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2024-12-31-accounts

HERTFORD BRITISH CHARITABLE FUND (previously the Hertford British Hospital Corporation, Paris)

ANNUAL REPORT OF THE DIRECTORS

FOR THE YEAR ENDED

31[st] DECEMBER 2024

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

1 REFERENCE AND ADMINISTRATIVE DETAILS

Name Hertford British Charitable Fund, previously called the Hertford British Hospital Corporation, Paris and, hereafter, indifferently, “HBCF”, “the Charity” or “the Company”)

Charity number 248 198 Company number 00 878 934 Principal office 3 rue Barbès, 92300 Levallois Perret, France Registered office UK 13th Floor, One Angel Court, London EC2R 7HJ, United Kingdom

1.1 AUDITORS

The Charity’s auditors are:

1.2 BANKERS AND FUND MANAGERS

The Charity’s bankers in 2024 were:

1.3 SOLICITORS AND OTHER LEGAL ADVISERS

The Charity’s legal advisers throughout 2024 and to date are:

1.4 INDEPENDENT PROPERTY VALUERS

The Charity’s independent property valuers throughout 2024 and to date are:

2 DIRECTORS, TRUSTEES AND BOARD

The Directors of the Company, the Trustees of the Charity and the members of the Board serving during the year and since the year end (collectively hereafter “the Directors” or, indifferently, “the Trustees") were as follows:

Christopher Wicker, Chair (renewed for three years as Trustee and 2 years as Chair at the 21[st] June 2023 Trustees’ meeting, the mandate as Chair was extended to 3 years ending in 2026 at the Trustees’ meeting held on 22[nd] January 2025).

Dr Julia Bache

Susan Cheyne, Vice-Chair ( whose mandate as Vice-Chair was extended to 3 years ending in 2026 at the Trustees’ meeting held on 22[nd] January 2025).

Stephen Cowen

Sandra Esquiva-Hesse

Ian Gosling (renewed for three years at the 21[st] June 2023 Trustees’ meeting)

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

Richard Hallows (since 1[st] January 2025)

Julia Howes (since 1[st] January 2025)

Paul Johnson-Ferguson, Honorary Treasurer Matthew Kay (since 1[st] January 2025)

Ian McDonald

Richard Seguin

Peter Terrell (renewed for three years at the 21[st] June 2023 Trustees’ meeting)

2.1 TRUSTEE EMERITUS AND SUPPORTERS’ COLLEGES

The Annual General Meeting held on 21[st] June 2023, created two colleges:

COMMITTEES AND WORKING GROUPS

The Directors are allocated to the various working groups and committees as shown below. The Chair and Vice-Chair are considered ex-officio members of all the Committees and the Director General (see 5.4 below) is a guest at all meetings.

2.1.1 PROPERTY OPERATIONS AND STRATEGY COMMITTEE

Stephen Cowen, Chair

Patrick Deedes (Supporter) – from 22[nd] January 2025

Peter Terrell, Vice-Chair

Christopher Gilmore (Trustee Emeritus)

Paul Johnson-Ferguson

Richard Seguin

Sandra Esquiva-Hesse (ex-officio as a legal subject matter expert)

2.1.2 FINANCE, RISK, AUDIT & GOVERNANCE (“FRAG”) COMMITTEE

Paul Johnson-Ferguson, Chair

David Blanchard (Trustee Emeritus)

Stephen Cowen

Ian Gosling (ex-officio as a legal subject matter expert)

Ian McDonald

Christopher Spencer (Supporter) – from December 2024

2.1.3 INVESTMENT SUB-COMMITTEE (of FRAG)

Paul Johnson-Ferguson, Chair Edward Archer (Supporter) Stephen Smith (Supporter)

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

3 GOVERNING DOCUMENTS AND OVERVIEW OF THE HISTORY OF THE CHARITY

2.1.4 NOMINATIONS COMMITTEE

Susan Cheyne, Chair

Dr Julia Bache David Blanchard (Trustee Emeritus) Peter Terrell

2.1.5 CHARITABLE GIVING COMMITTEE

Ian McDonald, Chair Dr Julia Bache Alicia Suminski (Trustee Emeritus) Bridget Terrell (Trustee Emeritus) Louisa Hobday (Supporter)

Stephanie Frackoviack (Supporter) – from March 2024 Olivia Bedier (Supporter) – from 20[th] November 2024

2.1.6 WELFARE COMMITTEE

A Welfare committee was formed in January 2025 to oversee the activities previously carried out by the British Charitable Fund (see note 6.2).

The Hertford British Hospital (HBH) was founded in 1871 by the late Sir Richard Wallace (referred to as “the Original Charity”). The Company is a registered charity, incorporated in the United Kingdom in 1966 and registered in France in 1970 as a non-profit organisation which manages the assets of the Original Charity and those assets received subsequently as gifts and donations. The Original Charity’s hospital activity was transferred to the French charity l’Oeuvre du Perpetuel Secours (hereafter “OPS”) with effect from 1[st] January 2008 and combined with the latter’s own hospital activity to form a joint hospital under the name Institut Hospitalier Franco-Britannique (hereafter “IHFB”).

With effect on 1st March 2019, the activity of IHFB was transferred to a joint venture in the form of a Groupement de Coopération Sanitaire (the “Groupement”) created by the Fondation Cognacq-Jay (the “Fondation”) and OPS after receiving the approval of the French Health Authorities. HBHC sought and obtained the approval of the Charity Commission to the transaction.

In 2019, the Fondation increased its percentage ownership in the capital of the Groupement to 99.67 % and reduced OPS’ share to 0.33 %. HBHC’s obligation to contribute to the funding of the continuing deficits of the IHFB came to an end on 31[st] December 2019.

In September 2020, the Fondation injected fresh funds into the Groupement and, as part of its restructuring, the OPS withdrew from participation in the hospital, whose activities are henceforth managed solely by the Fondation. A new agreement was entered into between the Company and the Fondation making the hospital building available rent free until September 2025, with a potential extension until 2026. However, given that the Fondation’s building project on the rue Kleber site was running late, and that it was anticipated that the maternity, geriatric and other activities housed in the Company’s building will not move to rue Kleber until 2027 at best and potentially 2028, the agreement with the Fondation was extended on 13[th] December 2022 and now runs until 2028.

As part of the reorganisation of the hospital activity, on 1[st] January 2021, the Corporation sold its remaining medical activity (the “Centre International de Dermatologie” or “CID”) to the Fondation for a symbolic sum and all the employees attached to the CID were transferred to the Fondation.

Accordingly, the Charity ceased to provide medical services on 1[st] January 2021 and has provided no such services since that date.

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

4 OBJECTIVES

The objects for which the Original Charity was established were to operate a hospital in or near Paris for the treatment and relief of persons suffering from illness, injury, disease or other infirmity or otherwise requiring medical attention, being primarily British residents, as well as serving the local population.

The objectives of the Charity remain, in all essential respects, aligned with those initially laid down by the founder but they have evolved over time. These objectives, initially focused on the medical treatment of patients of British nationality resident in France or of any other nationality, but with a preference for the former were first extended to the provision of other health services and retirement homes. Then, in 2006, the objects of the Original Charity were further expanded to include the protection of health by such means as the trustees consider appropriate.

In 2023, the Charity brought its objects up to date and they now state that the objects of HBCF are:

The objects of the Original Charity were fully aligned with those of HBCF by Scheme 251438 which was issued by the Charity Commission issued on 3[rd] March 2024.

5 STRUCTURE, GOVERNANCE AND MANAGEMENT

5.1 PATRONAGE

The ninth Marquess of Hertford, a member of the family of the Charity’s founder, has been HBCF’s Patron since 2006.

5.2 APPOINTMENT OF TRUSTEES

The Charity was previously managed by Council of Management (renamed “Board” in the new articles) composed of not less than thirteen and not more than twenty-four Trustees, comprising two ex-officio members, two representative members and not more than twenty co-opted members.

This was modified in the new articles approved on 22[nd] November 2023 and, at the end of a transition period, the Charity is governed by at least eight and not more than twelve Trustees.

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

The role of ex-officio members has been replaced by that of Honorary Trustee, it being specified that these Honorary Trustees shall be invited to all meetings of the Trustees and be provided with the papers prior to such meetings and shall be entitled to participate in the discussion at such meetings but they shall not be entitled to vote on matters on which the Trustees are entitled to vote.

