HEDLEY FOUNDATION LIMITED A Company Llmltsd by Guarant•• R•glst•r•d Charlty Number: 262933 R•gl8t•r•d Company Numb•r: 01018571 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 HEDLEY FOUNDATION UMrrED CONTEP Pag• Charlty Infornwtlon Report of tho Tru8tse8 st•tom•nt of Trust•M' R•sponslbllltles R•port of th• Audllor Con8011dat•d Stat•m•nt of Flnandal A¢tMtI•8 10 C*)n•olldat•d and Company Balanc• Shwt• 11 C¢n8olldat•d Cashfl¢)w St•t•m•nt 12 Accwnllng Polld 13-16 Not•s to th• Flnandal Stal•monls 17-29 HEDLEY FOUNDATION UMITED CHARrrY INFORMATION A C FO￿ {Chaimian) P R Hdcroft L B Stuttaford A E Fanshawe D W Byarn£ook C A G Bennett A J S<%lly Comp•ny S•u•tsry MCKItto R•glst•r•d Offic• 1 College Hill London EC4R 2RA Bank•rn Royal Bank of S¢))tland London Sen4￿ Centre 4th Fk￿r Regonts House 42 Isfington HKJh Street London N18XL knd•ynd•nl Audftor PKF Litt￿phn LLP 15 Weslfery Clrcu6 Canary Vvharf London E14 4HD Inv•stm•nt Manag•rn 16 Babmaes Stre8t London SW1Y 6AH Waverton InvesbThnt Management Llmlted IW1M) S8vi118 Investment Management (The Charitiés Propety Fund) 33 Margaret Street {￿￿ W1G OJD Sdldtorn DMH sts[￿rd LLP Griffin House 135 HKJh Slreet Crawky RH10 1DQ Company Rogl8tratl¢)n Numb 01018571 Charity Rogislrntion Numb•r 262933 HEDLEY FOUNDATION LIMrrED REPORT OF THE TRUSTEES The Trustees, who are also the Directofs of Hedley Foundation Llmited (the Found&tion). have pleasute In presenting their Report together with the Flnanc4al Staternertsforthe year al￿d 31 March 2025. The Trustees have adopted the provisions of the Statenwt of RecommerMJed Practice 'Accwnting and Reporting by Charities. ("FRS 102 SORVI in preparing the Annual Repxt arNJ Fina￿la1 Slatements of the Charity. Trust••• of th• Charlty The Dlre¢tor8 of the Charitable Company are Ms Twste85 for the purtw of chaiity law. The Trustees have seNed during the year and slnce the year end 8r6 Ilstwj on Page 1. Obl•ctlv•• •nd ActlvllS•8 The Foundation was estsblISh￿ for exdusively chartlable pu￿069s. The Foundation man8ges Its 8sset8 and its Sub81dSary Companies, which together cornpris8 the Group. and uses rts ino)mg after costs to make grants to UK regisl8rBd charitles. The Hedley FOundatIc￿ aim8 to Thprove Ihe quallty of Ilfe of people in the UK, partkularly th088 from di8a(fvantaged backgrounds. It achieves this by Ma￿ng grants. within Ixw, to UK reglstered ¢h8rltl88 for the beneflt of yourKJ w)ple. disabled pèop￿, 8fderfy [￿pIe. the terminally111 and othe￿198 dls8dvantaged people and thelr Garers. The essence of the Foundation's actiVit￿S is Sodal WelPare and for convenience the followlng categorle8 are u8ed: • Youth. Projects which raise thè a8pir8tion8 or help to re81i88 th8 full potentS91 of disadvantaged young people. Typically, grants are given to support young Feople into ed￿tiOn, training or 8usts1nat￿e employment. Providlng an opportunity to bmaden hofizons through sport and adventurous adv￿8$ may fomi part of th18 calegory. . Dls•bl•d. Projects 10 8UPPOrt and ImFKove the qu811ty of lffe of pgoplg of 811898s wlth physi￿1 and mentsl di8abilities, sen80ry impaiment and leaming difficultles. . Eldorlyrr•rffllnally111. Projects to help eklety people to malntsln Ind9pend8nce arKI proj￿ to 8UPPOrt those In the closing stage of life, In I￿4￿¢88 or hospitals. . Ml8c•llaneous Support. Prolects to 8UPFrf)rt C8r818 8fKI 80¢181 w8lfare projects that mlght support the homeless, the employablllty opportunilies for offenders ar)d ex-offenders arKI th8 opportunty to reduce re- offending. D8talls of how lo aFoty for a grant are available on th8 Foundatlon'8 websrte at WOVW. The Trustees award grants to selected ch8rflles wlth In￿X￿ of less than £1M pa that have submltted applications forfunding, thatw¢)ukJ benefft those people oudined in the categorigs above. The FourKJ8tion tends not to give money to large Scale or national charities. Typically. sums of £2K - £5K are given with o￿a610n81 larger sums granted to charities where high impact can b8 achieved. Most grants are on8-off payTftents, but mulll-year grants might be considered. Furlher apFAications from the sam8 organisallon V￿uld not nornally be considered for a of two years from Ihe date of the grant. Charities that may have submitted an unsU(￿s8ful appllczuon for a grant may aP￿Y again after a two year p8riod. Acknowledgem8nts are expe¢*ed from the reclFient charilies vlthin a Iwelve m¢)nlh pèriod and o)xional fdlow-up visits May be made by Trustees. Applications for grants are submitted to the Foundalk)n, ststing the sum they seek and 8￿culatIng how thèy would bmsh to use any grant made. These are 311 ￿)nSidered with partlcul8r So￿unt beiryJ tsken of how any grant would bè 5￿Th( how many people would benefit, how much the applKxnt charity has already ralsed and of their latest audlted accounts. All apF4ications are consld8red initially by the Chaimian arml Ap￿81$ Clerf(8nd those most closety aligned wlih the Foundation's objectives are taken to a Trustees, Sift Board, which diswsses each application in detail. Thereafter. recoMMenda￿n8 for payments are mad8 to Ihe Maln Board of Tru$tee8, whiGh Gonvenes a