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2025-12-31-accounts

THE PALACE TRUST

(A Charitable Company Limited by Guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

COMPANY NUMBER: 09404519

CHARITY REGISTERED IN ENGLAND AND WALES NUMBER: 1160830

THE PALACE TRUST

CONTENTS

Reference and Administrative Details 4
Trustee Directors’ Report 5
Independent Auditors Report 22
Consolidated Statement of Financial Activities 26
Balance Sheet and Consolidated Balance Sheet 27
Statement of Cash Flows and Consolidated Statement 29
of Cash Flows
Notes to Financial Statements 30

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Annual Report 2025 Foreword

We live in a very uncertain world which is why it is a privilege to help conserve a small but important slice of living history. For over 800 years the Bishop’s Palace and grounds in Wells have been the home of the Bishop of Bath and Wells and a place of spiritual reflection, beauty and tranquility. The Palace Trust (a charity) has enabled the general public to share this experience for many decades and hopes to extend that welcome far into the future.

After a couple of loss-making years post covid, we are pleased to report the second successive year of surplus with £73,534 for the year ended 31 December 2025. That achievement is particularly pleasing in the context of a very challenging environment for tourism in the southwest and, indeed, the whole country. It is sobering when iconic venues like the Eden Project are forced to make redundancies, so we are delighted that whilst the surplus has contributed to greater financial stability, we have also increased our community engagement activities. We intend that upward curve to continue for a long time to come.

We continue to conserve and improve the Palace and grounds in accordance with the Trust’s values and during the year spent £194,000 on conserving the fabric of the building and grounds. The Wynne Wilson study now transports you back in time to the 1930s, the new multimedia device enriches the experience of wandering around the Palace and even offers a dialogue with previous Bishops in the long gallery! Our RHS partner gardens, as ever, are a delight and this year saw 20,000 yellow tulips adorn the battlement banks which should repeat for years to come. They too can be enjoyed with a new Bloomberg Connects App which covers the outer gardens and is narrated by our head gardener, James Cross, and other colleagues.

Our award-winning cafe, situated in the free area, can be enjoyed up to 500,000 people a year who cross the drawbridge who can also enjoy part of the Palace grounds free of charge.

Our charity has many exciting plans for further development and looks forward to sharing them and offering inspiration to many, many people who can experience joy, healing, hope and wellbeing.

Finally, some important thanks, to our wonderful staff and volunteers who make it all possible and especially to the Friends of the Palace and all our other lovely visitors.

s Roger Hawe Merryn Kidd Chair Chief Executive

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THE PALACE TRUST

Reference and Administrative Details

THE PALACE TRUST <<< Trustee Directors Report The Trustees, wt#) are also diredors for the pufj>)ses of the CCInpar￿ Act, tyewt trir report finanaal stalements of the chanty for the year ended 31 December 2025, which are aso wepared to meet the requirements for a dIrectc￿. rwjrt aThJ acccuts for Ccmp￿￿S Act wrposes. The financial statemerts have been prepa(ed in accordan￿ wrth the aCCo￿￿.￿j pdicEs set ¢xrt in r￿le 1 to the financial statements and cc¥nply ch￿be$ Ad 2011, the CcThpanies Ad 20(￿, the Mem(K3ndum aThJ ATbcles of Ass(￿131￿. and Accounting and Rep(xting l)y CharrtEs" Statement of RecommeTrJed Practice applicable In the UK and Republic of IrelarKI {FRS 102) (effective 1 J￿Uary 2019). T1￿ full name of the Charty Palace Twst. li was incorporated ￿ 26 J￿Uary 2015 as a company lThiled by guarantee. Its company regLS1ratK￿ number is 09404519. Its chanty re￿nstrat￿￿ nurn￿r 1160830. The Charity Is varHJJsly rele￿ed to throug1￿)Ut this retx)rt as erther Ihe Chaw, Ihe Compan Ihe Tru5r. References and Administrative Details Administrab"ve In1￿M3￿C￿ is giv￿ in a separate Secti￿ at the front of these accounts. Directors and Trustees Tf£ directo￿ of the Company are the Charitys Twstees for tre puryxxe of chanty law a￿1 thrcwlmxrt Ih KK)rt are collects¥ety relerred to as the Trustees. Trusiees seMrwJ dunrwj the year and ￿rKe the year-end ¥e as follNs" Rl Revd Nod Pldchael Beasley Greg Beed c￿line Brawley Paul Dickinsc Sam Forsey Rcoer Hawes Natasha Hiwkins Kathanne MactJ)nald Michael Minta Claire Revell Salty SIracl￿Y Rt Revd Trev￿ wil1r￿tt (reggrd 1# March 2025) (Chair) Ireggred 2￿ February 20261 (apwinted 21P Novents 2025) None of Ihe Truees have any ber*ficial intwest in Ite Conyany All of Tntstees are membeis of the Company guarantee to contril)ute £1 in the event of a w'nding up.

THE PALACE TRUST

ANNUAL REPORT 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Palace Trust’s Articles contain two charitable aims: a) to preserve for the benefit of the public the fabric of The Bishop’s Palace (as a place of historic and architectural interest) in order to facilitate access to The Bishop’s Palace by the public for their education and interest, and b) to promote such charitable purposes as will advance the religious and other charitable work of the Church of England in such manner as the Trustees shall from time to time decide and are approved by the Church Commissioners.

Today, The Palace Trust continues to work towards these charitable aims, by opening The Bishop’s Palace and its fourteen acres of gardens up to the public and running it as a heritage site, visitor attraction and community asset, and via its community engagement programmes.

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ORGANISATIONAL STRUCTURE

The Board of Trustees is responsible for strategy and supervision of the executive to whom they delegate responsibility for operations. The Chief Executive Officer is responsible for delivering the strategy with the senior management team comprising the following department heads: Catering, Visitor Experience, Community Engagement and Volunteers, Horticulture, Property Management, Marketing & Communications, and Finance & HR. Department heads are responsible for the day to day running of the operations and report directly to the CEO.

An average of 62 staff were employed by the Trust and its subsidiary during the 12-month period ended 31 December 2025 with 64 in post at 31 December 2025 (14 full time and 50 part time). We had an average of 187 volunteers during the year.

KEY MANAGEMENT PERSONNEL REMUNERATION

The trustees consider the Board of Trustees and the Chief Executive Officer as comprising the Key Management Personnel (KMP) in charge of directing and controlling the Trust and running and operating the Trust on a day-to-day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. The pay of Chief Executive Officer is reviewed annually and normally increased in accordance with average earnings. The remuneration is also benchmarked with heritage organisations of a similar size to ensure that the remuneration set is fair and not out of line with that generally paid for comparable roles. Details of trustee expenses and related party transactions are disclosed in note 8 to the accounts, and details of other KMP remuneration are disclosed in note 9 to the accounts.

