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2026-03-31-accounts

CHARITY REGISTRATION NUMBER: 1166089

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

31 March 2026

WALTER HUNTER & CO LIMITED

Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Financial Statements

Year ended 31 March 2026

Page
Trustees' annual report 1
Independent auditor's report to the members 8
Statement of financial activities 12
Statement of financial position 13
Statement of cash flows 14
Notes to the financial statements 15

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report

Year ended 31 March 2026

The trustees present their report and the financial statements of the charity for the year ended 31 March 2026.

Reference and administrative details

Registered charity name The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation Charity registration number 1166089 Principal office Maindy Barracks Cardiff CF14 3YE

The trustees

Lt Col MD Adams (ex officio) Major (Retd) MFH Adler TD Captain (Retd) JEE Barham Major General CBK Barry CBE - Chairman (Ex Officio) (Resigned 7 February 2026) Lt Col OGW Beard (ex officio) Brigadier N O Crewe-Read OBE (Appointed 8 February 2026) Col (Retd) R Dickinson (ex officio) Captain (Retd) DJ Hitchcock OBE Colonel NJ Lock OBE Captain (Retd) RJE Minter-Kemp Mr S Prichard

Auditor Walter Hunter & Co Limited Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF Bankers The Royal Bank of Scotland Holt's Military Banking 200 Fowler Avenue Fowler Business Park Farnborough GU14 7JP Investment manager Evelyn Partners 45 Gresham Street London EC2V 7BG

1

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Structure, governance and management

Governing document

The Royal Welsh Regimental Welfare and Benevolence Foundation was first registered on 16 March 2016 but did not commence operation until 18th July 2017. The net assets and charitable activities of the following charities were transferred on this date:

Organisational structure

The Board of trustees meet at least twice a year to receive the annual accounts, discuss major policy issues and campaigns, and agree priorities for action. The charity does not have any employees. All decisions are made by the trustees; however, the day-to-day management of the charity is undertaken by the Regimental Secretary, supported by the Regimental Headquarters staff.

Trustee recruitment and induction

Trustees are predominantly recruited from serving, and former, members of the regiment.

The Trustees have been offered trustee training from the Investment Manager, Evelyn Partners. Annual training will be offered at the next full meeting of the Board in July 2026.

2

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Objectives and activities

Objects and aims of the charity

  1. To promote the efficiency of the Armed Forces of the Crown in general and in particular, the efficiency of the Royal Welsh or any component or predecessor regiment or unit by any charitable means the charity trustees may decide, including without limitation:

(a) fostering esprit de corps and comradeship and supporting cadet units affiliated to the Royal Welsh;

(b) assisting members of the Royal Welsh, or any component or predecessor regiment or unit, or any personnel attached to those regiments, with their transition to civilian life, in particular without limitation by providing education to aid with re-settlement and assisting them to find employment;

(c) fostering and preserving the history, heritage, traditions, and military accomplishments of the Royal Welsh and any component or predecessor regiment or unit, including without limitation by supporting a museum or museums, archives and collections; and

(d) commemorating and remembering the members of the Royal Welsh, or any component or predecessor regiment or unit, who have died while on active service and to encourage public recognition of the sacrifice made by such persons; and in particular without limitation to provide memorials to commemorate the fallen or victories, and maintain regimental chapels or churches;

  1. To advance the education of members of the Royal Welsh, or any component or predecessor

regiment or unit;

  1. To relieve hardship, distress or need among members and former members of the Royal Welsh, or any component or predecessor regiment or unit, members of families and other dependents, including without limitation by providing financial support to families or other dependents on those who have lost their lives on active service;

4.To promote and protect the health of those that have been wounded or injured, whether on active service or otherwise, whilst serving in the Royal Welsh, or any component or predecessor regiment or unit, at the charity trustees' discretion; and

  1. Such other exclusively charitable purposes relating to the Royal Welsh or any component or predecessor regiment or unit, as the charity trustees in their absolute discretion think fit.

The main activities undertaken in relation to the above are noted throughout this report.

The charity measures its success by reviewing if it has fulfilled the benevolence cases that were identified to the Regimental Headquarters during the year.

3

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Objectives and activities (continued)

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The fund achieves its objects by the provision of charitable grants to individuals and families of the Regimental Family for the purpose of promoting the efficiency of the Armed Forces of the Crown, particularly by supporting the Regiment's veterans in their time of need. The charity provides this benevolence independently and in conjunction with such Service Charities as The Soldiers', Sailors', and Airmen's Families Association (SSAFA), The Royal British Legion (TRBL) and The Army Benevolent Fund (ABF) The Soldiers' Charity to meet requirements that are not always met by public services (or not in a sufficiently timely manner). The trustees recognise the benefits that this brings to The Regiment and the Army in helping to fulfil their covenant to the veterans, through providing support to the grave.