liwe latsr. HEDLEY FOUNDATION LIMrrED REPORT OF THE TRUSTEES The Group's total Inwne during FY2024f2025 vrns £1.474.IAO (FY202312024- £1.629.433). IncxJffE is deriv￿1 from an investrnent portldio. the Charlties Prop￿ Fund ICPF) and direcyy held retail properties. During the period the investrnent rKJrtfollo vrns valued at £30.1C6,387 (FY202312024- £30.218.255). Thé TN8tees decided to invest a futher £500.000 in CPF, which fo(wses on commercial propth, taking ts total Investsment to £6.632,984 (FY202312024 - £6,003.223), to provide an estimated Income of £300.000 pa. Regarding the direclly held retsil prop8rties. in general temis. trading GondltKJns ￿ntin￿l to b8 drfficuFt for retailers. vthich aff8Gled landlords as evidenced by slKling ronts. shortèr leases, more breakyjints arnd longer rent-free periods followlng new leases. Whilsi these heattwinds seNed to r8du¢e the valuatlons of Ihe Foundation's properties to £8,425.000 {FY2023f2024 - £9,335,000). the Group is fortunate to have shops in good market towns wlth welkknown tenarrts and ￿a$ able to maintsin 93% cK(xJpancy during tho year. giviTrJ a gross yield of 7%. The Tw$tees dispos&J of a shop in Salisbury. d&splte best efft)rts to secure 8 Igase. had been withoLrt a tenant for approximat8ty iwo yearn,. the sale r8allsed a gain of £166.725. Agalnst this backdrop. grants totalling £913.213 were distributed duriThJ FY2024f25 to 384 charities (FY2023124 - £798,730 to 326 charitle$l. The Hedley Foundatlon malntsln8 8 8mall office of part Ilme stsff who arn capable of rnanaging and re￿rtIng all aspects of its activities. The HeAlley Foundalion's income arKI thus its abilty to support other chanties Is derlved from a professionalty managed Investrnent portfolio with Waverton Inv8$tment Management {W1 Ml, an investment with the Charities Property Fund and from rents generated from 8 number of retail shops, whlch are let arKI manag8d vlth the ald of professional advlsers. Publlc Bènofft Th8 oblectlves and activities as listed above are undertaken to fvrther the Foundation's purp086 for publlc benefft. The Trustee$ confirm that they have had regard to the guldanL¥ on public ￿nefit l$sued by the Charity Comm188ion YA)en consKlering the obJ8clfves arKI actsvths of the Foundatit)n. Structur•, Gov•rnan￿ and Manwm•nt The FoundatSon w8¥ Incorporated on 23 July 1971 88 a compary Ilmii8d by guarantee and Is a reglstered charity. It is govemed by its Memorandum aThJ ArtkJ88 of Assodation. The Foundation has no share capital but each member undertakes, in the event of wirKlirvJ up, to o)ntslbuie up to £1 towards the CO81 of winding up. At 31 March 2025. there wern 7 members of the Foundation. who are also th6 Trustees and the Directors of the Charitable Company. New TN6tees are appointed by the existiry Trustees. The men8gement olthe quoted Investment portlollo18 debegat&J to W8V8rton Investmènt Management IW1 M), who are regulated by the FCA. The hokllng in CPF Is managed by Savills Investment Management, whlch Is also regulatèd by the FCA. The ratail property W)rifollo 18 direclly hehl ty the FourKlalion and Its Subsidiary Companles. whlch takes professiond advice from Clive Th(Knas and Company and Robln Hanson FRICS. The Tru8tees met fomialty on four oGca&ons during the year to review the perfom8nce of the FourKlation's investments and Ils fin8ndal stste. to authorise the dlstribulion of grants and to conduct Board Meetings of the Subsidlary Companies of whid) they are Dlre¢tor8. Quarterfy managwnent accounts, formal briefings by inve8tment managers and advl8or8 and govern8r￿ rnaltef8 are rouunely cOr￿ldered and docunented. Rel￿)menda￿ons frir pay and remunerntion are made to a subrfommlttee ofthe Twstees and Dlrector8 of the Subsidiary Companies. The sutpcommtliee. having (xinspjered varlous benchmaths, makes recommendation8 lo the full Board of the Foundation. Remuneration of staff was rey￿ed in DeCem1￿r 2024. R•vi•w of tho Buslness and Futur• D•v¢lopmonts The results for the year are set out on Page 10 of the FInar￿￿91 Statements. The net movement in fvnds for the yeai amounted to a movement of £703.416 compar8d to a mv8ff£nt of £5,183.924 the p￿)r year. The following Companies are wholly Cmined subsNJlarles of Ihe Foundation.. Company Fairhood Properties Limited Merewood prO￿rtieS Limited Prfnclpal Actlvlty M8n8gement of investment prop8rties Management of investment properties HEDLEY F(XINDATION UMrrED REPORT OF THE TRUSTEES Mountbarrow Propertie8 Limited MiddlerwJg Nominees Limtted MiddlerKJg Sep4ices ￿Mited Management of invostment Fxoperties Nominee company Managew*nt 8fjrvl￿ Company The Management Company and the Propety Companies transfer 100% of their tsxable P￿fits to the Foundation under the Gift Aid and Deed of Covenant arTangemen The results of the a￿ve Companles have been cOr￿011dated in the Statement of Financi81 Act]vMes and Balance Sheet of the Foundation in aC￿rd8[￿ wlth the Charities, Statement of Reo)mmended Practice {SORP), Accountlng and ReForfing by Charities as Uk)Jatsd in October 2019. The Truslee$ con8iderthe results of the investrnent prop8ty cx)mpanies and