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2025-03-31-accounts

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

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Registered Charity No 215551
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i'l /'1/ Photthjraphy byNlckDavld Morden C e Aiinual Report 2025

CONTENTS

Foreword from the Chair of Trustees and Chief Executive 5
History and Constitution 6
People and Charity information 7
Our new Strategic Framework 8
Trustees’ Report
Excellent Homes 10
High Quality Services 12
Thriving Communities 14
Enablers – achieving our goals 16
Independent Auditor’s Report 26
Statement of Financial Activities 28
Balance Sheet 29
Statement of Cash Flows 30
Notes to the Accounts 31

Morden College Annual Report 2025 Annual Report and Accounts for the year ended 31 March 2025 Registered Charity No 215551

Morden College Annual Report 2025

3

FOREWORD FROM THE CHAIR OF TRUSTEES AND CHIEF EXECUTIVE

This has been a year of thinking about the future. In a place like Morden College, with its long history, that involves looking back to our beginnings as a charity and then looking ahead to the years to come. After significant consideration by the Trustees and executive team, we ended the year with plans for our 330 year old Quadrangle and a clear strategic framework for the coming years.

Morden College Annual Report 2025

4

MORDEN COLLEGE IS AN INSPIRATIONAL AND BEAUTIFUL PLACE AND A THRIVING COMMUNITY OF RESIDENTS, TEAM MEMBERS, FAMILIES, FRIENDS AND PARTNERS.

The difficult decision to close our Quad temporarily meant that the year in question saw residents moving from the Quadrangle into flats across Morden College. This brought to an end a long period of internal moves for residents. Trustees have considered the future of the Quad with a range of advisors and are optimistic that our plans to refurbish it as refreshed almshouses will come to fruition.

Increasing our impact through the provision of more almshouse accommodation is at the heart of our new strategic framework which was developed between October 2024 and March 2025. Trustees set about refreshing the strategic framework by bringing together a clear understanding of the current landscape for older people in London and beyond especially with regard to housing. We consulted peers, partners, and other expert organisations and individuals and worked with strategy consultants and are delighted to have agreed our strategy for the next decade. The plan reinforces our commitment to the original purpose of Morden College – to provide homes to people who find themselves in financial hardship and struggling to find a home after a lifetime of work. Our strategic vision is for older people to live well at home and in a community and our purpose is to provide our older people with housing so they can live well as long as possible, and to work with partners to improve the lives of older people living on our sites. We have committed to three strategic goals of providing excellent homes, delivering high quality services and creating thriving communities. As we move into a year of implementation and adoption of this strategy, our work will be guided by our values of integrity, fairness and equity, and excellence. Read more about our new Strategic Framework on pages 8 and 9.

Morden College is an inspirational and beautiful place and a thriving community of residents, team members, families, friends and partners and we are delighted to present our latest Annual Report.

Sir David Wootton Chair of Trustees

Meryl Davies Chief Executive

Morden College Annual Report 2025

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6 Morden College Annual Report 2025

PEOPLE AND CHARITY INFORMATION

TRUSTEES

Chairman and Honorary Treasurer: Sir David Wootton

Trustees: Alderman Professor Michael Mainelli FCCA FCSI FBCS Alderman Alison Gowman CBE

Alderman Alastair King Alderman Robert Hughes-Penney

Fredrik Widlund Professor Jill Manthorpe Alderman Christopher Makin Alderman Tim Hailes Professor Sube Banerjee (elected 11 June 2024) Alderman Greg Jones (elected 11 June 2024)

ADVISORS TO THE TRUSTEES

Honorary Surveyor George Gillon MBE FRICS (resigned 17 March 2025)

Advisor on Care

Dr Caroline Shuldham OBE (resigned 14 May 2024)

OFFICERS AND SENIOR MANAGERS

Clerk to the Trustees & Chief Executive Meryl Davies

Chaplain

The Rev’d Alex Russell (appointed 3 June 2024)

Director of Finance & Resources

Helen Downie ACA (appointed 21 August 2024)

Kate Morris ACMA (resigned 30 August 2024)

Director of Property

Ed Mileham MRICS BSc

Director of Residents’ Services

Robert Frier (appointed 9 September 2025)

Catronia Toms (appointed 1 July 2024, resigned 20 March 2025)

Director of People & Culture

Sharon Jager (appointed 25 November 2024, resigned 7 March 2025)

Michael Lowe (resigned 1 November 2024)

Director of Operations

Richard McAllister (resigned 6 June 2025)

Advisor on Finance Ashley Wain (appointed 1 August 2025)

PRINCIPAL OFFICE

19 St Germans Place Blackheath London SE3 0PW

PRINCIPAL BANKERS

National Westminster Bank plc 13 Stratheden Road Old Dover Road, Blackheath London SE3 7SY

CHARTERED SURVEYORS

Newmark 7 Vere Street London W1G 0JB

INVESTMENT ADVISORS

Stanhope Consulting 35 Portman Square London W1H 6LR

SOLICITORS

Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

Attwaters Jameson Hill

St. Clement’s House 27 Clement’s Lane London EC4N 7AE

INVESTMENT MANAGERS

AUDITOR

Haysmac LLP 10 Queen Street Place London EC4R 1AG

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU

CCLA Investment Management 1 Angel Lane London EC4R 3AB

Morden College Annual Report 2025

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OUR NEW STRATEGIC FRAMEWORK

In 2024/25 the Trustees of Morden College developed a new strategic framework for the Charity. Over a period of six months, Trustees and senior leadership team considered expertise and insight from partners, peers, and other stakeholders and organisations. The aim was to produce a long-term strategic framework which would honour the origins of the Charity whilst ensuring that its purpose remains relevant in 21st-century London.

After six months of working together on developing the strategic framework we have now agreed a way forward which we consider to be dynamic and sustainable, delivering impact in the short, medium and long terms.

The backdrop to our strategic framework is commitment to our fresh vision, purpose, and values.

Our vision

For older people to live well at home and in a community.

Our purpose

We provide our older people with housing so they can live well and independently as long as possible, and work with partners to improve the lives of older people living on or near our sites.

Our values

In making decisions to maximise our positive impact, we are guided by values of:

Integrity Acting with honesty, transparency and respect. Fairness and equity Giving fair access to opportunities and resources.

Excellence Being led by expertise from our whole community, including staff, residents, Trustees and the communities around us.

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We have three strategic goals which will form the basis for all work we undertake.

STRATEGIC GOAL 1 Excellent Homes

We will grow our provision of high-quality housing for older people, offered at fair rents, at our existing sites and beyond.

Our commitment to delivering this strategy over the coming years is reinforced by our identification of strategic enablers, the factors and facets of our work which will be core to our delivery planning. The enablers identified by Trustees as part of the strategic planning process were:

STRATEGIC GOAL 2

High Quality Services

We will provide support that helps residents to live well, at home, for as long as possible.

1. Expertise

We will sustain an expert team and ensure a pipeline of the skills and passion we need to deliver our vision and will make Morden College a great place to work.

2. Resources

and Technology

We will make disciplined investments with a long-term view to ensure our long-term financial sustainability.

We will integrate technology to help us to deliver our strategy, including through generating cost savings and efficiencies in how we deliver work, and improving positive impacts on the people we serve.

STRATEGIC GOAL 3

Thriving Communities

We will create opportunities for strengthened relationships between our residents and with our local communities.

3. Communications

We will communicate clearly with our whole community to establish a culture in line with our values.

4. Decision-making and planning

We will establish clear processes for energetic and expert decisionmaking and planning.

