THE VERNON EDUCATIONAL TRUST LIMITED ANNUAL REPORT 2025
**Vernon Educational Trust Limited Company No. 01194206 Registered in England Charity No. 269433**
1
## CONTENTS
|Reference and contact information|3|
|---|---|
|Strategic Aims and Objectives|4|
|Structure, governance and management|9|
|Operational review and performance|16|
|Statements as to disclosure of information to Auditors|20|
|Independent Auditors Report|21|
|Consolidated Statement of Financial Activities|25|
|Consolidated Balance Sheet|26|
|Charity Balance Sheet|28|
|Consolidated Cashflow Statement|30|
|Notes to the Financial Statements|31|
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
2
## REFERENCE AND CONTACT INFORMATION
## **Key Officers**
R Brown (Apr 2024–Dec 2024) Interim Head A Murfin (Jan 25 – Mar 25) Interim Head
C Baty (appointed 1 Apr 2025) Head E Tonnard (Apr 2022 – Sep 2025) Company Secretary and Clerk to the Governors (also Director of Finance and Strategy for Danes Hill School)
## **Principal Address and Registered Office**
Danes Hill School, Leatherhead Road, Oxshott, Surrey, KT22 0JG
Telephone:
## **Auditors**
Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW
01372 842509
Email:
head@daneshillschool.co.uk
Website:
www.daneshillschool.co.uk
## **Bankers**
Lloyds Bank plc 25 Gresham Street London EC2V 7HN
## **Solicitors**
VWV 24 King William Street London EC4R 9AT
## **Insurance Brokers**
Endsleigh Insurance Services Limited The Quadrangle Imperial Square Cheltenham GL50 1PZ
**THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025**
3
## THE VERNON EDUCATIONAL TRUST LIMITED ANNUAL REPORT OF THE COUNCIL OF MANAGEMENT YEAR ENDED 31 AUGUST 2025
The Council of Management (‘Council’) presents its report and the consolidated financial statements of The Vernon Educational Trust Limited (‘Trust’) for the year ended 31 August 2025. This is prepared in accordance with the Companies Act 2006 and the Charities Act 2011 and includes the Directors Report and Strategic Report, together with the consolidated financial statements for the year. The Council confirm that the latter comply with the requirements of the Companies Act 2016, the Company’s Memorandum and Articles of Association and the Charities SORP 2019 (FRS102)
•
-
## STRATEGIC AIMS AND OBJECTIVES
The Vernon Educational Trust aims to provide a broad-based education, with sufficient support and resources available for those at both the stronger and weaker ends of the spectrum to achieve their full potential.
Danes Hill children are also encouraged to take every opportunity to develop sporting, musical, dramatic and other nonacademic talents and interests.
-
-
-
The school aims to guide children so that they become independent and confident individuals who enjoy succeeding and making a contribution to both the school and the wider community.
Children are expected to have the fullest possible involvement in the life of the school.
Pupils are always encouraged to be tolerant and supportive of others, and there is a strong emphasis on charitable giving and fundraising which might range from support for an individual child’s fund-raising efforts, to a major event such as a sponsored walk, involving the whole school.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
4
AIMS OBJECTIVES AND VALUES ,
## Growth
Pupils can demonstrate Growth by – working hard, giving their best effort, investing in their own development, being active in the development of those around them, expanding their horizons, nurturing their community.
## Passion
Pupils can demonstrate Passion by – being inspired, showing curiosity, showing ambition in all they do, striving to succeed, showing dedication in all things and not giving up.
## Courage
Pupils can demonstrate Courage by – developing the confidence to take risks, trying new things, not being afraid to fail, speaking up for themselves and for others, telling the truth.
## Respect
Pupils can demonstrate Respect by – having an awareness of others as well as themselves, treating everyone with dignity, showing others kindness and consideration, showing others empathy.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
5
## STRATEGIC AIMS AND OBJECTIVES
## Charitable Objects
The objects of the Trust, in accordance with its Memorandum of Association, are to advance the education of children and adults by the provision of day nurseries, pre-preparatory schools, preparatory schools, secondary schools and tutorial Schools. Currently the Trust governs Danes Hill School, offering nursery provision, pre-preparatory and preparatory education. In the past the Trust has operated other educational establishments and has reviewed opportunities to acquire additional schools. The Trust continues to explore and consider new ways of achieving its objects.
In the furtherance of these objects the Council, as the charity trustees, have complied with the duty in s.4 of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.
## Objectives for 2024/2025
The Trust's primary objective at Danes Hill School continues to be the education and development of each individual pupil to reach their individual potential. This is through marked academic excellence and a plethora of extra-curricular opportunities to stimulate and engage young minds. ensuring that on leaving they will be able to gain entry to and fully benefit from an education at their chosen senior school.
This is achieved through ensuring the School maintain strong teacher-to-pupil ratios that support every child with quality-first and innovative teaching as well as offering an extensive curriculum for more able children and the right individualised support for those that need it.
## **Strategic aim**
The Trust’s strategic aim is to provide leading co-educational schooling in the UK, ensuring every pupil reaches their own potential.
We want to ensure we widen demographic access to our prep school to have an authentically mixed school population. This not only enriches our school but also transforms lives by offering a premium independent education to talented pupils.
## **Principal activity**
The Trust’s principal activity continues to be the provision of a premium, contemporary and balanced non-selective education for boys and girls aged between 2 and 13.
The Trust has been successful in developing and ensuring grounds and facilities are maintained to the highest standard, focusing on safety and enjoyment of the natural beauty surrounding the school.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
6
## Public Benefit
The Trust is proud of its contribution towards public benefit and works to make a difference in our local community and the wider world. The Trust looks to utilise its assets for the use of the community where appropriate; however it is restricted to core hours, outside of which the facilities are not available for use due to planning restrictions.
## A Danes Hill School education
**The school educates approximately** 620 pupils
**from a large geographical area in Surrey and South West London.**
The children study a broad range of subjects with the objective of getting them ready for their chosen senior school and to lay the foundations for a fulfilling adult life where they can become active citizens in their own communities.
## Transformative education for talented pupils
The Trust continues to grant a number of transformative bursaries to deserving pupils under its Bursary and Financial Assistance Policy. These are means tested and the criteria for these bursaries are determined by the Council and are applied in conjunction with the Financial Assistance Working Party. The value of these benefits amounted to £350,611 (2024: £ 702,521) which is equal to 3.0% (2024: 5%) of tuition fees.
## Working towards a sustainable future
The decisions we make are for the sustainable future of the School and the wider world, so that we support our future generations.
Our sustainability aims can be summarised as follows:
To ensure our environmental footprint is considered in all our decision-making
To ensure long-term sustainability in all areas of school life, including our financial strategy and our regulatory compliance.
To ensure we encourage our suppliers to consider their carbon footprint.