managemMt 8erviwi I￿7panY to be $8tisfactory. Flnanclal Instrum•nts The Found8tl¢)n doe8 not any public or gov8mmont fundiry and relles entirety upon its Invested 8889ts to prowde funding for the maklng of grants. In order to mlnlm186 the investm8nt risk, the Trustee8 have diversified the range of investments to Ir￿lude UK and global equili88. govemment Btc¢ks. retsll property and units within th8 Charities Property Fund. There h88 been no outsourced fundralslng vla professional furKlra188rs or other thlrd part18s. As a re8ult. the Charity is not r6g18tered wrth the fundraI￿￿j regulator and recetved no fundraislng complaints In the year. R•MTv•• PollGy Th8 Foundation has totsl funds of £47.950,141 at 31 March 2025 all of whlch are unrestrlded {2024 £47,246,725). Of these total funds, £47.151.103 I)￿1d be realised by diswsing of fixed 8gsets1£5.925.000 retall propert188. £30.106.387 Ilst8d Inve81ments. £6.632,984 CPF and £4.486.732 invesknent In sub8ldlarle$l. On 31 March 2025 unrestrlcted free reserve8, 8t the consolTrd81ed level. amounted lo £2.785,77012024 - £1,690.247). The Tru8tee8 consKler the 8ppn)priate tsrgel level of con8011dated free re8errfes to fvffjlve months operating exp8fKliture. The level ofconsolidated free r98eNes w88 in Ilne wlth thls target. repr98enting 23 month8 of operatlng and grant-making expenditure. Inv••tm•nt Pollcy The pollcy of the FoundaUon Is to ￿rnbine 88curtty wbth hlgher than averagg Income through investmènts. partly in wholly owned let ratail propert*s. paruy In units within the Charttles Property Fund and partly in managed portfolio of invesbments. In respect of the retsll FmPgrUe8. annual ylekl was Th (2024- PA). In respect of the Charltle8 Prop8rty Fund. the annual yield was 4.7%12024- 4.5%). In r8SPeCt of the managed globally Invested pordolio, Ihe annual yleld w88 1.7% {2024- 1.8%). Income from the managed inv8strnents 18 used to make grants arKI to Meet core ￿sts as dIrec￿l by the Trustees. Risk Manag•m•nt The Trustees consider thal low grovth. inllation arKI interna￿n81 wlltlcal tensions to bg the main threats to global e￿nOMiC stsbllity. By extension, these lactors the main threat to the value of the inv8strnent portfolio. to the retail property tKSrtfolio and to the value of the units viithin the Charities Propety Fund. The Trustees review the Risk Reglster perf￿￿[c￿lty (and at least annually) and rOuu￿ consKler 8tratsgl¢, operational and business risks that may fao the FouThJatlon" mibgating actions, rf any. are implemented. HEDLEY FOUNDATION LIMrrED REPORT OF THE TRUSTEES It is rK)teworthy that the annual (￿$t base for the Foundabon is relatr￿ty km. wtth more than Iwenty month's running costs being imm8diately avallable. Thlrd Party Indomnlty Provl$14 The Foundation has Purchased professional indemnty Ir￿uranCe on behalfof the Trust￿. Tho premium paid for thè insurance was £2,038 {2024- £1.606). Tr￿￿•8, R68pon8lbllltles The Statement of Trustee8' RosponsitMIit￿ can be found on Pa98 8. AudH Infornwtlon The Trustees who hekl office at the date of approwdl of thiB Trusteas. Report confinn that, so far as they are Individually awaro. there is no re￿vant audit infomialion of which the charit￿8 auditor is unaware; each Tnjstee has tsken all reasonable steps that Wshe ought lo have taken as a Trustee to make hlmselflherself aware of any relevant a￿￿1t inforynation and to establish that the Chariws auditor is avtsre of that infonnation. Our IrKle￿nd8Dl auditor, PKF Littlephn LLP. has 81gnlfied its wllllNJn888 to ￿)￿nue Sn office. By Order of the Board -) MCKItto Company S•cr•tary 22 Ociot*r 2025 HEDLEY FOUNDATION U￿￿ED sTATEl￿NT OF TRUSTEES, RESPONSIBILrriES The Trustees (who are also O•re(knrs of the Foundation for ts purpose of company law) are responsible for preparing the Trustees. Report arKI the Financial Ststements in accordance wilh applicable law and Unried Kingdom Accounts'ng 8tsThJards (UK GeneTrlly ALxepted Acwunllng Prdcti(*). Company and Charity law requires the Trustees to pr8pare Financial Statements for each financial y8ar. Under that law the Trustees have prepared the Financial Ststements in accordance with the Charrties, Statern￿rt of Recommended Practice. Accounting and Reporting by Charities and United Kingdom Flnancl81 ReportSNJ ar)d Accounung Stsndards. Under company and charity law th8 Trustees must not approve the Flnancial ststements unless they are satisfied that they gh*e a tru8 and lair view of Ihe state of affairs of the Charitable Company and of the surF4u8 or defkTrl of the Charitablè Company ft)r that pe￿d. In Frfeparing the88 FinanciBI ststements. the Trustaes are requlred to: 8el￿t 8uttable vKcounkn'ng policies and to apply them consistsnty: obserrfe the methods and prinuFA8s of the Charlties. SORP. Accounling ar¥J Reporting by Charfties; make Judgments arKI estimates that are reasonatkn and pwd8nt: State whether applic•ble UK Accwnting StarKlar(13. incI￿lIng SORP FRS 102 have been followed, 8uLyect to any material departures dl8d08•Y arKI explained in the Flnanclal Statèments., prepare the Flnawal Ststements on lh8 wlng Cxw￿rn ba818 unle88 It18 