Charity number.. 222154 BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2025 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES CONTENTS Page Reference 8nd admlnlstrativè dètails ol the Charlty, Its Tru8tee& #nd advl88rs Trusto$$' raport 3-13 Ind•pend•nt 8udltors' rèport on the flnanclal stat8mgnt$ 14-17 statement of flnan¢l41 actlvltles 18 Balance $h•gt 19 statement of ca8h flow$ Not•¥ to th¢ flnanclal $tatgments 21-41 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR END 31 MARCH 2025 Trust88s Captain J,E. Evans Mr D. Foirn&ll Mr D. B. P. Herriotl MrA. W. Herriott Mr M. W. Herriolt, Vlce Chalr Councillor M. Greener Counclllor T. Stewart, Ch8ir Coun¢illor R. Mackenzie Coun¢lllor L. Slophen90n Councillor J. Turton Charlty reglstored number 222154 Prtnclpal offlcè Town Hall M8ry981ft Berwick upon Tweed TD15 IBN Independent judltors Klnnair Associates Limil¢d Lhartgr8d Accounlanls A¥lon Hou88 Redburn Road Weslerhop8 Newcastle upon Tyno NE5 1NB 8ankgrs Bank ol Scotland e1 Hlde Hill Berwick upon Tweed TD15 1EN Soll¢ltor8 Womble Bond Dicklnson Sl. Ann's Wharf 112 Quayside Newcaglle upon Tyn9 NE99 1 SB Chart•rèd Accountants Ryecroll Glenlon 32 Fortland Terrace Ngwca8lle upon Tynè NE2 1QP Land Sleward A. H¥mlllon Edwin Thompson LLP Chartered SurvpyL¥f8 44.48 Hide Hill 8erwl¢k upon Tweèd TD15 1A Page 1 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS CONTINUEDI FOR THE YEAR END 31 MARCH 2025 Investment Advisor RBC Brewin Dolphin LSmiled Time Central Gallowgale Newcastle upon Tyne NEI 4SR Aocountsnt C. R. J. Oakley Clerk W. E. Henry Pag8 2 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES, REPORT FOR THE YEAR END 31 MARCH 2025 The Truslo85 pr8s6nl their annual report l0991her wilh Ihe audited financl81 slalgments of the Charity for thè year frorn 1 April 2024 10 31 March 2025. The financial slal&menl8 have been prepared in a¢cordan¢e with tho ac¢ounling policles sfjl out in the no188 to the flnanclal slalemenls and comply with the charlly's governlng document, the Charill&s Act 2011 and the relevant verslon ol the Slalemenl of Recommendfyd Practice applSc8ble lo charilles preparing their flnancial 8ta18rnenls In accordanc8 wlth the Flnanclal Roportlng Standard appllcable In the UK and Republlc of Ireland {FRS 1021. Oblectlvos and acllvltles Pollcles and oble¢tive$ The Charlly known as Bernvlck.upon-Tw88d CorporAllf>n IFre&menl Trust Is a body corporate governed by tWL) IoGal AGIS of Psrliamenl - the Ber¢rflck-upon-Twged Corporation Act 1843 and the Berwick- upon-Tweed Corporailon (Freemen) Aci 1926,. and is subl8cI lo Ihe term$ ¢1 a Scheme registèred with the Charity Commlgslon on th8 4th December 1931. The Act of 1843 selllod and ¢slabll$hod the rlghls of1110 R&sJdenl Freomon and Wldows ol Freamgn of Berwlck- upon-Tweed gnd s&1 down th9 manner in whlch the In¢om& from the Eslale's18nd holdin98 and Investments w89 lo bo dlslrlbuled,, tho Act 011926 made provlslon for the estab118hmonl ol the Trust and th& vogllng of the Eslale In the Trusleos and eslabllshed the monner in which tho Tru81 was lo opgral9, Subsequent arbilrellons have been ¢onoerned In the conslru¢lion of the Acts of 1843 8nd 1926 and the rfghls, P¢)W8r8 anQ dulles ol tha Tru8lee8. Ihelr olfl¢trr$ and olhgr Inlere$l¢d pgrlles. In selllng objectives and planning lor 8cllvilles, the Trust898 have gSven due considgralion lo general guidance publishod by the Charlly Cgmmi88ion relallng 10 publlc benelll, in¢lu¢Ylng the guidance 'Public benelll.. runnlng a charily IP821'. • Straiègl68 lor achigvlng obloctlves The Trustees meet monthly to CDnduct the business of the Charlly in aG¢ordanco with Ihe provlslons of ihe 1926 Act, and the admlnislr2tion ()1 the Trust Is undertakeii on g day-lo.day basis by their clerk (Liam Henry), their A￿Ount8nl Icharles Oakloyl ¢ind thelr Land Steward (Andrew Hamlllonl. The Trusl'$ relalned Lcgal Advisors are Womble Bond Di¢klnson of Npwcaslle.upon-Tyne', th@ir Auditors, Klnnair Assoclales Limlted of Newcasde. upon-Tyne." thèir Ch&rl¢reLI Accountants. Ryécrofl Glenlon of Newcastle-upori-Tyne,' and their Investment advlsors stockbrokers, Brewin Oolphin of NewGa¥t4tr-upon- Tyne. • Acllvllles undertaken lo achleve objectives The bulk ol the Truslges, income Is derived from thèir 8gricullural Est8le and Invtrslmenls. Thg 8gricullur81 land, malnly lo Iha nDrth of the River Tweed and amounllng ID over 2,250 acres. is dlvlded into a number of holdings, Ihe tenan¢ig8 of which are governed by the Agricultural Holdings Acls. The capital value of the investments is £10.g73m. The incomo from the Eslale and investments Is dislrlbulèd to the Guild ol Freemen and their Wldows an(J a number of other beneficiaries In accordance with thè terms of th¢ governlng acts ané lh8 arbSlration$ made Ihereundor. Pago 3 BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achlèv¢m•nts and perfomianca Revlew of activities Gonaral developm6ntg Retall Park 51to - Ihg dgvelopmenl of the lurlh&r retail buildings on the reniainlng Trustèes land has been slgniflcanlly delayed with the progress of the planning application by the major national retailer tsking considerable to corne forward as the relaller's requiromonts sublècl lo change dvring the year. A number of