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2025-05-31-accounts

Registered number: 00975116 Charity number: 264927

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Legal and Administrative Details 1
Directors' and Trustees' Report 2 - 6
Independent Auditors' Report to the Members 7 - 10
Consolidated Statement of Financial Activities 11
Consolidated Balance Sheet 12
Charity Balance Sheet 13
Consolidated Statement of Cash Flows 14
Notes to the Financial Statements 15 - 27

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MAY 2025

Directors and Trustees Prof. D. Harbour
Mrs S. Harbour
Mr. E. Harbour
Mr G.M. Harbour
Mr R. S. Hermer (resigned 7 July 2024)
Mr H. P. Rich
Company registered
number
00975116
Charity registered
number
264927
Registered office
1 Red Place
London
W1K 6PL
Secretary
Mr D. Abrahams
Independent auditors
HaysMac LLP
10 Queen Street Place
London
EC4R 1AG

Page 1

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

DIRECTORS' AND TRUSTEES' REPORT FOR THE YEAR ENDED 31 MAY 2025

The directors, who are also charity trustees for the purposes of charity law (the Director-Trustees), present their annual report and the financial statements of the Harbour Foundation (the Charity) for the year ended 31 May 2025. The Director-Trustees confirm that the annual report and these financial statements comply with the governing document, the Companies Act 2006, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice.

Structure, Governance and Management

a. Constitution

The Charity is a company limited by guarantee incorporated on 9 March 1970 and subsequently registered as a charity with the Charity Commission. It is governed by its Memorandum and Articles of Association (as amended by Special Resolutions passed on 20 July 1970, 17 August 1973, 23 January 1995, 3 June 1998 and 1 March 2017).

b. Method of appointment or election of Director-Trustees

The Director-Trustees are responsible for the general control and management of the Charity. Director-Trustees are appointed, elected or co-opted in accordance with the Memorandum and Articles of Association.

All Director-Trustees give their time voluntarily and receive no remuneration from the Charity. None of the Director-Trustees were reimbursed for expenses incurred on Charity business during the year.

c. Policies Adopted for the Induction and Training of Director-Trustees

Advice is sought from professional advisors where necessary to ensure that Director-Trustees are aware of and comply with current and emerging laws and regulations.

There is a formal induction process for newly appointed Director-Trustees. This includes an induction pack, an initial meeting with the Chair and the other Director-Trustees.

Director-Trustees are required to disclose all relevant interests to the Charity and withdraw from decisions where a conflict of interest arises. There is a formal conflict of interest policy in place that was last updated in 2017 and against which compliance is regularly reviewed.

d. Organisational Structure and Decision Making

The Charity’s activities are managed by the Director-Trustees, who are responsible for setting the strategic direction of the Charity and establishing policy, as well as approving grants. The Director-Trustees meet as often as is required for the effective operation of the Charity. During the year they met three times.

e. Related Party Transactions

The Charity has one wholly-owned subsidiary, Conlatuse Limited (Conlatuse), which carries out commercial activity in real estate. The distributable profits of this subsidiary are donated to the Charity on an annual basis under a deed of covenant.

During the year, the Charity received real estate and accounting services from HDG Ltd (“HDG”), a service provision company within the Harbour family business group. The Charity was not charged for the services provided to it by HDG. Conlatuse also received services from HDG during the year. Conlatuse was not charged for the services provided to it by HDG.

Page 2

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

DIRECTORS' AND TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

f. Risk management

The Director-Trustees risk management strategy provides for:

The Charity's principal activity is grant-making; as such it is not exposed to a number of risks which affect operational charities. In relation to the Charity's grant-making activities, the Director-Trustees minimise the risk of misapplication of grant moneys by checking recipients’ track record as shown by its published accounts and other available evidence. Major recipients are asked to confirm the purposes for which grant moneys are to be applied and to report back to the Charity at regular intervals. The monitoring undertaken by the Charity is proportionate to the level of the donation in question and the purpose for which the donation is made.

The Director-Trustees have prepared a formal policy on grant-making in order to ensure that funds are applied for exclusively charitable purposes also the charity predominantly makes grants to other UK registered charities.

Internal control risks are minimised by the implementation of appropriate procedures for authorisation of all transactions and projects. Risk is also managed by taking appropriate advice from specialists on activities affecting the Charity's operations, including in relation to legal and planning regulations, and investment and real estate matters.