Inappropriate to assume that the Charitalje Company wlll be able lo conlnue in operatK)n. The Trustees are responsiblo ft)r keeping adequats accountiThJ reca)rds that are $ufflcl6nt to Show and explaln the Charitable Company's transactions. to dlsclose with r888onable accuracy at any time the fin8ndal Frf)$lllon of the Charitable Company 8nd to en8ure that the financial slatements comply with the Companie8 Act 2006 end Chartlles knt 2011. They 8re al80 re8FK)n￿L￿e for 8afe9uarding the 8s88ts of th8 Charitabk Company and for taklTrJ re080nable 8t8ps for the prevention and detecdon of fraud and other IrTegularitie$. HEDLEY FOUNDATION UMrrED REPORT OF THE AUDrroR INDEPENDENT Au0￿oR'sAEpORTTOTHE MEMBERSANDTRUSTEESOF HEDLEYFOUNDATION LIMITED Opinion We have audited the financial statement5 Ot Hedley Found81ion Limr(ed (the 'parent charitable company'l and its subsidiaries (the 'group'l for the year ended 31 Maich 2025 which comprise ihe Consolid8t8d Statement of Financial Activities Ilr)clu¢Jing Incom8 and Expenditure Accounii. the Consolidaied an(J Parent Chariiable Company Balance Sheets, the Consolidaied Cash Flow Statement and notes to th8 financial staiements. includlng significant accounting policies. The financial reporting tramework th8t has been applie(J in Iheir pi8paf8tion is applic8ble law and Uniied Kingdom Accounting Standards. including FRS 102 The Fin8nci81 ReporringSt8nd8rd8ppllc8L¥le in th8 UK8nd Republic of Irelgnd IUnit8d Kingdom Generally Accepted Accounting Practlcel. In Our oplnlon, Ihe flnanclal statements: glve a true end foir view of the state of the group'8 ond the parent charlt8ble company's affairs as at 31 March 2025. and ol the group's incoming resources and application of resources, including its income and expenditur8. IOT the year then ended: have been properly prepared in accordèncewtth United Kingdom Gen8ially Accepted Accounting Pra¢tSce- and h8ve been praparèd In aceord8nce whh the requirements of Ihe Companies Act 2006 ond the Ch8ritles Act 2011. 8BJls for oplnlon We ¢onduct8d our audit in accordgnce wilh Intérnational S18ndard$ on Audiling IUKI (ISA8 IUKII and applicable18w. Our re8ponsibllitie8 under thos8 8t8ndards ore furthgr describeo in the Auditor's responsibllities forlhe audit otthe Iln8ncial statements section el our report. We are independent ol the group 8nd parent charitable company in 8ccordBnc8 Wlth the ethic81 requirements that are relevant to our oudit of the lin8nci81 statements in the UK, includlngihe FRC'S EthicBI Standard, 8nd we have lulfllled oui other ethical responsibilities in accordance with these requirement8. We bolleve ihat the gudit evidence we have obtained is sullieieni ant1 appropriatg to provide a basis for our opinlon. Con¢lu$lons rfjlstlngio golng conc•Tn In sud￿1n8 the fln8nclal 8totement$. wè have concluded thot the trustees, use of the going concern bas1¥ ot accounting In Ihe preparation of the lin8ncig1 ststémlnts IS 8pproprI81e. B￿sed on tho work w8 havé pèrtormed, we have nol identified any material uncertoint18s relstlngio eveni8 or condliions that, individu811y or ¢0118Ctlvely. may c8st significant doubt on thè group's or p8rent charitable company's abillty to continue as a golng concern lor a p9riod of at le8St Iwelve monrhs from when Ihe fin8nclal slatemenis are authorised for issue. Our responsibllttles ond the re8pon8ibllltles of ihe trustees wilh re8pect to golng eoncern are describ8d in ihe relevant sections olth58 report. Oth•r Informatlon The other informatlon comprises the inlorm81ion included in the tru5tee$' onnuol report, other th8n the flnanc181 st8tement8 and our audlior's report thereon. The irusiees are responsible forlhe Dlh8r information contained withln the Irustees, annual report. Our oplnion on the financial statemenis does not cover tho other informalion 8nd. excepl to the 8xt8nt otherwise explicitly stated in our report. we do not express any form ol assurance conclusion thereon. Our responsiblllty is to read the other information and, in doing so. Consider whether the other inlormation Is mBterially inconsisteni with the linancial staiements or our knowledge obtained in th9 course otthe audit. or otherwlse 8ppe8r8 to be materially misslated. If we identify such m8ierial inconsistencies or appareni materi81 misstatemenis, we ore required to determine whether this gives rise 10 8 material misstatemeni in the financial staiements themselves. If. based on the work WÈ hav8 pertormed. we conclude that Ihgre is a material misstatement ofthis other information, we are required to report that fact. We have nothingto report in this regard. Oplnlons on other matters pr¢$crI￿d by the CompaniesAct 2008 In our opinion. based on thework undert8ken in the course of the audit= HEDLEY FOUNDATION UMrtED REPORT OF THE AUDITOR the information gwen Sn the tnJstee8' report. vthich includes the directors. report pr8pared for the purposes ol company law. for the financial year for which the financi81 staiemants are prepared is consistent with the Inanci81 stat8m8nis- and the dlrectors. report included wilhin the trustees. report ha5 been prepared in