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2025-03-31-accounts

THE VICTORY (SERVICES) ASSOCIATION (A company limited by guarantee)

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Registered Company No. 429298 Registered Charity No. 261307

THE VICTORY (SERVICES) ASSOCIATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

CONTENTS Page
Reference and administrative details 1
Chair’s statement and the strategic report 2
Trustees’ report 4-10
Independent auditors’ report 11-13
Consolidated statement of financial activities 14
Consolidated balance sheet 15
Association balance sheet 16
Consolidated cash flow statement 17
Notes to the financial statements 18 - 28

THE VICTORY (SERVICES) ASSOCIATION

REFERENCE AND ADMINISTRATIVE DETAILS

PATRON-IN-CHIEF

Her Majesty the Queen

PRESIDENT

General Sir Richard Barrons KCB CBE (retired 8[th] October 2024) Air Marshal Sir Gerry Mayhew KCB CBE (appointed 8[th] October 2024)

CHAIR

Major General J S Kerr CBE

VICE-CHAIR

Colonel P R Rossiter (retired 3rd July 2024) Mr G Roberts (appointed 3[rd] July 2024)

HONORARY TREASURER

Mr S Gunning

DIRECTORS

Mr P Brackley (retired 28[th] October 2024) Air Vice-Marshal S Chisnall CB Mrs P Clayton Mrs K Gent (appointed 28[th] October 2024) Mr S Gunning Major General C J Harvey OBE QVRM TD Mr E Hendin (appointed 24[th] March 2025) Mr R Johnson Major General J S Kerr CBE Major C Marment FCSI (retired 24th March 2025) Major General J S Mason MBE RM Mrs C Newhall-Caiger Mr G Roberts Colonel P R Rossiter (retired 3rd July 2024) Mrs J Taylor-Stagg (appointed 28[th] October 2024)

SECRETARY

Air Commodore N P Beet CBE (retired 31[st] May 2024) Colonel C Francis CBE (appointed 3[rd] June 2024)

BANKERS

NatWest plc 69 Baker Street PO Box No 2 London W1U 6AT

AUDITORS

Moore Kingston Smith 9 Appold Street London EC2A 2AP

SOLICITORS

Charles Russell Speechlys 5 Fleet Place London EC4M 7RD

REGISTERED ADDRESS

63-79 Seymour Street London W2 2HF

Bates Wells LLP 10 Queens Street Place London EC4R 1BE

1

THE VICTORY (SERVICES) ASSOCIATION

CHAIR’S STATEMENT AND THE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

I am delighted to submit my report on the financial statements for the year which ended on 31st of March 2025.

The Board of Trustees, the Directors, the Senior Management Team and the Staff, have, once again, delivered a successful year for the Victory (Services) Association. Despite the ongoing geopolitical environment, which included a General Election in the UK and similar in the US, plus the ongoing global economic uncertainty, the charity has continued to deliver against its objectives and met all of its financial targets as set out in the 2024-25 Business Plan (BP). The Club achieved this without placing greater financial burden on our members.

For the first time since COVID, the Club’s operation has resembled something akin to a ‘normal’ operating year. It has seen the Club have >87% occupancy of the available bedrooms, seen increased covers in the restaurant and had significantly more events held in the Club’s seven event spaces. Success in these areas of the business are central to the charity’s longterm future and have been delivered by the extremely professional staff in the Club. The culture they generate and the standards they maintain make the Club the amazing place it is today. The change of CEO early in the year was seamless, and the work completed by the new incumbent develops upon the strong foundations laid by his predecessor. There has been a continued focus on the staff, and they have warmed to his arrival. Given the aforementioned economic challenges, which the staff are not immune too, the Remuneration Committee, and the Board, responded with several measures to help ease the burden including an above inflation pay rise, the award of a discretionary extra week’s pay and several other measures to support them; retention has improved significantly as a result.

Our members remain the central focus of the charity. Despite the aforementioned challenging economic circumstances, the Club has maintained an attractive pricing strategy for accommodation and food and beverage services. This approach, coupled with high occupancy rates and careful cost management, enabled us to increase our cash reserves while keeping membership charges competitive. This has made the VSC an appealing option compared to other military clubs, contributing to a healthy level of new membership applications. Membership numbers have grown from 62,001 on 1[st] April 2024 to 63,339 by 31[st] March 2025, an increase of 1,338. We continue to do all that we can to maintain an affordable offer to all members and we have continued to evolve the member offer throughout the year. We have made significant capital investment in the infrastructure with a complete refurbishment of the Carisbrooke Hall, following the damage caused by a significant leak; we have upgraded the pot wash facilities in the Grill Restaurant kitchen, generating a vastly improved kitchen operation; and we have upgraded all of the bathrooms on the third and fourth floors of the Centenary Wing. These were all delivered on time and under budget. Similarly, a renewed focus on Member events also saw the delivery of an excellent D- Day 80 lunch, attended by more than 140 members, and there has been greater attendance at the annual events, such as the Trafalgar Night dinner, which, due to demand, had to be moved to the Carisbrooke Hall to accommodate all who wished to attend. The year has also seen a marked increase in Association led military reunions and members’ family focussed events such as Birthday and Anniversary lunches and dinners.

We have also introduced an additional two new family bedrooms this year to enable greater focus on the Respite and Welfare breaks, which are central to our charitable aims. We are proud to report that this has allowed us to deliver 193 Welfare and Respite breaks for serving personnel and their families whilst also delivering breaks (30 available per Service) for personnel who have been recommended by the Armed Forces for Reward and Recognition. In total 625 individuals have stayed with us for free during the year. The feedback that we receive following these stays is heartwarming, as is the number of letters that regularly arrive from our members in recognition of the Club and the quality of service and professionalism that the staff constantly deliver. Our members also demonstrate their gratitude by donating to the Staff Fund. Their generosity saw donations of £34,376 in December 2024. This amazing amount, which has been the largest ever donated, was extremely well received by the staff. The Club has again provided discounted event spaces for all sizes of charitable activities including award evenings, conferences, and small meetings. Wherever possible the Club also continues to provide free meeting rooms to assist other charities, particularly the smaller and those new to market, to help them deliver their objectives.

