Charity Commission No. 1174691 (England and Wales) Office of the Scottish Regulator No. SC048007{Scotland) Company Registration No. 10596645 (England and Wales) THE SCOTS, GUARDS CHARITY ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 F4&FS£.4.. Scots Guards training in Kenya
THE SCOTS GUARDS CHARITY LEGAL AND ADMINISTRATIVE INFORMATION Trustees Brigadier (retired) G H F S Nickerson Col J D L Leask MBE The Rt Hon Sir lain Duncan Smith PC MP Lieutenant Colonel N A Mcclelland MBE Mrs L Hobbs Captain (relired) M Joynson Captain (retired) P D Vail A D Dalrymple Esq Regimental Adjutant Major (retired) J R Kelly Regimental Welfare and Finance Officer Major (retired) M A Cape {Company Secretary) Charity number {England and Wales 1174691 Charity number (Scotlandl SC048007 Company number 1059e645 Registered oiTice Regimental Headquarters Scots Guards Wellington Barracks Birdcage Walk London SW1E 6HQ Auditor Alliotts LLP Manfield House 1 Southampton Street London WC2R OLR Bankers Lloyds TSB Bank PIC Cox's and King's PO Box 1190 7 Pall Mall London SW1Y SNA Investment adviso Ruffer LLP 80 Victoria Street London SW1E &IL AUBREY Capital Management 10 Coates Crescent Edinburgh EH3 7AL Asset Risk Consultants (UK) Ltd (ARCUK) 46 Chancery Lane London WC2A 1JE
THE SCOTS GUARDS CHARITY CONTENTS Page Supporting the regiment Trustees, report 4-6 Statement of trustees. responsibilities Independent audilor's report 9-11 Statement of financial actwities 12 Balance sheet 13 Notes to the financial statements 14-26 4[11-"' Scots Guards Past and Present gather to remember those that lost their lives in the Falkland Islands during the Battle of Mount Tumbledown.
THE SCOTS GUARDS CHARITY SUPPORTING THE REGIMENT FOR THE YEAR ENDED 31 MARCH 2025 For 383 years we have had an enviable reputation of looking after our own on the battlefield and off. The guardsmen have always known that they and their families will be properfy cared for under all circumstances. It is critical that future generations of guardsmen continue to have total Conffiden in the regimenvs ability to do this. With this critical and ambitious aim, we need lo put our Charitable Fund at the core of regimental family and our supporters, charilable giving. We are encouraging them to fund our vital worf( by increasing donations, ensuring legacies are clear in Wills. persuading others to donate or raising money through personal endeavors. The charity's purpose is to improve the quality of life for Scots Guardsmen and their families, help to overcome injury or hardship and to speed rehabilitation. These needs have increased with the number of tours of duty and the very facl that the weapons used today. such as improvised explosive devices. can be devastating. Our annual budget is divided into 4 main areas.. Improving Soldiers & Veterans Quality of life (58%), Relieving Hardship (25°h), Administration overheads 180/0) and preseNing our heritage dating back to 1642 19 /0). For relief of hardship. we provide a service for detecting and assessing welfare cases, aided by SSAFA. When we find someone in need, we provide the first tier of benevolence grants while we seek more substantial assistance from the larger setvice charilies or indeed the relevant local authority. In rare cases, where we fail to find external financial assistance, we will consider using our own funds as the charity of last resort. We are therefore proud that neaty all our budget is spent on our charilable aims and our administrative overheads are relatively low. Budget Allocation for year 2024125 Admin Overheads Relieving Hardship 25% 8° Preserving Heritage Improving Soldiers & Veterans Quality of Life 58U/o Our charity gives out financial support based on income generated froTn investments. Having reviewed our needs, we have been working io raise the profile and add £4M to this investment pot in order to secure the legacy for future generations of the Scots Guards famity. A few examples of our work are as follows.. Severely wounded veteran regains his mobility- wounded in action. Granls of severallhousand pounds have been provided to assist with home and car modifications for a Scots Guards Lance Sergeantwho lost both legs and an ami to a bomb in Afghanistan. Working with other military charilies which specialise in Ihis area, we have given several grants to assist him with mobility and to support his wrfe and Ihree children. For example, he received a modiffied fitness suite lo help him develop his muscles in order to walk on prosthetic limbs. Wounded Soldier receives lifesaving treatment whilst being evacuated by helicopter. Support to an estranged family. A grant of a £1000 was provided to support a family in need who moved into social housing at short notice which had minimal no ftjrniture. The charity worked alongside other military charities and provided household goods such as a Washing machine, Kettle, Fridge and carpets all needed for the family lo feel comfortable in their new home.
