## HERTFORD BRITISH CHARITABLE FUND
(previously the Hertford British Hospital Corporation, Paris and including the British Charitable Fund, Paris)
## Annual Report
(INCLUDING THE STRATEGIC REPORT AND DIRECTORS’ REPORT)
## FOR THE YEAR ENDED
## 31[st] DECEMBER 2025
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HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
**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 French association number W922001195 Principal office 3 rue Barbès, 92300 Levallois Perret, France Registered office UK 66 Lincoln’s Inn Fields, London WC2A 3LH, United Kingdom
## **1.1 ACCOUNTANTS**
The Charity’s accounting and payroll records are maintained by:
- DGA Audit, 23 rue d’Anjou 75008 Paris, France
## **1.2 AUDITORS**
The Charity’s auditors are:
- Grant Thornton NI LLP, 12- 15 Donegall Square West, Belfast for UK statutory reporting and
- Grant Thornton France, 27, rue James Watt, 37206 Tours, France for French statutory reporting
## **1.3 BANKERS AND FUND MANAGERS**
The Charity’s bankers and financial advisers in 2025 were:
- Société Générale, 50 rue d’Anjou, 75008 Paris, France (banking services)
- Rothschild Martin Maurel, 29 avenue de Messine, 75008 Paris, France (fund management services for the portfolio held in France)
- Cazenove Capital (for BCF- Endowment, a linked charity - see below), 1 London Wall Place, London, EC2Y 5AU, United Kingdom (fund management services for the portfolio held in the United Kingdom)
- Lloyds Bank (for BCF-Endowment, a linked charity - see below), Strand branch, Registered office: 25 Gresham Street, London EC2V 7HN United Kingdom (banking services)
## **1.4 SOLICITORS AND OTHER LEGAL ADVISERS**
The Charity’s legal advisers throughout 2025 and to date are:
- Farrer & Co, 66 Lincoln's Inn Fields London WC2A 3LH, United Kingdom
- TMF Corporate Secretarial Services Ltd., 13th Floor, One Angel Court, London EC2R 7HJ, United Kingdom (whose services ended in 2025, with a transfer of registers and archives that was completed in 2026)
- 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
## **1.5 INDEPENDENT PROPERTY VALUERS**
The Charity’s independent property valuers throughout 2025 and to date are:
- Savills Valuation SAS, 59 rue de Tocqueville, Paris, 75017 France
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HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
The Trustees / Directors present below the strategic report for the year ended 31 December 2025 which comprises information including performance, achievements and financial review and plans for the future. The annual report also includes the Directors’ report required by company law.
## **2 GOVERNANCE**
## **2.1 DIRECTORS, TRUSTEES AND BOARD**
The Directors and members of the Board serving during the year and since the year end (collectively hereafter “the Directors” or “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
Janet Goatly (appointed on 18[th] June 2025)
Ian Gosling _(renewed for three years at the 21[st] June 2023 Trustees’ meeting)_
Richard Hallows (since 1[st] January 2025 and until his resignation on 20[th] October 2025) Julia Howes (since 1[st] January 2025)
Paul Johnson-Ferguson, Honorary Treasurer Matthew Kay (since 1[st] January 2025)
Ian McDonald
Richard Seguin (until 18[th] June 2025 when his mandate expired)
Peter Terrell _(renewed for three years at the 21[st] June 2023 Trustees’ meeting)_
In addition, as previously disclosed in the footnotes to the financial statements and as confirmed in a Charity Commission Scheme dated 13[th] November 2025, the Secretary of State for Foreign, Commonwealth and Development Affairs who is, by virtue of that office, Minister of Public Building and Works, acts as holding trustee for the Charity’s properties.
## **2.2 DIRECTOR GENERAL**
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 Cognacq-Jay in 2028 (but also refer to note 3.2 to the financial statements). 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 which comprises a base salary and a variable bonus on the basis of a documented set of annual objectives and realisations.
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## **2.3 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 – to the BCF). They may continue to serve on committees (which must include 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 who 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.
## **2.4 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 is a guest at all meetings.
## **2.4.1 PROPERTY OPERATIONS AND STRATEGY COMMITTEE**
Stephen Cowen, Chair
Peter Terrell, Vice-Chair Patrick Deedes (Supporter) – from 22[nd] January 2025
Sandra Esquiva-Hesse
Christopher Gilmore (Trustee Emeritus)
Paul Johnson-Ferguson
Richard Seguin (initially as a Trustee and as a Trustee Emeritus since June 2025)
## **2.4.2 FINANCE, RISK, AUDIT & GOVERNANCE (“FRAG”) COMMITTEE**
Paul Johnson-Ferguson, Chair
David Blanchard (Trustee Emeritus)
Alexandra Blanchard (Supporter since November 2025)
Stephen Cowen
Ian Gosling (ex-officio as a legal subject matter expert)
Matthew Kay (since January 2025) Christopher Spencer (Supporter)
## **2.4.3 INVESTMENT SUB-COMMITTEE (of FRAG)**
Paul Johnson-Ferguson, Chair
Edward Archer (Supporter)
Jonathan Goatly (Trustee Emeritus - from April 2026)
Stephen Smith (Supporter - until his resignation in April 2026)
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## **2.4.4 NOMINATIONS COMMITTEE**
Susan Cheyne, Chair
Dr Julia Bache
David Blanchard (Trustee Emeritus)
Janet Goatly
Peter Terrell
## **2.4.5 CHARITABLE GIVING COMMITTEE**
Ian McDonald, Chair
Dr Julia Bache
Olivia Bedier (Supporter)
Stephanie Frackoviack (Supporter) - who resigned from this committee in March 2026
Louisa Hobday (Supporter)
Alicia Suminski (Trustee Emeritus, who resigned from this committee in March 2026)
Charles Tatham (Supporter, from April 2026)
Bridget Terrell (Trustee Emeritus)
## **2.4.6 WELFARE COMMITTEE**
A Welfare committee was formed in January 2025 to oversee the activities previously carried out by the British Charitable Fund and it comprises:
Julia Howes, Chair
Dr Julia Bache
Jonathan Goatly (Trustee Emeritus)
Richard Hallows (Trustee and then Trustee Emeritus and until his resignation on 20[th] October 2025)
Matthew Kay
And those members of the WelfareTeam who are Welfare Managers and thus Supporters
## **2.4.7 CRISIS MANAGEMENT AND COMMUNICATIONS**
A Crisis Management and Communications committee was formed in November 2025 to oversee the preparedness for crisis and, more generally, to consider how the Charity should manage its communications. It comprises:
Christopher Wicker, Chair (until 17[th] June 2026)
Paul Johnson-Ferguson
Stephen Cowen
Stephanie Frackowiak (Supporter)
Stephanie Bisson-Smith (Supporter) who resigned in May 2026
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## **3 OVERVIEW, GOVERNING DOCUMENTS AND HISTORY OF THE CHARITY**
## **3.1 CONSTITUENT PARTS OF THE CHARITY**
Up until 31[st] December 2024, the Charity’s reporting covered two entities, further described below: the Hertford British Charitable Fund and the Hertford British Hospital. At 31[st] December 2025, the financial reporting includes:
- The Herford British Charitable Fund (previously known as the Hertford British Hospital Corporation, Paris) which is a registered charity, incorporated in the United Kingdom in 1966 and registered in France in 1970 as a non-profit organisation to manage the assets of the Original Charity (see below) and those assets received subsequently as gifts and donations (referred to as “HBCF”, “The Company” or “The Charity”).
- The Hertford British Hospital (HBH) which was founded in 1871 by the late Sir Richard Wallace (referred to as “the Original Charity”): this charitable trust merged into HBCF (see below) on 26 November 2025.
- The British Charitable Fund, Paris a UK registered charitable trust 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. This organisation merged into HBCF on 1[st] January 2025 but there remained a fund which was considered to be a permanent endowment, and this has become a linked charity known as BCF-E (see below).
- BCF-E, a UK charitable trust that is linked to HBCF and which has no activity other than to hold investment funds. On 12[th] June 2025, Charity Commission concurred with the Trustee’s resolution under s.282 of the Charities Act 2011 such that HBCF, acting as sole trustee of BCF-E, can spend the capital as if it were income.
- BCF in France, a French association constituted under the law of 1901 which previously, and until that entity’s merger with HBCF, acted as an agent for the British Charitable Fund, Paris. This entity continues to manage the Welfare activity and, whilst it has its own governance, is funded entirely by a grant from HBCF.
