OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-03-31-accounts

National Forest Company Annual Report and Accounts For the period 1 April 2024 to 31 March 2025

HC 1347

Company Number: 02991970 Charity Number: 1166563

National Forest Company Annual Report and Accounts For the period 1 April 2024 to 31 March 2025

Presented to Parliament pursuant to Article 6 of the Government Resources and Accounts Act 2000 (Audit of Non‑profit‑making Companies) Order 2009

Ordered by the House of Commons to be printed on 23 October 2025

HC 1347

© Board of Trustees of the National Forest Company copyright 2025

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view - - this licence, visit nationalarchives.gov.uk/doc/open government licence/version/3.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at www.gov.uk/official-documents.

Any enquiries regarding this publication should be sent to us at enquiries@nationalforest.org.

ISBN 978-1-5286-5820-1

E03383306 10/25

Printed on paper containing 40% recycled fibre content minimum

Printed in the UK by HH Associates Ltd. on behalf of the Controller of His Majesty’s Stationery Office

Contents

Chair’s letter 2
Chief Executive’s foreword 3
Directors’ Annual Report 4
Strategic Report 7
Board of Trustees 14
Sustainability Report 17
Statement of Trustees’ and Accounting Officer’s Responsibilities 22
Governance Statement 23
Remuneration and Staff Report 31
The Certificate and Report of the Comptroller and Auditor General to the
Members of The National Forest Company and the Houses of Parliament 36
Consolidated Statement of Financial Activities and
Income and Expenditure (SOFA) 40
Group (Consolidated) Balance Sheet 41
Parent Charity Balance Sheet 42
Consolidated cash flow statement 43
Notes to the Accounts 44

National Forest Company

Enterprise Glade, Bath Yard, Moira, Swadlincote, Derbyshire DE12 6BA email: enquiries@nationalforest.org Tel: +44 (0) 1283 551211

nationalforest.org

National Forest Company – Annual Report and Accounts 2024-25

Chair’s letter

It is a pleasure as Chair of the National Forest Company (NFC) to be able to celebrate a year of real progress and significant delivery. Indeed, at a time when the organisation has recently marked its 30th anniversary in parliament with the launch of the Thriving Together report, it is a moment to also look back on the many achievements of the NFC and to set an ambitious agenda for the future.

Such achievements in the National Forest speak for themselves – the landscape transformation, biodiversity improvements, access benefits and economic uplift since the 1990s have all exceeded expectations. Just as the government is championing how growth and nature can be delivered hand in hand, the National Forest stands as a shining example of success – a proof of concept across a whole 200 square mile landscape. In an increasingly polarised world, it is heartening to see that such multiple benefits can still be achieved by thinking big and working together.

In its 30 years, the NFC has been through many changes and I am grateful to the six Chairs that have come before me to steer the organisation to what it is today. It has grown significantly in stature and purpose, not least doubling in size and turnover since it achieved charitable status in 2016. My thanks also go to Defra as our sponsor department for providing their continued support and funding to underpin that success. We were delighted to be able to host a visit from the Defra Secretary of State and Nature Minister during the year to demonstrate the value of long-term funding and focused effort to bring about transformation at scale.

So, it is fitting that having reached the milestone of 30 years of the NFC, we have now embarked on replicating that approach with the launch of the

first of three new national forests, the Western Forest, at the end of the year. This offers the opportunity to transform an agricultural landscape through trees, increasing yield, resilience and impact, and expanding the National Forest model. We look forward to working closely with colleagues at the Western Forest in the years to come, and to building a more influential network.

We are lucky at the NFC to have a strong Board and I would like to thank my fellow Trustees for their continued efforts during the year, in particular Paddy Harrop who came to the end of his term at the end of December 2024, having served on the Board for seven years and given such sterling service. We look forward to his continued involvement as a charity Member and Ambassador.

As the NFC now focuses its attention on 2025-26 with plans for more tree planting, a blueprint for the transformation of the Conkers visitor centre, completion of the first phase of the Midlands Forest Network and further developments for new national forests, there is no shortage of ambition. The organisation is in good shape, but success will require extending ever wider our network of businesses, funders, landowners and partners to have even greater impact. Thank you for all your support to date and I would encourage us all to join together with a renewed purpose as we look ahead to the next 30 years.

Dr Tony Ballance Chair of the Board of Trustees

2

National Forest Company – Annual Report and Accounts 2024-25

Chief Executive’s foreword

2024-25 was the end of Defra’s five-year Nature for Climate Fund (NFCF) programme aimed at accelerating tree planting rates across the country. The good news is that the rates of woodland creation have increased by 156% since the beginning of the programme and now stand at the highest level for 20 years, even before you add those trees planted outside of woodlands. The downside, however, is that this is still not enough to meet the very ambitious government targets or the levels of tree planting recommended by the Climate Change Committee. What the figures do show is that whilst progress is being made, there is still an urgency for organisations like the NFC to continue to step up their efforts and push themselves and the sector to do more.

I am pleased to say that, as a NFCF delivery body, the NFC is responding to this challenge. During the year we met our tree planting targets, pushed forward with proposals to connect up our wooded landscapes as part of the Midlands Forest Network and supported four pilot schemes to take forward the selection of a new national forest, culminating in the Western Forest being announced by the Minister in the spring. With the recent Spending Review seeing a strong settlement for trees and the new government having committed to three new national forests in its manifesto, there are significant opportunities for optimism for the future.

This report provides more detail of the NFC’s other achievements throughout 2024-25 and below are a few selected highlights that show the range of outcomes for the environment, communities and the economy:

This has been a real team effort during a year of change and I would like to extend my thanks to the NFC Board and staff team for their enthusiasm and drive in making it all happen. Our thanks also to Amanda Fletcher who left us as Director of Corporate Services in December 2024 and to Bev Swift who stepped in as Interim Finance Director to see us through some important financial changes.

Equally important are our partners, who deserve recognition for all their contributions during the year. A huge thank you to the many landowners, funders, businesses, local authorities, community groups and individuals who have gone the extra mile to support the National Forest and our growing aspirations. We look forward to working with you in 2025-26 and bringing some of that optimism to the year ahead.

John Everitt OBE FRSA Chief Executive/Accounting Officer

3

National Forest Company – Annual Report and Accounts 2024-25

Directors’ Annual Report

Introduction

This report provides the information as required by company law. In addition, as the National Forest Company (NFC) is a registered charity, the report provides any additional information as required by the Statement of Recommended Practice (SoRP) module ‘Trustees’ annual report’. The Trustees have agreed that a single report should be produced providing the required information rather than a separate Directors’ report and Trustees’ annual report.

National Forest Company status

The National Forest Company (NFC) was established in April 1995 with the objective of overseeing the creation of the National Forest which spans 200 square miles of central England. The NFC is a company limited by guarantee (registered number 2991970) and a registered charity (registered number 1166563) and operates from its registered office at Enterprise Glade, Bath Yard, Moira, Swadlincote, Derbyshire DE12 6BA.

Since being registered as a charity in April 2016 it has had the status as a Non-Profit Institution within the Public Sector, specifically within Central Government, as defined by the Office for National Statistics with no individual or entity having a controlling interest. The business of the charity is governed by its Board of Trustees however the charity does, given the levels of grant in aid funding received, continue to place economic reliance on the Department for Environment, Food and Rural Affairs (Defra).

Objectives and activities

The objects of the NFC as contained in its Articles of Association are:

‘For the public benefit, the conservation, protection and improvement of the physical and natural environment so as to secure and enhance the enjoyment by the public of the same, in particular but without limitation to:

financial hardship or social and economic circumstances, have need of such facilities; and the protection or conservation of the environment; and

Strategy and priorities

The National Forest Strategy is based on its 25 Year Vision to 2045 with a focus on mitigating and adapting to a changing climate, including ambitious long term aspirations for 33% forest cover, access to woodland within 15 minutes for all Forest residents, and a low carbon economy.

The Corporate Plan 2023-2026 provides further detail with annual Key Performance Indicators based on 5 main operational themes for the Forest: Create, Manage, Inspire, Engage and Grow. Development themes of building the brand and securing resources for the Forest, and finance and resources themes relating to effective governance and management are also included.

Grant funding from Defra contributed significantly towards the delivery of objectives for the year, whilst simultaneously contributing to the delivery of the Defra Strategy, 25 Year Environment Plan and Environmental Improvement Plan.

Public benefit

In overseeing the strategic direction and activities for the year, the Trustees have been mindful of the Charity Commission guidance on public benefit and are satisfied that the NFC complies with these requirements.

The National Forest acts as a national exemplar of sustainability and its public benefit is based on its environmental, social and economic outcomes to mitigate and adapt to a changing climate.

The direct environmental benefits include the restoration of the landscape from planting more than 9.8 million trees since inception and the services that this provides for our natural capital including carbon sequestration, clean air and water, and protection of soils, as well as the protection and enhancement of wildlife. This has particular resonance as we respond to the urgency of both climate change and biodiversity loss. Social benefits relate to the physical and mental wellbeing of individuals who engage with the Forest and the considerable benefits

4

National Forest Company – Annual Report and Accounts 2024-25

that are derived from programmes that promote access, volunteering, education, skills and training, improving the equality of these opportunities for all our communities. Economic benefits are provided to society as a whole through promoting more sustainable livelihoods, shifting to a low carbon and circular economy that reduces negative impacts, and through targeted work with deprived communities.

The benefits are felt by 240,000 residents living within the National Forest area, covering some of the least and most deprived areas of the country, with significant pockets of deprivation within our rural and urban areas; more than 8 million visitors who enjoy the Forest as a destination each year; 300,000 plus individuals who experience the National Forest through digital marketing; 16 million people reached by media and communications activity, and the expanding audience of supporters, partners and stakeholders who are inspired to engage with our work.

Volunteering statement

It is central to the ethos of the National Forest’s development that local communities, businesses and visitors are offered opportunities to become engaged in creating and looking after the Forest, helping to underpin more sustainable, cost effective and resilient management. Volunteering has played a key role in this. Since its inception, the NFC has facilitated a wide range of organisations across the Forest to offer volunteering opportunities including conservation, woodland creation and management, and wildlife monitoring projects. The NFC now supports a Forest-wide network of more than 70 Community Woodland Management Groups providing sharing of knowledge, resources, training and skills development. The NFC itself is also directly involved in the engagement and management of volunteers.

During 2024-25, the NFC continued its volunteering activities through the Community Woodlands project funded by the National Lottery Heritage Fund, creating new volunteer groups in the heart of the National Forest, maintenance of the Meta Garden at the Conkers Discovery Centre and other activities. The volunteer sessions in 2024-25 totalled more than 38,172 hours (2023-24: 39,444 hours), with an approximate value of £466k (2023-24: £477k).

Equality, Diversity and Inclusion

At the heart of the NFC approach to Equality, Diversity and Inclusion (EDI) is the belief that the Forest is for everyone, and that the benefits of woods and trees and the opportunities to access them, should be equally available to everyone.

Assessing and monitoring progress against this underpins the NFC’s work.

The NFC strives to give every individual the same opportunities to succeed, regardless of their background, and to create a workplace where everyone feels valued and respected, free from discrimination or harassment. Building positive relationships among all team members, and embracing differences, is key to achieving this. By prioritising EDI in its objectives and strategies, the NFC aims to enhance its ability to attract, nurture and support talent from all backgrounds, bringing a diversity of perspectives and ideas, and helping to tackle challenges with innovation and creativity.

During the year the NFC updated its EDI action plan with key priority actions taken forward by a working group with oversight from a dedicated Trustee. This has included work on the NFC’s website with improvements to the accessibility of content and communications, and training for staff. EDI considerations also continue to be built into programme design with a particular focus on new projects this year such as arts and creativity to benefit less well-represented groups, and greenspaces to benefit those in deprived urban areas. This has also been expressed through the Timber Festival and community work to provide opportunities to engage new and broader audiences.

The NFC is a Disability Confident employer with a status of Committed and operates a guaranteed interview scheme for disabled applicants who declare a disability as defined by the Equality Act 2010 and meet the essential criteria for the post. To continue its support for disabled employees, the NFC joined Defra’s framework agreement with Bennett Workplace in March 2023 to carry out workplace assessments and apply any reasonable adjustments for employees with specialist needs. The National Forest is also a partner in the Diverse Sustainability Initiative which acts to transform diversity within the sustainability and environmental sector.

Grant making policy

The NFC’s grant making is targeted to support public benefit and the Charity’s objects in line with Charity Commission guidance, and guidance set out in Managing Public Money. Grants awarded are an important means of delivering multiple Forest objectives including forest creation, woodland management, biodiversity, access, arts and culture, and community programmes. Grants are administered through an assessment process that considers priorities, impact and value for money.

5

National Forest Company – Annual Report and Accounts 2024-25

Programmes are overseen by Trustee-led Working Groups, with higher level grants approved by the Board. This provides the necessary assurances and includes grant conditions for recipients to ensure that charitable purposes are adhered to. Forest creation is secured through grants awarded via the Changing Landscapes Scheme (CLS), for areas greater than 1 hectare, as well as via Parkland and Freewoods schemes, with a new Farming and Forestry grant scheme piloted.

The woodland management grant programme supports active management of woodlands covering a range of objectives including forestry, wildlife, access, landscape and community use.

Qualifying projects are normally eligible for up to 60% of total costs, with some funded programmes paying 100%.

Small grants are used to support community groups and small businesses that are helping to deliver the National Forest vision. Supported activities and projects can include arts and culture, volunteering, sustainable tourism, accessible green spaces, improved wellbeing, and growing and diversifying forest-related businesses. Grants normally require up to 50% of match- funding, helping to lever additional funds to support the Forest.

Grants amounting to £2,210,688 were awarded during 2024-25 (2023-24: £897,739), which included four grants awarded to successful applicants to the Forest for the Nation competition amounting to £620,539 (2023-24 £nil).

Representing a continued growth of grant schemes to deliver forest creation, the value of Changing Landscape Scheme grants increased, along with new Farming & Forestry grants being awarded for the first time. The Creating a Forest for Learning project continued supporting schools to provide outdoor learning training for school staff and to enhance the outdoor learning environment within schools through woodlands, with an increased focus on secondary schools. The ‘Severn Trent Great Big Nature Boost’ supports work on biodiversity restoration and enhancement across the Forest. This provided funds for the fifth year of the Habitat Enhancement Grant. The NFC’s Small Grants this year were targeted to help improve wellbeing and increase participation from under-represented communities through activities such as Forestinspired arts and wellbeing activities outdoors; as well as continued support for sustainable tourism.

----- Start of picture text -----
2024-25
2024-25 2023-24
No of
£ £
grants
----- End of picture text -----

Changing Landscape Scheme grants 24 645,802 214,736
Farming & Forestry grant 1 434,884 –
Creating a Forest for Learning project 10 10,217 96,885
Habitat Enhancement Grants 52 225,928 196,870
Woodland management grants 51 103,262 107,779
NFC’s Small Grants programme 21 30,239 63,952

The NFC’s approach is to work collaboratively with partners, with grants being distributed to private landowners, community groups and other charities in the pursuit of its objectives. Grants to charities this year included Sheffield & Rotherham Wildlife Trust, Forest of Avon Trust, Ribble Rivers Trust, National Trust, Woodland Trust, Moira Furnace Museum Trust and St Joseph’s Rural Centre.

6

National Forest Company – Annual Report and Accounts 2024-25

Strategic Report

Financial overview

A net positive movement of funds of £810k was achieved for the year ending 31 March 2025 (202324: deficit of £657k) comprising an increase of £809k in unrestricted funds (2023-24: deficit of £1.124m) and a surplus of £1k relating to restricted funds (2023-24: £467k).

The unrestricted surplus of £810k is largely as a result of the receipt of grant income (£1.69m) for the purchase of land and the expenditure being capitalised, but offset by an impairment against the value of land held at 31 March 2025 of £749k. The resultant cash flow movement for the year is a net outflow, as per the consolidated cash flow statement, of £100k (23-24: outflow of £907k).

Total income for the year ending 31 March 2025 was £10.19m (2023-24: £7.21m). This represented an increase on the previous year and comprised £3.30m grant in aid from Defra (2023-24: £2.53m) and £3.16m from the fifth year of the Nature for Climate Fund programme (2023-24: £1.40m) also funded by Defra. The NFC continues to rely heavily on Defra funding and the high priority given to forestry and carbon within government gives confidence that both grant in aid and Nature for Climate Fund will continue at broadly similar levels.

The ongoing impact of cost of living pressures in the wider economy meant that corporate sponsorship and donations income were challenging with £137k achieved for Dedicate a Tree/ Dedicate a Grove (2023-24: £177k) however total (non-Defra) unrestricted income increased to £2.13m against the previous year ‘s £1.74m mainly due to income received relating to carbon sequestration.

Expenditure for the year ending 31 March 2025 increased to £9.25m (2023-24: £8.03m), with enhanced delivery of charitable objectives, in particular on achievement of Nature for Climate Fund targets and new national forests. Of this, unrestricted expenditure was £5.42m (2023-24: £5.69m) with £749k being related to impairment of land and Conkers. Restricted expenditure was £3.83m (2023-24: £2.34m).

Restricted income again grew to £5.52m in 202425 (2023-24: £2.81m), largely comprising £3.16m Nature for Climate Funds, £708k for new national forests, £294k for the Charnwood Forest Landscape Partnership Scheme, £490k for the Severn Trent Great Big Nature Boost project and £324k for Heart of the National Forest infrastructure projects. These

projects, with their third-party funding, make a significant contribution to the delivery of corporate priorities, and also contribute to core cost recovery.

At the end of March 2025, the NFC reserves had increased from £16.02m to £16.83m, largely due to new site acquisitions increasing the fixed assets of the organization. This includes unrestricted general funds of £683k of which £476k is non-designated free reserves and £207k non-liquid unrestricted reserves.

