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 SoUr￿S 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 re￿nt 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 fON￿rd. 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 con￿mIng 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 .91￿￿1￿￿1￿8￿.l.N￿￿r5oll (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 cOn￿M 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 reSoUr￿S and application of reSoUr￿s, 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 cOn￿M basis unless tl is inappropriate to presume thal the charity will continue in operation. The trustees are responsible for keeping adequate a￿ountIng 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 I￿egUla￿tIeS. 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 ag￿ement wtlh the accounting records.. or we have not re￿iVed 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