In addition, BCF France was created under French law in late 2025 and is an independently managed entity whose sole purpose is to receive gifts and legacies which it manages for the benefit of HBCF. In the period to 31[st] December 2025, there was no activity in this entity apart from the contribution by HBCF, as Founder, of an initial grant of €15,000. Given its purpose, it has been determined that for United Kingdom reporting purposes, BCF France is to be considered as being under the control of HBCF and is included in the consolidated financial statements.
## **3.2 BRIEF HISTORY**
The Original Charity’s hospital activity began in 1871 and was transferred to the French charity l’Oeuvre du Perpetuel Secours (hereafter “OPS”) with effect from 1st 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 (as it was then) 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 were 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
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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 would 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 September 2028. However, this date has now been put into question, see note 3.2 to the financial statements.
As part of the reorganisation of the hospital activity and in furtherance of its charitable purposes, on 1[st] January 2021, the Company transferred its remaining medical activity (the “Centre International de Dermatologie” or “CID”) to the Fondation for a symbolic consideration 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.
## **3.3 GOVERNING DOCUMENTS**
HBCF is governed in accordance with its memorandum and articles of association that were updated on 22[nd] November 2023 and 17 January 2024.
In addition, the Trustees have approved a governance framework and a number of policies as follows:
- Governance framework: this was approved by the Trustees on 21st January 2026
- Risk policy: approved by the Trustees on 21st January 2026
- A conflict-of-interest policy last updated in March 2026
- Reserves policy: approved by the Trustees on 16th June 2021 (and modified on 18[th] June 2025 to reduce the minimum cash holding from €1 million to €500,000).
- Charitable giving policy: approved by the Trustees on 20th October 2021 and updated on 17th January 2024 to take account of latest guidance on safeguarding.
- Welfare manual which sets out the conditions under which people may benefit from grants made by BCF in France. This was last updated in June 2025
- Investment policy: approved by the Trustees on 20th October 2021 and modified on 19th April 2023 to allow 20% of managed funds to be invested in non-euro denominated bonds and equities with no currency hedge.
- An expenses policy
- Data protection policy (being updated as part of the deployment of the Grant Management System and, in the first half of 2026, of a new website) and, in development, a “fair usage” policy for IT infrastructure as made available to employees and volunteers.
## **4 OBJECTIVES, ACTIVITIES and PERFORMANCE**
## **4.1 PURPOSE AS SET OUT IN GOVERNING DOCUMENTS**
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.
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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.
## **4.2 MAIN ACTIVITIES**
The Charity manages its investment properties to maintain them in good standing and generate rental income. It also provides facilities to the Fondation Cognacq-Jay as described above in section 3.2.
Similarly, it works with its advisors to manage its financial investments in as tax efficient as manner as possible (favouring capital growth over coupons and dividends) and these investments are used essentially as a guarantee for loans subscribed to fund the renovation of the revenue generating buildings and to finance the interest on those loans.
The Charity’s income is used to reimburse the loans described above, to cover daily administrative costs and for charitable purposes by:
- (a) Funding the activities previously carried out by the BCF, Paris and with the purpose of acting act as a “charity of last resort” by coming to the (financial) assistance of beneficiaries as defined in the Charity’s objects.
This work is enabled through a team of volunteers, known as Welfare Managers, and numbering 11 on average in 2025, supported by one salaried Welfare Administrator. Welfare Managers spend on average 25 hours per month on HBCF business.
In 2025, this work helped over 140 families in distress (2024 130 families) for a total spend of €445 029 /£388 332 (2024 €351 812 / £291 722).
- (b) Making grants to other charities and not for profit organisations, essentially in France but occasionally in the United Kingdom where such charities or organisations have a purpose broadly aligned with that of HBCF and require funding for a specific project which addresses either wellbeing of (predominantly) British people in France or the furthering of Franco-British collaboration in the fields of medical and nursing care. The aim is to establish ongoing relationships with these charities or organisations and, in. that way, to allow them to project themselves in the medium term.
This work is enabled through the work of the Charitable Giving Committee whose members are all volunteers and spend a few hours per month on HBCF business.
In 2025, grants were paid to 11 charities or organisations (2024 8) for a total spend of €72 580 /£63 333 (2024: €27 018 / £22 403).
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- (c) By making the hospital premises available to the Foundation Cognacq-Jay on a rent-free basis. 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 26 February 2026, that rent for 2025 would have approximated €1.68 million / £1.46 million (unchanged from 2024).
The Charity also continues to assist the Foundation Cognacq-Jay with the “British” aspects of the hospital.
## **4.3 CHARITY COMMISSION GUIDANCE ON PUBLIC BENEFIT**
Throughout 2025, the Trustees / Directors 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.
## **4.4 KEY PERFORMANCE INDICATORS**
In addition to various specific matters described throughout this report, the Trustees / Directors receive periodic (quarterly) reporting from the Treasurer which focuses on the cash and loan position and reports on funding and risks as identified by the Financial Risk Audit and Governance committee. The Treasurer and Director General also monitor:
- Charitable giving to individual beneficiaries (ex BCF) in € (see section 4.2(a) above)
- Charitable giving to other charities in € (see section 4.2(b) above)
- Cash flow: revised forecast year-end balance in € compared to budget
- Investment portfolio performance in % and compared to agreed benchmarks
- Coverage of the Lombard loan (capital outstanding as a % of portfolio value)
- Property income in €
- Financial income in €
## **4.5 PERFORMANCE AND PLANS FOR FUTURE PERIODS**
In addition to the day-to-day charitable activity described above, the Charity continues to actively work on a number of matters which will impact its ability to serve its beneficiaries going forward.
## **4.5.1 Managing costs including interest charges**
The Finance, Risk, Audit & Governance Committee will continue to keep operating costs to a minimum. Legal costs, which, in 2025, continued to be significant for a fifth year running, as the Trustees pursue changes in the structure, are finally expected to tail off in 2026.
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 2025 amounted to €275 939/ £240 201 (2024: €222 239 / £184 281).
## **4.5.2 Structure**
Trustees continue to work with the Charity’s legal advisors to obtain relevant approvals, including that of the Charity Commission and the Foreign Commonwealth and Development Office (“FCDO”), to reduce the complexity of the HBCF structure: significant progress on this front was achieved in 2025 with the merger of HBCF and HBH.
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## **4.5.3 Grant Management System**
Another major step achieved in 2025 was the merger of BCF, Paris into HBCF. Looking forward to 2026, the Trustees and Director General are working to deploy a Grant Management System that will streamline the documentation of the grant making processes, in compliance with GDPR requirements for personal data and should, despite a growing demand for assistance, enable more beneficiaries to be helped without having to increase the number of salaried staff or volunteers.
## **4.5.4 Property renovation**
As reported in prior 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 plan will ensure that, in due course, all of the Charity’s investment property assets are 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. A major milestone was achieved in February 2025, when the original hospital building, now referred to as “the Château” was delivered to its new tenants after a complete restructuring which not only enabled the building facade, which is listed as being of historical interest, to be brought back to its original design (in collaboration with the relevant authorities) but also to meet environmental standards, achieving “Effinergie Rénovation” certification.
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.
## **4.5.5 Investment and borrowing activities**
As reported previously, the building at 12 rue Barbès in Levallois-Perret was sold on 18th 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 Sub-Committee. The investments have been made in accordance with the Charity’s investment policy and comprise 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.
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 2025, as shown in note 18 to the financial statements, these funds have been marked to market with an increase in value of €585 290 /£510 724.
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The Company’s fund managers comply with the investment policy which requires that the assets will be invested in line with its aims and represent sustainable &responsible investing. In accordance with Charity Commission guidance CC14, certain individual investments are excluded as perceived to conflict with the Charity’s purpose or harm its reputation. Areas that may be in conflict with the Charity’s purpose would be companies generating significant (>30%) of their revenues from Tobacco, Weapons Sales, Mercenary activities or Thermal Coal. This list is periodically reviewed by the Finance Risk Audit and Governance. Committee and presented to the Trustees annually.
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 2025 amounted to €134 851 / £117 671 (2024: €336 171 / £292 170).
