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← Wembley Educational Charitable Trust

2024-12-31-accounts

Wembley Educational Charitable Trust

Annual Report and Financial Statements

31 December 2024

Company registration number 08681480 (England and Wales)

Charity Registration number 1153762

Contents

Reports

Reference and administrative details of
the charity, its Trustees and advisers 1
Trustees’ report 2
Independent auditor’s report 8
Financial statements
Statement of
financial activities 13
Balance sheet 14
Statement of cash flows 15
Principal accounting policies 16
Notes to the financial statements 19

Wembley Educational Charitable Trust

Reference and administrative details of the charity, its Trustees and advisers

Trustees Mr Richard Fairbairn
Mr Jean-Pierre Mustier
Mr Arnaud Vaissié
Ms Florence Gomez
Mr Benjamin Vedrenne-Cloquet (appointed
13 March 2024)
Mr Jack Bowles (appointed 9 May 2024)
Ms Annabel Blair (appointed 7 January
2025)
Registered office 23 Cromwell Road
London
SW7 2EL
Charity registration number 1153762
Company registration number 08681480 (England and Wales)
Auditor Buzzacott Audit LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC
HSBC Holdings PLC HBEU
West London Corporate
2ndFloor, Space One
1 Beadon Road
Hammersmith
London
W6 0EA
Banque Transatlantique
26 Avenue Franklin Roosevelt
Paris
Solicitors Adam Perry & Co LLP
10 Spaces Business Centre
15-17 Ingate Place
London
SW8 3NS
Stone King LLP
16 St John’s Lane
London
EC1M 4BS

Wembley Educational Charitable Trust 1

Trustees’ report 31 December 2024

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2024.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation.

The accounts have been prepared in accordance with the accounting policies set out on pages 16 to 18 of the attached accounts and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The charity was incorporated as a company limited by guarantee on 9 September 2013 as Wembley Educational Charitable Trust (“WECT”) and obtained charitable status on 11 September 2013. In the event of the winding up of the charity each member guarantees a sum not exceeding £10.

Objectives

The objectives for which the charity is established are to advance, for the public benefit, the education of pupils in the French education system. The objectives are in particular, but not limited to, the provision of premises and facilities for schools offering a French or a broader bilingual curriculum in the Wembley area, and ancillary educational and other charitable activities for the benefit of the community at large. The charity aims to provide assistance in establishing, maintaining, carrying on, managing and developing such schools.

In setting the charity’s objectives and planning its activities, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE

Review of the year

Wembley Educational Charitable Trust owns premises in Wembley that are leased to Lycée International de Londres Winston Churchill (LIL) and premises in Ealing that are leased to Ecole André Malraux (AM). As a landlord, WECT therefore collects rents from these two schools.

Ecole André Malraux is a 200-pupil primary school from 3 to 10 years of age. The school is managed by the French State-owned Lycée Français de Londres Charles de Gaulle. The deeply discounted rent paid by AM was negotiated a few years ago and its yearly increase is protected by a 3%-cap. There is limited interaction with the school apart from renewal of insurance, collection of rent and authorisation to do works or conduct valuations.

Wembley Educational Charitable Trust 2

Trustees’ report 31 December 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

Review of the year (continued)

Lycée International de Londres Winston Churchill opened in September 2015. It is an allthough school and has a board of governors who meets regularly to make key decisions for the school. WECT team members are often invited as observers during board meetings and other working groups.

In recent years, Lycée Churchill has navigated a series of significant challenges, from the effects of Brexit and the COVID-19 pandemic to increasing competition and mounting financial pressures. The introduction of VAT on school fees, the withdrawal of Mandatory Business Rates Relief, and rising National Insurance contributions for employers have further compounded these financial strains.

These challenges have resulted in year-on-year decline in the school’s enrolments with 2024/2025 figures accounting for 795 students (compared to 830 the previous year). The anticipation of admission figures for next year is not positive and the Lycée Churchill is putting in place a cost-savings plan mainly focused on its staff structure.

