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← Nuffield Trust For The Forces Of The Crown

2025-12-31-accounts

Registered Number: 210829

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FINANCIAL STATEMENTS

31 DECEMBER 2025

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

CONTENTS

Page
Report ofthe Trustees 1-6
Statement of Trustees’ Responsibilities 7
independent Auditors’ Report 8-11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
NotestotheFinancialStatements 15-24

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees

The Rt Hon Lord Arbuthnot of Edrom Vice Admiral Sir David Steel KBE DL (resigned 17th March 2026) Air Marshal Sir Baz North KCB OBE The Rt Hon Lord Geidt of Crobeg GCB GCVO OBE QSO John Chatfeitd-Roberts Lieutenant General Sir Tyrone Urch KBE Vice Admiral Sir Martin Connell KCB CBE (appointed 17th March 2026)

General! Secretary/Office of the Charity

Commander S E J David MBE RN (Rtd) Magdala Mill Lane Titchfield Hampshire PO15 5RD

Bankers

Barclays Bank, Cheltenham Branch, Cheltenham and North Cotswold Group, 128 High Street, Cheltenham, Gloucestershire GL50 1EL.

Auditors

Messrs Pitt Godden & Taylor LLP, Unit 3 Ambrose House, Meteor Court, Barnett Way, Barnwood, Gloucester, GL4 3GG

Solicitors

Messrs Herbert Maliam Gowers, Solicitors of Oxford, 126 High Street, OX1 4DG.

Investment Managers

BlackRock Investment Management (UK) Ltd, 12 Throgmorton Avenue, London EC2N 2DL

Jupiter Unit Trust Managers Ltd, PO Box 10666, Chelmsford, CM99 2BG

Eventode Investment Management Ltd, (Investment Fund Services Ltd), Marlborough House, 59 Chorley New Road, Boiton BL1 4QF.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

TRUSTEE REPORT AND FINANCIAL STATEMENTS

The Trustee Report and Financial Statements for the year 1st January 2025 to 31st December 2025 have been prepared in accordance with the guidelines published by the Charity Commission. These guidelines are contained in the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objective of the Trust is to promote the welfare and efficiency of the Forces of the Crown either by the provision of facilities for recreation or by any other means. The Trustees confirm that they comply with the duty in the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit when carrying out the Trust's objective and aims and in grant making policy and awards.

The Trust’s primary aim is to provide recreational and welfare amenities and facilities that are likely to be of lasting benefit to the Armed Forces but which are not provided by public funds and which are beyond the resources of other non-public funds. The Trust further aims to support units on operations and to benefit the maximum number of Service personnel whilst being mindful of the needs of smaller, less well-found sports associations and isolated units.

The Trust does not fundraise and, therefore, the Trustees aim for prudent stewardship of the Trust’s assets to achieve Lord Nuffield’s express wish that the Trust be maintained for such time as there is need. The Trustees judge that continuing restrictions on and shortfalls in the public funding of recreational facilities for the Armed Services mean that there wilt be a continuing, fong-term need to meet.

GRANT MAKING POLICY

Under a Memorandum of Understanding between the Trust and the three Armed Services, grant applications for non-public (charitable) funding are scrutinised by the Armed Services, who make the decision on which might be suitable for funding from the Services’ own charitable funds or by the Trust for the public benefit of promoting the welfare and effictency of the Forces of the Crown.

At their November meeting the Trustees make a funding allocation to the Armed Services for the forthcoming year. That allocation is then sub-divided and paid to the Royal Navy, Army and Royal Air Force on a proportional basis relative to the Regular and Operational Reserve personnel numbers in each Service.

Each of the Services then applies for Major Grants (£15,001 to £50,000) from within their allocation. These applications are considered at the March Trustee meeting where the Trustees are joined by the serving Principal Personnel Officers of the Royal Navy, Army and Royal Air Force who are best qualified to advise on the relative priority of the various applications received. Approved Major Grants are paid by the individual Services from within their allocation. The balance of each Service's allocation is available for Minor Grants (up to £15,000 or £30,000 for mini-buses} which can be approved and paid by the individual Services from their allocations subject to the grant criteria agreed between the Trust and the Armed Services.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

GRANT MAKING POLICY (Continued)

Over and above the annual allocations to the Armed Services, the Trustees are also willing to consider Capital Grants (over £50,000) for projects from any Service, subject only to the project's suitability and the availability of funds. The Trust also makes special grants as circumstances require and gives Operational Welfare Grants with the object of providing a quick and flexible response to meet the particular needs of those serving in the Regular or Reserve forces deployed in an emergency to areas of conflict or disaster.