A combination of all the operating areas has led to an increase of income from £11,247,008 in 2023/24 to £11,861,419 in the 2024-25 financial year, a net increase of £614,411. Thanks to our members’ loyalty, the hard work of our staff, and effective operational oversight, we therefore closed the financial year on 31st March 2025 with a strong cash position of £4,245,922. The Board took the decision to invest £2M so that we can grow a contingency fund to protect the charity from such events as the 2020 Global Pandemic. This year end position, which again includes our residual and declining Coronavirus Loan, which remains untouched, sees the Charity in a strong financial position as we prepare for the new financial year. In 2025-26 we look forward to continuing to deliver our charitable activities and making further improvements to our building infrastructure, with new carpets throughout, an upgrade programme for the 67 bathrooms in the Memorial Wing and upgrading the Air Conditioning units throughout the Club. The retention and recruitment of high-quality staff will continue to be a constant feature, where there will be an increased focus in improving the welfare facilities of the staff, including a refurbished staff canteen, the introduction of a multi-faith room and improvements to the staff Housekeeping and staff changing facilities.

2

The Board of the Victory (Services) Association has every confidence that we are very much a going concern, and we look forward to another successful year in 2025-26.

Major General Seumas Kerr CBE,

Chair The Board of Trustees, submits its report together with the audited financial statements of the Association for the year ended 31st March 2025.

3

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The Trustees (who are also the Directors for the purposes of the Companies Act) present their report, incorporating the Strategic Report, for the year ended 31[st] March 2025.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Reference and Administrative Information

The Victory Services Club was founded in 1907 and is registered with the Charity Commission of England and Wales under charity number 261307. The Trustees, Secretary, principal advisors and addresses are listed on page 1.

The Victory (Services) Association, company registration number 429298, was incorporated on the 7[th] February 1947 and it controls the Victory Services Club. The Victory (Services) Association is a charitable company limited by guarantee and does not have a share capital. The Charity is governed by its Memorandum and Articles of Association and limits the liability of each member to £1. The Trustees are Directors of the company for the purposes of the Companies Act 2006.

Board of Trustees

The Board of Trustees determines the general policy of the Association. The Trustees are legally responsible for the overall management, finances and control of the Club. The recruitment and selection of new Trustees to serve on the Board and the Association’s sub-committees is first considered by the Governance and Audit Committee, prior to the submission of recommendations to the Board of Trustees and necessary approval. Potential new Trustees, and all appointees to subcommittees and senior Trustee roles, are assessed for their suitability in terms of knowledge, skills, experience and availability. New Trustees are inducted into the workings of the Charity by the Chair and Chief Executive/Club Secretary, with the latter providing a pack including the Charity Commission’s guidance for Trustees and the Club’s Business Plan. Trustees attend up to five meetings a year and all Trustees receive the minutes of each meeting.

Changes to the Board of Trustees within the year are highlighted as follows:

Mr P Brackley (retired 28[th] October 2024) Mrs K Gent (appointed 28[th] October 2024) Mr E Hendin (appointed 24[th] March 2025) Major C Marment FCSI (retired 24th March 2025) Colonel P R Rossiter (retired 3rd July 2024) Mrs J Taylor-Stagg (appointed 28[th] October 2024)

No Trustee has any financial interest in the Association, nor draws any benefits. The Association reimbursed travelling expenses of £4,068 (2024: £307) to certain Trustees for attendance at meetings.

4

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The Association operates the following sub-committees:

Committee Chaired by
Governance and Audit Committee Mr G Roberts
Investment Committee Mr E Hendin
Marketing and Communications Committee Mrs P Clayton
Membership Committee Major General J S Mason MBE RM
Remuneration Committee Major General S Kerr
Trading Committee Mr S Gunning

The day-to-day management of the Association is delegated to the Chief Executive/Club Secretary, who is supported by the Operations Director and the Finance and HR Director, who together comprise the Senior Management Team. The Chief Executive/Club Secretary attends all Trustee meetings and meetings of the Association’s Sub-committees. Relevant members of the Senior Management Team also attend meetings of sub-committees when required.

VSC (Trading) Limited

The Association holds 100% of the share capital of VSC (Trading) Limited, registered number 03532841. This company is responsible for using the Association’s facilities and resources which fall outside the charitable objectives of the Association by generating income to support the charitable objectives. All trading surpluses are donated by Gift Aid to the Association. A summary of the results of the company are shown in note 11 of the financial statements.

Investment powers and policy

Powers

In furtherance of the objects of the Association, but not otherwise, the Association shall have the power to invest monies of the Association not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions (if any) as may for the time being, be imposed or required by law. The investments of Victory (Services) Association Limited are managed by Rathbones, Blackrock and M&G.

5

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Policy

It is the policy of the Association to run the Club from trading surpluses and only to call upon investment reserves when essential for capital improvements. For the present it is the Association’s aim to achieve maximum growth while at the same time protecting the real value of investments. The Investment Committee re-invests the dividends in the fund. The value of the Association’s long-term investments should not be reduced below £1,000,000 at market value unless exceptional circumstances are approved by the Board of Trustees.

Risk management

The Board of Trustees is required to include a statement that the major risks to which the Association is exposed, as identified by the Board of Trustees, have been reviewed and that the systems in place will mitigate those risks. The Board of Trustees reviews the formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the charity faces, listing them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. The Board of Trustees fully recognises the significant importance of effective internal controls on expenditure and payment and takes every action to minimise this risk. At each Trustees’ meeting one risk is considered in detail. The Senior Management Team is responsible for day-to-day monitoring of all risks on behalf of the Board of Trustees. The principal risks the Association faces and their mitigation strategies are as follows:-

