Company no. 10036700 Charity no. 1165868
## **The REME Charity Report and Audited Financial Statements 31 December 2025**
## **The REME Charity**
## **Reference and administrative details**
**For the year ended 31 December 2025 Company number** 10036700 **Charity number** 1165868 **Registered office and** The REME Charity **operational address** Regimental Headquarters REME MoD Lyneham Lyneham Chippenham SN15 4XX **Trustees** Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Brig C P Phillips CBE Chair Cdr M Ashton RN Lt Col A Brown Capt H Burns J Foster Col (Retd) R Fram MC Maj P C D Hembery Mr T Hirst MSc CEng Col D G Scott ADC (retired 15 April 2025) Maj A Shand CEng P Tumim **Chief executive officer and** Mrs Barbel Harris **company secretary Bankers** Holt's Military Banking The Royal Bank of Scotland Plc 200 Fowler Avenue Fowler Business Park Farnborough GU14 7JP Sparkasse Berliner Sparkasse Alexanderplatz 2 10178 Berlin Lloyds Bank Plc 25 Gresham Street London EC2V 7HN
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## **The REME Charity**
## **Reference and administrative details**
## **For the year ended 31 December 2025**
**Solicitors** Wilsons Solicitors LLP Alexandra House St Johns Street Salisbury Wilts SP1 2SB **Investment advisor and** Sarasin and Partners LLP **nominee company** Juxton House 100 St Paul’s Churchyard London EC4M 8BU **Auditors** Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
The trustees present their report along with the financial statements of the charity for the year ended 31 December 2025. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Articles of Association, the Charities Act 2011, the Companies Act 2006, the Charities (Accounts and Reports) Regulations, and the Charities Statement of Recommended Practice (FRS102) effective 1 January 2019.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The charity is governed by the Articles of Association of The REME Charity dated 2 March 2016. The trustees reviewed and amended the organisations Charity Governance Manual in 2025. The Corps of Royal Electrical and Mechanical Engineers (REME) has been supported by a charity since 1945. The REME inaugural charities were the REME Benevolent Fund and REME Scholarship funds. Over the years, these charities have been linked, closed and joined by others. Today, The REME Charity is the headline charity which has the REME Central Charitable Trust (1165868-1), the REME Benevolent Fund (1165868-2) and the REME Sports Association (1165868-4) linked to it. The REME Museum (272740) is included in these group accounts, as it is governed by the same Trustee Board and is administered by the REME Charity. The REME Trading Company is incorporated and is controlled by the Charity.
The REME Charity closely monitors the Corps’ military operational activities and any additional support REME personnel, past or present, may require. Every spring, the Board revisits the Charity’s strategy and mid-term objectives to ensure our activities meet those emerging needs and that we protect our long-term viability. To that end we regularly examine our impact metrics and administer surveys to remain relevant to our beneficiaries.
We strive to increase our reach and impact and good two-way communication with the REME Family. In 2025 we visited most of our 9 Battalions in their respective homes and attended Family Days and Health Fairs and also attended various Veteran gatherings across the UK. This increased our visibility and offered insights into how we can be most supportive of our beneficiaries.
## **Recruitment and appointment of Trustees**
Board members newly recruited in 2024 have now firmly bedded in. Succession and further diversification remain an agenda item for our meetings and more work is planned to better reflect and represent the diversity amongst our beneficiaries.
New Trustees are offered training, access to newsletters and relevant literature and are supplied with pertinent information by the CEO, to keep up to date with current regulatory, reporting and compliance related matters, thereby enabling them to fulfil their obligations.
## **Organisational structure and governance**
The Board of Trustees is an independent decision-making governing body which meets at least three times a year. The board is led by a Chair. Trustees are given responsibility for different areas of the business and chair separate sub-committees to monitor performance and exercise governance. The Finance and Investment Committee meets quarterly. The execution of the day to day running of the business is delegated to the Chief Executive Officer, with delegated spending powers defined in the Governance Manual.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
## **Risk management**
The Charity maintains a risk register which is reviewed biannually by a sub-committee. Risks are categorised in five main areas: Impact, Financial Sustainability, Compliance, Operational, and Hazards and Reputation. A reduction in income, both from the supporter base within the Corps through the Day’s Pay Scheme (payroll giving), and a reduction in investment income due to volatile markets, poses the biggest risk to the Charity.
## **OBJECTS AND ACTIVITIES**
## **Public benefit**
We provide public benefit by assisting REME regular and reserve personnel to more effectively perform their roles and duties within the British Army. We support serving personnel’s families and the retired veteran community and their families by enhancing esprit de corps through promoting the concept of support to the REME family for life. We do this by providing funding for benevolence, welfare, communications, activities, social gatherings and events. Our assistance enables Service personnel to face the challenges and dangers associated with military service by developing and maintaining teamwork, skills, fitness, mental wellbeing and morale.
We promote the efficiency of the armed forces of the Crown by enhancing the British Army’s capability to undertake the roles demanded of it, including the defence of the United Kingdom and its interests. By supporting the wider REME family, we assist the Government in fulfilling its promise in the Armed Forces Covenant to treat serving personnel, veterans and their families fairly.
Through our support to the REME Museum, we preserve the heritage of the Corps of REME through collecting and conserving appropriate artefacts, memorabilia and memories for future generations and communicate the story of REME and the people who served in the Corps to the visiting public and to a wider audience on-line.
## **Objects**
The REME Charity is independent of military authorities. It undertakes a crucial function as the needs and ambitions of the REME family go beyond the bounds of the resources and policies of the Army and MOD. The three pillars of our support to the Family are:
- 1) To promote the efficiency of REME and foster esprit de corps;
- 2) To relieve either generally or individually necessitous persons being members or former members of REME or their dependants (beneficiaries); and
- 3) To support charitable purposes for the benefit of beneficiaries.
These objects allow the charity to provide support to REME regular, reserve and retired personnel and their families. This is done though the provision of grants to groups or individuals and through fostering connections which promote REME efficiency, ethos and comradeship, giving members a sense of belonging to the REME Family.
## **STRATEGY**
The Board of Trustees articulated the REME Charity Strategy 2022 – 2025, which details how the Charity aims to interpret and fulfil its objectives, prioritise resources and ensure capabilities for the next 3 years. It forms the basis of the workplan, recruitment and associated activities for the executive. The Strategy will be reviewed in 2026.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
## **2025 charitable objectives, themes and activities** Welfare
The number of welfare cases we financially supported reduced somewhat in 2025 to 426 from 461 in 2024. Most applicants attributed their reason for contacting us to unemployment (33.5%) and related benefit issues, followed by Mental Health issues (11.25%) and other disability issues (8.7%). Most notable is the increase of financial support the Charity has been lending to international flights for our overseas serving personnel (10%). Furthermore, we saw an increased need to support families in obtaining private diagnoses (37 in 2025) for conditions such as ADHD or Autism, as waiting lists in schools are long and a parent’s operational postings can significantly extend that waiting period. Overall, the proportion of serving personnel requiring the Charity’s support is steadily increasing, amounting to a third of applications in 2025.