The trustees consider, therefore, that the charity more than meets the requirement to provide public benefit under the charitable "head" of "the promotion of the efficiency of the Armed Forces of the Crown".

Policies adopted

The trustees have adopted additional policies which do not permit the making of loans to potential beneficiaries of the charity (see objects of the charity above).

Grant making policy

Any grants awarded by the charity are at the discretion of the trustees. Depending on the value of the grant requested, grants will be referred to the board of trustees for their approval.

Achievements and performance

During the past financial year the Foundation has seen a decrease in grants. In the period 1 Apr 25-31 Mar 26 it made the following grants:

Benevolence grants were made to:

4

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Achievements and performance (continued)

Investment performance

The trustees were satisfied with the management of the fund's investments which generated income of £44,365 (2025: £53,122).

The charity has an Investment Sub-Committee which is responsible for addressing all investment issues relating to the trustees of The Royal Welsh Regimental Welfare and Benevolence Foundation. The objectives of the Sub-Committee are as follows:

The Committee reports to the Board on its activities and the performance of the Scheme on a six-monthly basis. This will usually coincide with the six month interim and final reports from the Investment Advisor. This committee will prepare plans for the six month period ahead and back brief the full Board meeting accordingly.

Financial review

The charity achieved the following results during the year:

Benevolence Welfare Welfare
restricted unrestricted restricted Total
£ £ £ £
Surplus/(Deficit) before investment
gains 5,717 190,049 195,766
Investment gains 108,330 108,329 – 216,659
──────── ──────── ─────── ────────
Total surplus (deficit) for year 114,047
════════		 298,378
════════		 ═══════ 412,425
════════

Reserves policy

Reserves will be held at a level for contingencies, opportunities and commitments to be met, to mitigate all risks associated with the charity's operations and to allow the charity to respond quickly to emergencies where immediate relief is needed. The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed asset investments, designated for specific purposes or otherwise committed.

The free reserves of the charity at the year end totalled £193,237 (2025: £20,143).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six month's expenditure.

5

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Financial review (continued)

Investment policy

The overall investment policy of the charity can be stated as maximising the total return on investments for an acceptable level of risk that is commensurate with achieving a specified level of income. The investments objective is to achieve a balance between capital growth and a steady and growing level of income from a multi asset portfolio predominantly investing in bonds and equities. The risk profile of the portfolio is deemed as medium. This will be reviewed by the Investment Sub-Committee from time to time and any recommendation to change must be ratified by both the Investment Manager and the Board.

Benchmarking

Risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The principal risks and uncertainties facing the charity as identified by the trustees are as follows:

Plans for future periods

The charity's future plans consist of maximising its investment return to enable it to carry out its charitable aims and objectives which will enable the charity to provide increased support and assistance to its beneficiaries.

6

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Trustees' Annual Report (continued)

Year ended 31 March 2026

Trustees' responsibilities statement

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' annual report was approved on 2 July 2026 and signed on behalf of the board of trustees by:

Brigadier N O Crewe-Read OBE Trustee

7

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Year ended 31 March 2026

Opinion

We have audited the financial statements of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (the 'charity') for the year ended 31 March 2026 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 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 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.

8

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2026

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 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 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.

9

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2026

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

" By enquiring with senior management and those charged with governance all areas of risk identified were considered and any potential litigation or claim, if any, were noted

Through these procedures, we did not become aware of actual or suspected non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

10

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Independent Auditor's Report to the Members of The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation (continued)

Year ended 31 March 2026

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Jonathan Rhodes BSc BFP FCA (Senior Statutory Auditor)

For and on behalf of Walter Hunter & Co Limited Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF

