Charity registration number 1203615 IEngland and Wales) Company registration number 14647091 THE PHAROS FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 THE PHAROS FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Trustees Professor D S H Abulafia Professor Nigel Biggar N Record G E S Robinson Secretary DrPSNash Charty number (England and Wales} 1203615 Company number 14647091 Rggl$ter&d offl¢g cjo Farrer & Co 66 Lincoln's Inn Fields London WC2A3LH Audltor Gravita Audit Oxford LLP First Floor, Park Central 4041 Park End Street OxFord OX1 1JD THE PHAROS FOUNDATION CONTENTS Page Trustees Report report Stslemenl of Trustees report responsibilities Independent auditorfs report Statement of financial activities Balance sheet Stslemenl of cash flows Notes lo the financial statements THE PHAROS FOUNDATION TRUSTEES REPORT REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2025 Reference andAdministrative Inforniation Charity Name.. The Pharos Foundation Incorporatlon Date.. 8th February 2023 Flnan¢lal Pgrlod.. 1 st April 2024 to 31 st March 2025 Charty Registration Number: 1203615 Company Registration Number.. 14647091 Principal Office". Boxall Buildings, 1 &14 Broad Street, Oxford, OX13AS Rogl$ter&d Offlco.. First Floor, 10 Queen Street Place, London, United Kingdom, EC4R 1BE Trustees- George Edward Silvanus Robinson18ppointed 18th March 2024} Neil Record lappoinled 19th June 20231 Professor David Samuel Harvard Abulafia CBE lappoinled 19th June 20231 Professor Nigel John Biggar CBE lappoinled 19th June 20231 Senior Management Team: Patrick Nash, CEOISecretary Professor David Samuel Harvard Abulafia CBE, Director Professor Nigel John Biggar CBE, Director Neil Record, Director Audltors: Gravits Audit Oxford LLP First Floor. Park Central, 40- 41 Park End Street, Oxford, OX1 1JD The TrLJStees are pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 March 2025 which are prepared to meet the requirements for a directors, report and accounts for Companies House. The financial statements have ken prepared in accordance with the accounting policies set out In note 1 to the financial statements and comply with the charitsble company's Memorandum and Articles of A550ciation, thè Companies Act 2006 and "Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. Objectlves and actlvltles The purpose of the charity is the advancement of education for the public benefit, with a focus on arts, humanities, and social sCien￿s. Operating throughout England and Wales, the charity helps the general public by providing education and training, making grants to individuals and organisalions, offering advocacy, advice, and informats"on, and sponsoring or undertaking research. We achieve this by awarding research grants to cover research scholarshipslfellowships, maintenance allowances, research expenses, and the promotion of reseaichlfindings for the public benefit", and we produce a high-qualily programme of free public education for students, academics and the general publi¢, the recordings of which are subsequently uploaded online for the benefit of the national and global public. THE PHAROS FOUNDATION TRUSTEES REPORT REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Our strategy for our second year has been lo continue to focus on excellent researchlprojecls in the artsl humanitieslsocial sciences. Vve are now funding 9 mulliyear-posldocloral research fellowships, 3 new one-off book grants, and around 50 public lèctureslsalons throughout the academic yèar. Vve plan lo expand again over subsequent years by adding additional cohorts of postdoctoral fellows, book grants and lectures. We also aim lo expand our Core team by hiring adminislrativelevenls support during the 2025-6 academic year. Achlevements and perfom)ance The Pharos Foundation has produced a high-quality programme of free PLJblic lectures and other educational evenls which speaks for itself and is freely available online IPharos Lectures YouTubel. Our YouTube channel has grown to over 10,000 subscribers and ticket reservations often exceed 1500 for our larger events. Audience composition continues to be a diverse cross-seclion of students, academic5 and members of the general public. Thanks lo our posldocloral fellowship awards, our first cohort of Research Fellows are now halfway through their mulli-year research projects and have begun lo publish some ol their articleslchaplerslbooks via reputable university presses and publishing houses. This is lo the benefit of their a¢ademi¢ careers, the a¢ademi¢ reputation of Pharos. and the advancement of knowledge in each of their fields of expertise. In the year ahead we will continue lo promote their work and findings online and via our public education programme, and support our second cohort of postdoctoral fellows as they enter their second year with us. Our first book grants are already coming to fruition with Pharos scholars, publications appearing via Allen Lane and other prestigious presses, which further demonstrates our ability to Identify and support superb intellectual talent at every career stage within and outside the universities. Financial review Overview of the Year The second financial year of the charity has proven lo be another period of strong perfomiance, exceeding expectslions and building upon the success of the initial 13 month period. The charity achieved a significant increase in both income and net assets, strengthening ils financial resilience through the growth of both reslri¢ted and unrestricted reserves. Income and Expenditure During the year ending 31 March 2025, totsl income increased ID £1,436,252 12024.. £866,596), with donations conlribuling £1,434,357, and a