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2025-04-05-accounts

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

Charity number: 262057

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2025

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

CONTENTS

Page
Reference and Administrative Details of the Trust, its Trustees and Advisers 1
Trustees' Report 2 - 6
Trustees' Responsibilities Statement 7
Independent Auditors' Report on the Financial Statements 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Financial Statements 14 - 26

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2025

Trustees Mrs Catharine Kesley (resigned 5 December 2024)
Mrs Rebecca Lawes (resigned 5 December 2024)
Mrs Claire Cartledge
Mrs Susan Down
Ms Antonia Youngman
Ms Elspeth McGregor
Mr Rupert Youngman (appointed 5 December 2024)
Charity registered
number
262057
Principal office
The Trust Partnership
6 Trull Farm Buildings
Trull
Tetbury
Gloucestershire
GL8 8SQ
Independent auditors
PEM Audit Ltd
Registered Auditor
Salisbury House
Station Road
Cambridge
CB1 2LA
Investment Managers
Meridiem Investment Management Ltd
Riverside House
2a Southwark Bridge Road
London
SE1 9HA
Sarasin & Partners LLP
Juxon House
100 St. Paul's Churchyard
London
EC4M 8BU
Bankers
National Westminster Bank plc
156 Fleet Street
London
EC4A 2DX
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ

Page 1

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2025

The Trustees present their report together with the audited financial statements of The John Coates Charitable Trust (the Trust) for the year ended 5 April 2025. The Trustees confirm that the Annual Report and financial statements of the Trust comply with the current statutory requirements, the requirements of the Trust's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).

Objectives and Activities

Objects

The main object of the Trust is to provide financial support to charitable institutions or other charitable purposes. Since 5 November 1990, both the capital and the income of the Trust are paid or applied to such charitable objects in such proportions and at such times as the Trustees in their absolute discretion think fit.

Public Benefit statement

Our focus is on helping people lead more enriched lives and through our grant-making to charities, over 2,000,000 beneficiaries from across the UK will receive support as a result of our grants which have been awarded to a wide variety of causes, including: medical research, healthcare, addressing societal issues of concern, supporting the arts, protecting the environment and restoring our heritage. For further details of how we work, please see our grant-making policy below.

Grant-making policy

During the financial year ending 5 April 2025, Trustees selected a small number of charities to invite to apply for funding. These charities were working in the fields of either literacy or young people’s mental health.

Charities invited to apply did so in the usual way through an online application form and were still expected to provide detail of their project, demonstrate the need and outline what the expected outcomes will be. As part of the process, charities also provide a budget and a copy of the latest examined/audited accounts.

Many of the charities are visited by Trustees, to ascertain how the money has been used. In addition, we ask all successful applicants to sign their agreement to the terms and conditions of the grant. These require grantees to keep accurate financial records, evidence how the monies are spent, notify us as soon as possible if there is a delay to the grant's intended use or any desire to fund something different and, finally, to confirm that they have the requisite safeguarding policies in place. We also ask that beneficiaries report any serious incidents to us during the period of the grant they receive.

Within 12 months of receiving a grant, charities are expected to complete a short online monitoring report which asks them to outline a summary of the work delivered, who has benefitted, what impact their work has had, any significant issues and what future impact their work may have. There is also the opportunity to provide feedback on the grant-giving process.

Achievements

During the year, Trustees awarded 23 (2024: 57) charitable donations totalling £290,000 (2024: £442,283). With the reduced number of grants awarded, trustees were able to award charities larger grants, therefore increasing the impact of the award. This is something trustees wish to develop further. The average grant was £13,000 (2024: £8,000). Due to changes in strategy and grant giving, Trustees only awarded grants at one meeting during the year compared to the usual two meetings in previous years.

Page 2

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2025

Feedback and Impact

As reports are received 12 months after the grant was paid, this feedback relates to grants paid during the financial year ended 5 April 2025.

Financial Review

Financial Performance

The financial statements are set out on pages 14 to 33. There were no material changes to the accounting policies in the year. The Trust has no paid staff. We believe that the Trust has sufficient assets to meet its obligations.