The Director-Trustees have prepared an Investment Policy Statement which discusses the Charity’s approach to risk in more detail, which was first adopted in the year ended 31 May 2017. This policy has been kept under review since, and was formally reviewed in 2023 and confirmed to be appropriate.

The Director-Trustees also note the risks inherent in their subsidiary trading company operating in commercial real estate. This is mitigated by having directors of the subsidiary being experienced in commercial real estate and the management of real estate development and asset management. The investment policy implemented in the year also mitigates investment risk and is reviewed regularly by the Board.

Objects and Activities for the Public Benefit

In setting objectives and planning for activities, the Director-Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, and to other guidance of relevance to grant making charities.

The Charity’s activities consist of the making of grants in furtherance of its charitable objects to charitable organisations which are based in the UK or abroad.

The Charity's objects, laid down in its Memorandum and Articles of Association, are:

During the year, the Charity furthered its objects by making 44 (2024: 39) grants totalling £766,000 (2024: £672,000) to various charitable organisations and institutions registered in England and Wales.

Page 3

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

DIRECTORS' AND TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Grant Making

The Director-Trustees have a formal policy on grant-making which sets out the basis for proposing, approving, monitoring and reviewing grants made by the charity.

All recipient organisations must further the Charity’s objects and deliver a public benefit and are reviewed on a case by case basis in the light of the status of the applicant, its organisational structure and the requested purpose of the grant. One or more individual Director-Trustees research appropriate institutions or individuals to be recipients of grants, and then make recommendations to the Council for formal approval.

There is no minimum level of grant which will be awarded, with the maximum grant during the year being £240,000.

How the Charity’s Grant-Making Policy has furthered its Objects and Public Benefit

The emphasis on support for scientific and technical postgraduate training has been maintained and at the same time additional funds have been made available to assist organisations involved in poverty alleviation and positive social and cultural change.

As envisaged in last year's Annual Report, the Director-Trustees have continued the pursuit of educational charitable objects by supporting a post-graduate assistance programme available to financially restricted postgraduate students for science and medical related degrees at the two Israeli universities: the Hebrew University of Jerusalem and Ben Gurion University of the Negev.

The Charity refers to the Charity Commission’s general guidance on public benefit when reviewing the Charity’s grant making. The Charity’s grants have contributed to the following:

Financial Review

a. Investment Policy and Performance

The financial results of the Charity are shown in the attached financial statements. The net group movement in funds for the year was a surplus of £30,450 (2024: surplus £1,123,228). This includes an unrealised gain on revaluation of listed investments of £109,302 (2024: gain of £1,074,371), and a realised gain on sale of listed investments of £11,554 (2024: gain of £14,211) and a loss on foreign exchange of £198,903 (2024: loss of £100,288). The net assets as at 31 May 2025 therefore increased in value by the surplus for the year, from £20,318,740 to £20,349,190.

The Director-Trustees awarded grants with a value of £766,000 in the year (2024: £672,000).

The Charity’s wholly owned subsidiary, Conlatuse Limited, made a profit of £282,659 (2024: profit of £249,896).

Page 4

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

DIRECTORS' AND TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

The properties held by the subsidiary are held at the lower of historic cost and market value, with historic cost acting as a cap, meaning that any value increases are not reflected in the financial results.

b. Reserves Policy

The Director-Trustees assess the Charity’s requirements for reserves in light of operational requirements, planned donations and assessed risk levels. The level of reserves is reviewed quarterly by reference to management accounting information, including as assessment of cash flow projections of revenue, expenses and donations, as well as the anticipated future gift aid receipts from Conlatuse.

The balance held by the Charity as unrestricted funds at the balance sheet date was £20,349,190 (2024: £20,318,740), the majority of which remains tied up at yearend in unlisted investment assets. The level of reserves is in line with the Charity’s Policies and reflect planned donation levels and expected investment returns. Assets held for investment are held for the longer term to generate an income from which grants are to be made and constitute substantially all of reserves.

The Charity has liquid cash balances of £6,020,732 which are sufficient to fulfil its strategic plans for the next 12-18 months.

Financial and Investment Planning for the Future

Increasing revenues and ensuring more measured growth of the Charity's investments will enable the Charity to support its current grant-making activity and, where appropriate, to engage in longer term funding commitments and relationships with recipient organisations.

Funds Held as Custodian

No funds are held as custodian.