AN AVERAGE OF 62 STAFF

187 VOLUNTEERS

10 TRUSTEES

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WHAT A WONDERFUL PLACE. IT IS IN AN IDYLLIC LOCATION WITH BEAUTIFUL GARDENS AND SO MUCH HISTORY. COMBINED WITH A TOUR OF CATHEDRAL, THIS IS A TRULY MAGICAL DAY OUT. THE FOOD IN THE CAFE IS EXCELLENT AND REASONABLY PRICED.

SELECTION AND TRAINING OF TRUSTEES

Trustees are appointed according to the skills and experience required to deliver a successful strategic Board which meets both as a board and in smaller sub-committees. The Church Commissioners have the right to appoint one Trustee and the Bishop of Bath and Wells also has the right to be a Trustee. A skills audit was conducted prior to the 2024 recruitment round in order to identify gaps in the skills and experience in the board of Trustees.

Interviews for new Trustees are carried out by a Trustee panel before a decision on whether to appoint is made. New Trustees are provided with an induction pack of relevant information which is supplemented by a detailed induction programme involving the Chair and key members of staff. Trustees are encouraged to participate in ongoing training and an annual away day.

RELATIONSHIP WITH OTHER ENTITIES

The management of catering, events (both corporate and private) and filming is undertaken by Palace Enterprises (Wells) Ltd (‘PEL’), which is a wholly owned subsidiary of The Palace Trust. Income generated by this subsidiary may be donated to the charity by way of an annual Gift Aid donation if available from distributable profits.

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STRATEGIC AIMS

OBJECTIVES, STRATEGY AND ACTIVITIES OF THE TRUST

The charitable purposes of The Palace Trust are to preserve for the benefit of the public the fabric of The Bishop’s Palace and to promote such charitable purposes as will advance the religious and other charitable work of the Church of England.

Today, The Palace Trust seeks to conserve and share the Palace and its story as a place of enjoyment and reflection for the benefit of all. The charity fulfils its purpose by taking forward detailed actions that meet five strategic objectives, newly identified for the 2026-2036 Strategic Plan.

Our Strategic Priorities

1.Visitor Experience & Inclusivity

Ensure an unforgettable, outstanding welcome and experience, where visitors feel included and personally connected to our offering.

2. Community & Charitable Work

Enrich lives through our charitable work both on-site and off-site, ensuring everyone in our community has the chance to discover something meaningful and beneficial.

3. Development & Conservation

Elevate the conservation of our historic fabric while boldly developing the site into a visionary space that maximises our charitable impact.

4. Gardens & Environment

Enhance our gardens so that they remain breathtaking, sustainable, and resilient to climate change. Achieve and maintain net zero carbon emissions.

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Our Strategic Priorities (cont)

5. Finance & Investment

Employ careful guardianship of our reserves while reinvesting surplus to create a thriving, self-sustaining site that secures our future and expands our impact.

PUBLIC BENEFIT

In setting The Palace Trust’s preceding aims and following activities, the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit and continue to preserve and make accessible The Bishop’s Palace and its fourteen acres of gardens to the public, as a place of historic, architectural and landscape interest.

The Palace Trust achieves its purpose by opening the site to the public throughout the year, aiming to engage a diverse audience through a programme of public events, activities, exhibitions, its commercial activities and its community engagement programme. The Bishop’s Palace is central to the experience and enjoyment of Wells and will remain so as The Palace Trust continues to grow and expand its public offer, in particular with the introduction of community engagement measures designed to reach out to those most in need for little or no cost to them. The Palace Trust undertakes an annual plan of conservation and repair works ensuring The Bishop’s Palace remains in the public domain for future generations.

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ACTIVITIES

2025 was the final year of our 2020-2025 Strategic Plan and many of the planned activities were brought to completion.

In January 2025 we launched our new multi-media devices, created in partnership with Imagineear. The devices hold around 1.5hrs of content and bring the interior of the medieval palace to life in a range of creative ways, including the wonderful “Talking Portraits” where the Bishops in the portraits come to life and speak directly to the visitor. The tour has a family or adult version and proved to be extremely popular throughout its first year. A new Volunteer role was created to distribute the devices and act as a friendly welcome inside the Palace’s entrance hall. At the same time, a Welcome Video, projected into the archway of the Entrance Hall, was launched. Lasting just under 5 minutes, it sets the scene for the visit to the site and serves as a beautiful introduction to the interpretation.

Also in January, a new piece of art by glass artist Edgar Phillips was installed; an etched glass tabletop with interpretation about the original Bishop Ken’s table, which sits on the original 17th century legs of the table and has proved to be fantastic for engaging visitors with the piece.

Work began in early March on the creation of a new Strategic Plan for the next 5-10 years. Workshops and exploratory sessions were held, starting with a SMT/Trustee Away Day, led by a strategic expert, and continuing with staff and volunteer sessions. Initial ideas were presented to the Board in May and approved in August.

In August a new digital tour of the gardens was launched in partnership with Bloomberg Connects, giving visitors the opportunity to use their own devices to explore the gardens, guided by our team of gardeners and volunteers, along with more detailed content on planting and history.

A range of new “Flagship Events” were introduced at the Palace in 2025, including a new Country and Garden Fair, with dog show, bake off, petting zoo, plant stalls and more, History Live! a weekend of historical reenactments, and Party at the Palace, a pop festival resulting in 1500 attendees enjoying music on the Croquet Lawn. These new events were complemented by our most successful ever Christmas Artisan Market in November, and Christmas Illuminations which ran from 30th November through until 4th January.

Much work took place on development projects, and we completed our improvements to the Community Garden Room, with a new wrap around pergola to protect groups from the sun and rain, a bifold door entrance and raised floor for an indoor/outdoor seamless environment, new kitchen and storage, and an outdoor sink with hot and cold water. Plans were approved for a new Visitor Reception and Shop, involving creating a new doorway through the Stable Yard Room into the gardens, and work was completed on schedule in December. Work also took place to create a new Splash Play Zone in the Dragon’s Lair, with ‘raining tree’, squirting rocks, and a paddling pool for our younger visitors. The works were completed in November, and the facility will launch in Spring 2026.

PERFORMANCE

2025 saw the organisation returning a surplus for a second consecutive year, and this £73,534 was close to budget, despite some challenging external factors.