Fundraising Statement

The NFC undertakes fundraising to support both core activity and project and capital needs in line with the Corporate Plan 2023-26. Fundraising is undertaken through an inhouse Development team led by the Director of Development. Funds are sought through grant-making bodies (public and private), individual donations and business support from companies whose activities and values align with those of the NFC.

The NFC is registered with the Fundraising Regulator and pays the voluntary annual levy on charitable organisations which spend more than £100,000 a year on fundraising activities. As such, the NFC demonstrates its compliance with the Code of Fundraising Practice and commitment to The Fundraising Promise that its fundraising is legal, open, honest and respectful – both can be viewed at fundraisingregulator.org.uk.

The NFC’s Development Working Group, currently comprising one Trustee and two specialist advisors, and reporting to the Board, is responsible for oversight of the income generation strategy which includes fundraising.

Operationally, responsibility for the development, management and monitoring of fundraising activities is carried out by the NFC’s Development Team. No complaints regarding the NFC’s fundraising practice were received during the year.

Achievements against targets for 2024‑25

This year saw Forest cover increase further beyond the milestone of 25% of land area and towards the 33% aspiration through grants, acquisitions and the planning process. The 149 hectares (ha) of new Forest creation was up on last year (2023-24: 139 ha) and this, coupled with hectares secured by planting previously acquired sites, meant that Defra’s Nature for Climate Fund target for the year was also met. Notable creation schemes this year included

7

National Forest Company – Annual Report and Accounts 2024-25

new acquisitions near Newchurch in Needwood, Oakthorpe in the Heart of the National Forest and Ulverscroft in Charnwood, a pilot Farming & Forestry grant scheme with the National Trust, and a range of other grants with private, public and voluntary sector partners. Forest creation activity also helped to deliver 84 ha of new access this year providing additional public benefit to communities and increasing the number of households within walking distance of an accessible woodland to more than 70%.

Alongside forest creation, our work to secure good management of woodlands and other habitats continued, improving their condition, reducing disease and enhancing wildlife. Through grants, support and advice, 662 ha of woodlands were either brought into or renewed their active management (2023-24: 562). This was complemented by the Habitat Enhancement Grant with Severn Trent’s Great Big Nature Boost programme supporting the restoration or enhancement of a further 63 ha of non- woodland priority habitats. This work is moving towards our target of 30% of the Forest area for biodiversity by 2030. This year saw more than 150,000 trees planted (2023-24: 93,000), on newly acquired sites, as part of grant schemes, through the planning process or from community Plant a Tree events, bringing the overall tree planting totals closer to 10 million.

Forest creation work outside of the National Forest boundary was supported by the continued development of mapping and strategy for the Midlands Forest Network initiative. Alongside this, significant efforts were focused on running four pilot schemes to identify the first of the government’s commitment to three new national forests, culminating in the Western Forest being selected as the winning bid and launched in March 2025.

Our community work had another successful year with a strong focus on our Creating a Forest for Learning programme. Primary schools in the Forest engaged in regular outdoor learning increased to 91% (up from 90% in 2023-24), and secondary schools saw a marked increase, now up to 63%, with support targeted to young people with Special Educational Needs and Disabilities. This is particularly exciting as it involves students embarking on the Level 1 Forestry in the Community Award.

Scheme and Community Woodlands project, both supported by the National Lottery Heritage Fund, continued to thrive. More than 38,000 volunteer hours were contributed during the year and the number of community groups managing woodlands increased to over 70. This included work with Queen’s Hospital Burton, the BBC Make a Difference Woodland planted at Conkers and a community woodlands celebration event. Activities in Charnwood Forest, not least the declaration of Bradgate Park as a new National Nature Reserve for its geology, continue to make the case for the area being selected as a new UNESCO Global Geopark.

Our support for forest-related businesses and communities was enhanced by grants and advice with a focus on arts, wellbeing and sustainable tourism connected to the Forest. This included community arts organisations working in our Forest towns and health and wellbeing activities with harder to reach groups, alongside market testing and business support to bring forward new sustainable tourism accommodation. Economic growth opportunities have also been supported in the Heart of the National Forest with the creation of a new vision for the transformation of the Conkers Visitor Centre, and refurbishment works to establish a volunteer hub, as well as footpath upgrades with North West Leicestershire District Council, through the UK Shared Prosperity Fund.

Major events this year included the National Forest Walking Festival led by South Derbyshire District Council; the final Timber Festival run by partners Wild Rumpus; the launch of the Heart of the National Forest vision and launch of the ‘Thriving Together’ publication in the House of Commons to mark the 30th anniversary of the NFC. These were complemented by the new website going live, further landowner case study videos and a programme of national TV, radio and media activity.

Work towards the National Forest’s objectives was underpinned by a programme of research and evidence including an assessment of the Forest’s carbon baseline and net zero transition, reprofiling of forest cover and woodland management data, biodiversity audits and monitoring, and support to the national Treescapes initiatives.

A summary of progress against key targets drawn from the Strategy and Corporate Plan are set out below, demonstrating delivery against charitable objectives.

Work with volunteers, in particular through the Charnwood Forest Landscape Partnership

8

National Forest Company – Annual Report and Accounts 2024-25

Headline targets

----- Start of picture text -----
Targets Progress
Create:
Forest cover to reach 25.5% of 200 square Exceeded. 25.7% achieved. Note that 0.1% = 50 hectares (ha).
mile National Forest area.
150 ha of forest creation. Total of 149 ha delivered comprising 49.4 ha through land
acquisition, 93.14 ha through grant schemes and 6 ha from
planning gain.
150,000 trees planted. Exceeded. Total of 153,717 trees planted through NFC grant
schemes, sites and as a result of planning gain.
Manage:
Woodlands in active management. No specific target set as forest cover layer updated. 70%
achieved providing new baseline using updated forest cover
layer and nationally available data.
400 ha of woodlands brought or Exceeded. 662 ha achieved comprising new areas brought into
retained in active management. active management and renewals.
50 ha of priority non-woodland habitat Exceeded. 63 ha achieved comprising new areas brought into
brought into or retained in active active management and renewals.
management.
Inspire:
80% of National Forest schools regularly Target exceeded for primary schools with 91% achieved. 63%
delivering outdoor learning. of secondary schools achieved giving an overall schools’ figure
of 85%.
50,000 audience reached through arts Exceeded. 53,640 achieved comprising 31,740 people reached
programme including Timber Festival. through the Arts Grants; 17,703 through other projects and
3,061 through Timber Festival including production, artists
and guests.
Engage:
90 ha of new access created. 84 ha created in total. Includes 34.5 ha from CLS and 49.4 ha
from land acquisition.
50,000 volunteer hours completed in the 38,172 volunteer hours achieved including at Timber Festival
Forest each year. and on the National Forest Way. Likely to be an underestimate
as fewer organisations responded to reporting this year.
Equivalent to £466k in kind contribution.
----- End of picture text -----

9

National Forest Company – Annual Report and Accounts 2024-25

----- Start of picture text -----
Targets Progress
Grow:
----- End of picture text -----

Increase visitor numbers to 8.24m visitors reported via independent Scarborough Tourism
9.05m pa. Economic Activity Monitor (STEAM) Report 2024 based on 2023
figures (ie 1 year in arrears). Whilst numbers recovered were below
target, comparison showed that the National Forest recovered more
of its visitors than other areas within England.
223,200 Conkers visitors. 202,986 achieved. Poor weather during the early part of the year
had an adverse impact on visitor numbers.
80 National Forest businesses 72 achieved. Includes businesses that have received any direct
supported. grants, bespoke advice, support or training. Impact is more
significant as businesses supported outside the Forest boundary
and indirectly through wider business networking are not included.

Securing resources, building the brand, governance and leadership

Targets Progress
Securing resources:
Increase unrestricted income
for the NFC through sustainable
sources to £657k.		 £315k achieved. Levels reduced as a result of lower donations and
targeting of restricted projects. Excludes additional unrestricted
income secured from Defra.
Generate £582k of new restricted
income.		 £733k new funds raised for future work, including from Audemars
Piguet Foundation, Arts Council England and National Lottery
Heritage Fund, with £297k for 2024-25 financial year. Excludes
additional Defra funds secured for work on new national forests.
Secure £290k through Conkers
profit share and gift aid.		 £291k achieved, even with poor weather in early part of the year
reducing admissions numbers.
Building the brand:
Increase National Forest website
sessions to 250k.		 188k achieved with delays to launch of new website.
Increase media profile: achieve at
least 8 national and 52 local pieces
of press coverage.		 45 national and 110 local pieces of press coverage achieved.
Increase profile through 14m social
reach and media impressions.		 5 million social reach and media impressions achieved as a result of
more targeted social media work.
Governance and leadership:
Board effectiveness: attain Achieved. Assurance secured through review of previous year’s
assurance based on Charity activity.
Governance Code.
Unqualified audit opinion. Achieved. Accounts laid on time with unqualified opinion.

10

National Forest Company – Annual Report and Accounts 2024-25

Income generation performance

Income generation performance for the year was a mixed picture with unrestricted income below target, but significant success with restricted income for new projects. Although impacted by cost-of-living pressures, charitable and corporate support continued, and income was supported by additional unrestricted Defra funds for inflationary increases and restricted Defra funds for work on new national forests.

Total income during 2024-25 was £10.19m (202324: £7.21m). This represented an increase on the previous year and comprised £3.30m grant in aid from Defra (2023-24: £2.53m) and £3.16m from the fifth year of the Nature for Climate Fund programme (2023-24: £1.40m) also funded by Defra and including income for the Midlands Forest Network and new national forests. Income this year included corporate partnerships with 26 partners, including brand licence income, section 106 funds, tree dedication schemes, major gifts and a legacy from the late David Charles Barnett. In addition, restricted funds were secured from: the Audemars Piguet Foundation and Garfield Weston Foundation for the Creating a Forest for Learning project; National Lottery Heritage Fund for the Getting to Know your Greenspace project; National Lottery Heritage Fund for work on the Charnwood Forest Landscape Partnership Scheme; Arts Council England for creative projects across Burton and Coalville; local authority partners and others for work on tourism; Severn Trent for the Great Big Nature Boost programme; Valpak, the Phillips Charitable Trust and UK Shared Prosperity Fund via North West Leicestershire District Council for the creation of the Gatehouse volunteer hub; and Defra for landowner communications and promotions work.

Investment income for the year was managed by Cazenove through the NFC’s investment (£500k invested in December 2020) in their Charity Responsible Multi-Asset Fund in line with our ethical investment policy. The policy ensures that the NFC’s assets are invested in responsible investment funds, and specific assurance has been received that there are no investments in Russian assets. Careful management of investments is limiting liabilities from the conflicts in Ukraine and the Middle East, and uncertainties of trade policies on global markets. The Audit & Risk Committee has responsibility for agreeing strategy and monitoring the investment performance against agreed benchmarks including the objective of inflation plus 4% over the long term. In the year, funds have achieved c4%. During the reporting period there were no significant events that

affected the financial performance and position of the investment. The fund value as at the reporting date was slightly down at £507k (2023-24: £524k), although there are no plans to realise the assets and it is anticipated that the fund will increase in value over the medium term.

The financial outlook for the NFC will be impacted by the government’s Spending Review and the resulting settlements for Defra’s Arm’s Length Bodies which will determine levels of core income. Whilst this is positive for 2025-26, the longer term funding position has still to be finalised. The future unrestricted funding position is likely to be challenging in the short term with pressures on levels of household and corporate income, although this has the potential to increase as the economy strengthens. Levels of restricted and commercial funds should be more resilient as the NFC broadens its funding portfolio and is able to present a more compelling case for investment.

The National Forest acknowledges and thanks all the organisations and individuals who have contributed their generous support during 2024-25, in particular:

Arts Council England Audemars Piguet Foundation Capital Fireplaces Ltd The David Family Foundation Department for Environment, Food & Rural Affairs East Staffordshire Borough Council

FatFace

Gardiner Bros & Co (Leathers) Ltd Garfield Weston Foundation James Latham plc My Pension Expert Ltd

National Lottery Heritage Fund

North West Leicestershire District Council

Omexom UK & ROI Powerteam Electrical Services (UK) Ltd

Mr Austin Reeves

Roger Bullivant Ltd

Rolls Royce

Rosewood Ltd

Selective Marketplace Ltd

Severn Trent

Mrs Susan Skirrow

Valpak Ltd Woodland Trust

Anonymous

11

National Forest Company – Annual Report and Accounts 2024-25

Plans for future periods

Key priorities for the coming year will focus on the ambitions set out in the Corporate Plan 2023 to 2026, as agreed by the Board, and include:

Create

Manage

Inspire

Engage

Grow

Cross-cutting work

12

National Forest Company – Annual Report and Accounts 2024-25

Risk Management

The Board is responsible for management and monitoring of the risks facing the NFC, with the subsidiary company taking responsibility for its own risks and reporting these to the NFC’s Audit & Risk Committee and Board. The principal strategic risks and uncertainties facing the NFC are set out below with corresponding plans for managing them.

Further information on risk and risk management is provided in the Governance Statement.

----- Start of picture text -----
Strategic risks Mitigation
----- End of picture text -----

Failure to adapt to changing Review of strategy and work programmes to include measures
climate and organisational for adaptation (Fire, flood, heat, water management, species
strategy and delivery impacted choice, wellbeing, etc). Annual review of policies to take account of
negatively climate change evidence and practice. Horizon scanning for long
term strategy and policy development with partners. Budget and
reserves in place for contingencies.
Inability to scale up Forest creation Represent the NFC on Nature for Climate Fund programme board
targets, meet Nature for Climate and provide oversight by Land and Forestry Working Group.
Fund commitments and take Develop strong pipeline of schemes and acquisitions. Work with
advantage of carbon/ tree planting land agency to identify and accelerate opportunities. Complete
opportunities. new grant schemes and strategy work. Work outside the boundary
on Midlands Forest Network corridors and new national forests to
increase hectares.
Income generation strategy Packaging work for restricted funding to cover core costs. New
inadequate and does not meet corporate and legacy programme to be further developed. High
targets. level fundraising group to be scoped. Development of new tree
offer for larger bids. Review of customer journey and messaging for
Forest Champions.
Loss of Defra funding support Complete Spending Review phase 2 advocacy, including through
(particularly as part of the Nature for Climate Fund Programme Board and Ministerial sessions.
Spending Review) and backing of Demonstrate NFC impact and value for money through new
key partners. research work. Raise profile of NFC with MPs, peers and in media.
Explore closer collaboration opportunities with partners.
Opportunities from new national Continue high level advocacy programme including at Ministerial
forests work lost or complicated by level with parliamentary events. Develop strong rationale and
poor brand and strategy. proposals for new national forests with Defra. Develop branding
proposals for the National Forest and the suite of national forests.
Run Western Forest grant programme to demonstrate concept.
Income risk – Gift aid and profit Complete in year repairs and refreshments for Conkers. Maximise
levels insufficient to deliver gift aid and marketing opportunities. Manage annual budget and
Conkers' vison and objectives and programme through National Forest Enterprises Board. Manage
provide long term sustainability, Conkers KPIs with Operator.
requiring subsidy from the charity.
Project planning and major cash Complete Conkers masterplanning exercise. Complete fundraising
investment for upgrading facilities strategy and Business Plan. Submit expression of interest and
at Conkers not secured, leading to secure development funds.
decline in turnover and profits.
Deterioration of assets – Major Continue to upgrade Preventative Maintenance Plan for Conkers.
investment or shutdown Update fixed assets register with Operator. Continue to ensure
required to deal with significant dialogue with tenants of buildings and insurers. Review use of
deterioration of properties, loss of property use in light of current leases and work on the Forest
insurers due to risk. Enterprise Hub.

13

National Forest Company – Annual Report and Accounts 2024-25

Board of Trustees

The Trustees of the NFC throughout 2024-25 were as follows:

----- Start of picture text -----
Date of
Name appointment Role
as Trustee
----- End of picture text -----

Tony Ballance 1 January 2024 Chair, Board of Trustees;
Member, Remuneration Committee
Penny Coates 1 April 2022 Member, Audit & Risk Committee;
Chair, National Forest Enterprises Ltd
John Everitt(1) 1 April 2015 Chief Executive
Ruth Gadsen 1 January 2023 Chair, Development Working Group
Alison Field 1 April 2018 Member, Land & Forestry Working Group; Chair, Land & Forestry
Working Group(2)and Senior Independent Director
Paddy Harrop(3) 1 April 2018 Chair, Land & Forestry Working Group;
Member, Audit & Risk Committee
Anne Jenkins 1 January 2021 Chair, Tourism, Recreation & Communities Working Group
Mike Kapur 1 April 2018 Chair, Audit & Risk Committee;
Member, Remuneration Committee
Matt Robinson 1 January 2023 Member, Audit & Risk Committee;
Chair, Remuneration Committee

(1) John Everitt is the NFC’s Chief Executive and also a Trustee. It was agreed that he should hold this dual role because of the nature of the NFC’s current funding position whereby a significant proportion of the NFC’s funds are from Defra and the Chief Executive holds the responsibility of Accounting Officer for those funds. To meet the standards for Managing Public Money, Accounting Officers are required to be represented at Board level. It is recognised that this is unusual within a charity, but is considered to be in the best interests of the Charity because of the funding relationship, and controls are in place to avoid any abuse of power or conflicts of interest. The Board has delegated the responsibility for the day-to-day management of the Charity to the Chief Executive. The Chief Executive reports directly to the Chair of Trustees and provides advice to the Board.

(2) Appointed Chair of Land & Forestry Working Group on 1 January 2025

(3) Retired 31 December 2024

Information on the recruitment and induction processes for Trustees and an overview of the governance arrangements in place is given in the Governance Statement. Trustees are required to disclose any interests they have that may potentially conflict with their management responsibilities for the NFC. This includes company directorships, public appointments and any other significant external interests. During 2024-25 no issues arose as a result of any Trustees’ conflicts of interest. No Trustee, other than the Chief Executive who is a Trustee, had any transaction with the NFC, other than being reimbursed expenses necessarily incurred in fulfilling their duties as per Trustees’ travel and expenses (Note 13). Information on the remuneration of the Chief Executive is detailed in the Remuneration and Staff Report.