Our total welfare case expenditure amounted to £388,954 (£386,743 in 2024; £408,695 in 2023; £227,632 in 2022), with average grants of £913 (£655 in 2024; £718 in 2023; £605 in 2022). The Board of Trustees recognises the immense contribution the Army Benevolent Fund makes to our welfare cases and in 2025 renewed our commitment to donate £85,000 in support of their welfare work.
In 2025, 20 of our over 180 REME Responders were actively engaged in the support of REME Family members. The Responders form part of our flagship initiative ‘Lifting the Decks.’ Founded in 2022, REME Responders stand ready to support their comrades, with good geographical coverage, able to spring into action, wherever support is needed. This can come in the shape of comrade visits, practical help with chores or transport, or result in a referral to specialist services, often preventing escalation and crises. The vast majority of volunteers are DBS checked and Safeguarding trained. The Responders also have a closed social media group, a regular newsletter and are offered training opportunities.
‘Lifting the Decks’ has become an institution since its inception in 2021 and attracts major fundraising events, such as the ‘Virtual 10k’ in May (for the first time a proper, in-person race in Lyneham) and the ‘Lifting the Decks Challenge’ in October. Those events are led by serving REME soldiers and have raised £60,553 this year, a massive increase to 2024 (£33,141). Those events are well supported by the Corps and help to spread our message of support more widely. The programme offers counselling access, respite breaks, comrade visits and signposting to professional support, designed to tackle problems timely and presenting choice to the service user. In addition, the Corps Welfare Officer undertakes comrade visits, supporting REME Family members, and connects the REME Charity to the serving community.
## Esprit de Corps
Corps wide events are imperative for Esprit de Corps. The Charity strives to facilitate gathering of discrete groups as well as offering occasions for both serving and retired personnel. We support serving REME soldiers’ team sports, Adventurous Training and Enterprise, veteran reunions, Female REME Conferences, mess events and other gatherings to celebrate important dates, such as St Eligius Day, promote cohesion and instil a sense of belonging.
36 sports teams were allocated £374,660 an increase of £16,225 from 2024. The annual grassroots skiing event EXERCISE SUPREME GLACIER took place once again in December and resulted in a record number of REME skiers qualifying for the Army Championships. The Charity was also happy to financially support 100 Snowboarders, offering many a first experience on alpine slopes.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
The REME Association gathered for seven centrally organised events in 2025. We had a great turnout for the annual Reunion at the beautiful Walton Hall in Warwickshire and the sun shone on serving and reserve personnel, veterans and family members at the Corps Memorial event at the National Memorial Arboretum in late September.
22 bereaved families were supplied with coffin drapes, 20 Buglers, 15 Standard Bearers, berets, flags etc. at veteran’s funerals. Coffin drapes have been entrusted to the Scotland and the Northern Ireland branches of the REME Association to be supplied to funerals in their region. Buglers and Standard Bearers are volunteers who give up their time to honour their comrades. The service is coordinated by the Welfare team and is highly rated by bereaved families.
The REME Association Job Agency (RAJA) once again held two job fairs in 2025, one in the South (Lyneham) and one in the North (Catterick) of the UK. The events attracted over 106 companies and were attended by nearly 200 soldiers in their career transition period. The service supported 601 service leavers throughout the year.
The REME Association, the REME Institution, the REME Messes as well as the REME Museum receive annual grants from the Charity. Any unused funds return to the Charity.
‘The Craftsman’ magazine continued to be distributed to a 4,500 strong readership.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Income generation**
The Charity continued to successfully promote subscriptions to the Day’s Pay Scheme, with contributions of over 86% from regular soldiers and 96% from officers. Reservists’ participation continued to increase. The income from the scheme constituted 45% of the overall income in 2025. The Charity is diversifying income streams and thus actively mitigating associated risks.
In 2025 the Charity was remembered in the wills of two REME veterans, amounting to legacy income of £202,173. This includes funds received in memory of Cfn Pearce, a dedicated REME Reservist. The Cfn Pearce Fund was instated for the benefit of our Reserve Battalions, with disbursement starting in 2026.
The Charity, together with the Halsden Centre, has embarked on a four year research project into Service Charities Equality Insights Project (SCEIP), sponsored by the Armed Forces Covenant Fund Trust. During 2025, we received £96,962 to finance the project.
The Charity holds an account portfolio with Sarasin & Partners. At 31 December 2025 the Sarasin main portfolio stood at: £15,991,499 (2024: £15,570,335), resulting in an income of over £400k in 2025, which constitutes IRO 20% of our annual income.
In January 2025, The REME Trading Co took on the direct management of Crowns Café, situated in the REME Museum, and hitherto managed by a third party. Staff was subject to TUPE and transferred into the REME Charity. This resulted in the cost of raising funds rising from 11.4% to 15.2%, staff headcount increased to 40 and trading income (note 6) has increased by 71%.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
## **FINANCIAL REVIEW**
## **Income**
The total income of the REME Charity for the year ended 31 December 2025 was £3,071,624 (2024: £2,831,837) which, in addition to income generation channels and activities mentioned above includes £201,393 of services and facilities donated by the MoD.
## **Expenditure**
Expenditure for the year was £2,969,981 and comprised £1,133,352 in direct esprit de corps activity, £600,941 in grants, £569,441 on the museum, £253,573 on support costs and £412,674 on income generation cost.
## **Reserves policy**
The Trustees review the reserves policy and quantum of related investments during the annual budgetary cycle in the autumn of each year. The aim is to ensure the amount held in reserves and investments is adequate to mitigate against potential financial threats and to provide a secure base to meet future requirements and fulfil the objectives of the Charity over the long term.
The Charity identified a number of risks potentially impacting current income streams:
- The Charity continues to be dependent on current members of the Corps supporting the Day’s Pay Giving Scheme (46% of total income). Any major change in the structure or strength of the Corps could impact the levels of future support available to Corps members; The Charity is reliant on the MoD administering the Day’s Pay Giving Scheme and for the provision of infrastructure, utilities, IT systems, office supplies and a proportion of staff costs. If these MoD donated services were to be withdrawn, the Charity would suffer a strategic shock for which adequate reserve provision should be made; and
- The performance of the Charity's investment portfolio is subject to global market movements. While the present value of the portfolio produces (generally) IRO 20% of total required income, the value and/or dividend income can fluctuate, potentially markedly, due to market volatility.
To mitigate the identified financial risks, adequate reserves are required to meet the Charity’s objectives. Reserves should be able to meet potential strategic shocks and increases in demands whilst also enabling the Trustees to deliver the Charity’s objectives. The Charity’s commitment is to support the REME Family now and particularly in the future.
Therefore, the Trustees have assessed the level of reserves and related investments required to meet these contingencies and mitigate against the current risk profile, to be in the range of £18 million.