accordance with 8ppllc8ble legal requiremen1S. Matters on vthlch w• oye r¢qulred to report by exceptlon In the light ol the knowledge and un(Jerstanding of thè 8roup and pareni ch8ri18ble company and their envlronmerbt obtained irbthe courst of Ihe audit,we have not identifie(J material misstatements in lh6 directors, report included wilhin the trust88s' annual report. Wg have nothlng to report in respect of the lollowing matters in relation io which the Compani8s Act 2006 8nd the Ch8fiiies Act 2011 rgquires u8 10 report io you if. in our opinion= adequ818 8nd suflicient accounting records have not bèèn k•pt by the porent charitable company, or raiurns adequate for our audit have nol been receNed Irom branches not visited by us- or the pareni chafltable corn￿1￿,$ flnancial statements are not In 88Teement with lh& accountlng records and returns., or certain disclosures of tTUStees' remuner8tion specrlied bylow ore not made., or we hgve not received all th8 information and explanations we require tor our audit: or the trusi8e$ W¢T¢ not entitled to take 8dvantage ot the small componi86' exemptlon in prep8rlng ihe dlrector8' report 8nd from the rtsquir¢ment io prepare a strategic report. Re8pon$lbllltles of tru¥l•o4 Ay exp18ined more lully In th* trustees. respon8ibilitlos slat8meni, the trustees Iwho are also the directors of ihe haritable comp8ny lor ihe purposes ot ¢omp8ny 18wl ar8 rasponslble for the preporatlon ot Ihe group and parent charitable company financial siazements and lor being satisfied ihat they wv8 h irue and fair vlew, and for sueh Internal control 8S the trusteés deiermln8 Is nece888ry to enibl8 the prgparotion of fin8nci81 ￿￿teMentS that 8re free trorn m8tei181 misstai8man1. whether due to fraud or error. In préparlng the 8roup 8nd parent charitablè company finonciol st￿ementS, Ihe tru3tees èr8 r88ponslble for 888essing tho group and parent charitable comp8ny's ability to continue os 0 going Concern. disclosing, 88 applic8ble, m8tters related to golng concern and using ihe golng concern b8SI8 018ccountin8 unless ihe trustees either Intend to liquid8te the group or the parent ch8rrtable company orto cease oper8tion8. or h8ve no realistic alternative but to do so. Audltor's re9ponJlbllltlo8 fortho audft of thg flnancl•l $tot•m•nts We h8ve begn appointed auditor under Ihe Comp8ni8s Acl 2006 and section 151 of Ihe Charltles Act 2011 and report In BccordAnce wilh Ihose Acis and relevant regulations mad¢ or having effect tharaunder. Our objectives are lo obt8in r8asonabl8 assurance ￿bout whether the fin8nci81 st8toments as a whole are free from m81erlaL misstatemenl, whether due to fraud or error, and to issue an auditoT's report thai Includes our opinion. Aea8on8ble assurance is a high level ol asgurance but is noi a guarantee that an audit conducted in a¢¢ordanee wlth 15A8 IUKI will 81w8ys detect 8 material misst8iement wh8n it Oxists. Misstatem8nls can arise from fraud or error and are considered material if. individually or in the 8ggreg8te. they eould reasonably be expected to influence the economic decisions of users taken on the basis of these fin8n¢ial statements. Irregularltles. includingfr8ud. are instances of non4ompliance 4Mth laws and regulations. We design procedures in line with our responsibilities. oullined 8bove, to det8ci material misstaiomenis in respect of irreguiariti&s, including fraud. Thè extent to which our procedures are capable ol detecting irregu18rilies. inclu¢Jingfr8ud is deiailed below.. We ot)iained an understandingofthe group and parent ch8ritable companyand the gector in whichthey operate io identify laws and regulations Ih81 could reasonably be expected lo have a direci effect on the fln8nc181 statements. We obtained our understanding in this regard through discussions with managemeni, sector research and application of cumulative audit knowledge and experienc8. HEDLEY FOUNDATION LIMrrED REPORT OF THE AUDITOR We determined the princlpal laws and regulatlons relevant lo the group ond parent charitable Company In ihls regard to be those arising from the Charilies Act 201 l. Companies Act 2006, Financial Aeporting Standard 102, and ro18vant employee legislation. We designed our aULlit proc6duies to 8n$ur8 th8 audrt team considered whether there were any indicalions of non-compliance by the group and parent charitaole company with those laws and regulations. These procedures included, but were not limited to enquiries ol managemeni. review ol minutes and review of legal and regul8tory correspondence. We 8180 identified the risks of material misstatèment otlhe Ilnanclal statements du8 to YT8ud. We consldered, In addltion to Ihe non-rebutt8ble presumplion ol a fisk of fraud arlslng from monagemani override of controls, that there was the potential for management bi88 in the valuation of investmant properties. We addr8ssed this through revSew of thg voluation reports prepared by managemeni's exp8rt, testing the accuracy 8nd completeness 01 inputs to thelr caiculaiion, ond challenwn8 any 8S8umptions applied in lh8 valuatlons for example by agr8ement to third party meirlcs. We also