As noted below, it is the Trustees' policy to achieve an annual total return target of £500,000. During the year investment income was acheived of £334,199 (2024: £324,788) with the balance met from capital disposals. The total gain on investments in the year totalled £324,337 (2024: £1,452,303) leaving a net income, after investment managements fees, grants and support costs, of £280,079 (2024: £1,240,848).

Investment management fees were £64,076 (2024: £57,231) and support costs £24,381 (2024: £36,729). Grant giving amounted reduced to £290,000 (2024: £442,283) which allowed the Trust to boost its free reserves in line with its reserves policy.

Page 3

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2025

Reserves policy

We aim to hold in reserve sufficient funds to cover grant commitments, budgeted costs and routine activities, for example, trustee meetings and expenses for the current financial year. We aim to maintain an appropriate budget for future years to cover longer-term grant commitments, when applicable, and administration costs.

The Trust generates income from an investment portfolio worth approximately £16.6m at the year end. For the forthcoming 12 months, core administrative fees are expected to be in the region of £45,000. There are currently no long-term grant commitments.

Since 1 January 2022 there has been an annual total return target of £500,000, which is predominantly met from investment income with the balance met from the realisation of capital/investments. Where actual income is below £500,000 a transfer is made annually for the difference from endowment funds. Total funds held by the Trust were £16,892,057 at the year end (2024: £16,611,978), comprising the expendable endowment of £16,705,842 (2024: £16,611,382) and unrestricted funds available for distribution of £186,215 (2024: £596). The unrestricted funds represent the free reserves of the Trust.

The free reserves as at 5 April 2024 were £186,215. This is within target reserves.

Our reserves policy is reviewed on an annual basis.

Investment policy

We have the power to invest Trust funds in such assets of whatever nature we think fit as described above. The assets of the Trust were managed on a discretionary basis, cash to meet immediate requirements being held on deposit with the National Westminster Bank and CAF Bank.

The Trustees revised their investment policy in November 2020 and moved to a total return basis with effect from 1 January 2022. Our investment managers were set a benchmark of a 3.5% p.a. increase in the value of the portfolio above the Consumer Price Index and specifically, each manager is asked to achieve a total return target of £250,000 each calendar year.

The Consumer Price Index increased by 2.6% in the year to 31 March 2025 (2024: increased by 3.2%). The investment portfolios increased as follows (excluding cash):-

Page 4

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2025

The net income acheived was as follows:

Future Plans

Trustees wish to increase the impact of their grants and continue to streamline their grant-giving policy further by reducing the number of charities directly supported by the Trust and/or by supporting charities by donating through other Trusts, foundations and charitable organisations. This will allow Trustees to award larger grants which will benefit the recipient charity tremendously.

Trustees will continue to award grants twice a year and will also run a smaller grants programme which will benefit their legacy charities.

Trustees plan to concentrate on developing relationships with charities supported and carrying out in-person visits where possible.

Going Concern

Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.

Structure Governance and Management

Governing document

The governing document of the Trust is the Trust Deed dated 6 November 1969 amended on 1 March 2022.

In light of Covid-19 restrictions, Trustees amended the governing document to allow decisions to be made electronically and meetings to be held online, in order to ensure the Trust continues to meet its objectives.

Trustee selection methods

New trustees are appointed by deed by the acting Trustees. Although we would hope that future trustees will be found from among the descendants of the Settlor, we recognise that this may not always be possible. In these circumstances, we would look to appoint an "outside" trustee, and may, if necessary, appoint a professional to take on this role. In such circumstances, trustees would be identified via targeted recruitment.

Potential trustees are met by the Chair who then makes a recommendation to the full Board at an appropriately convened meeting. Trustees are sent a joining pack which includes the following documents:

Page 5

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2025

There is no limit to the length of tenure served; however, the Trustees may wish to recruit new trustees and retire existing trustees based on the skills they deem required on the Board to effectively execute their current strategy.

Organisational structure of the Trust and how decisions are made

We are empowered by the Trust Deed to pay out the capital and the income of the Trust to or for such charitable purposes as we, in our absolute discretion think fit.