Additionally, the Trust makes an allocation to The Ulysses Trust which then considers and approves grants for Reservists or Reserve formations undertaking adventurous activity.

Grants made and the annual allocations are one-off donations to the applicants, all of which are charities in their own right.

ACHIEVEMENTS AND PERFORMANCE

The Charity’s Trustees have had due regard to the Charity Commission's guidance on public benefit.

in 2024 the Trustees allocated £1,890,407 for grants to be paid out in 2025 (2024: £1,679,976) and £72,220 for administration (2024: £71,424).

Since 1939, grants paid out by the Trust for the direct benefit of those serving in the Armed Forces fofal some £76 million which would be valued at some £344 million at present day value.

Six Capital and Special Grants (to Halton Training Camp, RAF Benson. RAF Waddington, the RAF Cosford Microlight Club, the Boleh Trust, Operation Christmas Box), and 119 Major and Minor Grants were paid from the Trust’s allocations to the Services, and 69 Reservist grants were made by the Ulysses Trust. For information, a full list of grants made by the Trust or from delegated allocations is appended to this report. Grants were made to HM Ships and Naval Establishments; Royal Marine Units; Army Garrisons and Units and RAF Stations and Establishments (including Reserve Units) worldwide and to individual Sports Associations, Service Sports Clubs or teams from ail three Services. All grants made were institutional and made to recipient formations with charitable status. The total number of units/associations supported in 2025 (194) was a decrease from 2024 (223) but this does not reflect the continuing demand for Trust support within the Armed Forces.

The Trust has achieved its objective and measures its aims further by feedback from recipient units, their Commanding Officers and higher levels of the chain of command, including from the three Service Principal Personnel Officers.

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REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FINANCIAL REVIEW

The Trust receives its funding solely from its investment portfolio and bank interest. The Trust monitors monthly reports from the Investment Managers and the Trustees meet formally with the Fund Managers twice a year to review the performance of the Trust Funds and to ensure that investments held have been acquired in accordance with the powers of the Trustees and any directions they have given. Investment policy is reviewed annually by the Trustees.

In mid 2023 the Trustees appointed two new Fund Managers, splitting the portfolio evenly between the two. The new Fund Managers are Evenlode investment Management Ltd and Jupiter Asset Management Ltd. BlackRock, the previous Fund Managers, retained a small investment portfolio for the Trust in their Property Management Fund (circa £2.1M) which could not be closed immediately due to financial reguiatory reasons. This fund was finally closed in October 2025.

The Trustees authorised the Fund Managers to hold any investment defined under the Financial Services Act 1986, subject only to the proviso that such investment and its degree was permitted by regulations or operational guidance given by the Charity Commission, within a prudent, widely diversified portfolio. The Trust does not set environmental, social or governance (ESG) policies for its portfolio, but adopts the overarching ESG policies set by its Investment Fund Managers.

The performance of the Trust’s portfolio is evaluated against a bespoke composite index. in a period of major global stock market volatility across 2025 due to the economic impact of US trade tariffs and other US policy decisions, and continuing conflicts in eastern Europe and the Middle East, the portfolio saw a total outturn of 3.4% (gross) in 2025. Individually, Jupiter saw a return of 32.4% against the benchmark of 22.3%. Eveniode saw a return of -0.05% against the benchmark of 12.89%. The Trustees also benchmark the Trust's 3-year rolling average capital value against its 1998 capital value adjusted for CP! (RPI before 2018) and capital grant expenditure. On that basis, the Trust’s average capital value was £2.02 million above the benchmark (2024: £1.86 million).

At 31 December 2025 the Trust's investments were valued at £47,744,088 (Jupiter £26,658,340; Evenlode £21,085,748) (2024: £46,029,015). On a dividends receivable basis, as required by the SOFA, the Trust's income for the year was £1,373,307 (2024: £1,076,208). This income comprised dividend income from Jupiter and Eveniode. The BlackRock Property Fund was closed in October 2025. The Fund realised £2,186,965 in share redemption and income over the 10 months to its closure. This money was retained in the Trust's bank accounts to cover grant payments for 2026.