Risk Mitigation and Controls
Risk 1: Business Downturn. Supplier price increases,
competition from other Clubs/hotels, erosion of prices and
inflation affecting consumer.		 -
Due to global economic unrest and a new UK Prime
Minister, the Club aims to continue monitoring prices
for best value-for-money (VFM) contracts.
-
Unlike London Hotels that use dynamic pricing, the
VSC cannot.
-
The Club's energy bill is fixed until 2027 under a
Blend and Extend contract, allowing cost reductions
if market prices drop.
-
Gas prices are being monitored due to the Middle
East unrest.
-
SMT manage Member expectations and provide
effective enhancementswhilemaintainingvalue.
Risk 2: HSAW Failure. Impact on Members, Staff, and
Events, Investments and Cashflow. Health and Safety
breach leading to injury/adverse publicity and sanctions.		 -
HSAW (Health, Safety, and Wellbeing) remains a top
priority for the SMT.
-
All identified HSAW-related work services are being
acted upon.
-
The Club’s HR IT system effectively tracks HSAW
training compliance.
-
Following the March 2024 Business Continuity
exercise, the Club's Business Continuity Plan has
been updated.
-
The CEO, GM, and FM conduct weekly floor-by-floor
inspections to address HSAW concerns with staff
and occupants.
-
An external Health & Safety Audit conducted on 10th
September 2024 scored the Club at 93%.
Risk 3: Failure to retain and then recruit a quality, motivated
workforce which causes the Club to be unable to deliver our
three values of Value, Service and Courtesy.		 -
Monitor staff turnover, pay, benefits, and facilities.
-
Benchmark against London hospitality sector for
competitive pay.
-
Track leave, sickness, and overtime.
-
Monitor staff retention and unfilled vacancies.
-
Close engagement with managers to understand
staff morale and workload.
-
REMCOM and the Board to receive regular reports
to guide remuneration decisions.
-
HR department tasked with monitoring staff
engagement and reasons for staff departures.

6

Risk 4: Cyber-crime or inadequate IT policies leading to
reputational risk and an inability to manage the Club.		 -
IT and Disaster Recovery policies developed with
advice from third-party consultants (e.g. BCN) and
suppliers, covering systems and users across the
business.
-
Managed IT support
-
Automated patching and updates (Microsoft
Windows Security, AV, Malware)
-
3rd Generation SonicWall Firewall with DPI-SSL
-
DNS protection
-
User email security training
-
Cyber Essentials certification
-
Application patch management
-
Failover internet lines
-
Disaster Recovery consultancy completed
-
Cyber insurance in place and regularly reviewed with
broker; coverage increased.
-
Continuous cyber security awareness training
(tracked, scored, monitored)
-
Regular external and on-site IT health checks
-
Quarterly meetings with IT experts
-
Annual review with BCN Managing Director

CHARITABLE OBJECTIVES, VISION, MISSION AND ACTIVITIES

The objectives of the Charity are:

The Club’s Vision is to be the leading military members’ Club, where membership is cherished, and outstanding standards of services are the norm.

The Club’s Mission is to deliver outstanding Value, Service and Courtesy.

Public Benefit

The Board of Trustees has had due regard to the Charity Commission guidance in deciding how to implement the Charity’s objects for the benefit of the public. The work carried out by the Charity to further the charitable objectives is highlighted in the Chair’s statement.

By way of expansion on those points the Trustees and staff have been focused on our two objectives to ensure that we continue to provide a benefit to our members and the wider military ‘family’. To meet the Charity’s first objective we provide a smart, comfortable, and modern venue for esprit de corps activities. Specifically, these include informal and formal meetings, and Ships, Regimental and Squadron dinners, and conferences. The Club hosts an increasing number of military Association events due to an effective marketing programme, and a pricing model which is 25% cheaper than a commercial non-military event being held in the Club. The intent of providing an enjoyable event that is affordable, which allows individuals from all ranks to participate and be accommodated at very reasonable prices has again been maintained. In FY 2024/25 single shared facility bedrooms which are only available for members were £77.50.

Our RWB scheme, as mentioned by the Chair earlier, is a unique offer in London which provides free accommodation and all meals for a two-night stay to a family consisting of two adults and usually up to three school age children; this offer is extended to an accompanying carer if necessary. Over the last seven years we have hosted 3,008 individuals under this scheme. Our Trustees are committed to annually increasing the numbers benefitting from this offer. This is achieved by the Club’s staff frequently engaging with the leading military charities and the single Service and Defence Medical Rehabilitation staff to seek nominations. The Club also continues to offer 90 free weekend Reward and Recognition breaks to members of the serving Armed Forces who are recommended to us. Over the last seven years we have hosted 490 individuals as part of this scheme. This scheme is generously funded by the Nuffield Trust for the Forces of the Crown. With the previously noted support for other charities the Club has given discounted charges for meeting and event rooms.

7

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEE’S REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Remuneration of senior staff

The Board of Trustees, supported by the salaried Senior Management Team, comprise the key management personnel of the charity in charge of directing, controlling, running and operating the Association on a day-to-day basis. All trustees give their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in note 8 to the accounts. The pay of the Senior Management Team and all staff is reviewed biannually by the Remuneration Committee which reports to the Board of Trustees. The Remuneration Committee considers comparative data from several external sources including the Association of London Clubs, and the Institute of Hospitality.

Capital and Works Expenditure

In the reporting period the Club carried out a range of capital and maintenance projects. The Chair has highlighted the refurbishment of the Centenary Wing 3[rd] and 4[th] Floor Bathrooms. This project was completed in March 2025 at a cost of £778,000. Following this upgrade improvements were made to the Air Conditioning infrastructure on those floors costing £75,000. In August 2024 the Ground Floor kitchen was closed to allow for the installation of a new pot wash area along with pass through dishwashing equipment at a cost of £82,000. In addition, the Club created two new family bedrooms. We are grateful to our members for their patience and understanding while we carried out these disruptive but necessary works.

Plans for the Future .

The Club’s linkages to the Armed Forces community, both serving and retired, will continue to be developed through the Membership Committee, which has increased the number of invitations to garrison family days and military conferences. A programme of actions has been developed with an increased marketing budget which will see the continuing increase in membership numbers going forward. We also anticipate hosting higher numbers of the free respite breaks which the Club provides, owing to the increasing awareness of these special opportunities at the VSC.

