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2025-12-31-accounts

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

Registered number: 00604757 Charity number: 279567

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 12
Independent Auditors' Report on the Financial Statements 13 - 17
Consolidated Statement of Financial Activities 18
Consolidated Balance Sheet 19 - 20
Charity Balance Sheet 21 - 22
Consolidated Statement of Cash Flows 23
Notes to the Financial Statements 24 - 49

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2025

Trustees Christopher Mark Sanders (resigned 2 January 2025)
Sarah Burles (resigned 10 February 2026)
David Ralph Martin (resigned 5 August 2025)
Sandra Toni Moses (resigned 4 February 2025)
Christine Anne Berry (resigned 5 August 2025)
Paul Jackson
Peter McPartland
Lesley Margaret Thompson
Ivor John Anthony Harrison
Chloe Shaw (appointed 5 August 2025)
Sue Grace (appointed 5 August 2025)
Honorary President
Mariann Bienz
Company registered
number
00604757
Charity registered
number
279567
Registered office
Stapleford Granary
Bury Road
Stapleford
CB22 5BP
Independent auditors
PEM Audit Limited
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers
The Royal Bank of Scotland plc
82-88 Hills Road
Cambridge
CB2 1LG
Investment Manager
Cazenove Capital
1 London Wall Place
London
EC2Y 5AU

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Association for Cultural Exchange Limited (the Charity/the Group) for the year ended 31 December 2025. The trustees confirm that the Annual Report and financial statements for the Charity comply with the current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) second edition – October 2019 (effective 1 January 2019), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the Charity qualifies as small under section 383, the strategic report required of medium and large charities under The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 is not required.

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing aims and objectives and planning future activities.

CHARITABLE OBJECTIVES

The charity was established as The Association for Cultural Exchange in 1958 with the following objectives: “to advance the education of the people of the United Kingdom and elsewhere in the fields of general history, music, art, architecture and design, archaeology, literature, environmental studies and the theory of education.”

Stapleford Granary

Our charitable activity largely now takes place at, and through, our South Cambridgeshire Arts Centre home, Stapleford Granary. This RIBA award-winning converted 19th century farm complex is a much-loved hub of the community, praised for its warm welcoming environment, distinctive and high-quality cultural programming, and ground-breaking educational work.

The Charity has two wholly owned trading subsidiaries (which, together with the Charity, comprise the Group).

ACE Cultural Tours Ltd (Tours)

Tours is the main trading subsidiary of the Charity. ACE Cultural Tours provides expert-led, special-interest study tours across the UK and internationally, covering a wide range of cultural activities. Tours is well aligned to the charity as it covers a wide range of cultural and educational topics that support the objectives. It is also currently the prime source of income for the charity as it donates its surpluses via Gift Aid to fund the charitable activities of its parent Charity.

In accordance with the Charity SORP, the income of Tours is categorised as ‘other trading activities’ and the expenditure as ‘raising funds’ for the Charity. These categories therefore form a substantial part of the consolidated accounts.

Stapleford Granary Ltd

The Charity’s second wholly owned trading subsidiary is Stapleford Granary Limited. It was established in 2022 to operate the on-site cafe and other commercial functions including room hire, conferencing and networking events. Stapleford Granary Ltd provides essential income for the charity but also has an invaluable marketing and promotional role; it is through the café that many people discover the arts centre for the first time, and the team have developed a careful blend of business and charitable activities which promote one another (for example, pre-concert dining).

DELIVERING PUBLIC BENEFIT

Stapleford Granary is a unique, inspiring environment for experiencing music and art, built on the vision and

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

values of the Association for Cultural Exchange. Our mission is to enable, encourage and facilitate lifelong cultural education ; and we do this by finding ways to excite curiosity and support the active, sustained and often intense state of exploration that follows an initial discovery.

Key achievements in 2025 2025 in numbers

70,000 annual footfall 131 musicians from UK and Europe performed in 43 concerts, attended by over 4,060 people (87% of all tickets sold)

1,900 first time concert ticket buyers

45 school visits to Stapleford Granary

1,250 children attended Crafty Thursdays, Messy Tuesdays, the Potting Shed and Elf Workshops

62 artists exhibited here in seven main site exhibitions, plus smaller installations

5,560 exhibition booklets were taken up, plus digital engagement

' ' The Granary is fresh and exciting, and has such a lot of variety 'I come here to be taken out of myself, to see from another perspective , to learn and feel inspired ' visitor feedback

Our flagship live chamber-scale music programme presents the finest artists of national and international renown to local audiences and those travelling from further afield. Our concert programme comprises classical, folk, jazz, and poetry. Visiting artists in 2025 included pianists Leon McCawley and Danny Driver; The Marian Consort, Pixels Ensemble, Apollo Saxophone Quartet; jazz musicians Joe Webb, Matt Ford, Misha MullovAbbado and James Taylor; folk artists Cohen Braithwaite-Kilcoyne, Eliza Carthy, Lady Maisery, VRi and The Jeremiahs; and poet Wendy Cope.

Concerts in the Granary’s intimate hall are a unique experience, allowing everyone to be in close proximity to the artists, and to meet and talk to them afterwards in the bar. We offer special pre-concert talks for some events, and in the summer months our jazz and folk concerts are held outdoors under a 300 square metre stretch tent; a relaxed setting which particularly suits families or those who are not regular concert goers. In 2025, we held 43 concerts featuring established masters and much-loved music alongside new voices and lesser-known repertoire. Our audiences have developed a strong level of trust in our programming and are unafraid to try something new, as reflected in our ticket sales. Our programming also leads to positive audience acquisition and retention; in 2025 47% of tickets were sold to first time buyers, and audience retention is 53%, in line with the strong post-pandemic growth seen across the sector. In 2026, we aim to maintain the high calibre, diversity and distinctiveness of our concert series; and sustain our audience growth and retention.

Our exhibitions are non-ticketed and are accessible and in view of everyone who visits Stapleford Granary regardless of their specific visiting intention. A new strategy for visual art came into force in 2025, emphasising immersive displays and storytelling to excite initial curiosity. A range of low-tech and information based interactives (booklets, crafts, talks, reading corners) have been integrated into exhibitions. Visitors use the interactives to enhance and enrich their experience and gain insight and more information; and children are able to discover with minimum intervention. Dwell time is (on average) 60-75 minutes; surprisingly high for such a small exhibition space, suggesting that visitors are willing to spend a long time looking at and reading everything in detail. ('there's no sense of rushing'... 'I feel I can linger here'... 'the whole space feels like a celebration of the artist's work and I want to take it all in')

A thirst for the new, as seen in our concerts, is also borne out in visitor feedback forms for exhibitions. Over half of all responses cited ' to learn, to be inspired’ as the main reason that they visit exhibitions. 'There's always something new here'

' 'Thoughtful, and encouraging of one's own observation and creativity 'Always thought-provoking'

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

In 2025, we curated seven main site exhibitions (group shows and individual artists); and we supported local and emerging artists via smaller installations. Mandy Payne's Brutalist miniatures (main exhibition Feb - March) were widely admired by regular and new visitors, and the project ignited keen interest in the brutalist buildings in Cambridge. Pupils from Stapleford Community Primary School created exceptionally fine collage work and model making in response to the exhibition which was publicly displayed. Year 4 achieved their EXPLORE Arts Award as a result.