ouistanding issues wllh the newly developed part Of the sile are provlno dlfficull lo resolve. Th$ Trustees had, how8ver, agreed lo enlar Into a "promotion agr88mÈnl wllh the relAII developer and Ihelr conslructlon partner ID beller laci1118le the development of the remaining area in conjunction with the Trustees. retained land al Wesl Hope. West Hope 811é thè m881er pl8nnlng of Ihis18nd, 10 be undertaken a$ p8rl ol Ihe promollon agreement by th& retail developer, madè1Stt18 progress during the ye8r as the focus fell on the development of tha ret811 land. Estat8 managemenl Tho Tru81eeg 89rgad lo gnlor Into an opllon agro•m&nt lor the purposes of a solar farm and assoclal&d batt8ry storage Sile with a third party devgloper on Ihoir land sublecl lo planning permissKJn belno DblaSned and salislaclory gnvironmgnlal Impacl assessment boing cumplelèd. The sale ol Baldersbury Hill farmhouse, the eomplellon ol whlch had been d91ay@d due lo ¢ompllcaiions caused, In the maln. by the damage oc¢asloned lo the prop6rly by Slorrn Arwen and the sub8equenl dealings with the Trustees In8ur&r8 a8 well a8 confliollng VAT advi¢9 r8lallng lo the Ir8n88clion was complelgd Sub8t8nlive progr95s was sllll awaited on The Trustees agreement lo the demolllion of one of tho farm Sleading bulldSngs comprSsed wllhln the Puntons farm lanancy al Wesl Edga Fami and Ils raplacèmanl wllh a now manure store, wllh funding for the steel slrualurÈ and roof still lo be identified. New tenancy ogreements in respect ol We81 Edg8 and Brow ol th8 Hlll wgre prograssed The sale of the small area of land adlolning Conundrurn Farmhouse 88 garden land lo the propeTIy'6 owner8 wa8 comrAeted. The Trustees consldered the purchase of a nelghbouring farm bul after an inspsclion Df the land by the Land Steward and reprosentallves of the Trustees il wsas dgcidod not lo proceed with the maller clue lo the level ol Invèslmènl an¢J work requlred lo brlng Ihg farm up lo full production value An interest was exprgssed by a third party via Norlhuniberl8nd County CoLtncil in r8sp&cl ol land lo thé north ol the Ramparts Bu8iness Park lur th¢ purposes uf a data centre bul the developer eventually chose lo proceed with a sile in Edinburgh, Town Hall Puisuanl to acllons agreed under the pr@viously obtained access audlt report applications werg made for listsd bulldlng Consent for an Internal pl8tfom) ltft ancl alleTallons lo the ground floor eafè SPACÉ. The fundlng for suoh works is yet to identified and the as8isiance of the Town Gouncil has been sought lo identify likely grant funding. Praliminary ¢051s for thè works idenlilied necessary as a rasponse to the access audit were awaite.d from the TrustÈÈs Consèrvation Architéct The works identified th6 pr&viou8 yè8r to th& stone column on the south wesl corner of the portlco had yel lo bo progress8d with the Trustees prefeyred conlractor unable ID proceed ¥vilh the works as planned. Further quol&s for the works are io be obtained as soon as possible Page 4 BERWICK UPON TWEED CORPORATION {FREEMENI TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achlovemènts and p&rformance (Lontinuedl The duck boards on the roof of th& bulldlng were repla¢Ed following a ¢ompolilive tendorlno exerc188 The Tru81088 raoeived nollce from the operators of the telecommunlcallons mast that they wlsh8d lo Impose ngw leaso wilh subslanlial rènt r8duclions the commencement ol which the Trustees ware ab18 to de18y by allowlng eady access lo the building lor ess6nllal work8 lo be carrlèd out by thè (>paralor. Chartor Market Followlng an expr8sslon of inter6s1 from tlie aulhorlly the Trusle&s agrgod lo transler responsibillty for the operation of the Charter Market from Ntrrthumb&rland Covnly Councll to Berwick upon Twe¢d Town Councll under the terms of a long lease. Pago S BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achievements and performancé Iconllnuadl • Invgstment pollcy INTRODUCTION 1.1 The Charlty known as Berwick upon Tw&gd Corporalion (Freemen) Trusl is a body corporatè governed by fvdo local Acts of P¢irllamEnl- the BL&rwick upon Tweod Corpuralion Act 1843 and the Berwck upon Tweed Corporation IFreemenl AGI 1926.. and is 8ubjecl lo Ilie tèrms ol a Schèmè reglslered ￿th the Charlty Commi88lon un the 4th December 1931. 1.2 The finan¢ial objective of the Charity 18 lo al I￿$¢ maintain the long lerm real v&lu8 ol lh8 ass¢lq whilst goneraling a growing Incom8 to fund grant mgking. The inll81ion measure most relevant to ihe Trusl's expendlluro18 the Consumer Prlce Index. 1.3 The bulk of Ihe Tru8le88' Incomè Is darlvad from th8lr agrlcullural eslal8 and Inveslments. The Trust has Ihrge invoslm¥nl PL)rtlolios. As al the dale of this pulicy, Schedule111 wllh approximately £8m, SchedulB 1 &11 with approximately £1.3m. and Schedule IV with £2,2m, maklng a lolal of £13.3m of inv08tmént 88sals. 1.4 The Sohedul8s relalgs to fund¥ Snv83ted from the pro¢gedJ of dlflerent areas ol land owned by the Trust. Schedule l is the Meadows., Schedule11 is the Sllnts Igrazing landl. Incom9 Ironi Ih¢sg two sGhèdules 18 dlslribulod lo Resident Freemon and wldows of freeman,, Schodul¢ 111 relalos lo o large parcel of land lo the north ol the town, wllh income used by Ilie town ¢ouneil', 2nd Schedule IV Is the Treasurers Farm, and hlstorlcally u8ed lo finance the runnlng of the town. 21 INVESTMENT OBJECTIVES 2.1 Tha Cherity segk8 ID produce lh8 b8$1 linanciel ralurn wlthln an 8ccepiBbl8 lavel of risk whlch equa188 10 RBC Brewln Dolpl)in's risk category 6- MDdèrale Inv681menl Risk witSi dn Income and CapSlal Growth invtsslmenl objective. This ipplips to all portfolios. 