Risk policy

We have reviewed the major risks which we face.

The main financial risk relates to the underperformance of our investment portfolio, which is our sole asset. We realise that the risks cannot be eliminated entirely, but we have policies in place to mitigate them so far as possible. Our investment portfolio is managed by established investment managers and its performance, suitability of its investment holdings and investment policy are reviewed on a regular basis by the managers and Trustees. The management of our investment portfolio is split between two investment managers. Our risk is further spread by the diversity of our portfolio which consists of UK and overseas shareholdings and bonds.

Reputational risk is managed by only awarding donations to charities who have been registered with the Charity Commission for a minimum of five years, whose accounts are subject to the Charity Commission reporting and accounting regulations. We often make grants to the same charity over a number of years; however a follow-up monitoring report is completed before the charity can reapply and this needs to demonstrate an effective use of the funds received. We occasionally visit a charity before any grant is made to enable us to get an idea of how our money will be used. More often, visits are made after a donation.

Our risk policy is reviewed on an annual basis.

Fundraising

The Trust has no fundraising activities requiring disclosure under S162A the Charities Act 2011.

Charities Code of Governance

The Trustees have engaged The Trust Partnership to provide administration and governance support. The Trust Partnership provides advice and guidance to ensure the Trustees are working in line with the Charities Code of Governance and following best practice where it is practical to do so.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr Rupert Youngman

Trustee

Date: 30 September 2025

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2025

The Trustees 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).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Trust and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Mr R Youngman Trustee Date: 30 September 2025

Page 7

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST

OPINION

We have audited the financial statements of The John Coates Charitable Trust (the 'Trust') for the year ended 5 April 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Trust'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.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 this gives rise to 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 Trust'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 Trust or to cease operations, or have no realistic alternative but to do so.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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 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. 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:

We assessed the susceptibility of the Trust’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE JOHN COATES CHARITABLE TRUST (CONTINUED)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

USE OF OUR REPORT

This report is made solely to the Trustees in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an Auditors' 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 Trust and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

PEM Audit Ltd

Registered Auditor Salisbury House Station Road Cambridge CB1 2LA

Date: 01 October 2025

PEM Audit Ltd are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2025

Note
INCOME AND ENDOWMENTS FROM:
Investments
3
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds
4
Charitable activities
5
TOTAL EXPENDITURE
NET EXPENDITURE BEFORE NET
GAINS ON INVESTMENTS
Net gains on investments
NET INCOME
Transfers between funds
12
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Endowment
funds
2025
£
-
-
64,076
-
64,076
(64,076)
324,337
260,261
(165,801)
94,460
16,611,382
94,460
16,705,842		 Unrestricted
funds
2025
£
334,199
334,199
-
314,381
314,381
19,818
-
19,818
165,801
185,619
596
185,619
186,215		 Total
funds
2025
£
334,199
334,199
64,076
314,381
378,457
(44,258)
324,337
280,079
-
280,079
16,611,978
280,079
16,892,057		 Total
funds
2024
£
324,788
324,788
57,231
479,012
536,243
(211,455)
1,452,303
1,240,848
-
1,240,848
15,371,130
1,240,848
16,611,978

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 26 form part of these financial statements.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

BALANCE SHEET AS AT 5 APRIL 2025

Note
FIXED ASSETS
Investments
9
CURRENT ASSETS
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS
Endowment funds
12
Unrestricted funds
12
TOTAL FUNDS		 19,781
268,495
288,276
(28,205)		 2025
£
16,631,986
16,631,986
260,071
16,892,057
16,705,842
186,215
16,892,057		 18,311
87,013
105,324
(30,449)		 2024
£
16,537,103
16,537,103
74,875
16,611,978
16,611,382
596
16,611,978

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr Rupert Youngman Trustee

Date: 30 September 2025

The notes on pages 14 to 26 form part of these financial statements.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

1. ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The John Coates Charitable Trust 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.

1.2 GOING CONCERN

The Trustees believe that the Trust will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore continue to adopt the going concern basis in preparing the financial statements.