'Mandy Payne's brutalism really highlighted to all of us as teachers that what we assume will or won't be interesting to children can be misplaced - it is the questioning and the way children are captivated by it that has an impact.’

Johnny Boatfield's Great Small Miracles Exhibition drew large crowds to peer though magnifying glasses at the minutely detailed work of one of the UK's finest (and least-known) draughtsmen. Well-attended artist talks featured throughout the year, and we were proud to celebrate the exquisite work of a local Edwardian artist and historian, Fanny Wale, creating the first ever print exhibition of her pictures alongside a book launch. COLONY - an outdoor installation of seven huge other-worldly spheres that emit a sonic hum - attracted a new demographic, drawn to the strange, tactile and autonomous nature of the work.

In 2025, we launched a new initiative producing our own in-house for each exhibition (adult and children's guides) which have been widely praised for their content and design. 100% of all our survey respondents found the information helpful and accessible and rated it ‘excellent’. Free for visitors and accessible online, they allow us to measure deeper engagement along with other interactives, such as touching tables, reading corners and hands-on craft activities relating to exhibitions.

In 2025, we discovered what works well at Stapleford Granary:curious collections, lesser known highly distinctive voices, immersive displays and thought-provoking juxtapositions. We approach 2026 with a new-found confidence in our curatorial skills and our ability to tell a good story. Our 2026 exhibition programme is designed to excite curiosity, delight and surprise.

Our Small Grains programme , an acclaimed twinning between Stapleford Granary Arts Centre and Stapleford Community Primary School, entered its third year. The programme is rare in its high levels of interaction (45 school visits to the arts centre per year). It provides exceptional and well-documented benefits for the pupils, and research opportunities for us to understand the uniqueness of the cultural centre as a rich setting for education, and our role as cultural educators.

In February 2025, Stapleford Community Primary School was awarded a Platinum Arts Award (rare for a primary school) with Arts Council England describing the twinning and underpinning research as 'exemplary , innovative ' and groundbreaking ' and something ' that must be shared as widely as possible .

During 2025, we expanded our network of schools, and we now have the potential to reach thousands of children across the whole of the Anglian Learning Trust. In October, we created a piece of immersive theatre - The Tin Forest - for over 500 year 4 children from 11 primary schools within Anglian Learning Trust. 384 of the pupils gained a DISCOVERY Arts award as a result of The Tin Forest, and the project has been singled out as an ambitious, exceptional and impactful case study by Trinity College who operate Arts Award.

‘The Tin Forest was , without a doubt, one of the most incredible events for our pupils that I have had the privilege of attending since the Trust was formed 10 years ago. The sound , light, space and words came together to ' create a powerful immersive experience that pupils and staff will not forget for a long time...quite magical . - Jonathan Culpin, CEO Anglian Learning

2026 will have a strong music focus. In October 2026, our new touring production - Tiny Concerts - will visit 11 primary schools (c. 3,000 children). We will also embark on a second music-focussed twinning with The Icknield

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

School in Sawston. A particularly important aspect of this new twinning is to ensure that we leave a legacy, supporting and empowering teachers who currently lack confidence in teaching music.

In 2024, we invested heavily in our ancillary services , which are deeply integrated with the cultural aspects of our operations. In 2025 we have seen the results of this investment. The beautifully appointed Wallis Suite (an area transformed by a generous legacy) has enabled us to increase our revenue from hires, networking and conferencing, whilst retaining the main visitor spaces for exhibitions and cultural experiences. The refurbished foyer-bar area is now a warm welcoming area for visitors throughout the day and evening and has opened up new business and cultural offerings (e.g. exhibition launches, pre-concert dining). Charitable activity and business / hospitality go hand-in-hand, with the cafe (now three years old and thriving) assuming a major marketing role for our cultural programme; and well-attended events and exhibitions providing the stimulus for hospitality models such as pre-concert dining and afternoon tea.

Stapleford Granary has a unique and remarkable natural environment , which we are committed to safeguarding. In 2025, we continued to welcome visitors to the historic orchard to enjoy the wildlife and idyllic setting. The orchard now has a management plan, and all varieties of heritage fruit trees have been identified. This year, we planted more trees focusing on traditional local varieties so that we can ensure the orchard's continuity and biodiversity. The bumper crop of 2025 apples will be made into Stapleford Granary's own cider in 2026 by award-winning Blue Barrel Cider Company.

Even more significant is our position within the River Granta chalk stream landscape. Our little brook was once a part of the Granta's original water course. Because of its poor condition, the Granta has been selected as a pilot project for restoration. In 2025, we worked with the water company, local environmental groups and other stakeholders to determine how best to contribute to this river and habitat restoration project. There are very early stage proposals to reinstate part of the disconnected water course of the Granta and create a managed wetland over eight hectares behind the Granary. Whilst much of this work is still exploratory, there will be plentiful educational opportunities to combine the natural world with the arts, highlight the importance of chalk streams in Cambridgeshire, and engage with our local community in the landscape that we all share.

Future plans

2026 at Stapleford Granary will have a strong focus on continuing to build on the success of our cultural and educational programmes whilst also investigating revenue generation.

Specific focal areas for 2026 include:

Culturally curious travel – ACE Cultural Tours

Although trading as a commercial subsidiary of the charity, the operations of ACE Cultural Tours are aligned with

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

the charitable objectives. Tours are curated to deliver high educational content alongside opportunities to explore destinations and venues that are often not publicly accessible.

As members of the Association of Independent Tour Operators (AITO), we subscribe to AITO’s code of ethics for sustainable tourism. Our study tours respect the history and heritage of the places visited and the fragility of many natural habitats. Where appropriate small grants and awards are sometimes made to organisations connected with the destinations on tours.

Business levels for 2025 were broadly consistent with 2024, with comparable revenue but slightly lower profit due to increased operational costs during a period of higher inflation. The tour portfolio encompassed 130 departures worldwide, spanning 24 distinct countries, with 31% of tours UK-based, supporting both accessibility and sustainability objectives.

In terms of brand-new cultural content, 2025 tours explored themes ranging from the archaeology and ancient heritage of Egypt and Georgia to the musical heritage of Central Europe, as well as the natural and historic landscapes of the UK. Highlights included the inaugural ACE cruise along the Mekong Delta, combining archaeology, history, architecture and local customs to provide a rich impression of Southeast Asian culture. The year also saw the first ACE Cultural Tours visit to the Bayreuth Festival, adding a new dimension to the classical music programme.

Tour quality remained excellent, with 92% of customers reporting that they would recommend ACE Cultural Tours, reflecting consistently high satisfaction levels. ACE Cultural Tours retained the Feefo Platinum Trusted Service Award, consistently achieving a rating of 4.8/5.

Ambition continues into 2026, with a focus on expanding both international and domestic tours, introducing fresh cultural content, and maintaining the high standards that underpin customer satisfaction and repeat travel.

REFLECTIONS ON 2025

This report and the accompanying financial statements show all parts of the Group continuing to perform well in 2025. This success is largely thanks to the outstanding work of all our staff to whom the trustees are extremely grateful.