Trustees are appointed for a term not exceeding three years and are eligible for re-election such that their total term of office shall not exceed nine years. Trustees are chosen with regard to their availability to spend time on the Charity and their specialist skills and experience in management, finance, law, property, healthcare…

Trustees become Members of the Company when appointed and cease to be Members when their mandate comes to an end. There are no other Members.

As part of the strategic planning for the future, and under the responsibility of the Nominations Committee, the Charity intends to ensure that significant attention is given in 2025 and subsequent years to creating a pool of potential “next generation” trustees whilst also ensuring that the wisdom and knowledge of longstanding trustees is retained.

5.3 TRUSTEE INDUCTION AND TRAINING

New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the work of the committees, the decision-making processes, the objectives and the recent financial performance of the Charity.

In addition, there is an annual conflict of interest confirmation process which, together with the declarations made at the start of each meeting of the Trustees, ensures that the Trustees comply with the Conflict of Interest Policy (which is reviewed periodically and approved by the Trustees).

The Trustees are also asked to complete an annual self-assessment.

5.4 ORGANISATION

The Trustees administer the Charity and meet at least twice a year and, in practice, quarterly. At the meeting of Trustees held immediately after the Annual Trustees' Appointment Meeting (previously the Annual General Meeting), the Trustees elect a Chair, a Vice-Chair and Honorary Treasurer. The Trustees also elect the Chairs and members of the various committees listed above and, as appropriate, approve their terms of reference.

These committees make recommendations to the Trustees on the long-term strategy, oversee the finances of the Charity (including its reserves and investment policies), the charitable activities (including the grant giving policy and, from 2025, the welfare policy), the succession planning for Trustees and the operations of its commercial property portfolio. They meet as often as required.

In the light of the significant changes in the activities of the Charity as explained above, the operating policies were last updated and approved as follows:

The Property Strategy and Operations Committee’s terms of reference were updated on 19[th] April 2023 to take account of its wider remit.

A complete review of the committee terms of reference and of the policies is underway and it is expected that the updated terms and policies will be submitted to the Trustees for approval at the Annual Trustees' Appointment Meeting in June 2025.

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

Since 1[st] January 2021, a Director General manages HBCF’s affairs on a day-to-day basis, represents the Charity vis à vis third parties and assists the Directors in preparing the Company for the changes required once the hospital building ceases to be used by the Foundation in 2028. The Director General, Iain Hutton, took office in January 2021, and has served since then. The Director General was the sole employee of the Charity until June 2024 (when an administrative assistant was recruited), and he reports on a weekly basis to the Chair, Vice-Chair and Treasurer who assess his performance annually and set his remuneration.

5.5 THE BRITISH CHARITABLE FUND AND OTHER RELATED PARTIES

The Charity has enjoyed a long-standing relationship with the British Charitable Fund, Paris (“BCF”). The BCF, a UK registered charity with a related French entity (known as the “BCF in France”), was created over 200 years ago to provide help to British residents in France who had fallen on hard times. The founder of the Original Charity, Sir Richard Wallace, was the chairman and a generous benefactor of the BCF in the past and, until early 2022 when the property was sold (with an obligation for the purchaser to maintain the BCF in its premises), the Corporation provided rent-free accommodation to the BCF at 12 rue Barbès. The Charity also made a financial contribution each year to the BCF.

In order to facilitate the relationship between the two charities, each has appointed a trustee who is a guest at the meetings of the governance body of the other: Ian McDonald represented the Corporation at meetings of the BCF’s governing body until the end of 2024 and Jonathan Goatly represents the BCF in France at meetings of the HBCF Trustees.

As is further explained in paragraph 6.2 below, the BCF and the Charity were engaged over several years in a process aimed at ensuring that the two charities could work ever more closely together going forward, this culminated in the merger of the two charities on 1[st] January 2025.

Apart from the BCF, there are no other related parties with whom the Charity entered into any material transactions in either 2024 or 2023.

6 ACHIEVEMENTS AND PERFORMANCE

6.1 CHARITABLE ACTIVITIES

In 2024 and prior years, the Objectives of the Charities are met:

It is worth noting that, had the hospital been rented to the Fondation Cognacq-Jay at a market rent, as estimated by Savills in a report dated 6[th] February 2025, that rent for 2024 would have approximated €1.68 million.

From 1[st] January 2025, post-merger of HBCF and BCF, it is the Charity which provides all the funding required by the BCF in France (see note 6.2 below) and which benefits from the income accruing on the investment portfolio, which was previously held by the BCF, Paris.

As is further detailed in note 9 to the Financial Statement, the total amount of Charitable giving, to the BCF and other Charities in 2024 amounted to € 164 938 (£ 136 767). In 2023, the comparable amounts were €160 630 (£ 139 604).

The Corporation also continues to assist the Foundation Cognacq-Jay with the “British” aspects of the hospital.

Throughout 2024, the Trustees complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

6.2 STRATEGIC PLAN

Trustees continue to work with the Charity’s legal advisors to obtain relevant approvals, including that of the Charity Commission, to reduce the complexity of the HBCF structure (with the Company and Original Charity potentially merging) and then, in a second step, to focus on the wellbeing of beneficiaries in France with ties to Britain through two channels: as a grant making body for other voluntary organisations in France and as the source of funding for the BCF’s welfare activities. Whilst it is of course not reflected in the 2024 financial statements, this second step was achieved on 1[st] January 2025 when HBCF and the BCF merged whilst retaining the BCF’s French entity, the BCF in France. This entity, an association registered under the law of 1901, will continue in the short term to perform its current role of caring for the individual beneficiaries but it is anticipated that this activity would be fully transferred to HBCF during 2025. The permanent endowment that was held by the BCF remains as a distinct but linked charity and plans are in hand to release the permanent endowment and allocate the amounts held to a designated fund intended to fund grants to beneficiaries.

As is more fully explained in paragraph 6.4 below, the Trustees and Director General, assisted by appropriate advisors, have embarked on a renovation plan that will, in due course, see all of the Charity’s investment property assets redeveloped to bring them up to date in terms of insulation, heating, etc. so as to ensure that they remain at the high end of the market and yield sufficient revenues to sustain a growing charitable activity.

Work has also started on planning for the redevelopment of the hospital site which will occur once the building is vacated by the Fondation Cognacq-Jay. As reported above, the Fondation Cognacq-Jay have given indications that their redevelopment project is running to a timetable that would require them to remain in the hospital site beyond the initial end date of the agreement and an addendum to that agreement was signed in 2022 to ensure that the provision of care can continue as appropriate until 2028.

6.3 INVESTMENT AND BORROWING ACTIVITIES

As reported previously, the building at 12 rue Barbès in Levallois-Perret was sold on 18[th] February 2022 for €12.1 million and the proceeds used to reimburse the outstanding amounts due to Dexia Crédit Local. The net proceeds of €10.6 million were invested under the management of Rothschild Martin Maurel who are supervised by the Investment Committee. The investments were made in accordance with the Charity’s investment policy and comprised two equal funds, one invested in “Fonds Euro” lower risk bonds and money market funds and the other being invested over time to create a managed equity and bond portfolio with a view to securing medium term capital growth whilst respecting the Charity’s risk profile, as defined by the Investment Sub-Committee, and approved by the Trustees.

In the course of 2024 (and, for a small residual amount, in early 2025), under the supervision of the Investment Sub-Committee, the investments held in these two funds were redeployed, still under the management of Rothschild Martin Maurel, to improve overall performance whilst continuing to respect the Charity’s risk profile.

Since late 2023, these investment funds are used as security for a Lombard loan that has been been used to finance the renovation of the Château.

At 31[st] December 2024, as shown in note 17 to the Financial Statements, these funds have been marked to market with an increase in value.

Following the COVID crisis, a government backed loan of £898 101 (€999,000) was taken out in August 2020. The repayment schedule for the loan was agreed with the bank in 2021, and it is being repaid over the full permitted term of 6 years from August 2020. The balance owing at 31[st] December 2024 amounted to €336 171 / £292 170 (2023: £466 134 / €536 341).

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

6.4 CHATEAU PROJECT & CHARITY PROPERTIES

As reported last year, a multi-year property redevelopment plan was prepared in 2022, with advice from an external property consultant and an architect selected after an initial tender process supervised by the Property Operations and Strategy Committee. This plan was presented to the Trustees at their June 2022 meeting and covered all the remaining properties under the Corporation’s management: the hospital which is made available to the Fondation Cognacq-Jay until 2028, the Wallace Gardens building which is let to Batigère (a leading social housing company) and the Château. The plan proposed that the properties be redeveloped as they become available over time, starting with the Château which was not only the first to become available but also one that required significant renovation in order to remain lettable and meet environmental and other requirements such as disabled access.