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 2025, several tranches had been drawn down, totalling €7 000 000 (£6 108 200) 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
The maximum draw down of €7 million was reached in 2025, budgeted to reduce to €6.3 million by 31st December 2027 (£5.5 million) at which point the Wallace Gardens lease was due to expire. The lease was amended in early 2024 and now expires on 31[st] December 2030 at which time the Lombard loan is expected to be almost fully paid down.
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
## **4.6 REVIEW OF THE CHARITY RESERVES**
As is more fully described in note 25 to the financial statements, the Company’s consolidated reserves at 31[st] December 2025 amounted to €50 946 067/£44 455 538 (€45 395 116 /£37 641 631 at 31[st] December 2024). These funds do not comprise any restricted or designated funds.
By far the greatest part of those funds are represented by property legal title to which is vested in the Secretary of State for Foreign Affairs, acting as a Holding Trustee (see note 17.2 to the financial statements) and cannot be readily divested. The remainder is held in the form of financial assets, of which a majority are granted as security for the outstanding Lombard loan (see note 3.4 to the financial statements) and, therefore, cannot be readily realised.
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An annual review is performed of cash requirements and needs. The last review by the Trustees / Directors, in January 2026, reviewed projected funding needs to the year 2042, based on 27 different building redevelopment scenarios. No immediate requirement for realising the Charity’s investments was identified, rather the Charity expects to repay its Lombard funding facility in the years to 2030, prior to needing to raise funds against its investments to redevelop its property portfolio.
The Trustees / Directors are satisfied that the reserves are held in compliance with the Charity’s reserves policy.
## **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.
In 2025 and following the merger of the British Charitable Fund, Paris into HBCF, HM Ambassador to France, Sir Thomas Drew, confirmed that he would act as joint patron with Lord Hertford.
## **5.2 APPOINTMENT OF TRUSTEES**
The Charity is managed by a Board comprising least eight and not more than twelve Trustees. In addition, there is one Honorary Trustee, it being specified that this Honorary Trustee (who represents the British Embassy in Paris) 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 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 and other appropriate knowledge.
Trustees become company law Members of the Company when appointed and cease to be company law 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 continues to ensure that significant attention to creating a pool of potential “next generation” trustees whilst also ensuring that the wisdom and knowledge of long-standing 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, no less than four times a year. 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 appoint the Chairs and members of the various committees listed above and, as appropriate, approve their terms of reference.
12
HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
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.
## **5.5 THE BRITISH CHARITABLE FUND AND OTHER RELATED PARTIES**
The Charity 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 (HBH), Sir Richard Wallace, was also the chairman and a generous benefactor of the BCF in the past.
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 2025 or 2024.
## **6 FINANCIAL REVIEW**
## **6.1 2025 FINANCIAL STATEMENTS - REVIEW**
The cash position of the Charity at 31 December 2025 was €855 030 / £746 099, and Loans outstanding represent € 8 607 898 / £7 511 251 compared to a cash position of €890 396 /£738 317 and outstanding loans of €7 184 382 / £5 957 290 at 31[st] December 2024. The net cash position has been reduced by the spending on the Château renovation which amounted to €1 362 419/ £1 188 847 in 2025 (€8 712 914 / £7 224 748 in the year to 31[st] December 2024).
In 2025, the let property income amounted to €3 032 373 / £2 646 049 compared to €1 580 502 / £1 310 552 in 2023: the variation is explained by mainly by the delivery of the Château to Comet Levallois in February 2025.
In 2025, the Charity realised net income of €785 411 / £ 670 832 before deducting tax and before taking into account unrealised gains on the valuation of assets. The net movement in funds after taking into account both taxation and the unrealised valuation gains amounted to €5 550 951 / £4 701 000. There is a net loss of €18 201 (in 2024, a profit of €137 159) 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 26 to the financial statements.
A professional valuation of the Château at 31[st] December 2025 resulted in an increase in the estimated market value of €1 237 581 / £1 079 913 bringing the total value of the investment property portfolio to €42.3 million / £36.9 million (excluding the hospital premises which are used for charitable purposes). This gain in value resulted essentially from completion of the Château project, the trend in market rates and the state of the office market in the Paris region. The valuation of Wallace Gardens as at 31[st] December 2025 is unchanged from that estimated at 31[st] December 2024 and Savills, the valuers, have issued a comfort letter that supports that position.
As is further explained in note 17.2 to the financial statements, legal title to 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 were also Trustees of the Original Charity (Hertford British Hospital) until its merger into HBCF.
13
HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
## **6.2 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. A formalised risk review is performed annually and the first such review will be presented to the Trustees / Directors in June 2026.
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.
The Investment Committee reviews the Charity’s investment positions on an ongoing basis (at least monthly, or more frequently if there is market turbulence). Any significant movements are reported to Finance Risk Audit and Governance Committee and then to the Board.
In 2025, 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 TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The Charity’s Trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees / Directors to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure for that period.
In preparing these financial statements, the Trustees / Directors are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the applicable Charities SORP
- Make judgments and accounting estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is appropriate to presume that the charity will continue in business.
The Trustees / Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
14
HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
Each of the persons who is a Trustee / Director at the date of approval of this report confirms that, in so far as each Trustee / Director is aware:
- there is no relevant audit information of which the Charity’s auditor is unaware; and
- each Trustee / Director has taken all steps that they ought to have taken as a Trustee / Director to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.
## **8 SOCIAL, ENVIRONMENTAL and ETHICAL CONSIDERATIONS**
The Trustees ensure that the consideration of social, environmental and ethical matters remains proportionate and in the interest of HBCF’s purpose overall.
## **8.1 SOCIAL CONSIDERATIONS**
The very purpose of the Charity, as described above, is to enhance the wellbeing of individuals in distress, either directly or through like-minded charities and not for profit organisations. In addition, the Charity has adopted appropriate safeguarding policies and data protection policies that are focused on protecting individuals. Where relevant, the Charity ensure that any other charity or organisation to whom it provides support comply with similar safeguarding policies or the nearest French equivalent.
## **8.2 ENVIRONMENTAL CONSIDERATIONS**
The activities of the Charity are not major contributors to climate change or any other damage to the environment: there is very little travel (other than by train to London for Board meetings twice a year). The main impact on the environment comes from the Charity’s buildings and, as stated earlier, the aim is to ensure that, over time, all the properties are brought up to current standards. In this context and as part of the Château renovation, the Charity has already ensured that the site in Levallois is connected to the urban heating and cooling networks, thus ensuring that the Château (today) and all the other buildings (as they are renovated in future) make use of environmentally optimised sources of heat and cold, removing any need to have their own boilers, cooling plants, etc.
## **8.3 ETHICAL CONSIDERATIONS**
In addition to the question put at each Board meeting, the Trustees are all expected to complete an annual return that would highlight any conflict of interest, and they are also asked increasingly being asked to assess annually their performance as trustees / directors. The Charity’s expenses policy is restrictive, with low caps on expenditure and Trustees receive no compensation for their work for HBCF.
In addition, to avoid any potential issues with beneficiaries, all grant making decisions are made collegiately in the Welfare Team and Charitable Giving Committee with appropriate Board supervision.
As explained in section 4.5.5 above, the Charity’s fund managers comply with an investment policy which prohibits certain investments which are considered as potentially in conflict with the Charity’s purpose.
## **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 Charity 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 1st January 2025 with the merger with BCF and work is ongoing, not least through the implementation of the Grant Management System to update the GDPR policies and documentation.
15
HERTFORD BRITISH CHARITABLE FUND Strategic Report including the Directors’ Report Year ended 31[st] December 2025
## **10 AUDITORS**
The reappointment of Grant Thornton France (the French member firm of Grant Thornton International Ltd.) for a six-year period commencing with the examination of the 2022 financial statements prepared under French statutory reporting standards 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.
The Trustees / Directors have been advised that the audit of the financial statements prepared under United Kingdom Accounting Standards, previously carried out by the same team from Grant Thornton France, should be performed by the Belfast office of Grant Thornton Ireland for the year ended 31[st] December 2025 and for the remainder of the original audit mandate.
*
* *
By order of the Trustees / Directors
Christopher Wicker, Chairman
1[st] June 2026
16
## Independent auditor’s report to the trustees of Hertford British Charitable Fund
## Opinion
We have audited the financial statements of Hertford British Charitable Fund (“the charity”), which comprise the Statement of Financial Activities, the Balance Sheets, the Statement of Cah Fow and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and accounting standards issued by the Financial Reporting Council including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, Hertford British Charitable Fund’s financial statements:
- give a true and fair view of the charity’s affairs as at 31 December 2025 and the charity’s company’s incoming resources and application of resources including, the income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Statement of Recommended Practice: Accounting and Reporting by Charities, 2019 Edition; and
- have been prepared in accordance with the requirements of the Companies Act 2006
## Basis for opinion
We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under the Act. We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the charity to cease to continue as a going concern.