5. Impact

We will develop an impact approach that allows us to understand if we are doing the right things, and if we are doing things right.

6. Delivery models

We will establish quality and consistent service delivery models and hold ourselves accountable against these models.

Morden College Annual Report 2025

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TRUSTEES’ REPORT

STRATEGIC GOAL 1

Excellent Homes

As we reported last year, the decision to close our 1695 Quadrangle of almshouses was made in June 2023 and has been the catalyst for a significant amount of research and investigation to ensure we understand the right approach to our heritage buildings. We have sought expert advice and undertaken work which has enabled us to improve our understanding of the significance of the Quad and the potential to restore it in a way that respects our history, our purpose, and our future impact.

The residents who lived in the Quad began to move into our other almshouse accommodation in 2023 and gradually settled into their new flats across the site. At the time of the decision to temporarily close the Quad, the decision was also made to convert the first floor of our care home building, Cullum Welch Court, into 16 small almshouse flats. This work was completed in early 2025 and the final Quad residents moved in this new area, now known as Edwardstone Court, in March 2025.

As part of our work to develop a Masterplan for our sites, we have undertaken a condition survey of all our almshouse buildings. This has provided us with a ten-year maintenance and upkeep plan to support planning and budgeting. We are also seeking to increase the number of almshouse flats on our sites by re-evaluating our buildings to maximise occupancy.

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We’re extremely lucky to live here, it’s a beautiful flat, I’ve got a patio and a garden out here. I’m extremely lucky.

̶ BLACKHEATH RESIDENT

The whole place is kept to a high standard, if we break a window, they’ll come in and do it… The facilities in the flats are very good.

I was so grateful for the security of housing, the fact I could afford it but also it’s the social life.

̶ BLACKHEATH RESIDENT

̶ BECKENHAM RESIDENT

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Trustees’ Report continued

STRATEGIC GOAL 2

High Quality Services

Our almshouse accommodation on both sites is located within a community where we provide services to support independent living for older people. At the heart of this is our new Resident Services team which was established in spring 2024. Our Director of Resident Services oversees two aspects of resident life: care and quality and resident services.

The Care and Quality team oversees our care home, Cullum Welch Court, and our Care at Home domiciliary care work.

Cullum Welch Court is a 28- bed care home with nursing care and provides 24-hour care for people living with a wide range of conditions. The home offers residential, nursing, dementia, and end of life care whilst supporting individuals with physical disabilities and sensory impairments. Accommodation is in single bedrooms with ensuite facilities and views of the award-winning College gardens. We aim to meet people’s need for autonomy, personal choice, control, privacy, fulfilment, safety, citizenship, and social interaction in a respectful and dignified manner. We believe that ensuring these needs are met will promote an overall sense of wellbeing and demonstrate clearly to the people who use our services that care and kindness are at the heart of the support we provide.

Care at Home is our domiciliary care service which is available to all residents assessed for care needs at our Blackheath site. The staff provide support to individuals living in their own home and operate between 8.00am to 8.00pm daily. The service helps individuals maintain their independence whilst ensuring help is always at hand if needed. The care and support provided to each person are responsive to a resident’s individual need and choices. Our Care and Quality team also oversees our relationships with health and care providers who visit our site to provide services to our residents.

Resident Services support our residents with all requests regarding life at Morden College, including maintenance requests. This team is also responsible for providing activities and services for residents such as our minibus service, our small shop, activities such as choir and exercise classes, and trips to local attractions. The day-to-day life of our residents is also supported through our maintenance and security contracts, both of which have been reviewed during the year.

The Resident Services team is also responsible for admissions to our almshouses. The final moves out of the Quad flats ended a period of housing consolidation which had seen multiple internal moves. With our new strategy, we are committed to increasing the number of almshouse flats we provide, and we are anticipating a period of growth and of multiple new arrivals into our community.

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Living here takes the anxiety out of living on your own. You haven’t got to worry about a lot of things, especially if you don’t have family to back you up.

It’s a marvellous place to live, we’re incredibly well cared for at not a vast cost, if something doesn’t work you can pick up the phone and someone will come and see to it. It will happen; you’re not going to be without for weeks on end.

̶ BLACKHEATH RESIDENT

̶ BLACKHEATH RESIDENT

I think at this stage in my life I’m in the right place, I feel secure, I feel I’ve got help if I need it. Sometimes even if I don’t need it. Yes, I can’t think of any other place I’d rather be, than here in my situation.

̶ BECKENHAM RESIDENT

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Trustees’ Report continued

STRATEGIC GOAL 3

Thriving Communities

Our almshouse flats are all located within settings which provide multiple opportunities for community life. The work we have carried out on developing the 2025 Masterplan has enabled us to consider not only our buildings but also our open spaces.

commitments, we are addressing our approach to gardening and committing to more sustainable methods.

Our two sites include communal seating areas and bars which are used by residents regularly. Each site has a resident-led Sports and Social Committee which organises events and activities such as musical entertainment and activities like darts, putting, bingo, and happy hours. There is also healthy rivalry with putting matches between the sites and between residents and staff.

The facilities at our Blackheath site were significantly enhanced with the completion of the John Morden Centre which won the Stirling Prize in 2023. This building contains a health and wellbeing centre, a café and a community hall. In 2024, we commissioned a review of our catering services and kitchen facilities on both sites. The review found that we have significant underutilised potential.

Both sites also have beautiful communal gardens with seating, shade, and water features. As part of our ESG

The key recommendations related to four areas:

  1. Revitalise communal spaces by redesigning the café and creating a communal kitchen at the Beckenham site.

  2. Enhance catering services by improving food quality, tailored to resident needs and ensuring best practice in food handling and labelling

  3. Improve financial oversight and efficiency by centralising operations and reducing costs. Develop a business model for external catering opportunities to generate additional revenue.

  4. Expand and optimise services adjusting opening hours to include evenings and Sundays to better serve residents. Improve retail offerings in the shop and promote themed events and social experiences to increase engagement.

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There is a family feeling here.

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I had a big family, and
feeling here. my wife had a big family,
̶ BLACKHEATH RESIDENT but all my in-laws have
died, and all my family
have died. That’s why
living communally is
a godsend. It’s part of
something greater.
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All sorts of things are provided ̶ BECKENHAM RESIDENT here, the exercises, the choir, there are a lot of things if you choose to join in, but you don’t have to join in anything.

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̶ BLACKHEATH RESIDENT
We look around
and think wow,
we have a diary
absolutely
packed.
̶ BECKENHAM RESIDENT
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15
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Morden College Annual Report 2025

Trustees’ Report continued

ENABLERS

Achieving our goals

Technology

Improving our use of technology will be seen in our commitment to excellent homes and high-quality services, but this year the greatest technological change was in our development of our finance system and our shift to improved financial management. We started work on a significant project to transform how we use technology and data to streamline how we work, improve our residents’ experience of living at Morden College and ensure we can measure the impact of our work on residents’ lives. This involved replacing our ageing finance system with a new system, Business Central, and taking the first steps towards implementation of the Dynamics Customer Relationship Management database (CRM). The next stage of the project will focus on the development of the Dynamics CRM. This will involve reviewing every aspect of how we work; from our admissions process for new residents, through to our processes for organising events and activities.

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THIS YEAR, WE

Impact

In 2024/25, we took important steps towards becoming a more sustainable and socially responsible almshouse charity. We are proud to continue to provide older people with housing so they can live well and independently as long as possible, while also deepening our commitment to strong Environmental, Social and Governance (ESG) principles.