The Wallace Gardens lease was extended in 2024 and will now run until 31[st] December 2030.

The work on renovating the Château commenced in the last weeks of 2023 and, on 17[th] February 2025, the renovated building was delivered after completion of a €10 million project to clean the façade, renew the gardens and totally renew the interior, bringing it fully up to modern standards, including environmental standards. The building will be operated as a meeting centre by Comet Levallois SAS, beginning on 31[st] March 2025.

Design work has also commenced on the hospital building so that the Charity can dispose of various redevelopment scenarios that will facilitate discussions with potential financial partners and operators.

7 FINANCIAL REVIEW

7.1 2024 FINANCIAL STATEMENTS - REVIEW

The cash position of the Charity at 31 December 2024 was £738 317 (€890 396), and Loans outstanding represent £ 5 957 290 (€7 184 382) compared to a cash position of £1 986 163 (€2 285 310) and outstanding loans of £765 754 (€1 036 341) at 31[st] December 2023. The net cash position has been reduced by the spending on the Chateau renovation which amounted to £7 224 748/ € 8 712 914 in 2024 (£884 349 / €1 017 546 in the year to 31[st] December 2023).

In 2024, the let property income amounted to £1 310 552 (€1 580 502) compared to £2 0223 955 (€2 328 794) in 2023: the variation is explained by the vacancy in the Chateau as it underwent renovation.

In 2024, the Charity made an operating profit of £441 367 (€532 281) before deducting tax and before taking into account unrealised losses on valuation of assets. There is a profit of €137 159 (in 2023, a loss of €1 234 713) in the French accounts due to a difference in the treatment of depreciation, the valuation of property and financial assets. A reconciliation is provided at footnote 25 to the Financial Statements.

A professional valuation of the Château and Wallace Gardens properties at 31[st] December 2024 resulted in a decrease in the estimated market value of £11 693 538 (€14 102 192) bringing the total value of the property portfolio to £32 919 239 (€39 699 999). This loss in value resulted essentially from the trend in market rates and the state of the office market in the Paris region (particularly after the Covid driven move to working from home).

At 31[st] December 2023, given that work was in progress on the Chateau and that the Wallace Gardens property was last valued at 31[st] December 2021 (ie 2 years earlier), the Directors had determined that the investment assets would be shown at the same value as at the prior year-end.

As is further explained in note 16.2 to the Financial Statements, the land on which are situated the current hospital, and the Villiers investment properties is vested in the Secretary of State for Foreign Commonwealth and Development Affairs and managed and administered by the Directors of the Company who are also Trustees of the Original Charity (Hertford British Hospital).

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

7.2 PRINCIPAL RISKS AND UNCERTAINTIES FACING THE CHARITY

The Trustees make every effort to identify and address all major risks to which the Charity is exposed.

Members of the Property Operations and Strategy Committee ensure that the Charity’s portfolio of commercial buildings is properly maintained and that its properties are rented out to suitable tenants at market levels of rent.

Members of the Finance, Risk, Audit & Governance Committee ensure that all financial risks are identified and that expenses are strictly limited. The Committee oversees all systems, controls and processes that may have an impact on the Charity’s ability to meet its objectives and ensures that effective audit functions and adequate risk management processes are in place.

In 2024, the Charity received no significant endowments, grants or donations but, having sold the building at 12 rue Barbès in 2022 and invested the proceeds, the Charity is more exposed to stock market upturns and downturns although it is expected that the performance of the investment portfolio, which is marked to market at year end, may contribute more significantly to the Charity’s financial performance in future years.

7.3 PLAN FOR FUTURE PERIODS

The Finance, Risk, Audit & Governance Committee will continue to keep operating costs to a minimum. Legal costs, which continue to be significant for a fourth year running, as the Trustees pursue changes in the structure, are expected to tail off towards the end of 2025. Interest payments to banks which previously included only the government backed loan rose in 2024 as the Company drew down on the Lombard loan to finance the renovation of the Château. This loan bears interest at EONIA 1 month plus 0.7%.

In order to ensure that the Lombard loan stayed well within the agreed limits with regards to the investment portfolio valuation, a further five-year term loan of €2 000 000 (£1 658 400) was raised from Société Générale in 2024. It is guaranteed by a €500 000 (£414 600) term deposit and bears interest at 3.91%.

The total interest charge for 2024 amounted to £184 281 / €222 239 (2023: £21 495 / €24 733).

The maximum draw down will reach £5.8 million (€7 million) in 2025, reducing to £4.0 million (€4.8 million) in 2027 which was the point at which the Wallace Gardens lease was due to expire. The lease was amended in early 2024 and now expires at 31[st] December 2030 at which time the Lombard loan is expected to be almost fully paid down.

Discussions continued throughout 2024 and into 2025 with the Charity’s advisors in the UK and France as to the reorganization of the way in which the Original Charity’s assets are held and managed and it is expected that 2025 will see a simplification of the legal structure in the UK.

8 TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

English company law requires the Directors to prepare financial statements that give a true and fair view of the state of affairs of the Charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the trustees are required to:

The Directors are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at all times the financial position of the Charity and enables them to ensure that the financial statements comply with the Companies Act 2006 and the Statement of Recommended Practice–Charities (FRS 102). The Directors 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.

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HERTFORD BRITISH CHARITABLE FUND Annual report of the Directors Year ended 31[st] December 2024

The present document and attached financial statements have been prepared in compliance with the Companies Act of 2006 and the Statement of Recommended Practice - Charities (FRS 102).

In accordance with English company law, as the Company’s directors, we certify that:

9 DATA PROTECTION

The Charity is compliant with the General Data Protection Regulation (GDPR) which came into force in May 2018. This law was of particular relevance to the operations of the Dermatology Centre (CID) and, whilst the Corporation continues to have a Data Protection Officer (outsourced) to manage its compliance, the volume of personally identifiable data is now considerably reduced. This changed on 1[st] January 2025 with the merger with BCF and plans are in hand to update the GDPR policies and documentation.

10 AUDITORS

The reappointment of Grant Thornton for a six-year period commencing with the examination of the 2022 financial statements was proposed to the Annual General Meeting held on 22[nd] June 2022 and was approved. Their term will therefore expire with the examination of the accounts for the year ended 31[st] December 2027.

By order of the Directors Christopher Wicker, Chairman 16th April 2025

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Statutory auditor’s Report on the financial statements

Year ended 31 December 2024

Grant Thornton

Hertford British Charitable Fund

3, rue Barbès 92300 Levallois Perret

SAS d'Expertise Comptable et de Commissariat aux Comptes au capital de 2 297 184 € inscrite au tableau de l'Ordre de la région Paris Ile France et membre de la Compagnie régionale de Versailles RCS Nanterre B 632 013 843 27 rue James Watt 37200 Tours

Grant Thornton

Hertford British Charitable Fund Year ended 31 December 2024

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Statutory auditor’s Report on the financial statements

Hertford British Charitable Fund Year ended 31 December 2024

To the Trustees,

In our capacity as French statutory auditor and in accordance with your request for the purpose of the Charity Commission Requirements, we hereby report to you on the audit of the accompanying financial statements of Hertford British Charitable Fund for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flow and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Respective responsibilities of Trustees and auditor

As explained more fully in the Trustees’ Responsibilities Statement set out on page 10, the Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such internal control as the Trustees determine is necessary to enable the preparation of the 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 ability to continue as a going concern, disclosing, as applicable, masters related to going concern and using the going concern basis of accounting unless the Trustees either intend de liquidate the entity or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and French Standards on Auditing. Those standards

Grant Thornton

Hertford British Charitable Fund Year ended 31 December 2024

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require that we comply with local ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs 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.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

Grant Thornton

Hertford British Charitable Fund Year ended 31 December 2024

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Opinion on other matters prescribed by the Companies Act 2006

In our opinion, the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

This report is governed by French law. The courts of France shall have exclusive jurisdiction over any claim, dispute or difference resulting from the engagement letter or the present report or any related matters. Each party irrevocably waives its right to oppose any action brought before the French courts, to claim that the action is being brought before an illegitimate court or that the courts have no jurisdiction.