The Charity’s reserves are composed of designated funds to secure long term support of the charitable objectives: Welfare & Benevolence (32.5%), Promoting the efficiency of the Armed Forces (10%), Sports and Adventurous Training (37%) and Esprit de Corps (13.5%). A further 7% is designated to cover future governance and administrative cost. These designations are based on historic demand levels.
## **Funds in deficit**
The Charity has no deficits.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
## **Financial position**
The trustees consider that the assets held by the charity enable the fund to meet its foreseen future obligations. Given the charity's current level of reserves, including investment assets of over £16M, the trustees are convinced that the charity will continue as a going concern at current spending levels for a period of at least 10 years from the date on which these financial statements are approved. The trustees therefore consider it appropriate to adopt the going concern basis of preparation of the accounts, as detailed in note 1(c) to the financial statements.
## **Dependency on donors**
The viability of the Charity is highly dependent on the goodwill and donations of REME serving soldiers and veterans, with their contribution making up over half of the Charity’s income.
The Charity’s targeted marketing campaigns and increased communications in 2025 and 2024 have led to increased support through payroll-giving, with an almost 100% sign-up rate from new recruits. The diversification of income streams through increased fundraising activity has further mitigated potential risk. Our plans for 2026 include a legacy and in-memoriam campaign.
## **Fundraising**
Fundraising for the REME Charity is undertaken by our supporters. They participate in runs, challenges or hold fundraising events, generating much appreciated, additional income. To support those activities, the Charity subscribes to ‘Enthuse’, a fundraising platform, where individual fundraisers can align their efforts to the objectives of the Charity. The REME Charity does not host fundraising events but we are always happy to attend events created by our beneficiaries and to support their efforts through social media. We do not engage a designated fundraiser nor external, commercial fundraisers, and have received no complaints in relation to our fundraising practices in
## **Funds held as custodian trustee**
No funds are held as custodian trustee.
## **PLANS FOR FUTURE PERIODS**
The Board of Trustees devised the REME Charity Strategy 2022-2025 during a workshop in early 2022 and thoroughly reviewed its impact annually. In 2026, this strategy will be revisited and adapted to the wants and needs of our beneficiaries and the challenges this might pose to the organisation.
The Executive Implementation plan is derived from the strategic objectives and is monitored and its impact measured, in regular reviews. Especially the communication efforts detailed in the Strategic Plan have exceeded targets and have contributed to increased uptake of the Charity’s support offer to its beneficiaries as well as regular giving. In 2026 we will move our digital communications to the Military App, which will further blend the Charity’s communications with those of the wider Corps, ensuring that messages are clearly and timely disseminated to the entire REME Family.
The Charity’s vision:
_**“Our vision is to be the source of support, belonging and connection to the REME Family, now and always”.**_
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
A series of strategic objectives, whose fulfilment, taken together, will realise the Charity’s vision, are expressed as an end state for the charity at the conclusion of the plan. The end state will be a charity that:
- Is known, relevant and trusted by the whole REME Family and other organisations; Balances its outputs today with financial resilience tomorrow; Exists to enhance the wellbeing of the many and of the one; Promotes and enhances the reputation and legacy of the Corps; and Presents and promotes Corps heritage to engender a sense of belonging and identity.
## **STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES**
The Trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
The Trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the Trustees are required to:
- select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees 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 auditors are aware of that information.
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.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.
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## **The REME Charity**
## **Report of the Trustees**
## **For the year ended 31 December 2025**
## **Auditors**
Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.
These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
Approved by the trustees on 26 May 2026 and signed on their behalf by
Brigadier Clare Phillips CBE - Chair
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## **Independent auditors' report**
## **To the members of**
## **The REME Charity**
## **Opinion**
We have audited the financial statements of The REME Charity (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related 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 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).
## In our opinion, the financial statements:
- give a true and fair view of the state of the group and parent charity's affairs as at 31 December 2025 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity 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 the provisions available for small entities, in the circumstances set out in note 9 to the financial statements, 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.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity 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.
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## **Independent auditors' report**
## **To the members of**
## **The REME Charity**
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.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report (incorporating the strategic report and the directors’ report) have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us;
- the parent charity financial statements are not in agreement with the accounting records and returns;
- certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or
- the trustees of the parent charity were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **Responsibilities of the trustees**
As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.
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## **Independent auditors' report**
## **To the members of**
## **The REME Charity**
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
- identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
- detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
- designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
- testing the appropriateness of journal entries;
- assessing judgements and accounting estimates for potential bias; reviewing related party transactions; and
testing transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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## **Independent auditors' report**
## **To the members of**
## **The REME Charity**
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.
## **Use of our report**
This report is made solely to the 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 members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Date: 26 May 2026
**Dougal Howard ACA (Senior Statutory Auditor)** For and on behalf of:
## **GODFREY WILSON LIMITED**
Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
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## **The REME Charity**
**Consolidated statement of financial activities** _(incorporating an income and expenditure account)_
## **For the year ended 31 December 2025**
|Restricted
Note
£
**Income from:**
Donations and legacies
3
610,935
Charitable activities
5
-
Other trading activities
6
124,494
Investments
7
-
**Total income**
735,429
**Expenditure on:**
Raising funds
-
Charitable activities:
Benevolence grants
36,585
Esprit de corps
492,262
Museum
-
**Total expenditure**
8
528,847
206,582
Net gains on investments
16
9,779
**Net income**
216,361
Transfers between funds
(32,310)
**Net movement in funds**
9
184,051
**Reconciliation of funds:**
Total funds brought forward
509,711
**Total funds carried forward**
693,762
**Net income / (expenditure) before**
**investment gains / (losses)**|Unrestricted
£
1,440,386
107,495
366,190
422,124
2,336,195
451,197
620,454
746,886
622,597
2,441,134
(104,939)
403,889
298,950
32,310
331,260
18,685,568
19,016,828|**2025**
**Total**
**£**
**2,051,321**
**107,495**
**490,684**
**422,124**
**3,071,624**
**451,197**
**657,039**
**1,239,148**
**622,597**
**2,969,981**
**101,643**
**413,668**
**515,311**
**-**
**515,311**
**19,195,279**
**19,710,590**|Restated
2024
Total
£
1,983,224
108,811
312,087
427,715
2,831,837
305,774
582,679
1,214,118
569,417
2,671,988
159,849
1,226,604
1,386,453
-
1,386,453
17,808,826
19,195,279|
|---|---|---|---|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 22 to the accounts.
The prior period statement of financial activities has been restated due to a change in accounting policy as described in note 28 to the financial statements.