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Committed to the Completed Energy
development of clear Performance Certificate
ESG goals to guide our (EPC) surveys across campus
future work. properties and real estate
endowment properties to
assess energy efficiency.
Identified improvement Enhanced biodiversity
works across our on our grounds with the
properties with budgets introduction of perennial
allocated for 2025/26. planting and additional
bird boxes.
Collected Equality, Diversity Appointed a dedicated
and Inclusion (EDI) data from Sustainability and Impact
residents in January 2025 Lead to drive our ESG
to better understand and agenda forward.
support our community.
Established an ESG Working These efforts mark the
Group, chaired by our Trustee beginning of a transformative
Alderman Alison Gowman, journey as we work to embed
to oversee our progress and sustainability, equity, and
ensure accountability. good governance at the heart
of everything we do.
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Morden College Annual Report 2025

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Trustees’ Report continued

INCOME 2025

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2%
Total income for the year was
19%
£16.096m 22%
- 4% decrease
2025 £16.096 million
2024 £16.703 million
CHARITABLE ACTIVITIES
INVESTMENT INCOME FROM PROPERTY
INVESTMENT INCOME FROM OTHER INVESTMENTS
57%
OTHER INCOME INCLUDING DONATIONS
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FINANCIAL REVIEW

Over 75% of Morden College’s income comes from its endowment portfolio, which is invested in property and financial assets. Contributions from residents in our care home and independent living accommodation make up a further 19% of annual income, with the remainder coming from one-off donations and other sundry income. Resident contributions are set at a level that is both affordable for residents and sustainable for the Charity over the long term. Meanwhile, the endowment portfolio funds the Charity’s running costs, including maintenance of our heritage buildings. The portfolio also provides capital for future almshouse developments, enabling us to increase our impact for people in need of safe, secure and affordable housing in later life.

The net surplus for the year (before transfers between funds and investment gains) was £1.0m (2024: £0.988m). Both income and expenditure were lower than the previous year, for the reasons set out below.

Income from residents in our living investments accommodation (including the care Income from the Charity’s financial home) was £3.027 million, a reduction investments was £3.525 million, an of 8% compared to the previous year. increase of 30% compared with the (2024: £3.306 million). The reduction previous year (2024: £2.708 million). in income was due to lower This increase was due to interest on occupancy in our care home and in significant cash balances from the our Quad accommodation, which was sale of the Morden Wharf Southern gradually vacated during the year, Site. This cash will be used to fund pending redevelopment. All former the Quad redevelopment, with the Quad residents have moved into balance invested to generate future vacant accommodation on our sites income and capital for the Charity. in Blackheath and Beckenham and we are now able to start welcoming (4) Other income including donations new residents from outside Morden Other income includes donations College as flats become available. and sales in our Café 19 restaurant

(2) Investment income from property Property income this year was £9.133 million, a reduction of 10% compared with the previous year (2024: £10.171 million). This reduction was due to the sale of the Morden Wharf Southern Site in October 2023 and two vacant commercial sites that have now been re-let. Total income from property includes income from our Property Funds held with Savills and Swiss Life Asset Managers.

The Charity does not undertake fundraising activities during its normal course of operations.

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EXPENDITURE 2025

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1%
9%
Total expenditure for the year was
£15.051m 7%
- 4% decrease
3%
2025 £15.051 million
2024 £15.715 million
47%
GRANTS AND OUT/IN PENSIONS
INDEPENDENT LIVING HOUSING COSTS
33%
CARE HOME COSTS
INVESTMENT MANAGERS’ FEES
BOND INTEREST
PROPERTY MANAGEMENT
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The total paid in Grants and out/in pensions, before allocated costs, was £196k (2024: £194k). The number of individual beneficiaries supported by grants during the financial year was 63 (2024: 73). Other grant payments were made from Dame Susan restricted funds to fund local choristers, in line with the objects of the Dame Susan Charitable Trust.

Care Home costs reduced by 9% to £4.915 million (2024: £5.372 million). The staffing structure in the care home now reflects the reduced number of residents, following conversion of the first floor of the care home into flats for independent living. The lower cost base also reflects a correction to buildings depreciation over-charged in previous years.

The costs associated with managing our direct property investments were £1.358 million, a 15% reduction compared with the previous year (2024: £1.590 million). These costs include the costs of our inhouse Real Estate team, together with direct property costs. These costs are largely determined by the complexity of property transactions undertaken during the year. Prior year expenditure included the cost of finalising the sale of the Morden Wharf Southern Site.

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Trustees’ Report continued

INVESTMENTS

Sir John Morden left approximately £12,500 to endow the College when he died in 1708 and the permanent endowment assets of the Charity (which include the assets of Sir John and Dame Susan Morden) are now valued at £309 million. The permanent endowment assets include fixed assets, which includes the original land and buildings, investment properties and financial investments.

Approximately 52% of the Charity’s endowment investments are invested in property (including property funds) and 48% in financial investments.

The time horizon for the endowment portfolio is very long term, reflecting the Charity’s history. With effect from 1 April 2016, the Trustees adopted a Total Return approach to accounting for the investments for the Sir John Morden’s Charity’s Permanent Endowment. The Trustees are using the statutory powers included in the Charities Act 2011 (“the Act”) and given effect by the Charities (Total Return) Regulations 2013 (“the Regulations”), which do not require Charity Commission approval in order for the Total Return basis to be adopted.

The Trust for Investment is considered to be the value of the permanent endowment as at 1 April 2016 and may be increased by the allocation of unapplied total return, being the investment income and capital gains on the portfolio, from time to time.

The Trustees have determined that the Trust for Investment should be increased annually in line with CPI inflation to protect its real value, which has resulted in an increase of 2.6% in the current year (2024: 3.8%).

The Trust for Investment and the unapplied total return together comprise the permanent endowment fund disclosed in Note 14 to the accounts. The total return for the year ended 31 March 2025 was a gain of £12.7 million comprising income of £11.8 million and gains of £2.5 million, less investment management costs of £1.6 million. The balance of the Unapplied Total Return Fund at 31 March 2024 was £20.6 million and it is proposed that £6.609 million is allocated to the Trust for Investment, in line with the Trustees’ policy established in 2017, and £11.830 million is converted to income and transferred to the unrestricted fund. The balance on the Unapplied Total Return Fund at 31 March 2025 is now £14.887 million.

The Charity’s financial investment policy provides that the minimum investment objective is to preserve the capital and income of the Charity’s portfolio from inflation. The measure of inflation is the Consumer Price Index (CPI). From 1 July 2021, the long-term total return objective for the investment portfolio was set at CPI inflation plus 3% p.a.

A reasonable level of capital volatility within the portfolio is considered by the Trustees to be acceptable in order to achieve the return objectives. However, the maximum capital losses in the financial portfolio in any one-year period in normal market conditions (defined as 98% of possible outcomes) should not exceed 15-20%.

In terms of responsible investment, the Trustees of Morden College believe that the endowment portfolio should be managed in a responsible and sustainable manner in accordance with its charitable objectives and social obligations.

Morden College uses the services of two fund managers; Sarasin and CCLA. The year to 31 March 2025 was a challenging year for financial markets. The first half of the year was characterised by strong market growth, driven by US technology stocks. However, political and economic turmoil in the second half of the year, driven by US trade tariffs, negatively impacted year end valuations. For the financial year covered by this report, the combined Sir John Morden financial portfolio underperformed the long-term objective of CPI +3% p.a., delivering a return of just 0.8%. Over the long term, the financial portfolio has modestly underperformed against target, delivering a return of 7.2% over ten years compared with a target return of 7.4%. This reflects the difficulty of achieving the investment objective during the period of high inflation in 2022 and 2023. Nevertheless, the Trustees believe the investment objective remains appropriate and achievable over the long term.