THE SCOTS GUARDS CHARITY SUPPORTING THE REGIMENT Cost of Living Crisis effect on our low income married soldiers. A Winter fuel Grant of £21,900 was awarded to Seventy low-income families of the Scots Guards to supplement the Government Grant of £400. Married soldiers have been suffering due to the increased fuel and energy burden placed on them by ever spiraling energy and at the highest rate of inflation in INing memory, for most. if not all. Medically Discharged Veteran. A Grant of £4,000 was awarded lo assist with replacing an old wheelchair. This Scots Guardsmen was on active duty in 1972 and was shot by lerrorisls, confining him to a wheelchair for over 52 years. The Scots Guards Charity agreed that a better, lighter and more maneuverable chair should be provided which will assist in maintaining a more active lifestyle for longer. Severely wounded veteran receives grant to repair much needed car adaptions and assist with purchasing a Tri ride. Separate granls of over £3,000 were awarded to assist a veleran injured from seNice in Afghanistan with repairing his specialty adapted car. and also to provide a Tri ride attachment which powers his wheelchair, as this will assist wilh quality time outdoors with his famiW for longer periods. I was able to say goodbye to my wfe with dignity. A grant towards funeral costs of a wife was made to a former Sergeant in the Scots Guards with 13 years, service. The sudden death of his wife and a lack of savings resulled in the former soldier being unable to meet the costs of his wife's funeral. The charity operates primarily by managing its investments and using the annual income to support beneficiaries. This income is augmented by subscriptions from serving members of the regiment and some charitable donations. en benevolence case occurs, the charity ahvays provides Ihe first tier of funding before seeking assistance, if necessary, from the larger specialist military charities, such as the Soldierfs Charity, and lastyear they provided with other military charities £115,502 to sixty-three members of the Scots Guards tsmity in need. We aim to grow our investments by £4M over the next 5 years for the Scots Guards Charity- Why. The Fund is concerned that given the current and ongoing military commitments, the Regiment won't have enough income to continue to support serving and former Scols Guardsmen and their families which, in our view, is of paramount importance. In the last year we made 63 individual welfare grants. Scots Guards rehearsing their shooting skills Our trustees lightly control allocation of available funds according to priority and even though we conserve resources by seeking extemal SoUrS of aid, there is normally a shortfall. As it stands today, we remain reliant upon the generosity of individuals through annual donalions lo avoid the Regiment having io cut its welfare or welfare-related spending of over £300k annualty. At the same time, demand forfunds is continualty increasing. driven by rent heightened military activity. higher survival rates after serious injury, a general increase in life expectancy and inflation. Unexpecled cosls, like providing legal defence to guardsrnen facing investigations arising from their operational service. stretch the funds available even further and can deplete the investment capital, exacerbating the undedying problem. As such, we are trying to boosl the funds under management to a level that is self- supporting- a committee is continuously reviewng what needs to be done, to achieve this goal.
THE SCOTS GUARDS CHARITY TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their report and financial stalements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting poliaes set out in note 1 to the financial statements and compty with the charity's articles of association, the Companies Act 2006, the Charities and Trustee Investment (Scolland) Act 2005, the Charities Accounls (Scotlandl Regulations 2006 (as amended) and "Accounting and Reporting by Chartties.. Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" {as amended for accounling periods commencing from 1 January 20191 Objectives and activities The charities objectives are to assist and provide relief to any serving or former serving officer, warrant officer, non- commissioned officer or guardsmen, whether male or female, of Ihe Regiment of Ihe Scots Guards, or in exceptional circumstances any person associated with the Regiment of the Scots Guards, and their dependents, including but not exclusively, their spouses, partners, wdows. widowers and parents (whether or not married) and children, parents or carers or similar persons who are in hardship or dislress or need, whether such need is financial or otherwise. The trustees confim Ihal Ihey have referred lo the guidance contained in Ihe Charity Commission General Guidance on Public Benefit when reviewing the funds, aims and objectives and planning future aclivilies and setting granl making policies. Financial review At the year*nd there was a total of fvnds of £7,895,892 with cash funds of £839,209 carried fONrd. During the year, it has received income of £331.847. We are grateful for some substantial donations this year, such as a bequest from the estate of lan Slanley Fraser, grants have rwed from the Clothwothers Foundation, Scott (Eridine) Trust and John Scott charttable trust. Afler charitable donations and support cosls, total expendilure was £449,932. The net movement in funds was a negative £78,823 The charity's investments are managed by Ruffer LLP and Aubrey Capital Management. The investmenls strategy is to prolecl the investmenl assets whilst providing a growing income stream for the chartty over the medium term. During the year the market value of the investments held increased by £39.262. Reserve Policy The charity aims to hold nel current assets, or cash reserves, equivalenl to at least 6 months operating costs plus £100,000 legal and conflict reserve. reflecting the uncertainties inherent to the regiment and the Armed Forces, which is approximatety £324,935. At the year end the 'free reserves, stood al £1,039,875. Fixed asset investments default as designated funds to generate an income retum in the longer term and are actively managed by the Irustees al each board meeting in response to Ihe demands on the charity- Structure, governance, and management The charity is a company limited by guarantee. It is affiliated to the Confederation of Service Charities which requires a bi-annual report on compliance with govemance best practice. tested against their comprehensive reviewtemplate. The overarching body responsible for efficient rnanagement ofthe charity are the ttustees. New trustees are recruited from serving or retired members of the regiment or from supporters with relevant qualificalions. Candidates a chosen because they a seen lo have skills and experience which complement or reinforce those of existing trustees. Aspiring trustees should serve on one of the sub-committees beforejoining the main board. The Trustees meet three times a year when policy conmIng the charity is discussed and decisions made.