Reserves

Total reserves at the end of the financial year increased to £16.83m from £16.02m. This movement in total reserves was made up of an increase in

unrestricted reserves of £809k with restricted reserves increasing by £1k from £485k to £486k.

The total unrestricted reserves balance of £16.35m comprises designated funds of £14.97m, revaluation reserves of £696k and a general fund balance of £683k. The general fund balance includes non-liquid assets of £207k meaning the Free Reserves balance at 31 March 2025 is £476k.

The Audit & Risk Committee reviewed the Reserves Policy during the year, prior to the Board reviewing the Policy at its subsequent meeting. Fund balances were further reviewed at year end and were approved as set out in the table below with a fund set aside to manage cash flows and other designated funds to mitigate risk. The designated funds support financial contingency, as well as enabling capital and one-off investments towards delivery of charitable objectives. Furthermore, there are designated funds of Investment Property Reserve which equates to the net book value of

14

National Forest Company – Annual Report and Accounts 2024-25

investment property held at the balance sheet date and a new Land and Buildings Capital Asset Reserve which equates to the net book value, less the revaluation reserve amount, of the land and buildings held at the balance sheet date.

This has increased the level of designated funds at 31 March 2025 to the £14.97m (2024: £4.01m) and consequently reduced the general fund balance to £683k (2024: £10.72m). The target funding levels alongside actuals at March 2025 are set out below:

Summary of Funds and Target Levels Target level
(range)		 Actual balance
at 31 March 2025
General Fund: Unrestricted free reserves
Working capital to manage cash flows		 £400k £476k
Designated Funds – Target Levels:
Financial Contingency Fund £950k £950k
Approximately four months running costs to be used in the event
of major incident
Conkers Transformation Fund £200k £112k

To support the costs of repairs and maintenance, transformation and capital refreshment for Conkers

Going concern

The Trustees have reviewed budgets, forecasts, and anticipated Grant in Aid receipts and other funding from Defra, and together with considering the potential impacts on its financial position from both internal and external risks, have concluded there is a reasonable expectation that the NFC has adequate resources to continue in operational existence for a period of at least 12 months from the date that the financial statements are approved. The Trustees are not aware of any proposed legislative changes which could significantly impact the organisation and consider that appropriate risk management procedures and mitigations are in place to monitor the operating environment and reduce any impact of known risks. Nor are they not aware of any other significant risks which potentially would impact on the ability of the organisation to continue to operate at the current level of activity.

All of the above factors inform the opinion that it is appropriate to adopt the going concern basis of preparation of the financial statements for 2024-25.

Auditors and their remuneration

Statutorily appointed auditor: Comptroller and Auditor General National Audit Office 157 – 197 Buckingham Palace Road London SW1W 9SP

The fee for the audit of the financial statements in 2024-25 is £72,500 (2023-24: £50,000). No non-audit work was conducted by the National Audit Office during 2024-25.

Internal audit

Forvis Mazars LLP First Floor Two Chamberlain Square Birmingham B3 3AX

Investment Managers

Cazenove Capital, 1 London Wall Place London EC2Y 5AU

Bankers

The Co-operative Bank Miller Street Manchester M60 0AL

Solicitors

Ansons Solicitors, St Mary’s Chambers 5-7 Breadmarket Street Lichfield Staffordshire WS13 6LQ

Pension liabilities

All the NFC staff are members of the Principal Civil Service Pension Scheme (PCSPS). Information on the pension arrangements and accounting policy applied to pension liabilities is provided in Note 1.13 of the financial statements. Pension arrangements are detailed in the Remuneration and Staff Report which also provides information on pension benefits to which the NFC Chief Executive qualifies. No other Trustees are members of the PCSPS.

15

National Forest Company – Annual Report and Accounts 2024-25

Losses, special payments and gifts

(this information is subject to audit)

There were no losses, special payments or gifts made during 2024-25 (2023-24: nil). No special severance payments that require disclosure were made during the year.

Government Functional Standards

The mandate for use of functional standards is provided by Managing Public Money (MPM) and endorsed by ministers through the Declaration on Government Reform. The standards support accounting officers to oversee functional work effectively and efficiently, and to target improvement.

Each standard sets expectations for what needs to be done, and why, relating to the work within its scope. The NFC Board is responsible for leading and directing the Charity and for determining strategy and guiding operational activity. Government functional standards are embedded within the National Forest Company’s polices and procedures which are overseen by the Board and relevant Committees. The provisions of the Board, enable Defra to monitor performance and delivery in relation to grants given to the NFC and describes the arrangements that exist to safeguard propriety and regularity.

the Blended Working Framework and provided ongoing review and refinement of flexible working arrangements. Measures to promote staff wellbeing continue to be embedded with 37% of staff being Mental Health First Aid trained.

Staff are incentivised to deliver high quality outcomes for the National Forest through annual performance related bonuses linked to their job descriptions, with an in-year bonus scheme also used to reward exceptional effort.

Personal data related incidents

No personal data related incidents occurred during the year which needed to be reported to the Information Commissioner’s office.

Post year end events and developments

There are no post year end events or developments which require to be reported on.

Payment of Suppliers

The standard term of payment for supplier contracts is 30 days from receipt and agreement of a valid invoice. This is embedded in all contracts with suppliers, with any exceptions agreed as part of contractual negotiations. However, the Company aims to pay undisputed invoices within 5 days of approval and 62% have been paid within this timescale (2023-24: 70%); 97% were paid within 10 days (2023-24: 95%). No claims were received during the year from suppliers for late payment of invoices under the Late Payment of Commercial Debts (Interest) Act 1998.

Employee Involvement

The National Forest Company regularly communicates with staff through a variety of mechanisms such as the bi-weekly staff meetings, written weekly updates and staff away days to provide information on matters of concern to them as employees. Additionally, staff are consulted on their views where decision making will affect their interests. During the year, an employee engagement survey was distributed to gather feedback on relevant issues with issues arising acted upon. The NFC continued to operate to

16

National Forest Company – Annual Report and Accounts 2024-25

Sustainability Report

About our data

Sustainability performance is reported in line with HM Treasury’s Sustainability Reporting Guidance 2024-25, as far as possible. The Greening Government Commitments (GGC) set out the actions UK government departments and their agencies will take to reduce their impact on the environment, in the current period April 2021 to March 2025. The NFC is below the organisational size threshold and exempt from GGC reporting but aligns with guidelines where possible. Where available, data from the last four years has been reported, as well as a baseline of 2017-18 in line with the GGC targets.

Carbon footprint reporting is aligned with the guidelines set out in the Greenhouse Gas Protocol (ghgprotocol.org). Reported figures are based on a mix of direct meter readings (manual or automatic) and billed amounts. Billed quantities may be subject to future adjustments dependent on supplier re-billing. To enable comparisons between years, data has been normalised by the average number of full-time equivalent (FTE) employees.

Task Force on Climate‑related Financial Disclosures (TCFD)

The NFC is below the Arm’s Length Body threshold for number of FTE staff (>500) or operating funding and income (>£500m) for mandatory reporting under the TCFD guidance.

Overview of carbon footprint

The NFC operates within the guidelines of a Blended Working Framework introduced in May 2022. The NFC continues to see lower emissions from electricity and lower business travel emissions per head compared to pre-COVID years, due to staff working more flexibly and fewer journeys needed with more meetings being held virtually.

Total emission per FTE has decreased compared to baseline. A significant reduction is reported in Scope 2 Emissions, 59% compared to baseline, due to a reduction in consumption alongside a decrease in the emission factor as the UK reduces coal use and increases renewable generation year on year.

----- Start of picture text -----
Summary of Greenhouse Gas
Unit 2024-25 2023-24 2022-23 2021-22 2017-18
Emissions tCO2e
----- End of picture text -----

Scope 1 Emissions – Fleet Vehicle tCO2e 1.37 1.08 0.67 – –
Scope 2 Emissions – Building Energy
Consumption tCO2e 8.36 6.91 8.17 8.92 20.59
Scope 3 Emissions – Business Travel tCO2e 6.98 10.53 5.36 2.12 8.99
Total Emissions tCO2e 16.71 18.52 14.20 11.04 29.58
Average number of staff (FTE) FTE 42 41 36 30 21
Total Emissions per head tCO2e/FTE 0.40 0.45 0.39 0.37 1.41

Energy Consumption

The NFC operates from serviced accommodation leased from a private landlord, which is shared with two other units. Electricity is metered per unit and recharged by the landlord.

Energy consumption has remained lower compared to pre-Covid levels due to the blended working framework although a 21% increase has been reported in 2024-25. This can be attributed to an increase in office occupancy on Friday which had previously been an office closure day in the initial years post-COVID.

a more energy efficient heating system in January 2023 continues to result in lower consumption during the winter months compared to previous years.

Since the acquisition of the National Forest Charitable Trust in 2022-23, the NFC owns several buildings in the Heart of the National Forest, only one of which the NFC has operational control of. This building was refurbished as a volunteer hub in 2024-25 with a small amount of energy consumption from its irregular use included in the figures below. This will be changed to a renewable tariff in 2025-26.

No additional energy saving measures were implemented in 2024-25, however the upgrade to

17

National Forest Company – Annual Report and Accounts 2024-25

----- Start of picture text -----
Building Energy Consumption
Unit 2024-25 2023-24 2022-23 2021-22 2017-18
(Scope 2)
----- End of picture text -----

Scope 2 Emissions – Energy
consumption tCO2e 8.36 6.91 8.17 8.92 20.59
Scope 2 Emissions – Energy
consumption per head (FTE) tCO2e/FTE 0.20 0.17 0.23 0.30 0.98
Energy consumption kWh 40,374 33,369 42,234 42,011 58,578
Energy consumption per head (FTE) kWh/FTE 982 811 1,173 1,400 2,789
Total energy expenditure £ 25,334 14,134 14,805 8,033 9,868
Expenditure per head (FTE) £/FTE 616 343 411 268 470
Average number of staff (FTE) FTE 42 41 36 30 21

Fleet Vehicles

The NFC has a fleet of one leased diesel fleet vehicle, leased since 2022-23, which is used for forestry works across the NFC’s estate. This vehicle meets the ULEZ emissions standards and will be replaced with a 100% battery electric powered vehicle when a suitable model is available on the market.

----- Start of picture text -----
Fleet Vehicle (Scope 1) Unit 2024-25 2023-24 2022-23
----- End of picture text -----

Scope 1 Emissions – Fleet Vehicle tCO2e 1.37 1.08 0.67
Fleet vehicle mileage Miles 4,300 3,314 2,036
Fleet vehicle expenditure £ 830 925 604

Business Travel

The NFC’s travel policy promotes low carbon forms of transport, car sharing and reduction of unnecessary travel to reduce environmental impact. Business travel has increased slightly, although staff continue to work within the guidelines of the blended framework, with meetings continuing to be held virtually alongside office working. Business travel mainly relates to inspections of management and planting works across the Forest and meetings with external stakeholders and partners that cannot be held virtually.

18

National Forest Company – Annual Report and Accounts 2024-25

----- Start of picture text -----
Business Travel (Scope 3) Unit 2024-25 2023-24 2022-23 2021-22 2017-18
----- End of picture text -----

Total Scope 3 Emissions – Business
Travel tCO2e 6.98 10.53 5.36 2.12 8.99
Scope 3 Emissions – Business Travel
– Car tCO2e 4.96 4.88 4.21 2.09 8.99
Business Travel – Car – Staff
(including Chief Executive) Miles 17,123 16,224 13,602 7,462 22,951
Business Travel – Car – Staff mileage
per head miles/FTE 416 394 378 249 1,093
Average number of staff (FTE) FTE 42 41 36 30 21
Business Travel – Car – Trustee Miles 1,347 1,982 1,731 108 7,674
Business Travel – Car – All mileage Miles 18,470 18,206 15,333 7,570 30,625
Scope 3 Emissions – Business Travel
– Train tCO2e 0.63 0.63 0.95 0.03 N/A
Business Travel – Train Km 17,751 17,627 26,778 816 N/A
Scope 3 Emissions – Business Travel
– Air tCO2e 1.39 5.02 0.20 0.00 0.00
Business Travel – Air Km 7,600 26,6181 806 0 0
Total Business travel costs £ 16,205 16,254 20,601 5,491 22,381

Travel data includes official business travel by all staff and Trustees. Mileage relates to travel in staff/Trustees’ own vehicles. Total business travel costs includes car mileage, rail and air.

Train travel data includes available mileage booked through the NFC’s travel operator from July 2018 onwards. Data is unavailable prior to this data.

1 Data has been reinstated due to double counting in the previous year.

Waste minimisation and management

The majority of waste generated at the NFC’s office is paper and cardboard, all of which is recycled. Paper usage has decreased significantly in 2024-25 due to a move to paperless invoice processing in March 2024. Data reported between 2010-11 to 2014-15 averaged at 122 reams. Data from this point onwards is unavailable and the last reported value has been used as a baseline.

Waste Unit 2024-25 2023-24 2014-15
Paper purchased A4 ream equivalent 45 90 125

All other recyclable materials are recycled via the local authority recycling services; no data is currently available for this, nor for the minimal amount of waste that is not recyclable. IT equipment is recycled for refurbishment and re-use. Staff take home any food waste for composting.

In helping to plant more than 9.8 million trees across the National Forest, a critical aspect has been the need to help protect the trees from browsing mammals. Our current primary method is to use fencing, although different higher density tree planting is also an option. Fossil fuel based plastic

guards have been eradicated from use on our estate, however, where necessary in a small number of cases non-plastic tree guards are used on the estate. The NFC’s grant schemes also promote the non-plastic tree guard option to landowners to reduce plastic waste and contamination. Ongoing work is being undertaken with contractors and volunteers, through the NFC’s grants, to remove plastic tree guards on previously planted sites. These are collected and recycled into outdoor furniture where possible.

19

National Forest Company – Annual Report and Accounts 2024-25

Water use (finite resource consumption)

Charges for water are included within the landlord’s service charge for the building the NFC leases part of. The landlord does not provide usage data and data is not metered per business occupant, so accurate data is not available.

The volunteer hub is used infrequently, and water supply has been minimal at 1m2 across the year. This will be monitored and reported as usage of the hub increases.

Sustainable Procurement

The NFC is aware of the role of public sector and charity procurement in meeting organisational needs for goods, services, works and utilities, while achieving value for money on a whole-life basis, minimising damage to the environment and generating benefits for society and the economy.

Wherever possible, the NFC ensures that environmental and social considerations are built into procurement processes, including environmental footprint, ethical considerations and social impact. Information on environmental policies of potential suppliers is requested and these are reviewed, where appropriate, as part of the tendering procedure when seeking to award contracts or place orders for goods and services. The NFC continues to develop its procedures to ensure that sustainability is fully integrated throughout the procurement process.

Nature Recovery and Biodiversity action planning

The NFC’s contribution to nature recovery and biodiversity action planning is based on our own estate and contribution to habitat enhancements with partners across the National Forest. During the year, the estate increased from 692 to 729 ha of woodlands and other habitats, and across the Forest 725 ha of habitats were enhanced through management improvements. The total area of the Forest that is now supporting biodiversity is 29%.

Climate Change Adaptation

The NFC’s work to support climate change adaptation includes changes in tree species selection to improve resilience of the Forest, connecting habitats to facilitate movement of wildlife as the climate changes, and a range of forest creation schemes to support economic and social adaptation. This includes providing green infrastructure for urban cooling, agroforestry and parkland trees to support changes in farming and wider habitat enhancements to slow the flow of water in river catchments.

Reducing environmental impacts from ICT and Digital

Our approach to reducing environmental impacts from ICT and Digital includes a focus on paperless practices, minimising data storage and expanding our use of cloud services and reducing the need for legacy physical infrastructure.

Sustainable Construction

Feasibility work has been completed this year to explore current carbon emissions from our estate buildings and opportunities to reduce these. This included examining replacement heating systems for the Conkers Discovery building and the potential for PV panels to meet some of the on-site electricity demand. Next steps will be to integrate the feasibility report’s recommendations into the refurbishment of Conkers over the coming years. Further feasibility has explored the potential of extracting heat from mine water beneath the Conkers site although that has now been paused pending further work by the Mining Remediation Authority.

The refurbishment of the NFC’s Gatehouse building was carried out and delivered to time and cost with a local contractor, improving energy efficiency whilst re-purposing the building as a volunteer hub. This work has improved procedures in sustainable procurement for the NFC’s buildings, including fossil fuel use, the impacts on nature and environment, circularity, waste and lifetime costs/replacement of materials.

Additional sustainability activities

In 2024, the NFC appointed Small World Consulting to undertake a carbon footprint assessment of the National Forest landscape. This produced a baseline of carbon emissions in the Forest as of 2022, when the latest data were available. The report also produced land use targets to scale up carbon sequestration and a science-based fair-share decarbonisation trajectory across key priority areas. The analysis shows that since the early stages of Forest creation in the 1990s, trees and woodlands across the area, both newly planted and preexisting, have captured 730,000 tonnes of CO2e. In 2022 alone, over 50,000 tonnes of CO2e were sequestered. The NFC will continue to track changes in the carbon footprint moving forward, helping to understand the effect of the National Forest on decarbonisation of the local area. Findings from this assessment will help to inform the development of future NFC strategies, including the upcoming forest creation strategy.

20

National Forest Company – Annual Report and Accounts 2024-25

As part of the NFC’s mitigation towards net zero or being carbon positive, trees were planted at the NFC’s Minorca West site, specifically with the purpose of being monitored and evaluated for their carbon sequestration benefits and balanced against the NFC’s carbon footprint. Assessment is also being made of new land acquisitions to assess their suitability for carbon accreditation of tree planting through the Woodland Carbon Code, to formalise the NFC’s net carbon position.

