358k).

Although currently operating below target, the Trustees are committed to addressing this in the short to medium term (by 2030 latest). In the interim, the charity holds a formal a personal guarantee from a Trustee to bridge the gap, fully mitigating the risk of any shortfall by providing 13 weeks cover.

In year the free reserve balance increased to 6.5 weeks cover (2025 4 weeks), comparing favourably to the target of 5 weeks. The target for the current year is an increase to not less than 8 weeks by the year-end, rising to 13 weeks by 2030 latest, thereby negating the need for a personal guarantee.

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31 March 2026

Service developments and growth, which 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.

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.

adopt the going concern basis in preparing the financial statements.

Plans for Financial Year 2026-2027

The Trustees aspire not only to sustain current activity, but through the renewed strategic people supported. With ongoing support from Impetus, we continue to develop and evolve our 5 year strategic plan, setting the long term goals and defining the stepping stones to get there.

For 2026-27 the primary delivery objectives encompass;

In addition to the above, non-delivery staff objectives include;

As well as generating revenue, the trustees recognise the need to continue our cost control

The charity aims to deliver a surplus of not less than £58,000 in the 2026-2027 financial year to meet our short-term reserves target of £237,000.

School of Hard Knocks 7

31 March 2026

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 managers with all staff and by the Chair of Trustees for the CEO.

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:

School of Hard Knocks 8

31 March 2026

charity has established fair employment practices in recruitment, selection, retention, and training of disabled staff. Full

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.

ve an unmitigated risk

score. Mitigation is then put in place and the risk is reshows the biggest unmitigated risks to the charity to be the following. The mitigation is also included:

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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:

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:

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

School of Hard Knocks 10

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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:

Victoria Griffin

Approved by the Trustees on:

School of Hard Knocks 11

Year to 31 March 2026

Opinion

We have audited the financial statements of School of Hard Knocks for the year ended 31 March 2026 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 applicable in the UK and Republic of (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in es 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 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

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 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

School of Hard Knocks 12

Year to 31 March 2026

cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

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

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:

Responsibilities of trustees

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

School of Hard Knocks 13

Year to 31 March 2026

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 going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our 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 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:

School of Hard Knocks 14

Year to 31 March 2026

including how fraud might occur by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 Coun

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Year to 31 March 2026

Use of our report

This report 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.

Alison Pyle (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

29 July 2026

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 2026

Notes Unrestricted
funds
£
287,796
428,852
442,310
422
1,159,380
296,474
802,173
1,098,647
60,733
60,733
118,311
179,044		 Restricted
funds
£
81,946
249,457
331,403
25,803
305,600
331,403		 2026
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2025
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 2025
Fund balances carried
forward at 31 March 2026
16		 369,742
428,852
691,767
422		 375,693
215,670
377,733
325		 105,054
270,619		 480,747
215,670
648,352
325
1,490,783 969,421 375,673 1,345,094
322,277
1,107,773		 229,559
712,938		 35,326
346,345		 264,885
1,059,283
1,430,050 942,497 381,671 1,324,168
60,733 26,924 (5,998) 20,926
60,733
118,311		 26,924
91,387		 (5,998)
5,998		 20,926
97,385
179,044 118,311 118,311

All recognised gains and losses are included in the above statement of financial activities.

School of Hard Knocks 17

Balance sheet 31 March 2026

Notes 2026
£		 2026
£		 2025
£		 2025
£
Fixed assets
Tangible assets
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 charity:
Unrestricted funds
. General fund
17
Restricted funds
17
Total charity funds		 92,240
218,237		 179,044
179,044
179,044		 171,203
102,620		 40
118,271
118,311
118,311
310,477
(131,433)		 273,823
(155,552)
179,044 118,311

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:

Victoria Griffin Trustee

Company Registration Number: 07743730 (England and Wales) Charity Registration Numbers: 1147009 (England and Wales) and SC046118 (Scotland)

School of Hard Knocks 18

Statement of cash flows Year to 31 March 2026

Notes 2026
£		 2025
£
Cash flows from operating activities:
Net cash provided by (used in) operating activities
A
Cash flows from investing activities:
Interest received
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2025
B
Cash and cash equivalents at 31 March 2026
B		 115,195 (107,340)
325
325
(107,015)
209,635
102,620
422
422
115,617
102,620
218,236

Notes to the statement of cash flows for the year to 31 March 2026.