idèntified potentlal for management bias in the judgements m8d8 around rgcoverablllty of debtor¥. We addressed Ihis Ihrough examination of posi yearend cash received, reviewol corre8pon¢ence with debiofs 9nd dlscusslon ot recover8bility with managernent. We also identified potenti*l for man8gemeni blas in ihe 8llocotion of support COSIS 8g0inst ch8ri18bl8 8Ctlvlty categories. We addressed this through revi8wln8 the method used tor rg8sonablen8ss. ond re-pertorming th8 C8lculatlon to ensure It had been perlormed accurately in line wilh Ihe slated method. We 0150 identified potential lor m8n8g8ment blas in the tlming of recognition of rental Income. We 8ddress8d thls through deialled revlew of slgned ront81 ogre8mant$. forming and oxpeciatlon of the levgl of income io be recognised in the financial year, 8nd comparlson to actual. AS In allol our audlts. we addressed the riskolfraud ari8ingfiom managemontovorride ol controls by pertormlng audit procedureswhich included Outwere not limited to- the testingoljovrnals.. r8viewing8ccounting astlm8t8S for evidence ol bias; 8nd evaluating the business r8tionale of any Significant tf8nsactlons that 8re unusu81 QT ouislde the normal course ol busines¥. Because ot the Inhgrgnt limit8tions of an 8udil, there is 8 risk that we wlll not detecl 811 Irregul8ritle8. includlng those leading to a material mi$statemenl in thè lin8ncial siatements or non-complignce wth regulatlon. This rl8k incr88ses the more that compliance with a law or re8ulation is rèmoved Irom the events and trBnsactions ieflected in th8 financi81 sl&t8menis, as we will be less likely lo becom8 awaré of Instances of non-compLi8nce. The risk Is also greoter regarding irregsJ18rities occurring due to fr8u(J rather ih8n error. as fraud Involv85 inteniion81 concgalment, forgery, oollusion. omission or misrepresentation. Afuflher descrlptlon olour responslbllitieslor the 8udit of ihe flnanclal siaiem8nts Is Located on the Financial Reporting Council's websiie ai- .This descflption forms part of our auditor's report. U88 of our report rhis report 15 made solely lo thg ¢haritabl8 company's rnembers. 89 a body, In accordance wlth Chapter 3 of Pan 16 of the Companies Aet 2006 and 10 the ch8ritatJle coMpan￿S irustees. as 8 body, in accordance with Part 4 ofthe Charities (Accounts srid Reports) Regulations 2008. Our audit Work hB5 been undertaken so that wo mlght state to thg charitable company's members and trusiees those marrers we are required to state 10 them in an audiioi's report and for no other purpos8. To the fullest extent permitted by law. we do not accept or assume r8sponsibilty to anyone, Olher ih8n the charit8ble companyan¢J the charitable company's members as 8 bodyand the charitable company's trustèes as a bo*Jy. for our audii work. lor ihls report. or for thg opinions we have foimed. Alast r Duke (Senlor Statutory Auditor) Fow and on behalf of PKF Littlejohn LLP StatutoryAudilor 15 Wesrferry Circus Canarywharf London E144HD Datg: L¢ IVoJ(AL HEDLEY FOUNDATION UMrrED CONSOUDATED STATEMENT OF FINANCIAL ACTivrriES {Includlng Income and Expendlture AG¢ount) Year •nd•d 31 March 2025 Unr•strlcted Funds 2025 2024 Incom• from: lrtome from Investment properties InGome from Inveslment portfolios Other trading ￿tiVItIes- subsidiary c(Knpar488 445,932 818,676 209.452 462,171 960.412 206,850 24 Total Incom• 1,474,l￿ 1,629.433 Exp•ndlturo on: Raising lund8 Chadtsble aclfvlUe8 Other- on charltable tradk 376,986 978,295 120,415 362,248 867,802 128.280 24 Tolal Exp•ndlturo 1.475,676 1,358.330 N•t Incom• (1.616) 271.103 Net realised and unre81is&J g8ln8 on Inve81ment as88ts Net realise(l and unreall8ed galns on other Investsnent assèts Unreallsed galns on revaluation of investment Reall8ed galn on 88le of Investment pmpety 943.546 5,243,827 129.761 I356,0(￿) (535.000) 25,OLKJ 166.725 N•t Mov•m•nt In Funds 703.416 5,183,924 Fund balance8 brought forw8rd 47,246,725 42.(￿2,801 Fund balanc08 carrfod ft)nward 47,950,141 47.246,725 All of the atove resufts are derfved from continuing actlvilies. The Comp8ny and its 8ubsidiarle8 have no gains and losses other than those shown a￿¥8. In accordance with the provlstons of the C(xnpanl88 Act ￿)06, a separats Income and Ex￿ndItUre Aw)unt dealing with the results ofthe Foundation only has nol been pre6ented. The Accounllng Pol￿eS and Notes on pages 13 to 29 forn part of these Financial Ststefflents. 10 HEDLEY FOUNDATION LIMftED Company R•gistration Numbw 010185T1 CONSOUDATED AND COMPANY BALANCE SHEETS At 31 March 2025 Company 2025 2025 2024 2024 Flxed A880t8 Investment properti88 Listed Investments Investments in subsidiaries 12 8.425.OLXI 9,335.000 5,925,000 6.710.000 13 30.106,387 30.218,255 30.106.387 30.218,255 13 4.486,732 4,666.195 Otsr Inve8trnents 13 6.632.984 6,003,223 6,632.984 6.003,223 45,164,371 45.556.478 47.151.103 47.597,673 Curr•nt A•s•ts Debtor8 Cash at bank and In harKI 14 265,498 264,672 474,323 462,163 15 2.869,176 1,745,923 2.850,746 1,730,847 3.134,674 2,010.595 3.325,069 2.193,010 Crndltors: amounts falling dué vlthln one year (348.