1.3 INCOME

All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment adviser of the dividend yield of the investment portfolio.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the Trust to raise funds for its charitable purposes.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Trust's objectives, as well as any associated support costs.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

1. ACCOUNTING POLICIES (CONTINUED)

1.4 EXPENDITURE (CONTINUED)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

1.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

1.7 DEBTORS

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

1.8 CASH AT BANK AND IN HAND

Cash at bank and 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.

1.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

1. ACCOUNTING POLICIES (CONTINUED)

1.10 FINANCIAL INSTRUMENTS

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes.

The expendable endowment represents the value of assets held as investments arising from the original assets settled by the late J B M Coates on 6 November 1969. The income arising on these assets is available for use in accordance with the Trust's objects and is included in unrestricted income. The fund is available for expenditure on charitable donations as the Trustees see fit.

2. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The most significant areas of adjustment and key assumptions that affect the items in the accounts are to do with estimating the liability from multi-year grant commitments. The Trustees do not consider the impact of discounting to be material and therefore no adjustment is made. Further no adjustment is made for the potential clawback of grants that are unused. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

3. INVESTMENT INCOME

Unrestricted
funds
2025
£
Dividend income
332,076
Bank interest
2,123
334,199
TOTAL 2024
324,788		 Total
funds
2025
£
332,076
2,123
334,199
324,788		 Total
funds
2024
£
323,273
1,515
324,788

4. INVESTMENT MANAGEMENT COSTS

Investment management fees
TOTAL 2024		 Endowment
funds
2025
£
64,076
57,231		 Total
funds
2025
£
64,076
57,231		 Total
funds
2024
£
57,231

Page 17

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

5. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
TOTAL 2024		 Grant
funding of
activities
2025
£
290,000
442,283		 Support
costs
2025
£
24,381
36,729		 Total
funds
2025
£
314,381
479,012		 Total
funds
2024
£
479,012

Support costs are allocated to grants payable on the basis of the total number of grants awarded.

In 2025 and 2024 all expenditure on charitable activities was attributable to unrestricted funds.

ANALYSIS OF SUPPORT COSTS

Audit fees
Accountancy fees
Trust administration expenses
Trustees' expenses
Bank fees
TOTAL 2024		 Charitable
activities
2025
£
9,000
2,750
11,717
800
114
24,381
36,729		 Total
funds
2025
£
9,000
2,750
11,717
800
114
24,381
36,729		 Total
funds
2024
£
9,000
2,664
24,101
800
164
36,729

All of the above costs in 2025 and 2024 are governance costs.

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

6. ANALYSIS OF GRANTS

Grants
TOTAL 2024
Grants to instituations
Addenbrooke's Charitable Trust (ACT)
Adult Literacy Trust
Aldingbourne Trust
Alzheimer's Society
Amberley Museum and Heritage Centre
Autistc Girls Network
Battersea Arts Centre
Become Charity
Blue Smile Charity
Calibre Audio
Chance to Shine
Chichester Festival Theatre
Child Bereavement UK
Children's Bookfest
Cosmetic Toiletry and Perfumery Foundation
Crohn's and Colitis UK
Cybersmile Foundation
Doorstep Lirary Network
Eating Matters
Eikon Charity
Fare Share UK
Carried forward to next page		 Grants to
Institutions
2025
£
290,000
442,283		 Total
funds
2025
£
290,000
442,283
2025
£
50,000
10,000
10,000
-
-
10,000
-
10,000
-
-
-
-
10,000
10,000
-
-
10,000
10,000
-
10,000
-
140,000		 Total
funds
2024
£
442,283
2024
£
-
10,000
5,000
10,000
6,297
-
5,000
10,000
8,300
9,888
5,000
5,000
10,000
-
5,000
5,000
-
10,000
10,000
-
5,000
119,485

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Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

Grants to institutions (continued)