We welcomed 495,151 over the Drawbridge and, of those, 152,276 paid to enter the site, which represented an 8.6% increase on 2024. Given the continued cost of living crisis, a variety of challenging weather, and other visitor attractions in the area struggling, the Trust was delighted with this result.

Key contributors leading to this success including:

A range of new flagship events, including:

Excellent results in our Food and Beverage department;

The Trust was exceptionally grateful to the Church Commissioners for their support in 2025.

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COMMUNITY ENGAGEMENT

In 2025 we gave 162 free annual passes and 108 day tickets to those who would benefit most from access to our place of peace, beauty and tranquillity (this included people using the local food bank) . In addition to this we gave 62 annual passes to children and their families on pupil premium at two local schools. Total value of these tickets and passes was £5624. We donated raffle prizes to 49 local groups. We also gave out 77 free community membership passes to local groups that would benefit from accessing The Bishop’s Palace and Gardens who might not otherwise have been able to visit. In addition to this we gave some free /reduced cost venue hire so that some local groups could celebrate here or hold regular meetings eg bereavement group, carers group, local school sixth form prom.

We hosted visits from 11 different state schools (with some repeat visits, such as The Blue School) and one homeeducator group, excluding private schools attending paid visits. This amounted to 665 children. Additionally, a further 16 schools engaged with our Christmas Eco Arts Exhibition, reaching 1,403 children across the county. Of these, 9 schools also visited us on-site, bringing the total number of free school visits to 20. We ran a free 10 week yoga course for neurodiverse people. We worked in partnership with Museum To You to deliver outreach sessions to over 100 people living in local nursing homes so they could enjoy learning about gardens and wildlife at The Bishop’s Palace.

Over the course of the year we offered 14 work experience placements to local young people and 1 x 6 week placement in the gardens to an adult attending Job Centre Plus. We worked in partnership with three local groups to deliver sessions in our community garden for young people and adults needing extra support including piloting a new course with the Child and Adolescent mental health team. We welcomed 14 young people from Wells Youth Centre for a free wellbeing workshop and a photography workshop. The photography workshop was funded by Arts Society Mendip and they also provided another workshop for older adults. The focus of the photography workshops was to encourage participation in our Playing Cards photography competition. Over the summer we had 187 entries with the 55 winning images creating a bespoke pack of playing cards. Nearly everyone attended a launch here with breakfast and each received 2 free packs of cards.

THE BISHOP’S PALACE AND GARDENS ARE BEAUTIFUL AND VERY WELL MAINTAINED. WE OPTED FOR THE AUDIO TOUR (FREE AFTER ADMISSION) WHICH WAS EXTREMELY INFORMATIVE AND GAVE US A REALLY GOOD INSIGHT INTO THE HISTORY OF THE PLACE. THE STAFF WERE FRIENDLY AND HELPFUL.

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VOLUNTEERING OPPORTUNITIES

This year 182 volunteers contributed just under 20,000 volunteering hours to our organisation. There are 14 different volunteer roles requiring a time commitment of between 2 hours per fortnight to a day per week, which means there is a range of opportunities to suit everyone. We organised two new family volunteering days which went well. We continue to offer a comprehensive training programme, out of pocket expenses, a volunteer website, and regular social events, to make the volunteering experience at The Bishop’s Palace as rewarding as possible. This year we achieved the nationally recognised quality standard for working with volunteers ‘Investing in Volunteering Award’. The Palace Trust is extremely grateful for the loyalty and contribution of its volunteers who not only make the effective running of the site viable through their gift of time, knowledge and skills but who benefit from their engagement with our work, to deliver our charitable objects.

FUTURE PLANS

2026 marks the first year of our new Strategic Plan. A summary version of the 2026 Business Plan is available on our website. The Trustees have agreed a programme of work that reflects our charitable purpose, with a focus on strengthening the visitor experience, widening access, conserving the site, and building long term resilience.

Visitor Experience and Inclusion

2026 marks the first year of our new Strategic Plan. A summary version of the 2026 Business Plan is available on our website. The Trustees have agreed a programme of work that reflects our charitable purpose, with a focus on strengthening the visitor experience, widening access, conserving the site, and building long term resilience.

We will focus on enhancing the visitor experience and improving inclusion across the site. A new Visitor Reception in the Stable Yard will be embedded and monitored to support better visitor flow and accessibility. The full visitor journey, from the Market Place through to the Palace, will be reviewed to reduce barriers, particularly for those with additional access needs. Digital improvements will support this work, including the introduction of an AI powered website assistant and improved use of visitor data to enable more personalised communication and deeper audience insight.

Our events programme will continue to play a central role, with key events such as the Country and Garden Fair, Party at the Palace, Christmas Illuminations and the Christmas Artisan Market. We will also expand our cultural offer through exhibitions featuring regional artists and a research-led estates exhibition. New initiatives will include trial summer evening openings and the introduction of seasonal rowing boats on the moat, alongside carefully managed waterbased activities.

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Development and Conservation

The conservation and care of the Palace will continue through a programme of planned works across the buildings and estate. This includes ongoing maintenance of the historic fabric, the phased conservation of the Bishops’ portraits, and improvements to infrastructure such as the automation of the historic sluice gate system to reduce flood risk. Subject to planning and fundraising, we will also progress a wider Water and Science project to enhance interpretation, learning and visitor facilities within the gardens, supported by investment in digital and electrical infrastructure.

Gardens and Environment

Within the gardens, we will maintain high horticultural standards while responding to environmental challenges. This will include renewing key garden areas, strengthening tree health and resilience, and continuing sustainable and organic gardening practices. We will increase rainwater harvesting and explore the use of moat water for irrigation. Environmental responsibility will be embedded within our reporting, with carbon monitoring introduced from 2026 and clear targets set for emissions reduction. We will also explore the installation of solar panels, subject to the necessary approvals.

Community and Charitable

Our charitable and community work will remain at the heart of our activity. We will pilot a travel bursary scheme to reduce barriers to access and continue to support local schools through free visits and outreach sessions. Work experience opportunities will be expanded, with a focus on young people facing barriers to opportunity. We will grow our Heritage Connectors initiative and continue to support a large and active volunteer community. Free access will be maintained for targeted local community groups and individuals most in need, alongside our new free Open Day, ensuring the Palace remains welcoming and accessible to all. We will also work towards achieving Disability Confident Level 3 status

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WE SPENT A DAY HERE, BOUGHT A TICKET FOR BOTH PALACE, GARDENS AND CATHEDRAL... WAS DEFINITELY WORTH IT. WHAT A BEAUTIFUL PLACE! (TRIPADVISOR)

Finance and Resilience

Financial sustainability will remain a priority. We will continue to grow income across admissions, retail, catering, events and venue hire, supported by improvements to systems and visitor offer. Fundraising capacity will be strengthened, alongside efforts to secure external funding for capital projects and reduce reliance on reserves. We will also review the use and future management of the Bishop’s Barn and consider the development of an Endowment Fund to support long term resilience.