In addition, the school is focusing on both retaining existing students and attracting new enrolments, reinforcing its position as a leading choice for families seeking a high-quality education despite these difficulties. A communication campaign was launched together with a merit-based scholarship scheme with the hope that Lycée Churchill can gain new students formerly attending British private school and for which increased fee levels due to VAT impact were not affordable any longer.

Therefore, Lycée Churchill’s financial situation remains fragile due to the uncertainty associated with the current general downgraded economic situation and WECT continues to monitor the situation very carefully.

FINANCIAL REVIEW AND RESERVES

During the year, the charity earned rental income of £2,704,000 (2023 - £2,702,000) and interest from term deposits of £63,000 (2023 - £52,000). There were no donations received (2023 - £nil). Total income for the year was £2,767,000 (2023 - £2,755,000).

Costs relating to charitable activities in the year, excluding the impairment charge of £1,299,000 (2023 - £371,000) amounted to £1,641,000 (2023 - £1,724,000).

Net expenditure for the year was £173,000 (2023 – net income of £659,000). The property held as a programme related investment was valued at £43,601,000 (2023 - £44,900,000). The total funds as at 31 December 2024 were £7,620,000 (2023 – £7,793,000).

Reserves policy

The trustees regularly monitor the cash position of the charity to ensure that there are sufficient funds for capital projects and the running of the charity, including the servicing of bank finance. In particular, at the current time, the reserves need to be sufficient to enable the charity to operate in the current downgraded economic situation.

Wembley Educational Charitable Trust 3

Trustees’ report 31 December 2024

FINANCIAL REVIEW AND RESERVES (continued)

Financial position

The charity had total funds as at 31 December 2024 of £7,620,000 (2023 - £7,793,000). Once the programme related investments, long-term deposit and loan are excluded, the charity had free reserves of £1,622,000 (2023 - £1,336,000). The free reserves represent approximately 1.5 times the net operating income (excluding the impairment charge). The trustees are of the opinion that this level of free reserves is adequate. The amount of cash at bank and in hand was £2,425,000 at 31 December 2024.

GOVERNANCE, STRUCTURE AND MANAGEMENT

Organisation

The trustees meet officially in person or by video conference at least once a year. The last AGM was held on 29 February 2024. The Trustees also hold conference calls when required and there are at least monthly email exchanges regarding budgets. Any new trustees are inducted regarding their responsibilities and the activities of the WECT through detailed briefings.

It is understood that current trustees have a long-term commitment. The Trust is in the process of onboarding new Trustees to bring fresh ideas and perspective, as well as ensuring governance continuity.

All trustees have agreed to adhere to the charity’s conflicts of interests’ policy and have signed a statement to this effect.

Trustees

The following trustees were in office at 31 December 2024 and served throughout the period:

Trustees

Trustees
Mr Arnaud Vaissié
Mr Jean-Pierre Mustier
Mr Richard Fairbairn
Ms Florence Gomez
Mr Benjamin Vedrenne-Cloquet Appointed 13 March 2024
Mr Jack Bowles Appointed 9 May2024

Trustees’ field of expertise is complimentary and several Trustees have been involved since inception of the Trust. New appointments will need the full board approval.

Key management personnel

The trustees consider that they comprise the key management of the charity in charge of controlling, running, directing and operating the charity.

None of the trustees receive any remuneration for their services.

Wembley Educational Charitable Trust 4

Trustees’ report 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Trustees’ responsibilities statement

The trustees (who are also directors of Wembley Educational Charitable Trust for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity 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.

Risk management

The trustees have reviewed the risks faced by the charity and have procedures in place to mitigate the risks identified.