In our evaluation of the trustees' conclusions, we considered the inherent risks associated with the charity’s business model including effects arising from macro-economic uncertainties such as the changes in inflation and interest rates and geopolitical events , we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.
In auditing the financial statements, we have concluded that the trustees’ use of going concern basis of accounting in the preparation of the financial statements is appropriate.
17
## Independent auditor’s report to the trustees of Hertford British Charitable Fund
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The other information comprises information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors’ report, prepared for the purposes of company law, included in the Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and directors’ report included in the Annual Report have been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the charity and their environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report or the Directors’ Report included in the Annual Report.
## 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 by the charity, or
- returns adequate for our audit have not been received from branches not visited by us; or
- The charity’s financial statements are not in agreement with the accounting records and returns. or
- Certain disclosures of trustees’ remuneration specified by law are note made; or
- we have not received all the information and explanations we require for our audit.
## Responsibilities of trustees
As explained more fully in the Statement of Trustees’ responsibilities, the trustees (who are also the directors of the charity for the purpose of the 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 trustees determine necessary to
18
## Independent auditor’s report to the trustees of Hertford British Charitable Fund
enable the preparation of financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity through our general not for profit and charity sector experience and discussions with management. We determined that the following laws and regulations were most significant: Charities SORP 2019, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', Charities Act 2011, Companies Act 2006.
- We enquired of management concerning the group's and parent charity's policies and procedures relating to:
- the identification, evaluation, and compliance with laws and regulations;
- the detection and response to the risks of fraud; and
- the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and regulations.
- We enquired of management and the Finance, Investment and Risk Committee, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud. We corroborated the results of our enquiries to relevant supporting documentation.
- We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. We determined that the principal risks were in relation to:
- journal entries that increased revenues or that reclassified costs from the statement of financial activities to the balance sheet
- potential management bias in determining accounting estimates
- Our audit procedures involved:
- identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud;
- challenging assumptions and judgements made by management in its significant accounting estimates, such as the useful life of assets and valuation of assets held at market value; and
- identifying and testing journal entries, in particular manual journal entries; and
- completing audit procedures to conclude on the compliance of disclosures in the Annual Report and Consolidated Financial Statements with applicable financial reporting requirements
19
## Independent auditor’s report to the trustees of Hertford British Charitable Fund
- These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
- The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's:
- understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation
- knowledge of the industry in which the client operates
- understanding of the legal and regulatory requirements specific to the entity including:
- the provisions of the applicable legislation
- the regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules.
- Engagement team communications in respect of potential non-compliance with laws and regulations and fraud including the potential for fraud in revenue recognition, remaining alert to any indications of improper use of charitable funds and other potential serious incidents necessitating a serious incident report to the Charity Commission in the period;
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the charity'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 charity'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 charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Nikita Lynn (Senior Statutory Auditor) For and on behalf of
## Grant Thornton (NI) LLP
Chartered Accountants & Statutory Auditors Belfast 15 June 2026
20
HERTFORD BRITISH CHARITABLE FUND (previously the Hertford British Hospital Corporation, Paris and including the British Charitable Fund, Paris)
## FINANCIAL STATEMENTS
## FOR THE YEAR ENDED
## 31 DECEMBER 2025
21
HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2025
## Consolidated Statement of Financial activities
(including income and expenditure account) For the years ended 31[st] December
|Notes
Income from property investments
6
Cost of property investments
8
**Net income from property investments**
Income from financial asset
Interest and related charges
**Net income from financial asset**
Depreciation charge on hospital
9
Charitable giving (grants paid)
10
**Total expenditure on charitable activities**
**Governance costs**
**13**
**Net income before non-operating items**
**Net income before unrealised gains on**
**investment properties**
**Valuations gains / (losses) :**
Investment properties
17
Financial assets
**Total valuation gains (losses)**
**Net assets contributed through BCF merger**
**1**
**Net movement in funds before taxation**
Taxation
14
**Net movement in funds after taxation**
Funds brought forward at 1stJanuary
25
Exchange difference
**Funds carried forward at 31st December**
**25**|2025
2024
2025
2024
€
€
£
(0.8726)
£
(0.8292)
3 032 373
1 580 502
2 646 049
1 310 552
(994 764)
(589 318)
(868 031)
(488 662)|
|---|---|
||**2 037 609**
**991 184**
**1 778 018**
**821 890**|
||336 649
716 408
293 760
594 046
(275 939)
(222 239)
(240 785)
(184 281)|
||**60 710**
**494 169**
**52 975**
**409 765**|
||(103 073)
(103 073)
(89 941)
(85 468)
(526 720)
(164 938)
(459 616)
(136 767)|
||**(629 793)**
**(268 011)**
**(549 557)**
**(222 235)**|
||**(683 115)**
**(685 061)**
**(596 086)**
**(568 053)**|
||**785 411**
**532 281**
**685 350**
**441 367**|
||**785 411**
**532 281**
**685 350**
**441 367**|
||1 237 581
(14 102 192)
1 079 913
(11 693 538)
585 290
97 385
510 724
80 752|
||**1 822 871**
**(14 004 807)**
**1 590 637**
**(11 612 786)**|
||**2 954 887**
**..**
**2 450 192**
**..**|
||**5 563 169**
**(13 472 526)**
**4 726 179**
**(11 252 171)**|
||(12 218)
(77 960)
(10 661)
(64 644)|
||**5 550 951**
**(13 550 486)**
**4 715 518**
**(11 316 815)**|
||45 395 116
58 945 602
37 641 631
51 229 622
..
..
2 098 389
(2 271 176)|
||**50 946 067**
**45 395 116**
**44 455 538**
**37 641 631**|
The footnotes form an integral part of the financial reporting.
22
HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2025
||Consolidated Balance sheet|Consolidated Balance sheet|Consolidated Balance sheet||||
|---|---|---|---|---|---|---|
||As at|31stDecember|||||
||Notes|2025|2024|2025|2024||
|||€|€|£|£||
|**Fixed assets**|||||||
|Intangible fixed assets_:_|15|..|..|..||..|
|Tangible fixed assets|16|2 204 979|2 064 171|1 924 065|1 711|608|
|Investment properties|17|42 300 000|39 700 000|36 910 980|32 919|239|
|Financial assets|18|15 295 329|11 646 812|13 346 703|9 657|538|
|||**59 800 308**|**53 410 983**|**52 181 748**|**44 288**|**385**|
|**Current assets**|||||||
|Debtors|19|1 334 886|844 029|1 164 821|699|871|
|Short term investments||..|..|..||..|
|Cash at bank and in hand||120 134|648 514|104 829|537|748|
|Sinking fund|20|734 888|241 882|641 263|200|569|
|||**2 189 908**|**1 734 425**|**1 910 913**|**1 438**|**188**|
|**Current liabilities**|||||||
|Creditors|21|2 110 303|2 115 670|1 841 450|1 754|313|
|Loans (excluding accrued interest)|22|525 162|576 483|458 256|478|020|
|Taxation|14|12 218|77 960|10 661|64|644|
|||**2 647 683**|**2 770 113**|**2 310 367**|**2 296**|**977**|
|**Net current (liabilities) / assets**||**(457 775)**|**(1 035 688)**|**(399 454)**|**(858**|**789)**|
|**Total assets less net current liabilities**||**59 342 533**|**52 375 295**|**51 782 294**|**43 429**|**596**|
|**Long-term liabilities**|||||||
|Loans|22|8 082 736|6 607 899|7 052 995|5 479|270|
|Provisions|23|..|..|..||..|
|Investment grant|24|313 730|372 280|273 761|308|695|
|Creditors|21|..|..|..||..|
|||**8 396 466**|**6 980 179**|**7 326 756**|**5 787**|**965**|
|**Total net assets**||**50 946 067**|**45 395 116**|**44 455 538**|**37 641**|**631**|
|**Unrestricted funds**|||||||
|Revaluation reserve|25|16 555 721|14 732 849|14 446 522|12 216|478|
|Special and other reserves|25|34 390 346|30 662 267|30 009 016|25 425|153|
|**Total unrestricted funds**||**50 946 067**|**45 395 116**|**44 455 538**|**37 641**|**631**|
||||Signed on 1stJune|2026|||
|||Christopher Wicker||Iain Hutton|||
|||_Chairman_||_Director General_|||
The footnotes form an integral part of the financial reporting.