The Stapleford Granary team is led by Kate Romano, CEO and co-artistic director. She is supported by a small, highly-driven and motivated team who deliver a range of events and activities – created with imagination and flair and an unfailing eye for ensuring the very best cultural experience for every visitor. Tamlyn Barber, Business Development Manager, has driven initiatives with flair and financial acumen; the café, hospitality models and conferencing receive consistent outstanding high praise for quality, warm welcome and flawless operations. Our much valued volunteer team provide help at concerts (parking and box office support) to general advocacy; we are grateful for their commitment and their enhancement of the visitor experience.

The excellence and expertise of our Tours’ team is deservedly recognised by the awards received once again in 2025. The willingness of the team to always go the extra mile for our travellers is demonstrated daily by the feedback and plaudits they receive.

Of course, trustees are also volunteers. There were significant trustee retirements during the year with longstanding trustees, Christine Berry and David Martin, reaching the end of their two terms of office permitted under our constitution. Both contributed significantly to the growth and development of the Charity and Christine latterly served as unpaid General Secretary and Chair of Trustees. We are immensely grateful for all that they have given to the Charity in expertise, time and dedication. We were delighted to welcome new trustees, Sue Grace and Chloe Shaw at the AGM in 2025. Since the year end, grateful thanks are also due to Sarah Burles, who completed her term of office in February 2026, so succession-planning for the trustee board continues.

At the AGM in 2025, we also welcomed our new Honorary President of the Charity, Mariann Bienz, a long term

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

supporter of the Charity. She succeeded Ann Barrett who resigned from the role after many years - we are enormously grateful for all her wisdom and support over many years.

LOOKING FORWARD TO 2026

We are delighted that in all parts of the charity there is so much success to build on.

In addition to the specific areas of focus for 2026 for the Charity mentioned earlier, the trustees have identified six areas for particular attention over the next 3 years:

Progress and actions in these areas are regularly reviewed at Trustee meetings.

INVESTMENT POWERS AND POLICY

Under the Memorandum and Articles of Association, the Charity has the freedom to invest in a wide variety of assets. The finance and investment sub-committee has formal delegated authority from the trustee board. Its remit includes the management of the Charity’s investment portfolio and the arrangements with the Charity’s external investment managers. During the year, the finance and investment sub-committee undertook a formal review of investment managers and after due consideration recommended that there should be a change in managers with Cazenove Capital being formally appointed in August 2025. All funds were transferred to them by November 2025 and are now held in the Cazenove Sustainable Multi Asset Fund.

FINANCIAL REVIEW

The consolidated statement of financial activities for the Charity and its subsidiaries for the 12 months to 31 December 2025 shows a slightly increased income of £7,607,341 (2024: £7,498,913).

The Charity continues to hold investments with a market value of £2,278,320 (2024: £2,117,264).

The total income of ACE Cultural Tours Limited for the 12 months to 31 December 2025 remained in line with the previous year at £6,880,075 (2024: £6,880,013), although increasing costs resulted in a reduced profit for the year before tax of £231,194 (2024: £444,015). The sum of £218,256 is to be donated via Gift Aid to the Charity in the first 9 months of 2026 (2024: £440,000).

In the course of 2020 and 2021 the Charity provided loans totalling £1m on commercial terms to ACE Cultural Tours to provide working capital during the Covid period. At the start of 2025, ACE Cultural Tours repaid the final capital instalment of £250,000 to the Charity (2024: £250,000), clearing all outstanding debts. The Association made the decision to invest £330,000 of share capital in ACE Cultural Tours from the £444,690 funds received during the first 9 months of the year.

Total income of Stapleford Granary Limited continued to grow during the 12 months to 31 December 2025, increasing to £426,822 (2024: £361,379). Although the company ended the year with a trading loss of £15,756 (2024: £5,016), it should be noted that this was due to the increased allocation of shared costs, not recharged previously; if these had not been allocated the result would have been a profit. The Granary also repaid to the Association the loan of £20,000 which it had been granted upon formation during the 2025 financial year.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

The Association continues to be encouraged by the growth and improved profitability of this part of the business and the essential contribution made to the Association’s own income in the form of rental and conference hire income. Stapleford Granary is considered an integral part of the Charity, and a valuable social investment, encouraging footfall to the site and raising awareness of the Charity. For this reason, the Association took the decision to invest £50,000 of share capital in Stapleford Granary at the end of the year to allow Stapleford Granary to undertake in 2026 essential capital investment to improve on site facilities.

The net assets of the Group as shown in the balance sheet as at 31 December 2025 were £7,612,751 (2024: £7,499,554), an increase of £113,197.

Funds

The net assets have historically been allocated to a Property Fund and a Subsidiary Support Fund. The balance of unrestricted funds is the Charity’s free reserves.

Property Fund

The Property Fund represents the net book value of the Charity’s freehold property, which comprises a distinguished range of former farm buildings at Stapleford Granary. The buildings have been converted to create a centre for the arts, to provide office and workshop accommodation and spaces for meetings and education.

Subsidiary Support Fund

Due to the repayment of the COVID loan to Tours at the start of the year and the subsequent additional investment in share capital in ACE Cultural Tours there is no longer deemed to be a requirement for this fund. The start-up loan to Stapleford Granary Ltd was also repaid during the year and further investment made in its share capital as noted above.

Restricted funds

This fund contains the balance of a legacy from the estate of Beryl Wallis, which was designated to be used in the area of classical music. In 2025 additional funds were received for the purpose of supporting Tiny Concerts, an educational classical music production being developed to be launched in 2026, which will also be subsidised through the Beryl Wallis legacy.

A further sum was gifted from Ann Barrett with the provision of being distributed in the form of scholarships via ACE Cultural Tours. A first award of £2,000 was made in the year to assist a student in their classical organ studies.

A donation was also received from Mariann Bienz (Honorary President) to fund the Tiny Concerts Project, which is a co-production between Stapleford Granary Arts Centre and Goldfields Productions. Tiny Concerts are 45 minute classical music touring events, perfectly pitched for primary schools and for family shows at festivals and venues.

Reserves policy

The policy of the Charity is to maintain reserves to provide for spending on the Charity’s direct services, for strategic objectives, to provide some protection from unforeseen events and for capital accumulation. The trustees have reviewed the Charity’s reserves policy and have resolved to retain as designated funds amounts representing those assets set aside for specific purposes with the balance as an unrestricted general reserve.

The Charity does not receive significant external funding and only by accumulation will it be possible to provide sufficient reserves to ensure the long-term success and expansion of the Charity’s direct services and strategic objectives.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees aim to maintain free reserves at a level and with such liquidity as to enable support to be provided to all elements of the Group for a minimum of 12 months. The trustees forecast this to be in the region of at least £1,000,000. They consider that it is desirable to hold £2,000,000 to provide significant resilience against most risks.

The Charity previously designated a Capital Fund, representing investments held to generate income and capital growth to support the long-term sustainability of the Charity. In line with the increased reserves policy above, these funds were un-designated in 2024 as the Trustees acknowledge these funds may need to be drawn upon in the future. There is the hope that surplus funds can be generated in future years to re-establish this fund.