Wembley Educational Charitable Trust 5

Trustees’ report 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

The key risk of the charity remains the level of admissions at Lycée Churchill and the ability for the tenant school to pay their rent which in turn enables WECT to service their bank loan instalments in accordance with the lease agreement. To that extent, the charity has made a donation to Lycée Churchill to finance a dedicated communication strategy aiming to reach out to international and British families in the context of VAT applied to fees of private schools in the UK. In addition, WECT trustees have agreed to support financially a merit-based scholarship scheme for Lycée Churchill.

The admissions campaign currently shows a drop in enrolments for 2025/2026 compared to last year and WECT is closely monitoring the cost saving plan that will be required by Lycée Churchill to remain financially sustainable.

Raising funds

The charity does not actively fundraise although it welcomes donations. The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

FUTURE PLANS

Discussions progressed on the merger between Wembley Educational Charitable Trust (WECT) and KT Educational Charitable Trust (KTECT), that respectively own the school premises leased to Lycée Churchill and Ecole Andre Malraux on the one hand, and those leased to College Français Bilingue de Londres on the other. The French Ministry of Finance providing the respective State-guaranteed loan for each Trust is involved and the interactions with them and the lending bank are in advanced mode to ensure all aspects of the planned merger have been looked at. The objective is to implement the consolidation before the end of 2025, subject to various legal requirements.

As landlord, WECT is also supporting the schools to ensure that the planned maintenance works to the buildings are duly implemented and provisioned in the school’s budget.

WECT plans to maintain its financial support to Lycée Churchill on dedicated strategy aiming at student acquisition and retention, such as communication campaigns as well as scholarship schemes.

Wembley Educational Charitable Trust 6

Trustees’ report 31 December 2024

FUTURE PLANS (continued)

Finally, WECT is investigating on behalf of the school the project to accommodate foreign students willing to attend 1, 2 or 3 years of secondary school at Lycée Churchill. Indeed, an increasing number of French families are choosing to strengthen their children’s English proficiency by enrolling them in a “homologuée" (French-accredited) secondary school in an English-speaking country. Many of these students currently attend French schools abroad within the AEFE network or schools in France and are seeking opportunities to study abroad for one or more years in Seconde , Première , or Terminale .

Lycée Churchill in London is uniquely positioned to meet this growing demand, offering students the advantage of studying in one of the world’s most sought-after destinations for international education.

WECT has covered the financial cost of legal advice and feasibility study that confirmed the relevance of the programme for Lycée Churchill. It is anticipated that Lycée Churchill will start implementing the required regulatory steps before September 2025 in order to implement the programme in 2026.

The above report has been prepared in accordance with the special provisions as set out in Financial Reporting Standard FRS102 and Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees:

Mr Jean-Pierre Mustier

Approved on: ed on: 24/06/2025

Wembley Educational Charitable Trust 7

Independent auditor’s report 31 December 2024

Independent auditor’s report to the members of Wembley Educational Charitable Trust

Opinion

We have audited the financial statements of Wembley Educational Charitable Trust (the ‘charitable company’) for the year ended 31 December 2024 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:

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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.

Wembley Educational Charitable Trust 8

Independent auditor’s report 31 December 2024

Other information

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Wembley Educational Charitable Trust 9

Independent auditor’s report 31 December 2024

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect to 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:

Wembley Educational Charitable Trust 10

Independent auditor’s report 31 December 2024

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and review of minutes of trustees’ meetings.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Wembley Educational Charitable Trust 11

Independent auditor’s report 31 December 2024

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Biscoe

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

Wembley Educational Charitable Trust 12

Statement of financial activities (incorporating the income and expenditure account) Year ended 31 December 2024

Notes 2024
Total
funds
£’000		 2023
Total
funds
£’000
Income and expenditure
Income from:
Charitable activities
. Provision of premises and facilities
1
Bank interest receivable
Total income
Expenditure:
Expenditure on charitable activities
. Provision of premises and facilities
2
Total expenditure
Net (expenditure) income and net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 January 2024
Total funds carried forward at 31 December 2024		 2,704
63
2,767
2,940
2,940
(173)		 2,702
52
2,754
2,095
2,095
659
7,793 7,134
7,620 7,793

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.