Brought forward from previous page
Farms for City Children
Fields in Trust
Foyer Federation
Freedom from Torture
Frozen Light
Fulham Reach Boat Club
Future Trees Trust
Give A Book
Hourglass (Safer Ageing)
INSPIRE Foundation
IPSEA
Landmark Trust
LEAF (Linking Environment and Farming
LIFEBeat
Living Paintings Trust
London Youth Choirs
Love4Life / Fitzroy
Maxmillan Cancer Support
Macular Disease Society
Mental Health Innovations
Motor Neurone Disease Association
National Rheumatoid Artrhritis Society
NSPCC
Old Vic Theatre Trust 2000
PAPYRUS Prevention of Young Suicide
Carried forward to next page		 2025
£
140,000
-
-
-
-
-
-
-
10,000
-
-
-
-
-
20,000
10,000
-
-
-
-
10,000
-
-
-
-
10,000
200,000		 2024
£
119,485
6,000
11,500
5,000
5,000
5,000
5,000
5,000
10,000
7,500
5,000
10,000
7,000
5,000
8,000
-
5,000
7,253
15,000
5,000
-
5,000
5,000
10,000
10,000
-
276,738

Page 20

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

Grants to institutions (continued)

Brought forward from previous page
Place2Be
Plantlife International
Portman House Trust
Read Easy UK
Redthread Youth
School Ground Sounds
Schoolreaders
Shannon Trust
Share Community
Showerbox
Society for Mucopolysaccharide Diseases
Speakers Trust
Spread a Smile
St Michael's Fellowship
StandOut Programmes
Supporting Wounded Veterans Ltd
SW Ambulance Foundation Trust Fund
The Latin Programme - Via Facilis
Trelor Trust
Young Peoples Shop
Total grants awarded in the year
Reconciliation of grant expense
Grant commitments brought forward* (Note 11)
Grants paid in the year
Grant commitments carried forward (Note 11)		 2025
£
200,000
20,000
-
-
10,000
-
-
10,000
-
-
-
10,000
10,000
-
-
-
-
-
10,000
10,000
10,000
290,000
2025
£
-
290,000
-		 2024
£
306,738
10,000
5,000
10,000
10,000
10,000
6,554
10,000
10,000
3,000
10,000
-
8,522
10,000
5,000
10,000
10,000
7,469
-
-
-
442,283
2024
£
-
442,283
-

Page 21

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

7. AUDITORS' REMUNERATION

2025 2024
£ £
Fees payable to the Trust's auditor in respect of:
The audit of the Trust's annual accounts (VAT inclusive) 9,000 9,000
All other non-audit services (VAT inclusive) 2,754 2,664
All other non-audit services - prior year (VAT inclusive) 196 -

8. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL).

During the year ended 5 April 2025, expenses totalling £800 were reimbursed or paid directly to 6 Trustees (2024 - £800 to 6 Trustees). These expenses relate to travel, stationery, postage and telephone costs.

Page 22

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

9. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 6 April 2024
Additions
Disposals
Revaluations
Cash movement
AT 5 APRIL 2025		 Listed
investments
£
16,160,997
1,478,246
(1,849,884)
370,852
-
16,160,211		 Cash held in
investment
portfolio
£
376,106
-
-
-
95,669
471,775		 Total
£
16,537,103
1,478,246
(1,849,884)
370,852
95,669
16,631,986

Day-to-day management of the investments was delegated to Meridiem Investment Management Ltd and Sarasin & Partners LLP.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in collective investment funds, unit trusts and open-ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report. The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Trust’s investments are mainly traded in markets with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Trust manages these investment risks by retaining expert advisers and operating an investment policy that provides a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Trust does not make use of derivatives or similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

Page 23

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

10. DEBTORS

Accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals		 2025
£
19,781
2025
£
28,205		 2024
£
18,311
2024
£
30,449