15
## **The REME Charity**
## **Consolidated balance sheets**
## **As at 31 December 2025**
|Note
**Fixed assets**
Tangible assets
13
Heritage assets
14
Mixed motive investments
15
Fixed asset investments
16
**Current assets**
Stock
17
Debtors
18
Cash at bank and in hand
**Liabilities**
Creditors due within 1 year
19
**Net current assets**
**Total assets less current liabilities**
19
**Net assets**
21
**Funds**
22
Restricted funds
Unrestricted funds
Designated funds
General funds
**Total charity funds**
Creditors due after more than 1
year|**The group**
**2025**
**£**
**875,652**
**2,114,459**
**41,354**
**15,991,499**
**19,022,964**
**248,998**
**137,146**
**547,911**
**934,055**
**(233,325)**
**700,730**
**19,723,694**
**(13,104)**
**19,710,590**
**693,762**
**1,901,646**
**17,115,182**
**19,710,590**|Restated
The group
2024
£
865,813
2,114,459
41,354
15,570,335
18,591,961
241,629
122,471
360,522
724,622
(108,200)
616,422
19,208,383
(13,104)
19,195,279
509,711
2,098,947
16,586,621
19,195,279|**The charity**
**2025**
**£**
**627,542**
**747,361**
**41,354**
**15,991,499**
**17,407,756**
**172,695**
**194,765**
**452,904**
**820,364**
**(558,397)**
**261,967**
**17,669,723**
**(13,104)**
**17,656,619**
**691,437**
**-**
**16,965,182**
**17,656,619**|Restated
The charity
2024
£
616,667
747,361
41,354
15,570,335|
|---|---|---|---|---|
|||||16,975,717|
|||||166,134
161,822
233,970|
|||||561,926
(430,536)|
|||||131,390|
|||||17,107,107
(13,104)|
|||||17,094,003
507,386
150,000
16,436,617|
|||||17,094,003|
These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
Approved by the trustees on 26 May 2026 and signed on their behalf by
Brigadier Clare Phillips CBE - Chair
16
## **The REME Charity**
## **Consolidated statement of cash flows**
## **For the year ended 31 December 2025**
|**Cash flows from operating activities:**
Net movement in funds
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interest and rents from investments
Increase in stock
(Increase) / decrease in debtors
Increase in creditors
**Net cash used in operating activities**
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of heritage assets
Purchase of investments
Disposal proceeds on sale of fixed asset investments
**Net cash provided by investing activities**
**Increase in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2025**
**£**
**515,311**
**91,503**
**(413,668)**
**(422,124)**
**(7,369)**
**(14,675)**
**125,125**
**(125,897)**
**422,124**
**(101,342)**
**-**
**(27,200)**
**19,704**
**313,286**
**187,389**
**360,522**
**547,911**|Restated
2024
£
1,386,453
86,344
(1,226,604)
(427,715)
(8,767)
33,174
14,251|
|---|---|---|
|||(142,864)|
|||427,715
(17,985)
(188,685)
(259,429)
263,018|
|||224,634|
|||81,770
278,752|
|||360,522|
## **Analysis of changes in net debt**
The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.
17
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **1. Accounting policies**
## **a) Basis of preparation**
The REME Charity is a charitable company limited by guarantee registered in England and Wales. The registered office address is:
The REME Charity Regimental Headquarters REME MoD Lyneham Lyneham Chippenham SN15 4XX
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in 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 REME Charity 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 policies.
## **b) Group accounts**
These financial statements consolidate the results of the charitable company and its whollycontrolled subsidiaries, The Corps of Royal Electrical and Mechanical Engineers Museum (charity registration number 272740) and The REME Trading Company Limited (company number 10258502) on a line by line basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the parent and its subsidiaries are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
- In accordance with Charity Commission guidance, all linked charities per a Scheme dated 28 October 2016 are required to be reported as restricted funds. The linked charities comprise: Royal Electrical and Mechanical Engineers Central Charitable Trust (charity no. 1165868-1); The Royal Electrical and Mechanical Engineers' Benevolent Fund (charity no. 1165868-2); Royal Electrical and Mechanical Engineers' Hotel Fund (charity no. 1165868-3 - now closed and removed from the register); and
- The General Fund of the Royal Electrical and Mechanical Engineers Sports Association (charity no. 1165868-4).
## **c) Going concern basis of accounting**
The accounts have been prepared on the assumption that the charity and group is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.
18
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **1. Accounting policies (continued)**
## **d) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from the government and other grants, whether 'capital' grants or 'revenue' 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.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Income received for advertising in advance of publication is deferred until criteria for income recognition are met.
## **e) Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **f) 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.
## **g) Funds accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.
19
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **1. Accounting policies (continued)**
## **h) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **i) Allocation of support and governance costs**
- Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between costs of raising funds and expenditure on charitable activities based on the proportion of direct costs, as follows:
||**2025**|2024|
|---|---|---|
|Raising funds|**15.2%**|11.4%|
|Charitable activities:|||
|Benevolence grants|**22.1%**|21.9%|
|Esprit de corps|**41.7%**|45.4%|
|Museum|**21.0%**|21.3%|
## **j) Grants payable**
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
## **k) Tangible fixed assets**
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
|Yachts|10 years straight line to residual value of £70,000|
|---|---|
|Furniture and motor vehicles|3 - 10 years straight line basis|
|Corps items|Not depreciated|
Items of equipment are capitalised where the purchase price exceeds £2,000.
The REME Collection ("Corps items"), which has been built up over many years, reflects the wide range of artefacts ranging from wooden carvings, paintings, silver pieces, furniture and many trinkets and items of an ornamental nature. Corps items are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation. Items are recorded at cost when an acquisition has been made by purchase, or fair value if obtained via donation, which is subsequently treated as the deemed cost.
20
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **1. Accounting policies (continued)**
## **l) Heritage assets**
The REME Charity has gained a wide and varied collection of assets since its formation in 1942. These are held within the Messes, the Church, and the Headquarters and have either been donated by individuals or units, or gifted by the MoD.
Where these assets are held primarily for their contribution to our nation’s culture and knowledge, they are classified as ‘heritage assets’.
Heritage assets are held at historic cost. This represents a change in accounting policy from the prior year; see note 28 for full details of the impact, and below for further details.
The assets are considered to have indeterminate lives and the trustees therefore do not consider it appropriate to charge depreciation. All heritage assets are reviewed for impairment annually and any charge taken to the SoFA.
Only items valued at more than £3,000 are capitalised as heritage assets on acquisition.
## **Change in accounting policy**
During the year, the trustees reviewed the appropriateness of the measurement basis for heritage assets and concluded that a cost-based approach provides more reliable and relevant information to the users of the financial statements.
Given the scale and diversity of the collection (in excess of 130,000 items), obtaining regular, comprehensive valuations would involve disproportionate cost and effort. In addition, many items are unique and lack active markets, resulting in valuations that are inherently subjective and of limited reliability. The assets are held for their service potential in furtherance of the charity’s objectives and are not held for sale; accordingly, current value information is of limited relevance to users of the financial statements.
The change has therefore been made in accordance with FRS 102 Section 10 on the basis that it results in more reliable and relevant information. The change in policy has been applied retrospectively; the carrying value of heritage assets at the date of transition to the current accounting framework (y/e 31 December 2014) has been treated as deemed cost, with later additions included at purchase price or fair value at the date of acquisition.
21
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **1. Accounting policies (continued)**
## **m) Mixed motive investments**
Mixed motive investments represent the charity's collection of fine art, held by the charity primarily to contribute to the esprit de corps activities of the messes, but which is also held for its potential investment growth. Fine art is held at fair value.