2.2 The Charity aims lo malnt8in Ihg long-lerm purchasing power of the c8pilal 898in81 inflation whilst producing a reasonable and growlng Sncome. Thls should allow the Trust lo al least malnlain the real value of tho assets. 2.3 There Is no Income largel, 2.4 The managers will a150 aim to al least wnalch the performance ol the major bgnchmark IndiGes Ihel relate to the re8PeCtive asset groups 8.g. Ff Biilish Govemmenl All Securfues IDd&x, iBoxx Corporate Bond 5ndex, FTSE All-share Index and the FTSC All World18x UK) Index, Tha total parformance of Ilie tund will also be compared to the RBC 3rewin Dolphin Ri8k Cotggory 6 Modgral8 Inveslmgnt Risk benchmark. 2.5 The performance will elso be comparad ID the movement in Ihg Consumèr Price Index. 2.6 The Trust adopts a lotsl return appro?ch lo investment, generating the inveslmenl return from inwme and capital gains or losses.11 is expected (hal il in any one ybar the lotal return is insuffieienl lo meet (he budg8t8d grant making expenditure, in the long term the real value of th8 Tru81 will still be maintained in o¢cordance ￿￿th the inveslmènl oblectivg above. Pag# 6 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achlèv•monts and performance Icontlnuedl 31 RISK 3.1 Attltude to rf3k The Tru81 relios on the Inv&slrnfinl return lo fund granl making. Howevèr. gr8nl8 aré generally one-off awards and thè number and valuo ol the86 may vary depending on circumslances. The key r15k lo the long term suslainabillty of the Twsl Is Inllallon and the a8s619 should be Invasled to mliigale this risk ov&r the long term. The Tru$laes undefsland that this is Ilkely lo mean that invg$lmenl will be cgnGenlraled in real assets and that Ihe capllal value will Iluctuala. The Trustees are able lo lolerale vol81115ly of th8 capllal value of tho Trust, as long 88 11 is able to meet ils short term commSlmenls through @llher income or liquld c8pllal 8S581s. 3.2 A8$et$ Th8 Trust'8 a8s&ts can ba inv8sled widely and should be dlver8iflèd by ass8t class, by manager and by securliy. Asset classos could Include cash, bonds. equllles, property, hedge funds, slruclured products, InfrdslrLiclur8 lullds. privale gquily, ¢ommodllie8 and any other asset Ihal i¥ deerned sultabla. The Truslegs are chargtsd with agr8olng 8 suitable 88Sg1 allo¢atlon slral8gy with tho Inve$lmenl managors, whlch Is sel su a¥ lu achlev8 tho ov&i'all Trust Invoslment oblocllvo. RBC 8rewln Dolphln Rl8k Category 6 Benchmark hds been de8m&d J $ull¥ble benchmark and th? current lerg?I w&S9hllngs and ranges ar& sèt out as per below.. A$8Ot ClaB8 Target, O Ranges, '/0 Flxed Interest UK Equi1S•s Over898s Equilles Allern81Ive Investments Property Cash 17 19 49.5 9.5- 24.5 11.6-26.5 42-57 2.5- 16.5 Q-10.5 0-10 3.3 Currèncy The base Cufroncy ol tho inv88lm8ni porllolio is Slerling. Inveslm&nl may be madg in non?Slerllng assets a5 long &s the tissel allucalion remains within the rangos permilled. 3.4 Crodlt Th14 Charlty's cBsh b81an¢e¥ shoLild be doposlled wllli InslilulSon8 with 8 minimum ratlng of A- or Invast¢d in a dlverslfled montry market fund. Deposils should be spread by countorparly. Bond exposure should largfrly be via collectives although direGI bonds are also pem)Stted. LIQUIDITY REQUIREMENTS 41 4.1 The Charitys dislribulions can be fund8d frDm both Income and capllal. 4.2 Al least 70% of the assets Should be In Investments that oan be reallsed wllhln three months. 4.3 There Is no mlnlmum that should be kept in Gash at Èny glven Ilme. Page 7 BERWICK UPON TWEED CORPORATION {FREEMENI TRUSTEES TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achievement5 and pèrfornianco Icontlnuedl TIME HORIZON 5.1 The Charlty Is expected lo exlsl in perpelully and invBslmenls shc)uld be managed lo meet the I nve8tment obj8elivo and ensure this sustainability. 5.2 The Charity Gan adopt a long term Inve81monl lim& horizon. SUSTAINABILITY POLICY 6.1 The Trustee8 wish lo adopt industry b051 practicè gnd are commilted lo investing a sustslnable manner. Ths Truslaè8 expect the Snvestmenl manager lo inlègr2le onviionm8nl81, soclal and governance IESGI Gonsideralions Into Inv&slmenl managempnl proGesses and ownership pracllc8s, 6.2 Th8 Trust's assets should be Invesl8d In Ilne wllh Ils alms. Thg Iruslees do not wlsh lo adopt an excluslonary policy. bul indlvldual Inveslm8nls may be excluded if perceived lo confllct with Ihe'frusl's purpo88. 