2 July 2026

11

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Activities

Year ended 31 March 2026

2026 2025
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 11,801 604 12,405 6,045
Charitable activities 5 36,682 38,180 74,862 74,939
Other trading activities 6 17,669 17,379 35,048 35,094
Investment income 7 23,027 23,025 46,052 54,572
Other income - RWFCA 8 182,947 – 182,947 –
───────── ──────── ───────── ─────────
Total income 272,126 79,188 351,314 170,650
═════════ ════════ ═════════ ═════════
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 9 399 – 399 –
Investment management costs 10 13,860 13,860 27,720 25,730
Expenditure on charitable activities 11,12 67,819 59,610 127,429 195,680
───────── ──────── ───────── ─────────
Total expenditure 82,078 73,470 155,548 221,410
═════════ ════════ ═════════ ═════════
Net gains on investments 16 108,330 108,329 216,659 57,614
───────── ───────── ───────── ─────────
Net income 298,378 114,047 412,425 6,854
═════════ ═════════ ═════════ ═════════
Transfers between funds (5,431) 5,431 – –
───────── ───────── ───────── ─────────
Net movement in funds 292,947 119,478 412,425 6,854
Reconciliation of funds
Total funds brought forward 1,020,930 2,284,151 3,305,081 3,298,227
──────────── ──────────── ──────────── ────────────
Total funds carried forward 1,313,877 2,403,629 3,717,506 3,305,081
════════════ ════════════ ════════════ ════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 15 to 29 form part of these financial statements.

12

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Financial Position

31 March 2026

2026 2025
Note £ £
Fixed assets
Investments 20 3,709,003 3,331,103
Current assets
Stocks 21 20,740 –
Debtors 22 15,771 38,951
Cash at bank and in hand 159,043 116,357
───────── ─────────
195,554 155,308
Creditors: amounts falling due within one year 23 187,051 181,330
───────── ─────────
Net current liabilities 8,503 26,022
──────────── ────────────
Total assets less current liabilities 3,717,506 3,305,081
──────────── ────────────
Net assets 3,717,506 3,305,081
════════════ ════════════
Funds of the charity
Restricted funds 2,403,629 2,284,151
Unrestricted funds 1,313,877 1,020,930
──────────── ────────────
Total charity funds 24 3,717,506
════════════		 3,305,081
════════════

These financial statements were approved by the board of trustees and authorised for issue on 2 July 2026, and are signed on behalf of the board by:

Brigadier N O Crewe-Read OBE Trustee

The notes on pages 15 to 29 form part of these financial statements.

13

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Statement of Cash Flows

Year ended 31 March 2026

2026 2025
£ £
Cash flows from operating activities
Net income 412,425 6,854
Adjustments for:
Net gains on investments (216,659) (57,614)
Dividends, interest and rents from investments (44,365) (53,122)
Other interest receivable and similar income (1,687) (1,450)
Accrued expenses/(income) 929 (675)
Changes in:
Stocks (20,740) –
Trade and other debtors 23,180 (20,720)
Trade and other creditors 4,792 168,059
───────── ─────────
Cash generated from operations 157,875 41,332
Interest received 1,687 1,450
───────── ────────
Net cash from operating activities 159,562 42,782
═════════ ════════
Cash flows from investing activities
Dividends, interest and rents from investments 44,365 53,122
Purchases of other investments (2,125,367) (4,029,225)
Proceeds from sale of other investments 1,964,127 4,103,691
Transfer in of 1st Battalion's investment portfolio – (172,081)
──────────── ────────────
Net cash used in investing activities (116,875) (44,493)
════════════ ════════════
Net increase/(decrease) in cash and cash equivalents 42,687 (1,711)
Cash and cash equivalents at beginning of year 116,357 118,068
───────── ─────────
Cash and cash equivalents at end of year 159,044 116,357
═════════ ═════════

The notes on pages 15 to 29 form part of these financial statements.

14

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements

Year ended 31 March 2026

1. General information

The Royal Welsh Regimental Welfare and Benevolence Foundation is a charitable incorporated organisation (charity registration number 1166089) and a public benefit entity. The principal office is Maindy Barracks, Cardiff, CF14 3YE.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

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The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

3. Accounting policies (continued)

Incoming resources (continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or Deeds of Covenant is recognised at the time of the donation.

Income from the Days Pay Scheme is included in the period to which the income relates.

Investment income is recognised at the time the investment income is receivable. Interest on funds held on deposit 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.

Resources expended

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.

Expenditure on raising funds relates to the management charges from the charity's investment brokers to administer the portfolio. These are charged quarterly in arrears.

Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable activities and their associated support costs.

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs include the central functions and have been allocated to activity costs categories on a basis consistent with the use of resources.

Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised once the recipient of the grant has provided the specified service or output. Where there are no conditions attaching to the grant that enables the donor charity to realistically avoid the commitment, a liability for the full obligation must be recognised.

Investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

16

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

3. Accounting policies (continued)

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

17

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

3. Accounting policies (continued)

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which included debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction i measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classed as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of the ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, sing the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented ads non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.