2026 will be a year of consolidation and careful growth, embedding recent investments while strengthening financial resilience, broadening access, and preparing the Palace for long-term sustainability.

2025 AT A GLANCE

495,151

Crossed the drawbridge

152,276 Visitors paid to enjoy the Palace & Gardens

699

‘Friends of the Palace’ made

over 100 days Of public events and activities

125 free annual passes and 108 day tickets to those who will benefit the most

56

Annual passes to children and their families on pupil premium

807

Pupil free visits from local schools

Welcomed new Building & Facilities Assistant, Gardener, Visitor Experience Supervisor, Trainee Gardener, Events Manager, Financial Controller, Office and Accounts Assistants, and Fundraising Assistant.

6 Cygnets born

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Groups per week in Community Garden

62,683 cups of coffee and 50,653 pieces of cake sold in the café

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FINANCIAL REVIEW AND RESERVES POLICY

(Under Audit Review)

The Palace Trust’s financial position is an estimated surplus of £73,534 which included an agreed overspend in premises maintenance. At year end, the Trust had unrestricted net assets (excluding the trading subsidiary), of £1,276,805, of which £650,750 is designated and £461,887 is Tangible fixed assets. It is the charity’s policy not to commit The Palace Trust to any new major programme of work until sufficient funds are accumulated in reserves to satisfy existing obligations.

RISK POLICY

The Trustees undertook a comprehensive review of risks during the past year and maintain a register of those risks which would affect the reputation and financial status of The Palace Trust. This register is maintained by the Trustees and includes a ranking of risk that takes account of likelihood and severity of impact. Risks that could have a material impact on The Palace Trust are singled out for particular attention.

RESERVES (Under Audit Review)

Each year the Trustees review the level of free reserves. The Board considers the exposure to major risks in terms of their likely impact on its income sources and planned expenditure in the medium term.

Free reserves are defined as those available for the use by the Charity that are deemed to be readily realisable, less funds that are restricted or else designated for particular purposes.

This therefore excludes £461,887 tangible fixed assets that will continue to be used in the day-to-day running, and restricted funds of £nil.

The policy is to have a Trust Reserve for unrestricted funds at the year-end of sufficient size to cover the period from January to March when The Palace Trust runs at a deficit. The Trust Reserve therefore equates to 3 months of forecast expenditure. As at 31st December 2025 this was £450,000.

Other free reserves of £453,609 include £200,750 which has been allocated to the following project as designated funds:

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are directors of The Palace Trust for the purposes of company law) are responsible for preparing the Trustee Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (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 the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

Select suitable accounting policies and then apply them consistently;

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATEMENT AS TO DISCLOSURE TO OUR AUDITORS In so far as the Trustee5 are aware: There is no relevant audit information of which the charitable company's auditors are unaware: and The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the audttors are aware of that information. AUDITORS The auditors. Albert Goodman LLP, a￿ deemed to be re-appointed under Section 487(2) of the Companies Act 2006. SMALL COMPANY PROVISIONS This report has been prepared in accordance with the small companies regime under the Companies Act 2006. By order of the Trustees. R Hawes Trustee The Palace Trust

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Finally, we asked ChatGPT to summarise key themes from the feedback we’ve had from our visitors:

The Palace Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2025

Opinion

We have audited the financial statements of The Palace Trust (the 'parent charitable company') and its subsidiary (the ‘group’) for the year ended 31 December 2025, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Generally Accepted Accounting Practice, 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:

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 group and parent 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 trustee’s 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 entity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 Trustees’ Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

Produced by Albert Goodman LLP

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The Palace Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2025

Opinion on other matter 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 group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on pages 19-20, the trustees (who are also the directors of the parent 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 group and parent 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 parent 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.

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

Produced by Albert Goodman LLP

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The Palace Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2025

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:

The extent to which 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:

We assessed the susceptibility of the group’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:

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

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The Pala¢è Trust Independent Auditors. Rèport to the Trustees and Members For the Year Ended 31 December 2025 There are inh8rent l¥nitalions in our aLMJit p￿CedureS desc¥ibed above. The more rermved that laws and regulations are from financaal transactions. the jess likdy it is that V¢ vnuld become aware of non- Jmpliance. Auditing standards also Itmtl the audit procedures required to identify non-coMp￿ance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, rf any. Material misstatemonts that arise due to fraiKI can ￿ hwder to dot6Ct than those that arise from érror as they may involve deliberato concealment ￿ o)Ilusion. Use of our report This reFKSrt is made solety to the group and went charitablo o)mpany's rn8mbers. as g boty, in ac(x)rdan¢o vilth Chapter 3 of Part 16 of the Companies Act 2£￿. Our audit vmrk has been undertaken so that we might state to the group and parent charitable o)mpany's members and tr￿￿eeS those matters we are required lo state to them in an auditorfs report and no other purpose. To the fullest exlenl pemiitted by law, we do not accapt or assume ￿SponSi￿￿lity to anyone other than the group and parent charitable company and the group and parenl tharitable company's members as a body and the pent charitable company's trustees as body, for our audit work. for this reprt or for the opinions have fomed. Ile Ferris BSC (Htxs) FCA WhA (Senior Statutory Audilo For and on behalf ofAlb8rt Goodman LLP. Statutory Auditor Goooknod House Bla¢kbrook Park Avenue Taunlon Somerset TA12PX Dat8.. 13./0?/?oa.l. Prothjced by Albert Goodm￿ LLP Page 25