￿4) (320.348> (2.526.031) (2.543,g58) N•t Curr•nl Assetsl (Llabllftl•s) 2,785,770 1,6￿,247 799.038 (350.948) 47.950,141 47,246,725 47,950.141 47.246,725 G•n•ral Funds Charbtable fund8 Non 1mp8irTh￿nl of debtorB The Foundation makes an estimate of the re¢xJver8ble v81ue of trade and other debtorn. Wh8n a88e88lng impairnient of trade arKI other debtors, management considers fadors including the current crEdlt rating of the debtor. the ageing profile of debtors and his￿1¢81 experi8n(*. See note 14 for the net ￿rying amount of the debtors. {11) Valuatlon of Inve8tment propertle8 The Found8tlon makes an ests'mate of the falr v81ue of investment prope￿68. When 888es$ing thè falr value, the Board seeks the help of an expert in this area and ￿nSIderS, arnongst other thlngs the expeGted rental ylelds, the length of the tsmi of the lease. the valuatlon of other properties in the immediats vlclnty and the conditlon of the bulldlng. 16 HEDLEY FOUNDATION UPArrED NOTES TO THE FINANCIAL STATEMENTS Year 31 March 2025 1. Incom• from Inv￿lman1 Prop•rtl•s Company Company 2025 2024 Rentsl Income 445,932 462,171 2. Incomo from Inv•stments Group 2025 Group 2024 Income from Managed Portfollo Interest other Investmenl I￿￿me 463.320 e6.252 289.104 510.334 56,178 393,9tX) 818.676 960.412 Other Inve8tr18nt Income relate8 to irKx)me frcwn 1n¥e8tsm￿ts hekl In managed fiJnd8 outside of th8 main Investment portfolio. 3. Exp•ndltur• on Ralslng Fund8 Group 2025 Group 2024 Management of inveslmenl prowlies Invgstrnent manag8m8nt fees 159,338 217.628 169,109 193,139 376.966 362,248 4.. Analys18 of Exp•ndltur• on Charltablo AcllvHI•8 Group 2025 Total Group 2024 Total Dlr•ct Support Grant making 23.422 913.213 41.660 978.295 867,802 Prfor yoar Grant rna￿ng 23.215 798.730 45.857 867.802 17 HEDLEY FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS Y￿r ended 31 March 2025 5. Support Costs Bas18 of Invoslmont Grant Maklng Total 2025 Tt)tal 2024 Governance o)gts {nots 6) Office costs Premises & Maintenan( 71%-29% 71%-2 71%-29% 30.916 11.877 59.201 12.628 4.851 24.181 43,544 16,728 83.382 41,188 15.128 101,812 101.994 41,660 143.654 158.128 Prlor yoar 71*2V 71%-29% 71%-2 29,243 10.741 72,287 11,945 4.387 29.525 41,188 15.128 101,812 Premises 112,271 45.857 158,128 6. Gov•rnanc• Co•ts Group 2025 Group 2024 8u8in8ss Rates Insurance AccountsnGy Fe88 Profe8sion81 F888 Bank Charges 4,069 5,403 11,030 21,576 4.155 2.396 11.553 21.703 1.381 41,188 18 HEDLEY FOUNDATION UMrfED NOTES TO THE FINANCIAL STATEMENTS Year •ndod 31 March 2025 7. Analysls of Grants Grants lo Grants to Inslltutlons Indlvldu•ls Total 2025 Total 2024 Youth category grants (Y) The Disabled category grarrt3 (D) The Temiinally ill and Hospices (ETh) Othér eotsgory grants (0) 410.752 202.500 74,801 225,160 410.752 202.500 74,801 225,1eA) 372.162 182,467 73.279 170.822 913,213 913,213 798,730 No grants wèr8 pad to indivkluals in the prh)r year. Reclplents of Grants Grnnt IAaklng Total 2025 Total 2024 QEST (Queen Ellzabgth Stholar8hip Fund) ly) Other grants pald 10,1)Xl 788.730 913213 Totsl grants paid 913,213 798.730 Others gr8nts ppAd indud88 grants paKI to UK reglstsred chartles vknkh are each undef £10,(￿. 19 HEDLEY FOUNDATION UIArrED NOTES TO THE FINANCIAL STATEMENTS Year •nded 31 March 2025 8. Net Income Is slat•d oftor Charglng: Crfoup 2025 Group 2024 Auditorfs remuneration - audit - other seMce8 -18nd and buildiTrJ8 - other 22,380 7.225 61,843 21,595 6.975 61.843 Operatlng le88e8 9. Audltovs Remunerntlon AudFlorf8 rernuneratlon amounts to an audit fee of £22.380 (2024 - £21,935) and f66s payable for IXBRL tsgglng. corporalon tsx Com￿18n¢￿ and VAT c[m￿lanCe In relaoon to the Subsldiary Compan168 of £7.225 {2024- £6,975). 10. Staff Costs 2025 2024 Wage8 and 8alarle8 Soci81 secur6ty c08ts Pension ￿$ts - empqoyerfs pensk)n 149,613 150,133 7.115 1.895 3,199 1 $9,856 159.143 The average number of employees durfng th8 year. excludlng TfU8tee8, Wa8 3 (2024- 3). Th18 equate8 to a full tlme equfvalent number of 2 (2024 - 2). No amployee receiv•J totsl employee b8￿fft0 of mre than £60,O¢X) wlthln e8¢h Indlvbjual enoty of th8 group. 20 HEDLEY FOUNDATION UMrrED NOTES TO THE FINANCIAL STATEMENTS Year endèd 31 March 2025 11. Trustee•, and Koy Manag•m•nt P•r8onnd R•mun•ratlon and Exp•ns 2025 Numbor 2024 Numb•r The number of Company DI￿torS in recelpt of en￿l￿nents Payment of emoluments by the Subsldlary Companles to named Diredors (who are also Trustees of the Foundalw)n) Is made In relatlon to management and professional 8eNice8 provided to these Companies. Slr Andrew Ford is a Company Director of Fairhood ProperUe8 Llmlted for which he ig pgld a salary of £24.5¢J). Middlerigg Servlces Llmited, for whith he is paid a s818ry of£12.