8.3 Th8 Trust8&8 nol8 Ihal pooled funds are used by many Inv6slor8 looking lo accèss a wlder range of Stocks and Improvg div8rsiflcalion. While InveslSng In PODled funds me.ans the charlty could have IndSre¢l èxposurg 10 8Dme of r8slric19d ar80s, Ihalovgl ol polonlial exp05uro is considered immaleri818nd not In conlllct wllh Ihg charSly's alms, 71 MANAGEMENT, REPORTING & MONITORING 7.1 The Charlty has appolnled 8 prolesslonal InvèslmÉnl man89omènl firm lo manage the Inve81rnenl 8S8ets on a discretionary basis in Ilne with this policy, Inveslmenl manag£:rs provide custody ol assets. Managtrrs aro réquired lo produce a v8luallon and performance repori quarlorly, Thg Charity has nominalgd a Ilsl ol aulhorlsed slgnalerl89, Iwo ol whom are required to sign instructions to tha Inveslmènl m8n8oar. 7.2 Thg truste88 h8ve responsibility lor ogrèèing slralagy and monitoring the Investment assets. The investment manager3 wlll presehl lo the Irusleas 81 lèast annually lo ravièw the p¢rtfolio, including an analysis of return, rSsk and 88s61311oc8llon. P8rform8nca will b8 monltor8d 29alnst agreed benchmark APPROVAL AND REVIEW Thls Investment Pollcy Slatern&nl was prepared by the Trustoes of Bernick upon Tweod Corporation (Frogmonl lo provide a Iramework for the m8n3gemenl ol ils Inveslmenl 8ssels. 11 will be revSewed on an annual bas1s lo ensur& conllnulng 8ppropFialeness. Page 8 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achievements and p6rformance Icontinuèdl • Investment pgrfomiance The Trvslees soek lo achieve the besl lingn¢ial rèturn within 8n accgplable level of risk, from B eomblnallon of inoome and capltal growth. The charity Is a long term Invostor and, on profèsslonal advlce, holds a dlverslfled portfolio of equllles, bond5, and property, with some cash. The partfollo lolc]I return was +3.IYo for the year lo 31 March 202512024.. +12.4%>. Thls compares wllh total returns for Ihe foliowlng Indices.. Year to 31.03.25 +8.50 -1.2% +2,30 +10,5•/0 +5.20/0 +6,2V. +4.5% Year to 31.03.24 + 13.4¢10 -O.OOl¢ +7.4¥& +8.4¥0 +21.4% -3,5Yo +6.3% BD Risk Category 6 Benchmark FTSE British Governmenl All Stocks Ind8x Iboxx £ Corpor&le 8ond Index FTSE All Sharg Index FTSE All World Ex UK Indax Morning Slar Property InLlex IA Targ8led Absolute Return Indox The Brawln Oolphln Risk Calogory fj Benchmark comprisès 3.5% UK Gllis, 2.5% UK Bonds. 11 % Oversg Bond8, 17110 UK Eoullies. S1,51h Overseas Equllie5, 3¢ID Properly, 90/0 Alternativ¢$ & 2.6Yo Cash. Glob81 equili05 conllnuod lo make new hlghs al the 51arl of tho year support8d by rgsillence In the US oconomy 8n4 the Incr@asing prospects ol a 'soll 18nding'. There wa8 8 clear dlvergence In US ?nd Eurozone market p¢rformanc¢s and, while tho S&P SIIO and NASDAQ Composlle Index9s reachèd record hlghs as Inv95tors continu6¢ pilin9 into lech stock8, Eilro￿ 9nd8d bbrely in the black. However, the momgnlum buS11 up over the previous cauple ol months stslled In the laller half of July snd, after the gltsb81 'Crowdslrlke' nulTrJgo, invoslars bagan lo look lor all8rn811ve ways of pl8ylng Ihe spread of arlificlal Inlelligencp IAII, August was also %omeililng ol a rollercoaslor ride as, wlll) Inflallon concern8 lalllng, a US employment report came in below forec8s1s lor only the fillh lime in the previous two y&ar6. The possibllily of US recesslon became a greater concern and was initially thought lo be the catalyst for the sell.off In technology stocks. However, wlth US rates sot lo decline the Ilairly long running) dollarlyen Garry Ir8do became less attracllve and, In early Auousl, the yen started lo oppreclale very fast. This pul pressure on Investors being squeez9d out of the Irade lo reduce posilions and the Japanese TOPIX index f911 a stunnlng 12Vo in a 81nglfj ses$lon. The knock-on 9ff@¢ls wer9 felt across global markets and th8 gains made by semi-conductor and Al- related stocks wgro particularly largelod. At the beginning of November th& aolion was dominated by the US pre8identi91818clion. The reaction lo th8 results w8¥ largely inluilive and equilie8 gengralty benelitod, rèllecllng the pr08pect of less regul8llon and polenliolly lower taxes, However, Ihe @rralic nature ol President Trump warranted an increased pramlum for rtsky assets and the Imposition ol Lorills, which coul¢ reducf* global growth ond r&fu81 inflation, and saw treasury ylelds riso ghBfpIy. 11 was always Ilkely lo bo a lively slf)Yl lo 2025, wllh thè inaugurallon ol the most unorthodox US prèsldenl In Ilving history bul majoi markets perloimed well in January. Even so, th@ performanc8 ol the US equity market had boen r)roadenlng out sinc@ the eloctSnn irb Nnvernbpr and, allhoiigh 2024 had been a strong yoar for th 'Magnificent Strven, megk place after the result CLinfirmed he would have a second lem, as investors r8aGied lo th? prospect ol anlicipated benefits. such 88 reduc8d rogulalion and the possibility of tax Guls. Howtsver, the bump became a slump gnd, from mld-February, there was a sharp sell-off for global oquilies, driven alm081 entirely by Ihe US. The most obvious rationale for the sell-off was trad8 larrffs 8nd the dramatic o$ealation In Trump's global trade war. Pa9è 9 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Achievementg and p8rformance Icontlnuedl A handful of UK stocks hav8 weighed on relative performance. The UK market is closgly linked to thg performance of value versus growth, and, whilo Ih(>rè are reasons lo believe that the outlook lor the growth stoe is brighter, wg consider that some dlversificalion conlinu&s lo mako sense. The dtsmeslic allocallon also makes a slgnlficanl oonlrlbulion lo portfolio income. Financial rovl•w Golng concern Aft6r making