The Palace Trust

Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 31 December 2025

----- Start of picture text -----
2025 2024
Unres- Res- Total Unres- Res- Total
tricted tricted tricted tricted
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 178,536 - 178,536 180,221 1,549 181,770
Charitable activities 3 765,075 - 765,075 736,726 - 736,726
Other trading activities 4 1,186,132 - 1,186,132 997,052 - 997,052
Investment 5 39,466 - 39,466 41,523 - 41,523
Total income 2,169,209 - 2,169,209 1,955,522 1,549 1,957,071
Expenditure on:
Raising funds 6 974,504 - 974,504 816,923 - 816,923
Charitable activities 7 1,118,953 - 1,118,953 1,022,317 - 1,022,317
- -
Total expenditure 2,093,457 2,093,457 1,839,240 1,839,240
-
Net (expenditure) / income 75,752 75,752 116,282 1,549 117,831
Transfer between funds 15 - - - 1,549 (1,549) -
Other recognised gains
Unrealised (loss) / gain on
investment (2,218) - (2,218) 1,241 - 1,241
Net movement in
- -
funds for the year 73,534 73,534 119,072 119,072
Reconciliation of funds
- -
Total funds brought forward 1,348,811 1,348,811 1,229,739 1,229,739
Total funds carried forward 1,422,345 - 1,422,345 1,348,811 - 1,348,811
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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Page 26

The Palace Trust – Company Registration Number: 09404519 Balance Sheet and Consolidated Balance Sheet As at 31 December 2025

----- Start of picture text -----
2025 2025 2024 2024
£ £ £ £
Notes Group Charity Group Charity
Fixed assets
Tangible fixed assets 10 518,736 461,887 263,639 207,307
Investments 11 53,276 53,277 55,494 55,495
572,012 515,164 319,133 262,802
Current assets
Stock 12 42,446 - 25,636 -
Debtors 13 116,221 74,874 128,420 122,473
Cash at bank and in hand 920,926 866,064 1,113,706 996,612
1,079,593 940,938 1,267,762 1,119,085
Liabilities:
Creditors: amounts falling due within 14 (229,260) (179,297) (238,084) (121,037)
one year
Net current assets 850,333 761,641 1,029,678 998,048
Total net assets 1,422,345 1,276,805 1,348,811 1,260,850
The funds of the charity:
Unrestricted funds:
General funds 252,859 164,168 436,070 404,441
Designated funds 1,169,486 1,112,637 912,741 856,409
Total unrestricted funds 15 1,422,345 1,276,805 1,348,811 1,260,850
Restricted funds 15 - - - -
Total charity funds 1,422,345 1,276,805 1,348,811 1,260,850
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Page 27

The Palace Trust-eompany Reglstratlcffi Number.. 09404S19 Balance Sheet and Consolidated Balance Sheet (continued) As at 31 Decwnber 2025 The trust8es havè prepared group accounts in acurdance Yath se(aion 398 of tho Companies Act 20￿ and section 138 of the Charities Act 2011. These ac£ounls are prepared in ￿1￿lanCe the special provisions of Part 15 of tho Companies Act relating lo small cttnpanies and constitute the annual accounts reqLMred by the comp￿￿$ Ad 2LXJ3 and are for c￿o￿atiOn to members of the company. The notss on pages 30- 50 form part of these ac£ounts. Arproved by the Board for issue on......... ...... . and signed on their behalf by: Trustee Proihjced by Abert Goodm*) LLP Pago 28

The Palace Trust Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 December 2025

----- Start of picture text -----
2025 2025 2024 2024
£ £ £ £
Notes Group Charity Group Charity
Cash flows from operating activities
Net expenditure for the year 73,534 15,955 119,072 34,345
Adjustments to cash flows from non-cash items:
Depreciation and amortisation 10 79,602 58,125 74,859 50,620
Investment income 5 (39,466) (36,684) (41,523) (36,522)
Unrealised net (gain) / loss on investments 11 2,218 2,218 (1,241) (1,241)
- - -
(Profit) / loss on disposal of fixed assets 4,234
115,888 39,614 155,401 47,202
Working capital adjustments
Decrease / (increase) in stocks 12 (16,810) - 3,439 -
(Increase) / decrease in debtors 13 12,199 47,599 (47,623) 97,270
Increase / (decrease) in creditors 14 (8,824) 58,260 92,413 37,543
Net cash flow from operations 102,453 145,473 203,630 182,015
Cash flows from investing activities
Purchase of tangible fixed assets 10 (334,699) (312,705) (58,624) (33,715)
- - - -
Proceeds on disposal of fixed assets
Investment income 5 39,466 36,684 41,523 36,522
(295,233) (276,021) (17,101) 2,807
Net increase in cash and
cash equivalents (192,780) (130,548) 186,529 184,822
Cash and cash equivalents at the 1,113,706 996,612 927,177 811,790
beginning of the reporting period
Cash and cash equivalents at the 920,926 866,064 1,113,706 996,612
end of the reporting period
Cash & Cash equivalents reconciliation:
Cash at bank 920,926 866,064 1,113,706 996,612
Total cash & cash equivalents at the 920,926 866,064 1,113,706 996,612
end of the reporting period
----- End of picture text -----

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Page 29

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are:

1.1

Basis of accounting

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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Palace Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and all amounts are presented in £ sterling.

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Palace Enterprises (Wells) Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of The Palace Trust and Palace Enterprises (Wells) Limited.

In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.

A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

1.2 Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The company is incorporated in England and Wales and the company registered office is detailed on page 4, reference and administration details.

1.3 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 Trust 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 and have concluded that the Trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Trust’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting when preparing the financial statements.

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The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

1.4 Income

Income from grants and donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured. Where income has not been received for gift aid claims relating to donations received in the year, income is accrued.

Income from government grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where no conditions are attached to the grant income they are recognised within donations and legacies and where conditions relating to performance of services are attached, grant income is recognised in income from charitable activities within the Statement of Financial Activities.

Income from charitable activities includes membership and admissions income. Membership income is accounted for in full in the year that the membership commences. Admission income is recognised on a cash basis, in the year the income is physically received.

Income from other trading activities, including restaurant income, event income and rental income, is included in the period in which the group is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured.

The charity receives income from its subsidiary under gift aid and this is recognised upon physical receipt.

The charity notes the requirement of the SORP that large charities must report their results on an activities basis. The charity considers that they produce one activity – the operation of a heritage site– and therefore reports on that basis.

1.5 Interest receivable

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.

1.6 Expenditure

Resources expended are recognised on the accruals basis to match the period in which the expenditure was incurred.

Raising funds is expenditure incurred in generating the trading subsidiary funds and from other trading activities carried out by the trust.

Charitable activity expenditure comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and costs of an indirect nature necessary to support them. Grants payable are at the discretion of the Trustees. Governance costs are those costs associated with the governance arrangements of the charity and relate to general running of the charity as opposed to those costs associated with charitable activities.

1.7

Operating leases

The trust classifies the lease of properties as operating leases as title remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

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Page 31

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

1.8 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of Trust.