## Working with our colleagues in the State sector
The school is also an established ECT (Early Career Teachers) Network Centre for teachers from other schools. A fully comprehensive staff development programme is in place which enables graduates to obtain “Qualified Teacher Status” (QTS) through our Graduate Training Programme (GTP). The schools Monday twilight programme is attended by colleagues from the state sector, as part of our partnership work. Staff from other schools join CPD pathways focusing on SEN, Leadership, Curriculum and Digital Skills
The school’s facilities were shared with The Royal Kent School (a C of E primary school within the Oxshott Community) during the summer term. The children used the sports facilities, the Science and Design and Technology classrooms and equipment and were provided with lunch. The Royal Kent School used the swimming pool throughout the year for their weekly swimming lessons.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
7
## Local Community Fundraising
The school interacts with a large number of communities and educates the children about what their roles are and why they are so important. Developing young people who have both a sense of understanding and compassion for others is an essential part of the mission at Danes Hill School.
The philanthropic ethos of the school is very strong with three nominated charities benefitting from the energetic fundraising initiatives of the children, staff and parents.
Last academic year, funds were raised for: Sight for Surrey (a local entity that provide highly specialist support for people with sensory loss in Surrey) , Toki Music School on Easter Island (the Music and Arts School is an educational community, part of an NGO TOKI Rapa Nui, where a cultural-educational programme is developed to empower children and youth, provide them with opportunities for expression), and Shooting Star Children’s Hospices (supporting children with life-limiting conditions).
Both staff and children are united when planning and delivering events throughout the year, which included Santa Dashes, sporting activities, pianothon, sponsored read, Charity and mufti days.
The Harvest Festival at the start of the year collected food donations for the Cobham Food Bank and "Hello Yellow Day" raised funds to support Children's Mental Health Week.
The Year 7 and 8 children pack food hampers for the Oasis Christmas Hamper Appeal during the last week of term. Staff and children prepare hampers ready to be delivered to vulnerable families over the Christmas period.
In April 40 children participated in the TCS Mini London Marathon running in support of The Shooting Star Children’s Hospice and were joined by Mr Dormer, Pre-Prep PE Teacher & Forest School Lead, running the full 26.2 miles. Shoes were collected in the summer term in support of ‘Runmore with Ranmore’ an initiative to send outgrown shoes to deprived communities in South Africa.
The school also works with the local community in a variety of ways and additional fundraising events might take place in the form of cake sales, Christmas shoeboxes, clothing collections and donations to the local food bank after Harvest Festival.
Danes Hill strives to deliver new exciting events to motivate and encourage the whole community to think of others and raise money for invaluable charities who support children and their families.
The Friends of Danes Hill, who are run by a dedicated key parent Committee with several additional parent representatives across the year groups, work tirelessly in organising several events over the year to raise monies for the school, which have most recently funded the purchase and installation of table tennis tables for the children and playground equipment.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
8
## STRUCTURE, GOVERNANCE AND MANAGEMENT
## Charity and Legal Status
The Council administers the Trust which is a registered charity as detailed on page 1. The legal status of the Charity is a company limited by guarantee, without share capital. The Council members are also the Directors of the company. The liability of each of the members of the company is limited to an amount not exceeding £1. The names of the Members of the Council who have held office from 1 September 2024 to the date of this report unless otherwise stated are shown on page 12-13.
In addition, the Council members act as Governors of Danes Hill School (the School), which is fully owned by the Trust.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
9
## STRUCTURE, GOVERNANCE AND MANAGEMENT
## Governing document
The Trust is governed by its Memorandum and Articles of Association, last amended on 31 October 2024.
## Governing body
Members can serve a term of 3 years and are eligible for re-election twice, allowing them to serve a maximum of nine years. After a governor has served three consecutive terms in office they are eligible for reelection only after a year has elapsed since they retired as a governor, unless the Board considers it would be in the best interests of the Charity for a governor to be eligible for re-election on their retirement for one further term of three years. The Council is authorised to appoint new members to its number provided it does not exceed the maximum (15) prescribed by the Articles of Association. A Nominations working group exists to deal with the appointment of new Council members.
## Organisational management
The Council meets at least three times a year to determine general policy and review the framework of management and control for which it is legally responsible. The detailed proposals are formulated by four of the standing committees, namely the Education Committee, the Welfare Committee, the Finance and Operations Committee and the People, Governance and Risk Committee, which make recommendations to Council. These Committees meet prior to Council meetings and on other occasions as necessary to review the business of Council, including strategy, the budgets and the annual report and accounts.
The day-to-day running of the School is delegated to the Head and the Senior Leadership Team in accordance with the delegated powers protocol. Remuneration is set by Council, with the policy objective of rewarding fairly and responsibly collective contributions to the school’s successes.
## Recruitment and training of Council members
New Council members are elected at a General Meeting on the recommendation of the Nominations working group. In making these nominations, account is taken of eligibility, personal competence, specialist skills and availability. New members are inducted into the workings of the Trust, and also of the Company as a registered charity, including Board Policy and Procedures, by the Chairman, the Company Secretary and the Head. Appropriate external training on governance, safeguarding and other relevant matters is offered to Council members.
_30_ Pupils were awarded scholarships in prestigious senior schools.
The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the school remains sensitive to the broader issues of pay and employment conditions elsewhere.
Delivery of the Trust’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.
**THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025**
10
## Charity Governance Code
The Council are satisfied that the Charity applies the principles of the Charity Governance Code within its current Governance arrangements.
## Group structure and relationships
The Trust has two wholly owned non-charitable subsidiaries, Danes Hill Trading Limited and Brinlay Limited, both of which are currently dormant.
The governing body undertook a skills audit of the Council as a whole, and this highlighted areas of expertise which could be strengthened by specific representation on the Council. This has informed and will continue to inform the work of the Nominations working group.
The school is a member of the Independent Association of Preparatory Schools (IAPS), the professional organisation for promoting and maintaining preparatory school standards. It is also a member of the Association of Governing Bodies of Independent Schools (AGBIS) and the Independent Schools Bursars Association (ISBA).
In addition, following its adoption of the AGBIS governance code as well as an additional VET governance code, the Nominations working group is also taking positive action in its search, evaluation, and selection of new trustees to ensure that its membership reflects diversity in its broadest sense.
## Fundraising
The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
_By actively seeking a range of perspectives resultant from diversity of culture, demographics, skills, experience, race, age, gender, educational and professional background, the Council will be best placed to overcome challenges, improve the Charity’s performance, and support good decision making._
**THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025**
11
## THE COUNCIL MEMBERS' COMMITTEE MEMBERSHIP IS LISTED BELOW
The Council of Management (‘Council’) of The Vernon Educational Trust are the school’s charity trustees under charity law and the directors of the charitable company. The members of the Council who served in office during the year and subsequently are detailed below.