A Reconciliation of net movement in funds to net cash provided by (used in) operating activities

----- Start of picture text -----
2026 2025
£ £
Net movement in funds (as per the statement of financial activities) 60,733 20,926
Adjustments for:
Less interest recieved (422) (325)
Depreciation charge 40 431
Decrease /(increase) in debtors 78,963 (164,881)
(Decrease)/Increase creditors (24,119) 36,509
Net cash provided by (used in) by operating activities 115,195 (107,340)
----- End of picture text -----

B Analysis of changes in cash and cash equivalents

As at 31
March 2025
£		 Cash
flows
£		 As at 31
March 2026
£
Cash at bank and in hand
Total cash and cash equivalents		 102,620
102,620		 115,617
115,617		 218,237
218,237

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.

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Principal accounting policies Year to 31 March 2026

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 2026, with comparative information given in respect to the year ended 31 March 2025.

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 and managed way. The current year surplus (£61k) was slightly ahead of the strategic plan. Expenditure remains strictly controlled, with the organisation demonstrating agility to adapt in a timely manner to changes in service provision. Meanwhile, the strategic decision to develop a dedicated Fundraising Team is starting to bear fruit, enabling the organisation to approve further investments and developments in line with the agreed Strategic Plan.

The tru 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, income and expenditure, 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 adopt the going concern basis in preparing the financial statements.

School of Hard Knocks 20

Principal accounting policies Year to 31 March 2026

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 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 ch

School of Hard Knocks 21

Principal accounting policies Year to 31 March 2026

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:

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 the principle office, 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 courses.

Support costs are 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

Notes to the financial statements Year to 31 March 2026

Tangible fixed assets and depreciation

The Fixed Asset policy is to capitalise all assets costing more than £1,000. As at 31 March 2026, the charity held no items which met the capitalisation criteria.

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 Knocks charitable objects.

Pension costs

e statement of financial activities when they are payable to the scheme.

Operating Leases

Rentals paid under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight line basis over the terms of the lease.

School of Hard Knocks 23

Notes to the financial statements Year to 31 March 2026

1 Income from donations

----- Start of picture text -----
Restricted 2026 Total
Unrestricted funds funds
funds£ £ £
Individuals 162,173 30,283 192,456
Corporate donations 113,502 51,663 165,165
Gifts in Kind 12,121 12,121
2026 Total funds 287,796 81,946 369,742
Unrestricted Restricted 2025 Total
funds funds funds
£ £ £
Individuals 210,622 19,717 230,339
Corporate donations 88,631 85,337 173,968
Gifts in Kind 76,440 76,440
2025 Total funds 375,693 105,054 480,747
----- End of picture text -----

2 Income from other trading activities Unrestricted
funds
£		 Restricted
funds
£		 2026 Total
funds
£
Sponsorship Income
Income from fundraising events
2026 Total funds		 48,611
380,241
428,852
Unrestricted
funds
£		 Restricted
funds
£		 48,611
380,241
428,852
2025 Total
funds
£
Sponsorship Income
Income from fundraising events
2025 Total funds		 41,667
174,003
215,670		 41,667
174,003
215,670

3 Income from charitable activities

----- Start of picture text -----
Unrestricted Restricted 2026 Total
funds funds funds
£ £ £
Grant income 211,500 222,457 433,957
Fee income 257,810 257,810
2026 Total funds 469,310 222,457 691,767
Unrestrict Restricted 2025 Total
funds funds funds
£ £ £
Grant income 205,000 270,619 475,619
Fee income 172,733 172,733
2025 Total funds 377,733 270,619 648,352
----- End of picture text -----

School of Hard Knocks 24

Notes to the financial statements Year to 31 March 2026

4 Expenditure on raising funds

----- Start of picture text -----
Unrestricted Restricted 2026 Total
funds funds funds
£ £ £
Fundraising staff costs (note 9) 174,847 21,554 196,401
Cost of fundraising events 62,465 62,465
Other fundraising costs 38,217 4,249 42,466
Support costs (note 6) 20,945 20,945
2026 Total funds 296,474 25,803 322,277
Unrestricted Restricted 2025 Total
funds funds funds
£ £ £
Fundraising staff costs (note 9) 123,569 34,846 158,415
Cost of fundraising events 73,663 73,663
Other fundraising costs 26,509 6 26,515
Support costs (note 6) 5,818 474 6,292
2025 Total funds 229,559 35,326 264,885
----- End of picture text -----

5 Expenditure on charitable activities

Expenditure on charitable activities
Unrestricted
funds
£		 Restricted
funds
£		 2026 Total
funds
£
Programme Staffing (note 9)
Other Programme Costs
Monitoring & Evaluation
Support costs (note 6)
2026 Total funds		 292,233
39,782
5,536
491,622
829,173		 241,686
32,584
4,330
278,600		 533,919
72,366
9,866
491,622
1,107,773

Note: The presentation of note 5 has changed from prior year to use subheads which align with the internal development of management reporting. The Prior Year numbers have been recategorised as below.