Restricted funds are from donations and grants in which the donor or funder has specified are to be solely used for particular areas of the Trust’s work or for specific projects being undertaken by the Trust.

1.9 Tangible fixed assets and depreciation-

Tangible fixed assets are stated at cost less depreciation. Fixed assets under £1,000 are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows:

Computer equipment 3 - 5 years straight line Furniture, fittings & equipment 2 - 10 years straight line Outdoor equipment 2 - 15 years straight line Catering equipment 5 - 10 years straight line Assets Under Construction No depreciation

1.10 Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Trust will not be able to collect all amounts due to according to the original terms of the receivables.

Other debtors comprise prepayments and accrued income. Prepayments arise from the payments for services prior to benefit from those services, and accrued income is amounts due for services provided, recognised at the point of provision of the services.

1.11 Stock

Stock consists of shop stock for resale and publication stocks. Stock is valued at the lower of cost and net realisable value, after making allowances for obsolete and slow moving stock.

1.12 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Creditors

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

1.14 Defined contribution pension

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as staff pension expense through the profit and loss when they are due.

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The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

1.15 Taxation

As a registered charity, the company is not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax (VAT) is partially recoverable by the company. Any irrecoverable VAT is added to the relevant cost and charged as an expense in the Statement of Financial Activities.

1.16 Financial Instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank and deposit accounts– is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

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Page 33

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

2 Donations and legacies

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2025 tricted tricted 2024
funds funds Total funds funds Total
£ £ £ £ £ £
Donations 25,116 - 25,116 13,001 1,549 14,550
Gift aid 49,384 - 49,384 62,220 - 62,220
Grants
Church Commissioners 102,000 - 102,000 105,000 - 105,000
- - - -
Other small grants 2,036 2,036
-
178,536 178,536 180,221 1,549 181,770
----- End of picture text -----

3 Income from charitable activities

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2025 tricted tricted 2024
funds funds Total funds funds Total
£ £ £ £ £ £
Entrance fees 696,225 - 696,225 660,192 - 660,192
- -
Membership income 68,850 68,850 76,534 76,534
- -
765,075 765,075 736,726 736,726
----- End of picture text -----

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Page 34

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

4 Other trading activities

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2025 tricted tricted 2024
funds funds Total funds funds Total
£ £ £ £ £ £
Restaurant income 719,546 - 719,546 719,546 - 719,546
Event income 62,591 - 62,591 86,126 - 86,126
Event site hire 43,120 - 43,120 43,120 - 43,120
- -
Shop income 255,954 255,954 30,475 30,475
- -
Event catering 12,722 12,722 12,722 12,722
- - - - - -
Solar panel income
Film income 82,667 - 82,667 82,667 - 82,667
Rental income 9,532 - 9,532 22,396 - 22,396
- -
1,186,132 1,186,132 997,052 997,052
----- End of picture text -----

5 Investment income

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2025 tricted tricted 2024
funds funds Total funds funds Total
£ £ £ £ £ £
Bank interest 39,466 - 39,466 41,523 - 41,523
----- End of picture text -----

6 Expenditure on raising funds

Costs of goods sold
Wages, salaries & agency
Other direct costs
Event costs
Commission sales expense		 Unres-
tricted
£
298,672
443,083
185,949
35,508
11,292		 Res-
tricted
£
-
-
-
-
-		 2025
Total
£
298,672
443,083
185,949
35,508
11,292
974,504		 Unres-
tricted
£
250,590
394,386
118,926
47,006
6,015		 Res-
tricted
£
-
-
-
-
-		 2024
Total
£
250,590
394,386
118,926
47,006
6,015
974,504 - 816,923 - 816,923

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Page 35

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

7 Charitable activities expenditure

----- Start of picture text -----
Unres- Res- 2025 Unres- Res- 2024
tricted tricted Total tricted tricted Total
£ £ £ £ £ £
Direct charitable activities
Maintenance costs 68,357 - 68,357 102,370 - 102,370
Garden maintenance 27,238 - 27,238 31,668 - 31,668
Public access & education 9,501 - 9,501 7,656 - 7,656
Support costs
- -
Wages & salaries 635,188 635,188 556,130 556,130
- -
Staff training & recruitment 39,267 39,267 24,318 24,318
Travel & entertainment 8,057 - 8,057 8,457 - 8,457
- -
Rent, rates, light & heat 76,129 76,129 63,978 63,978
- -
Cleaning costs 41,375 41,375 50,229 50,229
- -
Advertising 45,227 45,227 36,777 36,777
Office costs 88,225 - 88,225 69,464 - 69,464
- -
Subscriptions 2,811 2,811 2,598 2,598
- - - - - -
Legal fees
Professional fees 6,847 - 6,847 3,280 - 3,280
- - - - - -
Accountancy
- -
Bank charges 1,292 1,292 3,165 3,165
- -
Depreciation 58,125 58,125 50,620 50,620
- -
Loss on disposal of fixed asset 2,167 2,167 3,288 3,288
Governance
Auditors fees - audit 7,400 7,400 6,719 - 6,719
- -
Auditors fees- accountancy 1,747 1,747 1,600 1,600
- -
1,118,953 1,118,953 1,022,317 1,022,317
----- End of picture text -----

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Page 36

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

7 Expenditure (continued)

Depreciation of
owned assets
Auditors’ remuneration for:
Current auditors
- Audit services
- Other services		 2025
£
58,125
7,400
1,747		 2024
£
50,620
6,700
1,600
Charity		 2025
£
21,477
5,500
1,211		 2024
£
24,239
5,100
1,040
Subsidiary		 Total
Total
2025
2024
£
£
79,602
74,859
12,900
11,800
2,958
2,640

8 Trustee directors

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2024: £nil).

No trustees were reimbursed for travel expenses during the year (2024: one trustee - £434).

No charity trustee received payment for professional or other services supplied to the charity (2024: £nil).

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The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

9 Employees

----- Start of picture text -----
|||||| |---|---|---|---|---| |2025|2025|2024|2024| |Group|Charity|Group|Charity| |£|£|£|£| |Wages and salaries|947,021|550,029|856,433|487,120| |Social security costs|78,975|47,654|48,017|33,163| |Employer pension|52,275|37,505|41,498|31,279| |-|-| |Termination payments|4,568|4,568| |1,078,271|635,188|950,516|556,130|

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

Number of employees

The average monthly number of employees during the year, calculated on the basis of average headcount, was as follows:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2025|2025|2024|2024| |Group|Charity|Group|Charity| |No.|No.|No.|No.| |Average employee head count|61|30|47|23|

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

During the year, no employees were paid in respect of PILON or redundancy (2024: One employee was paid £1,522 in respect of PILON and £3,046 in respect of redundancy).