The total investment management fees for 2025 were £273,340 (2024: £265,485).

RESERVES

In May 1997 the Charity Commission confirmed that both the capital and income of the fund could be expended on furthering the objects of the Charity. Given the structured nature of the Trust's grant-making procedures and the ability of the Trust to apply both capital and income to meet need, the Trustees do not designate specific reserve funds. The total amount of reserves held at 31 December 2025 was £45,957,174 (2024: £45,118,673) as there is no restriction in place. The amount of free cash reserves were £2,518,833 (2024: £985,894).

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REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

RISK MANAGEMENT

The Trustees at their meeting on 18th November 2025 reviewed the major risks to which the charity was exposed and were satisfied that procedures had been established to manage these risks.

The major risk arising from the performance of the investment portfolio and manager has been mitigated by using hedging policies and diversification of asset classes. The Trust receives monthly reports from the investment manager and a regular review of investment policies and performance is undertaken. This is underwritten by a written management agreement.

The Trust retains expert investment managers and the Trust’s money is held separately from the Fund Manager’s own.

PLANS FOR FUTURE PERIODS

As previously stated, the Trustees see a long-term need to continue grant-making activity in support of the morale of the Armed Services in furtherance of the late Lord Nuffield’s endowment and express wishes. The Trustees seek the advice of the Principal Personnel Officers and the Central Funds of the Armed Services on the nature and extent of future grant requirements.

For 2026 the Trustees approved grants of £4,299,851, which included the annual allocations to the Services and Reserves of £1,109,190 as well as £3,190,661 for Capital and special projects. £79,612 was allocated for administrative costs (less than 4% of total expenditure).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trust is an unincorporated trust founded by the late Lord Nuffieid in 1939 and originally operated under the terms of a Trust Deed made on the 14th October 1939. This was superseded by a Charity Commissioners’ Scheme that was sealed on 13th February 1997.

The Trust Deed provides for 6 Trustees, 3 of whom should be officers or former officers of the Regular Armed Forces and 3 of whom should be persons who have a special knowledge of commerce, industry or finance. This structure reflects the original wishes of the Trust’s founder. Trustees are appointed by the Board of Trustees and normally may serve until the age of 70 but, exceptionally, may serve beyond that age by Special Resolution of the Board of Trustees. There are no sub-committees of the Board. From 19th March 2013, by Special Resolution of the Board, Trustees appointed in the category of officers or former officers of the Regular Armed Forces may serve only for a maximum of 10 years.

No new Trustees were appointed in 2025. However, it was approved that Vice Admiral Sire David Steel would be succeeded by Vice Admiral Sir Martin Connell in March 2026. New Trustees receive an induction pack which outlines the history, structure, objects and procedures of the Charity. In addition, new Trustees receive copies of the previous year’s Minutes of Meetings and Trustee Report and Financial Statements plus Charity Commission publications relevant to their duties with the Trust and their prior experience of Trustee duties.

Trustees receive no remuneration and Trustee travel expenses are reported in the Notes to the Accounts. Potential conflicts of interest are declared at each Trustee meeting and where Trustees have an interest in or association with potential grant recipients they take no part in the grant decision.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

REPORT OF FHE TRUSTEES (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT- (continued)

The Trustee Board meets twice per year and all matters relating to the Trust’s activities are decided by the Board, other than the following delegations:

The General Secretary is the Trust's sole employee and the Trust is administered from the General Secretary's home. The General Secretary is employed under a contract benchmarked against the REWARD Survey of Charitable Salaries and comparator military salaries and benefits. Triennial reviews are carried out with the remuneration benchmarked against charitable salary surveys and comparator military salaries and benefits.

The current General Secretary decided not to take a Defined Contribution Pension, but instead receives a 12% increase in salary in lieu.

As part of its Grant-making activity, the Trust cooperates with Armed Services’ unit charities, the major Central Charitable Funds of the 3 Armed Services and other Armed Services-related charities.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2025

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

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources for that period.