further £1,895 received in interest income. This increase in donations reflects the charity's growng supporter base and fundraising success. Total expenditure rose to £1,185,251 12024". £622,7571, primarily driven by the continued expansion of charitable aclivilies, lectures and events whi¢h accounted for £1.153.493 of the lolal spend. The remaining £31.758 was attributed to the associated costs of raising funds. Despite this increased activity the charity delivered a net income of £251,001 12024.. £243,839) split be￿een unrestricted1£76,2301 and restricted1£174,7711 funds. Ststement of Financial Position At the balance sheet dale, the charty held nel assets of £494,839 12024.. £243,8391. Current assets comprised £546,326 In cash, with £51,487 in current liabilities. This signific8nl increase in cash reserves reflects prudent financial management and growing fundraising capacity. Of the year end reserves £335,838 12024.. £186,955) were reslricled, and £159.001 12024.. £56.8841 were unrestricted. These figures demonstrate the Charity's ability to grow its unrestricted funding base while continuing lo attract substantial support for specific programme work. Reserves Pollcy and Po$ltlon The management committee has reviewed the reserves policy considering the organisations operational needs and risk profile. In accordance with the policy, unrestricted reserves not already earmarked for designated purposes are targeted lo be maintained al a level equivalent lo 3 10 5 months of expenditure, lo ensure Continuty of operatlDns in thè event of a significant drop in funding. Based on projected 2025126 expenditure of £1,733,000 the targeted range for general reserves is between £433.250 and £722,083. As of year end, general unrestricted reserves stood al £371,326, slightly below the lower end of the target range. However, management is confident that confirmed unrestricted funding al the start of the new financial year will allow the charity to reach this tsrgel within the first quarter of 2025126. THE PHAROS FOUNDATION TRUSTEES REPORT REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Future Plans The charity remains ¢ommitted to sustaining and expanding ils progiamme of activities in line with ils mission. Future plans include pursuing additional grant funding, launching new fellowship programmes, and scaling event promotion. Furthermore, efforts are underway lo diversify revenue streams, such as through the introduction of streamlined online donation tools and enhan￿d donor engagement via the Charity's website and events. The management committee is confident in the organisations ability lo sustain its current operations and pursue strategic growth opportunities, underpinned by continued strong financial perfomiance and oversight. structure, governance and management The charity is run day-t&day by the delegated authority of the CEOIFounding Director, wlh practical assistance and specialised advice from both the DepulylResearch Director and the Finance Director. This includes all logistical, financial and personnel matters. The CEO is accountable lo the Board of TrusleeslDire¢tors for all decisions and must consult them on all potential major or ongoing financial commitments and report lo them quartedy on the charity's progress. The Chairman is the final intemal point of reference for any internal staff disputes, and all decisions affecting the charity's composition le.g. admitting a new trustee) are taken by majority board vote. The Board is responsible for setting paylremuneralion standards and the benchmarks used for setting the management's pay included comparable educational charities SLJch as standard smalllmid-sized think-tsnks, development directors. and other private research institutions across the English-speaking world. Any new trustees are selected on the basis of their proven commitment to the charity's aims., relevant and distinguished experience.. and Commitment to the charity's a¢livilies. All current members are experienced trustees, however an induction from the board allows them to be properly embedded into the organisation and ensure internal govemance remains consistent. The charity is not part of any wder netr￿ork or umbrella group. Any arrangements ¥Mth any other charitable groups or businesses are done on a case by case basis, considering the overall impact on the charity and ils overall objectives. The charity operates under a Memorandum and Articles of Association, initially incorporated on February 8, 2023, and later amended by a special resolution registered al Companies House on June 15, 2023. 11 is conslituled as a Charitable Private Limited Company by guarantee, wilhoul share capital, and uses the 'Limiled' exemption. Trustees are selected through a unanimous vol& by the existing tiuslees, in consullalion with the leadership team, based on their relèvance and demonstrated commitment lo the Foundation's charitable objectives. Auditor In accordance with the company's articles, a resolution proposing that Gravita AudV( Oxford LLP be reappointed as auditor of the company will be pul al a General Meeting. The Trustees report report was approved by the Board ofTruslees. Ni 8151 Professor Nigel Biggar 1310812025 Date.. THE PHAROS FOUNDATION STATEMENT OF TRUSTEES REPORT RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The Iruslees, who are also the directors of The Pharos Foundation for the purpose of company law, are responsible for prèparing the Trustèes Report Report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pracli¢el. Company law requires the trustees lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charitable Company 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 