||**Appointed**|**Role**|**Finance**
**and**
**Operations**
**Committe**|**Education**
**Committee**|**People,**
**Governance**
**and Risk**
**Committee**|**Welfare**
**Committee**|**Nominations**
**Working**
**Group ***|
|---|---|---|---|---|---|---|---|
|Mr K C
Ntumba|Appointed
21 March
2024|Chair|*|*|*|*|*|
|Mr I Hunt|Appointed
1 November
2012|Deputy
Chair and
Chair of
Education
Committee|*|*|*|*|*|
|Mr J
Raymond|Appointed 1
January
2023|Chair of
Finance and
Operations
Committee|*||||*|
|Dr M
Bach|Appointed 5
December
2024|||*|*||*|
|Mr T
Jones|Appointed 13
November
2014
Resigned 1
December 2025|Chair of
People,
Governance
and Risk
Committee
|||*||*|
|Mrs C
Charles|Appointed 1
January
2024|||*||*|*|
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
12
## THE COUNCIL MEMBERS' COMMITTEE MEMBERSHIP IS LISTED BELOW (CONTINUED)
||**Appointed**|**Role**|**Finance**
**and**
**Operations**
**Committe**|**Education**
**Committee**|**People,**
**Governance**
**and Risk**
**Committee**|**Welfare**
**Committee**|**Nominations**
**Working**
**Group ***|
|---|---|---|---|---|---|---|---|
|Mrs S
Price|Appointed 5
December 2024||*|*|||*|
|Mr O
Kabongo|Appointed 22
April 2025||*|*|*||*|
|Mr D
Tiller|Appointed 1
September
2022|||||*|*|
|Mr G R A
Davies|Appointed 1
January 2023|||*|||*|
|Mr J
Cohen|Appointed 26
June 2025||||||*|
|Ms L
Leslie-
Miller|Appointed 21
March 2024||||*||*|
|||||||||
|*The Nominations working group is convened when New Trustee applications are submitted to the Chair of
Governors. All Trustees can be called upon, depending on their background and experience, or availability,
to do first and second round interviews.
During the year the activities of the Council were carried out through the committees described above. The
membership of these committees is shown above for each member of Council.||||||||
*The Nominations working group is convened when New Trustee applications are submitted to the Chair of Governors. All Trustees can be called upon, depending on their background and experience, or availability, to do first and second round interviews.
During the year the activities of the Council were carried out through the committees described above. The membership of these committees is shown above for each member of Council.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
13
## GOVERNORS
The VET has a very active board of governors, each of whom contributes valuable knowledge gained throughout their diverse careers.
Cedric Ntumba, Chair
Claudette Charles
Gareth Davies
Ian Hunt, Deputy Chair
Dan Tiller
Joel Cohen
Not only do we benefit from the experience of a number of current and previous independent school heads, but the expertise of the board is further enhanced by members who have a variety of commercial and other relevant backgrounds for the governance of an independent school and Charity .
The Full Governing Board – known as Council – meets once a term to discuss and decide on key issues. In addition; there are termly meetings of each subcommittee as well as working groups, consisting of relevant governors, school SLT and optional external experts, who discuss pertinent issues facing the sector or school.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
14
## GOVERNORS CONTINUED
John Raymond
Matthew Bach
Lindsay Leslie-Mller
Oliver Kabongo
Chair of the Governors Mr Cedric Ntumba chair@daneshillschool.com 01372 842509
Address:
Danes Hill School FAO: Chair of Governors Leatherhead Road, Oxshott, KT22 0JG
Sam Price
Tim Jones
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
15
## OPERATIONAL REVIEW AND PERFORMANCE
## Review of the Year
Mr Richard Brown, left the school in December 2024 and was replaced by Mr Andrew Murfin, who took up interim leadership of the school in January 2025. Colin Baty joined the school as the new permanent Head in April 2025.
Elev8 is more than just a curriculum enhancement; it is a transformational approach to education, developed to empower and inspire. Elev8 is designed to complement academic learning by developing competencies that encourage confidence, resilience and adaptability in an ever evolving world
Danes Hill School continues to be the major asset of the Vernon Educational Trust. Whilst children applying for places in Year 2 and above sit a basic assessment in literacy and numeracy, the school is gently selective, ensuring all children admitted are able to thrive in the vibrant environment and life of the school. The School very much prides itself on its all-round ethos and tradition of producing well rounded, articulate and confident individuals, who have a sense of purpose, zeal for life and determination to make the most of all that the School has to offer.
The curriculum continues to be developed and updated, to be exceptional in its breadth, depth and balance and it has enabled a wide range of skills and talents to be deployed. There is a highly inclusive ethos where excellence across academic, artistic and sporting domains is expected, valued and much celebrated. Once again, for the academic year 2024/25, 30 scholarships were awarded to pupils in sports, DT, music and academia by some of the top independent schools in the country. These outstanding achievements bear eloquent testimony to the enthusiasm and industry of the pupils but also the skill and commitment of the teaching staff throughout the school. Overall academic performance of pupils over the year has been commendable.
This year saw the launch of our new Elev8 and Ignite Curriculum. We believe in more than just education-we are passionate about igniting a genuine love of learning in every child. That’s why we’ve developed the Ignite Curriculum—a dynamic and forward-thinking programme purpose-built for pupils in Years 2 to 5.
This innovative curriculum is designed to spark curiosity, build confidence, and empower young minds to explore, question, and thrive. Ignite goes beyond traditional learning, offering children exciting opportunities to discover their passions and develop the skills they need for a bright and inspired future.
In the classroom, pupils across the school have worked hard and enjoyed success in various subjects. There have been a high number of Scholarship and Exhibition awards, 30 in total, at both 11+ and 13+. 62 pupils in Year 6 sat senior schools pre-tests, with 97% receiving an offer to at least one of their chosen senior schools.
All pupils are encouraged to participate in a wide range of sports, including athletics, cricket, cross-country, rugby, football, golf, hockey, netball, skiing, gymnastics, swimming and tennis. The girls' senior teams all play hardball cricket, and a number of fixtures have mixed teams. Facilities include a full-size all-weather AstroTurf, state-of-the-art double Sports Hall with climbing wall, and heated swimming pool which are used when hosting a plethora of tournaments and fixtures, including IAPS events. Under the management of the Director of Sport, the Games and PE programmes continue to be developed, which includes the provision of fundamental and squad sessions to better cater for the needs of all pupils, a restructuring of areas of responsibilities with staff leading least one core sport and greater external celebration of our successes. The Royal Kent School were able to gain and develop swimming skills through regular use of the school pool again last academic year.
Drama and Music continued to go from strength to strength as all pupils are offered extensive provision, both inside and outside of the classroom to develop their talents. Both have full calendars for the academic year, which includes concerts, Teatime Drama performances and the traditional events for both Christmas and the Summer terms. Overseas music tours for the Chamber Choir take place every year and the Drama department are heading off to Luxembourg for the Shakespear Schools Festival (with pupils in Years 5 & 7). We continue to have a thriving team of peripatetic staff with many pupils learning musical instruments and taking LAMDA lessons. This year there will be productions for Years 1, 2, 4, 6 and 8, and a Christingle for Y3, meaning that pupils in all year groups have a outlet for their dramatic endeavours.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
16
## Strategic report and financial review
The financial statements are prepared under the historical cost convention on the going concern basis and in accordance with applicable UK accounting standards. In preparing the financial statements, the Trust follows best practice as set out in the Charity SORP 2019 (FRS102) and complies with the Companies Act 2006. The Trust’s principal accounting policies are set out in note 2 to the financial statements. The group financial statements consolidate the financial statements of the Trust and its wholly owned subsidiary undertakings on a line-by-line basis.
## Investment policy
In accordance with the Trust’s treasury policy, shortterm deposits are invested to fulfil the Trust’s future capital expenditure objectives and to provide funds, which will generate income for educational awards.
The Trust has two subsidiary companies which were both dormant during the period. Details of these and their financial performance for the year are given in note 14 to the financial statements.