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

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 17th March 2026 and signed on their behalf by:

The Rt Hon Lord Arbuthnot of Edrom

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INDEPENDENT AUDITORS’ REPORT

TO THE TRUSTEES OF THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FOR THE YEAR ENDED 31 DECEMBER 2025

Opinion

We have audited the financiai statements of The Nuffield Trust for the Forces of the Crown for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable jaw and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Practice; and

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfitled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at feast twelve 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 information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. if we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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INDEPENDENT AUDITORS' REPORT (Continued)

TO THE TRUSTEES OF THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FOR THE YEAR ENDED 31 DECEMBER 2025

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of the Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 7, the Trustees are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee's determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, was as follows:

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tNDEPENDENT AUDITORS' REPORT (Continued)

TO THE TRUSTEES OF THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FOR THE YEAR ENDED 31 DECEMBER 2025

» We assessed the extent of compliance with these laws and regulations through enquiries with the secretary and inspecting legal costs.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud may occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

» checking for correspondence from the Charity Commission.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the tess likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify 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 misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Your attention is drawn to the fact that the charity has prepared accounts in accordance with “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of ireland (FRS 102)" in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 Aprit 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 4 January 2019.

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INDEPENDENT AUDITORS’ REPORT (Continued)

TO THE TRUSTEES OF

THE NUFFIELD TRUST FOR THE FORCES OF THE CROWN

FOR THE YEAR ENDED 31 DECEMBER 2025

This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the (Charities Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors’ report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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Pitt Godden & Taylor LLP Unit 3 Ambrose House
Chartered Accountants Meteor Court
Statutory Auditor Barnett Way
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Pitt Godden & Taylor LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Unrestricted
Funds Funds
Note 2025 2024
£ £
INCOME
-
Investment income		 2 ___1,873,307 1,076,208
Total] income 1,373,307 1,076,208
EXPENDITURE
Costs ofraising funds:
-
Investment management rebates		 3 (125,900) (125,173)
Expenditure on charitable activities:
-
Grants and support costs		 4 4,346,976 1,850,717
Total expenditure 4,221,076 1,725,544
Net (expenditure) before gains on investments (2,847,769) (649,336)
Net gain/{loss) on investment assets 8 3,686,270 (700,973)
NET MOVEMENT IN FUNDS 838,501 (1,350,309)
Reconciliation of funds
Total funds brought forward 45,118,673 46,468 982
Total funds carried forward 45,957,174 45,118,673
Allamountsrelatetocontinuingoperations.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

BALANCE SHEET AS AT 31 DECEMBER 2025

Unrestricted Unrestricted
funds funds
Note 2025 2024
£ £
FIXED ASSETS
Tangible fixed assets 7 839 1,120
Investments 8 47,744,088 46,029,015
47,744,927 46,030,135
CURRENT ASSETS
Debtors 9 188 833 167,438
Cash at bank and in hand 2,330,000 818,456
TOTALCURRENTASSETS 2,518,833 985,894
LIABILITIES
Creditors falling due within one year 10 (2,186,586) (1,897,356)
NETCURRENTASSETS/ (LIABILITIES) 332,247 (911,462)
LIABILITIES FALLING DUE IN MORETHAN ONE
YEAR 11 (2,120,000) -
TOTALASSETS LESSCURRENT LIABILITIES 45,957,174 45,118,673
The funds ofthe charity
Unrestricted income funds 45,957,174 45,118,673
TOTALCHARITYFUNDS 45,957,174 45,118,673

Approved by the Board of Trustees for issue on 17th March 2026 and signed on its behalf by:

The Rt Hon Lord Arbuthnot of Edrom Chairman

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDING 31 DECEMBER 2025

Unrestricted Unrestricted
funds funds
Note 2025 2024
£ £
Net cash used in operating activities 14 (1,832,960) (1,420,417)
Cash flows from investing activities:
Interest and dividends received 1,373,307 1,076,208
Purchase of tangible fixed assets - (1,244)
Proceeds from sales of investments 2,098,577 670,000
Purchase of investments (127,380) (125,180)
Net cash provided by investing activities 3,344,504 1,619,784
Change in cash and cash equivalents in the year 1,511,544 199 367
Cash and cash equivalent broughtforward 818 456 619,089
Cashandcashequivalentscarriedforward 2,330,000 818,456

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

Basis of preparation

The financial statements have been prepared under the historical cost convention, as modified by the inclusion of investments at market value, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared in order to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent provided to provide a ‘true and fair' view. The departure has involved folowing Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The charity constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

The financial statements are presented in Sterling which is the functional currency of the Charity. The figures are rounded to the nearest £.