Post year end a Friends of Stapleford Granary Scheme has been launched with a view to raising money to support the charitable works of the Association. This was the first step in developing the Charity’s own engagement and fundraising programme with a view to minimising any operational deficit and maximise long term sustainability and planning. However, the trustees recognise the currently challenging climate for arts funding climate and that any strategy will take time to deliver results. Nevertheless, the reserves held provide confidence for future planning.

At the year end the Group had total funds of £7,612,751 including restricted funds of £127,718. Of the £7,485,033 unrestricted funds, the trustees have designated the Property Fund at £4,028,286.

After taking account of the subsidiaries' retained earnings and capital of £1,141,550, the Group's free reserves as of 31 December 2025 are £2,315,237 (2024: £2,067,434) which is in line with the upper target of £2,000,000.

STRUCTURE GOVERNANCE AND MANAGEMENT

Constitution

The Charity is a company limited by guarantee. It is governed by the revised Memorandum and Articles of Association which were adopted on 29 January 2013. It is registered as an educational charity with the Charity Commission, number 279567.

Method of appointment or election of trustees

As set out in the Articles of Association, the chair of the board of trustees is elected from and by the directors (trustees). New trustees may be nominated by members of the existing board. In appointing new trustees, the board has regard to the range of skills required by the Charity.

Two new trustees were elected to the board at the AGM in 2025 following a formal recruitment process.

Policies adopted for the induction and training of trustees

Prospective trustees are selected on the basis of their experience of working on a charitable or business board and in respect of the specific skills they will bring to the Charity’s governance and leadership. Impending trustee vacancies are advertised and there is a recruitment procedure after which prospective trustees are formally appointed at the Charity’s AGM.

Prospective trustees are directed specifically to all Charity Commission Guidance relevant to new trustees and are given copies of the Charity’s governing documents. The induction process is tailored to a new trustee’s existing knowledge and expertise.

For the whole trustee board, trustees are provided with updates on changes to charity law/Charity Commission Guidance to keep abreast of regulatory changes and best practice. Other training is provided as and when appropriate.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Pay policies for senior staff

The Charity considers its key management personnel comprise the trustees and the CEO (and co-Artistic Director) of Stapleford Granary.

The key management personnel of the Group comprise those of the Charity and the directors/senior executives of the subsidiaries ACE Cultural Tours Limited and Stapleford Granary Limited. They manage and control the Group's daily operations.

All trustees give their time for governance freely. Two trustees, who independently act as tour directors for Tours, received remuneration from Tours in the year in respect of tour directors’ fees. Details of the directors’ expenses and related party transactions are disclosed in the notes to the accounts.

The pay of the subsidiary directors is reviewed annually by the trustees. Salaries are periodically benchmarked to ensure that the remuneration set is fair and in line with that generally paid for similar roles.

In March 2023, following the retirement of Paul Barnes as general secretary of the Charity, Christine Berry was appointed part-time on an interim basis of 12 months, to the general secretary role. This interim appointment was extended for a further 12 months at the AGM in 2024. Her role was not remunerated, and she retired from being a member of the trustee board at the AGM in 2025.

Organisational structure and decision making

The Association for Cultural Exchange is governed by the trustees, whose names are given on page 1. The board of trustees, which can have up to 10 members, governs the Charity. The board typically meets four to six times a year. Historically a General Secretary has been appointed by the trustees to manage the day-to-day operations of the Charity in conjunction with other members of the senior team. This role is currently not filled with its previous responsibilities being delivered in other ways.

Risk Management

Following the comprehensive risk analysis undertaken in 2023, the trustees reviewed the risk register in 2025. They are satisfied that appropriate measures are in place to mitigate those risks as far as possible. During 2026 it is planned to update the format of the register and review once again all risks.

At Stapleford Granary, the health and safety of staff, performance artists and the general public on site is a key risk issue. Emergency procedures, including public evacuation of the buildings, are tested and further strengthened as circumstances require. We have acquired a defibrillator on site and additional equipment to assist individuals with a disability to vacate the buildings in case of emergency. Staff receive regular training in first aid, the use of equipment and other areas of risk. Reports are made at every trustee meeting and a full annual report on Health & Safety is also brought to the Board.

The Charity is primarily dependent on the ability of our main trading subsidiary, ACE Cultural Tours Ltd (Tours) to provide gift-aided income. A significant financial risk is represented by the inherent volatility of the travel sector and any negative impact of the ability of ACE Cultural Tours to deliver surpluses by way of gift-aid to the Charity. These risks range from geo-political issues and conflicts, operational disruption and environmental concerns to exchange rate fluctuations and rising travel costs which affect individuals’ decisions to travel. The reserves policy seeks to provide comfort for this strategic risk. In addition, to reduce the reliance on Tours, the trustees continue to take steps to build up the revenue-generating activities undertaken by the Charity itself and via its other trading subsidiary, Stapleford Granary Ltd, and are in the process of developing a fundraising strategy.

Provision of adequate on-site parking for all is another risk to the activities of the charity which is becoming more pressing. It also places limitations on business opportunities for Stapleford Granary Ltd to generate income.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Though many visitors are local and do not require parking, the increasing reputation of the charity draws people from a wider catchment. In this regard, the charity’s success with the site being busy on a daily basis and a significantly increased footfall brings additional challenges. The trustees are actively seeking solutions to this issue.

The ongoing risk of cybersecurity breaches means that internal controls and preventative measures to reduce the risk of a breach and mitigate the risk of fraud are regularly reviewed.

Information on fund raising practices

As has been stated, the Charity does not currently rely on fund raising as a major source of income, nor does it employ or engage professional fund raisers. To date the Charity has, from time to time, engaged with interested parties who may wish to support our work in the form of donations or legacies.

The Charity does not currently receive funding from any trusts and foundations, nor does it receive any public subsidy. In developing its fundraising strategy, the Charity is committed to avoiding any intrusive fundraising approaches and would never apply undue pressure to donate. It will abide by good governance principles as set out by the Charity Fundraising Regulator (of which it is now a member) and the Charity Commission.

TRUSTEES' RESPONSIBILITIES STATEMENT

The trustees (who are also directors of The Association for Cultural Exchange Limited for the purposes of company law) are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Parent Charity and the Group and of the incoming resources and application of resources are included in the income and expenditure of the Group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Charity and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Parent Charity and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

DISCLOSURE OF INFORMATION TO AUDITOR

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

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

Lesley Margaret Thompson Trustee

Date: 18 May 2026

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED

OPINION

We have audited the consolidated financial statements of The Association for Cultural Exchange Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 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 consolidated 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 consolidated 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 consolidated 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.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the consolidated financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the consolidated 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 consolidated 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 consolidated 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:

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.

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:

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE 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 consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated 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 consolidated 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 consolidated financial statements.

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

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

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

As a result of the above risk assessment procedures we identified the greatest risk of material misstatement on the financial statements arising from irregularities and fraud to be within the potential for management to override controls together with the risk of fraudulent revenue recognition. We considered the risk of fraudulent revenue recognition to be most prevalent in the completeness of revenue from donations and legacies and cut-off of tours revenue. In response to these identified risks, we designed procedures which included, but were not limited to:

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the consolidated 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.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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.