In FY 2025-26 the Club will invest £140,000 in new carpeting replacing the existing one which has endured 12 years of wear and tear. In addition, staff changing rooms and housekeeping facilities on the first floor will be upgraded at a cost of £200,000. Further upgrades are planned to bathrooms in the Memorial Wing and our rolling Air Conditioning upgrade plan will continue.

FINANCIAL REVIEW

The Consolidated Statement of Financial Activities reveals income in the financial year of £11,881,419 (2024: £11,247,008) and expenditure of £10,909,868 (2024: £9,876,833) which after gains on investments of £15,378 (2024: £312,822) has resulted in a net surplus of £966,929 (2024: £1,682,997). As the Investments are held for the long term, the Investment Committee does not propose a change in investment strategy. The accumulated funds at the balance sheet date total £17,927,315 (2024: £16,960,386).

Fixed assets

In the opinion of the Board of Trustees the market value of the leasehold premises is significantly higher than the book value, details of which are given in the notes to the financial statements. However, because of the various covenants in the lease, it is not practicable to ascertain with any degree of precision, the market value of the leasehold premises.

The investments held by the Association have been acquired in accordance with the powers available to the Trustees.

8

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEE’S REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

Fundraising

The Association does not actively fundraise from the public although grants are sought from grant making bodies. Some members have left bequests to the Association, and have voluntarily made some donations, for which we are most grateful. We have not received any complaints in respect of fundraising activity.

Reserves policy

The VSC Reserves Policy as approved by the Trustees consists of the following elements:

The Trustees further decided to review the Reserves Policy going forward as part of the annual budgeting process, or when the Charity’s strategy is reviewed and when the risks faced by the Charity significantly change.

As at 31[st] March 2025, the Charity had general, unrestricted reserves, excluding restricted and designated reserves of £9,432,134 (2024: £8,513,408).

Investment performance

At 31[st] March 2025 investment balances were:

9

THE VICTORY (SERVICES) ASSOCIATION

TRUSTEE’S REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2025

The gain on investments was £15,378 (2024: £312,822). At the end of the financial year, the Charity’s total investments stood at £6,775,137 (2024: £4,581,654).

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing Trustees’ Report and the financial statements in accordance with applicable law and regulations .

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the charitable company and of the group and of the surplus or deficit of the charitable company for that period. In preparing these financial statements the Trustees are required to:

In so far as the trustees are aware at the time of approving our trustees’ annual report:

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements that follow have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In approving this Trustees’ Report, the Board are also approving the Strategic Report included herein in their capacity as company directors.

BY ORDER OF THE BOARD

63-79 Seymour Street London W2 2HF

Seumas Kerr

10

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE VICTORY (SERVICES) ASSOCIATION

Opinion

We have audited the financial statements of The Victory (Services) Association Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Association Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report t you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Jonathan Aikens (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 6[th] Floor, 9 Appold Street London EC2A 2AP

Date:

Moore Kingston Smith LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

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THE VICTORY (SERVICES) ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(including Income and Expenditure account)

FOR THE YEAR ENDED 31 MARCH 2025

Note
INCOME FROM:
Donations and legacies
3
Charitable activities
Membership
Catering and accommodation
Trading activities
Investments
4
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Fundraising and publicity
Charitable activities
Catering and accommodation
Membership and central allocation
TOTAL EXPENDITURE
6
Net gains on investments
10
NET INCOME /(EXPENDITURE)
5
Transfer between funds
NET MOVEMENT IN FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
357,458
1,388,095
8,199,965
1,342,650
573,251
11,861,419
1,715,766
7,416,839
1,771,502
10,904,107
15,378
972,690
-
972,690
16,842,745
17,815,435		 Restricted
Total Funds
Total Funds
Funds
2025
2024
£
£
£
-
357,458
306,166
-
1,388,095
1,313,790
-
8,199,965
7,976,937
-
1,342,650
1,306,805
-
573,251
343,310
-
11,861,419
11,247,008
-
1,715,766
1,542,128
-
7,416,839
6,787,167
5,761
1,777,263
1,547,538
5,761
10,909,868
9,876,833
-
15,378
312,822
(5,761)
966,929
1,682,997
-
-
-
(5,761)
966,929
1,682,997
117,641
16,960,386
15,277,389
111,880
17,927,315
16,960,386

All transactions are derived from continuing activities. The split between unrestricted and restricted donations and legacies for the current and previous year is shown in note 3.

All recognised gains and losses are included in the Statement of Financial Activities.

14

THE VICTORY (SERVICES) ASSOCIATION

Company Number: 429298

CONSOLIDATED BALANCE SHEET

AT 31 MARCH 2025

Note
FIXED ASSETS
Tangible assets
9
Investments
10
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS: amounts falling due
14
within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:falling due after more than 1 year
14
TOTAL NET ASSETS OR LIABILITIES
FUNDS
15
Restricted funds
Unrestricted funds:
Designated funds
General funds		 £
£
£
£
8,308,301
8,254,337
6,775,137
4,581,654
15,083,438
12,835,991
77,775
62,140
438,396
244,252
4,245,992
5,434,551
4,762,163
5,740,943
(1,818,285)
(1,216,549)
2,943,878
4,524,394
18,027,316
17,360,386
(100,000)
(400,000)
17,927,315
16,960,386
111,880
117,641
8,383,301
8,329,337
9,432,134
8,513,408
17,815,435
16,842,745
17,927,315
-
16,960,386
2025
2024		 £
£
£
£
8,308,301
8,254,337
6,775,137
4,581,654
15,083,438
12,835,991
77,775
62,140
438,396
244,252
4,245,992
5,434,551
4,762,163
5,740,943
(1,818,285)
(1,216,549)
2,943,878
4,524,394
18,027,316
17,360,386
(100,000)
(400,000)
17,927,315
16,960,386
111,880
117,641
8,383,301
8,329,337
9,432,134
8,513,408
17,815,435
16,842,745
17,927,315
-
16,960,386
2025
2024
12,835,991
4,524,394
17,360,386
16,960,386
117,641
8,329,337
8,513,408
16,842,745
16,960,386

A separate statement of financial activities and income and expenditure account are not represented for the charity itself following the exemption afforded by section 408 of the Companies Act 2006.

