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:
- Grant Thornton, 27, rue James Watt, 37206 Tours, France
## **1.2 BANKERS AND FUND MANAGERS**
The Charity’s bankers in 2024 were:
- Société Générale, 50 rue d’Anjou, 75008 Paris, France
- Rothschild Martin Maurel, 29 avenue de Messine, 75008 Paris, France
## **1.3 SOLICITORS AND OTHER LEGAL ADVISERS**
The Charity’s legal advisers throughout 2024 and to date are:
- Farrer & Co, 66 Lincoln's Inn Fields London WC2A 3LH
- TMF Corporate Secretarial Services Ltd., 13th Floor, One Angel Court, London EC2R 7HJ, United Kingdom
- Maître Séverine Lamey, 26 avenue de l’Opéra, 75001 Paris, France
- Maître Jean-Philippe Dom, 13 rue de Marivaux, 75002 Paris, France
- Maitre Dominique Villemot, 13 rue de Marivaux, 75002 Paris, France
- Latournerie Wolfrom, 164 rue du Faubourg Saint-Honoré, 75008 Paris, France
## **1.4 INDEPENDENT PROPERTY VALUERS**
The Charity’s independent property valuers throughout 2024 and to date are:
- Savills Valuation SAS, 59 rue de Tocqueville, Paris, 75017 France
## **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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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:
- The Trustee Emeritus college which comprises retiring Trustees and other individuals who have made outstanding contributions to the Charity, appointed to the college by the Trustees in recognition of their contribution to HBCF (or, post-merger – see below, to the BCF). They may continue to serve on committees (which must comprise two Trustees including the chair of the committee) and may, in the case of former Trustees, if they so desire, resign after one year and apply to become trustees once again.
- The Supporters’ college which comprises people who have expressed a genuine interest in HBCF and are seen as potential future trustees or subject matter experts that could usefully contribute to committee work. The creation of this college and the recruitment of members was a priority given the need to ensure that the next generation of trustees was identified and onboarded on a timely basis.
## **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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**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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## **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:
- to preserve, protect, improve and enhance the medical, social, psychological, physical, mental and emotional health and well-being of the _Preferred Beneficiaries_ and other persons residing in the communities in which they live including but not limited to the provision of grants and the provision of community facilities and resources for _Voluntary Organisations_ ;
- the relief of those in need, hardship or distress in particular but without limitation for Preferred Beneficiaries, including but not limited to the provision of accommodation such as convalescent and retirement homes and the payment of costs towards study for a profession, trade or calling; and
- the advancement of health by fostering collaboration and cooperation between the United Kingdom and France in the medical and para-medical fields, in particular but not exclusively by making grants to support applied research into human health, hospital care (with a preference for supporting hospital care for Preferred Beneficiaries) or such other means as the Trustees consider appropriate, including but not limited to, medical research, medical education and the fostering of Anglo-French co-operation in the medical field;
- _Preferred Beneficiaries_ shall mean persons resident in France who are British and their immediate close relatives and other persons resident in France with British connections or associations with the United Kingdom including (but without limitation) persons who have in the past been resident in the United Kingdom.
- _Voluntary Organisations_ shall mean independent organisations, which are established for purposes that add value to the community as a whole, or a significant section of the community, and which are not permitted by their constitution to make a profit for private distribution. Voluntary Organisations do not include local government or other statutory authorities.
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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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:
- Reserves policy: approved at the Council meeting held on 16[th] June 2021.
- Charitable giving policy: approved at the Council meeting held on 20[th] October 2021 and updated on 17[th] January 2024 to take account of latest guidance on safeguarding.
- Investment policy: approved at the Council meeting held on 20[th] October 2021 and modified on 19[th] April 2023 to allow 20% of managed funds to be invested in non-euro denominated bonds and equities with no currency hedge.
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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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:
- By making the hospital premises available to the Foundation Cognacq-Jay on a rent-free basis;
- By contributing in kind (rent free office space until 18[th] February 2022) and financially to the British Charitable Fund so that it could provide for British citizens in need of care and
- Through other discretionary giving to both British charities operating in France and other locally incorporated charitable entities whose purposes are aligned with the objects of the Charity and who satisfy the Charitable Giving Committee’s due diligence process.
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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## **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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## **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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## **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:
- Select suitable accounting policies and then apply them consistently,
- Make sound judgements and estimates that are reasonable and prudent, and
- Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
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:
- So far as we are aware, there is no relevant audit information of which the Company’s auditors are unaware; and
- As the directors of the Company, we have taken all the steps that should have been taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
## **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**
13
## 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**
14
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:
- give a true and fair view of the state of the Charitable Company’s affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Principles; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
**Grant Thornton**
**Hertford British Charitable Fund Year ended 31 December 2024**
15
## **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:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
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:
- At 31[st] December 2024 and the year then ended: € 1 = £ 0.8292
- At 31[st] December 2023 and the year then ended: € 1 = £ 0.8691
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:
- Maximum amount available: €8 million (£ 6.95 million)
- Length of the loan: undefined (in effect a credit facility rather than a loan)
- Reimbursement: in fine
- Interest rate: Euribor 1 month plus 70 basis points
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:
- Amount borrowed: €2 million (£ 1.66 million)
- Length of the loan: 5 years fixed term from July 2024
- Reimbursement: monthly
- Interest rate: 3.91% fixed rate
## **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:
- making freely available the hospital building whose market rent has been independently evaluated by Savills in a report issued on 6[th] February 2025 as reaching €1.68 million per annum.
- making an annual grant to the BCF (which amounted to €112 000 / £92 870 in 2024 compared to €105 250 / £91 473 in 2023) and to other charities based in France but with UK ties and whose charitable objects are aligned with those of the Company. These grants amounted to €52 938 (£43 896) in 2024 compared to €55 380 (£48 131) in 2023.
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:
- Land and buildings of the Villiers site which comprise 3 buildings, the original hospital building (now offices) at 48 rue de Villiers and two more recent office buildings at 1 rue Barbès and 2 rue Voltaire.
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