The Charity is a Trust registered with the Charity Commission for England and Wales. The principal place of business is Magdala, Mill Lane, Titchfield, Hampshire PO15 5RD.

Income recognition

All income is recognised once the charity has entitlement to the income. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon the notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment manager of the dividend yield of the investment portfolio.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a iegal or constructive obligation committing the Charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Overheads and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year on a basis consistent with use of the resources. The irrecoverable element of VAT is included with the item of expenses to which it relates.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

Expenditure recognition

Grants payable are payments to third parties in the furtherance of the charitable objectives of the Charity. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed fo pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the controt of the Charity.

Provision for grants are made when the intention to make a grant has been communicated fo the recipient but there is uncertainty about either the timing of the grant or the amount of grant payabie.

Governance costs comprise the costs of running the Charity, including strategic planning for its future development, external audit and all costs of complying with constitutional and statutory requirements, such as costs of Trustees’ meetings and for preparing statutory financial statements and satisfying public accountability.

Administrative costs have generally been split on a 50:50 basis between support and governance costs to reflect the time spent by the Genera! Secretary on each activity. All support and governance costs have been allocated to the main grant giving activity.

Charitable activities

The expenditure on charitable activities includes grants made, governance costs, and support costs.

Tangible fixed assets and depreciation

All assets costing more than £100 are capitalised and valued at historical cost. Depreciation is calculated to write off the cost less estimated residual value of tangible assets over their estimated useful lives at 25% reducing balance.

Investments

Investments comprise listed investments and are a form of basic financial instrument and are initiaily recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. All gains or losses on investments sold during the year are taken to the statement of financial activities as they arise. Realised gains and losses are calculated as the difference between sales proceeds and their opening carrying value or purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised gains and losses are combined in the Statement of Financia! Activities.

The Charity does not acquire put options, derivatives, or other compiex financial instruments.

The main form of financial risk faced by the charity is that of volatilty in equity markets and investment markets due to wider economic conditions.

Cash held by the investment managers is disclosed within cash at bank and in hand.

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NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date, or if appropriate at the forward contract rate. Nonmonetary assets denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of acquisition of the assets. Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction, or at the contracted rate if the transaction is covered by a forward exchange contract. All revaluation differences and realised foreign exchange differences are taken to the SOFA.

2 INVESTMENT INCOME

Investment income, representing income from UK and overseas assets, derive from:

2025 2024
£ £
Listed investments 1,358,782 1,069,512
Bank interest 14,525 6,696
1,373,307 1,076,208

All income relates to unrestricted funds.

  1. INVESTMENT MANAGEMENT REBATES/COSTS

The investment management costs represent the fees chargeable to the portfolio by the investment managers during the year. These fees are offset by rebates of the management charges made on certain Blackrock in-house funds in the year.

The investment management fee for certain BlackRock in-house funds are deducted intemally on a daily basis within the price of the fund. These internal fees are offset against the Trust's Annual Management Fee calculation.

Rebates are also paid by Jupiter on the funds held by the Trust. These are used to purchase further units in the fund rather than being refunded to the Trust.

Consequently, the credit in the accounts represents the rebates received by the Trust and also the rebates used to purchase further units.

Notional investment management costs based on the percentage fee charges on the portfolio’s average value in 2025 would amount to £273,340 (2024: £265,485) before the rebated offsets described above.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

4 ANALYSIS OF CHARITABLE EXPENDITURE

The charity undertakes its charitable activities through grant making to the armed services.

Grants Support and Total Total 2024
funded Governance
activity costs
£ £ £ £
Armed services 4,266430 430 80,546 4,346,976 1,850,717

All expenditure relates to unrestricted funds. (2024 analysis: Grant funded activity - £1,772,607, Support and Governance costs - £78,110.

Grants comprise of allocations, awarded to the Services and other institutions, and capital & special grants (as described in the Grant Making Policy in the Report of the Trustees) and are analysed as follows:

2025 2024
£ £
Allocations:
197 432 195,534
- Army 568,566 570,464
- Royai Air Force 183,192 201,792
- Reserve Forces 160,000 120,000
Capital Grants:
~ Royal Air Force 106,625 521,367
- Army 2,760,000 211,250
- Royal Navy 293,200 -
- Boleh Trust 25,000 30,000
- Operation Christmas Box 20,000 40,000
Refunds:
RAF (7,585) (91,800)
Royal Navy - (26,000)
4,266,430 1,772,607

Grants approved are included in the financial statements. To the extent that such grants are not fully expended, surpluses are credited to grant expenditure following completion or cancellation of the project which for the year amounted to £7,585 (2024 - £117,800).