## Risk management
The results for the year for the Trust are summarised as follows:
|||2025|2024|
|---|---|---|---|
|||£’000|£’000|
||(Deficit)/Surplus before|(649)|395|
||depreciation|||
||Depreciation of Fixed Assets|(1,081)|(1,134)|
||Deficit after Depreciation|(1,730)|(739)|
The 2025 financial performance was affected by the introduction of VAT on fees from 1 January 2025, withdrawal of Business Rates relief and increases in National Insurance contributions from April 2025. The Trust held reserve balances which have enabled Governors to take time to work towards a future sustainable financial model in a managed way.
## Reserves policy
Council’s policy is to achieve Free Reserves sufficient to avoid the school having to utilise its overdraft facilities in the normal course of its activities.
The Trust had total unrestricted reserves of £32.9m (2024: £34.7m) at the year-end. Free Reserves are calculated as unrestricted funds, less amounts invested in tangible fixed assets and designated funds plus any loans taken to procure fixed assets. Free reserves included in the charity's accounts are £6.35m (2024: £6.36m).
The Council, with assistance from the Finance and Operations Committee, has reviewed the principal areas of the Trust’s operations and considered the major risks faced in each of these areas. In the opinion of the Council, the Trust has established resources and a review system which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day-to-day operation. The school maintains a Risk Register which the Council and SLT review regularly, in which key risks that have been identified include the following:
- Safeguarding failure, mitigated by weekly pastoral meetings, ever maturing pastoral structure, whole school approach and oversight from a Safeguarding governor and full board, fully trained.
- Eco-political risks, taxing and regulatory changes. This is mitigated by professional body and external advisors, thorough forecasting which is stress tested, cash flow forecasting and reviewing additional income streams.
- Ensuring the financial health and prosperity of the School, to keep student numbers at levels that allow the School to invest in improving its buildings and facilities. This is managed by the financial controls, regular internal financial reviews and the Finance and Operations Committee and by full governing body.
- AI and Cyber security risks, mitigated by horizon scanning, policy and procedure review on a regular basis, external stress testing and external advice and insurance.
The Trust’s policy is to ring-fence one term’s worth of operating expenditure, approximately £4m, as working capital reserves. The level of free reserves held are a
little higher than in this policy. However, in view of the uncertainty within the sector and recent deficits the Governors are satisfied that this level is appropriate to meet short term operational needs and future site development.
**THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025**
17
## Future plans
The plans for future periods include:
In order to achieve these, the following strategies are in place:
- To continue to support accessibility to the School for all pupils capable of engaging with the education at the School irrespective of the wealth of their parents.
- To continue to stretch and challenge all pupils academically irrespective of their level of ability.
- Continued development of Danes Hill School’s assets.
- To provide continuing support of pupils who will benefit from the School’s education through scholarships and means tested bursaries.
- To give children the chance to move on to a large and varied range of Senior schools.
To continue to innovate the curriculum in a way that pupils can embrace and that delivers necessary life skills, including AI and emotional intelligence.
To continue to provide and seize opportunities to engage with the community in a meaningful way and through this to ensure staff, parents and pupils have an appreciation of the world around them and the difference they can make.
- To continue to ensure financial stability in a time unprecedented in the independent school sector.
- To retain high performing staff and provide them with developmental training and support.
Although the Trust currently operates only one school the Council members are aware that the objects, as stated in the Memorandum of Association, permit a wider involvement in education. They have and will in the future consider opportunities when they arise.
- To continue to develop the site as and when required.
- Dedicated staff resources aimed at providing support to both children who are underachieving and to scholars.
- Investment in the School's educational, pastoral and social spaces to continue to provide an environment to attract high performing pupils.
- Continuation of existing work with the community and local state primary schools.
- Thorough induction of new members of Council and committee members.
- Continuation of strong control environment, cash flow forecasting and early liaison with banks and pension trustees to ensure funding is available when needed.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
18
Sustainability
Danes Hill has a detailed sustainability plan with clear targets and priorities
Sustainability for the Trust means reducing our carbon emissions to as low as practically possible and offsetting what is left. The majority of our emissions come from our energy usage, food, and transport. Our sustainability plan identifies areas where we aim to reduce our emissions as well as engaging students, parents and the staff body in more sustainable projects and activities.
In 2022, Danes Hill School set up a sustainability committee, focusing initially on developing a sustainability plan, and then to create an implementation plan. The School started drawing energy from its solar panels and used its attenuation tank to water the sports fields. In 2024, the school deepened its work with the Oxshott Net Zero community team to help reduce carbon in the community, and hosted repair cafes. The school saw more solar power yield and invested in greener spaces. Planning is also underway for electrical charging points as well as a Staff Electrical Car scheme.
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
19
## STATEMENTS AS TO DISCLOSURE OF INFORMATION TO AUDITORS
## Going Concern
The Board of Trustees has reviewed The Vernon Educational Trust's activities, financial position and risk management policies together with factors likely to affect future development, including the impact of economic uncertainty and changes within the sector. Mindful of recent deficits and the level of free reserves, budgets and forecasts covering the period to 31 August 2027 have been reviewed including stress tested scenarios. The trustees are satisfied that there are no material uncertainties surrounding the Trust's ability to continue as a going concern and the financial statements have been prepared on that basis. Measures to ensure the trust remains financially sustainable in the long-term are being developed and will be progressed through 2025/26.
## So far as each member of Council is aware at the time the report is approved:
- There is no relevant audit information of which the charity’s auditors are unaware, and
- Each member of Council has taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## Auditors
Crowe U.K. LLP have signified their willingness to continue in office and will be deemed reappointed.
## Responsibilities of the Council
Company law requires the Council to prepare financial statements for each financial year. Under that law the Council has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Council must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the Trust and of the surplus or deficit of the Trust for that period. In preparing these financial statements, the Council is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principals in the Charities SORP 2015 (FRS102);
- make judgements and estimates that are reasonable and prudent;
- comply with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Council is 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 it to
ensure that the financial statements comply with the Companies Act 2006. It is 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 the Council (including in their capacity as company directors approving the Strategic Report contained therein) on 1[st] April 2026 and signed on its behalf by
K C Ntumba
THE VERNON EDUCATIONAL TRUST ANNUAL REPORT 2025
20
## **THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VERNON EDUCATIONAL TRUST LIMITED**
## **Opinion**
We have audited the financial statements of The Vernon Educational Trust Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated 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).
In our opinion the financial statements:
- give a true and fair view of the state of the Trust's and of the parent charitable company's affairs as at 31 August 2025 and of the Trust's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 21
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VERNON EDUCATIONAL TRUST LIMITED (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic 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:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Page 22
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VERNON EDUCATIONAL TRUST LIMITED (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 Trust'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 Trust or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below:
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charities SORP (FRS 102), and tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the group’s ability to operate or to avoid a material penalty.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We also considered the opportunities and incentives that may exist within the group for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within potential management override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance, Development and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.