approprlale enqulries, the Trustees have a reasonable expeclalion Ihal Ihtt Charity has 8dequ81& resourcès lo ctsnlinue in operational existence lor the foreseeable future. For this reason, Ihey conllnije lo adopl thè golng concern basls in preparing Ihe financial slat8mènl&. Further d8iails règ8rding the 8doplSon of the golng cone6rn basis can b8 found in Ihe accounllng policies. • Reserves pollcy At 31 March 2025, the Charity had tolal fund8 01 £30,582,851 12024.. £29,975,628), all ol whi¢h ar9 endowm9nl funds. The ondowmonl funds consist ol properly hald lo generale liilure Incom8. There are no r8slricled funds al the flnancial yo8r end as all surpluses are pald out lo benefl¢i#ri¢s. The Trusle&s recognlse that the lovel ol roscrves and balances musl be approprlale for the flnanclal ehallanges that the prevalllng and lulure 8nvironm8nl may present The Trustees 8lso recognise that the level of rgserves 8nd balances ara ID be maintained al lev81 approprSBlf) for the organizalion. The Trustees w511 comply wllh Ihe18w and all sl8tutory guldanGe rel81ing to Ihe mainlen8nGe ol reserve8 and balances. Slmllarly il wlll r&far lo non-statulory 9uid2nce wherever1115 available. The Trustees wlll In cerlaln clrcumslan¢es consléer the creallon of reserve5 for speclflc purposes end for a definecj lime period. Tliese r088Ne8 8re Galled Earmarked Reserves and ￿￿11 be approvad by tha Tiusle85. Tha lovol ol a specilic feserve, Ils purFose and a procgss lo aiilhorisg rg19asg of funds ￿11 b9 dgflned al the lime of ils proposal. • R¢vSew of thg flnanclal positlon at the year end The income of the charity lor the year amounts lo £783,156 12024.. £806,687) and Costs of £783.156 12024.. £806.6871 giving 8 surplu$ of £nil12024.. £nill. EnLlowmenl funds al the year end 8mounl lo £30,562,85112024.. £29,975.6281. • Materlal Inve8lment8 poII¢y The Freemen Trustees have transferred the responslbllllles for the management of Investments Io 8 Ihlrd party with (he appropriate lev8ls of c8P8ciIy 8nd expertise to undertake this role. The Gurrent invastmenl m8nag8rs were appointed folkjwing a c0rnpeti￿ve lender process. Page 10 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Prln¢lpal rlsks and un¢&rlalntl&s The Tru818e6 have ossessed the maSor rS$ks lo which the Ch8rily Is 8xpo8ed, in particular those related lo the operations and finances of the Charlly, and are sallsfled that systems and proa￿ule$ are In place lo mltlgate our exposure lo the major risks. • Prlnclpal fundlng The principal source of funding is deriv9d from 8 combination of 18ndlproperly rental Income and intèr&sl recelvod from Inveslmenls. Structure, governèneè and man8gemgnt • Constltullon BerwlGk upon Twegd Corporation IFf8emenl Trusloes Is ? regl8lèred ch2rilyi number 222154, and is con$llluled under & Trust deed. 11 Is r8gulal8d by thè Bgrwlck upon Twged Corpor811on IFr89monl Acts 1843 and 192e. • Method8 of appolntmont or gloctlon of Tru8to•$ Thg Tru51•88 were Incorporated a8 a body by 8grwlck-upon.Twaed Corporallor* (Freemen) A¢1 1926. The Trusleras Cornm11188 Lomprbses of livo nDn-Irpemen ?ppolnled by 8erwick-upon.Twegd Town Coun¢ll Sn Novembfir ea¢h year and 1Svg Frfyemen (who may be ftilhèr resident or non-residanl In thè Borough) elected by the Freemen in October or November 8ach year. • Organlsatlonal structure and decl8lon.m8klng poll¢le8 The Tru8le88 servg in accordance with the gov8ming document and hold requ18r meetings Ihioughout the year. The Trust and Ils property are adminislered and managed In accordance wllh th& constllullon by iho Trusl8è8 Commllleo, Poll¢les qdoptgd for the Indu¢llon and Irainlng of Trusteg A basic 8xpl8nalion of the rolos snrs dulles DI a Trus188 are provlded upon appolnlment. This In¢ludes Information and documèntallon relallng lo both thè hlslory and governance of both th& Truslees and Gulld of Freemen, • Flnanclal rl$k managemgnt Tha Trusloes have assessed the major risks lo which the Charity is exposed. in parlicul?r those related lo the operallons and flnancps of the Pharlty, and are salisfi*d that systems and procedures are In place to mlfjgale ¢xposur& lo the major risks. Pagg 11 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Plans for future period5 The retail sile al North Road and the r&maining land al Wasl Hope present the maSn development opportunilios for thè immediate future although the Trustees continue lo explore thè development polenllal ol Ihelr farm premises whonèvèr the opporlunity aris8s. Statement ot Trustees. respon51bllltles The Trustees are responsible for preparfng the Tru81ees' reporl and Ihe financial èlatèments in accordance wllh appllcable Isw and United Kingdom Accounllng Stsndards Iunlled Klngdom Gen¢rally Accopl¢d Accounllng Pracllcel. The law 8ppSkabl$ lo charilias In England & Wales requlr&s the Trustees lo prepare financlal slalemenls for each Ilnancial which give a true and fair view of the 81ale of 8f18ir8 of the Charity and of ils incoming resour¢tss and applicalion of rBsources, Includlng ils Ir¢COm8 arid expendllure. lor that p8riod. In preparing th880 linanclal $181emenl8, th8 Trustees aro requir8d to.. 9glecl 8uilable aGGounllng policies and then apply them consi8lenily.. observe the methods and principle8 of the