All funds of the charity are unrestricted.

The notes on pages 19 to 23 form part of these financial statements.

Wembley Educational Charitable Trust 13

Balance sheet 31 December 2024

2024 2023
Notes £’000 £’000
Fixed assets
Programme related investments 7 43,601 44,900
Non-current assets
Debtors 8 1,931 1,977
Current assets
Debtors 9 125 117
Cash at bank and in hand 2,425 2,226
2,550 2,343
Liabilities:
Creditors: amounts falling due within one year 10 (1,845) (1,893)
Net current assets 706 450
Total assets less current liabilities 46,237 47,327
Creditors:amounts falling due after one year 11 (38,617) (39,534)
Total net assets 7,620 7,793
The funds of the charity:
Unrestricted funds 7,620 7,793
Total charitable funds 7,620 7,793

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard 102. porting Standard 102.

Approved by the Trustees and signed on their behalf by: oroved by the Trustees and signed on their behalf by:

Mr Jean-Pierre Mustier

Approved on: oroved on: 24/06/2025

Wembley Educational Charitable Trust imbley Educational Charitable Trust

Company Registration Number 08681480 (England and Wales) mpany Registration Number 08681480 (England and Wales)

Wembley Educational Charitable Trust 14

Statement of cash flows 31 December 2024

Notes 2024
£’000		 2023
£’000
Cash flow from operating activities:
Net cash provided by operating activities
A
Cash flow from investing activities:
Investment income received
Net cash provided by financing activities
Cash flow from financing activities:
Repayment of borrowing
Net cash (used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2024
B
Cash and cash equivalents at 31 December 2024
B		 1,027 1,141
57
57
(885)
(885)
199
2,226		 15
15
(854)
(854)
302
1,924
2,425 2,226

Notes to the cash flow statement for the year to 31 December 2024.

A Reconciliation of net movement in funds to net cash flow from operating activities

----- Start of picture text -----
2024 2023
£’000 £’000
Net movement in funds (as per the statement of financial activities) (173) 659
Adjustments for:
Impairment of programme related investments 1,299 371
Interest receivable (63) (52)
Decrease in debtors 44 47
(Decrease) increase in creditors (80) 116
Net cash provided by operating activities 1,027 1,141
----- End of picture text -----

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2024
£’000		 2023
£’000
Cash at bank and in hand
Total cash and cash equivalents		 2,425 2,226
2,425 2,226

C Analysis of changes in net debt

Cash
Loans falling due within one year
Loans falling due after more than one year
Total		 At 1 January
2024
£’000
Cash flows
£’000
199
(32)
917
1,084		 At 31
December
2024
£’000
2,425
(917)
(38,617)
(37,109)
2,226
(885)
(39,534)
(38,193)

Wembley Educational Charitable Trust 15

Principal accounting policies 31 December 2024

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 December 2024, with comparative information for the year ended 31 December 2023.

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) issued on 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 thousand pounds.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include the valuation of programme related investment properties.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern, and have concluded that the charity will have sufficient reserves to meet liabilities as they fall due.

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.

Wembley Educational Charitable Trust 16

Principal accounting policies 31 December 2024

Income recognition (continued)

Income comprises rental income and interest receivable.

Rental income on assets leased under operating leases is recognised on a straight line basis over the lease term.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally on 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:

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 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.

Programme related investments

Programme related investments comprise freehold property used by other charitable organisations for purposes consistent with the charity’s objectives. They are stated at fair value. The properties are periodically independently valued by a professional chartered surveyor on a fair value basis which takes into consideration rental charge and the current use of the premises as schools. The value is considered each year and any impairment is written off and treated as charitable expenditure in the statement of financial activities.