Stock asset properties

Conlatuse holds it properties as trading stock in its accounts, which are listed at the lower of market value or book cost. In the opinion of the directors of Conlatuse its properties have a market value of substantially above the carrying value in the accounts, which is verified by periodic external valuations for borrowing purposes.

Directors and Their Interests

The Director-Trustees who served during the year were: Prof. Harbour Mrs S. Harbour Mr E. Harbour Mr G. M. Harbour Mr R. S. Hermer Mr H. P. Rich

In accordance with the Articles of Association, all Director-Trustees are members of the Charity. The Charity is a company limited by guarantee and has no share capital. The Director-Trustees do not have a financial interest in the Charity. Members are required to contribute a maximum sum of £1 each in the event the Charity is wound up.

Page 5

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

DIRECTORS' AND TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Statement of Director-Trustees’ Responsibilities

The Director-Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including FRS 102. Company law requires the Director-Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charity for that period. In preparing these financial statements, the Director-Trustees are required to:

The Director-Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Provision of information to auditors

Each of the persons who are directors at the time when this report is approved has confirmed that:

In preparing this report, Director-Trustees have taken advantage of the small companies’ exemptions provided by Section 415A of the Companies Act 2006.

This report was approved by the Council and signed on its behalf by

G harbour

Mr G.M. Harbour

Date: 27 January 2026

Page 6

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR FOUNDATION

Opinion

We have audited the financial statements of The Harbour Foundation for the year ended 31 May 2025 which comprise the Charity and Consolidated Statement of Financial Activities, the Charity and Consolidated Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, 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).

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 Group 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 Group's or the 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.

Page 7

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR FOUNDATION (CONTINUED)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Directors’ and Trustees’ 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ and Trustees’ Annual Report (which incorporates the directors’ report).

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR FOUNDATION (CONTINUED)

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's and the 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 the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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:

Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and income tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in significant accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions

Page 9

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HARBOUR FOUNDATION (CONTINUED)

reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver (Senior Statutory Auditor) for and on behalf of

HaysMac LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 27 January 2026

Page 10

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MAY 2025

Note
Income from:
Other trading activities:
Commercial trading operations
Investments
Total income
Expenditure on:
Raising funds
Charitable activities:
Grants
Support costs
Total expenditure
Net (expenditure)/income before gains/(losses) and
tax
Net gains on investments
Foreign exchange losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
1,099,760
362,884
1,462,644
536,179
766,000
51,967
1,354,146
108,498
120,855
(198,903)
30,450
20,318,740
30,450
20,349,190		 Total
funds
2025
£
1,099,760
362,884
1,462,644
536,179
766,000
51,967
1,354,146
108,498
120,855
(198,903)
30,450
20,318,740
30,450
20,349,190		 Total
funds
2024
£
989,164
302,991
1,292,155
439,063
672,000
46,158
1,157,221
134,934
1,088,582
(100,288)
1,123,228
19,195,512
1,123,228
20,318,740

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

The notes on pages 15 to 27 form part of these financial statements.

Page 11

THE HARBOUR FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 00975116

CONSOLIDATED BALANCE SHEET AS AT 31 MAY 2025

Note
Fixed assets
Investments
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Unrestricted funds
Total funds		 2,540,070
227,470
7,122,067
9,889,607
(429,924)		 2025
£
10,889,507
10,889,507
9,459,683
20,349,190
20,349,190
20,349,190
20,349,190
20,349,190		 2,520,840
286,976
7,296,129
10,103,945
(563,334)		 2024
£
10,778,129
10,778,129
9,540,611
20,318,740
20,318,740
20,318,740
20,318,740
20,318,740

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 27 January 2026 and signed on their behalf by:

G harbour

Mr G.M. Harbour

The notes on pages 15 to 27 form part of these financial statements.

Page 12

THE HARBOUR FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 00975116

CHARITY BALANCE SHEET AS AT 31 MAY 2025

Note
Fixed assets
Investments
Investment in subsidiary
Loan to subsidiary
Current assets
Debtors due within 1 year
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Unrestricted funds
Total funds		 105,310
6,020,732
6,126,042
(166,461)		 2025
£
10,889,507
100
3,500,000
14,389,607
5,959,581
20,349,188
20,349,188
20,349,188
20,349,188
20,349,188		 144,934
6,205,754
6,350,688
(310,177)		 2024
£
10,778,129
100
3,500,000
14,278,229
6,040,511
20,318,740
20,318,740
20,318,740
20,318,740
20,318,740

The Charity's net movement in funds for the year was £ 30,448 (2024 - £1,123,228) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 27 January 2026 and signed on their behalf by:

G harbour

Mr G.M. Harbour

The notes on pages 15 to 27 form part of these financial statements.