The NFC’s trial with biochar continues in collaboration with the University of Nottingham. The research is in the early stages of evaluation, but initial results demonstrate a positive impact on the soil. This work continues to help shape the NFC’s future considerations for the use of biochar on the estate and in working with Heartwood Community Woodland Group (who were assisted in the purchase of a small kiln to make biochar). The NFC is also exploring the benefits of engaging volunteers in making small batches of biochar.

Biomass continues to be a common output for managed woodlands across the National Forest. The current stage and size of timber being produced in many woodlands results in thinnings being used as fuelwood and this trend is likely to continue for a large proportion of woodlands for the next decade or more. One large biomass business in the Forest continues to act as the major contractor and supplier of local biomass. This business has been supported in previous years through the NFC’s Woodland Economy Grants.

The strategic report was approved by the Trustees on 14 October 2025 and signed on their behalf by:

Dr Tony Ballance Chair of the Board of Trustees 14 October 2025

John Everitt OBE FRSA Chief Executive/Accounting Officer/Trustee 14 October 2025

21

National Forest Company – Annual Report and Accounts 2024-25

Statement of Trustees’ and Accounting Officer’s Responsibilities

The Board of Trustees of the National Forest Company is required to prepare a statement of accounts for each financial year in accordance with applicable law and regulations.

Section 394 of the Companies Act 2006 requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. The Secretary of State for Environment, Food and Rural Affairs has directed the National Forest Company to prepare for each financial year a statement of accounts in the form and on the basis set out in the Accounts Direction.

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Company and of its incoming resources, application of resources and cash flows for the financial year.

In preparing the financial statements, the Trustees are required to comply with the requirements of FRS 102 and the FRS 102 Statement of Recommended Practice (SoRP) Accounting by Charities issued by the Charity Commission with regard to any additional requirements arising from the Government Financial Reporting Manual and in particular to:

the Accounting Officer is answerable, for keeping proper records and for safeguarding the National Forest Company’s assets, are set out in Managing Public Money published by HM Treasury.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware:

Dr Tony Ballance Chair of the Board of Trustees 14 October 2025

John Everitt OBE FRSA Chief Executive/Accounting Officer/Trustee 14 October 2025

The Principal Accounting Officer for the Department for Environment, Food and Rural Affairs has designated the Chief Executive of the National Forest Company as the Company’s Accounting Officer. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which

22

National Forest Company – Annual Report and Accounts 2024-25

Governance Statement

Overview

The National Forest Company (NFC) is a charitable company (limited by guarantee). As a charity, the NFC exists to carry out its charitable purposes.

As a Non-Profit Institution within the Public Sector specifically Central Government, the NFC operates at ‘arm’s length’ from its sponsor department, the Department for Environment, Food and Rural Affairs (Defra).

The NFC Board is responsible for leading and directing the Charity and for determining strategy and guiding operational activity. The terms of a Framework Document agreed between Defra and the NFC sets out the governance arrangements to be adhered to, clarifying the roles and responsibilities of Defra, including those of the Secretary of State as a Member of the NFC, and of the NFC itself. Its provisions enable Defra to monitor performance and delivery in relation to grants given to the NFC and describe the arrangements that exist to safeguard propriety and regularity.

The NFC seeks to comply with good practice as issued by the Charity Commission. It also complies with the Cabinet Office ‘Corporate Governance in Central Government Departments: Code of Good Practice’ as it applies to the NFC, and operations are underpinned by the seven core principles (‘the Nolan Principles’) of good governance for public services. This Governance Statement provides an evaluation of the effectiveness of the NFC’s governance, risk and internal control arrangements.

Governance Arrangements

Members and Board of Trustees

In accordance with the Articles of Association, the NFC Chair and Secretary of State for Environment, Food and Rural Affairs and at least two further independent individuals are Members of the Charity. The Secretary of State is in a minority when voting on NFC business and therefore cannot exercise a controlling influence.

The Board of Trustees was established in March 2016. The Board determines the strategy of the organisation and ensures that appropriate policies and procedures are in place to fulfil its obligations as to the use of public funds.

The Chair and Trustees, excluding the Chief Executive, are not remunerated but are entitled to be reimbursed out of pocket expenses necessarily incurred in fulfilling their duties. The NFC Chief

Executive is a Trustee and their remuneration is detailed in the Remuneration and Staff Report. All Trustees provide declarations of interest and these are recorded in a Register of Interests which is available on the National Forest Company website https://www.nationalforest.org/about/who-we-are/ our-governance/publication-scheme.

The Board meets four times a year, and additionally as necessary, to consider business performance, organisational structure and strategy. The Board is the main decision making body of the NFC with a quorum based on three Trustees. Decisions are taken by the Board on key issues relating to governance, finance, policy and strategy. The Scheme of Delegations sets out decisions and responsibilities delegated to Committees, Working Groups and staff.

The membership of the Board of Trustees in 2024-25, excluding the Chief Executive, was as follows:

Tony Ballance (Chair) Penny Coates Ruth Gadsen Alison Field Paddy Harrop Anne Jenkins Mike Kapur Matt Robinson

Paddy Harrop’s term of office ended on 31 December 2024, having served two terms of three years.

Trustee recruitment is conducted through fair and open competition following Charity Commission guidance and with a focus on supporting diversity and inclusion. New Trustees undergo an induction programme to reinforce the roles and responsibilities of a Trustee, governance arrangements and the vision and strategy for the National Forest.

Standard agenda items for Board meetings include the Chief Executive’s quarterly report and strategic summary reporting on progress against operational targets, giving headline commentary on activity, and an assessment of key risks. Declarations of interest, finance, income generation performance, oversight of delivery of Forest Creation, and a report of the activities of the Subsidiary Company are also standing items. Minutes from sub-committees of the Board, Working Groups and the Subsidiary

23

National Forest Company – Annual Report and Accounts 2024-25

Company are also included within papers sent to Trustees.

Membership of the Board, its Committees, Working Groups and Subsidiary Board is provided on page 27.

During 2024-25 the Board considered a range of matters including:

The Board undertakes annual reviews of its governance and Board effectiveness. The format of the review is based on the Charity Governance Code which sets the principles and recommended practice for good governance and drawing upon the Charity Commission’s guidance using the recognised hallmarks of an effective charity, ie organisational purpose; leadership; integrity; decision making, risk and control; board effectiveness; diversity and openness and accountability.

The review again demonstrated that the NFC’s governance processes and practice provide a high level of assurance against the Charity Commission’s key principles and therefore provide a strong basis for assessing Board performance as ‘effective’. There continues to be consensus amongst Trustees, and between staff and Trustees, on areas of strength, compliance and weakness. The review also assessed the quality of data, reports and papers to the Board which were considered to be of a good standard, enabling the Board to make effective decisions.

Whilst no areas requiring significant improvement were identified, work continued to build on the NFC’s commitment to equality, diversity and inclusion (EDI), through a dedicated EDI steering group, action plan, and annual Board EDI strategy session.

Subsidiary Company

The National Forest Enterprises Ltd (NFE) oversees the commercial activities and assets of the Conkers Centre and estate, including the operating contract with Planning Solutions Ltd.

The directors of the subsidiary company are appointed by the NFC Board of Trustees and the company is chaired by an NFC Trustee, with the NFC Chief Executive also sitting on the board as a director to ensure that activities and any investment reflects the interests of the NFC. Operating non-primary purpose trading activity through the subsidiary provides additional safeguards to the NFC and generates unrestricted income through the gifting of profits at the year end.

A proportion of annual profits from the operation of Conkers are paid by Planning Solutions Ltd to National Forest Enterprises Ltd. The subsidiary company does not employ staff but the costs of NFC staff working on behalf of the company are recharged to the subsidiary and paid from the annual profits. Gift aid on visitor admissions to Conkers is received directly by the Charity and Trustees agree to its use to support priorities including investment in Conkers and/or time for

24

National Forest Company – Annual Report and Accounts 2024-25

staff working on behalf of the company. Additional capital investment in Conkers as an asset of the Charity is also agreed by the NFC Board as advised by the subsidiary company.

In 2024-25, the National Forest Enterprises Board met four times and its work included:

management and economy, NFC owned sites, access creation and biodiversity;

All Committees and Working Groups have written terms of reference.

Audit & Risk Committee (ARC)

Future business priorities for 2025-26 include masterplanning for the redevelopment of Conkers, together with fundraising and business planning for capital investment.

Whilst consolidated figures are included in these Group accounts, further details of the subsidiary company can be found in its individual annual report.

Board Committees and Working Groups

The Board of Trustees is supported by various Committees and Working Groups.

Each Committee and Working Group has key functions to discharge, and each is chaired by a Trustee, together with additional Trustee or nonexecutive representation. Appropriate staff are also involved.

The Committees and Working Groups are:

The role of ARC is to provide assurance and recommendations to the Board on the effectiveness of its governance, financial management, internal control and risk management systems. ARC also monitors the work of external audit and the effectiveness of the internal audit service. The Committee also presents an annual report on its activities to the Board. ARC comprises of at least 3 Trustees, with the Chief Executive attending in their capacity as Accounting Officer.

ARC met 5 times during 2024-25. Its work included consideration of the financial statements and the Audit Completion Report issued by the external auditor prior to the accounts being certified by the Comptroller & Auditor General (C&AG) with an unqualified audit opinion; considering reports issued by internal audit; scrutinising finance reports, including income generation, prior to being presented to the Board; reviewing accounting policies; safety, health and wellbeing; fulfilling its responsibilities in respect of risk management (see below), and oversight of investments and performance of the appointed fund manager.

During the year, the Committee sought assurances from management that recommendations from the prior year’s audit were being implemented. These included making improvements to the land valuation report and income recognition.

Other business conducted by ARC during the year included:

25

National Forest Company – Annual Report and Accounts 2024-25

ARC also conducted its annual review of its effectiveness, utilising the National Audit Office’s checklist, based on HM Treasury’s Audit Committee Handbook. The conclusion was that the Committee continues to operate effectively and there were no areas of concern.

Remuneration Committee

The Remuneration Committee supports the Board in discharging its responsibilities for remuneration issues and generally meets once a year. Membership of the Committee comprises 3 Trustees including the Chairs of both the Board and ARC. The Committee provides the Board with recommendations on the Chief Executive’s remuneration and benefits, and advises the Chief Executive on the pay and benefits of other senior staff. During the year the Committee considered and approved the framework for the NFC’s revised pay bands for staff following discussion with Defra.

Land & Forestry Working Group

The Land & Forestry Working Group meets at least 4 times a year and is chaired by an NFC Trustee. Membership includes the Charity’s retained land agent. Its primary function is to support and provide strategic oversight of the land and forestry aspects of the Charity’s work.

In 2024-25 the Group’s work included:

Development Working Group

The Development Working Group meets 4 times a year and is chaired by a Trustee with external advisors. The primary function of the Group is to support the Development functions and provide strategic oversight relating to income generation, marketing, brand and communications and project development. In 2024-25 the Group’s work included:

Tourism, Recreation & Communities Working Group The Tourism, Recreation & Communities Working Group meets 3 times per year and is chaired by an NFC Trustee with an external advisor. The primary role of the Group is to provide a strategic overview and support in relation to tourism, recreation, arts and creativity, and community development activity. In 2024-25, the Group’s work included:

26

National Forest Company – Annual Report and Accounts 2024-25

Review of Effectiveness of Committees, Working Groups and the Subsidiary Board

Attendance record of Trustees at meetings of the Board and its Committees, Working Groups and the Subsidiary Board

----- Start of picture text -----
Board & Main Audit & Remuneration Land & Development Tourism, National
Committee Board Risk Committee Forestry Working Recreation & Forest
[Number of [5] Committee [2] Working Group Communities Enterprises
meetings in [4] Group [2] Working Ltd Board
2024-25] [5] Group [4]
[3]
----- End of picture text -----

Trustee
Tony
Ballance		 5/5* 2/2
Penny
Coates		 4/5 4/4 3/4*
Ruth Gadsen 5/5 2/2*
John Everitt** 5/5 4/4
Alison Field 5/5 5/5
Paddy
Harrop***		 4/4 3/3 4/4*
Anne Jenkins 4/5 3/3*
Mike Kapur 3/5 4/4* 1/2
Matt
Robinson		 5/5 3/4 2/2*

27

National Forest Company – Annual Report and Accounts 2024-25

Strategy and planning

The Board is responsible for determining the strategic direction of the organisation setting out the key objectives and indicators against which progress will be measured. It approved the Corporate Plan 2023-2026 which gives direction to strategic priorities for the Forest and the NFC and a clear framework for measuring success. The Plan provides the basis for annual work programmes and budgets, and is divided into 5 main operational themes centred around Create, Manage, Inspire, Engage and Grow. Development themes of building the brand and securing resources for the Forest, and Support Services themes relating to effective governance and management are also included.

The NFC’s activity during 2024-25 was guided by the objectives and targets as detailed in the Plan and progress reports were given to the Board at each quarterly meeting. During the year further work was also carried out to summarise the National Forest vision and strategy for the new website, as well as producing the Thriving Together report to demonstrate progress and future plans for the NFC.

Whilst the NFC operates at arm’s length from Defra, the Charity in its business plan needs to demonstrate how it uses grant funding from Defra to contribute to the Department’s own business plan priorities and wider strategic objectives.

Defra’s 25 Year Environment Plan produced in 2018 and Environmental Improvement Plan recognise the valuable role that forests and woodlands play in protecting and enhancing natural capital, including commitments to the public forest estate, national targets and community forestry. The Nature for Climate Fund and England Trees Action Plan developed in 2020-21 provide dedicated resources and greater policy direction to this agenda, and the NFC is represented on strategic and operational groups to contribute to the delivery of targets, now including the Nature for Climate Fund Programme Board.

These strategic initiatives include the NFC’s contribution to national targets and manifesto commitments, specifically in relation to forest creation, tree planting and woodland management.

In 2024-25, the NFC continued plans in partnership with the Woodland Trust and wider partners to create the Midlands Forest Network. This initiative supports delivery of tree planting targets whilst using the experience from the National Forest to accelerate woodland creation outside of the National Forest boundary. During the year, the government set out a new manifesto commitment for 3 new national forests drawing on the NFC’s

expertise and delivery. The NFC worked with Defra to take forward this work running a competitive process to identify potential project areas, culminating in the launch of the Western Forest in March 2025.

Internal controls and the work of internal audit

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Charity’s policies and objectives, to evaluate the likelihood of those risks being realized, the impact should they be realised, and to manage them efficiently, effectively and economically.

The programme of internal audit work undertaken by Forvis Mazars LLP during 2024-25, as approved by the Audit & Risk Committee, comprised both compliance and advisory activity including the following:

The one compliance based audit covered GDPR compliance, data protection and document retention arrangements. The audit specifically focused on general practices and processes compared with best practice, and an overview of the Customer Relationship Management (CRM) integration tool with the newly designed website. There were three moderate and one low recommendations with an overall assurance opinion of ‘moderate’.

The two advisory based audits provided an advisory assessment and overview of the operational controls and internal usage of the new GIS data mapping system and an assessment of the systems and controls in place over the full processing of ‘restricted funds’ projects, which resulted in eight advisory recommendations. As a result of only one compliance based audit taking place, the internal auditors were unable to draw an informed opinion of the NFC’s framework of governance, risk management and control.

There were no identified instances of fraud during the year.

28

National Forest Company – Annual Report and Accounts 2024-25

Information management

The NFC takes the management of the information it holds very seriously and is not aware of any personal data losses in 2024-25 that would require notification to the Information Commissioner’s Office.

All staff sign copies of the Company’s policies relating to privacy and data handling and are mandated to undertake, and periodically repeat, the Civil Service Learning ‘Security and Data Protection’ course. All staff are engaged in work to further develop and embed protocols and good practice on the Customer Relationship Management database and staff are regularly reminded of the importance of following data handling procedures with regular refresher sessions and further training where necessary.

Safety, Health and Wellbeing

The NFC aims to ensure that all staff and volunteers remain safe and well and that the NFC’s sites are safe, enjoyable places to visit. The NFC is committed to the Forest Industry Safety Accord and regularly reviews Safety, Health and Wellbeing policy and practices. Regular inspections are carried out at the NFC sites throughout the year.

Whistleblowing

The NFC has a Whistleblowing Policy and procedure with which all staff are familiar. There were no instances of whistleblowing in 2024-25, as was the case in 2023-24. The Policy includes reference to the NFC’s Senior Independent Director as a contact and the requirement to report any serious cases to the Charity Commission. Staff are reminded of the Whistleblowing Policy and procedures at team meetings and through periodic updates, to ensure an open and accountable culture.

Risk Management

The NFC Board is responsible for determining the NFC’s approach to risk, agreeing the Risk Policy, setting the culture and appetite for risk management and for monitoring the management of the highest scored risks as detailed in the Risk Register. Board Committees, Working Groups and the Subsidiary Board are responsible for overseeing the management of risks in their area of business and ensuring that the most effective plans are drawn up and implemented to mitigate them. This responsibility has been incorporated into their terms of reference.

The ARC has responsibility for reviewing the risk management process and the draft Risk Register before being presented to the Board.

The Committee is responsible for overseeing and reviewing the effectiveness of the systems of internal control and corporate governance within the Company with its assessment being informed by senior management and the work of the appointed auditors. Risk management features on the agenda for all ARC meetings.

The role of staff and the Senior Leadership Team (SLT) includes: identifying and evaluating significant risks faced by the NFC to be considered initially by ARC and subsequently the Board; implementing policies and associated action plans, and providing information to the Committees, Subsidiary Board and Working Groups on the status of risks and controls.