18

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Donations
Royal Welsh Club donations – 604 604
General donations 11,801 – 11,801
──────── ──── ────────
11,801 604 12,405
════════ ════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Donations
Royal Welsh Club donations – 1,015 1,015
General donations 4,880 150 5,030
─────── ─────── ───────
4,880 1,165 6,045
═══════ ═══════ ═══════
5. Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Days Pay Scheme 36,682 38,180 74,862
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Days Pay Scheme 36,720 38,219 74,939
════════ ════════ ════════
6. Other trading activities
Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Rugby 1,740 – 1,740
PRI income 5,702 – 5,702
Regimental wine sales 486 – 486
Memorial income – 174 174
Officers' Society – 15,675 15,675
59 Dinner 2,362 – 2,362
The Regimental Journal - Y Cymry Brenhinol
subscriptions – 1,530 1,530
Rorke's Drift Lunch income 4,714 – 4,714
Comrades income 2,360 – 2,360
Recruiting income 305 – 305
──────── ──────── ────────
17,669 17,379 35,048
════════ ════════ ════════

19

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

6. Other trading activities (continued)

Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Rugby 2,120 – 2,120
PRI income 8,894 – 8,894
Regimental wine sales – – –
Memorial income – 69 69
Officers' Society – 15,856 15,856
59 Dinner – – –
The Regimental Journal - Y Cymry Brenhinol
subscriptions – 2,400 2,400
Rorke's Drift Lunch income 4,760 – 4,760
Comrades income 855 – 855
Recruiting income 140 – 140
──────── ──────── ────────
16,769 18,325 35,094
════════ ════════ ════════
7. Investment income
Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Income from listed investments 22,183 22,182 44,365
Bank interest receivable 844 843 1,687
──────── ──────── ────────
23,027 23,025 46,052
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Income from listed investments 26,561 26,561 53,122
Bank interest receivable 735 715 1,450
──────── ──────── ────────
27,296 27,276 54,572
════════ ════════ ════════
8. Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2026 Funds 2025
£ £ £ £
Transfer of funds Royal Welsh
Fusiliers Comrades Association 182,947 182,947 – –
═════════ ═════════ ════ ════
9. Costs of raising donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2026 Funds 2025
£ £ £ £
Costs of raising donations 399 399 – –
════ ════ ════ ════

20

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

10. Investment management costs

Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Portfolio management 13,860 13,860 27,720
════════ ════════ ════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Portfolio management 12,865 12,865 25,730
════════ ════════ ════════
11. Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Charitable activities 57,629 49,676 107,305
Support costs 10,190 9,934 20,124
──────── ──────── ─────────
67,819 59,610 127,429
════════ ════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Charitable activities 123,511 62,760 186,271
Support costs 4,704 4,705 9,409
───────── ──────── ─────────
128,215 67,465 195,680
═════════ ════════ ═════════

21

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

12. Expenditure on charitable activities by activity type

Activities
undertaken
Grant funding		 Total funds Total fund
directly of activities Support costs 2026 2025
£ £ £ £ £
Charitable activities 65,487 41,818 9,432 116,737 186,368
Governance costs – – 10,692 10,692 9,312
──────── ──────── ──────── ───────── ─────────
65,487 41,818 20,124 127,429 195,680
════════ ════════ ════════ ═════════ ═════════

Activities directly undertaken can be further analysed as:

2026 2025
£ £
59 Dinner 2,418 –
Benevolence 9,887 18,664
Colonel of the Regiment – 77
Community Engagements 25 –
Comrades 9,803 3,274
Digital Communications 539 –
Dragon Connect 11,750 12,000
General expenses 3,770 3,603
Memorials 50 145
Officers' Society 14,314 12,388
PRI expenditure 2,694 14,722
RMAS 1,408 1,646
PRI Stock (19,244) –
Recruiting 6,094 13,104
Refreshments & hosting 198 236
Regimental wine expenses 1,791 –
RHQ expenses 3,358 4,187
Rorke's Drift Lunch 4,463 4,920
Royal Welsh Club 1,625 346
Rugby expenses 2,492 2,122
Wreaths 1,091 2,644
Y Cymry Brenhinol expenses 6,961 8,768
──────── ─────────
65,487 102,846
════════ ═════════
Grants (note 14) 41,818 83,425
Share of support costs (note 13) 9,432 97
Share of governance costs (note 13) 10,692 9,312
──────── ────────
61,942 92,834
════════ ════════
Analysis by fund
Unrestricted funds 67,819 128,215
Restricted funds 59,610 67,465
───────── ─────────
127,429 195,680
═════════ ═════════