Page 23
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VERNON EDUCATIONAL TRUST LIMITED (CONTINUED)**
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
## **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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Daniel Haines (Senior statutory auditor)**
for and on behalf of
**Crowe U.K. LLP** Statutory Auditor 55 Ludgate Hill London EC4M 7JW
> Date: 15 April 2026
Page 24
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Income from:**
Charitable activities
4
Investments
5
Other income
**Total income**
**Expenditure on:**
Raising funds
6
Charitable activities
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
18
Net movement in funds
**Total funds carried forward**
18|**Unrestricted**
**funds**
**2025**
**£000**
**12,979**
**486**
**16**
**13,481**
**200**
**15,011**
**15,211**
**(1,730)**
**34,697**
**(1,730)**
**32,967**|**Total**
**funds**
**2025**
**£000**
**12,979**
**486**
**16**
**13,481**
**200**
**15,011**
**15,211**
**(1,730)**
**34,697**
**(1,730)**
**32,967**|_Total_
_funds_
_2024_
_£000_
_13,645_
_431_
_3_
_14,079_
_160_
_14,658_
_14,818_
_(739)_
_35,436_
_(739)_
_34,697_|
|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 31 to 54 form part of these financial statements.
Page 25
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 01194206**
## **CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
14
Debtors
15
Short term deposits
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due within one
year
16
**Net current liabilities**
**Net assets excluding pension liability**
Defined benefit pension scheme liability
23
**Total net assets**|**11**
**4,091**
**1**
**571**
**4,674**
**(5,286)**|**2025**
**£000**
**26,622**
**7,588**
**34,210**
**(612)**
**33,598**
**(631)**
**32,967**|_18_
_3,081_
_1,127_
_710_
_4,936_
_(7,020)_|_2024_
_£000_
_27,750_
_9,293_
_37,043_
_(2,084)_
_34,959_
_(262)_
_34,697_|
|---|---|---|---|---|
Page 26
## **THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01194206**
## **CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2025**
|**Note**
**Charity funds**
Unrestricted funds
Designated funds
18
General funds
18
**Total funds**|**2025**
**£000**
**26,622**
**6,345**
**32,967**|_2024_
_£000_
_28,337_
_6,360_|
|---|---|---|
||||
|||_34,697_|
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 and signed on their behalf by:
## **K C Ntumba**
Date: 1 April 2026
The notes on pages 31 to 54 form part of these financial statements.
Page 27
## **THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01194206**
## **CHARITY BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
14
Debtors
15
Short term deposits
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due within one
year
16
**Net current liabilities**
**Net assets excluding pension liability**
Defined benefit pension scheme liability
23
**Total net assets**|**11**
**4,095**
**1**
**571**
**4,678**
**(5,299)**|**2025**
**£000**
**26,414**
**7,588**
**34,002**
**(621)**
**33,381**
**(631)**
**32,750**|_18_
_3,085_
_1,127_
_710_
_4,940_
_(7,033)_|_2024_
_£000_
_27,542_
_9,293_
_36,835_
_(2,093)_
_34,742_
_(262)_
_34,480_|
|---|---|---|---|---|
Page 28
## **THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 01194206**
## **CHARITY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2025**
|**Note**
**Charity funds**
Unrestricted funds
Designated funds
18
General funds
18
**Total funds**|**2025**
**£000**
**26,622**
**6,128**
**32,750**|_2024_
_£000_
_28,337_
_6,143_|
|---|---|---|
||||
|||_34,480_|
The Charity's net movement in funds for the year was a deficit of £1.730m _(2024 - deficit £0.739m)_ .
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 and signed on their behalf by:
## **K C Ntumba**
Date: 1 April 2026
The notes on pages 31 to 54 form part of these financial statements.
Page 29
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Cash flows from operating activities**
Net cash (used in)/provided by operating activities
20
**Cash flows from investing activities**
Interest received
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
**Net cash provided by investing activities**
**Cash flows from financing activities**
Interest paid
**Net cash used in financing 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**
21|**2025**
**£000**
**(3,088)**
**486**
**7**
**(360)**
**133**
**(15)**
**(15)**
**(2,970)**
**11,130**
**8,160**|_2024_
_£000_
_1,951_
_431_
_-_
_(289)_
**142**
_(17)_
**(17)**
**2,076**
_9,054_
_11,130_|
|---|---|---|
The notes on pages 31 to 54 form part of these financial statements
Page 30
**THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **1. General information**
The Vernon Educational Trust Limited is a Company limited by guarantee (registered number 01194206) which is incorporated and registered in England and Wales. It's charity registration number is 269433. The registered office and principal place of business is Danes Hill School, Leatherhead Road, Oxshott, Surrey, England, KT22 0JG. It's principal activity is the provision of schooling.
In the event of the Trust being wound up, the liability in respect of the guarantee is limited to £1 per member of the Trust.
## **2. Accounting policies**
## **2.1 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 Companies Act 2006.
The Vernon Educational Trust Limited 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.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Going concern**
As detailed in the financial commentary in the Trustees’ Annual Report the trustees, having reviewed the Charity’s activities and financial position, consider the going concern basis of accounting to be appropriate.
Page 31
**THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.3 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.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Tuition and registration fees are recognised net of VAT and accounted for when receivable and when the economic benefit to the School is considered probable.
Fees for extracurricular activities represent fees charged to parents for activities not forming part of the tuition fees and are accounted for on a receivable basis. Donations are accounted for as and when they become known and when the economic benefit to the School is considered probable.
Amounts received under the school’s Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years.
## **2.4 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. A small amount of support costs are reallocated to governance costs based on a percentage of time.
Expenditure on raising funds includes all expenditure incurred by the Trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
The freehold and leasehold land and buildings at Oxshott were professionally revalued by FPD Savills, Chartered Surveyors, in 1997 at £1,775,000. The Trust is responsible for keeping the buildings in good condition, and these costs are written off as incurred.
Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.
Page 32
**THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.5 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Freehold property 50 years - Long-term leasehold property 50 years - Short-term leasehold property The unexpired term of the lease and improvements Motor vehicles - 4 years - Fixtures and fittings 10 years or the unexpired term of the lease - Computer equipment 3 years
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.
## **2.6 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
Cash on deposit which is not needed for working capital within the forthcoming year is shown under investments. Investments are held at fair value at the Balance Sheet date.
## **2.7 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.8 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.
## **2.9 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.
## **2.10 Liabilities**
Liabilities and provisions 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 Charity 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.
Page 33
## **THE VERNON EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.11 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.
## **2.12 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.
## **2.13 Pensions**
Contributions payable to the Teachers' Pension Agency and personal pension schemes for staff are charged to the Statement of Financial Activities in the period to which they relate.
## **2.14 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. 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 estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
In the view of the Trustees, no 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 next financial year.
Page 34
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **4. Income from charitable activities**
|Tuition fees (including school lunches)
Fees for extra curricular activities
Less : bursaries and discounts|**2025**
**£000**
**13,083**
**865**
**(969)**
**12,979**|_2024_
_£000_
_14,125_
_744_
_(1,224)_|
|---|---|---|
|||_13,645_|
The tuition fee income in both years was unrestricted.
Comparative results in 2024 has been restated to gross up trip income and related costs by £504k within Fees for extra curricular activities and other expenditure. This has no net impact on prior year net deficit.