The consolidated surplus of the Association was £966,929 (2024: surplus of £1,682,997).

The financial statements were approved and authorised for issue by the members of the Council on 2nd July 2025 and were signed below on its behalf by:

Major General Seumas Kerr Chairman

Mr S Gunning Honorary Treasurer

15

THE VICTORY (SERVICES) ASSOCIATION

Company Number: 429298

ASSOCIATION BALANCE SHEET

AT 31 MARCH 2025

Note
FIXED ASSETS
Tangible assets
9
Investments
10
Investment in trading company
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS:amounts falling within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
Creditors falling due after more than 1 year
14
NET ASSETS
FUNDS
Restricted funds
Unrestricted funds:
Designated funds
General funds		 £
£
£
£
8,308,301
8,254,337
6,775,137
4,581,654
2
2
15,083,440
12,835,993
77,775
62,140
734,143
2,450,169
3,516,014
2,871,483
4,327,932
5,383,792
(1,519,281)
(1,013,919)
2,808,651
4,369,873
17,892,091
17,205,866
(100,000)
(400,000)
17,792,091
16,805,866
111,880
117,641
8,383,301
8,329,337
9,296,910
8,358,888
17,680,211
16,688,225
17,792,091
16,805,866
2025
2024		 £
£
£
£
8,308,301
8,254,337
6,775,137
4,581,654
2
2
15,083,440
12,835,993
77,775
62,140
734,143
2,450,169
3,516,014
2,871,483
4,327,932
5,383,792
(1,519,281)
(1,013,919)
2,808,651
4,369,873
17,892,091
17,205,866
(100,000)
(400,000)
17,792,091
16,805,866
111,880
117,641
8,383,301
8,329,337
9,296,910
8,358,888
17,680,211
16,688,225
17,792,091
16,805,866
2025
2024
12,835,993
4,369,873
17,205,866
16,805,866
117,641
8,329,337
8,358,888
16,688,225
16,805,866

The financial statements were approved and authorised for issue by the members of the Council on 2nd July 2025 and were signed below on its behalf by:

Major General Seumas Kerr Chairman

Mr S Gunning Honorary Treasurer

16

THE VICTORY (SERVICES) ASSOCIATION

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Note
Cash Flow from operating activities
21
Cash flows from investing activities
Rents receivable
Income from investments
Other interest receivable
Interest paid
Payments to acquire tangible fixed assets
Disposal of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Cash(outflows)/inflows from borrowing
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
Analysis of changes in net debt
Cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year
Total
Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than 3 months)
Cash held as part of investment portfolio
Total Cash and cash equivalents
Change in cash and cash equivalents in the
year		 £
£
1,773,732
281,874
193,675
97,702
(11,969)
(1,050,849)
5,381
(2,291,470)
233,523
(2,542,133)
(300,000)
(1,068,401)
5,462,006
4,393,605
At start of
year
Cash-flows
5,462,006
(1,068,401)
(300,000)
300,000
(400,000)
-
4,762,006
(768,401)
2025
£
3,745,992
500,000
147,613
4,393,605
2025		 £
£
1,819,506
242,626
19,508
81,176
(18,217)
(667,410)
-
(459,569)
451,885
(350,001)
(300,000)
1,169,505
4,265,045
5,462,006
Other non-cash
changes
At end of year
-
4,393,605
2024		 £
£
1,819,506
242,626
19,508
81,176
(18,217)
(667,410)
-
(459,569)
451,885
(350,001)
(300,000)
1,169,505
4,265,045
5,462,006
Other non-cash
changes
At end of year
-
4,393,605
2024
At start of
year
5,462,006		 Other non-cash
changes
-
(300,000)
1,169,505
4,265,045
5,462,006
At end of year
4,393,605
(300,000)
(400,000)		 (300,000)
300,000		 (300,000)
(100,000)
4,762,006 - 3,993,605
2024
£
4,934,551
500,000
27,455
5,462,006

17

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

(a) Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Victory (Services) Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The accounts are prepared in pounds sterling, rounded to the nearest pound.

Group financial statements have been prepared in respect of the Association and its wholly owned trading subsidiary, VSC (Trading) Limited. The subsidiary has the same accounting reference date as the Association. No separate profit and loss account is presented for The Victory (Services) Association as provided by Section 408 of the Companies Act 2006.

(b) Subscriptions

Subscription income due is recognised in the period in which it is received. Subscription fees paid in advance are treated as deferred income in Other Creditors

(c) Grants, legacies and donations

Grants, legacies and donations are recognised when when there is entitlement to the funds, the receipt to the Association is probable or confirmed and the amount quantifiable.

(d) Investment income

Investment income and interest receivable are accounted for in the period it is receivable. Realised and unrealised gains and losses are recognised in the Statement of Financial Activities are Investments are classifed under Fixed Assets in accordance with the Charities SORP.

(e) Other income

Other income is accounted for in the period in which it falls due. Income received in advance is treated as deferred income and included in creditors.

(f) Allocation of Expenditure

Expenditure is charged directly to the cost centre to which it relates. Support costs area allocated based on income generated. Governance costs consist of those costs which relate to the overall running of the Association, including meeting statutory and regulatory requirements.

(g) Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

(h) Investments

Investments are included at market value at the balance sheet date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities.

(i) Tangible fixed assets

Expenditure on fixed assets more than £1,000 is capitalised and depreciated over the asset’s expected useful life as follows:

18

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

(j) Stocks

Stocks are valued at the lower of cost or net realisable value.

(k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(m) Fund Accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds - they are available for use at the discretion of the Council in furtherance of the general charitable objectives.

Designated funds are amounts that have been put aside at the discretion of the Council. At the year-end they comprise a fixed asset fund which represents the extent to which funds are invested in fixed assets for use by the charity and therefore not available for other purposes (see note 15).

Restricted funds are funds subject to specific restricted conditions imposed by the donors or the Council.

(n) Leasing and hire purchase commitments

Provision is made annually for the estimated cost of obligations under the lease of the Association’s premises.

Rentals under operating leases have been charged to the Statement of Financial Activities on a straight-line basis.