THE SCOTS GUARDS CHARITY TRUSTEES, REPORT (INCLUDING DIRECTORS REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who are also the directors forthe purpose of company law, and who served during the period and up lo the date of signature of Ihe financial statements were.. Brigadier {retiredl G H F S Nickerson Colonel J D L Leask MBE The Rt Hon Sir lain Duncan Smith PC MP Lieutenant Colonel N A Mcclelland MBE Mrs L Hobbs Captain Iretiredl M Joynson Captain (retired) P D Vail AD Dalrymple (appointed 4 February 2025) The twstees are supported by the office holders (the Regimenlal Adjutant and the Regimental Welfare and Finance Officer) from the regislered office in London and from the office at Ihe Castle in Edinburgh. Review of activities The results of the funds. activities are shown on page 12. The activities of the charity's investments are shown within these financial slatemenls. During the year funds of £1,114.75 were raised under the initiative known as The Colonel's Fund. This fvnd will enable the regiment to provide.. Support lo the families of those killed in action by promptly responding to problems of bereavement and hardship, Support Ihose wounded or injured on operations, assist in finding them new employment and to he members, Support the families of Ihose seriously wounded or injured in prolonged recovery situations. rticularly those who have had to leave the Amiy,. to p them become acttve famity and community The aclivilies of the charity during the year are detailed in the Supporting the Regiment section of these accounts. Amalgamation With the London Scottish Regiment During the last reorganization of the Army, the Scots Guards took command of A {London Scottish) Company of the London Regiment who have been renamed G (Messines) Company Scots Guards. The regimental family of the former London Scottish Regiment are beneficiaries of a series of charities within a scheme, including Ihe London Scottish Headquarters Trust vthich owns London Scottish House. The Scols Guards Charity has been continuing io work for a second year with the Truslees of the various London Scottish charities. The Ministry of Defence has ceased to occupy London Scottish House as a reservist barracks and an ambitious plan to diversify ils use had run into financial difficullies under their previous trustees. The Scots Guards Charity provided a loan to the London Scottish Headquarters Trust, which is repayable on demand but is intended to buy time to identify whether the building can be made financialty viable. A loan agreement and a restriction has been entered on the litle of Ihe property. and a charge has been raised over the property. Meanwhile, the Trustees of the London Scottish Headquarters Trust exercised their discretion to declare the Scots Guards aslhe successor unittolhe London Scottish Regiment, meaning Ihatlhe Regiment has become the main beneficiary of that Trust. Discussions are continuing over streamlining the other London Scottish charities and closer cooperation with the Scots Guards Charity including the options for a merger.