**Company number: 00878934**
23
HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2025
## Consolidated Statement of cash flow For the years ended 31[st] December
|Notes
**Cash flow from operating activities**
Net incoming resources for year
Depreciation
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Increase / (decrease) in investment
grant
Cash generated by operating activities
Taxation paid
**Investing activities**
Net acquisition of fixed assets
16
Net acquisition of financial asset
Renovation of investment properties
17
Proceeds from disposal of fixed assets
Cash applied to investing activities
**Net cash (outflow) / inflow before**
**financing**
**Financing activities**
New long-term loans
22
Repayment of long-term loans
22
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
20
Short term investments
Current liabilities – short term bank
loans
**Net closing cash**|2025
2024
2025
2024
€
€
£
£
3 728 080
454 321
3 253 123
376 724
104 542
104 682
91 223
86 802
(490 857)
35 602
(428 321)
29 522
(5 367)
1 346 130
(4 684)
1 116 211
(58 550)
(58 550)
(51 091)
(48 550)|
|---|---|
||3 277 848
1 882 185
2 860 250
1 560 709|
||(65 742)
77 568
(57 366)
64 319|
||(245 363)
(147 479)
(214 104)
(122 290)
(3 063 219)
(642 315)
(2 672 965)
(532 608)
(1 362 419)
(8 712 913)
(1 188 847)
(7 224 747)
..
..
..
..|
||(4 671 001)
(9 502 707)
(4 075 916)
(7 879 645)|
||**(1 458 895)**
**(7 542 954)**
**(1 273 032)**
**(6 254 617)**|
||2 000 000
6 500 000
1 745 200
5 389 800
(576 483)
(351 960)
(503 039)
(291 845)|
||1 423 517
6 148 040
1 242 161
5 097 955|
||**(35 378)**
**(1 394 914)**
**(30 871)**
**(1 156 662)**
890 396
2 285 310
776 960
1 894 979|
||**855 018**
**890 396**
**746 089**
**738 317**|
||120 134
648 514
104 826
537 748
734 888
241 882
641 263
200 569
..
..
..
..
..
..
..
..|
||**855 022**
**890 396**
**746 089**
**738 317**|
* The net opening cash expressed in £ is restated at the 2025 conversion rate
The footnotes form an integral part of the financial reporting.
24
HERTFORD BRITISH CHARITABLE FUND Financial statements Year ended 31[st] December 2025
||Parent company Balance|Parent company Balance|Parent company Balance|sheet|||||||
|---|---|---|---|---|---|---|---|---|---|---|
||As at 31stDecember||||||||||
||Notes|2025(1)||2024(2)|||2025||2024||
|||€||€|||£||£||
|**Fixed assets**|||||||||||
|Intangible fixed assets_:_|15||..|||..||..||..|
|Tangible fixed assets|16|2 204|979|2|064|171|1 924|065|1 711|608|
|Investment properties|17|42 300|000|39|700|000|36 910|980|32 919|239|
|Financial assets|18|15 295|329|11|646|812|13 346|703|9 657|538|
|||**59 800**|**308**|**53**|**410**|**983**|**52 181**|**748**|**44 288**|**385**|
|**Current assets**|||||||||||
|Debtors|19|1 380|870||844|029|1 204|947|699|871|
|Short term investments|||..|||..||..||..|
|Cash at bank and in hand|20|75|746||648|514|66|096|537|748|
|Sinking fund|20|734|888||241|882|641|263|200|569|
|||**2 191**|**504**|**1**|**734**|**425**|**1 912**|**306**|**1 438**|**188**|
|**Current liabilities**|||||||||||
|Creditors|21|2 128|536|2|115|670|1 857|361|1 754|313|
|Loans (excluding accrued interest)|22|525|162||576|483|458|256|478|020|
|Taxation|14|12|218||77|960|10|661|64|644|
|||**2 665**|**916**|**2**|**770**|**113**|**2 326**|**278**|**2 296**|**977**|
|**Net current (liabilities) / assets**||**(474**|**412)**|**(1**|**035**|**688)**|**(413**|**972)**|**(858**|**789)**|
|**Total assets less net current liabilities**||**59 325**|**896**|**52**|**375**|**295**|**51 767**|**776**|**43 429**|**596**|
|**Long-term liabilities**|||||||||||
|Loans|22|8 082|736|6|607|899|7 052|995|5 479|270|
|Provisions|23||..|||..||..||..|
|Investment grant|24|313|730||372|280|273|761|308|695|
|Creditors|21||..|||..||..||..|
|||**8 396**|**466**|**6**|**980**|**179**|**7 326**|**756**|**5 787**|**965**|
|**Total net assets**||**50 929**|**430**|**45**|**395**|**116**|**44 441**|**020**|**37 641**|**631**|
|**Unrestricted funds**|||||||||||
|Revaluation reserve|25|16 555|721|14|732|849|14 446|522|12 216|478|
|Special and other reserves|25|34 373|709|30|662|267|29 994|498|25 425|153|
|**Total unrestricted funds**||**50 929**|**430**|**45**|**395**|**116**|**44 441**|**020**|**37 641**|**631**|
(1) Comprises HBCF and its linked charity BCF Endowment
(2) Comprises only HBCF since the merger with BCF, Paris took place on 1[st] January 2025
Christopher Wicker _Chairman_
**----- Start of picture text -----**
Iain Hutton
Director General
**----- End of picture text -----**
The footnotes form an integral part of the financial reporting.
**Company number: 00878934**
25
## HERTFORD BRITISH CHARITABLE FUND
(previously the Hertford British Hospital Corporation, Paris and including the British Charitable Fund, Paris)
Notes to the financial statements for the year ended 31[st] December 2025
## **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 financial support to the British Charitable Fund in France (a French charitable organisation which previously acted as an agent in France for the British Charitable Fund, Paris, a UK registered charity that merged into HBCF on 1[st] January 2025) 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.
As mentioned above, on 1[st] January 2025, the Company merged with the British Charitable Fund, Paris, a charitable trust registered in England. That merger resulted in the creation of a linked charity, BCF Endowment, which holds the British Charitable Fund, Paris investments that were considered to be a permanent endowment until a Charity Commission decision on 12[th] June 2025 which confirmed the Trustees' resolution under s.282 of the Charities Act 2011 which meant that the Trustee can spend the capital subject to the resolution as if it were income. HBCF is the sole trustee of BCF Endowment. The impact on the 2025 financial statements is to show the assets (investments and cash at bank) of BCF-E on the combined balance sheet and to include in the net movement of funds for the year a contribution arising from the merger at 1[st] January 2025 of
€2 954 887 (£2 450 192). In addition, the investment income and costs for the year to 31[st] December 2025 are included in the relevant captions of the statement of financial activities.
As a consequence of the merger with the British Charitable Fund, Paris, the agency agreement that existed between the British Charitable Fund, Paris and the British Charitable Fund in France (a French charitable association) was terminated and HBCF became the sole source of financing for the British Charitable Fund in France. HBCF also provided office facilities and administrative staff to the British Charitable Fund in France. Accordingly, and as was the case when British Charitable Fund, Paris prepared its financial statements, the financial statements of HBCF for the year ended 31[st] December 2025 are consolidated and include those of British Charitable Fund in France. The comparative data for 2024 is that of HBCF as previously reported.
On 13 November 2025, the Charity Commission also agreed the merger of the Hertford British Hospital, a charitable trust, into HBCF. This has no impact on the accounts of the Charity as HBH, whose trustees were the Directors of HBCF, has always been reported as an integral part of HBCF.
26
xGhgPiVEjeJcNLP4.docx
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **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. Consideration has been given to the Statement of Recommended Practice–Charities (FRS 102) as per October 2025 and applicable to accounting periods beginning on or after 1[st] January 2026 but early adoption was not considered appropriate.
The principal accounting policies adopted in the preparation of the financial statements are set out below.