22

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

13. Analysis of support costs

Charitable
Governance
activities costs Total 2026 Total 2025
£ £ £ £
Bank charges 256 – 256 97
Audit fees – 7,000 7,000 6,740
Accountancy fees – 3,692 3,692 2,572
Finance & admin support 9,176 – 9,176 –
─────── ──────── ──────── ───────
9,432 10,692 20,124 9,409
═══════ ════════ ════════ ═══════
Analysis of grants
Benevolence Grants:
2026 2025
£ £
ABF The Soldiers Charity 11,709 11,368
British Gas Trading Limited (formerly Pozitive Energy Limited) 800 2,400
Valda Energy Limited 800 2,400
Corp of Drums 75 75
The Friends of Brecon Cathedral 20 20
The Friends of Llandaff Cathedral 100 200
──────── ────────
13,504 16,463
════════ ════════
Welfare Grants:
2026 2025
£ £
1 R WELSH 16,942 57,216
3 R WELSH 9,097 3,978
Wales ACF 600 2,548
Officers' Society – 1,000
Pontypridd Comrades RRW – 570
Other welfare grants 1,675 1,650
──────── ────────
28,314 66,962
════════ ════════
───────── ─────────
Total Grants 41,818 83,425
═════════ ═════════

14. Analysis of grants

The charity awarded 20 grants (2025: 20) during the year.

15. Taxation

As a charity, the Foundation is exempt from tax on income and gains, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charges have arisen in the charity.

23

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

16. Net gains on investments

Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Gains/(losses) on listed investments 108,330 108,329 216,659
═════════ ═════════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Gains/(losses) on listed investments 28,807
════════		 28,807
════════		 57,614
════════

17. Employees

The Regimental Secretary and Assistant Regimental Secretary, who administer the foundation, are employed by MOD.

18. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2025: £nil).

No trustees were reimbursed for expenses during the year (2025: £nil).

19. Transfers between funds

A transfer of £5,431 (2025: £6,368) has been made from unrestricted reserves to the Y Cymry Brenhinol restricted reserve. This represents the charity's contribution to the production of Y Cymry Brenhinol, the annual Regimental journal.

20. Investments

Cash or cash Listed
equivalents investments Total
£ £ £
Cost or valuation
At 1 April 2025 84,719 3,246,384 3,331,103
Additions 1,183,325 942,042 2,125,367
Disposals (1,055,896) (908,230) (1,964,126)
Fair value movements – 216,659 216,659
──────────── ──────────── ────────────
At 31 March 2026 212,148 3,496,855 3,709,003
════════════ ════════════ ════════════
Impairment
At 1 April 2025 and 31 March 2026 – – –
════════════ ════════════ ════════════
Carrying amount
At 31 March 2026 212,148 3,496,855 3,709,003
════════════ ════════════ ════════════
At 31 March 2025 84,719 3,246,384 3,331,103
════════════ ════════════ ════════════

24

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

20. Investments (continued)

All investments shown above are held at valuation.

Financial assets held at fair value

The investment portfolio is managed by Evelyn Partners and is valued at closing market value on 31 March 2026.

21. Stocks

2026 2025
£ £
Finished goods and goods for resale 20,740 –
═══════ ════
22. Debtors
2026 2025
£ £
Trade debtors 6,021 6,971
Prepayments and accrued income 9,750 12,901
Other debtors – 19,079
──────── ────────
15,771 38,951
════════ ════════
23. Creditors: amounts falling due within one year
2026 2025
£ £
Trade creditors 3,092 –
Accruals and deferred income 14,200 13,271
Other creditors 169,759 168,059
───────── ─────────
187,051 181,330
═════════ ═════════

Other creditors relates to Investments owned by 1st Battalion The Royal Welsh, managed as a joint portfolio.

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation has no control over these investments and 1st Battalion The Royal Welsh can withdraw the funds at any time.