## **n) Fixed asset investments**
Listed investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposal throughout the year.
## **o) Stock**
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
## **p) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **q) 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.
## **r) Creditors**
Creditors and provisions are recognised where there is 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **s) Financial instruments**
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **t) Pension costs**
The charitable company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.
## **u) Foreign currency transactions**
Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.
22
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
**1. Accounting policies (continued)**
## **v) Accounting estimates and key judgements**
- In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
## **Depreciation**
As described in note 1k to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.
23
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
**2. Prior period comparatives: statement of financial activities (restated)**
|**Income from:**
Donations and legacies
Charitable activities
Other trading activities
Investments
**Total income**
**Expenditure on:**
Raising funds
Charitable activities:
Benevolence grants
Esprit de corps
Museum
**Total expenditure**
Net gains on investments
Transfers between funds
**Net movement in funds**
**Net income**
**Net income / (expenditure) before**
**investment gains**|Restricted
£
559,683
-
77,617
-
637,300
2,419
62,113
393,447
92,422
550,401
86,899
28,692
115,591
(148,605)
(33,014)|£
1,423,541
108,811
234,470
427,715
2,194,537
303,355
520,566
820,671
476,995
2,121,587
72,950
1,197,912
1,270,862
148,605
1,419,467
Unrestricted|2024
Total
£
1,983,224
108,811
312,087
427,715|
|---|---|---|---|
||||2,831,837|
||||305,774
582,679
1,214,118
569,417|
||||2,671,988|
||||159,849
1,226,604|
||||1,386,453
-|
||||1,386,453|
24
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **3. Income from donations and legacies**
|**Income from donations and legacies**|||
|---|---|---|
|Restricted
£
Subscriptions - retired officers
8,217
Subscriptions - serving officers
137,027
Subscriptions - museum (gold card)
-
Subscriptions - other ranks
51,767
Sports association grants
13,055
MOD grant in aid
-
Other donations
198,696
Legacies
202,173
Donated investment management services
-
Donated services and facilities *
-
**Total income from donations and legacies**
610,935
**Prior period comparative**
Restricted
£
Subscriptions - retired officers
8,736
Subscriptions - serving officers
137,620
Subscriptions - museum (gold card)
-
Subscriptions - other ranks
51,409
Sports association grants
48,220
MOD grant in aid
-
Other donations
306,519
Legacies
7,179
Donated investment management services
-
Donated services and facilities *
-
**Total income from donations and legacies**
559,683
* Donated services and facilities consists of:
Donated staff time
Donated facilities - office premises, equipment and utilities|£
-
137,027
84,249
739,059
-
205,314
63,730
-
9,614
201,393
1,440,386
£
-
137,620
84,522
662,071
-
197,753
91,252
-
35,640
214,683
1,423,541
**2025**
**£**
**158,963**
**42,430**
**201,393**
Unrestricted
Unrestricted|**2025**
**Total**
**£**
**8,217**
**274,054**
**84,249**
**790,826**
**13,055**
**205,314**
**262,426**
**202,173**
**9,614**
**201,393**|
|||**2,051,321**
2024
Total
£
8,736
275,240
84,522
713,480
48,220
197,753
397,771
7,179
35,640
214,683|
|||1,983,224
2024
£
186,006
28,677|
|||214,683|
25
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **4. Government grants**
- The charity receives government grants, defined as funding from the Ministry of Defence, the National Lottery Heritage Fund, and Arts Council England (via the Victoria and Albert Museum) to fund charitable activities. The total value of such grants in the period ending 31 December 2025 was £346,105 (2024: £356,785). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.
## **5. Income from charitable activities**
|Museum admission
Children's activities
Museum research
**Total income from charitable activities**
**Prior period comparative**
Museum admission
Children's activities
Museum research
**Total income from charitable activities**
**Income from other trading activities**
REME trading income
Sponsorship
Other fundraising
**Total income from other trading activities**|Restricted
£
-
-
-
-
Restricted
£
-
-
-
-
Restricted
£
-
119,464
5,030
124,494|Unrestricted
£
99,939
6,228
1,328
107,495
Unrestricted
£
99,254
8,023
1,534
108,811
£
321,692
500
43,998
366,190
Unrestricted|**2025**
**Total**
**£**
**99,939**
**6,228**
**1,328**
**107,495**
2024
Total
£
99,254
8,023
1,534
108,811
**2025**
**Total**
**£**
**321,692**
**119,964**
**49,028**
**490,684**|
|---|---|---|---|
**6. Income from other trading activities**
26
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
**6. Income from other trading activities (continued) Prior period comparative:**
|**Prior period comparative:**
REME trading income
Sponsorship
Other fundraising
**Total income from other trading activities**
**Income from investments**
Income from listed investments
Bank interest
**Total income from investments**
**Prior period comparative:**
Income from listed investments
Bank interest
**Total income from investments**|Restricted
£
-
61,300
16,317
77,617
Restricted
£
-
-
-
Restricted
£
-
-
-|£
188,396
1,000
45,074
234,470
£
414,557
7,567
422,124
£
422,500
5,215
427,715
Unrestricted
Unrestricted
Unrestricted|2024
Total
£
188,396
62,300
61,391
312,087
**2025**
**Total**
**£**
**414,557**
**7,567**
**422,124**
2024
Total
£
422,500
5,215
427,715|
|---|---|---|---|
**7. Income from investments**
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## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
**9. Net movement in funds**
This is stated after charging:
|Depreciation
Loss on disposal of assets
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration (excluding VAT):
Statutory audit
Consultancy
Corporation tax return|**2025**
**£**
**91,503**
**-**
**Nil**
**682**
**22,500**
**-**
**350**|2024
£
87,430
25,770
Nil
4,354
20,000
253
350|
|---|---|---|
Trustees' reimbursed expenses comprise travel, subsistence and accommodation costs relating to 1 trustee (2024: 4 trustees).
Total governance costs were £25,642 (2024: £27,154).
In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements and to prepare and submit returns to the tax authorities.
## **10. Staff costs and numbers**
Staff costs were as follows:
|Salaries and wages
Social security costs
Pension costs
Donated salaries
Freelance staff|**2025**
**£**
**760,298**
**75,560**
**15,793**
**158,963**
**14,512**
**1,025,126**|2024
£
609,747
51,030
14,098
186,006
15,002
875,883|
|---|---|---|
One employee earned between £60,000 and £70,000 during the year (2024: one employee).
The key management personnel of the charitable company comprise the CEO and Museum Director. The total employee benefits of the key management personnel paid by the charity were £134,878 (2024: £129,786).
|Average number of employees (head count):|**2025**
**No.**
**40**|2024
No.