Page 13

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2025

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Interest and dividends received
Proceeds from the disposal of investments
Payments to acquire listed investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2025
£
(546,423)
362,884
571,829
(562,352)
372,361
(174,062)
7,296,129
7,122,067		 2024
£
(33,583)
302,991
1,517,433
(1,529,065)
291,359
257,776
7,038,353
7,296,129

The notes on pages 15 to 27 form part of these financial statements

Page 14

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Companies Act 2006, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102 (second edition effective 1 January 2021) - (Charities SORP (FRS 102)). The accounts have been prepared under the historical cost convention unless otherwise stated in the relevant notes to these accounts.

Group financial statements

These financial statements consolidate the results of the charitable company and its wholly owned subsidiary, Conlatuse Limited, on a line by line basis. The trading results of the subsidiary undertaking are shown in note 8.

1.2 Preparation of accounts on a going concern basis

The Director-Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives Director-Trustees confidence the charity and the group remains a going concern for the foreseeable future.

1.3 Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Director-Trustees are required to make certain judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from available sources. The estimates and underlying assumptions are based on historic experience, and any other factors that are considered to be relevant, and are monitored and reviewed on an ongoing basis. Actual results may differ from the estimates made. 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.

In the view of the Director-Trustees, the following are areas where there is uncertainty, and significant judgements have been used in applying estimates;

The Director-Trustees do not consider there to be any other assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the future periods.

Page 15

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1. Accounting policies (continued)

1.4 Income

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

Incoming resources include rents receivable and interest which has been recognised over the period to which it relates. Property sale income has been recognised at the point of sale. Dividends are recognised when received. Income under deed of covenant is recognised when payment is reflected in the subsidiary’s financial statements. Donations are accounted for as received by the charity.

1.5 Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements and are included within support costs.

1.6 Stocks

Stocks comprising of trading properties are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase. At each reporting date, stocks are assessed for impairment, with any impairment loss recognised within expenditure.

1.7 Investments

Investments in listed shares are re-measured to fair value at each Statement of Financial Position date. Gains and losses on re-measurement are recognised in Statement of Financial Activity for the period.

Investments in unlisted shares, whose market value can be reliably determined, are re-measured to fair value at each balance sheet date. Gains and losses on re-measurement are recognised in the Statement of Financial Activity for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

All investments are held primarily for an investment return. There are no programme related investments.

Investment properties are included in the balance sheet at valuation, being the estimated open market value as carried out by a Chartered Surveyor with sufficient experience and expertise. The investment properties are revalued annually.

1.8 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

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

Page 16

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1. Accounting policies (continued)

1.9 Fund accounting

None of the funds are restricted. The funds can be used for charitable purpose in such manner as the Director-Trustees may determine in accordance with the charity’s objectives.

1.10 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.

1.11 Liabilities and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of fund to a third part and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.12 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.

Page 17

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1. Accounting policies (continued)

1.13 Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 18

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. Income under deed of covenant

Income is received by the charity under deed of covenant from Conlatuse Limited, a wholly owned trading subsidiary, if it has distributable profit in the year and when it has distributable reserves available.

In 2025, Conlatuse Limited declared a donation of £105,310 (2024: £69,948) to the charity under deed of covenant, fully utilising its distributable reserves.

3. Income

Rents receivable
Total commerical trading income
Dividends receivable
Interest on loan to subsidiary
Interest on bank deposits
Total investment income
Donation from subsidiary
Total donation income
Total income
Cost of raising funds
Property expenses
Bank charges and interest
Investment manager fees		 Group
2025
£
1,099,760
1,099,760
119,820
-
243,064
362,884
-
-
1,462,644
Group
2025
£
537,623
879
(2,323)
536,179		 Group
2024
£
989,164
989,164
120,425
-
182,566
302,991
-
-
1,292,155
Group
2024
£
440,946
411
(2,294)
439,063		 Company
2025
£
-
-
119,820
281,990
211,405
613,215
282,659
282,659
895,874
Company
2025
£
-
72
(2,323)
(2,251)		 Company
2024
£
-
-
120,425
294,911
165,211
580,547
249,894
249,894
830,441
Company
2024
£
-
235
(2,294)
(2,059)

4. Cost of raising funds

Page 19

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

5. Grants

The charity undertakes its charitable activities through making grants and awarded grants to a number of institutions in furtherance of its charitable activities.