Unrestricted
funds
£		 Restricted
funds
£		 2025 Total
funds
£
Programme Staffing
Other Programme Costs
Monitoring & Evaluation
Support costs (note 6)
2025 Total funds		 282,418
65,933
4,540
360,046
712,938		 263,790
79,494
3,060
346,344		 546,208
145,428
7,600
360,046
1,059,282

School of Hard Knocks 25

Notes to the financial statements Year to 31 March 2026

6 Support costs

----- Start of picture text -----
Unrestricted Restricted 2026 Total
funds funds funds
£ £ £
Central Staff Costs (note 9) 376,339 376,339
Central Staff Cost Other 39,326 39,326
Marketing & Communication 8,285 8,285
Office & Administration 21,430 21,430
Software and IT 28,444 28,444
Legal & Professional 20,739 20,739
Accounting and Finance 17,964 17,964
Depreciation/Loss on Disposal 40 40
512,567 512,567
Unrestrictd Restricted 2026 Total
funds funds funds
£ £ £
Analysis of support costs
Fundraising costs 20,945 20,945
Charitable activities 491,622 491,622
512,567 512,567
----- End of picture text -----

Note: The presentation of note 6 has changed from prior year to use subheads which align with the internal development of management reporting. The Prior Year numbers have been recategorised as below.

----- Start of picture text -----
Unrestrictd Restricted 2025 Total
funds funds funds
£ £ £
Central Staff Costs (note 9) 230,056 230,056
Central Staff Cost Other 21,061 156 21,217
Marketing & Communication 655 655
Office & Administration 24,223 318 24,541
Software and IT 12,074 12,074
Legal & Professional 62,490 62,490
Accounting and Finance 14,873 14,873
Depreciation/Loss on Disposal 432 432
365,864 474 366,338
Unrestrictd Restricted 2025 Total
funds funds funds
£ £ £
Analysis of support costs
Fundraising costs 5,818 474 6,292
Charitable activities 360,046 360,046
365,864 474 366,338
----- End of picture text -----

School of Hard Knocks 26

Notes to the financial statements Year to 31 March 2026

7 Governance costs

----- Start of picture text -----
Unrestrictd Restricted 2026 Total
funds funds funds
£ £ £
Accountancy and audit costs 16,000 16,000
Other professional fees 4,967 4,967
2026 Total funds 20,967 20,967
Unrestricted Restricted 2025 Total
funds funds funds
£ £ £
Accountancy and audit costs 13,800 13,800
Other professional fees 149 149
2025 Total funds 13,949 13,949
----- End of picture text -----

8 Net income (expenditure)

This is stated after charging:

Staff costs (note 9)
Depreciation of tangible fixed assets
Statutory Audit		 2026 Total
funds
£
1,106,659
40
15,500		 2025 Total
funds
£
934,498
432
15,000

9 Staff costs

Staff costs were as follows:

Staff costs
Staff costs were as follows:
2026
£		 2025
£
Wages and salaries
Social security costs
Pension costs		 965,225
112,855
28,579
1,106,659		 830,326
79,702
24,470
934,498

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:

2026
£
533,919
376,339
196,401
1,106,659		 2025
£
546,027
230,056
158,415
934,498
Programme Staff costs
Support Staff costs
Fundraising Staff costs

School of Hard Knocks 27

Notes to the financial statements Year to 31 March 2026

The average monthly number of Full Time Equivalent employees during the year was as follows:

----- Start of picture text -----
2026 2025
No. No.
Management 6 5
Operational 20 18
26 23
High Paid Employees
2026 2025
Employees Earning No. No.
Between £70,000 - £79,999 1 1
Between £60,000 - £69,999 1
2 1
----- End of picture text -----

Pension contributions of £4,092 (2025 - £2,183) were paid in respect of these employees.