Since 31[st] December 2023, the Statement of Financial activities is presented in a way that 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 2025 presentation follows the same principles as those used in 2024 and 2023.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. The Charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS102 "The Financial Reporting Standard applicable in the UK and Ireland": - the requirements of section 3 Financial Statement Presentation paragraph 3.17(d); - the requirements of section 33 Related Party Disclosures paragraph 33.7; - the requirements of section 11 Basic Financial Instruments paragraph 11.41.
Unless otherwise stated in the individual footnotes below, the detailed disclosures relate the Company (ie the parent of the consolidated whole), including its linked charity, BCF Endowment. Where the footnote includes amounts pertaining to BCF in France or BCF France, this is specifically disclosed.
## **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 2025 and the year then ended: € 1 = £ 0.8726
- At 31[st] December 2024 and the year then ended: € 1 = £ 0.8292
## **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.
27
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **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 Directors 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 when the Directors obtained independent valuations of both investment properties and on the hospital premises. At 31[st] December 2025, the professional surveyors were asked to value one investment asset and to consider whether there would be any material change in the 2024 valuations of the remaining assets.
28
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **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 had already claimed his pension benefits when he joined the Company and, accordingly, when that individual leaves, no lump sum will be due. A second employee was recruited in June 2024 but, given her age and expected length of service, and consistently with 2024, no provision has been recorded at 31[st] December 2025.
29
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **2.17 Consolidation**
As is explained in note 1 above, the 2025 accounts comprise the consolidated accounts of:
- The parent entity, HBCF (including the linked charity BCF Endowment)
- BFC in France (a French association registered under the law of 1901)
- BCF France (a “fonds de dotation” created in France in 2025)
Inter-entity transactions (essentially the payment of grants from HBCF to BCF in France) are eliminated on consolidation.
## **3 Significant events in the current and prior year**
## **3.1 Merger with the British Charitable Fund, Paris**
As explained in note 1 above, on 1[st] January 2025, the Company merged with the British Charitable Fund, Paris and, in November 2025, the Hertford British Hospital, a charitable trust, was absorbed into HBCF.
## **3.2 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.
In March 2026, prior to the approval of these financial statements, the Directors were informed that the Fondation Cognacq-Jay did not intend to leave the premises unless and until its building project was completed. The work on that project has not begun and, to date, there is no known date for the return of the premises. Discussions are in progress with the Fondation Cognacq-Jay to determine how to manage the uncertainty which their decision has caused but, at the time of drafting of these financial statements, the Directors consider that this situation does not have a material impact on the financial statements at 31[st] December 2025.
30
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **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 completed in February 2025, date from which the premises have been 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 2024, the work carried out to date was accounted for as “fixed assets in progress” and was not amortized.
At 31[st] December 2025, given that the building was delivered on 17[th] February 2025, the fixed assets in progress have been analysed by nature and reclassified accordingly. An amortization charge, based on the Company’s usual policy (see note 2.10) was recorded prorata temporis.
## **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 had been drawn down, totalling €5 500 000 (£4 560 600) and were 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 2025, a further amount of €2 000 000 (£1 745 200) was drawn down, bringing the total amount borrowed under the terms described above to €7 000 000 (£6 108 200).
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
31
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **4 Breakdown by entity**
The financial statements for 2025 are consolidated and include all the entities listed at note 2.17. All the cash flows within the Statement of Cashflows for the year ended 31[st] December 2025 relate to the unrestricted funds as presented below.
## **4.1 Statement of financial activity for the year ended 31[st] December 2025 – Fund analysis**
|Income from property investments
Cost of property investments
Income from financial assets
Interest and related charges
Depreciation charge on hospital
Charitable giving (grants paid)
Governance costs and other costs
Investment properties
Financial assets
Net assets contributed through BCF merger
Taxation
Net movement in funds after taxation
Funds brought forward at 1stJanuary
**Unrestricted Funds carried forward at 31st December**|HBCF, BCF-E
BCF in France &
BCF France
Unrestricted funds
€
€
3 023 373
(994 764)
336 649
(275 939)
(103 073)
(526 720)
(666 478)
(16 637)
1 237 581
585 290
2 954 887
(12 218)|
|---|---|
||5 558 588
(16 637)
45 404 116
..|
||**50 962 704**
**(16 637)**|
## **4.2**
## **Statement of financial position at 31[st] December 2025 – Fund analysis**
||HBCF, BCF-E|HBCF, BCF-E|BCF in France &|
|---|---|---|---|
||||BCF France|
||Unrestricted funds|||
||€||€|
|Tangible fixed assets|2|204 979||
|Investment properties|42|300 000||
|Financial assets|15|295 329||
|Debtors|1|288 902|45 984|
|Cash at bank and in hand||164 522|(44 388)|
|Sinking fund||734 888||
|Creditors|(2|092 070)|(18 233)|
|Loans (excluding accrued interest)|(8|607 898)||
|Taxation||(12 218)||
|Investments grants|(313 730)|||
|**Total net assets**|**50**|**962 704**|**(16 637)**|
|**Total unrestricted funds**|**50**|**962 704**|**(16 637)**|
32
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **5 Post balance sheet events**
As of the date of approval of these financial statements by the Trustees, and apart from the matter described in note 3.2 pertaining to the hospital premises and the date of their return, there were no events that had occurred after 31[st] December 2025, and which would either require an adjustment to those financial statements or disclosure therein.
## **6 Income 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**|2025
2024
2025
2024
€
€
£
£
2 250 888
1 047 865
1 964 125
868 890
722 766
474 087
630 686
393 112|
|---|---|
||2 973 654
1 521 952
2 594 811
1 262 002|
||..
..
..
..
169
..
147
..
58 550
58 550
51 091
48 550|
||**3 032 373**
**1 580 502**
**2 646 049**
**1 310 552**|
## **7 Income from health services**
HBCF no longer provides health services. The last year in which such services were reported was 2021.
## **8 Expenditure 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**|2025
2024
2025
2024
€
€
£
£
282 553
126 940
246 556
105 259
440 213
347 147
384 130
287 854
19 680
104 653
17 173
86 778
252 318
26 867
220 172
22 278
..
(16 289)
..
(13 507)|
|---|---|
||**994 764**
**589 318**
**868 031**
**488 662**|
||261 059
222 229
227 800
184 272
1 605
10
1 401
8|
||**262 664**
**222 239**
**229 201**
**184 280**|
||**1 257 428**
**811 557**
**1 097 232**
**672 942**|
33
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **9 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**|2025
2024
2025
2024
€
€
£
£|
|---|---|
||103 073
103 073
89 941
85 468
..
..
..
..|
||**103 073**
**103 073**
**89 941**
**85 468**|
## **10 Charitable activities**
The direct provision of health services ceased in 2021 and, from then until the end of 2024, 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 and reconfirmed in a comfort letter issued on 26[th] February 2026 as reaching €1.68 million per annum.
- making monthly grants to BCF in France which amounted to €112 000 / £92 870 in 2024
- making grants to charities based in France and the UK whose charitable objects are aligned with those of the Company. These grants amounted to €52 938 (£43 896) in 2024.
From 1[st] January 2025, when the merger with BCF in France occurred, the Group (HBCF and BCF in France, taken together) has continued to
- make freely available the hospital building under the terms described above
- make grants to individual beneficiaries, through the BCF in France, amounting to €445 354 / £388 616 in 2025.
- make grants to charities based in France and the UK whose charitable objects are aligned with those of the Company. These grants amounted to €81 366 (£70 999) net of governance costs in 2025.
## **11 Staff costs**
|Salary costs
Social security costs
Health services
Administration|2025
2024
2025
2024
€
€
£
£
179 567
156 731
156 690
129 961
76 492
66 646
66 747
55 263|
|---|---|
||**256 059**
**223 377**
**223 437**
**185 224**|
||..
..
..
..
256 059
223 377
223 437
185 224|
||**256 059**
**223 377**
**223 437**
**185 224**|
The Directors are not remunerated for their services, but some direct expenses incurred in the performance of their duties are reimbursed.
34
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
The average number of employees for the year was as follows:
|2025
**Total**
Health
Administrative staff
2
..
**Total**
**2**
**..**
oluments of employees:
Above £70 000 (€80 000)
Between £62 000 and £72 000 (€70 000 and €80 000)
Below £62 000 (€70 000)
**Total**|2025|2024|
|---|---|---|
||**Total**
Health
2
..|Admin.
**Total**
Health
Admin.
2
2
..
2|
||**2**
**..**|**2**
**2**
**..**
**2**|
|||2025
2024
1
1
..