Number of 2025 Number of 2024
Type
£		 Donations £ Donations £
Social Organisations 14 103,000 19 186,500
Arts 10 45,000 4 29,000
Education 7 582,000 3 403,000
Religious Bodies 4 7,000 2 4,500
Relief 7 24,000 8 39,000
Medical 2 5,000 3 10,000
44 766,000 39 672,000
Recipients of institutional grants
To fund Social Organisations:
ALLMEP (New Israel Fund) 50,000
Shoreditch Trust Donation 25,000
Other grants below £10,000 28,000
103,000
To fund Art:
Royal College Music 15,000
Eastside Education 11,500
Other grants below £10,000 18,500
45,000
To fund Education:
Ben Gurion University Foundation 330,000
British Friends Hebrew University 240,000
Other grants below £10,000 12,000
582,000
To fund Religious Bodies:
Other grants below £10,000 7,000
7,000

Page 20

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

. To fund Relief Organisations:
World Jewish Relief (Central British Fund for) 18,000
Other grants below £10,000 6,000
24,000
To fund Medical Organisations:
Other grants below £10,000 5,000
5,000
Prior year
To fund Social Organsiations:
Alliance for Middle East Peace (ALLMEP) 70,000
New Israel Fund 20,000
Community Security Trust 20,000
Solutions not Sides via One Voice Movement 20,000
British Friends Israeli Guide Dog Association 12,000
Other grants below £10,000 44,500
186,500
To fund Art:
Royal College of Music 21,000
Other grants below £10,000 8,000
29,000
To fund Education:
Ben Gurion University Foundation 200,000
Hebrew University (British Friends) 200,000
Other grants below £10,000 3,000
403,000
To fund Religious Bodies:
Other grants below £10,000 4,500
4,500
To fund Relief Organisations:
United Jewish Israel Appeal 25,000
Other grants below £10,000 14,000
39,000

Page 21

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

To fund Medical Organisations:
Other grants below £10,000 10,000
10,000

6. Support costs

Costs of governance
Audit and accountancy fees
Other support costs
Legal and professional fees		 Group
2025
£
38,190
38,190
13,777
51,967		 Group
2024
£
36,058
36,058
10,100
46,158		 Company
2025
£
15,360
15,360
8,267
23,627		 Company
2024
£
18,876
18,876
6,690
25,566

Support costs are allocated based on the activity they relate to. Neither the charity or group has any employees. The Director-Trustees did not receive any remuneration, any benefits in kind or any reimbursement of expenditure during the current or previous year. None of the Director-Trustees incurred any expenses on behalf of the charity.

7. Auditors' remuneration

Group Group
2025 2024
£ £
Fees payable to the Group's auditor and it's associates for;
The audit of the Group's and subsidiary's annual financial statements 32,800 30,360
Tax compliance services 6,675 6,375
Accounts preparation fees 7,000 6,380

8. Investment in subsidiary undertaking

2025 2024
Company £ £

The charity owns 100% of the equity shares in Conlatuse Limited, a company incorporated in the United Kingdom registered in England and Wales. The principal activities of Conlatuse Limited comprise carrying out commercial activities in properties and securities. Its registered address is 1 Red Place, London, W1K 6PL.

Page 22

THE HARBOUR FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

A summary of the results of the company's non-charitable subsidiary are given below:

9. 2025 2024
£ £
Turnover 1,099,760 989,164
Cost of sales (537,623) (440,346)
Gross profit
Administrative expenses		 562,137
(29,147)		 548,818
(21,366)
532,990 527,452
Interest receivable and similar income 31,659 17,355
Interest payable and similar charges (281,990) (294,911)
Profit for the financial year before taxation 282,659 249,896
Tax on profit/(loss) on ordinary activities - -
Profit for the financial year 282,659 249,896
Surplus/(deficit) funds brought forward - -
Donation to parent charity (282,659) (249,896)
Accumulated surplus/(deficit) funds carried forward - -
Share capital 100 100
Share capital and reserves 100 100
Fixed asset investments
Listed		 Group
2025
£
10,889,507
10,889,507		 Group
2024
£
10,778,129
10,778,129		 Company
2025
£
10,889,607
10,889,607		 Company
2024
£
10,778,229
10,778,229