TRUSTEES, REPORT (INCLUDING DIRECTORS REPORT) FOR THE YEAR ENDED 31 MARCH 2025 PreseNing Regimentsl Heritage The charity owns and preserves a collection of regimental heritage accumulated since the Regiment's formation in 1642, which is managed by a committee of volunteers. This includes the hislorical archive which is regulated and inspected by the National Archive. An arrangement with FindMyPast has enabled the public to access many of the regimental records online and many other items of historical interest are displayed in the Guards Museum. Plans for Future Periods The exposure ofthe charity increasing due to the large numberofoperational tours in recent decades. Sadly, these have resulted in some grievous physical injuries causing immediately visible needs. Psychological injuries may take longer to materialise and since operations are continuing, the pressure on ourfunds is steadily increasing. The Charity is also tracking the rapidw developing cost of living crisis which may cause hardship for the tsmilies, serving personnel and veterans. The charity has strengthened its struclure wilh a fund-raising committee working alongside the investmenl commitlee to altracl donalions to augment the investment income. Our campaign to improve the culture of charitable giving among our potents'al beneficiaries continues to show strong results wth a significant increase in self-motivated fund-raising activities including a ski inserlion lo a remote Greenland location before establishing a base camp to then attempt to summit several previousty unclimbed peaks. To support this and other aclivities. the charity is in a major effort lo modemize ils infomation technology to enhance outreach, harness support and manage donations. The review of investment policy and the initiative to raise fvnds by charitable donations is likety to become a continuous cycle. Risk Management The trustees have regard for the principal areas of the Charity's operations and the major risks which may arise in these areas. In their opinion, the charity has established resour$ and review syslems which, under nomial conditions, should allow the risks identified by them to be mitigated to an acceptable level in its day-to4ay operations. The trustees have assessed the major risks to which the charity is exposed, those related lo Ihe operations and finances of the Charity and are satisfied those systems are in place to mitigate our exposure to the major risks. The charity relies partly on its investment retums to meet its financial commitments. therefore one of Ihe principal risks lies in the perf0mlan of its investments. The trustees have mitigated this by the appointment of professional investmenl managers lo advise them, by having a balanced investment strategy, having a diversified portfolio and by ensuring that the portfolio is sufficientty liquid to meet obligations in the event of a down-lurn in financial markets andlor default. V*lretiredl Nickerson INOV 12. 2025. Brigadier (retired) G H F S Nickerson Trustee 12 Nov 2025 Dated..
THE SCOTS GUARDS CHARITY TRUSTEES. DECLARATION ON UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 In relation lo the financial statements which comprise the statement of finanaal aclivities, the balance sheet and the related notes.. The trustees approve these financial statements and confirm thal they are responsible for Ihem, including selecting the appropriate accounting policies, apptying them consistently and making, on a reasonable and prudent basis, the judgmenls undertying them. They have been prepared on the going concem basis on the grounds that the charity will continue in operation. The trustees confimi that they have made available to Alliotts LLP, all the charity's accounting records and provided all the infomation necessary for the compilation of the financial slalemenls. The trustees confirm that to the best of their knowledge and belief. the accounting records reflect all Iransaclions of the charity for the year ended 31 March 2025. On behalf of the board .91118.l.Nr5oll (Nov 12 2025. Brigadier Iretiredl G H F S Nickerson Trustee 12 Nov 2025
THE SCOTS GUARDS CHARITY STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who are also the directors of The Scots Guards Charity for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial slatements. the trustees are required to= select suitable accounting poliues and then appty them consistenty- observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounling Standards have been followed. subje¢X to any malerial departures disclosed and explained in the financial statements,. and prepare the financial statements on the going cOnM basis unless ti is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate acrounting records that disdose with reasonable accuracy at any time Ihe financial position of Ihe charity and enable them to ensure that the financial ststements comply with the Companies Acl 2006, the Charities and Trustee Investmenl (Scolland) Act 2005 and Ihe Charilies Accounts (Scotland) Regulations 2006 (as amendedl- They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Company law requires the trustees lo prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming reSoUrS and application of reSoUrs, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to= select suitable accounling policies and then appty them consistenliy- observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed. subjed to any material departures disclosed and explained in the financial statements.. and prepare the financial stalements on the going cOnM basis unless tl is inappropriate to presume thal the charity will continue in operation. The trustees are responsible for keeping adequate aountIng records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assels of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other IegUlatIeS.
THE SCOTS GUARDS CHARITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE SCOTS GUARDS CHARITY Opinion We have audited the financial statements of The Scots Guards Charity (the 'charity') for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet and the notes lo the financial slatemenls, including a summary of signtfjcant accounting policies. The financial reporting framework Ihal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {Uniled Kingdom Generally Accepted Accounting Practs'ce). In our opinion, the financial statements= give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources. for the year then ended., have been properly prepared in accordan wth United lfj'ngdom Generally Accepted Accounting Practice: and have been prepared in accordan with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Audtb'ng (UK) {ISAs {UKI} and applicable law. Our responsibilities under Ihose standards are fvrlher described in Ihe Auditoffs responsibilities for the audit ol the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slatements, we have concluded that the trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other inforniation The other information comprises the information included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the olher infomialion contsined wilhin the annual report. Our opinion on the financial stalements does not cover the olher information and we do not express any fom of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether Ihe other infomialion is malerially inconsistent with the financial slatements or our knowledge obtained in the course of the audit, or otherwise appears to be materialty misslated. If we identify such material inconsistencies or apparent malerial misstatemenls, we are required lo detemiine vthelher this gives rise lo a material misslatemenl in the financial statements themselves. If, based on the work we have perfom)ed. we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nolhing lo report in respect of the followng matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees. reporl,. or sufficient accounting records have not been kept- or the financial stalemenls are nol in agement wtlh the accounting records.. or we have not reiVed all the infomiab'on and explanations w require for our audit.