Michael Hewett (Senior Statutory Auditor)

for and on behalf of

PEM Audit Limited

Registered Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 18 May 2026

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Trading activities
6
Investments
7
TOTAL INCOME
EXPENDITURE ON:
Raising funds:
8,9
Trading activities
Investment management
Charitable activities
10,11
TOTAL EXPENDITURE
NET (EXPENDITURE)/INCOME
BEFORE NET GAINS ON
INVESTMENTS
Net gains on investments
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2025
£
15,834
101,804
7,306,632
159,742
7,584,012
7,060,037
23,807
591,398
7,675,242
(91,230)
183,098
91,868
7,393,165
91,868
7,485,033		 Restricted
funds
2025
£
23,329
-
-
-
23,329
-
-
2,000
2,000
21,329
-
21,329
106,389
21,329
127,718		 Total
funds
2025
£
39,163
101,804
7,306,632
159,742
7,607,341
7,060,037
23,807
593,398
7,677,242
(69,901)
183,098
113,197
7,499,554
113,197
7,612,751		 Total
funds
2024
£
7,805
101,593
7,241,692
147,823
7,498,913
6,774,250
22,079
582,644
7,378,973
119,940
143,596
263,536
7,236,018
263,536
7,499,554

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

The notes on pages 24 to 49 form part of these financial statements.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2025

Note
FIXED ASSETS
Tangible assets
15
Investments
17
Investment property
16
CURRENT ASSETS
Stocks
18
Debtors
19
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
20
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
21
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
23
Unrestricted funds
23
TOTAL FUNDS		 4,274
496,845
2,391,606
2,892,725
(1,642,846)		 2025
£
3,289,889
2,278,320
794,663
6,362,872
1,249,879
7,612,751
-
7,612,751
127,718
7,485,033
7,612,751		 4,378
548,573
2,170,101
2,723,052
(1,464,903)		 2024
£
3,340,273
2,117,264
791,000
6,248,537
1,258,149
7,506,686
(7,132)
7,499,554
106,389
7,393,165
7,499,554

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025

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

Lesley Margaret Thompson Trustee

Date: 18 May 2026

The notes on pages 24 to 49 form part of these financial statements.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2025

Note
FIXED ASSETS
Tangible assets
15
Investments
17
Investment property
16
CURRENT ASSETS
Debtors
19
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
20
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
23
Unrestricted funds
23
TOTAL FUNDS		 59,083
247,880
306,963
(142,328)		 2025
£
3,233,584
3,368,321
794,663
7,396,568
164,635
7,561,203
127,718
7,433,485
7,561,203		 308,988
121,441
430,429
(123,869)		 2024
£
3,293,929
2,827,265
791,000
6,912,194
306,560
7,218,754
106,389
7,112,365
7,218,754

The Charity's net movement in funds for the year was £342,449 (2024 - £(32,707)).

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025

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

Lesley Margaret Thompson Trustee

Date: 18 May 2026

The notes on pages 24 to 49 form part of these financial statements.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by/(used in) operating activities
25
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net proceeds from investments
Purchase of investments
NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing
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
26		 2025
£
85,909
159,742
(32,249)
2,233,709
(2,215,330)
145,872
(10,276)
(10,276)
221,505
2,170,101
2,391,606		 2024
£
(108,145)
147,823
(169,103)
816,398
(800,797)
(5,679)
(10,786)
(10,786)
(124,610)
2,294,711
2,170,101

The notes on pages 24 to 49 form part of these financial statements

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

1. GENERAL INFORMATION

The Charity is a private company limited by guarantee and incorporated in England and Wales. The members of the Charity are the Trustees named on page 1 together with one nominated representative of the family of the founder. If the Charity is wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

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 Association for Cultural Exchange Limited meets the definition of a public benefit entity under FRS 102 and the Group is a public benefit group. 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 or Statement of Cash Flows in these financial statements.

The accounts are presented in sterling £, rounded to the nearest £1.

2.2 GOING CONCERN

The operations of the Group have continued to improve favourably during 2025, especially that of the Charity’s travel subsidiary, ACE Cultural Tours, which has had another profitable year. This has resulted in a further £250,000 of the outstanding loan being repaid during 2025, clearing all outstanding balances.

The Charity continues to provide a small amount of financial support for Stapleford Granary Limited. These activities are ancillary to the objectives of the Charity. They have been instrumental in attracting increased footfall to the site, thereby developing engagement with the charitable activities on offer.

Having reviewed budgets and forecasts for 2026-2028, the Trustees are confident that the Group will have sufficient resources to support its public benefit activities and to meet its liabilities as they fall due in the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

2. ACCOUNTING POLICIES (CONTINUED)

2.3 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 Group 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.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.4 INCOME

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

Performance and event income from ticket sales is recognised on the date of the performance. Income received in respect of events taking place in subsequent years is deferred and included within creditors as accruals and deferred income.

Income from the sale of food, beverages and merchandise is recognised at the point of sale.

Tours income is recognised on the date of departure of the relevant tour. Income received in respect of tours taking place in subsequent years is deferred and included within creditors as accruals and deferred income.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Dividends are recognised once the Charity has been notified by investment advisers that a dividend has been received into the investment portfolio.

Donation income is recognised when received or before receipt if it becomes reasonably certain that the donation will be received and the value of the income can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the Group is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Group has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Group, or the Group is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Other income is recognised when it is received provided that any goods or services that the Group is contracted to supply in respect of such income have been provided.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

2. ACCOUNTING POLICIES (CONTINUED)

2.5 EXPENDITURE

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

Trading costs are those incurred by the Group's trading subsidiaries including the provision of cultural tours and the costs of running a café. Costs of generating funds comprise fees paid to investment managers and an element of staff time which is involved in managing investments.

Charitable activities are costs incurred on the Group's educational operations, performances, and events, including support costs and costs relating to the governance of the Charity apportioned to charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the Group and include central costs. Governance costs are those incurred in connection with administration of the Group and compliance with constitutional and statutory requirements.

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

Irrecoverable VAT is included as an expense within support costs.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

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

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

2. ACCOUNTING POLICIES (CONTINUED)

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold land - Not depreciated - Freehold property 1% straight line on the buildings element - Plant and machinery Straight line over 10-15 years - Fixtures and fittings Straight line over 10 years - Office equipment Straight line over 3 or 5 years Musical instruments - Straight line over 20 years

2.7 INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Investment property is carried at fair value determined annually by the trustees. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities. Where a property previously held within tangible fixed assets is let to a third party, it is transferred to investment property and revalued.

Investments in subsidiaries are valued at cost less provision for impairment.

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 six months or less from the date of acquisition or opening of the deposit or similar account.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

2. ACCOUNTING POLICIES (CONTINUED)

2.10 LIABILITIES AND PROVISIONS

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

Liabilities are recognised at the amount that the Group 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.

2.11 FINANCIAL INSTRUMENTS

The Group 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.

The Group uses forward exchange contracts to reduce exposure to foreign exchange risks and as such consider these to be 'hedges'. Gains and losses on instruments used for hedging are recognised at fair value at the end of the year with changes in fair value recognised in the Consolidated Statement of Financial Activity.