There are 5 key management roles charged with running and operating the charity on a day to day basis. The Chief Executive has ultimate responsibility, supported by the Director of Programmes, Director of Fundraising, Director of Finance, and the Operations & HR Manager. Total remuneration (including taxable benefits, employer's pension contributions and employers national insurance contributions) of the key management personnel for the year was £359,562 (2025- £260,517), £21,747 of which related to maternity pay.

No trustee received any remuneration for services or reimbursed expenses as a trustee in the current year (2025 - none).

10 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.

School of Hard Knocks 28

Notes to the financial statements Year to 31 March 2026

11 Tangible fixed assets

----- Start of picture text -----
Schools
Equipment Total
£ £
Cost
At 1 April 2025 1,295 1,295
Disposals (1,295) (1,295)
At 31 March 2026
Depreciation
At 1 April 2025 1,255 1,255
Charge for the year 40 40
Disposals (1,295) (1,295)
At 31 March 2026
Net book value
At 31 March 2026
At 31 March 2025 40 40
----- End of picture text -----

12 Debtors

Debtors
2026
£		 2025
£
Trade debtors
Prepayments and accrued income
Other debtors		 39,375
52,325
540
92,240		 27,035
140,971
3,197
171,203

13 Creditors: amounts falling due within one year

----- Start of picture text -----
2026 2025
£ £
Trade creditors 10,863 21,374
Other taxation and social security 24,095 13,218
VAT 8,254
Other creditors 6,070
Accrued expenditure 29,512 24,500
Deferred income (note 15) 58,709 90,390
131,433 155,552
----- End of picture text -----

14 Creditors: deferred income reconciliation

Creditors: deferred income reconciliation
2026
£		 2025
£
Deferred income brought forward at 1 April 2025
Income deferred in year
Deferred income released in year
Carried forward at 31 March 2026		 90,390
58,709
(90,390)
58,709		 51,775
90,390
(51,775)
90,390

Deferred income relates to income received in 2025/26 for use by the charity in 2026/27, as specified by the donors.

School of Hard Knocks 29

Notes to the financial statements Year to 31 March 2026

15 Statement of funds

Statement of funds
At 1 April
2025
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31 March
2026
£
Unrestricted funds
Restricted funds
Schools Programme
Growth & Development
Total funds		 118,311 1,159,380
305,599
25,804		 (1,098,647)
(305,599)
(25,804)		 179,044
118,311 304,403
1,490,783		 (304,403)
(1,430,050)		 179,044

Restricted Funding: During the year, the charity received £305,599 in restricted funding to support the delivery of the SoHK Schools Programme. Restricted funding included grants from trusts, foundations and public sector bodies to deliver the Schools Programme, encompassing both general programme delivery across multiple locations and, in some cases, funding restricted to specific schools or regions where funds cannot be reallocated. All restricted funds received during the year were fully expended in accordance with their respective conditions.

In addition, £25,804 of restricted funding was received to support the development of the fundraising team, in accordance with donor imposed restrictions, as the charity looks to grow to meet the ever increasing need for pupil support.

16 Prior Year Comparison

Prior Year Comparison
At 1 April
2024
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
March 2025
£
Unrestricted funds
Restricted funds
Schools Programme
Growth & Development
Total funds		 91,387
5,998		 969,422
340,821
34,852		 (942,497)
(346,819)
(34,852)		 118,311
5,998
97,385		 375,673
1,345,095		 (381,671)
(1,324,168)		 118,311

17 Analysis of net assets between funds

----- Start of picture text -----
Unrestricted Restricted 2026 Total
funds funds funds
£ £ £
Tangible fixed assets
Current assets 310,477 310,477
Creditors due within one year (131,433) (131,433)
179,044 179,044
Unrestrictd Restricted 2025 Total
funds funds funds
£ £ £
Tangible fixed assets 40 40
Current assets 197,998 91,403 289,401
Creditors due within one year (79,727) (91,403) (171,130)
118,311 118,311
----- End of picture text -----

School of Hard Knocks 30

Notes to the financial statements Year to 31 March 2026

18 Related party transactions

During the year various trustees contributed financially to the organisation:

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 appreciate the pro-bono work provided by Gibson Dunn & Crutcher LLP, a law firm of which James Cameron is a partner, the value of which is assessed as £52,857 (2025 - £55,100). This has not been recognized as income or expenditure in the accounts.

20 Commitments under operating leases

At 31 March 2026 (relating to Land

& Buildings) under non-cancellable operating leases was as follows:

2026
£		 2025
£
Amounts due within one year
Amounts due between two and five years inclusive		 190
190

School of Hard Knocks 31