## **5. Investment income**
|**Unrestricted**
**funds**
**2025**
**£000**
Bank interest receivable
486
_Total 2024_
_431_|**Total**
**funds**
**2025**
**£000**
**486**
_431_|_Total_
_funds_
_2024_
_£000_
_431_|
|---|---|---|
||||
Page 35
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **6. Expenditure on raising funds**
## **Cost of fundraising and publicity**
|**Unrestricted**
**funds**
**2025**
**£000**
Public relations
157
Advertising and publicity
43
**Total 2025**
200
_Total 2024_
_160_|**Total**
**funds**
**2025**
**£000**
**157**
**43**
**200**
_160_|_Total_
_funds_
_2024_
_£000_
_123_
_37_|
|---|---|---|
|||_160_|
||||
Page 36
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2025**
**£000**
Teaching costs
6,793
Premises costs
1,413
Catering
1,048
Course materials
332
Legal and professional
91
Depreciation
1,085
Support salaries
2,363
Interest payable
15
Other
1,800
Governance
71
**Total 2025**
15,011
_Total 2024_
_14,658_|**Total**
**2025**
**£000**
**6,793**
**1,413**
**1,048**
**332**
**91**
**1,085**
**2,363**
**15**
**1,800**
**71**
**15,011**
_14,658_|_Total_
_2024_
_£000_
_8,106_
_1,277_
_1,036_
_359_
_209_
_1,134_
_470_
_17_
_1,988_
_62_|
|---|---|---|
|||_14,658_|
||||
Page 37
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **7. Analysis of expenditure on charitable activities (continued)**
## **Summary by expenditure type**
|Teaching costs
Premises costs
Catering
Course materials
Legal and professional
Depreciation
Support salaries
Interest payable
Other
Governance
**Total 2025**
_Total 2024_|**Staff costs**
**2025**
**Depreciation**
**2025**
**£000**
**£000**
6,793
-
-
-
-
-
-
-
-
-
-
1,085
2,363
-
-
-
-
-
19
-
9,175
1,085
_8,592_
_1,134_|**Other costs**
**2025**
**£000**
-
1,413
1,048
332
91
-
-
15
1,800
52
4,751
_4,932_|**Total**
**2025**
**£000**
**6,793**
**1,413**
**1,048**
**332**
**91**
**1,085**
**2,363**
**15**
**1,800**
**71**
**15,011**
_14,658_|_Total_
_2024_
_£000_
_8,106_
_1,277_
_1,036_
_359_
_209_
_1,134_
_470_
_17_
_1,988_
_62_
_14,658_|
|---|---|---|---|---|
Page 38
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **8. Analysis of expenditure by activities**
|Teaching costs
Premises costs
Catering
Course materials
Legal and professional
Depreciation
Interest payable
Support salaries
Other
Governance
**Total 2025**
_Total 2024_|**Activities**
**undertaken**
**directly**
**2025**
**£000**
6,793
1,413
-
332
91
949
-
-
-
-
9,578
_10,879_|**Support**
**costs**
**2025**
**£000**
-
-
1,048
-
-
136
15
2,363
1,800
71
5,433
_3,779_|**Total**
**funds**
**2025**
**£000**
**6,793**
**1,413**
**1,048**
**332**
**91**
**1,085**
**15**
**2,363**
**1,800**
**71**
**15,011**
_14,658_|_Total_
_funds_
_2024_
_£000_
_8,106_
_1,277_
_1,036_
_359_
_209_
_1,134_
_17_
_470_
_1,988_
_62_|
|---|---|---|---|---|
|||||_14,658_|
||||||
## **Analysis of governance costs**
|Auditor fees
Staff costs|**2025**
**£000**
**52**
**19**
**71**|_2024_
_£000_
_46_
_16_|
|---|---|---|
|||_62_|
Page 39
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **9. Auditor's remuneration**
||**2025**|_2024_|
|---|---|---|
||**£000**|_£000_|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts (inclusive of VAT)|**40**|_39_|
|Fees payable to the Charity's auditor in respect of:|||
|All non-audit services not included above|**16**|_7_|
## **10. Staff costs**
|Wages and salaries
Social security costs
Pension costs|**Group**
**2025**
**£000**
**6,746**
**778**
**1,651**
**9,175**|_Group_
_2024_
_£000_
_6,721_
_725_
_1,146_
_8,592_|**Charity**
**2025**
**£000**
**6,746**
**778**
**1,651**
**9,175**|_Charity_
_2024_
_£000_
_6,721_
_725_
_1,146_|
|---|---|---|---|---|
|||||_8,592_|
Wages and salaries include £31k of cover/temporary staff costs _(2024 - £104k)_ .
During the year there were redundancy and termination payments made of £67,664 _(2024 - £251,844)_ . These were all paid within the year ending at 31st August 2025 and there was no payment outstanding _(2024 - £75k)_ .
The average number of persons employed by the Charity during the year was as follows:
|Teaching staff
Senior management
Ancillary staff|**Group**
**2025**
**No.**
**106**
**11**
**30**
**147**|_Group_
_2024_
_No._
_105_
_8_
_28_|
|---|---|---|
||||
|||_141_|
Of the 147 staff number reflected above, the associated Full Time Equivalent is 131.
Page 40
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **10. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**Group**|_Group_|
|---|---|---|
||**2025**|_2024_|
||**No.**|_No._|
|In the band £60,001 - £70,000|**9**|_5_|
|In the band £70,001 - £80,000|**1**|_1_|
|In the band £80,001 - £90,000|**6**|_1_|
|In the band £90,001 - £100,000|**3**|_2_|
|In the band £100,001 - £110,000|**-**|_1_|
|In the band £120,001 - £130,000|**-**|_1_|
|In the band £130,001 - £140,000|**-**|_1_|
|In the band £110,001 - £120,000|**1**|_-_|
|In the band £140,001 - £150,000|**1**|_-_|
The total remuneration paid to key management personnel was £1.612m _(2024 - £1.658m)_ . Key management are considered to be the Senior Management Team.
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2024 - £NIL)_ .
During the year ended 31 August 2025, expenses totalling _£_ 2,140 were reimbursed or paid directly to 5 Trustees _(2024 - £2,010 to 4 Trustees)_ for travel and subsistence.
The Trust purchased insurance for the Council Members during the year to indemnify them against any liabilities arising as a result of negligence on the Charity's behalf.