THE SCOTS GUARDS CHARITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE SCOTS GUARDS CHARITY Responsibililies of trustees As explained more fijlty in the statement of trustees. resFM)nsibilities. the trustees. who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the )Inancial ststements and for being satisfied thal they give a true and fair view, and for such intemal control as the Iruslees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concem. disclosing, as applicable. rnatters related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operalions, or have no realistic altemalive but to do so. Auditorfs responsibilities for the audit of the financial stalements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are lo oblain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance bul is nol a guarantee that an audit conducted in accordance with ISAS (UK) will always delecl a material misslatement when it exists. Misslatemenls 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 ofthese finanaal stalements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, oullined above, to detect material rnisstalemenls in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, induding fraud, is detailed below. Extent to which the audit was considered capable of detecting irregularities. including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularilies, including fraud and non<ompliance with laws and regulations, was as follows= Ihe engagement partner ensured thal the engagement leam collectivety had the appropriale compelence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulalions applicable lo the charitable company through discussions with Trustees and other management, and from our knoedge and experience of the sector., we focused on speufic laws and regulalions which we considered may have a direct material effect on the financial slatements or the operations of the charitable company. including the Companies Act 2006, the Charities Act 2011, the Chartties SORP, the Charities and Trustee Investment {Scotland) Act 2005 and 8 of Ihe Charities Accounts (Scotlandl Regulations 2006, taxation legislalion, data proteclion, anti-bribery, employment, environmental and health and safety legislation.. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence- and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instsnces of non-compliance throughout the audit. We assessed the suscepb'bility of the charitable company's financial statements to material misstatement, including obtaining an underslanding of how fraud might occur. by.. making enquiries of management as to where they considered there was SusptibIlity to fraud, their knowledge of actual, suspecled and alleged fraud- and considering ihe inlemal controls in place to mtligale risks of fraud and non-compliance with laws and regulations. 10-
THE SCOTS GUARDS CHARITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE SCOTS GUARDS CHARITY Audit response to risks identrfied To address the risk of fraud through management bias and override of controls, we.. perfomied analytical procedures lo identify any unusual or unexpected relationships- reviewed all transactions listed., assessed whether judgements and assumptions made in detemiining the accounting estimates were indicative of polenlial bias- and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-complian with laws and regulations. we designed ProdureS which included, but were nol limited to.. agreeing financial stalemenl disclosures to undertying supporting documentalion- and enquiring of management as to actual and potenkn.al litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less like it is that we would become aware of non-compliance. Auditing standards also limit Ihe audit procedures required to idenlify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence. if any. Material misslatements that arise due to fraud can be harder to detect than those that arise from error as they may invobje deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This description fOS part of our auditorfs report. Use of our report This report is made solely to the charity's trustees, as a body. in accordance with Part 4 of the Charities (Accounls and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's tnjstees those matters we are required to state to them in an auditor's report and for no other putpose. To the fullesl extent permitted by law, we do not accept or assume responsibilty to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, orfor the opinions we have fomied. All,- AIIIoiis LLP (Nov 12, 2025. 1'34pml Alliotts LLP 12 Nov 2025 Chartered Accounlants Statutory Auditor Manfield House 1 Southampton Street London WC2R OLR Alliotts LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appoinlment as auditor of a company under section 1212 ofthe Companies Act 201. 11
THE SCOTS GUARDS CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Restricted funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Notes Income from: Donations and legacies Charitable activities Other trading activities Investments 238.401 33,430 14.010 46,006 238,401 33.430 14.010 46.OC 204.645 41.146 6.593 49,145 204,645 41,146 6,593 49,145 Total income 331,847 331,847 301,529 301,529 Expenditure on: Raising funds Charitable activities other expenditure 7.062 442.870 7,062 442,870 63,852 349,207 15,000 63,852 349,207 15,000 13 Total expenditure 449.932 449,932 428.059 428,059 Net gainslllossesl on investments 14 39,262 39.262 296.696 296,696 Net incomel(expenditure) and movement in funds (78.823) (78.8231 170.166 170,166 Reconciliation of funds: Fund balances at 1 April 2024 7.972,701 2.014 7.974.715 7,802.535 2,014 7,804,549 Fund balances at 31 March 2025 7.893,878 2.014 7.895.892 7.972.701 2,014 7.974,715 The statement of finanaal activitie5 includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 12-