RESERVES

a. Unrestricted Funds

Funds I – IV are referenced and set out in the Scheme for The Charity of Sir John Morden as submitted to the Charity Commission in 1991

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20

RISK MANAGEMENT

b. Restricted Funds

c. Permanent Endowment

These funds are the capital of the Charity, and they are invested to produce income that is used to further the Charity’s work. The Permanent Endowment Fund may not be used for any other purposes. Its funds are invested in charitable property, investment property, quoted investments and cash deposits. The value of the Permanent Endowment Funds at the year-end was £308.707 million, of which £288.416 million represents the Sir John Morden permanent endowment and £20.291 million represents the Dame Susan Morden permanent endowment.

The risks of the Charity are monitored by the Chief Executive and Senior Leadership Team, and appropriate action is taken to reduce the risk of disruption to the impact and effectiveness of the Charity. Key strategic risks are reported to the Finance, Audit and Risk Committee on a quarterly basis and annually to the Board of Trustees. Operational risks are managed within Directorates and overseen by the Senior Leadership Team. All identified risks are assessed for the likelihood of occurrence and their potential impact. The risk management system is designed to reduce the likelihood of occurrence and/or mitigate the impact through the application and monitoring of appropriate controls, as described in the table below.

The Charity
currently
assesses and
monitors
fourteen risks,
the following
four are our
key risks:		 Risk
Mitigation		 Risk
Mitigation
We fail to generate
sufcient income
and manage our
costs, impacting our
ability to deliver our
Mission.
•
•
•
•
•
•		 Detailed annual budgets and three-year cashfow forecasts
Monthly review of fnancial performance and reforecasting
Use of investment managers and external investment and property advisers
Diversifcation of income and assets
Efective management of tenancies and arrears by qualifed Real Estate team
Efective procurement policies and management of contracts
We sufer a
signifcant IT breach
or outage, impacting
our operations.
•
•
•
•		 Antivirus software, access controls
Business continuity planning
Staf training and vetting
Use of external experts for infrastructure support
We fail to comply
with legislation in key
areas such as care,
fre safety and health
and safety.
•
•
•
•
•		 Recruitment of specialist staf in key areas
Efective policies, monitoring arrangements and reporting of incidents
Contractor management, quality audits
Staf training
Use of specialist advisers where required
Physical damage
to property and
unplanned capital
expenditure
•
•
•
•
•		 Condition survey and planned preventative maintenance
Insurance policies in place
ESG strategy to address environmental impacts and obligations
Recruitment of suitably qualifed staf and use of expert advisers
Extraordinary Repairs Fund to cover unforeseen expenditure

Morden College Annual Report 2025

21

Trustees’ Report continued

STRUCTURE AND GOVERNANCE

Construction of Morden College began in 1695. It opened in 1700 for the benefit of poor, elderly merchants of good character who were either bachelors or widowers and who had failed in business through no particular fault of their own. Since that time, the criteria for entry have been widened. They now include men or women of good character who have either been engaged in a trade, business, or a profession as principals, or reached a position of authority or seniority, in employment and who, through accident, misfortune, disability, or infirmity have been prevented from continuing to follow their former calling and are in reduced material circumstances. The criteria also include the spouses, partners, widows and widowers of such men and women.

The Trustees are also empowered to provide assistance by way of pensions and grants for older people in need, whether or not they are resident in the Charity’s homes. Donations may also be made to other charities that provide or undertake in return to provide items, services, or facilities to beneficiaries of the Charity.

The Trustees determine the general policies of the Charity and delegate day-to-day management to the Clerk to the Trustees, whose role is that of Chief Executive. The Charity’s Senior Leadership Team holds regular meetings to review progress against objectives agreed with the Trustees. The Chairman visits the Charity on a regular basis and meets with the Chief Executive.

The Trustees of the Charity are drawn, in the main, from the Court of Aldermen of the City of London. Trustees who retire from the Court of Aldermen of the City of London remain eligible to continue to serve as Trustees of the Charity. Trustees are appointed on the basis that they possess the appropriate range of skills and experience that will assist the future growth and development of the Charity.

All Trustees receive an induction programme.

All Trustees give their time freely and no Trustee remuneration was paid during the year. There were no related party transactions with Trustees.

Trustees are required to disclose all relevant interests and register them with the Chairman of the Trustees and the Chief Executive.

MANAGEMENT AND STAFF REMUNERATION

There are clear distinctions between the role of Trustees and the Senior Leadership Team. The Trustees hold a range of reserved matters and delegate certain authority to the Chief Executive and Senior Leadership Team to run the organisation effectively. Matters such as policy, strategy and budgets are prepared by the Senior Leadership Team for consideration and approval by the Trustees.

The Charity aims to pay salaries which are fair, competitive within the charity sector, and proportionate to the complexity of each role. In setting salaries, the Charity ensures that:

Within Dame Susan’s Charitable trust, the sole employee is the Chaplain who is supported in her role by the Chief Executive, the Senior Leadership Team and members of staff employed by Morden College as and when the need arises.

POLICIES

Applications policy

Applications for accommodation or outpensions must be submitted in writing and must be supported by independent testimonials. Applications for grants are also made in writing and are normally for single payments unless the need is assessed as a continuing one, when the Charity may award an annual Outpension. The Trustees review all applications carefully and satisfy themselves that the applicant is genuine, and the assistance sought is in accordance with the Charity’s aims. All applicants for accommodation are interviewed by a panel chaired by the Chief Executive before being recommended for admittance by the Trustees.

Grant Making Policy

Every application for a grant must be submitted in writing and include the total cost of the project for which the grant is sought. All applications are scrutinised to ensure that the request for assistance falls within the scope of the Charity’s objects. Applicants who are eligible for help are visited to clarify any outstanding matters. If all is found to be in order, a report is made to the Trustees, who consider the application, and instruct whether the grant should be made together with any conditions relating to it. Compliance with any conditions made is monitored, and payment of grants may be withheld if the terms of assistance are not met.

Responsible Leadership/ Environmental, Social and Governance (ESG) Policy

The Trustees of Morden College believe that all of Morden College’s business should be led and managed in accordance with the charitable objectives of both the Sir John Morden and Dame Susan Morden Charities, and in a way that conforms to the College’s social, environmental and governance obligations.

Trustees support fully the ten principles of the United Nations’ Global Compact. Notably, Trustees and the Executive recognise their responsibility to take account of, and be responsible for, the impact Morden College’s business has on the environment and climate, sustainability, employment rights and practices, human rights, and on the College community as well as the wider (local to Morden College) community; and to work against all forms of dishonesty such as corruption, fraud, extortion, and bribery. This approach accords also with the College’s values of:

Integrity: acting with honesty, transparency and respect.

Fairness and equity: giving fair access to opportunities and resources.

Excellence: being led by expertise from our whole community, including staff, residents, Trustees and the communities around us.

Our strategic enablers demonstrate our commitment to responsible leadership:

Expertise: we will sustain an expert team and ensure a pipeline of the skills and passion we need to deliver our vision and will make Morden College a great place to work. We will focus on training, skill sharing, alignment of individual goals with wider goals – and, crucially, accountability.

Morden College Annual Report 2025

22

Resources: we will make disciplined investments with a long-term view to ensure our long-term financial sustainability. We will spend consciously in pursuit of our vision. We will draw upon the positive impact of external expertise. Our teams will demonstrate our values in their use of resources and be empowered by a shift towards prudence.