SLT is also responsible for producing the annual draft risk register. The register divides between the more strategic risks focusing on the key priorities and outcomes for the 3-year Corporate Plan and is formally reviewed by ARC and the Board every quarter. During the year, the risk policy and risk appetite statement were updated. Responsibility for the more operational risks falls to senior management and Working Groups and these are reported on in the Chief Executive’s quarterly report to the Board which focuses on risks relating to the achievement of in-year targets.

In 2024-25 the key strategic risks related to the NFC’s ability to scale up forest creation targets to meet Nature for Climate Fund commitments, and to take advantage of carbon/tree planting opportunities. Risks in relation to income generation and marketing also continued to feature, together with the long term development of Conkers and the staffing and governance of the organisation. These risks will continue to be managed during 2025-26 alongside the ongoing risks associated with the urgency of climate change, work on new national forests and the Spending Review settlement. The NFC’s investments with Cazenove’s Charity Responsible Multi-Asset Fund, in line with the NFC’s investment policy, has no exposure to Ukraine or Russia and is being managed to limit risk from uncertain global trade policy. The investment policy includes the NFC’s ethical policy with guidelines to inform investment decisions based on specific exclusions in line with the NFC’s charitable purposes as well as social and environmental considerations including the UN global compact principles.

The NFC received no ministerial directions during the year.

29

National Forest Company – Annual Report and Accounts 2024-25

Performance management

As Chief Executive, I have overall responsibility for the achievement of corporate objectives as detailed in the Corporate Plan. However, responsibility for delivery of many of these is delegated to other staff in the organisation.

Responsibilities and objectives are detailed in annual job plans for each employee and performance against these is assessed through the staff review system. This includes a mid-year and end of year assessment of how the individual has performed which determines any entitlement to a performance related bonus. The job plans also detail training and development needs identified to equip the individual to perform effectively.

The National Forest is being created for public benefit and the engagement and views of members of the public are welcomed. The Company has established procedures and arrangements for dealing with complaints and requests made under the Freedom of Information Act. During the year ended 31 March 2025, two complaints were received (compared with three in 2023-24). Both were responded to within the specified timescale and satisfactorily resolved.

Conclusion

As the designated Accounting Officer for the NFC, I have responsibility for the management and control of the resources used within the organisation and for discharging the responsibilities assigned to me in Managing Public Money.

I confirm that no significant issues in relation to governance, risk, performance or controls have arisen which need to be reported on in this Governance Statement.

John Everitt OBE FRSA Chief Executive/Accounting Officer 14 October 2025

30

National Forest Company – Annual Report and Accounts 2024-25

Remuneration and Staff Report

Remuneration Report

The NFC has prepared this Remuneration Report in accordance with the Government Financial Reporting Manual, which requires disclosure of information about directors’ remuneration, where ‘directors’ is interpreted to mean those who influence the decisions of the NFC as a whole and this is considered as meaning the Trustees and the Chief Executive.

Remuneration Policy

The Audit & Risk Committee has responsibility for advising the Board on strategic HR matters and the overall approach to NFC pay and reward, whilst the Remuneration Committee specifically advises the Board on the remuneration and benefits attached to the Chief Executive and advises the Chief Executive on pay and grading considerations relating to other senior roles.

The Remuneration Committee meets at least annually and comprises 3 Trustees, including the Chairs of the Board and Audit & Risk Committee.

Trustees’ remuneration

Trustees, other than the Chief Executive, who is remunerated in his capacity as Chief Executive, do not receive any remuneration for their services. In accordance with the NFC’s Articles of Association, all Trustees are entitled to the reimbursement

of reasonable travel and subsistence expenses necessarily incurred in fulfilling their duties. Excluding the Chief Executive, Trustees were reimbursed out-of-pocket expenses totalling £1,470 (2023-24: £1,760).

Remuneration of the Chief Executive (subject to audit):

The Chief Executive is the only executive Trustee of the NFC and the only Trustee who is a member of the Principal Civil Service Pension Scheme (PCSPS). John Everitt has been the NFC’s Chief Executive since 5 January 2015. The Principal Accounting Officer for Defra has conferred Accounting Officer status on him. The salary for the post aligns most closely to the range for Senior Civil Service pay band 1.

The salary payable to the Chief Executive is reviewed on 1 April each year. In addition to salary, the Chief Executive is entitled to an annual nonconsolidated, non-pensionable bonus of up to 10% of annual salary. The bonus payable is based on the performance level attained and is made as part of the appraisal process operating within the Company. The bonus relates to performance in the year it is reported. The level of bonus payable to the Chief Executive was determined by the Chair in consultation with members of the Remuneration Committee.

Emoluments of the Chief Executive (this information is subject to audit) :

2024-25
2023-24
Salary
£’000
Bonus
payments
£’000
Pension
benefits
£’000
Total
£’000
Salary
£’000
Bonus
payments
£’000
Pension
benefits
£’000
Total
£’000
John Everitt 90-95
5-10
36
135-140
85-90
5-10
35
130-135

Pension benefits are disclosed to the nearest £1,000

Salary

‘Salary’ includes gross salary; overtime; recruitment and retention allowances but excludes any bonus payments.

Benefits in kind

No benefits in kind (benefits provided by the NFC and treated by HM Revenue and Customs as a taxable emolument) were received in either year.

Pension benefits

The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.

31

National Forest Company – Annual Report and Accounts 2024-25

Benefits to which the Chief Executive qualifies under the PCSPS ( subject to audit )

Accrued pension at Real increase in pension CETV at CETV at Real
pension age as at and related lump sum 31 March 31 March increase
31 March 2025 at pension age 2025 2024 in CETV
£’000 £’000 £’000 £’000 £’000
John Everitt 20 – 25 0 – 2.5 337 279 27

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. Before 1 April 2015, the only scheme was the Principal Civil Service Pension Scheme (PCSPS), which is divided into a few different sections – classic, premium, and classic plus provide benefits on a final salary basis, whilst nuvos provides benefits on a career average basis. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis. All newly appointed civil servants, and the majority of those already in service, joined the new scheme.

The PCSPS and alpha are unfunded statutory schemes. Employees and employers make contributions (employee contributions range between 4.6% and 8.05%, depending on salary). The balance of the cost of benefits in payment is met by monies voted by Parliament each year. Pensions in payment are increased annually in line with the Pensions Increase legislation. Instead of the defined benefit arrangements, employees may opt for a defined contribution pension with an employer contribution, the partnership pension account.

In alpha, pension builds up at a rate of 2.32% of pensionable earnings each year, and the total amount accrued is adjusted annually in line with a rate set by HM Treasury. Members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. All members who switched to alpha from the PCSPS had their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha.

The accrued pensions shown in this report are the pension the member is entitled to receive when they reach normal pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over normal pension age. Normal pension age is 60 for members of classic, premium, and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. The pension figures in this

report show pension earned in PCSPS or alpha – as appropriate. Where a member has benefits in both the PCSPS and alpha, the figures show the combined value of their benefits in the two schemes but note that the constituent parts of that pension may be payable from different ages.

When the government introduced new public service pension schemes in 2015, there were transitional arrangements which treated existing scheme members differently based on their age. Older members of the PCSPS remained in that scheme, rather than moving to alpha. In 2018, the Court of Appeal found that the transitional arrangements in the public service pension schemes unlawfully discriminated against younger members (the McCloud judgment). As a result, steps are being taken to remedy those 2015 reforms, making the pension scheme provisions fair to all members. The Public Service Pensions Remedy is made up of two parts. The first part closed the PCSPS on 31 March 2022, with all active members becoming members of alpha from 1 April 2022. The second part removes the age discrimination for the remedy period, between 1 April 2015 and 31 March 2022, by moving the membership of eligible members during this period back into the PCSPS on 1 October 2023.

The accrued pension benefits, CETV and single total figure of remuneration reported for any individual affected by the Public Service Pensions Remedy have been calculated based on their inclusion in the PCSPS for the period between 1 April 2015 and 31 March 2022, following the McCloud judgment. The Public Service Pensions Remedy applies to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March 2012 and were members of a public service pension scheme between 1 April 2015 and 31 March 2022. The basis for the calculation reflects the legal position that impacted members have been rolled back into the PCSPS for the remedy period and that this will apply unless the member actively exercises their entitlement on retirement to decide instead to receive benefits calculated under the terms of the alpha scheme for the period from 1 April 2015 to 31 March 2022.

32

National Forest Company – Annual Report and Accounts 2024-25

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal and General Master trust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute but, where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement).

Read further details about the Civil Service pension arrangements at civilservicepensionscheme.org.uk

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The

pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost.

CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Staff Report

Staff employed ( totals subject to audit)

Average number of persons employed (full time equivalent)

2024-25
2023-24
Permanent
(FTE)
Other
(FTE)
Total
(FTE)
Permanent
(FTE)
Other
(FTE)
Total
(FTE)
Employees 34.9
6.7
41.6
31.1
8.3
39.4

Pay multiples and fair pay disclosure

(subject to audit)

at the year-end date on an annualised basis. This is shown in the table below, as at the reporting period end date.

The banded remuneration of the highest-paid employee (based on annualised, full-time equivalent) as at the reporting period end date was £100,000-£105,000 (2023-24: £95,000-£100,000). The highest-paid employee for both years was the Chief Executive.

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid employee (based on the midpoint of their band) and the lower quartile, median and upper quartile remuneration of the organisation’s workforce based on the full-time equivalent staff

33

National Forest Company – Annual Report and Accounts 2024-25

Lower (25th) Upper (75th)
quartile Median quartile
31 March 2025
Remuneration (Salary and benefits) £35,025 £41,780 £47,048
Highest paid as multiple 2.9 2.5 2.2
Salary only (excl. bonuses and benefits in kind) £34,157 £40,712 £45,453
Highest paid as multiple 2.7 2.3 2.0
31 March 2024
Remuneration (Salary and benefits) £32,495 £38,013 £45,096
Highest paid as multiple 3.0 2.6 2.2
Salary only (excl. bonuses and benefits in kind) £31,681 £36,104 £41,425
Highest paid as multiple 2.8 2.4 2.1

The movements in the multiple are marginal and mostly correspond to the method of the calculation as it is based on the midpoint of the band of the Chief Executive and the movement in the midpoint is not a true reflection of any percentage increase in the remuneration of the highest paid individual. However, for the past two years, the percentage increase of the remuneration of the median employee has increased at a higher rate than the percentage increase of the remuneration of the highest paid individual. This is mainly due to pay uplifts for a number of operational roles as a result of expanding responsibilities as the organisation continues to grow.

Sickness absence

Staff absence due to sickness equated to an average of 4.5 days per employee during the year (2023-24: 2 days). The increase being the result of long term absences for ill health.

Gender diversity

The gender split of Trustees and staff employed as at 31 March 2025 was as follows:

Female Male Total
Trustees 4 4 4
Staff, including the
Chief Executive 27 16 43

Total remuneration includes salary, non-

consolidated performance-related bonuses, and benefits in kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.

Remuneration for the workforce at the reporting period end date, including fees paid, agency staff, apprentices and including the highest-paid employee, ranged from banded remuneration of £20,000-£25,000 to £100,000-£105,000 (2023-24: from banded remuneration of £20,000-£25,000 to £95,000-£100,000). The salary and related costs arising from the employment of staff are detailed in note 14 of the financial statements.

The percentage change in the remuneration of the highest paid employee was 4.1% (2023-24: 6.7%). The percentage change excluding bonus and benefits in kind was 5% (2023-24: 5.5%).

The percentage change in the average remuneration of employees was 5.3% (2023-24: 13.3%). The percentage change excluding bonuses and benefits in kind: 7.7% (2023-24: 10.1%).

Equal Opportunities

The Company is an equal opportunities employer. It is committed to a policy of non-discrimination on grounds of gender or marital status, sexual orientation, health (including pregnancy), disability, age, religion, colour, nationality or ethnic or national origin. Staff are required to observe this policy of non-discrimination in their dealings with members of the public and colleagues at work. All new staff are appointed on the basis of ability, qualification and suitability for the post. All staff are required to complete a diversity and inclusion course as part of a suite of mandatory training.

Staff engagement

Various channels are used to regularly

communicate with staff, including weekly updates from the Chief Executive, fortnightly team meetings as well as individual team meetings. Key documents such as the Corporate Plan, papers and minutes of meetings of the Board, Audit & Risk Committee and Working Groups are made available to all staff. All staff team days are held regularly, an opportunity where everyone can be involved in generating new ideas, can contribute their thoughts and can engage

34

National Forest Company – Annual Report and Accounts 2024-25

with continuing developments and plans for all areas of our work.

The NFC continues to operate a Blended Working Framework to support flexible working. During the year an employee engagement survey was conducted, which gathered feedback on how the framework was functioning. The results of this were analysed by the Senior Leadership Team and discussed with individual teams. No significant issues were identified. Measures to promote staff wellbeing and benefits continue to be embedded with staff not only being offered Mental Health First Aid training but having access to 24-hour counselling, a Cycle to Work Scheme, eyecare vouchers, gym and fitness discounts, together with subscriptions to Headspace which provides support for good mental health.

Staff are incentivised to deliver high quality outcomes for the National Forest through an annual performance-related bonus scheme linked to their job descriptions, with an in-year bonus scheme also used to reward exceptional effort.

John Everitt OBE FRSA Chief Executive/Accounting Officer 14 October 2025

35

National Forest Company – Annual Report and Accounts 2024-25

The Certificate and Report of the Comptroller and Auditor General to the Members of The National Forest Company and the Houses of Parliament

Opinion on financial statements

I have audited the financial statements of the National Forest Company and its group for the year ended 31 March 2025 under the Government Resources and Accounts Act 2000. The financial statements comprise the National Forest Company and its group’s:

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In my opinion the financial statements:

Opinion on regularity

In my opinion, in all material respects, the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial

transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (ISAs (UK)), applicable law and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom (2022) . My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my report.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019 . I am independent of the National Forest Company and its group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the National Forest Company and its group’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the National Forest Company and its group’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.

My responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Strategic Report and Directors’ Annual Report but does not include the financial statements and my auditor’s report thereon. The

36

National Forest Company – Annual Report and Accounts 2024-25

Trustees and the Accounting Officer are responsible for the other information.

My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with HM Treasury’s Financial Reporting Manual.

In my opinion, based on the work undertaken in the course of the audit:

Matters on which I report by exception

In the light of the knowledge and understanding of the National Forest Company and its group and their environment obtained in the course of the audit, I have not identified material misstatements in the Strategic Report and Directors’ Annual Report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

been received from branches not visited by my staff; or

Responsibilities of the Trustees and Accounting Officer for the financial statements

As explained more fully in the Statement of Trustees and Accounting Officer’s Responsibilities, the Trustees and the Accounting Officer is responsible for:

37

National Forest Company – Annual Report and Accounts 2024-25

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the entity or the group or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to certify and report on the financial statements in accordance with applicable law and the Government Resources and Accounts Act 2000.

My 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 a certificate that includes my 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.

Extent to which the audit was considered capable of detecting non‑compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting noncompliance with laws and regulations, including fraud is detailed below.

Identifying and assessing potential risks related to non‑compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, I:

As a result of these procedures, I considered the opportunities and incentives that may exist within the National Forest Company and its group for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals, complex transactions, and bias in management estimates. In common with all audits under ISAs (UK), I am required to perform specific procedures to respond to the risk of management override.

I obtained an understanding of the National Forest Company and its group’s framework of authority and other legal and regulatory frameworks in which the National Forest Company and its group operates, I focused on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of the National Forest Company and its group. The key laws and regulations I considered in this context included Companies Act 2006, Charities Act 2011, the FRS 102 Statement of Recommended Practice (SORP) Accounting and Reporting by Charities, the Government Financial Reporting Manual, Managing Public Money, employment law and tax Legislation.

Audit response to identified risk

To respond to the identified risks resulting from the above procedures:

38

National Forest Company – Annual Report and Accounts 2024-25

I communicated relevant identified laws and regulations and potential risks of fraud to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my 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 my report.

Other auditor’s responsibilities

I am required to obtain sufficient appropriate audit evidence to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

I 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 I identify during my audit.

Gareth Davies 20 October 2025 Comptroller and Auditor General

National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP

39

National Forest Company – Annual Report and Accounts 2024-25

National Forest Company

Consolidated Statement of Financial Activities and Income and Expenditure (SOFA) for the year ended 31 March 2025

the year ended 31 March 2025 the year ended 31 March 2025
Note
Unrestricted
funds
£		 Restricted
funds
£		 Total
2024-25
£		 Total
2023-24
(restated)
£
Income
Grant in aid
3
Nature for Climate Fund
3
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total Income
Expenditure
Raising Funds
8
Charitable Activities
8
Total Expenditure
Net Income/(Expenditure) before
gains or losses
Net gains/(losses) on investments
17
Net Income/(Expenditure) before
transfers
Transfers
Net Income/(Expenditure) after
transfers
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed
assets
Gains/(losses) on foreign currency
Net movement in funds
Reconciliation of funds:
Total Funds brought forward at start
of the year
Total Funds carried forward at end
of the year		 2,538,846
–
1,248,010
692,086
80,658
109,068
4,668,668
908,545
4,511,332
5,419,877
(751,209)
(102,340)
(853,549)
1,686,152
832,603
(23,481)
–
809,122
15,538,522
16,347,644		 757,519
3,158,000
32,600
1,569,654
–
–
5,517,773
–
3,831,066
3,831,066
1,686,707
–
1,686,707
(1,686,152)
555
–
–
555
485,120
485,675		 3,296,365
3,158,000
1,280,610
2,261,740
80,658
109,068
10,186,441
908,545
8,342,398
9,250,943
935,498
(102,340)
833,158
–
833,158
(23,481)
–
809,677
16,023,642
16,833,319		 2,527,275
1,399,799
1,315,657
1,730,622
123,021
110,680
7,207,053
816,633
7,216,370
8,033,003
(825,950)
173,681
(652,269)
–
(652,269)
(4,565)
(257)
(657,091)
16,680,733
16,023,642

The Statement of Financial Activities (SOFA) also complies with the requirements for an income and expenditure account under the Companies Act 2006. All income and expenditure derive from continuing activities. The comparative information for 2023-24 is provided in note 30. Information on the prior year adjustment and restatement is provided in note 2 and note 33, and affects notes 6, 7 and 17.