The total number of capital and special grants actually paid during the year by the Trust and by each of the recipient Services or Institutions from within their allocations, from the allocation made in November 2024 are summarised:-

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

5 GRANTS - continued

2025 2024
No No
Boleh Trust 1 1
Op Christmas Box 1 1
Capital grant - Royal Air Force 3 1
Capital grant -Army 1 -
Royal Navy 34 60
Army 45 67
Royal Air Force 40 38
Ulysses Trust 69 55
194 223

The detailed information for 2025 is set out in 'Special/capital grants and grants awarded from services allocations 2024', attached to these financial statements from page 25 onwards.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

6 SUPPORT COSTS AND GOVERNANCE COSTS

Support Governance Total Support Governance Total
costs costs allocated costs costs allocated
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Salaries (Inc health insurance and Death in Service costs) 33,223 33,223 66,446 31,632 31,632 63,264
Employer's NI 897 897 4,794 1,251 1,251 2,502
Chairmans fund - - - 307 306 613
Audit fees 2,520 2,520 5,040 2,520 2,520 §,040
Membership fee 228 227 455 224 225 449
Printing and stationery 696 695 4,391 874 871 4,742
Telephone 159 160 319 251 251 §02
Insurance 207 207 414 187 487 374
Postage 108 108 216 89 88 177
Sundry expenses 403 404 807 - - -
Travelling and subsistence expenses 1,316 4,310 2,620 1,043 1,043 2,086
Website costs 275 276 5514 272 273 545
Depreciation - office equipment 141 140 281 187 187 374
Bank charges 106 106 212 106 106 212
Loss on disposal oe ee AS S20
40,273 40,273 80,546 39,055 39.055 78,110

Travel expenses of £1,766 were reimbursed to three Trustees dumng 2025 (2024 - reimbursements of £1,338 to three trustees). No remuneration is paid to Trustees. The Trust had one employee (2024: one) during the year. The employee received employee benefits of more than £60,000.

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NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

7 TANGIBLE FIXED ASSETS

Fixtures
and Fittings
£
Cost
At 1 January 2025 12,665
Additions -
Disposals -
At 31 December 2025 12,665
Depreciation
At 1 January 2025 11,545
Depreciation charge 281
Eliminated on disposal =
At 31 December 2025 11,826
Net book value
At31 December 2025 839
At31December2024 1,120

Fixed asset investments, which are held to provide an investment return, represent securities listed on recognised stock exchanges, with the exception of unit trust investments.

Alt investments are carried at their fair value,. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

2025 2024
£ £
Marketvalue at 1 January 2025 46,029,015 47 274 808
Acquisitions 127,380 125,180
Sale proceeds (2,098,577) (670,000)
Net change in market value 3,686 270 (700,973)
Market value at 31 December2025 47,744,088 46,029,015
Investments are analysed as follows: £ £
UKinvestments 47,744,088 46,029,015

-21-

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

8 INVESTMENTS (Continued)

2025 2024
£ £
UK UnitTrusts 26,658,341 24 441,637
UK - OEIC 21,085,747 21,587,378
47,744,088 46,029,015

The historical cost of the investments at 31 December 2025 amounts to £42,899,088 (2024: £44 953,937).

The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield.

The Trustees have instructed their investment managers to invest the portfolio to maximise the longterm total return, whilst having regard to the tevel of risk stated below.

The Trustees have recognised that investing funds for real, long-term returns requires significant investment in equities and other assets which may involve an element of risk and that the asset values can and will fall at times.

The investment manager undertakes prudent investment suitable for a charitable trust in a broad investment portfolio to spread risk.

The investments made must only be in well-diversified readily-realizable investments which fall within categories permitted by the charity commission regulations or operational guidance and to such a degree as is permitted by regulations. This will reduce liquidity risk. The Trust does not hold investments in markets subject to exchange conirols or trading restrictions.

The Trustees have set a Performance Objective and Composite Benchmark against which the investment managers will be compared. Additionally the Trustees compare the performance over rolling 3 year periods to the ARC Charity Indices. The capital value will be compared to a benchmark figure adjusted for inflation and any withdrawals.