Technology: we will integrate technology to help us to deliver our strategy, including through generating cost savings and efficiencies in how we deliver work, and improving positive impacts on the people we serve (such as through technology enabled housing). Our teams will understand the impact of their work through the lens of data and will use technology to improve the resident experience.

Communications: we will communicate clearly with our whole community to establish a culture in line with our values.

Decision-making and planning:

we will establish clear processes for energetic and expert decision-making and planning. Our lenses for considering decisions will be:

Impact: we will develop an impact approach that allows us to understand if we are doing the right things for our residents, communities, friends, families, and our teams. We will involve our residents in the design of our work to improve our impact.

Delivery models: we will establish quality and consistent service delivery models and hold ourselves accountable against these models. Our teams will be empowered by the transparency inherent in this approach. And with expertise, they will understand boundaries and when and how to flex or adapt.

PUBLIC BENEFIT

The objective of the Charity is to relieve financial hardship suffered by older people and it does this primarily by providing living accommodation comprising independent living and a Care Home. We also make available such support as is necessary to enable beneficiaries to live their lives in the community to the full.

The Charity also provides single grants and continuing annual grants, (referred to as outpensions) to older people in financial need but who do not necessarily wish to apply to the Charity for accommodation. Beneficiaries receiving such grants use the money to defray living costs as they see fit.

The objective of Dame Susan’s Trust is the advancement of religion by assisting the Church of England with the upkeep of their churches and associated activities and by maintaining and paying for the operating costs of the Morden College Chapel and its Chaplain.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities including the provision of accommodation, the making of grants and provision of outpensions.

The Charity fulfils these objectives by:

Applications for accommodation are received from older people who come from many different backgrounds but share a common problem in retirement in so far as they face financial difficulties. Enquiries for accommodation continue to be from all over the country as well as a small number from people living abroad but all applicants must have the right to live in the UK to qualify

for accommodation. The number of applications has been increasing, as a shortage of housing and the effects of the cost-of-living crisis continue to be felt across the UK.

As properties become vacant, they are refurbished before being made available to new residents to ensure the standard meets the needs of older people.

The Charity, via the Dame Susan Trust, seeks to deliver public benefit by making grants to Church of England churches who lack the necessary funds to maintain, repair and improve the fabric of their own buildings.

Regular services of worship were held throughout the year in the Morden College Chapel at Blackheath and at the Charity’s second site at Ralph Perring Court, Beckenham. Regular services are also held in Cullum Welch Court, the Care Home provided by Sir John Morden’s Charity which is situated at Blackheath.

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Trustees’ Report continued

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees 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).

The law applicable to charities in England & 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 the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting 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 Charities Act 2011. 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. Through a system of internal controls, the Trustees seek to ensure all expenditure is properly incurred and properly authorised, that receipt of income is secure, and that the Charity’s property is fit for purpose.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and 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.

Sir David Wootton Chair of the Trustees

Meryl Davies Clerk to the Trustees & Chief Executive

24 September 2025

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Thrive is a good word, I like people to thrive. I feel like I thrive here, I’m a happy positive person.

̶ BECKENHAM RESIDENT

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25

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MORDEN COLLEGE

Opinion

We have audited the financial statements of Morden College for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting 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 Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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. 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 financial statements section of our report. We are independent of the Charity in accordance 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 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 Trustees’ 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 least twelve months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Foreword from the Chair of Trustees and Chief Executive, History and Constitution, People and Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to

report by exception

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

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26

Responsibilities of Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page 24, the Trustees 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 control as the Trustees 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 liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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:

Based on our understanding of the Charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with the regulations of the Care Quality Commission, Tenancy Laws, Health and Safety Regulations, Charity Law, GDPR and Employment Law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the potential to manipulate accounting estimates and judgements and the posting of inappropriate journal entries. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the Charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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 Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s Trustees as a body for our audit work, for this report, or for the opinions we have formed.

HaysMac LLP

10 Queen Street Place Statutory Auditor London EC4R 1AG

Date: 29 October 2025

HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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27

Statement of Financial Activities

for the year ended 31 March 2025

----- Start of picture text -----
Unrestricted Restricted Permanent Total Total
Funds Funds Endowment 2025 2024
Notes £’000 £’000 £’000 £’000 £’000
----- End of picture text -----

INCOME AND ENDOWMENTS FROM
Charitable Activities
Investment Income from Property
Investment income from other Investments
Other income including Donations
Total income
EXPENDITURE ON
Charitable Activities
Raising Funds
Total expenditure
Net income/(expenditure) before investment
gains/(losses)
Net gains/ (losses) on investments
Unwinding of discount on debtor falling due after
one year
Net income/(expenditure)
Transfer between Funds
Net movement in funds
Reconciliation of Funds
Total Funds brought forward at 1 April 2024
Total funds carried forward at 31 March 2025		 3,027
-
-
3,027
3,306
-
480
8,653
9,133
10,171
3
274
74
3,177
3,525
2,708
4
400
11
-
411
518
2
3,701
565
11,830
16,096
16,703
5a
11,954
158
135
12,247
12,755
5b
1,021
135
1,648
2,804
2,960
2
12,975
293
1,783
15,051
15,715
(9,274)
272
10,047
1,045
988
9c
122
-
1,942
2,064
14,714
-
-
494
494
-
(9,152)
272
12,483
3,603
15,702
11,830
-
(11,830)
-
-
2,678
272
653
3,603
15,702
21,643
1,649
308,054
331,346
315,644
24,321
1,921
308,707
334,949
331,346

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The accompanying notes form an integral part of this Statement of Financial Activities.

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28

Balance Sheet

for the year ended 31 March 2025

----- Start of picture text -----
2025 2024
Notes £’000 £’000
----- End of picture text -----

FIXED ASSETS
Tangible fxed assets
College buildings
Other tangible fxed assets
Investment property
Quoted investments
Total fxed assets
CURRENT ASSETS
Debtors – amounts falling due within one year
Short term deposits
Cash at bank and in hand
Creditors: amounts falling due within one year
NET CURRENT ASSETS
Debtors – amounts falling due after more than one year
Creditors – amounts falling due after more than one year
NET ASSETS
FUNDS
Permanent endowment
Sir John Morden
Dame Susan Morden
Restricted funds
Unrestricted funds
Total Charity funds		 8
40,004
38,164
8
3,617
3,563
43,621
41,727
9
173,147
169,970
9
91,338
87,672
264,485
257,642
308,106
299,369
10
1,300
18,914
33,249
27,911
8,138
1,749
42,687
48,574
11
(2,701)
(2,962)
39,986
45,612
10
16,857
16,365
12
(30,000)
(30,000)
334,949
331,346
13, 14
288,416
287,688
20,291
20,366
13, 15
1,921
1,649
13, 16
24,321
21,643
334,949
331,346

The financial statements on pages 28 to 45 were approved and authorised for issue by the Board of Trustees and signed on 24 September 2025 on its behalf by:

Sir David Wootton Chairman of the Trustees

Meryl Davies Clerk to the Trustees and Chief Executive

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29

Statement of Cash Flows

for the year ended 31 March 2025

----- Start of picture text -----
2025 2024
Notes £’000 £’000
Cash flow from operating activities
Net cash provided by/(used in) operating activities A 5,688 (44,821)
Cash flow from investment activities
Dividend, interest and rents from investments 12,658 12,879
Proceeds from the sale of investments 27,771 71,890
Purchase of investments (32,550) (19,872)
Purchase of tangible fixed assets (1,840) (3,630)
6,039 61,267
Change in cash and cash equivalents in the reporting period 11,727 16,446
Cash and cash equivalents at the beginning of the reporting period 29,660 13,214
Cash and cash equivalents to the end of the reporting period B 41,387 29,660
2025 2024
A. Reconciliation of net income to net cash flow from operating activities £000 £000
Net income for the reporting period 3,603 15,702
Adjustments for
Depreciation (54) 1,335
Gains on investments (2,064) (14,714)
Dividends, interest and rents from investments (12,658) (12,879)
Decrease/(Increase) in debtors 17,122 (33,928)
Decrease in creditors (261) (337)
Net cash provided by/(used in) operating activities 5,688 (44,821)
B. Analysis of cash and cash equivalents
Cash in hand 8,138 1,749
Notice deposits (less than 3 months) 33,249 27,911
Total cash and cash equivalents 41,387 29,660
C. Cashflow Net Debt
At 1 At 31
April 2024 Cashflows March 2025
£'000 £'000 £'000
Cash in hand 1,749 6,389 8,138
Notice deposits 27,911 5,338 33,249
Sub-total 29,660 11,727 41,387
Long-term bond (30,000) - (30,000)
Net debt (340) 11,727 11,387
----- End of picture text -----

Morden College Annual Report 2025

30

Notes to the Accounts

for the year ended 31 March 2025

1. PRINCIPAL ACCOUNTING POLICIES

The accounts have been prepared 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) and the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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), (Second Edition, effective 1 January 2019) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005, which has since been withdrawn.

Public Benefit

The Charity constitutes a public benefit entity as defined by FRS102.

Going Concern

The Charity has a significant level of cash and unrestricted reserves which were the equivalent of more than 12 months operating costs at the balance sheet date. These cash reserves provide adequate resources to finance the Charity’s day-to-day operations. On this basis, the Board has a reasonable expectation that the Charity has adequate resources to continue operating for the foreseeable future, being a period of at least twelve months from the date on which the Annual Report and Accounts are signed. For this reason, these accounts have been prepared on a going concern basis.

Investment Gains and Losses

Realised gains and losses on quoted investments are based on the difference between the net disposal proceeds and the brought forward value or cost for additions during the year.

Realised gains and losses on property investments are based on the difference between the net disposal proceeds and the brought forward valuation. Sales are recognised on exchange of contracts where completion takes place after the financial year end.

Unrealised gains and losses represent the difference between the market value of quoted investments and investment properties at the balance sheet date and their brought forward carrying value or purchase cost for investments acquired during the year.

Estimation uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income, and expenses is provided below. The principal judgments and sources of estimation uncertainty relate to the valuation of investment properties and the estimated useful lives of tangible fixed assets.

Income

Expenditure

Morden College Annual Report 2025

31

Investment property

The Charity’s Commercial investment properties were last professionally valued by Messrs Gerald Eve LLP, Chartered Surveyors, as of 31 March 2025 on an open market basis in accordance with the Royal Institution of Chartered Surveyors Valuation Professional Standards. The Charity’s residential investment properties were professionally valued by Comber & Co, as of 31 March 2025 on an open market basis in accordance with the Royal Institution of Chartered Surveyors Valuation Professional Standards.

Investment properties are classified in the balance sheet as fixed assets unless there is a firm intention to dispose of them, at which point they are transferred to current assets.

Quoted Investments

Quoted investments are shown at market value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

The Charity also owns 100% of the share capital of Morden College Design and Build Limited and the value of this investment is stated at cost (£2).

Tangible fixed assets

Useful lives of depreciable assets

The Trustees review their estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change and changes to circumstances which may require more frequent replacement of key buildings or components of existing buildings.

The key judgements and estimates applied in respect of housing provided for beneficiaries are disclosed in the accounting policy dealing with fixed assets and depreciation and include:

Capitalisation of property development costs

Distinguishing the point at which a project is more likely than not to continue (allowing capitalisation of associated development costs) requires judgement. After capitalisation, management monitors the asset and considers whether subsequent changes may indicate that impairment is required.

Fixed Assets and Depreciation

(1) Buildings

Freehold land is not depreciated.

Depreciation of housing property components is charged so as to write down the cost of the components to their estimated residual value, on a straight-line basis, over their estimated useful economic lives within the Charity. Housing property components are depreciated from the year following the replacement year. Estimated useful economic lives are assumed as follows:

Major components

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32

Furniture and equipment 5 years Computers 4 – 7 years

Grants

Grants payable are charged in the Statement of Financial Activities in the year that the payment is made to the recipient. All grants approved by the Trustees are conditional and are paid upon the completion of the conditions attached to them. Grants offered during the year but where conditions have not been met are not accrued as expenditure but are treated as contingent liabilities.

Pension costs

Pension payments are made to a defined contribution pension scheme. There is also one (2024: 1) member who was in the closed defined benefits scheme and the Trustees have given their undertaking to use their best endeavours to ensure that this member does not suffer any loss of benefit following the closure of that scheme. All contributions are included in the SOFA when due.

Funds and Reserves Policy

Funds held by the Charity are:

Taxation

The trust is a registered charity and as such its income and gains falling within sections 471 to 489 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

Financial Instruments

The Charity only has financial instruments of a kind that qualify as basic financial instruments such as debtors, creditors, cash at bank and listed investments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets held at settlement cost comprise cash and bank and cash in hand together with debtors. Financial liabilities held at settlement value or amortised cost comprise rents received in advance, accruals and other creditors, and the fixed interest bond. The Financial investments disclosed in note 9 are the only financial instruments measured at fair value.

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33

2. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

----- Start of picture text -----
Unrestricted Restricted Permanent Total
Funds Funds Endowment 2024
£’000 £’000 £’000 £’000
----- End of picture text -----

Unrestricted
Funds
£’000
Restricted
Funds
£’000
Permanent
Endowment
£’000
Total
2024
£’000
INCOME AND ENDOWMENTS FROM
Charitable Activities
Investment Income from Property
Investment income from other Investments
Other income including Donations
Total income
EXPENDITURE ON
Charitable Activities
Raising Funds
Total expenditure
Net income/(expenditure) before investment gains/(losses)
Net gains/(losses) on investments
Net income/(expenditure)
Transfer between Funds
Net movement in funds
Reconciliation of Funds
Total Funds brought forward at 1 April 2023
Total funds carried forward at 31 March 2024		 3,306
-
-
3,306
217
493
9,461
10,171
483
63
2,162
2,708
510
8
518
4,516
564
11,623
16,703
11,624
188
943
12,755
1,021
118
1,821
2,960
12,645
306
2,764
15,715
(8,129)
258
8,859
988
485
-
14,229
14,714
(7,644)
258
23,088
15,702
11,621
-
(11,621)
-
3,977
258
11,467
15,702
17,666
1,391
296,587
315,644
21,643
1,649
308,054
331,346

3. INVESTMENT INCOME

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

Dividends and income from Investments
Interest on Cash Deposits		 1,947
2,202
1,578
506
3,525
2,708

4. OTHER INCOME

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

Benefciary restaurant receipts and sundry income
Dame Susan Morden's Charity		 400
510
11
8
411
518