The number of employees whose annual emoluments were £60,000 (excluding employer pension and employer national insurance costs) or more were:

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |number|number| |£70,000 - £80,000|1|1|

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

This employee is not a member of the defined contribution pension scheme.

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Page 38

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

9 Employees (continued)

The key management personnel for the year, comprises the Chief Executive (2024: the Chief Executive). The total employee benefits (includes gross pay, employer pension and employer national insurance) of the key management personnel of the Trust were £91,275 (2024: £87,489).

Pension costs

The company operates a defined contribution pension scheme. The charge to the Statement of Financial Activities for the year is shown above.

Contributions totalling £nil (2024 - £nil) were payable to the schemes at the end of the year and are included in creditors.

10 Tangible fixed assets

Group
Cost
At 1 January 2025
Additions
Disposals
At 31 December 2025
Depreciation
At 1 January 2025
Charge for the year
Eliminated on disposals
At 31 December 2025
Net book value
At 31 December 2025
At 31 December 2024		 Computer
equipment
£
49,321
46,415
-		 Furniture,
fittings &
equipment
£
147,627
64,374
-		 Outdoor
equipment
£
203,184
102,522
-		 Assets
Catering
under
Total
equipment
construction
£
£
£
167,143
-
567,275
21,994
99,394
334,699
-
-
-
95,736 212,001 305,706 189,137
99,394
901,974
38,445
14,153
-		 60,492
28,354
-		 94,549
15,513
-		 110,150
-
303,636
21,582
-
79,602
-
-
-
52,598 88,846 110,062 131,732
-
383,238
43,138 123,155 195,644 57,405
99,394
518,736
10,876 87,135 108,635 56,993
-
263,639

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Page 39

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

10 Tangible fixed assets (continued)

----- Start of picture text -----
Charity Furniture, Assets
Computer fittings & Outdoor Catering under Total
equipment equipment equipment equipment construction
£ £ £ £ £ £
Cost
-
At 1 January 2025 49,321 147,627 203,184 23,991 424,123
Additions 46,415 64,374 102,522 - 99,394 312,705
- - - - - -
Disposals
At 31 December 2025 95,736 212,001 305,706 23,991 99,394 736,828
Depreciation
-
At 1 January 2025 38,445 60,492 94,549 23,330 216,816
Charge for the year 14,153 28,354 15,513 105 - 58,125
- - - - - -
Eliminated on disposals
At 31 December 2025 52,598 88,846 110,062 23,435 - 274,941
Net book value
At 31 December 2025 43,138 123,155 195,644 556 99,394 461,887
At 31 December 2024 10,876 87,135 108,635 661 - 207,307
----- End of picture text -----

11 Investments

Group
Unlisted investments
Opening balance
Unrealised (loss) / gain
Closing balance
Historical cost of investments		 2025
£
55,494
(2,218)
53,276
33,593		 2024
£
54,253
1,241
55,494
33,593

The unlisted investments comprise 2,400 shares in the Central Board of Finance of the Church of England Investment Fund.

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Page 40

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

11 Investments (continued)

----- Start of picture text -----
Charity 2025 2024
£ £
Unlisted investments
Opening balance 55,494 54,253
Unrealised (loss) / gain (2,218) 1,241
Closing balance 53,276 55,494
Historical cost of investments 33,593 33,593
Charity investments at market value comprise:
Total Total
2025 2024
£ £
Shares in unlisted investments 53,276 55,494
Shareholding in Palace Enterprises (Wells) Limited
Ordinary shares of £1 each 1 1
53,277 55,495
----- End of picture text -----

Palace Enterprises (Wells) Limited (company no 03013064) was incorporated 23 January 1995 and is a wholly owned trading subsidiary of The Palace Trust. The parent charity holds 100% of the issued share capital and 100% of the voting rights of the subsidiary trading company.

The principal activities of the company is to provide a fully catered venue for wedding receptions and other events, together with a catering service in the Bishop’s Table Restaurant. The registered office is the same as that of the Trust, detailed on page 1. The subsidiary gift aids some of its taxable profits to The Palace Trust, paying corporation tax on any profits retained, and files audited accounts with the Registrar of Companies.

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Page 41

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

11 Investments (continued)

A summary of the trading results is shown below:

----- Start of picture text -----
2025 2024
£ £
Turnover 1,170,533 951,786
Cost of sales (744,713) (646,859)
Gross profit 425,820 304,927
Administrative expenses (355,356) (220,201)
Operating profit 70,464 84,726
Investment income - -
Profit before tax & profit for the financial year 70,464 84,726
Retained earnings brought forward in subsidiary 87,961 3,235
Gift aid to The Palace Trust (12,883) -
Retained earnings carried forward in subsidiary 145,542 87,961
The assets and liabilities were:
Fixed assets 56,849 56,332
Current assets 203,334 185,632
Current liabilities (114,640) (154,002)
Total net assets 145,543 87,962
Called up share capital 1 1
Profit and loss reserve 145,542 87,961
145,543 87,962
----- End of picture text -----

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Page 42

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

12
Stocks
Goods for resale
13
Debtors
Trade debtors
Prepayments and accrued income
Amounts owed by group undertakings		 2025
Group
£
42,446		 2025
Charity
£
-		 2024
Group
£
25,636		 2024
Charity
£
-
2025
Group
£
60,301
55,920
-
116,221		 2025
Charity
£
20,077
54,797
-
74,874		 2024
Group
£
59,789
68,631
-
128,420		 2024
Charity
£
22,991
62,527
36,955
122,473

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Page 43

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

14 Creditors: Amounts falling due within one year

----- Start of picture text -----
2025 2025 2024 2024
Group Charity Group Charity
£ £ £ £
Trade creditors 81,789 45,699 50,961 20,103
Other creditors 17,017 15,874 32,489 31,759
Accruals and deferred income 94,256 27,960 104,624 54,375
Taxation and social security 36,198 25,285 50,010 14,800
- - -
Amounts owed to group undertakings 64,479
229,260 179,297 238,084 121,037
Deferred Income
2025 2025 2024 2024
Group Charity Group Charity
£ £ £ £
Deferred income at 1 January 2025 45,367 13,125 33,695 8,759
Released from previous years (45,367) (13,125) (33,695) (8,759)
Resources deferred in the year 56,463 6,446 45,367 13,125
Deferred income at 31 December 2025 56,463 6,446 45,367 13,125
----- End of picture text -----

At the balance sheet date the trust was holding funds received in advance for events to be held in 2026.