25

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

24. Analysis of charitable funds

Unrestricted funds

At Gains and
At
1 Apr 2025 Income Expenditure Transfers losses 31 Mar 2026
£ £ £ £ £ £
General funds 1,020,156 266,424 (98,628) (5,431) 108,330 1,310,095
PRI fund 774 5,702 (2,694) – – 3,782
──────────── ───────── ───────── ─────── ───────── ────────────
1,020,930 272,126 (101,322) (5,431) 108,330 1,313,877
════════════ ═════════ ═════════ ═══════ ═════════ ════════════
At Gains and
At
1 Apr 2024 Income Expenditure Transfers losses 31 Mar 2025
£ £ £ £ £ £
General funds 1,047,304 76,771 (126,358) (6,368) 28,807 1,020,156
PRI fund 6,602 8,894 (14,722) – – 774
──────────── ──────── ───────── ─────── ──────── ────────────
1,053,906
════════════		 85,665
════════		 (141,080)
═════════		 (6,368)
═══════		 28,807
════════		 1,020,930
════════════

26

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

24. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At Gains and
At
1 Apr 2025 Income Expenditure Transfers losses 31 Mar 2026
£ £ £ £ £ £
Benevolence fund 2,272,391 61,379 (50,570) – 108,329 2,391,529
The Regimental
Journal - Y Cymry
Brenhinol – 1,530 (6,961) 5,431 – –
The Officers'
Society Fund 7,734 15,675 (14,314) – – 9,095
Royal Welsh Club 4,026 604 (1,625) – – 3,005
──────────── ──────── ──────── ─────── ───────── ────────────
2,284,151 79,188 (73,470) 5,431 108,329 2,403,629
════════════ ════════ ════════ ═══════ ═════════ ════════════
At Gains and
At
1 Apr 2024 Income Expenditure Transfers losses 31 Mar 2025
£ £ £ £ £ £
Benevolence fund 2,236,699 65,714 (58,828) – 28,807 2,272,392
The Regimental
Journal - Y Cymry
Brenhinol – 2,400 (8,768) 6,368 – –
The Officers'
Society Fund 4,265 15,856 (12,388) – – 7,733
Royal Welsh Club 3,357 1,015 (346) – – 4,026
──────────── ──────── ──────── ─────── ──────── ────────────
2,244,321
════════════		 84,985
════════		 (80,330)
════════		 6,368
═══════		 28,807
════════		 2,284,151
════════════

27

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

24. Analysis of charitable funds (continued)

Welfare fund

The fund represents income which can only be spent on specific items which fall under the welfare restricted fund category.

Benevolence fund

The fund represents income which can only be spent on specific items which fall under the benevolence restricted fund category. Examples of qualifying expenditure include repairs and adaptations to ex-service men and women's homes, assistance with mobility and assistance with priority debt such as rent arrears or light and heating costs.

The Regimental Journal - Y Cymry Brenhinol

The is the Regimental Journal of the Royal Welsh. It is produced annually and is a full colour, 100+ page magazine. The journal is distributed to regular and reserve officers and soldiers, comrades, regimental bereaved widows and their families and other key people in Wales. It usually has a circulation of 1,500 copies.

The Officers' Society

The Officers' Society organises lunches and dinners with the main event being the Annual Dinner, usually taking place in November in Cardiff.

Royal Welsh Club

The Royal Welsh Club is a restricted fund which represents income and expenditure in respect of mental health and wellbeing. The club aims to provide support to veterans and organise get togethers and events such as coffee mornings for veterans to meet and discuss any issues they may be experiencing.

25. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2026
£ £ £
Investments 1,120,640 2,588,363 3,709,003
Current assets 202,150 (6,596) 195,554
Creditors less than 1 year (8,913) (178,138) (187,051)
──────────── ──────────── ────────────
Net assets 1,313,877 2,403,629 3,717,506
════════════ ════════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2025
£ £ £
Investments 1,000,787 2,330,316 3,331,103
Current assets 26,778 128,530 155,308
Creditors less than 1 year (6,635) (174,695) (181,330)
──────────── ──────────── ────────────
Net assets 1,020,930 2,284,151 3,305,081
════════════ ════════════ ════════════

28

The Royal Welsh Regimental Welfare and Benevolence Foundation Charitable Incorporated Organisation

Notes to the Financial Statements (continued)

Year ended 31 March 2026

26. Financial instruments

The carrying amount for each category of financial instrument is as follows:

2026 2025
£ £
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments measured at amortised
cost 237,943 71,968
════ ═════════
Financial assets that are equity instruments measured at cost less impairment
Financial assets that are equity instruments measured at cost less
impairment 3,496,855 3,246,384
════ ════════════
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost 17,292 13,271
════ ════════

27. Analysis of changes in net debt

At
At 1 Apr 2025 Cash flows 31 Mar 2026
£ £ £
Cash at bank and in hand 116,357 42,686 159,043
═════════ ════════ ═════════

29