(o) Preparation of accounts on a going concern basis

The Trustees have assessed the financial position and performance of the Victory Services Club and have a reasonable expectation that the Club has adequate resources to continue in operational existence for the foreseeable future. The Club continues to benefit successfully from trading surpluses and maintains a policy of calling upon investment reserves only when essential for capital improvements. The Trustees also note the Club's prudent investment strategy, robust risk management framework, and fixed energy cost arrangements through to 2027, which collectively support financial stability. In addition, forward plans for capital investment are well within the Club’s financial capacity, and the lease on the premises extends for another 101 years. On this basis, the Trustees are confident in the continued viability of the Club and have prepared the financial statements on a going concern basis.

(p) Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Council Members are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The main item within the financial statements where judgements and estimates have been made is in relation to estimating the useful economic life of tangible fixed assets.

(q) Pension arrangements

a) Group personal pensions

The Association provides group personal pension arrangements for certain employees. Contributions are made both by the Association and the employee into individual pension plans with a leading pension provider.

b) Automatic enrolment

The Association joined the Government auto enrolment scheme in May 2014. Eligible members of staff are automatically enrolled unless the staff member explicitly chooses to opt out. The Association currently contributes 5% (2024: 5%) of pensionable salary to the scheme.

19

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

2. INCOME

Income represents amounts receivable by the Association and its subsidiary from its membership and the services provided, net of value added tax recoverable. All income arose in the United Kingdom.

3. GRANTS, LEGACIES, DONATIONS AND FUNDRAISING

GRANTS, LEGACIES, DONATIONS AND FUNDRAISING
Unrestricted voluntary income
Grants
Legacies
Gift Aid on membership subscriptions and donations
Donations
INVESTMENT INCOME
Rents receivable
Investment income
Other interest receivable
NET INCOME/(EXPENDITURE) FOR THE YEAR
This is stated after charging the following:
- Amortisation of leasehold property
- Depreciation on other fixed assets
- Auditors remuneration for audit services
for audit services
for other services
- Operating lease rentals		 2025
£
-
116,141
200,576
40,741
357,458
2025
£
281,874
193,675
97,702
573,251
2025
£
12,654
978,850
36,802
1,250
31,870		 2024
£
33,250
67,899
193,269
11,748
306,166
2024
£
242,626
19,508
81,176
343,310
2024
£
13,079
1,086,004
32,396
1,050
54,686

4. INVESTMENT INCOME

5. NET INCOME/(EXPENDITURE) FOR THE YEAR

20

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

6.
EXPENDITURE
a)
ANALYSIS OF EXPENDITURE
Raising Funds
Fundraising and publicity
Expenditure on charitable activities:
Catering and accommodation
Membership and central allocation
TOTAL EXPENDITURE		 Support Costs
£
340,179
2,515,607
412,624
3,268,410
FOR		 Staff Costs
Other Direct
Total
£
£
£
824,615
550,972
1,715,766
3,712,557
1,188,675
7,416,839
1,275,516
89,123
1,777,263
5,812,688
1,828,770
10,909,868
THE YEAR ENDED 31 MARCH 2025		 Staff Costs
Other Direct
Total
£
£
£
824,615
550,972
1,715,766
3,712,557
1,188,675
7,416,839
1,275,516
89,123
1,777,263
5,812,688
1,828,770
10,909,868
THE YEAR ENDED 31 MARCH 2025
1,828,770
10,909,868

Fundraising and publicity expenditure includes support, staffing and other costs associated with commericial events activity and marketing. Expenditure includes £1,227,168 incurred by VSC (Trading) Limited (2024: £1,182,314). Of the total expenditure, £5,761 was restricted (2024: £nil).

b) ANALYSIS OF SUPPORT COSTS

The costs above include support costs which are allocated on the basis of income generated.

Raising Funds
Fundraising and publicity
Expenditure on charitable activities:
Catering and accommodation
Membership and central allocation
TOTAL SUPPORT COSTS:		 Office
expenses
£
22,474
164,239
27,731
214,444		 Property
costs
Other support
costs
Governance
costs
Total
£
£
£
£
257,299
48,830
11,576
340,179
1,880,351
356,855
114,161
2,515,607
317,490
60,254
7,149
412,624
2,455,140
465,939
132,886
3,268,410
FOR THE YEAR ENDED 31 MARCH 2025

c) GOVERNANCE COSTS

GOVERNANCE COSTS
Wages and salaries
Legal and professional, including audit
Council and Committee expenses		 2025
2024
£
£
11,576
-
114,161
72,666
7,149
2,314
132,886
74,980

21

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

6.
EXPENDITURE (COMPARATIVE)
d)
ANALYSIS OF EXPENDITURE
Raising Funds
Fundraising and publicity
Expenditure on charitable activities:
Catering and accommodation
Membership and central allocation
TOTAL EXPENDITURE		 Support Costs
£
325,004
2,447,804
403,347
3,176,155
FOR		 Staff Costs
Other Direct
Total
£
£
£
667,482
549,642
1,542,128
3,161,344
1,178,019
6,787,167
1,032,086
112,105
1,547,538
4,860,912
1,839,766
9,876,833
THE YEAR ENDED 31 MARCH 2024		 Staff Costs
Other Direct
Total
£
£
£
667,482
549,642
1,542,128
3,161,344
1,178,019
6,787,167
1,032,086
112,105
1,547,538
4,860,912
1,839,766
9,876,833
THE YEAR ENDED 31 MARCH 2024
1,839,766
9,876,833

e) ANALYSIS OF SUPPORT COSTS

The costs above include support costs which are allocated on the basis of income generated.