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Page 24

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

12. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR
Balance at
6 April 2024
£
Income
£
596
334,199
16,611,382
-
16,611,978
334,199
FUNDS - PRIOR YEAR
Balance at
6 April 2023
£
Income
£
(20,392)
324,788
15,391,522
-
15,371,130
324,788		 FUNDS - CURRENT YEAR
Balance at
6 April 2024
£
Income
£
596
334,199
16,611,382
-
16,611,978
334,199
FUNDS - PRIOR YEAR
Balance at
6 April 2023
£
Income
£
(20,392)
324,788
15,391,522
-
15,371,130
324,788		 FUNDS - CURRENT YEAR
Balance at
6 April 2024
£
Income
£
596
334,199
16,611,382
-
16,611,978
334,199
FUNDS - PRIOR YEAR
Balance at
6 April 2023
£
Income
£
(20,392)
324,788
15,391,522
-
15,371,130
324,788		 FUNDS - CURRENT YEAR
Balance at
6 April 2024
£
Income
£
596
334,199
16,611,382
-
16,611,978
334,199
FUNDS - PRIOR YEAR
Balance at
6 April 2023
£
Income
£
(20,392)
324,788
15,391,522
-
15,371,130
324,788		 Expenditure
£
(314,381)
(64,076)
(378,457)
Expenditure
£
(479,012)
(57,231)
(536,243)		 Expenditure
£
(314,381)
(64,076)
(378,457)
Expenditure
£
(479,012)
(57,231)
(536,243)		 Expenditure
£
(314,381)
(64,076)
(378,457)
Expenditure
£
(479,012)
(57,231)
(536,243)		 Transfers
in/out
£
165,801		 Gains/
(Losses)
£
-		 Balance at 5
April 2025
£
186,215
16,705,842
16,892,057
Balance at
5 April 2024
£
596
16,611,382
16,611,978		 Balance at 5
April 2025
£
186,215
16,705,842
16,892,057
Balance at
5 April 2024
£
596
16,611,382
16,611,978
Balance at
6 April 2024
£
596
16,611,382
16,611,978
UNRESTRICTED
FUNDS
General Funds
ENDOWMENT
FUNDS
Endowment
Funds
TOTAL OF
FUNDS
16,611,382
16,611,978		 (165,801)
-
Transfers
in/out
£
175,212		 324,337
324,337
Gains/
(Losses)
£
-		 16,705,842
16,892,057
Balance at
5 April 2024
£
596
STATEMENT OF
Balance at
6 April 2023
£
(20,392)
15,391,522
15,371,130
UNRESTRICTED
FUNDS
General Funds
ENDOWMENT
FUNDS
Endowment
Funds
TOTAL OF
FUNDS
15,391,522 - 1,452,303 16,611,382
15,371,130 324,788 (536,243) - 1,452,303 16,611,978

Page 25

Docusign Envelope ID: AD51FCAC-68D9-4DFF-BD94-3F9036C205FD

THE JOHN COATES CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

12. STATEMENT OF FUNDS (CONTINUED)

The expendable endowment represents the value of assets held as investments arising from the original assets settled by the late John Bernard Maurice Coates on 6 November 1969 less investment manager fees less expenditure. The income arising on these assets is available for use in accordance with the Trust's objects and is included in unrestricted income. The fund is available for expenditure on charitable donations as the Trustees deem fit. Since 1 January 2022 the Trust has adopted a total return approach with its investment managers for a combined annual total return target of £500,000. There is no specific income target and the balance is met from the proceeds from the sale of investments (capital). The transfer in the year represents the difference between actual income and the total return target.

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Fixed asset investments
Current assets
Creditors due within one year
TOTAL		 Endowment
funds
2025
Unrestricted
funds
2025
£
£
16,631,986
-
90,026
198,250
(16,170)
(12,035)
16,705,842
186,215		 Total
funds
2025
£
16,631,986
288,276
(28,205)
16,892,057

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Fixed asset investments
Current assets
Creditors due within one year
TOTAL		 Endowment
funds
2024
£
16,537,103
86,433
(12,154)
16,611,382		 Unrestricted
funds
2024
£
-
18,891
(18,295)
596		 Total
funds
2024
£
16,537,103
105,324
(30,449)
16,611,978

14. RELATED PARTY TRANSACTIONS

There were no related party transactions in the year, except those disclosed in note 8.

During the prior year a grant of £5,000 (2023 - £Nil) was given to Chance to Shine Foundation Ltd, a charity whose Trustees include a spouse of one of the John Coates Charitable Trust's Trustees.

Page 26