Tours, 4th of June 2025

The Statutory auditor

Grant Thornton

French Member of Grant Thornton International Signé par

33383237393934652d3734… Kristell Dicharry

Partner

HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2024

Statement of Financial activities

(including income and expenditure account) For the years ended 31[st] December

Notes
Income from property investments
5
Cost of property investments
7
Net income from property investments
Income from financial asset
Interest and related charges
Net income from financial asset
Depreciation charge on hospital
8
Charitable giving (grants paid)
9
Total expenditure on charitable activities
Governance costs
12
Net income before non-operating items
Net income before unrealised gains on
investment properties
Valuations gains / (losses) :
Investment properties
16
Financial assets
Net movement in funds before taxation
Taxation
13
Net movement in funds after taxation
Funds brought forward at 1stJanuary
24
Exchange difference
Funds carried forward at 31st December
24		 2024
2023
2024
2023
€
€
£
(0.8292)
£
(0.8691)
1 580 502
2 328 794
1 310 552
2 023 955
(589 318)
(1 422 013)
(488 662)
(1 235 871)
991 184
906 781
821 890
788 084
716 408
942
594 046
819
(222 239)
24 733
(184 281)
21 495
494 169
25 675
409 765
22 314
(103 073)
(103 073)
(85 468)
(89 581
(164 938)
(160 630)
(136 767)
(139 604)
(268 011)
(263 703)
(222 235)
(229 185)
(685 061)
(459 850)
(568 053)
(399 657)
532 281
208 903
441 367
181 556
532 281
208 903
441 367
181 556
(14 102 192)
(77 044)
(11 693 538)
(66 959)
97 385
306 883
80 752
266 712
(13 472 526)
438 742
(11 252 171)
381 309
(77 960)
(392)
(64 644)
(341)
(13 550 486)
438 350
(11 316 815)
380 968
58 945 602
58 507 252
51 229 622
51 890 082
..
..
(2 271 176)
(1 041 427)
45 395 116
58 945 602
37 641 631
51 229 623

The footnotes form an integral part of the financial reporting.

16

HBHC_UK accounts_31 Dec 24_VDef

HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2024

Balance sheet

As at 31[st] December

Fixed assets
Intangible fixed assets_:_
Tangible fixed assets
Investment properties
Financial assets
Current assets
Debtors
Short term investments
Cash at bank and in hand
Sinking fund
Current liabilities
Creditors
Loans (excluding accrued interest)
Taxation
Net current (liabilities) / assets
Total assets plus net current assets
Long-term liabilities
Loans
Provisions
Investment grant
Creditors
Total net assets
Unrestricted funds
Revaluation reserve
Special and other reserves
Total unrestricted funds		 Notes
2024
2023
2024
2023
€
€
£
£
14
..
..
..
..
15
2 064 171
2 021 369
1 711 608
1 756 772
16
39 699 999
45 089 277
32 919 239
39 187 091
17
11 646 813
10 907 113
9 657 538
9 479 372
53 410 983
58 017 759
44 288 385
50 423 235
18
844 029
879 642
699 871
764 497
..
..
..
..
648 514
2 254 388
537 748
1 959 289
19
241 882
30 922
200 569
26 874
1 734 425
3 164 952
1 438 188
2 750 660
20
2 115 670
769 540
1 754 313
668 807
21
576 483
200 173
478 020
173 970
13
77 960
392
64 644
341
2 770 113
970 105
2 296 977
843 118
(1 035 688)
2 194 847
(858 789)
1 907 542
52 375 295
60 212 606
43 429 596
52 330 777
21
6 607 899
836 171
5 479 270
726 720
22
..
..
..
..
23
372 280
430 830
308 695
374 434
20
..
..
..
..
6 980 179
1 267 001
5 787 965
1 101 154
45 395 116
58 945 602
37 641 631
51 229 623
24
14 732 849
28 737 657
12 216 478
24 975 897
24
30 662 267
30 207 945
25 425 153
26 253 726
45 395 116
58 945 602
37 641 631
51 229 623

Signed on 16th April 2025

Christopher Wicker

Chairman

Iain Hutton

Director General

The footnotes form an integral part of the financial reporting.

17

HBHC_UK accounts_31 Dec 24_VDef

HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2024

Statement of cash flow

For the years ended 31[st] December

Cash flow from operating activities
Net incoming resources for year
Depreciation
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Increase / (decrease) in provisions
Increase / (decrease) in investment
grant
Cash generated by operating activities
Taxation paid
Investing activities
Net acquisition of fixed assets
Net acquisition of financial asset
Renovation of investment properties
Proceeds from disposal of fixed assets
Cash applied to investing activities
Net cash (outflow) / inflow before
financing
Financing activities
New long-term loans
Repayment of long-term loans
Cash applied to financing activities
Net cash applied
Net opening cash
Net closing cash
Net closing cash
Cash at bank and in hand
Sinking fund
Short term investments
Current liabilities – short term bank
loans
Net closing cash		 Notes
2024
2023
2024
2023
€
€
£
£
454 321
208 510
376 724
181 216
104 682
104 682
86 802
90 979
35 602
1 344 270
29 522
1 168 306
1 346 130
(721 059)
1 116 211
(626 672)
22
..
..
..
..
(58 550)
(58 550)
(48 550)
(50 886)
1 882 185
877 853
1 560 709
762 943
77 568
(392)
64 319
..
15
(147 479)
(12 000)
(122 290)
(10 429)
(642 315)
(34 637)
(532 608)
(30 103)
(8 712 913)
(1 097 741)
(7 224 747)
(954 047)
..
..
..
..
(9 502 707)
(1 144 378)
(7 879 645)
(994 579)
(7 542 954)
(266 525)
(6 254 617)
(231 636)
6 500 000
500 000
5 389 800
434 550
(351 960)
(229 408)
(291 845)
(199 379)
6 148 040
270 592
5 097 955
235 171
(1 394 914)
4 067
(1 156 662)
3 876
2 285 310
2 281 243
1 894 979
1 982 628
890 396
2 285 310
738 317
1 986 504
648 514
2 254 388
537 748
1 959 289
19
241 882
30 922
200 569
26 874
..
..
..
..
..
..
..
..
890 396
2 285 310
738 317
1 986 163

The footnotes form an integral part of the financial reporting.

18

HBHC_UK accounts_31 Dec 24_VDef

HERTFORD BRITISH CHARITABLE FUND

(previously the Hertford British Hospital Corporation, Paris)

Notes to the financial statements for the year ended 31[st] December 2024

1 Legal status, activities and financing

The Hertford British Charitable Fund (hereafter indifferently “HBCF”, “the Charity” or “the Company”), was incorporated in the United Kingdom on 10[th] May 1966 as a company limited by guarantee and not having a share capital. The Charity was established for purposes which are exclusively charitable, and in this context, provides premises to the Fondation Cognacq-Jay for the operation of the Hôpital Franco-Britannique. It also provides limited financial support to the British Charitable Fund, a related charity and to other charities and benevolent organisations operating in France to further the physical and mental well-being of primarily British citizens resident in France and whose purposes are aligned with the Charity’s objects.

The Company also owns directly or indirectly (see note 16.2) a portfolio of investment properties and funds whose revenue is used to further the objects of the Charity.

2 Accounting policies

2.1 Basis of preparation

The financial statements incorporate the investment property management and commercial letting activities of the Company. They have been prepared under the historic cost convention, except for investments in property and financial investments which are included at market value.

The financial statements have been prepared in accordance with the Statement of Recommended Practice–Charities (FRS 102) as per October 2019 and effective at 1[st] January 2019, applicable UK Accounting Standards and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are set out below.

As at 31[st] December 2023, the Directors determined that the Statement of Financial activities should be presented in a way that more closely reflects the activity of the Company, distinguishing between the net income from property, the performance of the investments, operating costs and the amount of charitable contributions paid in the year. The 2024 presentation follows the same principles as those used in 2023.

2.2 Functional and reporting currencies

The functional and reporting currency of the Company is the Euro. Financial information is also presented in these financial statements in pounds sterling, using year-end rates of exchange in translating all assets, liabilities, funds, income, expenditure and cash flows as follows:

19

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

2.3 Income and endowments

Investment income is recognised on an accruals basis.

Where leases on investment properties provide for a rent-free period and where sums are significant, the rental income is spread over the period of the lease to provide a constant return over that period.

For significant amounts, the rent-free period is spread over the term of the lease by accounting for “Income not yet invoiced” and a corresponding amount receivable. This amount is released progressively over the term of the lease and the amount remaining to be spread is revised annually in accordance with the relevant index.

There is no longer any health services income.

2.4 Costs of generating funds

These costs include let property expenses and interest on loans relating to the renovation of the Company’s investment properties.