Raising Funds
Fundraising and publicity
Expenditure on charitable activities:
Catering and accommodation
Membership and central allocation
TOTAL SUPPORT COSTS:		 Office
expenses
£
25,440
185,912
31,391
242,742		 Property
costs
Other support
costs
Governance
costs
Total
£
£
£
£
228,578
70,986
-
325,004
1,670,454
518,771
72,666
2,447,804
282,050
87,593
2,314
403,347
2,181,082
677,350
74,980
3,176,155
FOR THE YEAR ENDED 31 MARCH 2024		 Property
costs
Other support
costs
Governance
costs
Total
£
£
£
£
228,578
70,986
-
325,004
1,670,454
518,771
72,666
2,447,804
282,050
87,593
2,314
403,347
2,181,082
677,350
74,980
3,176,155
FOR THE YEAR ENDED 31 MARCH 2024
74,980
3,176,155

c) GOVERNANCE COSTS

GOVERNANCE COSTS
Wages and salaries
Legal and professional, including audit
Council and Committee expenses		 2024
2023
£
£
-
10,454
72,666
69,013
2,314
1,605
74,980
81,072

22

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

7.
STAFF NUMBERS AND COSTS
The average number of persons employed during the year were as follows
Accommodation
Catering
Membership
Support
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions		 2025
No.
75
57
3
12
147
£
5,150,400
473,438
200,402
5,824,240		 2024
No.
72
48
3
16
139
£
4,259,961
413,156
187,795
4,860,912

The number of employees whose emoluments, excluding pension contributions and employer's national insurance who were in excess of £60,000 were:

£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£110,000 - £119,999
£120,000 - £129,999		 2025
2024
No.
No.
1
1
-
1
2
1
-
1
1
-
1
1
5
5

Contributions of £51,479 were paid on behalf of these employees into a money purchase pension scheme (2024: £54,798) Key management personnel includes the Trustees, Chief Executive and Senior Management Team.The total employee benefits of the key management personnel of the Charity were £346,434 (2024: £311,318).

8. COUNCIL MEMBERS' REMUNERATION AND REIMBURSED EXPENSES

No remuneration is paid to Trustees. Reimbursements of travelling expenses totalling £4,068 (2024: £307) were paid Trustees for attendance at the Charity's meetings. A further £3,081 (2024: £1,741) of committee expenses were incurred in the year as dislcosed in Note 6

23

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

9.
TANGIBLE ASSETS
Consolidated and Association
Cost or Valuation
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation & Amortisation
At 1 April 2024
Charged in Year
Disposals
At 31 March 2025
Net Book Value
At 31 March 2025
At 31 March 2024		 £
837,952
-
-
837,952
499,093
12,654
-
511,747
326,205
338,859
Long Leasehold
Buildings		 £
20,472,654
1,050,849
(1,196,447)
20,327,056
12,557,176
978,850
(1,191,066)
12,344,960
7,982,096
7,915,478
Leasehold
improvements,
fixtures, fittings
and equipment		 £
21,310,606
1,050,849
(1,196,447)
Total
21,165,008
13,056,269
991,504
(1,191,066)
12,856,707
8,308,301
8,254,337

Substantially all the fixed assets are for direct activities in furtherance of the Charity’s objectives. The lease on the property at 63/79 Seymour Street, London, W2 2HF was renewed during 2001 for a further 125 years.

The subsidiary company did not own any fixed assets during the year (2024: None).

10. INVESTMENTS

INVESTMENTS
Market value at 1 April 2024
Additions
Disposal
Net gains/(losses) on investments
Market value at 31 March 2025
Cash held as part of the investment portfolio
Total Investments at 31 March 2025
Historical cost at 31 March 2025		 £
4,554,199
2,291,470
(233,523)
15,378
6,627,524
147,613
6,775,137
5,213,206

Investments are held as units in managed funds operated by M & G Securities Limited, listed on the UK Stock Exchange and with the Armed Forces Common Investment Fund, managed by BlackRock Investment Management Limited and Investec Wealth & Investment Limited as follows:

Armed Forces Common Investment Fund
M & G Charifund
M & G Charibond
Investec Wealth & Investment Limited		 £
635,010
3,342,333
299,245
2,498,549
6,775,137

At 31 March 2025 the investment revaluation reserve was £1,599,386 (2024: £1,579,001). The subsidiary company did not own any investments during the year (2024: None).

24

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

11. INVESTMENT IN TRADING COMPANY

The Association holds 100% of the share capital of VSC (Trading) Limited (Company registration number 03532841) which is responsible for the provision of accommodation, catering and conference facilities.

The Association’s investment in the trading company was as follows:
VSC (Trading) Limited		 2025
£
2		 2024
£
2

The subsidiary is registered in England and Wales and pays under Gift Aid its entire profits as computed for corporation tax purposes to the Association.

Profit and Loss Account
Turnover
Cost of Sales
Gross profit
Administration expenses (net of interest receivable)
Operating profit
Interest receivable and similar income
Profit before tax
Profit for the financial year
Balance sheet
Current assets
Current liabilities
Amounts owed to the Association
Net assets
Share capital
Profit and loss account brought forward
Profit for the year
Gift aid to parent charity
Profit and loss account carried forward
12.
STOCK
Consolidated and Association
Food and wine
Club shop		 2025
£
1,342,650
(260,317)
1,082,333
(966,851)
115,482
19,742
135,224
135,224
2025
£
845,079
(299,004)
(410,849)
135,226
2
153,965
135,224
(153,965)
135,224
135,226
2025
£
72,555
5,220
77,775		 2024
£
1,306,804
(279,240)
1,027,564
(903,074)
124,490
29,476
153,966
153,966
2024
£
2,687,377
(203,186)
(2,330,224)
153,967
2
172,638
153,965
(172,638)
153,965
153,967
2024
£
57,556
4,584
62,140