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Page 44

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

15 Summary of movement in funds- Group

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & gains balance
£ £ £ £ £
Unrestricted funds - Group
General 436,070 2,169,209 (2,013,855) (338,565) 252,859
Designated funds - Group
- -
Palace interpretation 199,102 1,648 200,750
Trust Reserve 450,000 - - - 450,000
Fixed assets 263,639 - (79,602) 334,699 518,736
-
Total designated funds 912,741 (79,602) 336,347 1,169,486
Restricted funds
- - -
Mobility Scooter
Total funds 1,348,811 2,169,209 (2,093,457) (2,218) 1,422,345
----- End of picture text -----

Summary of movement in funds- Charity

Unrestricted funds - Charity
General
Designated funds - Charity
Palace interpretation
Trust Reserve
Fixed assets
Total designated funds
Restricted funds
Mobility Scooter
Total funds		 Opening
balance
£
404,441		 Income
£
1,183,924		 Expenditure
£
(1,107,626)		 Transfers
Closing
& gains
balance
£
£
(316,571)
164,168
199,102
450,000
207,307		 -
-
-		 -
-
(58,125)		 1,648
200,750
-
450,000
312,705
461,887
856,409 - (58,125) 314,353
1,112,637
- - - -
-
1,260,850 1,183,924 (1,165,751) (2,218)
1,276,805

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Page 45

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

Summary of movement in funds – Group (2024)

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & gains balance
£ £ £ £ £
Unrestricted funds - Group
General 266,036 1,955,522 (1,764,381) (21,107) 436,070
Designated funds - Group
- -
Palace interpretation 229,595 (30,493) 199,102
Trust Reserve 450,000 - - - 450,000
Fixed assets 284,108 - (74,859) 54,390 263,639
-
Total designated funds 963,703 (74,859) 23,897 912,741
Restricted funds
- - -
Mobility Scooter 1,549 (1,549)
Total funds 1,229,739 1,955,522 (1,839,240) 2,790 1,348,811
----- End of picture text -----

Summary of movement in funds – Charity (2024)

Unrestricted funds - Charity
General
Designated funds - Charity
Palace interpretation
Trust Reserve
Fixed assets
Total designated funds
Restricted funds
Mobility Scooter
Total funds		 Opening
balance
£
322,698		 Income
£
1,103,852		 Expenditure
£
(1,021,677)		 Transfers
Closing
& gains
balance
£
£
(432)
404,441
(30,493)
199,102
-
450,000
33,715
207,307
3,222
856,409
(1,549)
-
1,241
1,260,850
229,595
450,000
224,212		 -
-
-		 -
-
(50,620)
903,807 - (50,620)
- 1,549 -
1,226,505 1,105,401 (1,072,297)

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Page 46

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

Summary of movement in funds (continued)

Designated funds

16 Analysis of assets between funds – Group

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 53,276 270,176 (70,593) - 252,859
- -
Designated funds 518,736 650,750 1,169,486
Restricted funds - - - - -
As at 31 December 2025 572,012 920,926 (70,593) - 1,422,345
----- End of picture text -----

Analysis of assets between funds – Charity

Unrestricted funds
Designated funds
Restricted funds
As at 31 December 2025		 Tangible
fixed
assets
£
53,277
461,887
-		 Cash at
bank and
in hand
£
215,314
650,750
-		 Other net
current
assets/
(liabilities)
£
(104,423)
-
-		 Creditors
more than
one year
Total
£
£
-
164,168
-
1,112,637
-
-
-
1,276,805
515,164 866,064 (104,423)

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Page 47

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

Analysis of assets between funds – Group – (2024)

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 55,494 464,604 (84,028) - 436,070
- -
Designated funds 263,639 649,102 912,741
Restricted funds - - - - -
As at 31 December 2024 319,133 1,113,706 (84,028) - 1,348,811
----- End of picture text -----

Analysis of assets between funds – Charity – (2024)

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 55,495 347,510 1,436 - 404,441
- -
Designated funds 207,307 649,102 856,409
Restricted funds - - - - -
As at 31 December 2024 262,802 996,612 1,436 - 1,260,850
----- End of picture text -----

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Page 48

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

17 Income and expenditure account of the Trust

The company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.

Prior to gift aid amounts received from the subsidiary, The Palace Trust has net income for the year of £3,072 (2024 – net income of £34,346) based on income of £1,183,924 (2024 - £1,104,213). Gift aid distributions from trading subsidiary of £12,883 (2024: £nil) were received in the year.

18 Obligations under leases

Operating leases-

The total future minimum rentals payable under non-cancellable operating leases funded by unrestricted funds are as follows:

----- Start of picture text -----
2025 2024
£ £
Other
Expiry date:
Within one year 16,872 1,926
Within two and five years 8,118 6,240
24,990 8,166
----- End of picture text -----

In addition to the above, the Trust has a non-exclusive licence (by way of a management agreement) to occupy the Palace and the gardens with the Church Commissioners to the end of 2035.

19 Related party transactions

The charity has taken advantage of the exemption in FRS 102 “Related Party Disclosures” from disclosing transactions with other members of the group.

The chief executive, M Kidd, was charged £5,500 in rent for the use of The Gardeners Flat during 2024 and did not occupy the premises in during 2025. The rent was collected and, in turn, paid onto the Church Commissioners. A balance of £nil (2024: £nil) was outstanding to The Palace Trust at the year end. This is considered to be a market rent.

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Page 49

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2025

20 Financial instruments

Financial assets that are fair value
through income & expenditure account
Financial assets that are debt
instruments measured at amortised
cost
Financial liabilities measured at
amortised cost
Items of income, expenditure, gain and
2025
Financial assets that are fair value
through income & expenditure account
Financial liabilities measured at
2024
Financial assets that are fair value
through income & expenditure account
Financial liabilities measured at
amortised cost
amortised cost
Financial assets measured at
amortised cost
Financial assets measured at
amortised cost		 2025
2025
Group
Charity
£
£
53,276
53,277
1,017,505
820,303
1,070,781
873,580
132,340
63,771
132,340
63,771
loss (group and charity)
Income
Expense
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2024
Group
£
55,494
1,221,374
1,276,868
142,707
142,707
Net gains
£
-
-
-
-
1,241
-
-
1,241		 2024
Charity
£
55,495
1,099,269
1,154,764
64,987
64,987
Net losses
£
(2,218)
-
-
(2,218)
-
-
-
-

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Page 50