2.12 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 Consolidated Statement of Financial Activities.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

2. ACCOUNTING POLICIES (CONTINUED)

2.13 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.14 PENSIONS

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

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.

Critical accounting estimates and assumptions:

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

Valuation of investment properties

Investment property has been valued based on rental yields of properties with similar characteristics. The value derived using this method has been compared with the valuations of similar properties to ensure it is reasonable and proportionate.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2025
£
Donations
15,834
Legacies
-
15,834
TOTAL 2024
7,805		 Restricted
funds
2025
£
21,000
2,329
23,329
-		 Total
funds
2025
£
36,834
2,329
39,163
7,805		 Total
funds
2024
£
7,805
-
7,805

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2025
£
Performances and events
101,804
TOTAL 2024
101,593		 Total
funds
2025
£
101,804
101,593		 Total
funds
2024
£
101,593

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

6. INCOME FROM TRADING ACTIVITIES

Income from non charitable trading activities

Unrestricted
funds
2025
£
Bar, café and conferences
426,557
Tours
6,880,075
7,306,632
TOTAL 2024
7,241,692		 Total
funds
2025
£
426,557
6,880,075
7,306,632
7,241,692		 Total
funds
2024
£
361,679
6,880,013
7,241,692

7. INVESTMENT INCOME

Unrestricted
funds
2025
£
Rental income
93,582
Investment income
28,516
Bank interest
37,644
159,742
TOTAL 2024
147,823		 Total
funds
2025
£
93,582
28,516
37,644
159,742
147,823		 Total
funds
2024
£
59,790
44,072
43,961
147,823

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

8. EXPENDITURE ON RAISING FUNDS

TRADING EXPENSES

Unrestricted
funds
2025
£
Tour expenses
5,420,323
Other trading expenses
308,028
Wages and salaries
1,157,486
National insurance
110,856
Pension costs
46,820
Depreciation
16,524
7,060,037
TOTAL 2024
6,774,250		 Total
funds
2025
£
5,420,323
308,028
1,157,486
110,856
46,820
16,524
7,060,037
6,774,250		 Total
funds
2024
£
5,174,561
423,503
1,014,881
90,884
53,530
16,891
6,774,250

9. INVESTMENT MANAGEMENT COSTS

Unrestricted
funds
2025
£
Investment management fees
15,092
Staff time spent managing investments
8,715
23,807
TOTAL 2024
22,079		 Total
funds
2025
£
15,092
8,715
23,807
22,079		 Total
funds
2024
£
13,302
8,777
22,079

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

10. ANALYSIS OF GRANTS

Education
TOTAL 2024		 Grants to
Institutions
2025
£
-
500		 Grants to
Individuals
2025
£
2,000
-		 Total
funds
2025
£
2,000
500		 Total
funds
2024
£
500

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Performances and events
Education
TOTAL 2024		 Activities
undertaken
directly
2025
£
258,833
-
258,833
245,892		 Grant
funding of
activities
2025
£
-
2,000
2,000
500		 Support
costs
2025
£
328,060
4,505
332,565
336,252		 Total
funds
2025
£
586,893
6,505
593,398
582,644		 Total
funds
2024
£
577,479
5,165
582,644

Page 33

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF DIRECT COSTS

Performances
and events
2025
£
Staff costs
139,646
Event expenses
82,403
Printing, stationery, newsletters and promotion
22,454
Computer expenses
10,477
Bank charges
3,853
Currency (gain)/loss
-
258,833
TOTAL 2024
245,892		 Total
funds
2025
£
139,646
82,403
22,454
10,477
3,853
-
258,833
245,892		 Total
funds
2024
£
83,848
96,230
49,922
11,859
4,061
(28)
245,892

ANALYSIS OF SUPPORT COSTS

Staff costs
Printing, stationery, newsletters and promotion
Audit and accountancy fees (governance)
Administration, finance and IT
Depreciation
Professional fees and costs (governance)
TOTAL 2024		 Performances
and events
2025
£
82,647
27,560
18,825
129,990
66,111
2,927
328,060
331,587		 Education
2025
£
4,505
-
-
-
-
-
4,505
4,665		 Total
funds
2025
£
87,152
27,560
18,825
129,990
66,111
2,927
332,565
336,252		 Total
funds
2024
£
87,773
152
16,775
153,927
68,565
9,060
336,252

Page 34

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

12. TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. The tax charge relates to the subsidiary, ACE Cultural Tours Limited.

13. AUDITORS' REMUNERATION

2025 2024
£ £
Auditor's remuneration - audit 21,280 20,425
Fees payable to the Charity's auditor in respect of:
Auditor's remuneration - other services 8,105 7,685

The audit fee for the Charity was £11,825 (2024 - £11,350). Non-audit services for the Charity were £5,890 (2024 - £3,870) including tax of £2,920 (2024 - £2,800)

14. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2025
£
1,357,329
137,098
56,248
1,550,675		 Group
2024
£
1,166,719
111,840
61,134
1,339,693		 Charity
2025
£
199,843
26,242
9,428
235,513		 Charity
2024
£
151,838
20,956
7,604
180,398

The average number of persons employed by the Charity during the year was as follows:

Charitable activities
Trading		 Group
2025
No.
4
56
60		 Group
2024
No.
3
35
38		 Charity
2025
No.
4
-
4		 Charity
2024
No.
3
-
3

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

14. 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 - 1
In the band £70,001 - £80,000 2 2
In the band £90,001 - £100,000 1 1

Within the parent charity, 2 employees received remuneration within the band £70,001 to £80,000.

The Group considers its key management personnel comprise the Trustees, the Stapleford Granary CEO, The Stapleford Granary Business Development Manager, the General Secretary and the directors of the wholly owned subsidiaries, ACE Cultural Tours Limited and Stapleford Granary Limited (2024: the Trustees, the Stapleford Granary CEO, the General Secretary and the directors of the wholly owned subsidiaries, ACE Cultural Tours Limited and Stapleford Granary Limited).

During the year, two trustees (2024 - three) received fees and reimbursement of expenses in their capacity as tour directors totalling £53,083 (2024 - £29,628).

The total employment benefits including employer's national insurance and pension contributions of the key management personnel for the Group was £289,637 (2024 - £298,742), of which the Charity was £174,304 (2024 - £93,300).

Trustee board expenses paid on behalf of all trustees to cover meeting expenses totalled £613 (2024 - £1,473).