Wembley Educational Charitable Trust 17

Principal accounting policies 31 December 2024

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.

Bank loans are a basic financial instrument and are recognised at their transaction value, which is normally the principal amount advanced plus transaction costs. Subsequent to initial recognition, loans are stated at amortised cost with any difference between cost and redemption value being recognised through the statement of financial activities using the effective interest method.

Funds structure

The funds of the charity are unrestricted and can be expended at the discretion of the trustees in line with the governing document of the charity.

Wembley Educational Charitable Trust 18

Notes to the financial statements 31 December 2024

1 Income from charitable activities

2024
Total
funds
£’000		 2023
Total
funds
£’000
Rental income 2,704 2,702

2 Expenditure on charitable activities

Direct
costs
£’000		 Support
costs
£’000		 2024
Total
funds
£’000		 Direct
costs
£’000		 Support
costs
£’000		 2023
Total
funds
£’000
Provision of premises and
facilities
. Charitable donations
. Governance costs (note 3)
. Accountancy
. Interest payable
. Bank charges
. Premises costs
. Impairment of programme
related investment
Total funds		 —
—
—
1,422
1
—
1,299
2,722		 —
194
17
—
—
7
—
218		 —
194
17
1,422
1
7
1,299
2,940		 —
—
—
1,497
1
—
371
1,869		 —
194
17
—
—
15
—
226		 —
194
17
1,497
1
15
371
2,095

3 Governance costs

2024
Total
funds
£’000		 2023
Total
funds
£’000
Legal and professional fees
Administrative fees		 10
184		 9
185
194 194

Wembley Educational Charitable Trust 19

Notes to the financial statements 31 December 2024

4 Staff costs, remuneration of key management and trustees’ expenses and remuneration

The charity employed no staff during the period (2023 - none).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity comprises the trustees. None of the trustees received any remuneration for their services during the period (2023 - none). No trustees (2023 - none) were reimbursed for expenses incurred relating to travel and accommodation in the performance of their duties (2023 - £nil).

Trustee indemnity insurance was purchased by the charity during the year to protect it from any loss arising from the neglect of defaults of its trustees, and to indemnify the trustees or other officers against the consequences of any neglect or default on their part. The total premium paid amounted to £3,850 (2023 – £3,828), providing cover up to a maximum of £1,000,000 (2023 – £1,000,000).

5 Net income and net movement in funds

This is stated after charging:

2024
Total
funds
£’000		 2023
Total
funds
£’000
Auditor’s remuneration 14 13

6 Taxation

Wembley Educational Charitable Trust 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.

The charity registered for Value Added Tax in August 2016 with the effective date of 30 September 2013. Therefore expenditure is recorded exclusive of VAT where applicable.

7 Investments

Investments
Programme
related
investment
property
2024
£’000		 Programme
related
investment
property
2023
£’000
At 1 January
Impairment
At 31 December		 44,900
(1,299)
43,601		 45,271
(371)
44,900

The original property (54 Forty Lane, Wembley Park, HA0 9HD) is rented to Lyceé International de Londres Winston Churchill, a registered charity, for purposes consistent with the charity’s objectives; running a bilingual (French and English) school in Wembley, therefore the property is classified as a programme related investment.

Wembley Educational Charitable Trust 20

Notes to the financial statements 31 December 2024

7 Investments (continued)

In 2019 Ealing Educational Charitable Trust transferred the Ecole Andre Malraux building to the charity. The property is let for purposes consistent with the charity’s objectives; running a bilingual (French and English) school in Ealing, therefore the property is classified as a programme related investment.

On 31 December 2024 the properties in Ealing and Wembley were valued by Newmark. The valuations were prepared in accordance with the requirements of the Royal Institution of Chartered Surveyors (RICS) Valuation – Global Standards 2022 and the national standards and guidance set out in the UK national supplement (November 2018), the International Valuation Standards and Financial Reporting Standard 102.