2.5 Charitable activities

These activities include health services expenditure (limited to the provision of the hospital premises) and comprise both the direct costs and support costs related to this activity. Governance costs include those incurred in the governance of the Company and its assets and are primarily associated with corporate and statutory requirements.

2.6 Irrecoverable VAT

As a charity, the Company does not fall under the VAT regime for all its healthcare related activities; VAT is only applicable to the management and real estate activities.

All amounts expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

2.7 Intangible fixed assets

Intangible fixed assets comprised establishment costs, computer licences and software and are amortised over a five-year period

2.8 Tangible fixed assets

Tangible fixed assets are stated at cost. Only those assets in use directly for charitable purposes are classified as tangible fixed assets, investment properties being classified separately.

Individual fixed assets are capitalised at cost.

The cost of an asset is its purchase price, including customs duties and non-recoverable taxes, after deduction of rebates, trade rebates and cash discounts of all directly attributable costs incurred to bring the asset into use, in place and in working order for the intended use. Transfer rights, fees or commissions and legal costs related to the acquisition are attached to this acquisition cost.

All costs which are not part of the acquisition price of the asset, and which cannot be directly attached to the costs made necessary to put the asset in place and in a state of operation in accordance with its intended use, are recognized as expenditure.

2.9 Valuation of investment properties

The Trustees determine the market value of investment properties on the basis of valuations undertaken by professional surveyors and estate agents on a rotational basis over three years. Exceptionally at 31[st] December 2024, the Trustees obtained independent valuations of both investment properties and on

20

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

the hospital premises.

2.10 Depreciation

No depreciation is provided on assets under construction. Depreciation of other tangible fixed assets is calculated on the straight-line method at annual rates designed to write off the cost or valuation over their estimated useful lives.

Depreciation rates are as follows:

• Land not depreciated
• Structure 60 to 80 years
• Facades, roofing, external fixtures 30 to 40 years
• Fixtures & fittings 5 to 12,5 years
• Furniture and other equipment 5 to 10 years
• Medical and computer equipment 5 years

The Directors determine at the year-end, considering both internal and external information available to them, whether there are any indications that would suggest that the value of the assets may have been significantly impaired.

2.11 Investment grants received

Investment grants received to finance the acquisition of fixed assets are recorded on the balance sheet and taken to income based on the depreciation plan of the related equipment. Other grants received are credited to income on receipt.

2.12 Short-term investments

Short-term investments are stated at their market value at the balance sheet date.

2.13 Donations received

Any donations received during the year are recorded in unrestricted funds.

2.14 Current assets

Current assets are valued at their nominal value. A provision for depreciation is recorded when the realizable value is estimated to be lower than the book value.

2.15 Provisions

Any present obligation resulting from a past event with regard to a third party, which can be estimated with sufficient reliability, and covering identified risks, is recognized as a provision.

2.16 Retirement indemnities

Upon retirement, the Company’s employees would receive a lump sum retirement indemnity in accordance with the law and the collective agreement applicable to the Company. There is no specific agreement and no on-going pension liability for retired employees once this one-off indemnity has been paid.

The sole employee at 1[st] January 2024 has already claimed his pension benefits and, accordingly, when that individual leaves the Company, no lump sum will be due. A second employee was recruited in June 2024 but, given her age and expected length of service, no provision has been recorded at 31[st] December 2024.

21

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

3 Significant events in the current and prior year

3.1 Occupancy agreement with the Fondation Cognacq-Jay (prior year)

On 9[th] December 2020, HBCF entered into an occupancy agreement with the Fondation Cognacq-Jay, which is now the sole operator of the hospital, managed by the Fondation under the name “Hôpital FrancoBritannique Fondation Cognacq-Jay”.

The occupancy agreement provides that the Company consents, free of charge, and temporarily, in application of articles 1875 to 1891 of the French Civil Code, to the Fondation Cognacq-Jay, beneficiaryborrower, who accepts it, a rent-free lease relating to the hospital site at 3 rue Barbès, 92300 LevalloisPerret for a period of five full and consecutive years from 28[th] September 2020 at 00 hour, expiring on 28[th] September 2025 at midnight.

In 2022, because of the delays encountered in the renovation of the Fondation Cognacq-Jay’s nearby hospital buildings, the occupancy agreement was extended under the same terms until 2028 and now provides that the borrower may, 6 months before the end of the initial term, request that HBCF extend that term to either 28[th] March 2027 or 28[th] September 2028. Such notice was required to be given no later than 28[th] March 2025 by registered letter with recorded delivery and this only in the event that the work under way to restructure the Hôpital Franco Britannique site such as to allow all the medical activities to be consolidated into that one site has not been completed. The Company received the notification in 2025 and the term of the rent-free lease will therefore run to 28[th] September 2028.

At the end of the said agreement, the borrower undertakes to return the premises loaned, as well as the equipment present and mentioned in the inventory, in normal and usual condition.

All of the agreements between the Company and the Fondation Cognacq-Jay do not call into question the reimbursement by the Hôpital Franco Britannique of the subsidies described in note 23.

3.2 Litigation with Zalthabar (prior and current years)

Zalthabar, the previous tenant of the Chateau, was wound up by the Commercial Court in 2023 and, at 31[st] December 2023, given that the Company had not yet received the necessary certificate of nonrecoverability from the receiver, these amounts, totalling €585 460 (£508 823) were shown on the balance sheet under the “Debtors” caption and were fully provided against for the net of tax amount of €476 396 (£414 036).

In 2024, the debtor balance was written off and the provision reversed. No amounts related to Zalthabar remain on the balance sheet at 31[st] December 2024.

3.3 Restructuring work on the Château building (the original hospital) and new lease (current year)

On 23[rd] October 2023, HBCF obtained a building permit for the complete restructuring of the original hospital building, known as the Château, and held as an investment asset. On 18[th] November 2023, a fixed price works contract amounting to €8.28 million (£ 7.20 million) was entered into with Fayat Bâtiment Ile de France. The work was expected to be completed on 2[nd] January 2025, date on which the premises were to be operated by Comet Levallois under a forward lease agreement that was entered into on 30[th] August 2023. This lease, which was amended in 2024, provides for a total term of 12 years with a fixed term of 10 years.

At 31[st] December 2023, the work carried out to date, consisting essentially of the removal of all interior fittings and depollution was accounted for as “fixed assets in progress” and was not amortized.

During 2024, further work was carried out, including certain work realised at the request of the future tenant. This work gave rise to additional costs and delayed the delivery until 17[th] February 2025.

All work carried out on the Château until 31[st] December 2024 is accounted for as fixed assets in progress and no depreciation has been accounted for since the building was only delivered on 17[th] February 2025.

22

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

3.4 Financing arrangement for the restructuring work on the Château

In order to finance the work on the Château, HBCF obtained financing from Rothschild Martin Morel. This financing takes the form of a Lombard loan secured by a lien over the capitalization funds opened in 2022 with the proceeds of the sale of the building at 12 rue Barbès. The loan was obtained in two tranches, one signed on 18[th] April 2023 for a total amount of €3 million (£2.6 million) and a second amount of €5 million (£4.35 million) signed in early 2024.

At 31[st] December 2024, several tranches have been drawn down, totalling €5 500 000 (£4 560 600) and are shown under the “Loans” caption of the balance sheet. The principal terms of this financing are as follows:

In order to ensure that sufficient headroom was left on the Lombard loan to ensure that potential fluctuations in the valuation of the investment portfolio did not trigger a requirement to immediately reduce the balance outstanding, a fixed term loan of €2 million was obtained from Société Générale. The principal terms of this loan are:

4 Post balance sheet events

As of the date of approval of these financial statements by the Trustees, there were no events that had occurred after 31[st] December 2024, and which would either require an adjustment to those financial statements or disclosure therein.

5 Income from investments

come from investments
Let property income
Rental income and indemnities
Other charges invoiced to tenants
Interest income
Exchange gain / (loss) - net
Grant
Total income from investments		 2024
2023
2024
2023
€
€
£
`£
1 047 865
1 656 712
868 890
1 439 848
474 087
613 261
393 112
532 985
1 521 952
2 269 971
1 262 002
1 973 833
..
272
..
236
58 550
58 550
48 550
50 886
1 580 502
2 328 794
1 310 552
2 023 955

6 Income from health services

HBCF no longer provides health services. The last year in which such services were reported was 2021.