29|
|---|---|---|
30
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **11. Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **12. Grants payable**
|Benevolence
REME Sports
Discretionary grants
Adventurous and enterprising activities
REME Corps Sergeants' Mess
Officers Mess
Service Charities Equality Insights Programme
REME Reservists|Individuals
£
291,345
-
-
-
-
-
-
-
291,345|Institutions
£
111,523
449,634
153,562
98,279
27,494
21,661
100,481
1,239
963,873|**Total**
**2025**
**£**
**402,868**
**449,634**
**153,562**
**98,279**
**27,494**
**21,661**
**100,481**
**1,239**
**1,255,218**|
|---|---|---|---|
## **Prior period comparative**
|Benevolence
REME Sports
Discretionary grants
Adventurous and enterprising activities
REME Corps Sergeants' Mess
Officers Mess
Service Charities Equality Insights Programme|Individuals
£
286,441
-
-
-
-
-
-
286,441|Institutions
£
97,603
357,145
200,156
86,116
42,530
25,044
50,929
859,523|Total
2024
£
384,044
357,145
200,156
86,116
42,530
25,044
50,929
1,145,964|
|---|---|---|---|
The charity's grant making activities are characterised by large numbers of small grants, paid to support serving and retired soldiers and officers of the REME Corps. The total grants made to individuals in the current year was 427 (2024: 524). Individual grants are rarely made direct to the individual beneficiary. Grants are usually processed via a third party organisation such as the Army Benevolent Fund; the Soldiers’ Charity (ABF), The Sailors, Soldiers and Air Force Institution (SSAFA), or the Royal British Legion (RBL). If the beneficiary is a serving soldier, a grant is processed through the unit welfare organisation.
The trustees consider all grants paid to institutions over £50,000, which require trustee board approval, to be material in the context of the accounts. There were no grants paid over this amount in 2025 or 2024. There were no other committed grants at 31 December 2025. No support costs have been allocated to the grants disclosed above although staff costs are allocated to general grant making activities per note 8 to the accounts.
31
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
|**13.**
**Tangible fixed assets**
**Group**
**Cost**
At 1 January 2025
Additions in year
At 31 December 2025
**Depreciation**
At 1 January 2025
Charge for the year
At 31 December 2025
**Net book value**
**At 31 December 2025**
At 31 December 2024
**Charity**
**Cost**
At 1 January 2025
Additions in year
At 31 December 2025
**Depreciation**
At 1 January 2025
Charge for the year
At 31 December 2025
**Net book value**
**At 31 December 2025**
At 31 December 2024|**Yachts**
**£**
280,000
-
280,000
111,000
9,500
120,500
**159,500**
169,000
**Yachts**
**£**
280,000
-
280,000
111,000
9,500
120,500
**159,500**
169,000|**£**
907,047
60,342
967,389
586,055
74,972
661,027
**306,362**
320,992
**£**
137,252
-
137,252
65,406
13,594
79,000
**58,252**
71,846
**Furniture**
**Furniture**|**£**
-
37,500
37,500
-
7,031
7,031
**30,469**
-
**£**
-
37,500
37,500
-
7,031
7,031
**30,469**
-
**Motor**
**Vehicles**
**Motor**
**Vehicles**|**£**
375,821
3,500
379,321
-
-
-
**379,321**
375,821
**£**
375,821
3,500
379,321
-
-
-
**379,321**
375,821
**Restated**
**Corps items**
**Restated**
**Corps items**|**Total**
**£**
**1,562,868**
**101,342**
**1,664,210**
**697,055**
**91,503**
**788,558**
**875,652**
865,813
**Total**
**£**
**793,073**
**41,000**
**834,073**
**176,406**
**30,125**
**206,531**
**627,542**
616,667|
|---|---|---|---|---|---|
Assets which are of significance to the Corps but do not meet the definition of heritage assets are held as non-depreciable tangible fixed assets. The value of Corps items at 1 January 2025 has been restated to reflect a reclassification of assets between heritage assets and Corps as described in note 28 to the accounts.
32
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **14. Heritage assets**
|At 1 January 2025
Additions
**At 31 December 2025**|Restated
**2025**
2024
**£**
£
**2,114,459**
1,925,774
**-**
188,685
**2,114,459**
2,114,459
**The group**|Restated
**2025**
2024
**£**
£
**747,361**
708,676
**-**
38,685
**747,361**
747,361
**The charity**|Restated
**2025**
2024
**£**
£
**747,361**
708,676
**-**
38,685
**747,361**
747,361
**The charity**|
|---|---|---|---|
||||747,361|
All heritage assets are deemed to be measured at historic cost. This is a change in accounting policy in the current period, and has been applied retrospectively to the opening cost of heritage assets in the prior period. The majority of heritage assets are donated items which are recognised on receipt at deemed cost at acquisition. In addition, there was a material reclassification of assets held by the charity from tangible fixed assets (Corps Items) into heritage assets, which has also been applied to the opening cost in the prior period. Both changes are described in full at note 28.
## **Five year summary of heritage asset transactions:**
|**Additions:**
Purchases
Donations
Total additions
**Disposals:**
Carrying value
Proceeds|**2025**
**£**
**-**
**-**
**-**|Restated
2024
£
188,685
-
188,685
-
-|Restated
2023
£
11,140
-
11,140
(5,250)
-|2022
£
24,000
33,000
57,000
(815,558)
-|Restated
2021
£
10,800
68,190|
|---|---|---|---|---|---|
||||||78,990
(184,180)
-|
During 2022, the REME Charity and the REME Museum de-recognised all heritage assets with a value less than £3,000 and this resulted in an extraordinary disposal of heritage assets during the year ended 31 December 2022. This was a one-time occurrence and no assets were sold or scrapped. It does not reflect any reduction in the overall value or ownership of the organisation's assets or its financial health.
## **The REME Charity heritage assets**
The REME Charity has gained a wide and varied collection of assets since its formation in 1942. These are held within the Messes, the Church, and the Headquarters and have either been donated by individuals or units, or gifted by the MoD.
Where these assets are held primarily for their contribution to our nation’s culture and knowledge, they are classified as ‘heritage assets’. Other assets are of significance to the Corps but are not held as heritage assets. These items are held as non-depreciable tangible fixed assets.
33
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **14. Heritage assets (continued)**
## **The REME Museum heritage assets**
The REME Museum of Technology was established in 1958 to house and preserve the heritage of the Corps of Royal Electrical and Mechanical Engineers. The Museum aims to promote a broader understanding of the functions of the Corps, its interaction with society and its role in providing equipment engineering support to the Army. It also provides an information resource for members of the Corps, researchers, educationalists and general public.
The collection which has been built up over many years reflects the wide range of equipment for which the Corps is responsible including tanks, weapons, helicopters and electronic equipment. The Museum also houses and maintains a comprehensive collection of medals, uniforms, documents and pictorial records covering the many activities of the Corps since its formation in October 1942.
The Museum follows a strict acquisition policy and only accepts items which either relate to the heritage of the Corps or clearly illustrate the changes in engineering and repair techniques associated with equipment responsibilities. Most of the items held are either donated to the Museum or gifted by the Ministry of Defence.
A full inventory is maintained of all items accessioned into the collection including valuations on the Museum's collection management database. Information provided includes the provenance and acquisition source of each item.