Page 23

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

10. Listed investments

At 1 June 2024
Additions
Disposals
Realised gains
Unrealised gains
At 31 May 2025		 Group
2025
£
10,778,128
562,352
(571,829)
11,554
109,302
10,889,507		 Group
2024
£
9,677,914
1,529,067
(1,517,433)
14,212
1,074,369
10,778,129		 Company
2025
£
10,778,128
562,352
(571,829)
11,554
109,302
10,889,507		 Company
2024
£
9,677,914
1,529,067
(1,517,433)
14,212
1,074,369
10,778,129

The listed investments are shown at fair market value. Listed investments of £10,889,507 (2024: £10,778,129) are quoted on stock exchanges outside the United Kingdom.

Under FRS102, unlisted investments are to be shown at fair market value if available, otherwise at cost less accumulated impairment. The unlisted investments are stated at cost on this basis, and in the directors' opinion the fair value of unlisted investments is not less than cost.

During the current year the director- trustees reassessed the purpose for holding the listed investments nd considered that these would be better presented as fixed not current assets due to their intention to now hold the investments for the long term.

11. Trading Properties

Group Group
2025 2024
£ £
Trading properties stated at cost 2,540,070 2,520,840

Page 24

THE HARBOUR FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

12. Debtors

Amounts falling due after one year:
Amount due from subsidiary
Amounts falling due within one year:
Amount due from subsidiary
Other debtors
Prepayments and accrued income
13.
Cash
Cash at bank
Held by investment managers		 Group
2025
£
-
-
55,920
171,550
227,470
Group
2025
£
6,713,311
408,756
7,122,067		 Group
2024
£
-
-
40,000
246,976
286,976
Group
2024
£
7,018,993
277,136
7,296,129		 Charity
2025
£
3,500,000
105,310
-
-
3,605,310
Company
2025
£
5,611,976
408,756
6,020,732		 Charity
2024
£
3,500,000
144,934
-
-
3,644,934
Company
2024
£
5,928,618
277,136
6,205,754

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals
Deferred income		 Group
2025
£
104,142
63,508
143,478
99,231
19,565
429,924		 Group
2024
£
98,946
48,055
291,471
53,311
71,551
563,334		 Charity
2025
£
-
-
140,000
26,461
-
166,461		 Charity
2024
£
-
-
282,000
28,177
-
310,177

Deferred income comprises rent received in advance.

Group 2025 £

Page 25

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

14. Creditors: Amounts falling due within one year (continued)

Deferred income at 1 June 2024
Resources deferred during the year
Amounts released from previous periods
At 31 May 2025		 Group
2025
£
71,551
19,565
(71,551)
19,565

15. Members' liability

The Harbour Foundation is a company limited by guarantee and has no share capital but under the terms of the Memorandum of Association, every member is liable to contribute a sum not exceeding £1 in the event of the company being wound up during the time he or she is a member or one year thereafter. At 31 May 2025 there were 6 members (2025: 6 members).

16. Operating lease commitments

At 31 May 2025 the charity and group had no annual commitments under non-cancellable operating leases (2024: none).

17. Related party transactions

Company

The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 1A from the requirement to disclose transactions with group companies of which it is part of that have been eliminated on consolidation.

Charity

During the year, the charity made a donation of £330,000 (2024: £200,000) to the Ben Gurion University Foundation which shares a trustee, Gideon Harbour, with this entity. The donation was made to support any students in need. Gideon disclosed his involvement in the university during the board meeting and it was resolved by the rest of the board.

Page 26

(A Company Limited by Guarantee)

THE HARBOUR FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Unrealised losses/(gains) on listed investments
Realised losses/(gains) on listed investments
Interest and dividends receivable
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Foreign exchange losses
Net cash used in operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
20.
Analysis of changes in net debt
At 1 June
2024
£
Cash at bank and in hand
7,296,130
7,296,130		 Group
2025
£
229,353
(109,302)
(11,554)
(362,884)
(19,230)
59,507
(133,410)
(198,903)
(546,423)
Group
2025
£
7,122,067
7,122,067
Cash flows
£
(174,063)
(174,063)		 Group
2024
£
1,223,516
(1,074,371)
(14,211)
(302,991)
(51,020)
(156,165)
441,947
(100,288)
(33,583)
Group
2024
£
7,296,129
7,296,129
At 31 May
2025
£
7,122,067
7,122,067

Page 27