THE SCOTS GUARDS CHARITY BALANCE SHEET ASAT31 MARCH 2025 2025 2024 Notes Fixed assets Intangible assets Tangible assets Investments 17 18 19 1.536 52.423 6.800,044 2,496 52,423 6.752,966 6.854.003 6.807.885 Current assets Stocks Debtors Cash at bank and in hand 20 21 13.240 200.000 839.209 13,487 200,000 968,175 1.052.449 1,181,662 Creditors: amounts falling due within one year 22 (10,560) {14,832) Net Current assets 1,041,889 1,166,830 Total assets less current liabilities 7,895,892 7,974,715 The funds of the charity Restricted income fiJnds Unreslricted funds 2.014 7.893.878 2,014 7.972,701 7.895.892 7.974,715 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, forlhe year ended 31 March 2025. The directors acknowledge their responsibilities for compIng with the requirements of the Companies Act 2006 with respect lo accounling records and the preparation of financial stalements. The members have not required Ihe company to obtain an audit of its finanual statements under the requirements of the Companies Act 2006, for the year in question in aCrdance with section 476. These financial statements have been prepared in accordance th the provisions applicable to companies subject to the small companies regime. 12 Nov 2025 The financial statements were approved by the trustees on ......................... Irèir¥dl'Nf¢R¥rson INOV 12. 2025 nga Trustee Company registration number 10596645 (England and Wales) 13-
THE SCOTS GUARDS CHARITY BALANCE SHEET (CONTINUED) ASAT31 MARCH 2025 Critical accounting estimates and judgements In the application of the charty's accounting polioes, the truslees are required to make judgements, estimates and assumptions aboul Ihe carying amount of assets and liabilities that are nol readily apparent from other sources. The estimates and assoaated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these eslimates. The estimates and undertying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is ViSed where Ihe revision affects onty that period, or in the period of the revision and future periods where the revision affects both cuent and future periods. Accounting policies Charity information The Scols Guards Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is Regimental Headquarters Scots Guards. Wellington BaaCks, Birdcage Walk, London, SW1E 6HQ. 2.1 Accounting convention The financial slatemenls have been p pared in accordance wth the charity's Igoveming documentl. the Companies Act 2006, the Charities and Trustee Investment (Scotlandl Act 2005, the Charities Accounts (Scotland) Regulations 20 (as amended) and "Accounling and Reporting by Charilies.. Slatemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20191" The charity is a Public Benefit Enlity as defined by FRS 102. The charity has tsken advantage of the provisions in the SORP for charities not to prepare a Ststement of Cash Flows. The financial statements are prepared in sterling. which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial inslwments at fair value. The principal accounting policies adopted are set out below. 2.2 Going concem At the time of approving the financial statements. the trustees have considered their position and have a reasonable expectalion thal the charity has adequate resources to conlinue in operational existence for Ihe foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 2.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtheran of their charitable objeclives. 2.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably, and it is probable that income will be received. Cash donalions are recognised on reipt. other donations are recognised once the charity has been notified of the donalion, unless perfomiance condilions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 14-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution. the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent assel. 2.5 Expenditure Expendilure is recognised once there is a legal or constructive obligalion to transfer economic benefit lo a third paty, it is probable that a transfer of economic benefits wll be required in settlement, and the amount of the obligation can be measured reliabty- Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attribulable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support cosls which are not attributable to a single activity are apportioned betsveen those activities on a basis consistent wth the use of resources. Central staff costs are allocated on the basis of time spenl, and depreciation charges are allocated on the portion of the asseys use. 2.6 Inlangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impaiment losses. Intangible assets acquired on business combinations are recognised separately trom goodwill at the acquisition date where il is probable that the expected future economic beneffls thal are attributable to the asset will tlow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights- and the inlangible asset is separable from the entity- Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Information system over 5 years 2.7 Tangible fixed assets Tangible fixed assets a initially measured at cost and subsequenlty measured al cost or valuation. net of depreciation and any impairment losses. Depreciation is recognised so as to wiite off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Fixtures and fittings Chattels over 4 years not depreciated The gain or loss arising on the disposal of an asset is detemiined as the difference belween the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial aclivities. 