Page 41
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **12. Tangible fixed assets**
## **Group**
|**Cost or**
**valuation**
At 1 September
2024
Additions
Disposals
At 31 August
2025
**Depreciation**
At 1 September
2024
Charge for the
year
On disposals
At 31 August
2025
**Net book**
**value**
At 31 August
2025
_At 31 August_
_2024_|**Freehold**
**property**
**£000**
**3,733**
**-**
**-**
**3,733**
**1,129**
**75**
**-**
**1,204**
**2,529**
_2,604_|**Leasehold**
**£000**
**31,605**
**62**
**(407)**
**31,260**
**8,165**
**595**
**-**
**8,760**
**22,500**
_23,440_|**Assets under**
**construction**
**£000**
**11**
**33**
**-**
**44**
**-**
**-**
**-**
**-**
**44**
_11_|**Motor**
**vehicles**
**£000**
**592**
**12**
**(28)**
**576**
**592**
**1**
**(28)**
**565**
**11**
_-_|**Computer**
**equipment**
**£000**
**1,798**
**71**
**-**
**1,869**
**1,581**
**135**
**-**
**1,716**
**153**
_217_|**Fixtures**
**and**
**fittings**
**£000**
**3,265**
**183**
**-**
**3,448**
**1,788**
**275**
**-**
**2,063**
**1,385**
_1,477_|**Total**
**£000**
**41,004**
**361**
**(435)**
**40,930**
**13,255**
**1,081**
**(28)**
**14,308**
**26,622**
_27,749_|
|---|---|---|---|---|---|---|---|
Page 42
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **12. Tangible fixed assets (continued)**
## **Charity**
|**Cost or**
**valuation**
At 1 September
2024
Additions
Disposals
At 31 August
2025
**Depreciation**
At 1 September
2024
Charge for the
year
On disposals
At 31 August
2025
**Net book**
**value**
At 31 August
2025
_At 31 August_
_2024_|**Freehold**
**property**
**£000**
**3,733**
**-**
**-**
**3,733**
**1,129**
**75**
**-**
**1,204**
**2,529**
_2,604_|**Leasehold**
**£000**
**31,142**
**62**
**(407)**
**30,797**
**7,910**
**595**
**-**
**8,505**
**22,292**
_23,232_|**Assets**
**under**
**construction**
**£000**
**11**
**33**
**-**
**44**
**-**
**-**
**-**
**-**
**44**
_11_|**Motor**
**vehicles**
**Computer**
**equipment**
**£000**
**£000**
**592**
**1,798**
**12**
**71**
**(28)**
**-**
**576**
**1,869**
**592**
**1,581**
**1**
**135**
**(28)**
**-**
**565**
**1,716**
**11**
**153**
_-_
_217_|**Fixtures**
**and**
**fittings**
**£000**
**3,168**
**183**
**-**
**3,351**
**1,691**
**275**
**-**
**1,966**
**1,385**
_1,477_|**Total**
**£000**
**40,444**
**361**
**(435)**
**40,370**
**12,903**
**1,081**
**(28)**
**13,956**
**26,414**
_27,541_|
|---|---|---|---|---|---|---|
Page 43
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **13. Fixed asset investments**
|**Group**
**Cost or valuation**
At 1 September 2024
Net movement in year
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_
**Charity**
**Cost or valuation**
At 1 September 2024
Net movement in year
At 31 August 2025
**Impairment**
At 1 September 2024
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_|**Investments**
**in**
**subsidiary**
**companies**
**£000**
**671**
**-**
**671**
**671**
**671**
**-**
_-_|**Loans to**
**subsidiary**
**£000**
**786**
**-**
**786**
**786**
**786**
**-**
_-_|**Term**
**deposit**
**£000**
**9,293**
**(1,705)**
**7,588**
**-**
**-**
**7,588**
_9,293_|**Term**
**deposit**
**£000**
**9,293**
**(1,705)**
**7,588**
**7,588**
_9,293_
**Total**
**£000**
**10,750**
**(1,705)**
**9,045**
**1,457**
**1,457**
**7,588**
_9,293_|
|---|---|---|---|---|
The loans to the subsidiary are interest free and repayable on demand.
Page 44
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **Fixed asset investments (continued)**
The Charity has two wholly owned subsidiaries which are registered and incorporated in England.
The following were subsidiaries of the Charity:
|**Names**|**Company**
**number**|**Registered office**|**Principal activity**|**Net**
**assets/(liabilities)**
**at year end £**|
|---|---|---|---|---|
|Danes Hill|2811263|Danes Hill School, Leatherhead Road,|Property management|12,225|
|Trading Limited||Oxshott, Surrey, KT22 0JG|||
|Brinlay Limited|3272128|Danes Hill School, Leatherhead Road,|Property management|(788,431)|
|||Oxshott, Surrey, KT22 0JG|||
Both subsidiaries were dormant during the year.
## **14. Stocks**
||**Group**|_Group_|**Charity**|_Charity_|
|---|---|---|---|---|
||**2025**|_2024_|**2025**|_2024_|
||**£000**|_£000_|**£000**|_£000_|
|Finished goods and goods for resale|**11**|_18_|**11**|_18_|
## **15. Debtors**
|**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2025**
**£000**
**3,486**
**-**
**97**
**508**
**4,091**|_Group_
_2024_
_£000_
_2,670_
_-_
_113_
_298_
_3,081_|**Charity**
**2025**
**£000**
**3,486**
**4**
**97**
**508**
**4,095**|_Charity_
_2024_
_£000_
_2,670_
_4_
_113_
_298_|
|---|---|---|---|---|
||||||
|||||_3,085_|
Trade debtors include £3.466m _(2024 - £0.315m)_ for fees invoiced in July and August for the following academic year.
Page 45
**(A company limited by guarantee)**
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **16. Creditors: Amounts falling due within one year**
|Fees invoiced in advance
Trade creditors
Deposits
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2025**
**£000**
**3,659**
**524**
**477**
**-**
**282**
**99**
**245**
**5,286**|_Group_
_2024_
_£000_
_5,422_
_443_
_547_
_-_
_200_
_248_
_160_
_7,020_|**Charity**
**2025**
**£000**
**3,659**
**524**
**477**
**21**
**282**
**91**
**245**
**5,299**|_Charity_
_2024_
_£000_
_5,422_
_443_
_547_
_21_
_200_
_241_
_159_|
|---|---|---|---|---|
|||||_7,033_|
The Council have reviewed the contract terms under which deposits are held by the school. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2025 have been included within current liabilities. The prior year deposits balance has been similarly represented.
The total amount held in relation to deposits of £0.567m _(2024 - £0.547m)_ is included above. In the normal course of business, the expected repayment of these amounts will be £0.104 _(2024 - £0.083m)_ within one year and £0.463m _(2024 - £0.464m)_ after more than one year.
## **17. Financial instruments**
||**Group**|_Group_|**Charity**|_Charity_|
|---|---|---|---|---|
||**2025**|_2024_|**2025**|_2024_|
||**£000**|_£000_|**£000**|_£000_|
|**Financial assets**|||||
|Financial assets measured at fair value|||||
|through income and expenditure|**7,588**|_9,293_|**7,588**|_9,293_|
Financial assets measured at fair value through income and expenditure comprise assets held as investments.
Page 46
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **18. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Fixed Asset Fund
The Vernon Award (Bursary
Fund)
**General funds**
General Fund
**Total Unrestricted funds**|**Balance at 1**
**September**
**2024**
**£000**
**27,750**
**587**
**28,337**
**6,360**
**34,697**|**Income**
**£000**
**-**
**-**
**-**
**13,481**
**13,481**|**Expenditure**
**£000**
**-**
**-**
**-**
**(15,211)**
**(15,211)**|**Transfers**
**in/out**
**£000**
**(1,128)**
**(587)**
**(1,715)**
**1,715**
**-**|**Balance at**
**31 August**
**2025**
**£000**
**26,622**
**-**|
|---|---|---|---|---|---|
||||||**26,622**|
||||||**6,345**|
||||||**32,967**|
The movement in the Fixed Asset Fund represents the reduction in the value of assets held by the Trust including in the current year, £407k relating to an estimate of VAT to be reclaimed through the Capital Goods Scheme following VAT registration during the year.