DEBTORS
2025 2024
£ £
Prepayments and accrued income 188,833 167,438
188,833 167,438

-22-

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

10 CREDITORS -amounts falling due within oneyear 2025 2024
£ £
Grants payable 2,179,851 4,890,407
Social security and other taxes 1,695 4,909
Accruals 5,040 5,040
2,186,586 1,897,356
11 CREDITORS -amounts falling due in more than one year 2025 2024
£ £
Grants payable 2,120,000 -
2,120,000 -
Accrued
Movements in provisions and funding commitments £
forgrants during theyear
Grant commitments at the start ofthe year 1,890,407
New grant commitments charged to the SOFA tn year 4,259,192
Net grants paid during the year (1,849,748)
Amount of grant commitments recognised 4,299,851
asat31December2025

12 TAXATION

The Trust is a registered charity and therefore is not subject to taxation.

13 RELATED PARTY TRANSACTIONS

Sir Tyrone Urch is Vice Patron of Ulysses Trust. In 2025 this Trust was allocated a grant of £160,000 (2024: £120,000).

Sir David Steel is Patron of The Boleh Trust, which was allocated a grant of £30,000 for 2025 and a further £25,000 for 2026.

John Chatfeild-Roberts is employed by Jupiter Asset Management and is also a minority shareholder of Jupiter Fund Management plc - the ultimate parent. Jupiter Asset Management were joint investment managers of the Trust during 2025 and 2024.

-23-

NUFFIELD TRUST FOR THE FORCES OF THE CROWN

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2025

13. RELATED PARTY TRANSACTIONS (continued)

Sir Baz North is the president of the RAF Association and the RAF President of the Officers' Association. In 2026, The RAF received normal service grants of £183,192 (2024: £183,192) and capital grants of £106,625 (2024: £521 367).

14 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025 2024
£ £
Net movement in funds 838,501 (1,350,309)
Add back depreciation charge 281 604
Deduct interest income shown in investing activities (1,373,307) (1,076,208)
(Gain)/Loss on investments (3,686,270) 700,973
(Increase)/decrease in debtors (21,395) 94,032
Increase in creditors 2,409 230 210,491
Net cash used in operating activities (1,832,960) (1,420,417)
CATEGORIES OF FINANCIALASSETS& LIABILITIES
2025 2024
E £
Carrying amount of financial assets
Financial assets that are equity instruments measured
at fairvalue through the statement of financial activities 47,744,088 46,029,015
Carrying amount of financial liabilities
Financialfiabilitiesmeasuredatamortisedcost 4,306,586 4,897,356

15 CATEGORIES OF FINANCIAL ASSETS & LIABILITIES

-24-

SPECIAL/CAPITAL GRANTS AND GRANTS AWARDED FROM SERVICES’ ALLOCATIONS

2024 & PAID IN 2025

UNIT PROJECT COST (£)
Halton Training Camp
JSMTC		 ae
New Climbing Wall		 211,250.00
IRAF Benson
———_—s[Weelfare and Community Kitchen		 259,367.00
RAF Waddington Junior Ranks Welfare Facility 202,000.00
RNCosford Microlight ReplacementMicrolight Aircraft 60,000.00
Op Christmas Box Op Christmas Box 2025 40,000.00
BOLEH Trust BOLEH Trust 30,000.00
ROYAL NAVY
RM Brazilian Jiu Jitsu
Association		 devisa BID2025 3,800.00
HMS Daring HMS DARING- Mess Deck and Ship Improvements 15,000.00
Royal Navy Paddlesport
Association (RNPA		 .
ProjectSPRAYDECK 2024/25		 10,000.00
HMS Brocklesb Welfare Regeneration ltems 6,150.00
HMS Collingwood AboveWater Warfare Training Element(AWTTE}
Room Refurbishment		 3,523.13
HMS Merse 500.00
HMS Sultan WattHangerTraining Facility
-Recreation Space
Renovation		 2,996.05
Northwood Headquarters Morale Boosting itemsforSUBOPSBusiness
Continuity
Plan		 366.97
HMS Bangor SR Mess Refurbishment 1,262.51
HMS Flying Fox FoxyFest '25- Festival Lights 509.34
HMS Protector Refurbishment of JR's Mess 3,000.00
Commando Forces HQ
All units		 fig Medical Cell Refurbishment 524.83
HMS Ambush WO & SR Mess Regeneration 653.00
HMS Queen Elizabeth QNLZ Shoreside Accommodation Improvement Fund 1,875.00
HMS Collingwood Chaplaincy
Furniture Renewal		 1,183.50
Commande Training
Centre Royal Marines		 CTCRMJRDH Refurbishment 15,000.00
HMS Collingwood Collingwood Suite refurbishment (Phase 2 6,335.00
Band ofHerMajesty's
Royal Marines Scotland		 RM Band Scotland Recreational Area Refurbishment 41,906.83
HMS Collingwood OAC outside welfare area 2,058.87
HMS Forth Messdecks Welfare Equipment 1,334.64
HMS Drake HMSDrake Car and Motorcycle Club Aquablast
Machine		 4,905.60
HMSStirlingCastle Refurbishment 2,686.22