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

15. TANGIBLE FIXED ASSETS

GROUP

COST
At 1 January 2025
Additions
Disposals
At 31 December 2025
DEPRECIATION
At 1 January 2025
Charge for the year
On disposals
At 31 December 2025
NET BOOK VALUE
At 31 December 2025
At 31 December 2024		 Freehold
property
£
3,286,275
-
-
3,286,275
265,189
28,724
-
293,913
2,992,362
3,021,086		 Plant and
machinery
£
257,600
-
-
257,600
116,617
17,941
-
134,558
123,042
140,983		 Fixtures,
fittings &
instruments
£
593,970
32,249
(114,201)
512,018
415,766
35,968
(114,201)
337,533
174,485
178,204		 Total
£
4,137,845
32,249
(114,201)
4,055,893
797,572
82,633
(114,201)
766,004
3,289,889
3,340,273

Page 37

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

15. TANGIBLE FIXED ASSETS (CONTINUED)

CHARITY

COST
At 1 January 2025
Additions
At 31 December 2025
DEPRECIATION
At 1 January 2025
Charge for the year
At 31 December 2025
NET BOOK VALUE
At 31 December 2025
At 31 December 2024		 Freehold
property
£
3,286,275
-
3,286,275
265,189
28,724
293,913
2,992,362
3,021,086		 Plant and
machinery
£
257,600
-
257,600
116,617
17,941
134,558
123,042
140,983		 Fixtures,
fittings &
instruments
£
325,748
5,765
331,513
193,888
19,445
213,333
118,180
131,860		 Total
£
3,869,623
5,765
3,875,388
575,694
66,110
641,804
3,233,584
3,293,929

Included in freehold property held by the Group and Charity is freehold land at an estimated cost of £400,000 (2024 - £400,000), which is not depreciated.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

16. INVESTMENT PROPERTY

GROUP AND CHARITY

VALUATION
At 1 January 2025
Additions
At 31 December 2025		 Freehold
investment
property
£
791,000
3,663
794,663

Investment property is carried at fair value determined annually by the Trustees. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.

17. FIXED ASSET INVESTMENTS

GROUP
VALUATION
At 1 January 2025
Additions
Disposals (proceeds £2,233,709; realised gain £137,185)
Revaluations
Cash movement
AT 31 DECEMBER 2025		 Listed
investments
£
2,100,852
2,220,568
(2,096,524)
45,913
-
2,270,809		 Uninvested
cash
£
16,412
-
-
-
(8,901)
7,511		 Total
£
2,117,264
2,220,568
(2,096,524)
45,913
(8,901)
2,278,320

Page 39

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

17. FIXED ASSET INVESTMENTS (CONTINUED)

CHARITY
COST OR VALUATION
At 1 January 2025
Additions
Disposals (proceeds £2,233,709; realised
gain £137,185)
Revaluations
Cash movement
AT 31 DECEMBER 2025		 Investments
in
subsidiary
companies
£
710,001
380,000
-
-
-
1,090,001		 Listed
investments
£
2,100,852
2,220,568
(2,096,524)
45,913
-
2,270,809		 Uninvested
cash
£
16,412
-
-
-
(8,901)
7,511		 Total
£
2,827,265
2,600,568
(2,096,524)
45,913
(8,901)
3,368,321

Listed investments

Listed investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report.

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

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments; however the subsidiary does use forward exchange contracts to reduce exposure to foreign exchange risks and as such consider these to be 'hedges'. Investments are held for their longer term yield and total return. Historic studies of quoted financial instruments have shown that short term volatility in any particular period will normally be corrected in the long-term.

Investment in subsidiaries

During the year, the Charity invested £330,000 and £50,000 into the shares of ACE Cultural Tours and Stapleford Granary, respectively. The investment was in newly issued ordinary shares with a nominal value of £1 each. The shares have full voting rights and entitlement to dividends.

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

17. FIXED ASSET INVESTMENTS (CONTINUED)

PRINCIPAL SUBSIDIARIES

The following were subsidiary undertakings of the Charity incorporated in the UK:

Names Company Registered office or principal number place of business ACE Cultural Tours Limited 07058084 Stapleford Granary, Bury Road, Stapleford, CB22 5BP Stapleford Granary Limited 13766501 Stapleford Granary, Bury Road, Stapleford, CB22 5BP

Principal activity

International cultural tours operator Operating a café

Class of Holding Included in shares consolidation Ordinary 100% Yes Ordinary 100% Yes

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net assets/
£ £ / Surplus/ (liabilities)
(Deficit) for £
the year
£
ACE Cultural Tours Limited 6,911,577 6,680,383 231,194 1,127,763
Stapleford Granary Limited 426,913 442,669 (15,756) 13,786
TOCKS
Group Group
2025 2024
£ £
Café consumables 4,274 4,378

18. STOCKS

Café consumables

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

19. DEBTORS

DUE AFTER MORE THAN ONE YEAR
Amounts owed by group undertakings
DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2025
£
-
-
8,726
-
11,122
476,997
496,845		 Group
2024
£
-
-
3,527
-
18,984
526,062
548,573		 Charity
2025
£
-
-
8,400
42,069
-
8,614
59,083		 Charity
2024
£
250,000
250,000
2,266
36,500
12,444
7,778
308,988

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Trade creditors
Amounts owed to group undertakings
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2025
£
6,856
58,922
-
-
66,986
40,298
1,469,784
1,642,846		 Group
2024
£
10,000
63,248
-
1,865
69,749
20,902
1,299,139
1,464,903		 Charity
2025
£
-
7,756
56,869
-
34,385
7,200
36,118
142,328		 Charity
2024
£
-
9,474
52,495
-
19,951
-
41,949
123,869

In July 2020, a £50,000 bounce back loan was obtained. Interest is charged at 2.5% per annum. For the first 12 months, interest was settled by the UK Government and no repayments of capital were due. Since July 2021 interest and capital repayments are due in equal monthly instalments over a 5-year period. The loan is due to be settled in full by July 2026. The ageing analysis of this loan is disclosed in note 21.

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THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

Deferred income at 1 January 2025
Resources deferred during the year
Amounts released from previous periods		 Group
2025
£
1,180,284
1,402,037
(1,180,284)
1,402,037		 Group
2024
£
1,301,252
1,180,284
(1,301,252)
1,180,284		 Charity
2025
£
4,213
13,453
(4,213)
13,453		 Charity
2024
£
-
8,400
(4,187)
4,213

The Group receives income in advance of future tours, which is carried forward and recognised on the dates the tours depart. Ticket sales in respect of future courses and events are also carried forward and recognised on the dates the events take place.

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group
2025 2024
£ £
Bank loans - 7,132

In July 2020, a £50,000 bounce back loan was obtained by ACE Cultural Tours. Interest is charged at 2.5% per annum. For the first 12 months, interest was settled by the UK Government and no repayments of capital were due. Since July 2021 interest and capital repayments are due in equal montly instalments over a 5-year period. The loan is due to be settled in full by July 2026. The ageing analysis of this loan is disclosed below.