(M)O and Mounlb8rrow Propert198 Limited for which he is paid a salary of £29.500 per annurn. Payrnnts are approved under Chanty Commission Order 462198 on 21 Oe(xnber 1g98. The follo￿7ng Twste88' expense8 were reImk￿r8￿I or paid th'r8cUy on their behall during the year.. 2025 Numb•r 2024 Numb•r 2025 2024 Travel 238 327 The total amount of am￿0Ye9 benefft8 r9celved by key management personnel durfng the ygar w88 £80,766 (2024- £80.053). Trust C￿nSIderS Its key m8n*3ement pers￿ne1 to comprl8e ot. Mary Kltto.. Company S8crotary Lucy Janes.. Appeals Secretary Chrlsune Jan86: Financial Ac￿Untant 21 HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Y•ar end8d 31 March 2025 12. In￿stm0nt Pro￿rtIeS Group fr•ohold land and buildings 2025 Gro￿ Company Company frèohold freehold fr•ehold land and land and land and bulldlngs bulldlngs bulldlngs 2024 2025 2024 Valuatlon Al beglnnlng of year Additions at cost Dlsposal in year Capitslised Improvements (Defidtl on revaluaUon 9.335.0(X) 9.310.000 6,710.000 6,785.000 {375.0(M)) {375,0(M)I {535.OfXI) 25.000 (410,000) (75.000) At end of year 8,425.OIJ) 9,335.(XKI 5,925,(￿ 6,710,(NxJ It Should be noted that in October 2024. The Hadley Foundatlon sold a retall propety in Sallsbury whlch affectsd the Group's property valuation. The properties onginal cost Is now £10,550,188 12024 £11.750.188) {Group). and £8.425,263 (2024 - £9.625.263) (Company). The fair value of Investment propeths Is detemined by independent, professlonal valu8tlon at 31 March 2025. The valuation was undertaken by Clive Thomas of Cllve Thomas & Co Chartered survey0￿. In t￿nIUnctIOn with Robln Hanson of Brackenridge Han80n Tate, Charieted Surveyor$ and Propety Consuftants. RoLxn Han80n Is a Fellow ofthe Royal Insb'tute ofchartered Surveyors. The exercise was c8rried out on 8 'desk top" valuation bas18, which takes into consideration the bcation. the valuation of other pro￿rtIeS in the Imm6di8le vlcinity of the Ildlng, the condi15on of thè ￿￿IdIng and the exp￿￿ rental yiglds. Valuations arg und8rtaken annually. 13. Flx•d As••t Inv•8tm•nts 2025 2024 2025 2024 Group Company InY88tment In 8ubddlary undertaklngs Listed Invesbnents 0th8r Investments 4,486,732 4,666,195 30,106.387 30,218,255 30.106,387 30,218,255 6.632,984 6,003.223 6,632,984 6.003,223 36,739,371 36.221.478 41,226,103 40,887,673 Details of the 8ub8ldiary undertakings found in Nots 24. 22 HEDLEY FOUNDATION UMrrED NOTES TO ThE FINANCIAL STATEMENTS Year •nded 31 MarGh 2025 138. Flxed Asset Investmonts Company Inv•8tm•nt In Subsldlary Und•rtaklng6 V81[￿In at b8glnnlng of yoar 4,666,195 Movement in year (179.463) Valuatlon at ond of yoar 4.486,732 These Financlal Stst8m8nts incorwate Ihe resutts of all the Foundats'on's subsidiaries, which are Ilsted In Nots 23. All the subsidiariès arè incorwrated in EnglarKI & Wale3 and ar8 wholty own&J at 31 March 2025. 13b. Flxod A88•1 Inv•8tm•nt8 2025 202S 2024 2024 U•tsd Inv••lrnonts Group and Compgny Group •nd Company Market value at beginnky of year Addltlons at cost Dlsposal proceeds Net invgstment galn8 . unreallsed gain8 1 (losses) on revaluatlon - rea1188d gains on disml 30.218.255 3.417.814 14.473.228) 25,283,394 5,128,863 15,437,829} (404.989) 1.348.535 4.162,974 1.080.853 943,546 5.243,827 Mark•1 valu• at •nd of y•ar 30,106,387 30,218,255 Ust•d Inv••tm•nts 2025 2024 UK 8quIty Shares OveTreas equities 2,027.451 2.310.187 28,078.936 27.908.068 Market value of listed inveslments 30,1(A.387 30.218,255 The f8Sr value of Ilsted Invostments is delermined by ref8rert8 10 qwtod prtce for identlcal assets *) 8n active market al th6 balance sheet dats. 23 HEDLEY FOUNDATION UMrrED NOTES TO ThE FINANCIAL STATEMENTS Year ended 31 March 2025 14. Dobtors 2024 2025 2024 Group Company Amounts owed by 8ubsi￿e before gaing1{10$8as) forth6 yearended 31 M8rth 2025 amounted to £219,572. Detslls of the con801idation adju8tsnents can be found in note 24. 19. Op•ratlng L•M• Commllm•nt8- Company and Group Total fuknre mlnimum lease pa>rynents urK18r non4xrKallaL40 operaVrvJ leases are 88 follows: 2025 2024 Land and bulldlngs Land and Oth•r4 bulldlng• Oth•rn Not latsr than one year Later than one l)ut not later than flve year8 62.820 125.640 62,820 188.640 792 188.460 792 250.740 1,188 A8 at 31 March 2025 there ￿re Grant (x)mmltments of £NU. 20. R•con¢lllatlon of net Income to n•t cash Ilw from Oporatlng Actlvltl•• 2025 2024 Net In(xm9 for year Decrease l {increas8} in debtor8 Increasel Id8cr8as8) in credmors (1.616) 271,103 {826) (24,793) 28.556 24,627 N•t Cash Inilow from Op•Tallng AcUvltl•s 26,114 270.937 25 HEDLEY FOUNDATION LIMrrED NOTES TO THE FINANCIAL STATEMENTS Yèar ended 31 March 2025 21. hnslons D•fln•d contrlbulk+n pgnslon - Employer ponsion plan The Foundation operats8 8 tsfined ¢￿tributIon employer p8n8lon plan for its employ888. The amnt of o)ntrlbutl¢)ns rwnl8ed as an exp8nse durlng lh8 year was £3.200 {2024- £1.895). 22. R•lat•d Party Transactions During the year the Foundation made grant payments of £37,100 (2024 - £37.1(M)} to 712024 - 7) tharitb88 whèTr one or more of the Found8tk)n's Trusle8s also seNed as Trustees of the benthary charities.. Incomo Exp•ndltur• The Lo¢￿6 TN8t ￿rust88.. Angus Fan8haw8) At 31 March 2024 At 31 March 2025 5.300 5.300 5.300 5.250 The Phoenix Cottage Tntst (Trustee: Davld 8yam£ook) Al 31 March 2024 Al 31 March 2025 5,950 4,500 The Ravensword Trust (Trustee: Patr[(* Holcroft) At 31 M8rch 2024 At 31 March 2025 7,200 7,600 The Sant Trust (Trustee: Loma Stuttafor(l) Al 31 Ma￿h 2024 Al 31 March 2025 1,050 6,000 The Tr18tenagh Tru8t