40

National Forest Company – Annual Report and Accounts 2024-25

National Forest Company

Group (Consolidated) Balance Sheet as at 31 March 2025

Notes £ 2025
£		 £ 2024
(restated)
£
Fixed Assets:
Intangible assets
15
Tangible assets
16
Investment property
17
Investments
17
Total Fixed Assets
Current Assets:
Debtors
19
Cash at bank and in hand
Total Current Assets
Creditors: amount falling due within 1 year
20
Net Current Assets
Total Assets less Current Liabilities
Total Net Assets
The Funds of the Group:
Restricted funds
25
Unrestricted funds:
Designated funds
26
General funds
Revaluation Reserve		 599,593
1,573,091
2,172,684
(655,787)
14,968,799
682,767		 116,846
12,409,306
2,283,000
507,270
15,316,422
1,516,897
16,833,319
16,833,319
485,675
15,651,566
696,078
16,833,319		 902,778
1,672,733
2,575,511
(1,065,858)
4,101,350
10,717,613		 201,545
11,418,261
2,370,000
524,183
14,513,989
1,509,653
16,023,642
16,023,642
485,120
14,818,963
719,559
16,023,642

The National Forest Company is exempt under the provisions of Section 475 of the Companies Act 2006 from making the disclosure requirements under Part 16 under Section 482 (non-profit making companies subject to public sector audit) of that Act. Information on the prior year adjustment and restatement is provided in note 2 and note 33, and affects notes 16, 17, 26 and 32.

The Annual Report & Accounts were approved and authorised for issue by the Board of Trustees on 14 October 2025 and signed on behalf of the Board of Trustees:

Dr Tony Ballance Dated: 14 October 2025 John Everitt OBE FRSA Dated: 14 October 2025 Chair Chief Executive/Accounting Officer

The National Forest Company (Company number 02991970)

41

National Forest Company – Annual Report and Accounts 2024-25

National Forest Company

Parent Charity Balance Sheet as at 31 March 2025

Notes £ 2025
£		 £ 2024
(restated)
£
Fixed Assets:
Intangible assets
15
Tangible assets
16
Investment property
17
Investments
17
Total Fixed Assets
Current Assets:
Debtors
19
Cash at bank and in hand
Total Current Assets
Creditors: amount falling due within 1 year
20
Net Current Assets
Total Assets less Current Liabilities
Total Net Assets
The Funds of the Charity:
Restricted funds
25
Unrestricted funds:
Designated funds
26
General funds
Revaluation Reserve		 656,812
1,504,220
2,161,032
(644,135)
13,112,415
682,766		 116,846
11,383,421
1,195,000
507,270
13,202,537
1,516,897
14,719,434
14,719,434
485,675
13,795,181
438,578
14,719,434		 887,151
1,672,634
2,559,784
(1,050,147)
2,951,350
9,949,213		 201,545
10,392,376
1,220,000
524,183
12,338,104
1,509,638
13,847,742
13,847,742
485,120
12,900,563
462,059
13,847,742

The net movement of funds reported in the Statement of Financial Activities of the parent charity for the year was £871,692 (2023-24: £(727,360)). Information on the prior year adjustment and restatement is provided in note 2 and note 33, and affects notes 16, 17, 26 and 32.

The Annual Report & Accounts were approved and authorised for issue by the Board of Trustees on 14 October 2025 and signed on behalf of the Board of Trustees:

Dr Tony Ballance Dated: 14 October 2025 John Everitt OBE FRSA Dated: 14 October 2025 Chair Chief Executive/Accounting Officer

The National Forest Company (Company number 02991970)

42

National Forest Company – Annual Report and Accounts 2024-25

National Forest Company

Consolidated cash flow statement for the year ended 31 March 2025

£ 2024-25
£		 £ 2023-24
(restated)
£
Cash Flow from Operating Activities:
Net cash flow from operating activities
Cash Flows from Investing Activities:
Interest and rent from investments
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Purchase of investment property
Proceeds from the sale of investments
Net Cash Used in Investing Activities
Effect of exchange rate changes on cash
Change in Cash and Cash Equivalents in the year
Cash and cash equivalents at start of the year
Cash and Cash Equivalents at end of the year		 109,068
–
(1,799,082)
–
1,573		 1,588,799
(1,688,441)
–
(99,642)
1,672,733
1,573,091		 110,680
(62,268)
(1,310,079)
–
–		 355,143
(1,261,667)
(257)
(906,781)
2,579,514
1,672,733

Reconciliation of Net Income/(Expenditure) to Net Cash Flow from Operating Activities

2024-25
£		 2023-24
(restated)
£
Net income/(expenditure) for the year (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation
Loss on disposal of intangible assets
(Gains)/losses on investments
Impairment charges
Decrease/(increase) in debtors
(Decrease)/Increase in creditors
Interest and rent from investment		 833,158
35,635
59,726
24,973
102,340
748,921
303,185
(410,071)
(109,068)
1,588,799		 (652,269)
30,676
–
–
(173,681)
1,105,171
(30,400)
186,326
(110,680)
355,143

Analysis of Cash and Cash Equivalents

Analysis of Cash and Cash Equivalents
2024-25
£		 2023-24
£
Cash in hand and at bank
Total Cash and Cash Equivalents		 1,573,091
1,573,091		 1,672,733
1,672,733

Information on the prior year adjustment and restatement is provided in note 2 and note 33.

43

National Forest Company – Annual Report and Accounts 2024-25

Notes to the Accounts

1 Accounting Policies

1.1 Basis of Preparation and accounting convention

The National Forest Company (NFC) is a public benefit entity meeting the definition under FRS102 and is a company limited by guarantee and a charity registered in England and Wales.

The financial statements have been prepared, to the nearest £1, in accordance with the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’, issued 1 January 2019 and Financial Reporting Standard 102 (FRS102) and the Companies Act 2006.

In addition, these financial statements also meet the accounting and disclosure requirements of the 2024-25 Government Financial Reporting Manual (FReM) issued by HM Treasury, where not inconsistent with the requirements of the SoRP and the Accounts Direction issued by the Secretary of State for Environment, Food and Rural Affairs.

The financial statements have been prepared on a going concern and accruals basis and under the modified historical cost convention, modified to account for the revaluation of land and buildings. They do not present Cash Flow Statement of Statement of Financial Activities for The National Forest Company, since as the parent in the group whose consolidated accounts are presented here, exemptions are available under the ‘qualifying entity’ rules and by analogy to section 408 of the Companies Act, as described in FRS 102. In both cases the results of the parent are fully consolidated into the group position presented, with the consolidated financial statements consolidating the financial statements of The National Forest Company and its subsidiary National Forest Enterprises Limited for the year ended 31 March 2025 with the consolidation being carried out on a line-by-line basis. The wholly owned subsidiary, The Forest Experience Ltd was dissolved on 23 July 2024.

1.2 Going Concern

The Trustees confirm that it is appropriate for The National Forest Company to adopt the going concern principle in preparing its accounts.

The Trustees have reviewed budgets, forecasts, and anticipated Grant in Aid receipts and other funding from Defra, and together with considering the potential impacts on its financial position from both internal and external risks, have concluded

there is a reasonable expectation that the NFC has adequate resources to continue in operational existence for a period of at least 12 months from the date that the accounts are approved. The Trustees are not aware of any proposed legislative changes which could significantly impact the organisation. NFC therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

1.3 Key Sources of Estimation Uncertainty and Significant Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amount of income and expenditure. All estimates are based on the NFC’s knowledge of current facts and circumstances, assumptions concerning past events and forecasts of future events and actions. Actual results may differ from estimates made.

In the process of applying the NFC’s accounting policies, the following judgements, and estimations, have been made which have the most significant impact on the amounts recognised in the financial statements:

Judgements

Estimates

1.4 Income

Government grants

Grant-in-aid, including capital grant, is credited to income in the year for which it is received. It is regarded as unrestricted income since Defra, whilst requiring funds allocated be utilised in contributing to the delivery of departmental objectives, does not stipulate how any specific element of the grant should be spent.

44

National Forest Company – Annual Report and Accounts 2024-25

Nature for Climate Fund grant is treated as restricted income and the recognition of income is conditional on delivering certain levels or volumes of a service or supply of goods and contractual payments from Government or public authorities and other parties which fund the provision of particular goods or services.

These have been presented as separate lines in the Statement of Financial Activities (SoFA) due to the materiality of the income as per the SoRP paragraph 4.13.

Income from donations and legacies

Donations are accounted for on receipt, with any income tax recoverable in relation to donations received under Gift Aid recognised at the time of the donation.

General donations are received and utilised for any of the NFC’s charitable purposes. No direct benefit is provided to the donor in return, other than the knowledge that the NFC must use the gift to further its objectives. ‘Dedicate a Grove’ and ‘Dedicate a Tree’ income are gift donations which the NFC use to support the ongoing creation and management of the National Forest. This is classed as unrestricted income as it represents a contribution to the National Forest’s creation which is intrinsically linked to other purposes of the Charity such as ongoing maintenance of woodlands, habitat creation and education, and is used to further the NFC’s charitable purposes including woodland creation.

Donations in lieu of entry, for Conkers, are donations made by visitors, which are least 10% greater than the single admission price or equivalent to the price of an annual pass, for which the NFC grants them admission to the Conkers visitor attraction free of charge. The operator charges NFC a management fee for the visitors which are granted such an admission.

Legacy income is recognised upon notification (probate) for pecuniary legacies, and for residuary legacies when probate is granted and there is sufficient information on the value of the estate and probability of receipt.

Donation and legacy income with a condition or defined purpose attached is allocated to restricted income and any unspent amounts are shown on the balance sheet as a restricted fund balance.

Income from activities and generating funds

Income is accounted for net of VAT. Grant income entitlement is recognised when the NFC has met any performance or other deliverable criteria

for recognition and the monetary value can be measured reliably. Where the grant is received in advance of recognition it is deferred and included in creditors until entitlement occurs. If entitlement occurs before the income has been received it is accrued to debtors.

Grant income with a condition or defined purpose attached is allocated to restricted income and any unspent amounts are shown on the balance sheet as a restricted fund balance.

Income from Sponsorship

Sponsorship income is recognised as income when the conditions for its receipt have been met. Where there are conditions or specified deliverables then income received is not immediately recognised but is deferred as a liability until conditions imposed are met at which point the related income is recognised. Where there are no specified deliverables under the agreement then the income is recognised in line with the stage of completion of the agreement term.

1.5 Donated Services

NFC engages with unpaid volunteers to support our activities over the course of the year. Due to the absence of a reliable measurement basis, the contributions of volunteers are not included as income in the accounts. Other donated services or facilities are included in income at a valuation which is an estimate of the financial cost borne by a third party.

1.6 Expenditure

Expenditure is accounted for net of recoverable VAT on an accruals basis and is classified under the relevant activity within the Statement of Financial Activities.

All costs are allocated between the expenditure categories of the Statement of Financial Activities reflecting the objectives of the NFC as set out in the Directors’ Report and the use of resources. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and support costs; being those costs of an indirect nature necessary to support them. The salary and related costs of staff employed wholly on the various charitable activities and raising funds are allocated to those activities. Where staff are engaged on more than one of these activities, the allocation is based on the estimated proportion of time spent on the activities. Indirect costs have been allocated on the basis of full-time equivalent headcount assigned to each of the charitable activities and activities for raising funds.

45

National Forest Company – Annual Report and Accounts 2024-25

Governance costs include the costs of strategic planning, the Annual Report and Accounts, audit fees and Trustees’ expenses.

Grants payable are recognised when the criteria for a constructive obligation are met, payment is probable, values can be measured reliably, and there are no conditions attached to its payment that limit its recognition.

1.7 Fixed Assets

(a) Operational Assets

Tangible fixed assets other than freehold land and buildings are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, using the straightline method, as follows:

Fixtures, fittings, plant and – over 3 to 5 years
equipment
IT Equipment – over 3 to 5 years
Motor vehicles – over 5 years

Depreciation and amortisation charges are included in expenditure on charitable activities on the Statement of Financial Activities.

of Financial Activities except to the extent they reverse any previous revaluation gains.

(b) Intangible Assets

Intangible assets are stated at historical cost less accumulated amortisation and any provision for impairment.

Website and IT software assets, when operational, are amortised (charged to raising funds) on a straight-line basis over a three-year period but each year an impairment review is undertaken to confirm whether the assets are still fit for purpose in delivering future cash flows whether directly or indirectly.

(c) Investment Property

Investment property represents land and buildings which are primarily held for the purpose of commercial letting. These are measured at fair value annually with any change recognised in the Statement of Financial Activities. Their fair values are based valuations undertaken by an independent Chartered Surveyor using the income/investment approach on desktop valuations estimated by third-party professional valuers (with a full physical valuation every five years).

(d) Investments

Land and buildings are revalued every five years by external professionally qualified valuers, on the basis on their open market value of existing use. In intervening years between full professional revaluations desktop valuation exercises are undertaken by NFC directors using evidence provided by professionally qualified valuers. The exception to this is when planting has taken place, which causes a change in use of the land, impacting the value of the land. When this occurs, a full revaluation is undertaken by external professionally qualified valuers at the end of the year when the planting has taken place.

Conkers land and buildings are revalued every year by external professionally qualified valuers, using the profits method by applying a multiplier to the fair maintainable operating profit to provide a capital value.

Where the valuation is higher than the purchase price paid, the excess over purchase price is credited to a Revaluation Reserve. Revaluation gains are recognised in the Statement of Financial Activities under ‘Revaluation of assets’ unless they reverse a charge for impairment previously recognised as a cost within the expenditure headings of the Statement of Financial Activities. Revaluation losses are recognised as an expense in the relevant expenditure heading of the Statement

Investments are measured at current market value and any gains or losses arising from the revaluation are charged to the Statement of Financial Activities. They are sought in funds and investment products which are not contrary to NFC’s aims and charitable objectives and so are held in the Cazenove Charity Responsible Multi-Asset Fund

1.8 Current assets and liabilities

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.

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

1.9 Cash and cash equivalents

Cash and cash equivalents comprises cash at hand, in bank and short-term deposits. Short-term deposits are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant

46

National Forest Company – Annual Report and Accounts 2024-25

risk of changes in value. Cash in bank is held in a combination of commercial banks and the Government Banking Service.

1.10 Financial Instruments

Other than financial investments, NFC has only financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.11 Foreign Currencies

Receipt and payment recognition of transactions in foreign currencies are recorded at the rate of exchange at the time of the transaction. Exchange differences on monetary items are translated at the closing rate at the end of each reporting period with the differences taken to the Statement of Financial Activities.

1.12 Finance Leases

The NFC has no finance leases. Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease, even if payments are not made on such a basis.

1.13 Pensions

The NFC accounts for pension contributions in the periods for which they are payable. The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi-employer defined benefit scheme. The NFC is unable to identify its share of the underlying assets and liabilities. The Scheme administrators carry out actuarial valuations of the Scheme and prepare full accounts for the Scheme. The NFC recognises in its accounts those costs collected from it by the Scheme administrators in respect of Accruing Superannuation Liability Charges (ASLCs), which are shown as “Pension Costs”.

at 31 March 2024 (£2.68m at 1 April 2023) has been corrected to be shown as tangible assets.

Restricted funds

Furthermore, whilst undertaking the review of the land holdings for the above, the nature of the funding received to fund the acquisition of land since 2020-21 was also reviewed. Upon further consideration of the funding agreement and the organisation’s framework document, it is deemed that the restriction associated with the Nature for Climate funding is satisfied when the income is used to acquire land purchased for the organisation’s charitable purposes. This has meant that £2.95m of funds at 31 March 2024 (£2.27m at 1 April 2023) classified as restricted have been corrected to be shown as unrestricted funds.

The adjustments made have no impact on the total net asset position at 1 April 2023 or 31 March 2024. Note 33 provides details of the movements between classification of fixed assets and fund balances for the comparative year and the movement in classification of fund balances at 1 April 2023.

The impact on the comparative Statement of Financial Activities is a reclassification of £16,603 from investment income to other trading income and an increase in the amount of the restricted to unrestricted transfer by £684,803.

The impact on the comparative Cash Flow Statement is a £16,603 decrease in the cash flow from Interest and rent from investment and a £16,603 increase in the net cash provided by operating activities plus a £493,575 decrease in purchase of investment property and a £493,575 increase in purchase of tangible fixed assets.

2 Prior Year Adjustments

Investment property

A change has been made in the judgement made relating to how we assess land owned by the organisation and its classification of an investment property. Land purchased and owned to meet the organisation’s charitable objects should be appropriately treated as a tangible asset even if there happens to be a licence or farm business tenancy for grazing on the land. This is because the primary purpose for owning the land is not for investment purposes and so should not be treated as an investment property in line with FRS 102 and the charity SoRP. This has meant that £1.87m of land which was treated as investment property as

47

National Forest Company – Annual Report and Accounts 2024-25

3 Grant in aid and Nature for Climate Funds

Group 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24
Unrestricted
Funds
£		 Restricted
Funds
Unrestricted
Funds
£
£		 Restricted
Funds
£
Grant in aid
Nature for Climate Fund		 2,538,846
–		 757,519
3,158,000		 2,527,275
–		 –
1,399,799

Grant in aid is received from Defra and is treated as unrestricted income since the Department, whilst requiring that funds allocated contribute to the delivery of its objectives, does not stipulate any specific purpose(s) as to how any of the funds must be utilised.

Grant in aid accounts is utilised to fund the forest creation and woodland management programmes, including the various grant schemes, contributes to the tourism and community engagement programmes and meets a significant proportion of governance and support costs.