23

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

7 Expenditure on raising funds

penditure on raising funds
Let property expense
Expenses recoverable from tenants
Taxes recoverable from tenants
Property taxes
Other costs and expenses
Risk provisions (see below)
Interest on borrowings
Investment properties:
Interest on loans
Bank interest
Total interest
Total expenditure on raising funds		 2024
2023
2024
2023
€
€
£
£
126 940
238 501
105 259
207 281
347 147
374 760
287 854
325 704
104 653
62 248
86 778
54 100
26 867
316 771
22 278
275 306
(16 289)
422 893
(13 507)
367 536
589 318
1 415 173
488 662
1 229 927
222 229
5 633
184 272
4 896
10
1 207
8
1 048
222 239
6 840
184 280
5 944
811 557
1 422 013
672 942
1 235 871

8 Health services and other expenditure

HBCF no longer provides health services. The last year in which such services were reported was 2021. Accordingly, other expenditure comprises only depreciation, as follows:

Depreciation
Hospital:
Buildings
Intangible assets
Total health services and other expenditure		 2024
2023
2024
2023
€
€
£
£
103 073
103 073
85 468
89 581
..
..
..
..
103 073
103 073
85 468
89 581

9 Charitable activities

The direct provision of health services ceased in 2021 and, since then, the Company’s charitable activity consisted mainly in:

24

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

10 Staff costs

Salary costs
Social security costs
Health services
Administration		 2024
2023
2024
2023
€
€
£
£
156 731
128 433
129 961
111 621
66 646
45 365
55 263
39 427
223 377
173 798
185 224
151 048
..
..
..
..
223 377
173 798
185 224
151 048
223 377
173 798
185 224
151 048

The Trustees are not remunerated for their services, but some direct expenses incurred in the performance of their duties are reimbursed.

The average number of employees for the year was as follows:

2024
Total
Health
Administrative staff
2
..
Total
2
..
Emoluments of employees:
Above £70 000 (€80 000)
Between £62 000 and £72 000 (€70 000 and €80 000)
Below £62 000 (€70 000)
Total		 2024 2023
Total
Health
2
..		 Admin.
Total
Health
Admin.
2
1
..
1
2
..		 2
1
..
1
2024
2023
1
1
..
..
1
..
2
1

The total gross remuneration of the three highest paid employees was €149 597 (£124 045) for the year ended 31[st] December 2023 (€124 576 (£108 269 in 2023).

Employee salaries are set in accordance with the collective bargaining agreement for the sector: the “Convention Collective National” dated 31[st] October 1951.

11 Indemnity insurance

Included in income from property investments are the following premiums paid on an insurance policy which provides cover for losses arising from the neglect or default of the Directors, employees or agents and indemnification of the Directors against the consequences of any neglect or default on their part.

2024 2023 2024 2023
€ € £ £
Premiums 860 860 713 747

25

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

12 Governance costs

These costs can be analysed as follows:

overnance costs
ese costs can be analysed as follows:
Staff costs
Provision for retirement indemnities
Audit fee
Legal fees
Other fees and expenditures
Depreciation
Net book value of assets sold
Impairment of financial assets		 2024
2023
2024
2023
€
€
£
£
223 377
173 798
185 224
151 048
..
..
..
..
20 776
18 870
17 227
16 400
231 124
259 131
191 648
225 211
181 927
41 080
150 854
35 703
1 609
1 609
1 334
1 398
..
..
..
..
26 248
(34 638)
21 765
(30 103)
685 061
459 850
568 053
399 657

26

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

13 Taxation

The Company is registered as a non-profit association in France under the law of 1[st] July 1901 and, as such, is only subject to income tax on the net profit arising from investment properties to which it has full legal title (12 rue Barbès until its sale in 2022) at a rate of 24% and on certain financial income at a rate of 10%.

The tax computation on rental and investment income is as follows for the years to 31[st] December:

Investment
Property
Income
Financial
Investment
Income		 Taxable income from investment
properties
Management costs
Insurance
Real estate and related taxes
Depreciation
Adjustment to amounts recovered
from tenants
Improvements
Interest income		 2024
2023
2024
2023
€
€
£
£
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
Total taxable rental income
Income on capitalization contracts*
Other financial income		 397 971
182 516
329 998
158 625
26 209
942
21 732
819
Total financial income
Total Income before loss
carried forward
Loss carried forward
from prior year
Total taxable income
Tax charge for the year
Loss carried forward :
At 1st January 2024
Loss offset against
income
At 31st December 2024		 424 180
183 459
351 730
159 444
424 180
183 459
351 730
159 444
..
(179 543)
..
156 041
424 180
3 916
351 730
3403
77 960
392
64 644
341
..
(179 543)
..
(156 041)
..
179 543
..
156 041
..
..
..
..

The actuarial interest rate equal to 105 % of the monthly rate for long-term government loans known on the contract subscription date, i.e.: 1.63 105% = 1.71 %.

27

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

14 Intangible assets

Intangible assets comprise establishment costs and computer software licenses as and are as follows:

2024
2023
2024
2023
€
€
£
£
Cost
9 290
9 290
7 703
8 074
Aggregate depreciation
(9 290)
(9 290)
(7 703)
(8 074)
..
..
..
..
angible assets
ngible assets are as follows:
Summary (in € and £)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets -
Admin.
(see C below)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets –
Admin.
(see C below)
€
€
€
£
£
£
Cost or valuation
At 1stJanuary 2024
9 926 767
9 917 461
9 306
8 627 354
8 619 266
8 088
Additions
147 479
147 479
..
122 290
122 290
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(396 079)
(395 708)
(371)
At 31stDecember 2024
10 074 246
10 064 940
9 306
8 353 565
8 345 848
7 717
Aggregate depreciation
At 1st January 2024
7 905 393
7 900 040
5 353
6 870 591
6 865 932
4 659
Charge for the year
104 682
103 073
1 609
86 803
85 469
1 334
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(315 437)
(315 223)
(214)
At 31stDecember 2024
8 010 075
8 003 113
6 962
6 641 960
6 636 178
5 779
Net book value
At 1stJanuary 2024
2 021 374
2 017 423
3 953
1 756 763
1 753 334
3 429
At 31stDecember 2024
2 064 171
2 061 827
2 344
1 711 608
1 709 670
1 938		 2024
2023
2024
2023
€
€
£
£
Cost
9 290
9 290
7 703
8 074
Aggregate depreciation
(9 290)
(9 290)
(7 703)
(8 074)
..
..
..
..
angible assets
ngible assets are as follows:
Summary (in € and £)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets -
Admin.
(see C below)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets –
Admin.
(see C below)
€
€
€
£
£
£
Cost or valuation
At 1stJanuary 2024
9 926 767
9 917 461
9 306
8 627 354
8 619 266
8 088
Additions
147 479
147 479
..
122 290
122 290
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(396 079)
(395 708)
(371)
At 31stDecember 2024
10 074 246
10 064 940
9 306
8 353 565
8 345 848
7 717
Aggregate depreciation
At 1st January 2024
7 905 393
7 900 040
5 353
6 870 591
6 865 932
4 659
Charge for the year
104 682
103 073
1 609
86 803
85 469
1 334
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(315 437)
(315 223)
(214)
At 31stDecember 2024
8 010 075
8 003 113
6 962
6 641 960
6 636 178
5 779
Net book value
At 1stJanuary 2024
2 021 374
2 017 423
3 953
1 756 763
1 753 334
3 429
At 31stDecember 2024
2 064 171
2 061 827
2 344
1 711 608
1 709 670
1 938		 2024
2023
2024
2023
€
€
£
£
Cost
9 290
9 290
7 703
8 074
Aggregate depreciation
(9 290)
(9 290)
(7 703)
(8 074)
..
..
..
..
angible assets
ngible assets are as follows:
Summary (in € and £)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets -
Admin.
(see C below)
Total
Buildings
health services
(see B below)
Other tangible
fixed assets –
Admin.
(see C below)
€
€
€
£
£
£
Cost or valuation
At 1stJanuary 2024
9 926 767
9 917 461
9 306
8 627 354
8 619 266
8 088
Additions
147 479
147 479
..
122 290
122 290
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(396 079)
(395 708)
(371)
At 31stDecember 2024
10 074 246
10 064 940
9 306
8 353 565
8 345 848
7 717
Aggregate depreciation
At 1st January 2024
7 905 393
7 900 040
5 353
6 870 591
6 865 932
4 659
Charge for the year
104 682
103 073
1 609
86 803
85 469
1 334
Disposals
..
..
..
..
..
..
Exchange difference
..
..
..
(315 437)
(315 223)
(214)
At 31stDecember 2024
8 010 075
8 003 113
6 962
6 641 960
6 636 178
5 779
Net book value
At 1stJanuary 2024
2 021 374
2 017 423
3 953
1 756 763
1 753 334
3 429
At 31stDecember 2024
2 064 171
2 061 827
2 344
1 711 608
1 709 670
1 938
10 074 246
10 064 940		 9 306
8 353 565
8 345 848
7 717
7 905 393
7 900 040
104 682
103 073
..
..
..
..		 5 353
6 870 591
6 865 932
4 659
1 609
86 803
85 469
1 334
..
..
..
..
..
(315 437)
(315 223)
(214)
8 010 075
8 003 113		 6 962
6 641 960
6 636 178
5 779
2 021 374
2 017 423		 3 953
1 756 763
1 753 334
3 429
2 064 171
2 061 827		 2 344
1 711 608
1 709 670
1 938

15 Tangible assets

Tangible assets are as follows:

Additions in 2024 represent the cost of initial architectural studies for the restructuring of the hospital building.