The balance previously held within the designated ‘The Vernon Award’ fund has been consolidated with General Funds in the year. This reflects the practice at the Trust where bursaries are budgeted and funded as an adjustment to the annual income and are subject to annual review and approval.
Page 47
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **18. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Fixed Asset Fund
The Vernon Award (Bursary
Fund)
**General funds**
General Fund
**Total Unrestricted funds**|_Balance at_
_1 September_
_2023_
_£000_
_28,595_
_587_
_29,182_
_6,254_
_35,436_|_Income_
_£000_
_-_
_-_
_-_
_13,575_
_13,575_|_Expenditure_
_£000_
_-_
_-_
_-_
_(14,314)_
_(14,314)_|_Transfers_
_in/out_
_£000_
_(845)_
_-_
_(845)_
_845_
_-_|_Balance at_
_31 August_
_2024_
_£000_
_27,750_
_587_|
|---|---|---|---|---|---|
||||||_28,337_|
||||||_6,360_|
||||||_34,697_|
Page 48
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2025**
**£000**
Tangible fixed assets
26,622
Fixed asset investments
7,588
Current assets
4,674
Creditors due within one year
(5,286)
Provisions for liabilities and charges
(631)
**Total**
32,967|**Total**
**funds**
**2025**
**£000**
**26,622**
**7,588**
**4,674**
**(5,286)**
**(631)**
**32,967**|
|---|---|
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities and charges
**Total**|_Unrestricted_
_funds_
_2024_
_£000_
_27,750_
_9,293_
_4,936_
_(7,020)_
_(262)_
_34,697_|_Total_
_funds_
_2024_
_£000_
_27,750_
_9,293_
_4,936_
_(7,020)_
_(262)_
_34,697_|
|---|---|---|
Page 49
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net expenditure for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Interest paid
Investment income
Profit on the sale of fixed assets
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Increase/(decrease) in pension liability
**Net cash (used in)/provided by operating activities**|**Group**
**2025**
**£000**
**(1,730)**
**1,081**
**15**
**(486)**
**(7)**
**7**
**(1,010)**
**(1,327)**
**369**
**(3,088)**|_Group_
_2024_
_£000_
_(739)_|
|---|---|---|
|||_1,134_
_17_
_(431)_
_-_
_2_
_834_
_1,144_
_(10)_|
||||
|||_1,951_|
## **21. Analysis of cash and cash equivalents**
|Cash in hand
Short term deposits
Long term deposits
**Total cash and cash equivalents**|**Group**
**2025**
**£000**
**571**
**1**
**7,588**
**8,160**|_Group_
_2024_
_£000_
_710_
_1,127_
_9,293_|
|---|---|---|
||||
|||_11,130_|
Page 50
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **22. Analysis of changes in net debt**
|Cash at bank and in hand
Long term deposits
Short term deposits|**At 1**
**September**
**2024**
**£000**
**710**
**9,293**
**1,127**
**11,130**|**Cash flows**
**At 31**
**August 2025**
**£000**
**£000**
**(139)**
**571**
**(1,705)**
**7,588**
**(1,126)**
**1**
**(2,970)**
**8,160**|**Cash flows**
**At 31**
**August 2025**
**£000**
**£000**
**(139)**
**571**
**(1,705)**
**7,588**
**(1,126)**
**1**
**(2,970)**
**8,160**|
|---|---|---|---|
||||**8,160**|
## **23. Pension commitments**
The School contributes to two personal pension schemes, both defined contribution schemes. Royal London for non-teaching staff and the APTIS scheme administered by AVIVA for teaching staff who have joined the school from 1st December 2023 and any current teaching staff who wish to transfer over under ‘Phased withdrawal’. At the year-end 12k _(2024 - £23k)_ was outstanding to the Royal London scheme and £15k _(2024 - £7k)_ to AVIVA.
## **TPT Retirement Solutions - Independent Schools' Pension Scheme**
The company also participates in this scheme, a multi-employer scheme which provides benefits to some 51 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 11 December 2024 and showed assets of £99.2m, liabilities of £151.5m and a deficit of £52.3m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
## _Deficit contributions_
From 1 September 2025 to 31 January 2034: £6,000,000 per annum (payable monthly and increasing by 3% on each 1st September)
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this
Page 51
## **THE VERNON EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **23. Pension commitments (continued)**
funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
## _Deficit contributions_
From 1 September 2022 to 30 June 2032: £2,687,000 per annum (payable monthly and increasing by 3% on each 1st September)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
## **Reconciliation of opening and closing provisions**
|Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
**Provision at end of period**|**2025**
**£000**
**262**
**12**
**(36)**
**(3)**
**396**
**631**|_2024_
_£000_
_272_
_15_
_(35)_
_10_
_-_|
|---|---|---|
|||_262_|
## **Consolidated Statement of Financial Activities impact**
|Interest expense
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule|**2025**
**£000**
**12**
**(3)**
**396**
**405**|_2024_
_£000_
_15_
_10_
_-_|
|---|---|---|
|||_25_|
Page 52
**THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **Assumptions**
||**2025**|_2024_|
|---|---|---|
||**% per**|_% per_|
||**annum**|_annum_|
|Rate of discount|**5**|_5_|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
## **Deficit contributions**
The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:
|**Year**|**ending**|**31**|**August**
**(£s)**|**2025**|**31**|**August**
**(£s)**|**2024**|**31**|**August 2023**
**(£s)**|
|---|---|---|---|---|---|---|---|---|---|
|Year|1|||81,544|||36,082||35,031|
|Year|2|||83,990|||37,164||36,082|
|Year|3|||86,510|||38,279||37,164|
|Year|4|||89,105|||39,428||38,279|
|Year|5|||91,778|||40,611||39,428|
|Year|6|||94,532|||41,829||40,611|
|Year|7|||97,368|||43,084||41,829|
|Year|8|||100,289|||36,980||43,084|
|Year|9|||43,041|||-||36,980|
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive the company's balance sheet liability.
Page 53
## **THE VERNON EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **24. Operating lease commitments**
At 31 August 2025 the Trust and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**Group**
**2025**
**£000**
**104**
**259**
**2,788**
**3,151**|_Group_
_2024_
_£000_
_66_
_184_
_2,800_
_3,050_|**Charity**
**2025**
**£000**
**104**
**259**
**2,788**
**3,151**|_Charity_
_2024_
_£000_
_66_
_184_
_2,800_|
|---|---|---|---|---|
||||||
|||||_3,050_|
The following lease payments have been recognised as an expense in the Statement of financial activities:
||**Group**|_Group_|**Charity**|_Charity_|
|---|---|---|---|---|
||**2025**|_2024_|**2025**|_2024_|
||**£000**|_£000_|**£000**|_£000_|
|Operating lease rentals|**105**|_95_|**105**|_95_|
## **25. Related party transactions**
Persons connected to members of the Senior Management team are remunerated for roles in the School. Total remuneration in the year was £76k _(2024 -: £Nil)_ .
There are no further related party transactions that require disclosure.
Page 54