25

==> picture [220 x 156] intentionally omitted <==

----- Start of picture text -----
|||| |---|---|---| |Commando|Trainin|,| |2nd|Mine| |Squadron| |Naval|Intelligence|Div| |Association|

----- End of picture text -----

Total: 34 Units

==> picture [449 x 163] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |ARMY| |26RegtRA|[Minibus29,449.00| |WELFARE|FUNDING|-|SOUTHWICK|PARK|JNCO| |Parachute|Systems|to|support junior|members|of|the|

----- End of picture text -----

26

Total: 45 Units

RAF

participants
Phoenix Cinema Projector Project
(Jointly
funded
ISTAR HQ RAF ISTAR HQ Kitchen povision ofwhite goods after
ey Nook 24 HR community
space development
(RAF
socialarea

27

UNIT PROJECT COST (£)
RAF Paragliding
Association		 Hang and Para: 3 x solo paraglider rigs and
competition paraglider		 7500.00
RAF Motorsports .
Motorsports: 20 x Sharl Race Helmets		 6,194.51
RAF Powerlifting
ays
Association		 Powerlifting - Competition platform, plates &
squat/bench rack		 7,875.00
RAF Athietics Association jAthietics: Replacement Pole Vaults 450.00
RAF IceHockey
Association		 Ice Hockey: RepresentativeTeam Clothing 2,400.00
RAF Kiting Association [Power Kiting: New member Instructional Equipment 3,000.00
RAF Watersports
Association		 Waterski &Wakeboard: Contribution towards new
boat		 6.000.00
ae
RAF Sports Sports Aircraft: Ground Servicing Equipment 13,500.00
RAF Winter Sports Atomic Alpine& Telemark Equipment 9,697.37
RAF Sailing Dinghy for training 10,500.00
RAF Volleyball 897.75
RAF Valley Station Karting Track 6,750.00
RAF Winter Sports Race Timing System 3,450.00
Padel & Pickleball Equipment 1,104.00
RAF Lossiemouth Purchase ofStaticcaravan for useaswelfare contact
accommodation		 44,995.00
80 Sqn - Eglin Payment 4 - Pool Table and accessories 3,935.85
80 Sqn - Eglin Payment 5 - Bar and Fridge items 2,185.06
RAF St Mawgan Live music club equipment grant 1,875.00
600 Sqn RAF Northolt Crew room refurbishment 9,468.94
7AACMiddleWallop RAF Survial Equipment SectionCrewRoom
improvement		 766.42
901 EAW - Al Udeid Outdoor seating area for UK Enclave 1,092.43
80 Sqn - Eglin Payment 6 - Decorating Items 80 Sqn Crew room 409.72
DHUChicksands 3xRAF participants in ExDragon TridentVolans
parachuting expedition		 600.00
80Sqn-Eglin Payment7-80SqnCrewroom 10,357.19

Total: 40 Units

28

RESERVES (ULYSSES TRUST} —- ADVENTUROUS TRAINING & EXPEDITIONS

SOUTH-WEST OFFICER TRAINING

30

RESERVES (ULYSSES TRUST) ~ ADVENTUROUS TRAINING & EXPEDITIONS

INFANTRY BATTLE SCHOOL LEAD (7X AR
REGIMENT °
VARIOUS UOTC UNITS. VARIOUS UAS
NORTH WEST OFFICER TRAINING
SOUTHWESTOFFICERTRAINING

Total: 69 Units

Grand Total: 188 Units

31