28

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

The detailed analysis of the tangible fixed assets is as follows:

Health service (in €)
Cost
At 1stJanuary 2024
Additions
Disposals
At 31stDecember 2024
Aggregate depreciation
At 1st January 2024
Charge for the year
Disposals
At 31stDecember 2024
Net book value
At 1stJanuary 2024
At 31stDecember 2024
Health service (in £)
Cost
At 1stJanuary 2024
Additions
Disposals
Exchange difference
At 31stDecember 2024
Aggregate depreciation
At 1st January 2024
Charge for the year
Disposals
Exchange difference
At 31stDecember 2024
Net book value
At 1stJanuary 2024
At 31stDecember 2024		 Total
Buildings
Hospital
1990
€
€
9 917 461
3 046 184
147 479
..
..
..		 Buildings
Hospital
1982
Buildings
Hospital
1974
Renovation
Hospital
€
€
€
5 265 953
1 593 324
12 000
..
..
147 479
..
..
..
10 064 940
3 046 184		 5 265 953
1 593 324
159 479
7 900 038
2 210 874
103 073
25 237
..
..		 4 095 840
1 593 324
..
77 836
..
..
..
..
..
8 003 111
2 236 111		 4 173 676
1 593 324
..
2 017 423
835 310		 1 170 113
..
12 000
2 061 829
810 071		 1 092 279
..
159 479
Total
Buildings
Hospital
1990
£
£
8 619 266
2 647 439
122 290
..
..
..
(395 708)
(121 543)		 Buildings
Hospital
1982
Buildings
Hospital
1974
Renovation
Hospital
£
£
£
4 576 640
1 384 758
10 429
..
..
122 290
..
..
..
(210 112)
(63 574)
(479)
8 345 848
2 525 896		 4 366 528
1 321 184
132 240
6 865 932
1 921 471
85 469
20 927
(315 220)
(88 213)		 3 559 703
1 384 758
..
64 542
..
..
..
(163 433)
(63 574)
..
6 636 181
1 854 185		 3 460 812
1 321 184
..
1 753 334
725 968		 1 016 937
..
10 429
1 709 667
671 711		 905 716
..
132 240

29

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements

Year ended 31[st] December 2024

Other fixed assets -
Admin (in € and £)
Cost
At 1stJanuary 2024
Additions
Disposals
Exchange differences
At 31stDecember 2024
Aggregate depreciation
At 1stJanuary 2024
Charge for the year
Disposals & reclassification
Exchange differences
At 31stDecember 2024
Net book value
At 1stJanuary 2024
At 31stDecember 2024		 Total
Furniture
€
€
9 306
2 372
..
..
..
..		 Computer
equipment
Total
Furniture
Computer
equipment
€
£
£
£
6 934
8 088
2 062
6 026
..
..
..
..
..
(371)
(95)
(276)
9 306
2 372		 6 934
7 717
1 967
5 750
5 353
1 066
1 609
439
..
..
..
..		 4 287
4 659
933
3 726
1 170
1 334
364
970
..
..
..
..
..
(214)
(43)
(171)
6 962
1 505		 5 457
5 779
1 254
4 525
3 953
1 299		 2 647
3 429
1 129
2 300
2 342
860		 1 475
1 938
713
1 225

16 Investment properties

Historical cost
At 1stJanuary 2024
Additions
Disposals
Exchange difference
At 31stDecember 2024
Market value
At 1stJanuary 2024
Fixed assets – increase
Disposals
Revaluation of properties
Exchange difference
At 31st December 2024		 Total
Total
€
£
17 346 919
15 076 207
8 712 914
7 224 748
(..)
(..)
..
(692 141)
26 059 833
21 608 814
45 089 277
39 084 424
8 712 914
7 224 748
..
..
(14 102 192)
(11 693 538)
..
(1 696 395
39 699 999
32 919 239

Investment properties are all located in Levallois-Perret in France and, at 31[st] December 2024, included:

30

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

16.1 Valuation of investment properties

The independent valuation of the original hospital (the “Chateau”) and the Wallace Gardens offices was carried out in early 2025 by Savills (valued as at 31[st] December 2024).

At 31[st] December 2023, the Directors had determined that the assets should be stated at the same valuation as at the prior year end since there was building work in progress on the Chateau and the Wallace Gardens buildings were last valued in 2022 (less than three years previously).

16.2 Secretary of State for Foreign Commonwealth and Development Affairs

The land on which are situated the current hospital buildings and the Villiers investment properties (which include the original hospital building now converted to offices) was, together with the buildings then existing, the subject of a gift on 30 July 1898 in favour of the predecessor of the United Kingdom Secretary of State for Foreign, Commonwealth and Development Affairs. He was deemed, under English law, to have accepted the gift of the land in his capacity of trustee for the Original Charity. Following a scheme of arrangement dated 2[nd] November 1977, the Charity Commissioners for England and Wales confirmed that the land and buildings continue to be vested in the Secretary of State and that their management and administration is undertaken by the members of the Directors of the Company who are also Trustees of the Original Charity.

17 Financial assets

Financial assets are as follows:

Summary (in € and £)
Cost or valuation
At 1stJanuary 2024
Net acquisition of financial assets
Revaluation of financial asset
Exchange difference
At 31stDecember 2024
Aggregate depreciation
At 1st January 2024
Charge for the year
Retirements
Exchange difference
At 31stDecember 2024
Net book value
At 1stJanuary 2024
At 31stDecember 2024
Market Value		 Total
Total
€
£
10 907 113
9 479 372
642 315
532 608
123 629
102 514
..
(435 194)
11 673 057
9 679 299
..
..
26 244
21 765
(..)
(..)
(..)
26 243
21 765
10 907 113
9 479 372
11 646 813
9 657 538
11 646 813
9 657 538

31

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

18 Debtors

Debtors comprise the following at 31[st] December:

Income not yet invoiced (rental on Batigère
lease)
Accounts receivable net of depreciation
Other debtors and prepayments
VAT
Receivable from IHFB (now HFB-FCJ)
Investment grant from ARS to be received
from IHFB (now HFB-FCJ)
Investment grant on cost overrun of the
smoke extraction system to be received from
IHFB (now HFB-FCJ)		 2024
2023
2024
2023
€
€
£
£
276 300
546 840
229 108
475 259
..
165 803
..
144 099
225 102
25 458
186 655
22 126
279 802
78 716
232 008
68 412
62 825
62 825
52 094
54 601
..
..
..
..
..
..
..
..
844 029
879 642
699 871
764 497

19 Sinking fund

A sinking fund has been set up to meet unforeseen expenses. As of 31[st] December 2024, this fund has a balance of €241 882/£200 569 (2023 €30 922/£26 874). The amount is invested in a passbook savings account and earned interest of €1 881 / £1 560 for the year ended 31[st] December 2024 (2023 € €942 / £818).

This "sinking fund" was initially planned to face future cost of refurbishment but there is in fact no constraint on its use.