..
1
1
**2**
**2**|
Emoluments of employees:
The total gross remuneration of the three highest paid employees was €174 517 (£152 284) for the year ended 31[st] December 2025 (€149 597 / £124 045 in 2024).
Employee salaries are set in accordance with the collective bargaining agreement for the sector: the “Convention Collective National” dated 31[st] October 1951.
## **12 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.
|**Premiums**
**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|2025
2024
2025
2024
€
€
£
£
**860**
**860**
**750**
**713**|
|---|---|
||2025
2024
2025
2024
€
€
£
£
256 059
223 377
223 437
185 224
..
..
..
22 295
20 776
19 455
17 227
243 508
231 124
212 484
191 648
179 107
181 927
156 289
150 854
1 469
1 609
1 282
1 334
..
..
..
..
(19 323)
26 248
(16 861)
21 765|
||**683 115**
**685 061**
**596 086**
**568 053**|
## **13 Governance costs**
These costs can be analysed as follows:
35
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **14 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|2025
2024
2025
2024
€
€
£
£
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..|
|---|---|---|
||**Total taxable rental income**
Income on capitalization contracts*
Other financial income|**..**
**..**
**..**
**..**
18 410
397 971
16 065
329 998
78 020
26 209
68 080
21 732|
||**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 2025
Loss offset against
income
At 31st December 2025|**96 430**
**424 180**
**84 145**
**351 730**|
|||**96 430**
**424 180**
**84 145**
**351 730**|
|||**..**
**..**|
|||**96 430**
**424 180**
**84 145**
**351 730**|
|||**12 218**
**77 960**
**10 661**
**64 644**|
||||
|||**..**
**..**
**..**|
|||**..**
**..**
**..**|
|||**..**
**..**
**..**|
## **15 Intangible assets**
Intangible assets comprise establishment costs and computer software licenses and are as follows:
|Cost
Aggregate depreciation|2025
2024
2025
2024
€
€
£
£
9 290
9 290
8 106
7 703
(9 290)
(9 290)
(8 106)
(7 703)|
|---|---|
||**..**
**..**
**..**
**..**|
36
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **16 Tangible assets**
Tangible assets are as follows:
|**Summary (in € and £)**
**Cost or valuation**
At 1stJanuary 2025
Additions
Disposals
Exchange difference
At 31stDecember 2025
**Aggregate depreciation**
At 1st January 2025
Charge for the year
Disposals
Exchange difference
At 31stDecember 2025
**Net book value**
At 1stJanuary 2025
At 31stDecember 2025|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)
€
€
€
£
£
£
10 074 244
10 064 941
9 303
8 353 565
8 345 848
7 717
245 363
245 363
..
214 104
214 104
..
..
..
..
..
..
..
..
..
..
437 221
436 820
401|
|---|---|
||10 319 607
10 310 304
9 303
9 004 890
8 996 772
8 118|
||8 010 086
8 003 124
6 962
6 641 960
6 636 181
5 779
104 542
103 073
1 469
91 224
89 942
1 282
..
..
..
..
..
..
..
..
..
347 641
347 345
296|
||8 114 628
8 106 197
8 431
7 080 825
7 073 468
7 357|
||2 064 158
2 061 817
2 341
1 711 605
1 709 677
1 938|
||2 204 979
2 204 107
872
1 924 065
1 923 304
761|
The detailed analysis of the tangible fixed assets is as follows, it being noted that Health service assets are those related to the hospital building which is made available to the Fondation Cognacq-Jay:
|**Health service (in €)**
**Cost**
At 1stJanuary 2025
Additions
Disposals
At 31stDecember 2025
**Aggregate depreciation**
At 1st January 2025
Charge for the year
Disposals
At 31stDecember 2025
**Net book value**
At 1stJanuary 2025
At 31stDecember 2025|Total
Buildings
Hospital
1990
Buildings
Hospital
1982
Buildings
Hospital
1974
Renovation
Hospital
€
€
€
€
€
10 064 941
3 046 185
5 265 953
1 593 324
159 479
245 363
..
..
..
246 363
..
..
..
..
..|
|---|---|
||10 310 304
3 046 185
5 265 953
1 593 324
405 842|
||8 003 124
2 236 113
4 173 687
1 593 324
..
103 073
25 237
77 836
..
..
..
..
..
..
..|
||8 106 197
2 261 350
4 251 523
1 593 324
..|
||2 061 817
810 072
1 092 266
..
159 479|
||2 204 107
784 835
1 104 430
..
406 842|
37
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
|**Health service (in £)**
**Cost**
At 1stJanuary 2025
Additions
Disposals
Exchange difference
At 31stDecember 2025
**Aggregate depreciation**
At 1st January 2025
Charge for the year
Disposals
Exchange difference
At 31stDecember 2025
**Net book value**
At 1stJanuary 2025
At 31stDecember 2025
**Other fixed assets -**
**Admin (in € and £)**
**Cost**
At 1stJanuary 2025
Additions
Disposals
Exchange differences
At 31stDecember 2025
**Aggregate depreciation**
At 1stJanuary 2025
Charge for the year
Disposals & reclassification
Exchange differences
At 31stDecember 2025
**Net book value**
At 1stJanuary 2025
At 31stDecember 2025||Total
Buildings
Hospital
1990
Buildings
Hospital
1982
Buildings
Hospital
1974
Renovation
Hospital
£
£
£
£
£
8 345 848
2 525 896
4 366 528
1 321 184
132 240
214 104
..
..
..
214 104
..
..
..
..
..
436 820
132 205
228 543
69 151
6 921
8 996 772
2 658 101
4 595 071
1 390 335
353 265
6 636 181
1 854 185
3 460 812
1 321 184
..
89 942
22 022
67 920
..
..
..
..
..
..
..
347 345
97 047
181 147
69 151
..
7 073 468
1 973 254
3 709 879
1 390 335
..
1 709 667
671 711
905 716
..
132 240
1 923 304
684 847
885 192
..
353 265
Total
Furniture
Computer
equipment
Total
Furniture
Computer
equipment
€
€
€
£
£
£
9 303
2 370
6 933
7 717
1 967
5 750
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
401
101
300|
|---|---|---|
||||
||||
||||
||||
||||
|||9 303
2 370
6 933
8 118
2 068
6 050|
|||6 962
1 510
5 452
5 779
1 254
4 525
1 469
439
1 030
1 282
383
899
..
..
..
..
..
..
..
..
..
296
64
232|
|||8 431
1 949
6 482
7 357
1 701
5 656|
|||2 341
860
1 481
1 938
713
1 225|
|||872
421
451
761
367
394|
38
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **17 Investment properties**
|**Historical cost**
At 1stJanuary 2025
Additions
Disposals
Exchange difference
At 31stDecember 2025
**Market value**
At 1stJanuary 2025
Fixed assets – increase
Disposals
Revaluation of properties
Exchange difference
**At 31st December 2025**|Total
Total
€
£
26 059 833
21 608 814
1 362 419
1 188 847
..
..
..
1 130 996|
|---|---|
||27 422 252
23 928 657|
||**39 700 000**
**32 919 239**
1 362 419
1 188 847
..
..
1 237 581
1 079 913
..
1 722 981|
||**42 300 000**
**36 910 980**|
Investment properties are all located in Levallois-Perret in France and, at 31[st] December 2025, 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.
## **17.1 Valuation of investment properties**
The independent valuation of the original hospital (the “Chateau”) was carried out in early 2026 by Savills (valued as at 31[st] December 2025). In addition, Savills issued a letter of comfort dated 26 February 2026 stating that the valuation of Wallace Gardens (last valued at 31[st] December 2024) could remain unchanged.
## **17.2 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 legal title to the land and buildings continue to be vested in the Secretary of State and that their management and administration is undertaken by the Directors of the Company who are also Trustees of the Original Charity.
On 13th November 2025, the Charity Commission issued Scheme 1067/2526 which confirmed that legal title to the properties will be vested in the Secretary of State as holding trustee for HBCF and that the Trustees of HBCF, being the persons having the general control and management of the administration of HBCF, shall be the persons entitled to exercise all rights and discharge all obligations arising in relation to the properties save as required by law.