Nature for Climate Funds, while also received from Defra, it is treated as restricted income, per the memorandum of understanding, which facilitates funding of new planting within the National Forest.

4 Donations and legacies

4
Donations and legacies
Group 2024-25
2023-24
Unrestricted
Funds
£		 Restricted
Funds
Unrestricted
Funds
£
£		 Restricted
Funds
£
Donations in lieu of entry (Conkers)
Dedicate a Grove
Dedicate a Tree
General donations
Other donations
Legacies		 1,008,413
38,050
98,783
75,921
–
26,843
1,248,010		 –
–
–
–
32,600
–
32,600		 1,059,827
42,401
134,435
55,893
–
100
1,292,657		 –
–
–
–
23,000
–
23,000

5 Income from charitable activities

5
Income from charitable activities
Group 2024-25
2023-24
Unrestricted
Funds
£		 Restricted
Funds
Unrestricted
Funds
£
£		 Restricted
Funds
£
Forest creation
Woodland management
Community engagement
Tourism and promotion
Charnwood Forest Partnership
Conkers
Other		 254,726
–
–
–
–
397,137
40,223
692,086		 207,984
504,457
545,262
18,000
293,951
–
–
1,569,654		 30,743
–
–
–
–
266,330
45,403
342,476		 292,365
326,452
196,359
18,000
553,913
1,057
1,388,146

48

National Forest Company – Annual Report and Accounts 2024-25

6 Income from other trading activities

Group 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24		 2024-25
2023-24
Unrestricted
Funds
£		 Restricted
Funds
Unrestricted
Funds
(restated)
£
£		 Restricted
Funds
£
Corporate Partnerships
Other trading activities
7
Investments
Group		 46,543
–
34,115
–
80,658
–
2024-25		 70,673
–
52,348
–
123,021
–
2023-24		 –
–
–
Unrestricted
Funds
£		 Restricted
Funds
Unrestricted
Funds
(restated)
£
£		 Restricted
Funds
£
Rental income
Investment income
Bank interest
8
Analysis of Expenditure
Group		 Direct
Staff costs
£		 71,659
19,836
17,573
109,068

Other direct
activity
costs
£		 –
–
–
–
Grant
funding
of activity
£		 74,653
21,848
14,179
110,680
Support
costs
£		 –
–
–
–
Total
2024-25
£
Raising Funds
Development and fundraising
costs
Investment management costs
Total Cost
Charitable Activities
Forest creation
Woodland management
Community engagement
Tourism and promotion
Charnwood Forest Partnership
Conkers
Total Cost
Total All Costs		 279,050
–		 335,584
2,182		 –
–		 291,729
–
291,729
649,163
224,677
404,231
89,300
218,594
–
1,585,965
1,877,694		 906,363
2,182
908,545
3,887,700
1,189,663
1,116,383
312,514
638,564
1,197,574
8,342,398
9,250,943
279,050
418,167
100,308
285,031
72,275
185,393
–		 337,766
1,085,770
536,394
349,385
106,305
209,143
1,197,574		 –
1,734,600
328,284
77,736
44,634
25,434
–
1,061,174 3,484,571 2,210,688
1,340,224 3,822,337 2,210,688

Comparative figures for 2023-24 can be found at note 30.

49

National Forest Company – Annual Report and Accounts 2024-25

9 Analysis of Grant Funding of Activity

The NFC awards grants to a number of institutions, both organisations and landowners, to support activity which contributes to the achievement of its charitable objects. No grants were paid with the purpose of directly benefitting the personal circumstances of the individuals.

Group
Grants to
organisations
£		 Group
Grants to
organisations
£		 Grants to
landowners
£		 Total
2024-25
£		 Total
2023-24
£
Forest creation
Woodland management
Community engagement
Tourism and promotion		 891,734
109,721
103,170
43,634
1,148,259		 842,866
218,563
–
1,000
1,062,429		 1,734,600
328,284
103,170
44,634
2,210,688		 366,328
317,760
176,999
36,652
897,739

Included in the funding activity of Forest Creation, in total £620,539 was paid to the combination of the National Trust, Forest of Avon Trust, Sheffield & Rotherham Wildlife Trust and Ribble Catchment Conservation Trust as part of the Forest for the Nation project.

Apart from grants paid to the National Trust (£208,834), Wild Rumpus CIC (£40,000), North West Leicestershire District Council (£17,851) and the Woodland Trust (£55,626), no other organisation received grants amounting to more than £20,000. Four landowners received grants amounting to more than £20,000 totalling £388,880.

Comparative figures for 2023-24 can be found at note 31.

10 Analysis of Support Costs

10 Analysis of Support Costs
Group Staff Costs
£		 Other costs
£		 Total
2024-25
£		 Total
2023-24
£
Governance costs
Finance costs
Premises costs
ICT & Telecoms
Human Resources
Organisational support costs
PR & Communications
Grants administration
Charitable Activities
Advocacy
Depreciation		 105,063
239,744
–
68,891
68,891
124,353
138,589
189,027
251,198
71,630
–
1,257,386		 90,154
24,297
128,296
167,092
62,362
111,956
516
–
–
–
35,635
620,308		 195,217
264,041
128,296
235,983
131,253
236,309
139,105
189,027
251,198
71,630
35,635
1,877,694		 178,516
184,349
98,144
210,108
215,864
213,050
173,925
136,806
189,290
90,708
30,676
1,721,436

Comparative figures for 2023-24 can be found at note 31.

50

National Forest Company – Annual Report and Accounts 2024-25

11 Analysis of Governance Other Costs

11 Analysis of Governance Other Costs
Group 2024-25
£		 2023-24
£
Trustees related expenditure
Legal and professional fees
Audit and annual report costs
Other
12 Net Income/Expenditure for the Year
Group		 3,693
–
85,765
696
90,154
2024-25
£		 18,375
1,473
54,082
401
74,331
2023-24
£
This is stated after charging:
Operating leases
Depreciation
Amortisation
Auditor’s remuneration:
Audit fee
Accountancy and tax services		 53,534
35,635
59,726
72,500
–		 53,534
30,676
–
50,000
–

13 Trustees (Directors)

John Everitt is a Trustee and is employed by NFC as the Chief Executive for which he is remunerated. The detail of his remuneration is provided in the Remuneration and Staff Report. None of the other Trustees (or any persons connected with them) received any remuneration or benefits during the year. Excluding John Everitt, four trustees were reimbursed out-of-pocket expenses totalling £1,470 (2023-24: five totalling £1,760).

14 Employees

The average monthly headcount of contracted employees and the average full-time equivalent (FTE) number of employees during the year were as follows:

Group 2024-25
Headcount		 2024-25
FTE		 2023-24
Headcount		 2023-24
FTE
Direct charitable activities
Management, administration and support		 25
20
45		 23
19
42		 24
17
41		 22
17
39

Employment Costs:

Group 2024-25
£		 2023-24
£
Wages and salaries
National Insurance costs
Pension costs		 1,897,019
203,908
496,683
2,597,610		 1,692,312
178,766
411,767
2,282,845

51

National Forest Company – Annual Report and Accounts 2024-25

14 Employees (cont.)

The number of employees with annual emoluments of £60,000 or more:

2024-25 2023-24
(number) (number)
£60,000 – £70,000 1 3
£70,000 – £80,000 2 –
£90,000 – £100,000 – 1
£100,000 – £110,000 1 –

There are five posts considered as paid executive Key Management Personnel of the charity (as defined by FRS102), comprising the Chief Executive, Director of Operations, Director of Development, Director of Corporate Resources, and Commercial Director. The employee benefits of Key Management Personnel amounted to £517,184 (2023-24: £503,723).

15 Intangible Fixed Assets

15 Intangible Fixed Assets
Groupand Charity Website
£
Under
Construction
£		 Total
£
Cost
At 1 April 2024
Additions
Disposals
Transfers
At 31 March 2025
Amortisation
At 1 April 2024
Charge for the period
On disposal
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 117,258
–
(117,258)
175,269
175,269
115,955
59,726
(117,258)
58,423
116,846
1,303		 200,242
–
(24,973)
(175,269)
–
–
–
–
–
–
200,242		 317,500
–
(142,231)
–
175,269
115,955
59,726
(117,258)
58,423
116,846
201,545

52

National Forest Company – Annual Report and Accounts 2024-25

16 Tangible Fixed Assets

Group Conkers
Building
£		 Conkers
Land
£		 Buildings
£		 Land
(restated)
£		 Furniture
and
Fittings
£		 IT
equipment
£		 Total
£
Cost/Valuation
At 1 April 2024
Additions
Disposals
Impairment
Revaluation
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
On disposal
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 2,235,745
–
–
(105,690)
–
2,130,055
–
–
–
–
2,130,055		 496,948
–
–
–
(23,492)
473,456
–
–
–
–
473,456		 17,308
–
–
(830)
11
16,489
–
–
–
–
16,489		 8,550,000
1,791,901
–
(642,401)
–
9,699,500
–
–
–
–
9,699,500
8,550,000		 238,364
–
(21,861)
–
–
216,503
174,611
16,858
(21,861)		 194,685
7,181
(104,446)
–
–
97,420
140,178
18,777
(104,446)		 11,733,050
1,799,082
(126,307)
(748,921)
(23,481)
12,633,423
314,789
35,635
(126,307)
169,608
46,895
63,753		 54,509
42,911
54,507		 224,117
12,409,306
2,235,745 496,948 17,307 11,418,261

The combined cost value of the revalued land and buildings, had the assets been carried under the historical cost and fair value model, at 31 March 2025 would be £15,589,370 (2024 : £13,797,469).

Charity Conkers
Building
£		 Conkers
Land
£		 Buildings
£		 Land
(restated)
£		 Furniture
and
Fittings
£		 IT
equipment
£		 Total
£
Cost/Valuation
At 1 April 2024
Additions
Disposals
Impairment
Revaluation
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
On disposal
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 2,235,745
–
–
(105,690)
–
2,130,055
–
–
–
–
2,130,055
2,235,745		 496,948
–
–
–
(23,492)
473,456
–
–
–
–
473,456
496,948		 17,308
–
–
(830)
11
16,489
–
–
–
–
16,489
17,308		 7,524,115
1,791,901
–
(642,401)
–
8,673,615
–
–
–
–
8,673,615
7,524,115		 238,364
–
(21,861)
–
–
216,503
174,611
16,858
(21,861)		 194,685
7,181
(104,446)
–
–
97,420
140,178
18,777
(104,446)		 10,707,165
1,799,082
(126,307)
(748,921)
(23,481)
11,607,538
314,789
35,635
(126,307)
169,608
46,895
63,753		 54,509
42,911
54,507		 224,117
11,383,421
10,392,376

The combined cost value of the revalued land and buildings, had the assets been carried under the historical cost model, at 31 March 2025 would be £14,820,985 (2024 : £13,029,084). Impairments and Reversal of prior years’ impairment on land are charged to the Statement of Finance Activity through expenditure on charitable activities as Forest Creation activity expenditure.

53

National Forest Company – Annual Report and Accounts 2024-25

The annual valuation of land and buildings at 31 March 2025 was undertaken either by NFC directors using evidence provided by professionally qualified valuers or by external professionally qualified valuers, taking into account factors like agricultural grade, access, location, use and any restrictions.

17 Investments

17 Investments
Group Cazenove
Investment
Fund
£		 Property
£		 Total
£
Cost/Valuation
At 1 April 2024 (restated)
Additions
Disposals
Revaluation
At 31 March 2025		 524,183
–
(1,573)
(15,340)
507,270		 2,370,000
–
–
(87,000)
2,283,000		 2,894,183
–
(1,573)
(102,340)
2,790,270

The cost value of the revalued property, had the assets been carried under the historical cost and fair value model, at 31 March 2025 would be £2,087,270 (2024 : £2,087,270).

The annual valuation of land and buildings at 31 March 2025 was undertaken by external professionally qualified valuers.

Charity Subsidiary
company
£		 Cazenove
Investment
Fund
£		 Property
£		 Total
£
Cost/Valuation
At 1 April 2024 (restated)
Additions
Disposals
Revaluation
At 31 March 2025		 –
–
–
–
–		 524,183
–
(1,573)
(15,340)
507,270		 1,220,000
–
–
(25,000)
1,195,000		 1,744,183
–
(1,573)
(40,340)
1,702,270

The charity holds two shares, which is which is the entire issued share capital, of National Forest Enterprises Ltd, which were transferred to the charity at £nil cost.

The cost value of the revalued property, had the assets been carried under the historical cost model, at 31 March 2025 would be £929,770 (2024 : £929,770).

In the year ended 31 March 2021, £500,001 was invested in Cazenove Charity Responsible Multi-Asset Fund which, for 2024-25, has generated a return of £19,836 (2023-24: £21,848). The income is extracted to our reserves, rather than re-invested into the fund.

54

National Forest Company – Annual Report and Accounts 2024-25

18 Consolidated subsidiary

The National Forest Company (Parent) wholly owns a trading subsidiary which is incorporated in the UK and has the same registered office as the NFC. The subsidiary undertaking, National Forest Enterprises Limited (Company Registration No. 03601510) holds property and manages the operating agreement with the independent third party which operates Conkers. The company donates its taxable profit to NFC as unrestricted funds.

Profit & Loss Account 2024-25
£		 2023-24
£
Turnover
Gross Profit
Administrative expenses
Fair value movements
Operating profit
Profit for the financial year		 415,116
415,116
(332,474)
(62,000)
20,642
20,642
31 March
2025
£		 283,256
283,256
(280,997)
(12,000)
(9,741)
(9,741)
31 March
2024
£
Capital and Reserves
19 Debtors
Amounts fallingdue within oneyear		 Group 2,113,887
2,175,887
Parent
2025
£		 2024
£		 2025
£		 2024
£
Trade debtors
Owed by subsidiary company
Owed by HMRC
Other debtors
Prepayments
Accrued income
Amounts falling due after one year
Other debtors
Total debtors		 186,417
–
59,910
13,329
92,493
243,110
595,259
4,334
4,334
599,593		 173,810
–
71,372
8,460
85,592
558,508
897,742
5,036
5,036
902,778		 182,601
242,865
59,858
13,329
92,493
61,332
652,478
4,334
4,334
656,812		 168,136
96,151
69,305
8,460
85,592
454,471
882,115
5,036
5,036
887,151

Amounts owed by subsidiary company are repayable on demand and no interest is chargeable.

55

National Forest Company – Annual Report and Accounts 2024-25

20 Creditors: Amounts Falling Due Within One Year

Group Group Parent Parent
2025
£		 2024
£		 2025
£		 2024
£
Trade creditors
Other Creditors
Accruals
Deferred income		 260,599
3,300
239,738
152,150
655,787		 161,948
3,300
298,524
602,086
1,065,858		 260,541
3,300
228,144
152,150
644,135		 157,831
3,300
286,930
602,086
1,050,147

21 Deferred Income

21 Deferred Income
Balance at
1 April 2024
£		 Additions
£		 Released
£		 Balance at
31 March
2025
£
Section 106
Severn Trent – Great Big Nature Boost
Fatface Carbon Project
UKSPF – Heart of the Forest
NFC Building Decarbonisation Project
Getting to know your Greenspace
Other		 15,280
105,299
200,000
218,490
50,000
–
13,017
602,086		 –
–
–
–
–
124,439
18,161
142,600		 (5,730)
(105,299)
(200,000)
(218,490)
(50,000)
–
(13,017)
(592,536)		 9,550
–
–
–
–
124,439
18,161
152,150

Deferred income relates to income received but for which the specified outputs have not been delivered by the year end.

22 Financial Instruments

Financial assets measured at amortised cost comprise cash at bank, trade debtors, other debtors and accrued income. Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.

As the current cash requirements of the NFC are met largely through grant in aid received from Defra, financial instruments play a more limited role in creating risk than would apply to a non-public sector body of a similar size. The NFC has no complex financial instruments and the risk of exposure to credit, liquidity or market risk is minimal. The NFC investment of £500,001 with Cazenove’s Charity responsible Multi- Asset Fund is a financial instrument with the measurement and accounting basis being fair value.

23 Commitments under operating leases

Future minimum rentals of the consolidated group payable under non-cancellable operating leases are as follows:

2024-25
£		 2023-24
£
Less than 1 year
Between 2 and 5 years
Over 5 years		 53,534
107,069
–
160,603		 53,534
160,603
–
214,137

The obligations relate to the lease for office accommodation occupied by the National Forest Company which commenced on 1 April 2023 and will expire on 31 March 2028. The lease expense, including irrecoverable VAT for 2024-25 was £53,534 (2023-24: £53,534).

56

National Forest Company – Annual Report and Accounts 2024-25

24 Other Financial Commitments

The NFC has entered into contracts (which are not leases or PFI contracts) under the Changing Landscape Scheme (CLS) and the Freewoods and Parkland Schemes. The payments to which the NFC is committed, analysed by the period during which the commitments fall due, are as follows:

2024-25
£		 2023-24
£
Less than 1 year
Between 2 and 5 years
Over 5 years		 62,021
285,788
–
347,809		 72,061
347,809
–
419,870

25 Restricted Funds (Movement in Funds)

Groupand Charity Balance at 1
April 2024
(restated)
£		 Incoming
Funds
£		 Resources
Expended
£		 Transfers
£
Balance at 31
March 2025
£		 Transfers
£
Balance at 31
March 2025
£
Nature for Climate Fund
Nature for Climate Fund –
Midlands Forest Network
Creating a Forest for
Learning project
Defra Comms & Forest for
the Nation
Creating Working
Woodlands project
Charnwood Forest
Partnership Landscape
scheme
Burton & Coalville arts
projects
NFC Building
Decarbonisation Project
Rolls Royce –
Environmental Education
Severn Trent – Great Big
Nature Boost
Midlands Forest Network
National Forest
Community Woodlands
Valpak Ltd – various
UKSPF – Heart of the
National Forest
Other restricted funds		 239,608
13,280
44,081
–
1,468
99,647
–
–
–
–
–
26,874
29,161
–
31,001
485,120		 3,058,000
100,000
110,000
757,519
–
293,951
38,551
50,000
20,000
490,061
40,858
72,771
12,600
323,941
149,521
5,517,773		 (1,441,555)
(113,280)
(68,850)
(757,519)
(1,468)
(459,136)
(5,515)
(50,000)
(20,000)
(487,992)
(13,028)
(99,645)
(28,615)
(199,971)
(84,492)
(3,831,066)		 (1,686,152)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,686,152)		 169,901
–
85,231
–
–
(65,538)
33,036
–
–
2,069
27,830
–
13,146
123,970
96,030
485,675

The transfer of £1,686,152 represents the expenditure on land purchased in the year, which has been capitalised on the balance sheet as unrestricted assets on the basis that the requirements attached to the funding have been met.