20 Current liabilities

Current liabilities comprise the following at 31[st] December:

Social debt
Suppliers
Due to tenants
Deposits received from tenants
VAT
IHFB contribution (see below)
Payments received in advance
Due to IHFB (now HFB-FCJ)
Accrued interest on loans
Other creditors and accruals		 2024
2023
2024
2023
€
€
£
£
54 207
36 638
44 948
31 842
737 928
117 728
611 890
102 317
83 472
..
69 215
..
398 676
450 483
330 582
391 515
68 229
162 651
56 575
141 360
..
..
..
..
725 000
..
601 170
..
79
79
66
69
48 079
1 961
39 867
1 704
..
..
..
..
2 115 670
769 540
1 754 313
668 807

32

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

21 Loans

21.1 Summary

Details of outstanding loans are as follows at 31[st] December:

Short-term bank loans
Short-term portion of property loans
Total short-term loans
Long-term portion of property loans
Total loans
operty loans in detail
Total
Note
€
At 1stJanuary 2024
Rothschild Martin
Maurel - Lombard loan
(a)
500 000
Société Générale
(previously Crédit du
Nord) « PGE » loan
(b)
536 344
Société Générale
(c)
..
Total
1 036 344
At 31stDecember 2024
Rothschild Martin
Maurel - Lombard loan
(a)
5 000 000
Société Générale
(previously Crédit du
Nord) « PGE » loan
(b)
336 168
Société Générale
(c)
1 848 214
Total
7 184 382		 Short-term bank loans
Short-term portion of property loans
Total short-term loans
Long-term portion of property loans
Total loans
operty loans in detail
Total
Note
€
At 1stJanuary 2024
Rothschild Martin
Maurel - Lombard loan
(a)
500 000
Société Générale
(previously Crédit du
Nord) « PGE » loan
(b)
536 344
Société Générale
(c)
..
Total
1 036 344
At 31stDecember 2024
Rothschild Martin
Maurel - Lombard loan
(a)
5 000 000
Société Générale
(previously Crédit du
Nord) « PGE » loan
(b)
336 168
Société Générale
(c)
1 848 214
Total
7 184 382		 2024
2023
2024
2023
€
€
£
£
..
..
..
..
576 483
200 173
478 020
173 970
576 483
200 173
478 020
173 970
6 607 899
836 171
5 479 270
726 720
7 184 382
1 036 344
5 957 290
900 690
Long-term
Short-term
Total
Long-term
Short-term
€
€
£
£
£
500 000
..
414 600
414 600
..
336 171
200 173
444 736
278 753
165 983
..
..
..
..
..
1 036 344 836 171
200 173
859 336
693 353
165 983
(a)
5 000 000
(b)
336 168
(c)
1 848 214		 5 000 000
..
4 146 000
4 146 000
..
..
336 168
278 751
..
278 751
1 473 048
375 166
1 532 539
1 221 451
311 088
7 184 382 6 473 048
711 334
5 957 290
5 367 451
589 839

21.2 Property loans in detail

The details of the loans subscribed and the balances due are as follows:

Amount Amount drawn Amount due at Duration Interest rate
subscribed down at 31stDec. 24
31stDec. 24
€ € €
Rothschild Martin Maurel – (a) Euribor 1 month
Lombard loan 8 000 000 5 000 000 5 000 000 Revolving plus 70 basis points
Société Générale (previously (b) 999 000 999 000 336 168 6 years from 0.25% initial rate
Crédit du Nord) « PGE » loan August 2020
Société Générale – fixed (c) 2 000 000 2 000 000 1 848 214 5 years from 3.91% fixed rate
term loan July 2024

22 Provisions

There are no provisions at the year-end (and none at 31[st] December 2023).

33

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

23 Investment grants

The investment grants received for the fitting of a smoke extraction system in the hospital building and movements thereon are as follows:

vestment grants
e investment grants received for the fitting
ovements thereon are as follows:		 of a smoke extraction system in the hospital building and
Initial investment grant
Additional grant
Total in €
Total in £
Exchange difference
Total in £		 31 Dec. 2023
Increases
Reductions
31 Dec. 2024
€
€
€
€
312 729
..
42 500
270 229
118 101
..
16 050
102 051
430 830
..
58 550
372 280
361 166
..
48 550
312 616
13 268
..
(17 190)
(3 923)
374 434
..
65 740
308 693

In 2011, the Company recorded the commitment received from the Oeuvre du Perpétuel Secours (“OPS”) to retrocede to it the payments received from the Regional Health Agency of Ile de France for its investment support aimed at financing the upgrading of hospital buildings, such as those appearing in the treaty for the partial contribution of assets from the Company to OPS dated 2008. This support amounted at the time to €850 000 and this sum was expected to cover all of the work.

In this context, the Company recognized in its accounts the hospital smoke extraction work which was completed in 2011 for a total cost of € 1,171,000 and accounted for two investment grants: one for the financial debt that it contracted to finance the works (i.e. € 850,000) and a second for the investment which exceeded the initial budget covered by the financing described above, i.e. € 321,000 that OPS has committed to repay in full over 10 years (see note 3.3)

Investment grants are amortized over the depreciation period for the work, ie 20 years.

34

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

24 Unrestricted funds

Revaluation reserve
1967 revaluation of land at rue Barbès
1974 revaluation of other fixed assets
Unrealised gain on investment properties
Revaluation reserve
Total revaluation reserve
Special reserves
Investment reserve
Treasury reserve
Total special reserves
Other reserves
Reserve for refurbishment of assets
1982 grant received from the “Service de la
coordination de l’Action Economique du
département des Hauts de Seine »
Various other funds
Total other reserves
General funds
Total special and other reserves
Total unrestricted funds		 2024
2023
2024
2023
€
€
£
£
198 184
198 184
164 334
172 242
472 195
472 195
391 544
410 385
670 379
670 379
555 878
582 627
14 062 470
28 067 277
11 660 600
24 393 270
14 732 849
28 737 656
12 216 478
24 975 897
173 130
173 130
143 559
150 467
549 156
549 156
455 360
477 271
722 286
722 286
598 919
627 738
1 000 000
1 000 000
829 200
869 100
1 102 352
1 102 352
914 070
958 054
1 310 983
1 310 982
1 087 069
1 139 375
3 413 335
3 413 334
2 830 339
2 966 529
26 526 646
26 072 325
21 995 895
22 659 459
30 662 267
30 307 945
25 425 153
26 253 726
45 395 116
58 945 602
37 641 631
51 229 623

As described in note 16.1, the investment properties were independently valued at 31[st] December 2024 and this gave rise to a € 14 102 192 (£ 11 693 538) decrease in the revaluation reserve that was recorded at 31[st] December 2024.

The other funds shown above include various donations received over the years. The Directors have qualified these funds as non-designated or general funds on the basis of available data and because, to the best of the knowledge of those involved in preparing the financial information, there is no contradictory information that would lead to this qualification being questioned. This is consistent with the way in which such funds were previously reported.

35

HBHC_UK Footnotes_31_Dec_24_VDef

HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2024

25 Reconciliation to French financial reporting

Given its status in France and French law, the books and records of the Company are maintained under French accounting standards using the French chart of accounts and restated for the purposes of this financial reporting. The net result reported for the year ended 31[st] December and its reconciliation to the net movement in funds after taxation as reported herein can be reconciled as follows:

2024 2024 2023
€ €
Net profit (loss) for the year per French accounts 137 159 (1 234 713)
Reconciling items Impacted items
Disposal of investment assets .. 919 606 Unrealized gain & loss
Investment asset .. .. Unrealized gain & loss
Depreciation of investment assets .. .. General funds
Revaluation of investment assets (14 004 807) 229 839 Unrealized gain & loss
Difference in depreciation charge 317 162 523 618 General funds
Net movement in funds after taxation (13 550 486) 438 350
e reconciliation of net equity per the French accounts and the total unrestricted funds is as follows
2024 2023
€ €
Net equity per French accounts 19 476 197 19 339 037
Reconciling items
Revaluation of assets 14 062 471 28 067 276
Cumulative difference in depreciation charge 11 856 448 11 539 289
Other .. ..
Total unrestricted funds 45 395 116 58 945 602

The reconciliation of net equity per the French accounts and the total unrestricted funds is as follows:

26 Off balance sheet commitments

26.1 Other reserves

The grant of €1 102 352 received in 1982 from the Service for the Coordination of Economic Action of the Department of Hauts-de-Seine is definitively acquired over a period of 40 years. In the event that the Company should leave the French social security system, a pro-rata temporis reimbursement would have applied. As of 31[st] December 2022, the liability was fully extinguished.

26.2 Other commitments

As is explained at note 3.5, the Company has provided a lien (“nantissement”) over the funds managed by Rothschild Martin Maurel in guarantee of the Lombard loan that has been obtained to finance the work on the Château.

In addition, to secure the €2 million loan from Société Générale, an amount of €500,000 has been deposited with Société Générale and is pledged in guarantee of the loan.

36

HBHC_UK Footnotes_31_Dec_24_VDef