Morden College Annual Report 2025

34

5. EXPENDITURE

Direct
Staf
Costs
£’000
Other
Costs
£’000
Apportioned
costs
£’000
Total
£’000
a. Charitable activities
2025
Grants and out/in pensions
Independent living housing costs
Quadrangle housing costs
Care home costs
Morden College Chapel costs
Fire Safety Enhancement works
2024
Grants and out/in pensions
Independent living housing costs
Quadrangle housing costs
Care home costs
Morden College Chapel costs
Fire Safety Enhancement works		 -
196
25
221
1,144
824
2,053
4,021
120
99
2,759
2,978
1,814
229
2,871
4,914
56
16
-
72
-
41
-
41
3,134
1,405
7,708
12,247
-
194
25
219
476
1,297
2,015
3,788
99
314
2,839
3,252
1,729
661
2,982
5,372
64
9
-
73
-
51
-
51
2,368
2,526
7,861
12,755
Direct
Staf
Costs
£’000
Other
Costs
£’000
Apportioned
costs
£’000
Total
£’000
b. Cost of raising funds
2025
Quoted investment managers’ fees
Bond interest
Property management
2024
Quoted investment managers’ fees
Bond interest
Property management		 -
425
-
425
-
1,021
-
1,021
-
1,036
322
1,358
-
2,482
322
2,804
-
349
-
349
-
1,021
-
1,021
-
1,322
268
1,590
-
2,692
268
2,960

Morden College Annual Report 2025

35

----- Start of picture text -----
Donations, Independent
grants living Sheltered
and out housing housing Care home Property Total
pensions costs costs costs management 2025
£’000 £’000 £’000 £’000 £’000 £’000
----- End of picture text -----

c. Apportioned costs have been allocated on a use basis as follows c. Apportioned costs have been allocated on a use basis as follows
2025
Catering - 78 355 23 - 456
Restaurant (Cafe 19) - 44 44 - - 88
Library & Muniments - - 5 - - 5
Gardens - 69 148 21 - 238
Administration 25 1,862 2,207 2,827 322 7,243
25 2,053 2,759 2,871 322 8,030
2024
Catering - - 498 30 - 528
Restaurant (Cafe 19) - 28 - - - 28
Library & Muniments - - 2 - - 2
Gardens - 62 131 19 - 212
Administration 25 1,925 2,208 2,933 268 7,359
25 2,015 2,839 2,982 268 8,129

6. PAYMENT OF OUT/IN PENSIONS

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

2025
£’000
2024
£’000
Individuals (Pensioners)
Administrative costs
Other grants		 110
103
25
25
86
91
221
219

There were 62 pensioners at 31 March 2025 (2024: 70)

Morden College Annual Report 2025

36

7. WAGES AND SALARIES – STAFF COSTS (INCLUDING APPORTIONED COSTS)

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

2025
£’000
2024
£’000
Staf costs
Wages and salaries
Social security costs
Pension contributions
Other costs including bank and agency staf		 5,692
5,257
532
535
357
279
434
815
7,015
6,886

Staff costs – Wages and Salaries include redundancy costs of £537k (2024: £13.5k)

Staff numbers

The average number of employees during the year including those who worked part-time was 164 (2024:186). Their full time equivalent was 127 (2024: 159) and their functional analysis was as follows:

2025
No.
2024
No.
Kitchen and domestics
Nursing
Premises, grounds and security
Home management and pastoral
Management and administration		 34
42
37
55
12
17
1
1
43
44
127
159
2025
2024
Highest paid employees, including benefts, excluding pensions
£60,000 to £70,000
£70,000 to £80,000
£80,001 to £90,000
£90,001 to £110,000
£120,001 to £130,000
£130,001 to £140,000
£140,001 to £150,000
£160,001 to £170,000		 2
4
3
-
1
3
1
2
-
1
1
-
-
1
1
-

The Charity’s key senior managers are listed on page 7. Details of remuneration policy are set out in the Trustees’ Report. Total remuneration paid to senior managers, including employers NI, was £1,033k (2024: £1,173k).

No Trustees received any remuneration but received reimbursement of expenses of £730 during the year (2024: £1,464).

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37

8. TANGIBLE FIXED ASSETS

Charity
£’000
College Buildings
Cost
At 1 April 2024
Additions at Cost
At 31 March 2025
Depreciation
At 1 April 2024
Net depreciation adjustment
Disposal adjustment
At 31 March 2025
Net book value at 31 March 2025
Net book value at 31 March 2024		 50,553
1,422
51,975
12,389
(230)
(188)
11,971
40,004
38,164
Antiques &
Valuables
£000
Computers
£’000
Furniture &
equipment
£’000		 Total
£’000
Other tangible fxed assets
Cost or Valuation
At 1 April 2024
Additions at Cost
Disposals
At 31 March 2025
At valuation
At cost
Depreciation
At 1 April 2024
Disposals
Charge for the year
At 31 March 2025
Net book value at 31 March 2025
Net book value at 31 March 2024		 1,685
1,857
2,572
395
23
-
-
-		 6,114
418

-
1,685
2,252
2,595		 6,532
1,685
-
-
-
2,252
2,595
-
612
1,939
-
-
-
-
240
124		 1,685
4,847
2,551

-
364
-
852
2,063		 2,915
1,685
1,400
532		 3,617
1,685
1,245
633		 3,563

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38

9. INVESTMENT ASSETS AT MARKET VALUE

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

a. Investment property
Residential
Commercial and Industrial incl Property Fund
b. Financial investments
Fixed interest and alternatives – UK & non UK
Equities – UK & non UK
Stockbrokers’ client account
Historical cost of investments held at 31 March 2025		 64,785
63,005
108,362
106,965
173,147
169,970
24,143
61,876
61,053
23,244
85,196
85,120
6,142
2,552
91,338
87,672
83,260
78,004

----- Start of picture text -----
Financial
Property investments Total
£’000 £’000 £’000
----- End of picture text -----

Property
£’000
Financial
investments
£’000
Total
£’000
c. The movements in market value may be summarised:
Market value at 31 March 2024
Realised/Unrealised gains/(losses)
Additions
Disposals
Change in stockbroker cash deposits
Market value at 31 March 2025		 169,970
87,672
257,642
3,018
(954)
2,064
172,988
86,718
259,706
159
32,391
32,550
-
(31,361)
(31,361)
-
3,590
3,590
173,147
91,338
264,485

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39

10. DEBTORS

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

Amounts falling due within one year
Rent and contributions receivable
Prepayments and sundry debtors
Dividends and interest receivable
Due from sale of investment property
Amounts falling due after more than one year		 709
511
17
220
574
683
-
17,500
1,300
18,914
16,857
16,365

Amounts due after more than one year relate to the sale of the Morden Wharf Southern Site in October 2023. The amount of £18,023,307 due after more than one year has been discounted to its net present value at the balance sheet date using the rate on two-year government bonds (4.16%).

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
2025 2024
£’000 £’000
Rents received in advance 1,043 962
Tax, pensions and social security 211 171
Value Added Tax 253 185
Sundry creditors 155 240
Accruals 1,039 1,404
2,701 2,962
----- End of picture text -----

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025
£’000
2024
£’000
Fixed Interest Bond 30,000
30,000
30,000
30,000

The Bond has a maturity date of 27 March 2042 and carries a fixed rate of interest of 3.38% until maturity. The Bond is repayable as a single amount.