25

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

13.
DEBTORS
2025
2024
£
£
Trade debtors
179,217
104,301
Amounts due from group undertaking
-
-
Other debtors
58,071
19,717
Prepayments and accrued income
201,108
120,234
438,396
244,252
14.
CREDITORS: Amounts falling
due within one year
2025
2024
£
£
Trade creditors
373,393
117,333
Other creditors including taxation and social
757,545
688,441
CBIL Loan
300,000
300,000
Accruals and deferred income
387,347
110,775
1,818,285
1,216,549
CREDITORS: Amounts falling due after one year
CBIL Loan
100,000
400,000
Total
1,918,285
1,616,549
15.
FUNDS
At 1 April
2024
Income
Expenditure
£
£
£
Unrestricted Funds
Designated Funds
Fixed Assets
8,254,337
-
-
Respite & Welfare Breaks Reserve
75,000
-
(36,404)
8,329,337
-
(36,404)
General Funds
8,513,408
11,861,419
(10,867,703)
Restricted Funds
The Nuffield Trust
17,641
-
(5,761)
Army Central Fund
-
Legacies
100,000
-
-
117,641
-
(5,761)
16,960,386
11,861,419
(10,909,868)
Consolidated
Consolidated
In April 2020, the Club obtained a government backed CBIL Loan for £1,500,000. The Trustees approved the
the pandemic and maintain liquidity. The loan is for six years, with a fixed interest rate of 2.10% for five years,
in the first year and a variable rate of 6.19% in the final year. Loan repayments commenced in July 2021.		 2025
2024
£
£
74,003
21,700
410,849
2,330,225
58,071
19,717
191,220
78,527
Association
734,143
2,450,169
2025
2024
£
£
373,393
117,333
477,662
500,484
300,000
300,000
368,226
96,102
Association
1,519,281
1,013,919
100,000
400,000
1,619,281
1,413,919
Transfers/
gains/
(losses)
At 31 March
2025
£
£
53,964
8,308,301
36,404
75,000
loan to support the Club through
with no interest or repayments
90,368
8,383,301
(74,990)
9,432,134
-
11,880
-
-
100,000
-
111,880
15,378
17,927,315

The year end restricted fund expenditure of £11,880 represents the balance of the Nuffield Trust funding of Reward and Recognition breaks, and a £100,000 legacy towards the refurbishment of adapted bedrooms. It is expected that this legacy will be spent on accessible bedrooms in the coming years. As part of our charitable objectives, the Club maintains its Respite & Welfare reserve of £75,000 to support those who take advantage of the Charity's respite and welfare breaks.

26

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

15. FUNDS (comparative) At 1 April
2023		 Income Expenditure Transfers/
gains/
(losses)		 At 31 March
2024
£ £ £ £ £
Unrestricted Funds
Designated Funds
Fixed Assets 8,686,010 - - (431,673) 8,254,337
Respite & Welfare Breaks Reserve - - - 75,000 75,000
8,686,010 - - (356,673) 8,329,337
General Funds 6,398,738 11,247,008 (9,876,833) 744,495 8,513,408
Restricted Funds
Grants
The Nuffield Trust 17,641 - - - 17,641
Respite & Welfare Breaks Reserve 75,000 - - (75,000) -
Legacies 100,000 - - - 100,000
Other specific donations
192,641 - - (75,000) 117,641
15,277,389 11,247,008 (9,876,833) 312,822 16,960,386
The year end restricted fund expenditure of £17,641 represents the balance of the Nuffield Trust funding of Reward and Recognition breaks, and a
£100,000 legacy towards the refurbishment of adapted bedrooms. As part of our charitable objectives, the Club maintains its Respite & Welfare
designated fund of £75,000 to support those who take advantage of the Charity's respite and welfare breaks. In 2024, the Club reclassifed its Respite
& Welfare Reserve as a designated fund.
16. ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS
AT 31 MARCH 2025
Restricted
Funds		 General
Funds		 Designated
Funds		 Total
£ £ £ £
Tangible fixed assets - - 8,308,301 8,308,301
Investments - 6,627,524 - 6,627,524
Net current assets 111,880 2,904,610 75,000 3,091,490
Long term liabilities - (100,000) - (100,000)
111,880 9,432,134 8,383,301 17,927,315
AT 31 MARCH 2024
Restricted
Funds		 General
Funds		 Designated
Funds		 Total
£ £ £ £
Tangible fixed assets - - 8,254,337 8,254,337
Investments - 4,581,654 - 4,581,654
Net Current Assets 117,641 4,331,754 75,000 4,524,395
Long term liabilities - (400,000) - (400,000)
117,641 8,513,408 8,329,337 16,960,386

27

THE VICTORY (SERVICES) ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2025

17. CAPITAL COMMITMENTS

Commitments for capital expenditure for which no provisions have been made in these financial statements were as follows:

18.
OPERATING LEASE COMMITMENTS
Land &
Buildings
Other
Leases which expire:
£
£
In one to five years
-
31,870
After five years
564,563
-
564,563
31,870
2025
Authorised and contracted for works for Memorial Wing Carpet Replacement (Corridors), replacement AC
units (Centenary Wing) and new card system for bedrooms.		 2025
2024
£
£
214,511
Nil
Land &
Buildings
Other
£
£
-
54,686
570,750
-
570,750
54,686
2024		 2024
£
Nil

19. MEMBERS' LIABILITY

The Charity is governed by its Memorandum and Articles of Association and limits the liability of each member to £1. The members of the Council are Directors of the company for the purposes of the Companies Act 2006 and serve as Trustees of the charitable company.

20. PENSION COMMITMENTS

The Association operates a Group pension arrangement. The overall pension charge for the year was £200,402 (2024: £187,795). At 31 March 2025, contributions of £26.443 were outstanding (2024: £30,195)

21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW

Net movement in funds
Dividends, interest and rents from investments
Interest Paid
Net losses/ (gains) on investments
Depreciation and amortisation charges
Increase/ (Decrease) in creditors
Decrease/ (Increase) in debtors
(Increase)/ Decrease in stocks
Net Cash generated by operating activities		 2025
£
966,929
(573,251)
11,969
(15,378)
991,504
601,738
(194,144)
(15,635)
1,773,732		 2024
£
1,682,997
(343,310)
18,217
(312,822)
1,099,083
(240,890)
(70,535)
(13,234)
1,819,506

22. RELATED PARTY TRANSACTIONS

At the year end VSC (Trading) Limited (the subsidiary) owed The Victory (Services) Association £410,849 (2024: £2,330,224). At the year end VSC (Trading) Limited (the subsidiary) owed The Victory (Services) Association £410,849 (2024: £2,330,224).
There we no other related party transactions. 2025 2024
£ £
Payments from VSC (Trading) Limited to parent charity for shared resources 3,513,264 -
Profits donated by VSC (Trading) to The Victory (Services) Association 153,965 -
23. POST BALANCE SHEET EVENTS

There were no post balance sheet events to disclose.

28