Charllies SORP11-.RS 1021.. make judgments and accounllng esllmale¥ that arg rg88onwble 8nd prudent", stale whether applicablg UK Accounting Standards IFRS 1021 havè beon lollowad. subject lo any malerSal deparlurgs disclosgd and explained In th8 financial slalgmonls,, prep8re the linanGio1 Stolements on the guing conc8rn b8sls unless 51 Is inappropriole to prgsume that the Charity wlll CC*nllnue in business. Tho Trustees are responsible for keeplng ad6qu816 a¢¢ounling re￿rIS that 8r¢ $ufflcl&nl 10 8how and explaln the Charllvs transactions and dls¢lose vhlh reasonable accuracy al any lime the flnanclal poslllon of the Charlly and enable them lo ensure that Ihe financiol slolemenl3 comply wlih th¢ Charities Act 2011, the Charlty IAccounls and Reports) Règulallons 2008 and thè provlslons of the Trusl deed. They arè 8160 r8spon8ible for Safoguarding the assets of the Ch8rily and hence for taking reasonable steps for the 9￿VentIOn and detection ol fraud and other irregularllies. Dlsclosure of Informatlon to audltor$ Each of the persons who arg Truslg8$ at thg lime wh8n this Tru8lees' rèport is approved has conflrmod that.. so far as that Trustee Is aware, there Is 110 relevant audit informallon of which the Gharill8 audllors are unaware, and that Truslea has lak8n all the Blop8 Ihal ￿ugh1 lo have beon lakon ag a Trustee In order lo be aware of any relov8nl audll InfDrmaUon and lo eslabllsh that the charitys auditors are awar¢ of Ihal inform811on. Page 12 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR END 31 MARCH 2025 Audltors Tho auditors, Kinnair A9s0ciales Limiled. have indiL8led Ihgir willingness to continue In oflicg. Thè deslgnotsd Trustees will propose a mollon reappolntlng thg audllors al g meeting ol the Trustees, Approved by order ol the meinbers of the boJrd ol Trustees on 3 December 2025 8nd signèd on their behalf by.. f4kl Coun¢lllor T. Stewart Ichair ol Trusleesl C.R.J. Oakley IAccoiJntant to the Trusleesl Pége 13 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES Oplnlon We have audited tho financlal stslemenlg of Berwlck upon Tweed Corporallon (Freemen) Trustees Ilhe 'charityl for the year er)ded 31 March 2025 whi¢h comprise thè Stalem8nt of lin8n¢l81 aclivilios. the Balance sheet. the Statement of cash flows and Ihe related notes, including a summary ol slgnificanl accounllng pollcl88. The rinan¢iBI reporting framework that has been 8pplled in their prep¢if3tion is applicable law and United Kingdom Accounting Sland8rds, including Financial Reporting Sl8ndard 102 'The Financial Reports'ng Sl8ndard applicable Sn the UK and Republic of Ireland, IUnil$d Kingdom Generally ALCtipled Accouiillng Practlcel. The financlal stalomants have been pr8par8d in accordance with AccDunllng and Reporllng by Chadlles preparing Ihelr accounts in accordanco with the Financial Reporting Standards applicabla in Iha UK and R6public of Ireland IFRS 1021 In praference lo Ihe Accounting and Reporling by Chari11è8.' Slalemenl ol Recomm8nd6d PraclSce188ued on 1 April 2005 which Is referred lo in the extant regulations bul has been wllhdr8wn. Thls h88 been done In order for the aGGounls lo pr)vide a true and falr view In accorclance wllh the Generally Acc&pted Accounting Pracllca effective for reparling perlods beginning on or sll¢r 1 January 2015. In our opinion lh8 flnancl81818lemenl8., 9Sve a true and fair vigw of th8 8la18 01 th8 charill8 affairs a8 al 31 March 2025 and ol its incomlng r¢sourctrs snd appllcallon ol resources lor the year then anded., have begn properly preparad in accordanGe wllh Unilod Kingdom G¢ngrally AGG9plgd Accounilng Prectice,. and havg been prepared In 8ccord8nce wllh the requirements ol th8 Charities Act 2011. Ba$lg for oplnlon We eonducled our aud51 In accordance ￿th Inlern8llonal Standards on Audillng IUKI IISAS IUK)) and appllcable law. Our r6sponsibili1les unclor those standards are furlher described Sn tho Auditors, rgspDnsibilllie8 for the audll of the flnanclal statements secllon ol our repDrl. We are Ind8pendenl ol Ihe oharity In accordance wllh the ethlcal requirements that are relevant lo our gudll ol the financial $lalementq in the lJnil8d Klngdom, Includlng the FSn8ncial RepDrting Council's EthicAI siÈndard, And we have Iiillillpd our olher ethical r8sponslbllltles In accordancg with these roquiroinents, W¢ believ¢ that th¥ audit dvidtjnce wa have obldined is sufficient and approprfate lo provlde a basis for our opinlon. ConclusSon$ ralatlng to golng concorn In auditing tho financial statamoni$. we have con¢lud&d that the Truslee8' U88 of the golng conc$m basis of accounting in the preparation ol the financial slalemenls is appTopriale. Base(J on Ihe work we have performed, we have not idonlified any material uncertainligs relating lo events or conditions that, Indlvidually or colleclively, may cast significant doubl on tlie charity's ability lo continue as a going ctsnc6rn for a period of at18asI Iwelve months from when the fln8ncial statements are authtsrised for issue. Our re8ponsibililie8 and the r88ponsibilitie3 of the Trus198s with rospèct to going concern are d98crib8d in the relèvant 8e¢Uon8 ol Ihls report. Page 14 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION IFREEMENI TRLISTEES ICONTINUED othgr infom)atlon The olhor Information comprls¥s the informatlon Inclu¢Jed In the Annual rèport olh6r than the Ilnanclal 31alemenls and our Auditors, repoil Ihereon. The Trvsiaes are responslble for the other Information conlalned wllhin the Annual report. Our oplnlon on the finan¢lal 51alom&nls doas not cover the other Inlormallon and, excèpt to th8 èxl&nl olhoThvlse gxplicilly Slated in our r8porl, we do nol 8xpres8 any form of assurance conclusion Ihereon. Our responsibility 15 to read the olhor inlormalion and, in doln9 $0, consider whethèr tha olh&r information Is materially Inconsisl8nl with tha financlal slaloments ()r our knowledge obtained In Ihg Course of the 8vdil, or olh8rwls& appoars lo be m8lerially misslaled. 