2.8 Fixed asset investments Fixed asset investments are initially measured at Iransaction pri excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel{expenditure) for the year. Transaction costs are expensed as incuffed. 2.9 Impairment of fixed assets At each reporting end date, the charity reviews the carying amounts of its tangible and intangible assets to detemine whelher the is any indicalion Ihat those assets have suffered an impaimient loss. If any such indication exists. the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 15-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 2.10 Stocks stocks are slated at the lower of cost and eslimaled selling price less costs lo complete and sell. Cost comprises direct malerials and, where applicable. direct labour costs and Ihose overheads thal have been incurred in bringing the stocks to their present location and condits'on. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cosL Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 2.11 Cash and cash equivalents Cash and cash equivalenls include cash in hand. deposits held al call with banks, other short-tem liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 2.12 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its finanaal instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention lo settle on a net basis or to realise the asset and settle the liability simullaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including iransaclion costs and are subsequentty carried at amortised cosl using the effeclive interest method unless the arrangement constitutes a financing transaction. where the transaction is measured at Ihe psent value of the future ceIptS discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised al transaction price unless the arrangemenl constitutes a finanung transaction. where the debl instrument is measured at Ihe present value of the future payments discounted at a market rate of interest. Financial liabilities dassified as payable within one year are not amortised. Debt instruments are subsequently carried at amorbsed cost. using the effective interest rate method. Trade creditors are obligations to pay for goods or ServIS that have been acquired in the ordinary course of operalions from suppliers. Amounts payable are classiffied as current liabililies if paymenl is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequendy measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 2.13 Employee benefits The charity has no employees but pays honoraria at the discrets'on of the trustees. 16-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 2.14 Retirement benefits Payments to defined contribution relirement benefit schemes are charged as an expense as they fall due. 2.15 Leases Rentals payable under operating leases. including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. Income from donations and legacies Unrestricted funds 2025 Unrestricted funds 2024 Donations and gifls Grants 204,463 33,938 166,629 38.016 238,401 204,645 Income from charitable activities Unrestricted funds 2025 Unrestricted funds 2024 Charitsble activities Sale of goods 33,430 41.146 Income from other trading activities Unrestricted Unrestricted funds funds 2025 2024 Shop income 14,010 6,593 17-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Investments Unrestricted Unrestricted funds funds 2025 2024 Investment income Interest receivable 14,878 31,128 38.925 10,220 46,006 49,145 Raising funds Unrestricted Unreslricled funds funds 2025 2024 Fundraisin and ublici Other fundraising costs 18.034 Investmenl managers, fees 7.062 45,818 7.062 63,852 18-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Expenditure on charitable activities Grants payable 2025 Grants payable 2024 Direct costs Depreciation and impaiment Charitable expenditure 960 179.079 960 110,791 180.039 111.751 Granl funding of activilies and donations (see note 10) 98.345 85,179 Share of support and govemance costs (see note 9) Support Governance 148,814 15,672 140,409 11,868 442,870 349,207 Analysis by fund Unrestricted funds 442,870 349,207 19-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Support costs Support Govemance costs costs 2025 Support Governance costs costs 2024 Honorarium Archives Magazine, Diary and Christmas cards Poslage Flowers and wreaths Fees and insurance Events and Gifts Travel costs Regimental stock Regimental Headquarters costs IT Improvement costs 48.389 10.652 48,389 10,652 45.617 5,419 45,617 5,419 20.267 7,865 448 15,765 3.490 853 15.805 20,267 7,865 448 15,765 3,490 853 15,805 17.914 7,291 978 15,069 13,688 1,419 17.809 17.914 7,291 978 15,069 13.688 1,419 17.809 12.614 12.666 12,614 12,666 15.205 15,205 Audit fees- current year Audit fees- prior year under accrual 9.975 9,975 9,500 9,500 5.697 5,697 2,368 2,368 148.814 15.672 164,486 140,409 11,868 152,277 Analysed between Charitable activities 148,814 15,672 164,486 140,409 11,868 152,277 Governance costs includes payments to the auditors of £15,672 (2024 - £11,868) for audit fees. 10 Grants payable Grants payable 2025 Grants payable 2024 Granls to institutions= Clothworke¢s Grant- Awarded to 1 st Battalion & 'F' cornpany Scot5 Guards Regiment Scots Guards Regiment- Command officer. 