8 Debtors: amounts falling due after one year

2024
£’000		 2023
£’000
Other debtors 1,931 1,977

Other debtors in both current and long-term debtors relate to a deposit held by ANEFE (Association Nationale des Ecoles Françaises de l’Etranger) as security against the bank loan (note 12).

9 Debtors: amounts falling due within one year

Debtors: amounts falling due within one year
2024
£’000		 2023
£’000
Trade debtors
Other debtors
Accrued income		 10
72
43
125		 9
70
38
117

10 Creditors: amounts falling due within one year

----- Start of picture text -----
2024 2023
£’000 £’000
Trade creditors 33 17
Deferred income 667 667
Accruals 62 66
Bank loan (note 12) 917 885
VAT liability 166 258
1,845 1,893
----- End of picture text -----

Income has been deferred because Wembley Educational Charitable Trust received rent from Lycée International de Londres Winston Churchill in December 2024 for the period covering 1 January 2025 to 31 March 2025, therefore this income will appear in next year’s accounts ending 31 December 2025.

Wembley Educational Charitable Trust 21

Notes to the financial statements 31 December 2024

10 Creditors: amounts falling due within one year (continued)

The movements in deferred income are analysed below:

2024
£’000
667
(667)
667
667		 2023
£’000
Brought forward
Released in year
Deferred in year		 667
(667)
667
667

11 Creditors: amounts falling due after one year

2024
£’000		 2023
£’000
Bank loan (note 12) 38,617 39,534

12 Loans

Loans repayable, included within creditors are analysed as follows:

2024
£’000		 2023
£’000
Wholly repayable: within five years
Not wholly repayable: within five years		 5,197
34,337
39,534		 5,016
35,403
40,419

In 2021 the terms of the loan with Banque Transatlantique were renegotiated: the total loan facility was reduced to £42.5m from 23 July 2021 on a 30 year term, expiring June 2051, at a fixed interest rate of 3.549%. The French State has guaranteed the repayment of the loan up to the value of £47 million. The deposit held by ANEFE forms part of the security against the loan.

13 Related party transactions

KT Educational Charitable Trust

Six of the charity’s trustees are also trustees of KT Educational Charitable Trust (Company Registration Number 07057043 England and Wales).

During the current year, any administrative fees paid by Wembley Educational Charitable Trust on behalf of KT Educational Charitable Trust were reinvoiced by Wembley Educational Charitable Trust to KT Educational Charitable Trust totalling £4,162 (2023 - £89,972). There were no amounts outstanding at the year end (2023 - £nil). Wembley Educational Trust did not receive any donations from KT Educational Charitable Trust during the year (2023 - £nil).

Wembley Educational Charitable Trust 22

Notes to the financial statements 31 December 2024

13 Related party transactions (continued)

Lyceé International de Londres

Lyceé International de Londres is a registered charity (Company Registration Number 09033139 England and Wales) which has a common trustee, Mr Vaissié, with Wembley Educational Charitable Trust. In his roles Mr Vaissié acts in a manner which will avoid any conflicts of interests.

Rent of £2,666,667 (2023 - £2,666,667) for the year ended 31 December 2024 was charged to Lycée International de Londres. At 31 December 2024 £667,000 (2023 - £667,000) of rent relating to 2025 had been received and is included in creditors.

14 Net assets

The total unrealised gains as at 31 December 2024 constitutes movements on revaluation and are as follows:

----- Start of picture text -----
2024 2023
£’000 £’000
Unrealised gains:
On programme related investment properties 2,638 3,937
Total unrealised gains at 31 December 2024 2,638 3,937
Reconciliation of movement in unrealised gains:
Unrealised gains at 1 January 2024 3,937 4,308
Impairment (1,299) (371)
Total unrealised gains at 31 December 2024 2,638 3,937
----- End of picture text -----

Wembley Educational Charitable Trust 23