11 we Sdenlily suoh rnalerial inconslslencies or apparenl m#l*ri81 mlsslalem$nls, we are requlred lo del¢rmine wh&lhor Ihls gives rl8e lo a material misslal&mènl In the financlal ststemenls Ihemselvgs. If, based on Ihe work w6 have performed, we Conclude th81 thère 18 8 m8terS81 mlsslatemenl DI Ihls other informallon, we are requlred lo report that lacl. We hav8 nothing lo reporl in th18 rag8rd. Matters on whl¢h we aro roqulrèd to report by f*X¢*Ptlon e h8v6 nothing to report In resp¢th of the Iollowlng m8ller$ where the CharS1188 (Accounts and Reports) Rggulailons 2008 requlres us lo reporl lo you If, in our upinion,, the Inlormgllon glven In ihe Truslee8' r￿port 18 Inconsislgnl in any material rgspecl with the financlal 81glern#nlg,' or $ufliclenl accounting rr*cords h$v¢ not be8n kepl,. or the financial 81alemonls ara not In aor88menl with the accounllng r&cords and roturns; or we have not racelv8d all the InlormallDn ai)d axplanallon$ we requlre for our 8udlt. R•8pon8lbllllles ol trusteès As exp18in8d more fully in thé Trustees, responslbili119S Statement, the Tru81888 ￿sponSible f¢r the prep&r811on of the fln8nclal slalemènls which give 8 Irua and falr vlew. and for such Intern81 control as the Truslges determlne is ncce8sary lo onable the pr8par811on of linanclal staiemenls that are fre$ from materi81 mis8latemp.nl. whplhftr dije l() Iraurs or error. In preparing the flnEn¢ial sl&lerrients', Ilie Tru81ees responslhle for asgessing the charSiis ability lo conllnue as a going concgrn. discloslng, as applicablg, mallerg rglaled lo goin9 concein and uslng the golng con¢&rn basis ol accounting unless the Tru3lees either intend lo Ilquldale the Charity or to ceaso operatlons, oi h4ve no reallslSc 8liernalive bLII lo do so. Page 15 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION (FREEMEN} TRUSTEES ICONTINUEDI Audltors, responsibiliti•s tor the audSt ol th9 flnanclal statements We have beon appointed as auditor under sgLII(>n 144 of the Ctri%)rllies ALI 2011 and rgporl in accordance wllh the Act and relevant regulations made or having offecl ther8under, Our oblecllves are lo obtain reasonablo a8suranc& about whether the financial slalem8nls as a whole are free from material misslalemenl, whether duo lo fraud Of error, and lo issue an Audiltrrs, rèport that includes our oplnlon. Rèasonablè assurance a hlgh Itvèl ol assuranc8, bul Is not a guarantee that an audit conducted in accordance with ISAS IUKI will alway5 delecl J male>ri31 misslaleinenl wliei) il &xisls. Missldlemenis can arise from fraud or error and are con8idere(5 material il, In(Jividu8lly or in the aouregala, Ihey could reasonably b expected lo influance the economic decislon8 01 users taken on the basis nl ihese financial slalements. Irreguladlies, Including fraud, are in$lances of n¢n.complianc8 wilh laws and regulallons. W& deslgn proceduras In line with our r88ponsibilllles, outlSned abovs, lo delecl material mi881alemenl$ in re8pecI ¢1 irregularities, includinj fraud. The éxlènl lo which ovr procedures are capable ol delecllng irregularitl98, including fraud 18 detsiled below.. the gngagomont partner ensured that the ongagemenl 198m collecllvgly had the approprlale compot#nc8. ¢apablllllo$ and 8k1118 to Id6nllfy or recognl$8 non-compllance wllh appllcable law8 and r8guletions', We ider)lilied the law8 8nd regulallons appllcable lo th& Charity through discussions wllh Iruslaas and Other management, and from our commerLl¢il knowledge and expedence ol the charlty 8eclor,' wg focused on spgcifl¢ laws and r¢gul?tions whlch we considered may hava 8 dir&cl malÈrial effect on Ihc financial slalomenls or tho operations ol the Charity, including the Chaiilies Act 2011 el s8q., the Charilles (Protecllon and Social Invgslmenll A¢1 2016, th¢ Trustee$ A¢1$ 1925 and 2000 ond Charily Commlsslon regulatlon.. we 8SS8ssed the exlenl of compliance with th& laws and regiilalions identified above through making enquirles DI managemenl and Inspecllng Ingal c.orr&8pt)ndAnre,' ?t nd we ensured that the identified laws 8nd iegul81ions were communiculed wllhin Ihe audit 188m regu18dy and the team remalned alert lo ins18nces ol non-compllance Ihroughoul the audll. We 8ss&ssed the susceptibility of the Charlty's lin8ncial $t$lgm9nts lo malgrlal mls$iatemgnL, Includlng obtalning an understanding of how fraud might occur, by. - making anquirles of mon8gemenl as lo wh9re they cgnsidered Ihorg was $u$cgplibilily 19 fraud and their knowledge of actual. suspeclad and Blleged fraud,. and onsidering the internal controls in place to mitigdle risks ol fraud und non-CDmplignce with19￿ ond regulallons. To address Ihg rlsk of fraud through manag9mBnl bSas and overrlde of controls. we.. P8rformgd analytioal procedurgs to identify any unusual or unexpected relats'Dnshlps', lesled lournal entries lo Sdentlly unusual Iransaclions., and assessed whglher judgemènts and assumptions made In d8terminlng the accountlng estlmal8s s81 out In the notes lo th8 financial slalemenls are Indlcallvg of polenllal bi8S. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed pro¢èdur?s whlch Include, bul are not limlled lo.. ?gr#elng Iln4nGidl ¥tslem?nt di¥c108ure8 lu underlying supporlinu doGumenl8tlon', reeding the minutes of meetings of those charggd wilh governan¢o", enqLJiring of m2nageme>nt as to dclual 2nd potential litigation and claims,. and revi9w(ng ¢o¥respondencg with HMRG, relevanl regulators and Ihe Charity's legal 8dvisors. Pagg 16 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES ICONTINUEDI Th8r@ are inherent limilalions in our audit procedures described above. The more removed that laws and regulations are from Ilnancial Iiansaclions, the18ss Ilkely il Is that we would become awaro of non.compliance. Audiling standards also limit tho audil proe6cluies required lo identify non-compllance with laws and regulalSorss lo enquiry of th8 Iruslw8 and other management and th@ Inspection of rggulalory and legal corrgspondence, if 8ny. Malerlal misslalemenls that arlso er 2025 K¢nnair Assooiale$ Limited arè eligible lo ocl #s auéllors In terms of geelion 1212 01 the Compahles Act 2006. Pa91) 17 BERWICK UPON TWEED CORPORATION (FREFMENI TRUSTEES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 PIIARCH 2025 Endowment funds 2025 Re$trl¢ted funds 2025 Total funds 2025 Total funds 2024 Note Incoma and ondowm•nt$ from: Investments Other inGome 735,048 48,108 735,048 48,108 675,003 131,684 Totul Income and endowm&nt8 783,156 783,156 806,687 Expendlture on: Ralsing funds Chgriiable acllvllles 90,584 892,572 90,584 692,372 82, 124 724,563 Total •xp•ndltur• 783,156 783,156 806,68Y Not Income b•foro nfyl galns on Inv9Stnignls N&1 galn8 on Investments 587,223 587,223 2,068,376 Net movgmenl In tund$ 581,223 587,223 2,068,376 Rgconclllatlon of funds: Total funds brought forward Nel movement in lund$ 29,975,628 587.223 29,975,628 587,223 27,907,252 2,068,376 Total funds carr5gd forward 30,562,851 30,562,851 29,Q75,628 The Slalemanl ol flnan¢lal advilies Includes all golns and losses recognlsed In the year. Th8 nol88 on page8 2110 41 form part of th88e flnancial stalemenls. Pagg 18 BERWICK UPON TWEED CORPORATION IFREEMENI TRUSTEES BALAMCE SHEET AS AT 31 MARCH 2025 2025 2024 Notg Flxod a$set$ Heritage assols Inveslmpnls Investment prop&rty 16 17 3,770 10,972.919 19,750,000 3, 770 70,305,6Q5 19,825,000 15 30,726,689 30, 134,375 Current as$trl$ 08blors Cash 81 bank and In hand 1R 124,428 732,727 184,777 702, 165 857,15S 866,882 Current1Sabllltles Cr8dllors,' amoun18 fa111nq due wSlhSn one year 19 11,020,993) (1,025,629) Net curront Ilabllltley 1183,8381 (158, 747) Total a88et81088 curront Ilabllltlo6 30,562,851 29,975,628 Total nèt as$gt8 30,502,851 29,975.628 Ch8rlty fund8 EndowmRnl funds 21 30,562,851 29,975,628 Total funds 30,562,851 29,975,628 The linallcial statements were approvad and aulhorised for issue by the Tru$19es on 03 Dgcember 2025 and signed on Iheir behall by.. flQ -2•J Counclllor T. Stewart (Chair of l-ru%leesl C.R.J. Oakley (Accounlanl to the Truslee51 The notes on pages ?1 10 41 form part of these lingncinis arft prepsred in Sierling 1£), which is the functional curr8ney ol the Ch8rS1y. Monelary dinounls in Ihests linanGlel slalemonls aro rounded lo ihe nearest £. 2.2 Golng concorn The charllablo Irusl has cash resources and no r¢qulrement lor external fundlng. Thè Iruslees have reasonable expectailon that the charitable Iriisl has adequate rgsources to Gonlinu6 in operational exl81@nce lor the loresaaable future. The.y c,onlSnue lo belleve the going concern basls of accounllng is appropri8le in prt>iiarino 1119 annual Ilnancial slalgmonls. 2.3 Incomg All Income Is reco9niEed once the Charity has 8nllll•menl lo the incomo, 11 Is probgbl8 Ihat Ihg Income wlll be r$ceived and Ihe gmounl ol Income receivable Gan be measured reli8bly. Income tax recoverable in r81815on lo investment Income is recognised 81 th¢ lime the Investmgnl incom9 is rec@Ivable. Other incnme15 r&cognised in th8 p@riod in whT¢h il is receiv8bl8 and lo thè extent the goods have been provided or on completion of the service. Page 21 BERWSCK UPON TWEED CORPORATION IFREEMENI TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2025 Accountlng pollclgs Icontinuodl 2.4 Expgndlture Exp@ndilure is recognlsed once there is a legal or conslruclive obligation lo Iranster economic benefll lo a third party, 11 Is probabl8 that a transfer of economlc benofils wlll be required in settlement and the amount of the obligation can be measured reliably. Expenditure is Glassified by aclivily. The ¢osts of each acllvily ar8 made up of the lolal of direcl costs and shared costs. including support Costs involved in und6rlaking 88ch activity. DifeLI costs allribul