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40

13. ALLOCATION OF THE NET ASSETS OF THE CHARITY

----- Start of picture text -----
Endowment Restricted Unrestricted Total
Funds Funds Funds Funds
£’000 £’000 £’000 £’000
----- End of picture text -----

Endowment
Funds
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
Funds
£’000
2025
College buildings
Other tangible fxed assets
Investments – Sir John Morden
Investments – Dame Susan Morden
Net current assets
Debtors due after more than one year
Long Term Liability (Bond)
2024
College buildings
Other tangible fxed assets
Investments – Sir John Morden
Investments – Dame Susan Morden
Net current assets
Debtors due after more than one year
Long Term Liability (Bond)		 40,004
-
-
40,004
1,685
3
1,929
3,617
225,236
-
18,958
244,194
20,291
-
20,291
34,634
1,918
3,434
39,986
16,857
-
-
16,857
(30,000)
-
-
(30,000)
308,707
1,921
24,321
334,949
38,164
-
-
38,164
1,685
6
1,872
3,563
223,722
-
13,554
237,276
20,366
-
-
20,366
37,752
1,643
6,217
45,612
16,365
-
-
16,365
(30,000)
-
-
(30,000)
308,054
1,649
21,643
331,346

Morden College Annual Report 2025

41

14. PERMANENT ENDOWMENT FUNDS

----- Start of picture text -----
Balance at Gains/ Balance at
1 April Income Expenditure (losses) Transfers 31 March
£’000 £’000 £’000 £’000 £’000 £’000
----- End of picture text -----

Balance at
1 April
£’000
Income
£’000
Expenditure
£’000
Gains/
(losses)
£’000
Transfers
£’000
Balance at
31 March
£’000
2025
Sir John Morden
Dame Susan Morden
2024
Sir John Morden
Dame Susan Morden		 287,688
11,830
(1,783)
2,511
(11,830)
288,416
20,366
-
-
(75)
-
20,291
308,054
11,830
(1,783)
2,436
(11,830)
308,707
275,970
11,624
(2,763)
14,481
(11,624)
287,688
20,618
-
-
(252)
-
20,366
296,588
11,624
(2,763)
14,229
(11,624)
308,054

The Permanent Endowment Fund is a restricted fund that includes the current value of the original endowment that was to provide homes and financial assistance for the elderly. In 2016, the Trustees resolved to apply Total Return accounting to the portion of the Sir John Morden permanent endowment fund that is represented by fixed asset investments.

The Trustees have established a policy of transferring the investment income received in the year to the general fund and retaining the balance of the Unapplied Total Return within the endowment fund. This policy is reviewed annually by the Trustees.

The total of the Trust for Investment and the Unapplied Total Return make up the Permanent Endowment Fund.

Income from the Trust for Investment is to be applied to the running costs of the Charity. The capital may be used to purchase property for charitable and investment purposes, but the maintenance and refurbishment of these properties must be paid from the income of the Charity.

Morden College Annual Report 2025

42

14. PERMANENT ENDOWMENT FUNDS (CONTINUED)

----- Start of picture text -----
Unapplied
Permanent Total
Endowment Return Total
£’000 £’000 £’000
----- End of picture text -----

Sir John Morden – Total Return accounting
Balance 1 April 2023
Investment Income
Investment Gains
Investment Managers' Fees
Infation Indexation
Allocation of Unapplied Total Return to Income
Balance at 31 March 2024
Investment Income
Investment Gain
Investment Managers' Fees
Infation Indexation
Allocation of Unapplied Total Return to Income
Balance at 31 March 2025		 244,901
17,279
262,180
-
11,624
11,624
-
14,481
14,481
-
(1,821)
(1,821)
244,901
41,563
286,464
9,306
(9,306)
-
254,207
32,257
286,464
-
(11,624)
(11,624)
254,207
20,633
274,840
-
11,830
11,830
-
2,511
2,511
-
(1,648)
(1,648)
254,207
33,326
287,533
6,609
(6,609)
-
260,816
26,717
287,533
-
(11,830)
(11,830)
260,816
14,887
275,703

The Trust for Investment as at 1 April 2016, the date of adoption of Total Return accounting, was identified by the Trustees as being equal to the value of the fund’s investment portfolio as at that date. The Trustees have determined that the Trust for Investment should be increased annually in line with CPI inflation to protect its real value, which has resulted in an increase of 2.6%, £6.609m in the current year (2024: 3.8%, £9.306m).

Source: Office for National Statistics

Morden College Annual Report 2025

43

15. RESTRICTED FUNDS

----- Start of picture text -----
Balance at Balance at
1 April Income Expenditure 31 March
£’000 £’000 £’000 £’000
----- End of picture text -----

2025
Welfare Fund
Gift Fund
Dame Susan Morden's Charity general fund
2024
Welfare Fund
Gift Fund
Dame Susan Morden's Charity general fund		 5
-
-
5
8
-
-
8
1,636
565
(293)
1,908
1,649
565
(293)
1,921
5
-
-
5
8
-
-
8
1,378
564
(306)
1,636
1,391
564
(306)
1,649

The Welfare Fund was created from a gift received some years ago and is for the benefit of residents and staff and it is for expenditure that is not part of the Charity’s normal activities. The Gift Fund represents donations received for the benefit of the Care Home and its staff.

16. UNRESTRICTED FUNDS

----- Start of picture text -----
Balance at Balance at
1 April Income Expenditure Transfers 31 March
£’000 £’000 £’000 Gains/Losses £’000 £’000
----- End of picture text -----

2025
General Fund
Accumulation of income
Extraordinary repairs
Future Projects
2024
General Fund
Accumulation of income
Extraordinary repairs
Future Projects		 9,178
3,701
(12,975)
122
7,865
7,891
2,325
-
-
-
6
2,331
3,936
-
-
-
(41)
3,895
6,204
-
-
-
4,000
10,204
21,643
3,701
(12,975)
122
11,830
24,321
5,250
4,516
(12,645)
485
11,572
9,178
2,319
-
-
-
6
2,325
3,893
-
-
-
43
3,936
6,204
-
-
-
-
6,204
17,666
4,516
(12,645)
485
11,621
21,643

Morden College Annual Report 2025

44

The Trustees reviewed the balances on all funds before authorising transfers between funds.

The Trust Deed requires the Trustees to maintain an Accumulation of Income fund to ensure that the fixed overheads of the Charity could be met for a limited period of time if income levels were temporarily insufficient to cover such costs. The Deed also requires a minimum transfer of £6k into this fund each year; having reviewed the balance on the fund the Trustees have determined that the fund should be increased by the minimum amount. The fund is invested in a cash deposit.

Under the Trust Deed the Trustees are also required to maintain an Extraordinary Repairs Fund (Building Reserve Fund) for the maintenance, extraordinary repair, improvement or refurbishment of the almshouses, other buildings and the infrastructure of the Charity. The funds are invested in a bank deposit account.

The Future Projects fund provides for the future expenditure on new projects of any kind to be undertaken in furtherance of the objects of the Charity. The balance of the surplus for the year, after transfers to the Extraordinary Repairs Fund and other Funds is retained in this account.

17. CAPITAL COMMITMENTS

There were no capital commitments at 31 March in either the current year or the prior year.

18. SUBSIDIARY UNDERTAKING

The Charity incorporated a Private Limited Company, Morden College Design and Build Limited on 22 January 2013; the company is registered in England and Wales. The company supplied building construction services to Sir John Morden’s Charity for its building project, Alexander Court. Following completion of the project, the company is now dormant. The subsidiary has 2 issued shares of £1 each which are both beneficially owned by the Charity.

19. OPERATING LEASES

The Charity derives the majority of its income from properties which are leased to commercial and residential tenants. The future minimum lease payments under non-cancellable operating leases are as follows:

----- Start of picture text -----
2025 2024
£’000 £’000
----- End of picture text -----

Not later than one year
Later than one year and not later than fve years
Later than fve years		 6,438
1,153
19,509
29,331
33,697
39,096
59,644
69,580

Morden College Annual Report 2025

45

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

Registered Charity No 215551

MORDEN COLLEGE

19 ST GERMANS PLACE BLACKHEATH LONDON SE3 0PW REGISTERED CHARITY NO 215551

WWW.MORDENCOLLEGE.ORG.UK