The charity's collections comprise over 130,000 items, this includes accessioned items and items held as E numbers yet to be accessioned. Items are held at historic cost and capitalised where the cost or deemed cost on acquisition is at least £3,000.
34
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **15. Mixed motive investments**
|At 1 January 2025
Revaluations
Disposals
**At 31 December 2025**|**2025**
2024
**£**
£
**41,354**
41,354
**-**
-
**-**
-
**41,354**
41,354
**The group**|**2025**
2024
**£**
£
**41,354**
41,354
**-**
-
**-**
-
**41,354**
41,354
**The charity**|**2025**
2024
**£**
£
**41,354**
41,354
**-**
-
**-**
-
**41,354**
41,354
**The charity**|
|---|---|---|---|
||||41,354|
Mixed motive investments represent the charity's collection of fine art, held by the charity primarily to contribute to the esprit de corps activities of the messes, but which is also held for its potential investment growth. The fine art collection is held at fair value and will be revalued every 5 years.
## **16. Fixed asset investments (group and charity)**
|**Blackrock Armed Forces Growth and Income Fund - unlisted**
Market value at 1 January 2025
Disposals
Net gains
As at 31 December 2025
**Sarasin Funds - listed**
Market value at 1 January 2025
Additions
Disposals
Net gains
As at 31 December 2025|**2025**
**£**
**-**
**-**
**-**
**-**
**15,570,335**
**15,933,832**
**(15,926,336)**
**413,668**
**15,991,499**|2024
£
263,208
(263,018)
(190)|
|---|---|---|
|||-
14,084,112
259,429
-
1,226,794|
|||15,570,335|
All investments were listed investments at 31 December 2024 and 31 December 2025.
Included within investments are amounts held for the benefit of other REME organisations, as follows:
|**2025**
2024
**%**
%
REME Museum
**2.3226%**
2.3226%|**2025**
**£**
**371,418**
**Market**|2024
£
361,639
**value**|
|---|---|---|
35
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **17. Stock**
|REME Trading stock for resale
Finished goods including wine
**18.**
**Debtors**
Trade debtors
Prepayments and accrued income
Other debtors
Funds held as an agent (note 20)
Amounts owed by subsidiary undertakings|**2025**
2024
**£**
£
**76,303**
75,495
**172,695**
166,134
**248,998**
241,629
**2025**
2024
**£**
£
**9,487**
7,866
**122,406**
112,362
**5,253**
185
**-**
2,058
**-**
-
**137,146**
122,471
**The group**
**The group**|**2025**
2024
**£**
£
**-**
-
**172,695**
166,134
**172,695**
166,134
**2025**
2024
**£**
£
**7,567**
7,866
**100,796**
91,713
**5,253**
185
**-**
2,058
**81,149**
60,000
**194,765**
161,822
**The charity**
**The charity**|**2025**
2024
**£**
£
**-**
-
**172,695**
166,134
**172,695**
166,134
**2025**
2024
**£**
£
**7,567**
7,866
**100,796**
91,713
**5,253**
185
**-**
2,058
**81,149**
60,000
**194,765**
161,822
**The charity**
**The charity**|
|---|---|---|---|
||||161,822|
Included in amounts owed by subsidiary undertakings is £60,000 due in more than 1 year (2024: £60,000).
## **19. Creditors**
|**Creditors**||||
|---|---|---|---|
|**Due in less than 1 year:**
Trade creditors
Social security and other taxes
Accruals
Other creditors
Deferred income
Funds held as an agent (note 20)
Amounts due to subsidiary undertakings
**Due in more than 1 year:**
Other creditors|**2025**
2024
**£**
£
**56,169**
37,591
**16,423**
14,138
**48,559**
35,159
**23,239**
14,046
**53,975**
7,266
**34,960**
-
**-**
-
**233,325**
108,200
**13,104**
13,104
**The group**|**2025**
2024
**£**
£
**52,973**
37,591
**16,423**
12,154
**26,221**
21,806
**9,930**
13,914
**53,975**
7,266
**34,960**
-
**363,915**
337,805
**558,397**
430,536
**13,104**
13,104
**The charity**||
||||430,536
13,104|
36
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **20. Funds held as an agent**
During the year, the charity acted as custodian trustee for funds received by some of the sports clubs and Messes' linked to the REME Charity. An analysis of the funds received and paid by the charity is given below, and these fund balances are included in creditors (note 19).
|£
REME sports
(6,100)
REME Institution
420
REME Officers' Mess
1,995
Other organisations
1,627
REME Yacht Club
-
At 31 December 2025
(2,058)
**Analysis of group net assets between funds**
£
Tangible fixed assets
-
Heritage assets
-
Mixed motive investments
-
Fixed asset investments
371,418
Current assets
322,344
Current liabilities
-
Creditors due after more than 1 year
-
**Net assets at 31 December 2025**
**693,762**
**Prior year comparative - restated**
£
Tangible fixed assets
-
Heritage assets
-
Mixed motive investments
-
Fixed asset investments
361,639
Current assets
148,072
Current liabilities
-
Creditors due after more than 1 year
-
**Net assets at 31 December 2024**
509,711
Restricted
funds
Restricted
funds
Funds held at
1 January
2025|£
25,750
6,914
2,720
5,420
13,129
40,804
£
248,111
1,367,098
-
-
286,437
-
-
**1,901,646**
£
249,145
1,217,098
-
-
482,703
-
-
2,098,947
Designated
funds
Designated
funds
Funds
received|£
**£**
(153)
**19,497**
(7,334)
**-**
(2,083)
**2,632**
(6,345)
**702**
(1,000)
**12,129**
(16,915)
**34,960**
£
**£**
627,541
**875,652**
747,361
**2,114,459**
41,354
**41,354**
15,620,081
**15,991,499**
325,274
**934,055**
(233,325)
**(233,325)**
(13,104)
**(13,104)**
**17,115,182**
**19,710,590**
£
£
910,078
865,813
897,361
2,114,459
41,354
41,354
15,208,696
15,570,335
253,696
724,622
(108,200)
(108,200)
(13,104)
(13,104)
16,586,621
19,195,279
General
funds
Total
funds
General
funds
**Total**
**funds**
Funds
paid
**Funds held at**
**31 December**
**2025**|£
**£**
(153)
**19,497**
(7,334)
**-**
(2,083)
**2,632**
(6,345)
**702**
(1,000)
**12,129**
(16,915)
**34,960**
£
**£**
627,541
**875,652**
747,361
**2,114,459**
41,354
**41,354**
15,620,081
**15,991,499**
325,274
**934,055**
(233,325)
**(233,325)**
(13,104)
**(13,104)**
**17,115,182**
**19,710,590**
£
£
910,078
865,813
897,361
2,114,459
41,354
41,354
15,208,696
15,570,335
253,696
724,622
(108,200)
(108,200)
(13,104)
(13,104)
16,586,621
19,195,279
General
funds
Total
funds
General
funds
**Total**
**funds**
Funds
paid
**Funds held at**
**31 December**
**2025**|
|---|---|---|---|
||||**34,960**
**£**
**875,652**
**2,114,459**
**41,354**
**15,991,499**
**934,055**
**(233,325)**
**(13,104)**
**Total**
**funds**|
||||**19,710,590**
£
865,813
2,114,459
41,354
15,570,335
724,622
(108,200)
(13,104)
Total
funds|
||||19,195,279|
**21. Analysis of group net assets between funds**
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## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **23. Financial instruments at fair value**
|Financial assets measured at fair value|**2025**
2024
**£**
£
**15,991,499**
15,570,335
**The group**|**2025**
2024
**£**
£
**15,991,499**
15,570,335
**The charity**|
|---|---|---|
Financial assets measured at fair value comprise fixed asset investments.