'F' & 'K' companies and Band Grants 28,300 36,550 28,000 16,050 64.850 44.050 Grants to individuals 33.495 41.129 98,345 85,179 -20-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 11 Net movement in funds 2025 2024 The net movement in funds is ststed after chargingl{crediting)'. Fees payable for the audit of the charitys financial statements Loss on disposal of tangible fixed assets Amortisation of intangible assets 15,672 11,868 15,000 960 960 12 Trustees None of the trustees (or any connected persons with them) reiVed any remuneration or benefits from the charity during the year except for £447 (2024.. £2921 being paid on behalf of trustees for subsistence. 13 Other expenditure Unrestricted Unrestricted funds funds 2025 2024 Net loss on disposal of tangible fixed assets 15,000 14 Gains and losses on investments Unreslri¢ted Unrestricted funds funds 2025 2024 Gainsl(losses) arising on.. Revaluation of investments Sale of investments 14.266 24,996 262,976 33,720 39,262 296,696 15 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charilable objects. 16 Honoraria There were 2 individuals in receipt of honoraria payments 2025 Number 2024 Number 21
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 16 Honoraria (Continued) Honoraria costs 2025 2024 Honoraria Pension 46,237 2.152 44,704 913 48,389 45,617 There was no individual whose annual remuneration was more than £60,000. 17 Intangible fixed assets Infomiation ¥ystgm Cost At 1 April 2024 and 31 March 2025 4,800 Amortisalion and impaimlent At 1 April 2024 Amortisalion charged for the year 2,304 960 At 31 March 2025 3,264 Carrying amount At 31 March 2025 1,536 At 31 March 2024 2,496 -22-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 18 Tangible fixed assets Fixtures and ffttlngs Chattels Total Cost or valuation At 1 April 2024 21,587 52,423 74,010 At 31 March 2025 21,587 52,423 74,010 Depreciation and impairment At 1 April 2024 21.587 21.587 At 31 March 2025 21.587 21,587 Carrying amount At 31 March 2025 52,423 52,423 At 31 March 2024 52,423 52,423 19 Fixed asset inveslments Listed investments Cash in portfolio Total Cost or valuation At 1 April 2024 Additions Valuation changes Dividends (reinvested) Fees Disposals 6,746,190 151.158 39.262 6,776 6,752,966 151,158 588,156 14.878 17,0621 (700.0521 548,894 14,878 (7,062) (700.052} At 31 March 2025 6.236,558 563,486 6.800.044 Carrying amount At 31 March 2025 6,236,558 563,486 6,800,044 At 31 March 2024 6,746,190 6,776 6,752,966 20 Stocks 2025 2024 Raw materials and consumables 13,240 13,487 -23-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Debtors 2025 2024 Amounts falling due within one year. Other debtors 200,000 200,000 The debtor balance relates to a balance repayable on demand for which there is a legal charge over the debtorfs property. 22 Creditors: amounts falling due within one year 2025 2024 Other taxalion and social security Other creditors Accruals and deferred income 1,612 2,241 10,979 10,560 10,560 14,832 23 Retirement benefit schemes 2025 2024 Defined contribution schemes Charge to the Statement of Financial Activities in respect of defined contribution schemes 2,152 913 The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separalely from those oflhe charity in an independently adminislered fund. Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for speafic purposes. At 1 April 2024 Incoming resources Resources expended Transfers Gains and At 31 March losses 2025 Investment Fund General funds 6,752,966 1,219.735 47.078 (47.0781 6,800,044 1.093,834 331,847 (449,932) 39,262 7,972.701 331,847 (449,9321 39,262 7.893.878 -24-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 24 Unrestricted funds (Continued) Previous year: At 1 April 2023 Incorning resources Resources expended Transfers Gains and At 31 March losses 2024 Investment Fund General fijnds 7,263,165 539.370 (510,1991 510.199 6,752,966 1,219,735 301,529 (428,059) 296,696 7,802.535 301,529 (428,059) 296,696 7,972,701 The Investment Fund represents the fixed asset investments of the charity which are managed with the aim to generate an income relum to support the charity in the longer temi. whilsl at the same lime protecting ihe underlying investment base. 25 Anatysis of net assets between funds Unrestricted funds 2025 Restricted funds 2025 Total 2025 At 31 March 2025-. Intangible fixed assets Tangible assels Investments Current assetsl{liabilities) 1.536 52.423 6,800,044 1.039.875 1,536 52,423 6,800,044 1.041,889 2,014 7.893.878 2,014 7.895,892 Unrestricted funds 2024 Restricted funds 2024 Total 2024 At 31 March 2024: Intangible fixed assets Tangible assels Investments Current assetsl{liabilities) 2.496 52.423 6.752,966 1,164,816 2,496 52,423 6.752.966 1,166,830 2,014 7,972,701 2,014 7,974,715 -25-
THE SCOTS GUARDS CHARITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 26 Operating lease commilments Lessee At the reporting end date the charity had outstanding commitments for future rninimurn lease payments under nOn-CanlIable operating leases, which fall due as follows.. 2025 2024 Within one year Between and five years 9,650 226 9,650 938 9,876 10,588 27 Related party transactions There were no disclosable related party transactions during the year. other than the grants to the Regiment, which are disclosed in these accounts. -26-