stalemenls, the trustees are reqUI￿d lo". select suitable accounting policies and then apply them ¢onsistenlly', 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, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charitable company will continue in operatlon. The trustees are responsible for keeping adequate accounting records that disdose wth reasonable accuracy at any lime the financial position of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. THE PHAROS FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PHAROS FOUNDATION Opinion We have audited the financial slalements of The Pharos Foundation for the year ended 31 March 2025 which comprise the stslemenl of financial activities. the balance sheet. the slalement of cash flows and notes lo the financial ststemenls, including significant a¢counling policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting SlandaKI applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial slatemenls.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming ￿SoUrceS and application of ￿sourCes, for the year then ended," have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are ftjrther described in the Audilorts ￿SponsIbl1rfAes for the audit of the financial statements section of our report. We are independent of the charitable company in a¢¢ordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance ¥Mth these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slatemenls, we have concluded that the Trustees report 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 events or conditions that. individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilibes of the ttuslees wth respect lo going concern are described in the relevant sedions of this report. Other inforniation The other information comprises the information included in the annual report other than the financial slalements and our audilorfs report Ihereon. The Iruslees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomialion and we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent wth the financial statements or our kno￿edge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo dètermine whether thi5 gives rise lo a material misstalemenl in the financial statements themselves. If, based on the work we have performed, we con¢lud& that there is material misstslement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Matters on whlch are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 requires us to report lo you if, in our opinion.. the information given in the financial stslemenls is inconsislenl in any material respect wth the Trustees report report.. or sufficient accounting records have not been kept., or the financial slalements are not in agreement with the accounting records", or we have not received all the information and explanations we require for our audit. THE PHAROS FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE PHAROS FOUNDATION Re5ponsibilitie5 of trustees As explained more fully in the statement of Trustees report responsibilities, the trustees. who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal ¢ontrol as the trustees determine is necessary lo 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 charitable company's ability lo continue as a going COn￿rn, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or lo cease opeialions, or have no realistic attemalive but to do so. Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wth the Act and relevant regulations made or having effect there under. Our objectives are lo obtain reasonable assurance about whether the financial stslemenls as a whole are free from material misslalemenl, whether due to fraud or error, and to issue an auditor's report that in¢ludes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 slatemenls. Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, ouuined above, lo delecl material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of delecling Irregularf(ies, including fraud, is detailed below. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the company through discussion$ with directors and other management, and from our kno¥Medge and experience.. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company., we assessed the extent of Complian￿ with the laws and regulations identified above through making enquiries of management and inspecting legal Corresponden￿ where applicable., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the aLJdit. We assessed the susceptibility of the charity's financial slalements to maleiial missl8temenl, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as lo where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and considering the intemal controls in place to miligale risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomied analytical procedures to identify any unusual or unexpected relationships., lesled joumal entries lo identify unusual Iransaclions., assessed whether judgements and assumptions made in determining the accounting eslimales were indicative of potents.al bias", and investigated the rationale behind signrficant or unusual transactions. THE PHAROS FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE PHAROS FOUNDATION In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, bul were not limited to". agreeing financial ststement disclosures to underfying supporting documentation., reading the minutes of meetings of those charged with govemance., enquiring of management as to actual and potential litigation and daims,. reviewing relevant correspondence. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also Iimil the audit procedure5 required lo identify non