## **24. Operating lease commitments**
The charity held no operating lease commitments in the current or prior period.
## **25. Related party transactions**
The REME Charity is the sole corporate trustee and parent charity of the Corps of Royal Electrical and Mechanical Engineers Museum (charity registration no. 272740). During the year the REME Charity paid donations totalling £139,850 (2024: £149,426) to the REME Museum. The REME Charity operates payroll and manages transactions on behalf of the Museum. At the year end £363,915 was due to the REME Museum (2024: £337,805).
The REME Charity also has control of the REME Trading Company Limited (company registration no. 10258502). One employee and two of the trustees of the REME Charity make up the board of directors of the REME Trading Company. Amounts owed to the REME Charity at 31 December 2025 were £81,149 (2024: £54,889). In the prior year, The REME Charity provided a loan of £60,000 to the REME Trading Company. The REME Trading Company made sales of goods from the shop totalling £36,978 (2024: £38,402) to the REME Charity during the year.
## **26. Subsidiary undertakings**
_The Corps of Royal Electrical and Mechanical Engineers Museum_
The consolidated financial statements include the results of The Corps of Royal Electrical and Mechanical Engineers Museum (the REME Museum), charity number 272740. The REME Charity is deemed to have control over the REME Museum by having sole corporate trusteeship. The REME Museum contributes to the esprit de corps objects of The REME Charity.
43
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **26. Subsidiary undertakings (continued) Results for the period**
|**Results for the period**
Gross income
Expenditure
**Results for the year (excluding gains / losses)**
**Net assets**
Assets
Liabilities
**Total museum funds**|**2025**
**£**
**567,104**
**(589,777)**
**(22,673)**
**2025**
**£**
**2,063,222**
**(15,850)**
**2,047,372**|Restated
2024
£
727,362
(546,890)
180,472
Restated
2024
£
2,862,254
(14,982)
2,847,272|
|---|---|---|
## _The REME Trading Company Limited_
The consolidated financial statements include the results of The REME Trading Company Limited (REME Trading), company number 10258502. REME Trading was incorporated to operate the cafe and shop situated within the REME museum. The REME Charity is deemed to have control over REME Trading, the directors of REME Trading being key management personnel of The REME Charity.
## **Results for the period**
|Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit / (loss)
Interest payable and similar charges
Tax on profit / (loss)
Profit for financial year|**2025**
**£**
**358,670**
**(193,970)**
**164,700**
**(186,629)**
**(21,929)**
**(2,700)**
**-**
**(24,629)**|2024
£
226,798
(145,643)
81,155
(90,240)
(9,085)
(630)
-
(9,715)|
|---|---|---|
44
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **26. Subsidiary undertakings (continued)**
The aggregate of the assets, liabilities and funds was:
|Assets
Liabilities
**Total reserves**|**2025**
**£**
**110,740**
**(104,141)**
**6,599**|2024
£
96,821
(65,593)
31,228|
|---|---|---|
## **27. Parent charity**
The parent charity's gross income and the results for the year are:
|Gross income
Surplus / (deficit) for the year (excluding gains / losses)|**2025**
**£**
**2,322,680**
**148,947**|2024
£
2,065,540
(10,907)|
|---|---|---|
45
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **28. Prior period adjustment**
Prior period comparatives have been restated to account for the following change in accounting policy: heritage assets previously held under the revaluation model have been restated to be held under the historic cost model. This impacts the value of heritage assets at 31 December 2024, the value of funds brought forward at 1 January 2024 and carried forward at 31 December 2024, and gains / losses recognised in the year ended 31 December 2024. In addition, there was a material reclassification of assets held by the charity from tangible fixed assets (Corps Items) into heritage assets. This impacts the balances of both tangible fixed assets and heritage assets at 31 December 2024.
The effect of the restatements are set out below:
## **Group fund balances**
|Change of accounting policy
Restated at 1 January 2024
Change of accounting policy
Restated at 31 December 2024
As originally stated at 1 January
2024
As originally stated at 31
December 2024|Restricted
funds
£
542,725
-
542,725
509,711
-
509,711|Designated
funds
£
2,813,579
(755,727)
2,057,852
2,876,174
(777,227)
2,098,947|General
funds
£
15,155,825
52,424
15,208,249
16,534,197
52,424
16,586,621|Total
funds
£
18,512,129
(703,303)
17,808,826
19,920,082
(724,803)
19,195,279|
|---|---|---|---|---|
All adjustments impacting designated funds are made to the fund: _Museum - general._
## **Charity fund balances**
|Change of accounting policy
Restated at 31 December 2024
As originally stated at 31
December 2024|Restricted
funds
£
507,386
-
507,386|Designated
funds
£
150,000
-
150,000|General
funds
£
16,384,193
52,424
16,436,617|Total
funds
£
17,041,579
52,424
17,094,003|
|---|---|---|---|---|
46
## **The REME Charity**
## **Notes to the financial statements**
## **For the year ended 31 December 2025**
## **28. Prior period adjustment (continued) Asset valuations at 31 December 2024**
|Change of accounting policy
Reclassification of assets
Restated at 31 December 2024
**Prior period group gains / losses**
Restated for year to 31 December
2024
Reverse gains on revaluation of
assets previously within 2024
As originally stated for the year to
31 December 2024
As originally stated at 31
December 2024|Heritage
assets
Corps items
£
£
2,545,852
669,231
(724,803)
-
293,410
(293,410)
2,114,459
375,821
Restricted
funds
Designated
funds
£
£
28,692
21,500
-
(21,500)
28,692
-
The group|Heritage
assets
Corps items
£
£
401,526
669,232
52,424
-
293,411
(293,411)
747,361
375,821
General
funds
Total
funds
£
£
1,197,912
1,248,104
-
(21,500)
1,197,912
1,226,604
The charity|Heritage
assets
Corps items
£
£
401,526
669,232
52,424
-
293,411
(293,411)
747,361
375,821
General
funds
Total
funds
£
£
1,197,912
1,248,104
-
(21,500)
1,197,912
1,226,604
The charity|
|---|---|---|---|
||||375,821
Total
funds
£
1,248,104
(21,500)|
||||1,226,604|
All adjustments impacting designated funds are made to the fund: _Museum - general._
47