39
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **18 Financial assets**
Financial assets are as follows:
|**Summary (in € and £)**
**Cost or valuation**
At 1stJanuary 2025
~~A~~cquisition of financial assets
Revaluation of financial asset
Exchange difference
At 31stDecember 2025
**Aggregate depreciation**
At 1st January 2025
Charge for the year
Retirements
Exchange difference
At 31stDecember 2025
**Net book value**
At 1stJanuary 2025
At 31stDecember 2025
**Market Value**|Total
Total
€
£
11 673 057
9 679 299
3 043 907
2 656 112
585 290
510 724
..
506 611|
|---|---|
||15 302 254
13 352 746|
||26 243
21 761
6 925
6 043
(26 243)
(21 761)
..
..|
||6 925
6 043|
||11 646 814
9 657 538|
||**15 295 329**
**13 346 703**|
||**15 295 329**
**13 346 703**|
## **19 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)
**Parent company only ***|2025
2024
2025
2024
€
€
£
£
1 095 996
276 300
956 366
229 109
..
..
..
..
118 205
225 102
103 145
186 656
120 685
279 802
105 310
232 012
..
62 825
..
52 095|
|---|---|
||**1 334 886**
**844 029**
**1 164 821**
**699 871**|
||**1 380 870**
**844 029**
**1 209 947**
**699 871**|
The difference between the consolidated balance and the parent company balance sheet in 2025 is explained by the amounts held in the accounts of BCF France.
40
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **20 Cash at hand and Sinking fund**
A sinking fund has been set up to meet unforeseen expenses. As of 31[st] December 2025, this fund has a balance of €734 888/£641 263(2024 €241 882/£200 569). The amount is invested in a passbook savings account and earned interest of €9 888 / £8 628 for the year ended 31[st] December 2025 (2024 €1 881 / £1 560).
This "sinking fund" was initially planned to face future cost of refurbishment but there is in fact no constraint on its use.
The difference between the “cash at hand” shown in the consolidated balance and the parent company balance sheet in 2025 is explained by the cash held in the accounts of BCF in France.
## **21 Current liabilities**
Consolidated 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|2025
2024
2025
2024
€
€
£
£
62 955
54 207
54 935
44 948
24 274
737 928
21 181
611 890
..
83 472
..
69 215
622 670
398 676
543 342
330 582
103 204
68 229
90 056
56 575
..
..
..
..
1 240 281
725 000
1 082 269
601 170
79
79
69
66
46 674
48 079
40 728
39 867
10 166
..
8 870
..|
|---|---|
||**2 110 303**
**2 115 670**
**1 841 450**
**1 754 313**|
The difference between the “creditors” shown in 2025 in the consolidated balance (€2 110 303) and the parent company balance sheet (€2 128 536) is explained by the amounts shown in the accounts of BCF in France.
## **22 Loans**
## **22.1 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**|2025
2024
2025
2024
€
€
£
£
..
..
..
..
525 162
576 483
458 256
478 020|
|---|---|
||525 162
576 483
458 256
478 020
8 082 736
6 607 899
7 052 995
5 479 270|
||**8 607 898**
**7 184 382**
**7 511 251**
**5 957 290**|
41
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **22.2 Property loans in detail**
|At 1stJanuary 2025
Rothschild Martin
Maurel - Lombard loan
Société Générale
(previously Crédit du
Nord) « PGE » loan
Société Générale
Total
At 31stDecember 2025
Rothschild Martin
Maurel - Lombard loan
Société Générale
(previously Crédit du
Nord) « PGE » loan
Société Générale
Total|Total
Long-term
Short-term
Total
Long-term
Short-term
Note
€
€
€
£
£
£
(a)
5 000 000
5 000 000
..
4 146 000
4 146 000
..
(b)
336 168
..
336 168
278 751
..
278 751
(c)
1 848 214
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|
||(a)
7 000 000
7 000 000
..
6 108 200
6 108 200
..
(b)
134 850
..
134 850
117 670
..
117 670
(c)
1 473 048
1 082 736
390 312
1 285 382
944 796
340 586|
||8 607 898
8 082 736
525 162
7 511 252
7 052 996
458 256|
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. 25|||
||||31stDec. 25||||
|||€|€|€|||
|Rothschild Martin Maurel –|(a)|||||Euribor 1 month|
|Lombard loan||8 000 000|7 000 000|7 000 000|Revolving|plus 70 basis points|
|Société Générale (previously|(b)|999 000|999 000|134 851|6 years from|0.25% initial rate|
|Crédit du Nord) « PGE » loan|||||August 2020||
|Société Générale – fixed|(c)|2 000 000|2 000 000|1 473 048|5 years from|3.91% fixed rate|
|term loan|||||July 2024||
## **23 Provisions**
There are no provisions at the year-end (and none at 31[st] December 2024).
42
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **24 Investment grants**
The investment grants received for the fitting of a smoke extraction system in the hospital building and movements thereon are as follows:
|ovements thereon are as follows:||
|---|---|
|Initial investment grant
Additional grant
**Total in €**
**Total in £**
Exchange difference
**Total in £**|31 Dec. 2024
Increases
Reductions
31 Dec. 2025
€
€
€
€
270 229
..
42 500
227 729
102 051
..
16 050
86 001|
||**372 280**
**..**
**58 550**
**313 730**|
||**312 616**
**..**
**51 091**
**261 525**
**(3 921)**
**..**
**..**
**12 236**|
||**308 695**
**..**
**51 091**
**273 761**|
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.
43
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **25 Unrestricted funds**
Details of consolidated unrestricted funds are as follows at 31[st] December:
|**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 consolidated unrestricted funds**|2025
2024
2025
2024
€
€
£
£
198 184
198 184
172 935
164 334
472 195
472 195
412 037
391 544|
|---|---|
||670 379
670 379
584 972
555 878|
||15 885 342
14 062 470
13 861 550
11 660 600|
||**16 555 721**
**14 732 849**
**14 446 522**
**12 216 478**|
||173 130
173 130
151 073
143 559
549 156
549 156
479 194
455 360|
||**722 286**
**722 286**
**630 267**
**598 919**|
||1 000 000
1 000 000
872 600
829 200
1 102 352
1 102 352
961 912
914 070
1 310 983
1 310 983
1 143 964
1 087 069|
||**3 413 335**
**3 413 335**
**2 978 476**
**2 830 339**|
||30 254 725
26 526 646
26 400 273
21 995 895|
||**34 390 346**
**30 662 267**
**30 009 016**
**25 425 153**|
||**50 946 067**
**45 395 116**
**44 455 538**
**37 641 631**|
As described in note 16.1, the investment properties were independently valued at 31[st] December 2025, and this gave rise to a €1 822 872 (£ 2 230 044) increase in the revaluation reserve that was recorded at 31[st] December 2025.
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.
At 31[st] December 2025, the difference between the Total consolidated unrestricted funds shown in the consolidated balance (€50 946 067) and the parent company balance sheet (€50 929 430) is explained by the total unrestricted assets held in the accounts of BCF in France and amounting to €16 637.
44
HERTFORD BRITISH CHARITABLE FUND Notes to the financial statements Year ended 31[st] December 2025
## **26 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:
||2025|2024||
|---|---|---|---|
||€|€||
|**Net profit (loss) for the year per French accounts**|**(18 201)**|**137 159**||
|**Reconciling items**|||**Impacted** **items**|
|Revaluation of investment assets|1 822 871|(14 004 807)|Unrealized gain & loss|
|Difference in depreciation charge|606 219|317 162|General funds|
|Net income through BCF merger|185 175|..||
|Net assets contributed through BCF merger|2 954 887|..||
|**Net movement in funds after taxation**|**5 550 951**|**(13 550 486)**||
|2024, the unrealized loss of €14 million was due|to the revised|valuation of the investment assets,||
|luding the Château which was at that time under renovation.||||
|e reconciliation of net equity per the French accounts and the total unrestricted funds is as follows||||
||2025|2024||
||€|€||
|**Net equity per French accounts**|**19 457 995**|**19 476 197**||
|**Reconciling items**||||
|Revaluation of assets|15 885 342|14 062 471||
|Cumulative difference in depreciation charge|12 462 664|11 856 448||
|Net assets held in BCF-E and BCF in France|3 140 066|||
|**Total unrestricted funds**|**50 946 067**|**45 395 116**||
In 2024, the unrealized loss of €14 million was due to the revised valuation of the investment assets, including the Château which was at that time under renovation.
The reconciliation of net equity per the French accounts and the total unrestricted funds is as follows:
## **27 Off balance sheet commitments**
## **27.1 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.
## **27.2 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.
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