57

National Forest Company – Annual Report and Accounts 2024-25

26 Designated Funds (Movement in Funds)

Group Balance at
1 April 2024
£
New
Designations
£		 Balance at
1 April 2024
£
New
Designations
£		 Utilised
funds
£		 Released
£		 Balance at
31 March
2025
£
Financial Contingency
Fund
Land Acquisition,
Management and
Development Fund
Enterprise and Investment
Fund
Conkers Repair &
Investment Fund
Land and Buildings capital
asset reserve
Investment property
reserve (restated)
Charity		 700,000
250,000
500,000
–
438,973
–
92,377
20,000
–
11,623,422
2,370,000
–
4,101,350
11,893,422
Balance at
1 April 2024
£
New
Designations
£		 –
–
–
–
–
(87,000)
(87,000)
Utilised
funds
£		 (500,000)
(438,973)
–
–
–
(938,973)
Released
£		 950,000
–
–
112,377
11,623,422
2,283,000
14,968,799
Balance at
31 March
2025
£
Financial Contingency
Fund
Land Acquisition,
Management and
Development Fund
Enterprise and Investment
Fund
Conkers Repair &
Investment Fund
Land and Buildings capital
asset reserve
Investment property
reserve (restated)		 700,000
500,000
438,973
92,377
–
1,220,000
2,951,350		 250,000
–
–
20,000
10,855,038
–
11,125,038		 –
–
–
–
–
(25,000)
(25,000)		 (500,000)
(438,973)
–
–
–
(938,973)		 950,000
–
–
112,377
10,855,038
1,195,000
13,112,415

Designated funds are unrestricted funds, but nevertheless designated by the Trustees for a particular purpose. Those purposes being a financial contingency fund, a repair and investment fund for Conkers and capital reserve funds equating to the net book value of land and buildings and investment property held by the group. The significant movement between general reserves and designated reserves is as a result of the new designation of the Land and Buildings capital asset reserve.

58

National Forest Company – Annual Report and Accounts 2024-25

27 Analysis of Net Assets between Funds

27 Analysis of Net Assets between Funds
Group Unrestricted
funds
£		 Restricted
funds
£		 Total
£
Fund balances at 31 March 2025 are represented by:
Intangible fixed assets
Tangible fixed assets
Investments
Net current assets
Charity		 116,846
12,409,306
2,790,270
1,031,222
16,347,644
Unrestricted
funds
£		 –
–
–
485,675
485,675
Restricted
funds
£		 116,846
12,409,306
2,790,270
1,516,897
16,833,319
Total
£
Fund balances at 31 March 2025 are represented by:
Intangible fixed assets
Tangible fixed assets
Investments
Net current assets		 116,846
11,383,421
1,702,270
1,031,222
14,233,759		 –
–
–
485,675
485,675		 116,846
11,383,421
1,702,270
1,516,897
14,719,434

28 Related Party Disclosures

The charity owns the whole of the issued share capital of National Forest Enterprises Limited. During the year, the charity charged the subsidiary company £75,000 (2023-24: £68,386) for services and the subsidiary company donated its profits, through Gift Aid, of £82,642 (2023-24: £nil). At the year end the subsidiary company owed the charity £237,557 (2024: £96,151).

John Everitt, a trustee and the chief executive, has been a member of the National Lottery Heritage Fund Midlands and East Committee since January 2015. Grant Support of £276,059 (2023-24 £524,628) was received for the Charnwood Forest Landscape Partnership Scheme project; John Everitt declared an interest and was not party to the decision to award the funds.

During the year, no trustee or related parties has undertaken any material transactions with the Charity other than those disclosed in the Remuneration and Staff Report.

The NFC has dealings with the Department for Environment, Food and Rural Affairs (Defra) and some of its sponsored bodies.

2024-25 2023-24
£ £
Defra – Grant in aid 3,296,365 2,527,275
Defra – Nature for Climate Fund 3,158,000 1,261,299
Rural Payments Agency (Woodland grants) 14,396 11,355

The NFC has an agreement with Forest Research allowing access to a National Forest site at Eastern Old Parks in order to undertake research into Ash Dieback disease.

29 Events after the Balance Sheet Date

The Annual Report and Accounts have been authorised for issue by the National Forest Company’s Chief Executive and Trustees. The authorised to issue date is the date of the Comptroller and Auditor General’s audit certificate.

59

National Forest Company – Annual Report and Accounts 2024-25

30 Comparative Consolidated Statement of Financial Activities including Income and Expenditure Account for the year ended 31 March 2024

Expenditure Account for the year ended 31 March 2024 Expenditure Account for the year ended 31 March 2024
Notes
Unrestricted
Funds
(restated)
£		 Restricted
Funds
(restated)
£		 Total
2023-24
£
Income
Grant in aid
2
Nature for Climate Fund
2
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Total Income
Expenditure
Raising Funds
31
Charitable Activities
31
Total Expenditure
Net Income/(Expenditure) before gains or losses
Net gains/(losses) on investments
Net Income/(Expenditure) before transfers
Transfers (restated)
Net Income/(Expenditure) after transfers
Other Recognised Gains and Losses:
Gains/(losses) on revaluation of fixed assets
Gains/(losses) on foreign currency
Net Movement in Funds
Reconciliation of Funds:
Total Funds at start of the year as originally stated
Prior year adjustment
Total Funds at start of the year as restated
Total Funds at end of the year		 2,527,275
–
881,039
411,618
342,476
106,418
4,396,106
816,633
4,876,467
5,693,100
(1,296,994)
173,681
(1,123,313)
688,092
(435,221)
(4,565)
–
(439,786)
13,712,957
2,265,351
15,978,308
15,538,522		 –
1,399,799
–
23,000
1,388,147
–
2,810,946
–
2,339,903
2,339,903
471,043
–
471,043
(688,092)
(217,049)
–
(257)
(217,306)
2,967,778
(2,265,351)
702,426
485,120		 2,527,275
1,399,799
881,039
434,618
1,730,623
106,418
7,207,052
816,633
7,216,370
8,033,003
(825,951)
173,681
(652,270)
–
(652,270)
(4,565)
(257)
(657,092)
16,680,734
–
16,680,734
16,023,642

The restated figures represent a reclassification of £16,603 from investment income to other trading income and an increase in the amount of the restricted to unrestricted transfer by £684,803.

60

National Forest Company – Annual Report and Accounts 2024-25

31 Comparative Analysis of Expenditure notes

Analysis of Expenditure

Analysis of Expenditure
Direct Staff
costs
£
Other direct
activity
costs
£		 Grant
funding
£		 Support
costs
£		 Total
2023-24
£
Raising Funds
Development and fundraising
costs
Investment management
costs
Total Cost
Charitable Activities
Forest creation
Woodland management
Community engagement
Tourism and promotion
Charnwood Forest Partnership
Conkers
Total Cost
Total All Costs		 244,500
244,500
416,051
95,921
196,099
73,114
179,054
–
960,239
1,204,739		 251,168
2,854
254,022
969,971
644,542
231,215
169,326
379,495
1,560,518
3,955,067
4,209,089		 –
–
366,328
317,760
176,999
36,652
–
–
897,739
897,739		 318,111
–
318,111
534,690
241,998
315,330
104828
206,479
–
1,403,325
1,721,436		 813,779
2,854
816,633
2,287,040
1,300,221
919,643
383,920
765,028
1,560,518
7,216,370
8,033,003

Analysis of Grant Funding of Activity

The NFC awards grants to a number of institutions, both organisations and landowners, to support activity which contributes to the achievement of its charitable objects. No grants were paid with the purpose of directly benefitting the personal circumstances of the individuals.

Grants to
organisations
£		 Grants to
organisations
£		 Grants to
landowners
£		 Total
2023-24
£
Forest creation
Woodland management
Community engagement
Tourism and promotion		 201,299
93,850
176,999
30,176
502,324		 165,029
223,910
–
6,476
395,415		 366,328
317,760
176,999
36,652
897,739

Apart from grants paid to the National Trust (£70,930), South Derbyshire District Council (£22,961), Wild Rumpus CIC (£60,000), Fellowship of the School of Economic Science (£21,953) and the Woodland Trust (£55,626), no other organisation received grants amounting to more than £20,000. Four landowners received grants amounting to more than £20,000 totalling £388,880.

61

National Forest Company – Annual Report and Accounts 2024-25

31 Comparative Analysis of Expenditure notes (cont)

Analysis of Support Costs

Analysis of Support Costs
Staff Costs
£		 Other costs
£		 Total
2023-24
£
Governance costs
Finance costs
Premises costs
ICT & Telecoms
Human Resources
Organisational support costs
PR & Communications
Grants administration
Charitable Activities
Advocacy
Depreciation		 104,185
151,507
–
62,796
62,796
106,542
173,474
136,806
189,290
90,708
–
1,078,106		 74,331
32,842
98,144
147,312
153,068
106,508
451
–
–
–
30,676
643,330		 178,516
184,349
98,144
210,108
215,864
213,050
173,925
136,806
189,290
90,708
30,676
1,721,436

32 Comparative Funds notes

Restricted Funds

Restricted Funds
Groupand Charity Balance at
1 April 2023
(restated)
£		 Incoming
Funds
£		 Resources
Expended
£		 Transfers
£		 Balance at
31 March
2024
(restated)
£
Nature for Climate Fund
Nature for Climate Fund –
Midlands Forest Network
Creating a Forest for Learning
project
Defra Comms & Forest for the
Nation
Creating Working Woodlands
project
Charnwood Forest Partnership
Landscape scheme
Burton & Coalville arts projects
Rolls Royce – Environmental
Education
Severn Trent – Great Big
Nature Boost
Midlands Forest Network
National Forest Community
Woodlands
Valpak Ltd – various
UKSPF – Heart of the National
Forest
Other restricted funds		 304,867
10,712
173,366
–
11,633
144,209
–
–
–
–
–
48,628
–
9,012
702,427		 1,261,299
100,000
22,000
38,500
–
553,913
1,057
20,000
224,694
63,104
133,603
–
34,510
358,266
2,810,946		 (641,755)
(97,432)
(151,285)
(40,021)
(10,165)
(598,476)
–
(20,000)
(262,987)
(65,805)
(106,729)
(19,467)
(74,949)
(251,089)
(2,340,160)		 (684,803)
–
–
1,521
–
–
(1,057)
–
38,293
2,702
–
–
40,439
(85,187)
(688,092)		 239,608
13,280
44,081
–
1,468
99,647
–
–
–
–
26,874
29,161
–
31,001
485,120

62

National Forest Company – Annual Report and Accounts 2024-25

32 Comparative Fund notes (cont)

Designated Funds

Designated Funds
Group Balance at
1 April 2023
(restated)
£
New
Designations
£		 Utilised
funds
£		 Released
£		 Balance at
31 March
2024
(restated)
£
Financial Contingency Fund
Land Acquisition,
Management and
Development Fund
Enterprise and Investment
Fund
Conkers Repair & Investment
Fund
Land and Buildings asset
reserve
Investment property reserve
Charity		 700,000
–
700,000
–
500,000
–
280,588
178,789
–
–
2,222,000
160,000
4,402,588
338,789
Balance at
1 April 2023
(restated)
£
New
Designations
£		 –
(200,000)
(61,027)
(367,000)
–
(12,000)
(640,027)
Utilised
Funds
£		 –
–
–
–
–
–
–
Released
£		 700,000
500,000
438,973
92,377
–
2,370,000
4,101,350
Balance at
31 March
2024
(restated)
£
Financial Contingency Fund
700,000
Land Acquisition,
Management and
Development Fund
700,000
Enterprise and Investment
Fund
500,000
Conkers Repair & Investment
Fund
280,588
Land and Buildings asset
reserve
–
Investment property reserve
1,060,000
3,240,588
Analysis of Net Assets between Funds
Group		 –
–
–
(200,000)
–
(61,027)
178,789
(367,000)
–
–
160,000
–
338,789
(628,027)
Unrestricted
funds
£		 –
–
–
–
–
–
–
Restricted
funds
£		 700,000
500,000
438,973
92,377
–
1,220,000
2,951,350
Total
£
Fund balances at 31 March 2024 are represented
Intangible fixed assets
Tangible fixed assets
Investments
Net current assets		 by: 201,545
11,418,261
2,894,183
1,024,533
15,538,522		 –
–
–
485,120
485,120		 201,545
11,418,261
2,894,183
1,509,653
16,023,642

63

National Forest Company – Annual Report and Accounts 2024-25

32 Comparative Fund notes (cont)

32 Comparative Fund notes (cont)
Charity Unrestricted
funds
£		 Restricted
funds
£		 Total
£
Fund balances at 31 March 2024 are represented by:
Intangible fixed assets
Tangible fixed assets
Investments
Net current assets		 201,545
10,392,376
1,744,183
1,024,518
13,362,622		 –
–
–
485,120
485,120		 201,545
10,392,376
1,744,183
1,509,638
13,847,742

33 Prior Year adjustment

As explained in Note 2, the organisation has revised its treatment of land owned which had ancillary licences and farm business tenancy agreements for grazing rights (impacting fixed asset classification for the group and charity) and its consideration of the treatment of restricted Nature for Climate income utilised to acquire land for charitable purposes (impacting funds classification of the group and charity). The impact to the fund balances as reported at 1 April 2023 and the balance sheet as reported at 31 March 2024 are provided below.

The Funds of the Group: As reported
at 1 April
2023
£		 Adjustment
£		 As restated
at 1 April
2023
£
Restricted funds
Unrestricted funds:
Designated funds
General funds
Revaluation Reserve
The Funds of the Charity:		 2,967,778
4,649,143
8,339,688
12,988,831
724,124
16,680,733
As reported
at 1 April
2023
£		 (2,265,351)
(246,555)
2,511,906
2,265,351
–
–
Adjustment
£		 702,427
4,402,588
10,851,594
15,254,182
724,124
16,680,733
As restated
at 1 April
2023
£
Restricted funds
Unrestricted funds:
Designated funds
General funds
Revaluation Reserve		 2,967,778
4,649,143
6,411,557
11,060,700
546,624
14,575,102		 (2,265,351)
(246,555)
2,511,906
2,265,351
–
–		 702,427
4,402,588
8,923,463
13,326,051
546,624
14,575,102

64

National Forest Company – Annual Report and Accounts 2024-25

33 Prior Year adjustment (cont)

33 Prior Year adjustment (cont)
GroupBalance Sheet As reported
at 31 March
2024
£		 Adjustment
£		 As restated
at 31 March
2024
£
Fixed Assets:
Intangible assets
Tangible assets
Investment property
Investments
Total Fixed Assets
Current Assets:
Debtors
Cash at bank and in hand
Total Current Assets
Creditors: amount falling due within 1 year
Net Current Assets
Total Assets less Current Liabilities
Total Net Assets
The Funds of the Group:
Restricted funds
Unrestricted funds:
Designated funds
General funds
Revaluation Reserve		 201,545
9,553,261
4,235,000
524,183
14,513,989
902,778
1,672,732
2,575,510
(1,065,858)
1,509,653
16,023,642
16,023,642
3,435,275
4,373,586
7,495,222
11,868,808
719,559
16,023,642		 –
1,865,000
(1,865,000)
–
–
–
–
–
–
–
–
–
(2,950,155)
(272,236)
3,222,391
2,950,155
–
–		 201,545
11,418,261
2,370,000
524,183
14,513,989
902,778
1,672,732
2,575,510
(1,065,858)
1,509,653
16,023,642
16,023,642
485,120
4,101,350
10,717,613
14,818,963
719,559
16,023,642

65

National Forest Company – Annual Report and Accounts 2024-25

33 Prior Year adjustment (cont)

33 Prior Year adjustment (cont)
CharityBalance Sheet As reported
at 31 March
2024
£		 Adjustment
£		 As restated
at 31 March
2024
£
Fixed Assets:
Intangible assets
Tangible assets
Investment property
Investments
Total Fixed Assets
Current Assets:
Debtors
Cash at bank and in hand
Total Current Assets
Creditors: amount falling due within 1 year
Net Current Assets
Total Assets less Current Liabilities
Total Net Assets
The Funds of the Group:
Restricted funds
Unrestricted funds:
Designated funds
General funds
Revaluation Reserve		 201,545
8,527,376
3,085,000
524,183
12,338,104
887,151
1,672,634
2,559,784
(1,050,147)
1,509,638
13,847,742
13,847,742
3,435,275
3,223,586
6,726,822
9,950,408
462,059
13,847,742		 –
1,865,000
(1,865,000)
–
–
–
–
–
–
–
–
–
(2,950,155)
(272,236)
3,222,391
2,950,155
–
–		 201,545
10,392,376
1,220,000
524,183
12,338,104
887,151
1,672,634
2,559,784
(1,050,147)
1,509,638
13,847,742
13,847,742
485,120
2,951,350
9,949,213
12,900,563
462,059
13,847,742

66

National Forest Company – Annual Report and Accounts 2024-25

E03383306 978-1-5286-5820-1