Included within the above are amounts falling due as follows:

BETWEEN ONE AND TWO YEARS
Bank loans
22.
GRANTS ACCRUED
Grants accrued b/fwd
Grants committed
Grants paid		 Group
2025
£
-
2025
£
-
2,000
(2,000)
-		 Group
2024
£
7,132
2024
£
-
14,595
(14,595)
-

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Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

23. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Property fund
Subsidiary support
fund
GENERAL
FUNDS
General funds
Subsidiary funds
TOTAL
UNRESTRICTED
FUNDS
RESTRICTED
FUNDS
Beryl Wallis
Legacy
Mariann Bienz
Ann Barrett
TOTAL OF
FUNDS		 Balance at 1
January
2025
£
4,084,929
250,000
4,334,929
2,067,434
990,802
3,058,236
7,393,165
106,389
-
-
106,389
7,499,554		 Income
£
-
-
-
245,522
7,338,490
7,584,012
7,584,012
2,329
11,000
10,000
23,329
7,607,341		 Expenditure
£
(66,111)
-
(66,111)
(486,079)
(7,123,052)
(7,609,131)
(7,675,242)
-
-
(2,000)
(2,000)
(7,677,242)		 Transfers
in/out
£
9,428
(250,000)
(240,572)
305,262
(64,690)
240,572
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
183,098
-
183,098
183,098
-
-
-
-
183,098		 Balance at
31
December
2025
£
4,028,246
-
4,028,246
2,315,237
1,141,550
3,456,787
7,485,033
108,718
11,000
8,000
127,718
7,612,751

Page 44

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

23. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Property fund
Subsidiary support
fund
GENERAL
FUNDS
General funds
Subsidiary funds
TOTAL
UNRESTRICTED
FUNDS
RESTRICTED
FUNDS
Beryl Wallis
Legacy
TOTAL OF
FUNDS		 UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Property fund
Subsidiary support
fund
GENERAL
FUNDS
General funds
Subsidiary funds
TOTAL
UNRESTRICTED
FUNDS
RESTRICTED
FUNDS
Beryl Wallis
Legacy
TOTAL OF
FUNDS		 Balance at
1 January
2024
£
3,909,904
500,000
4,409,904
2,067,922
551,803
2,619,725
7,029,629
206,389
7,236,018		 Balance at
1 January
2024
£
3,909,904
500,000
4,409,904
2,067,922
551,803
2,619,725
7,029,629
206,389
7,236,018		 Income
£
-
-
-
216,516
7,282,397
7,498,913
7,498,913
-
7,498,913		 Income
£
-
-
-
216,516
7,282,397
7,498,913
7,498,913
-
7,498,913		 Expenditure
£
(68,565)
-
(68,565)
(467,010)
(6,843,398)
(7,310,408)
(7,378,973)
-
(7,378,973)		 Expenditure
£
(68,565)
-
(68,565)
(467,010)
(6,843,398)
(7,310,408)
(7,378,973)
-
(7,378,973)		 Transfers
in/out
£
144,090
(250,000)
(105,910)
205,910
-
205,910
100,000
(100,000)
-		 Gains/
(Losses)
£
99,500
-
99,500
44,096
-
44,096
143,596
-
143,596		 Balance at
31
December
2024
£
4,084,929
250,000
4,334,929
4,409,904 -
2,067,922
551,803		 216,516
7,282,397		 2,067,434
990,802
3,058,236
2,619,725 7,498,913
7,393,165
7,029,629 7,498,913
206,389
7,236,018		 -
7,498,913		 -
(7,378,973)		 106,389
7,499,554

Page 45

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

23. STATEMENT OF FUNDS (CONTINUED)

DESIGNATED FUNDS

Property Fund

This fund represents the net book value of the Charity's freehold and investment property, including plant. The transfer from General Funds represents the additions in the year.

Subsidiary Support Fund

This fund represents the carrying value of long term loan made to its subsidiary ACE Cultural Tours Limited which is not freely available to the Charity. The loan ensures the long term security and return to pre-pandemic levels of the subsidiary's activities. The transfer out represents the £250,000 repayment made during the year.

Subsidiary Funds

This fund represents the net assets held in the subsidiaries ACE Cultural Tours Limited and Stapleford Granary Limited.

RESTRICTED FUNDS

Beryl Wallis Legacy

This fund contains the legacy from the estate of Beryl Wallis. This legacy is to be used in the area of classical music.

Mariann Bienz

Donation from Mariann Bienz (Honorary President) to fund the Tiny Concerts Project, a co-production between Stapleford Granary Arts Centre and Goldfield Productions. Tiny Concerts are 45 minute classical music touring events, perfectly pitched for primary schools and for family shows at festivals and venues.

Ann Barrett

Donation from the outgoing Honorary President to fund tour scholarships.

Page 46

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2025
£
Tangible fixed assets
3,289,889
Fixed asset investments
2,278,320
Investment property
794,663
Current assets
2,765,007
Creditors due within one year
(1,642,846)
TOTAL
7,485,033
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted
funds
2024
£
Tangible fixed assets
3,340,273
Fixed asset investments
2,117,264
Investment property
791,000
Current assets
2,616,663
Creditors due within one year
(1,464,903)
Creditors due in more than one year
(7,132)
TOTAL
7,393,165		 Restricted
funds
2025
£
-
-
-
127,718
-
127,718
Restricted
funds
2024
£
-
-
-
106,389
-
-
106,389		 Total
funds
2025
£
3,289,889
2,278,320
794,663
2,892,725
(1,642,846)
7,612,751
Total
funds
2024
£
3,340,273
2,117,264
791,000
2,723,052
(1,464,903)
(7,132)
7,499,554
Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL

Page 47

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

25. 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:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
(Profit)/loss on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		 Group
2025
£
113,197
82,633
(183,098)
(159,742)
-
104
51,728
181,087
85,909		 Group
2024
£
263,536
85,457
(143,596)
(147,823)
1,246
215
(48,805)
(118,375)
(108,145)

26. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
27.
ANALYSIS OF CHANGES IN NET DEBT
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
January
2025
£
2,170,101
(10,000)
(7,132)
2,152,969		 Group
2025
£
2,391,606
Cash flows
£
221,505
3,144
7,132
231,781		 Group
2024
£
2,170,101
At 31
December
2025
£
2,391,606
(6,856)
-
2,384,750

Page 48

Docusign Envelope ID: EEC8BC8B-6E9F-86E6-82D4-D2DE735EC949

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

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

28. PENSION COMMITMENTS

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £56,248 (2024 - £61,134). Contributions totalling £191 (2024 - £177) were payable to the fund at the balance sheet date and are included in creditors.

29. RELATED PARTY TRANSACTIONS

During the year, the Charity recharged its subsidiary, ACE Cultural Tours Limited, £46,000 (2024 - £30,000) in respect of rent, heat, light and power expenses. During the year, the Charity was charged by its subsidiary, ACE Cultural Tours Limited, £3,000 (2024 - £6,000) in respect of office support costs.

As a result of the Covid-19 pandemic, the Charity loaned £1,000,000 to ACE Cultural Tours Limited in 2022. During the year, £250,000 of this loan was repaid, resulting in the loan being fully repaid. No interest was incurred during 2025 (2024 - £7,539).

As at 31 December 2025, £56,869 (2024 - £215,120 due from ACE Cultural Tours) was due to ACE Cultural Tours Limited.

During the year, the Charity recharged its subsidiary, Stapleford Granary Limited, £15,500 (2024 - £10,000) in respect of rent and utilities. At the year-end, a balance of £42,069 (2024 - £36,500) was due from Stapleford Granary Limited. Stapleford Granary Limited paid loan interest amounting to £450 (2024 - £603) to the Charity. No amounts were paid for the hire of rooms for conferences (2024 - £14,500).

During 2025, ACE Cultural Tours made a gift aid donation to the Charity amounting to £444,690 (2024: £nil).

During the year, the Charity invested £330,000 and £50,000 into the shares of ACE Cultural Tours and Stapleford Granary, respectively (2024: £nil).

Two (2024 - three) trustees (Paul Jackson and Sarah Burles) received fees and expense reimbursements for services rendered in their capacity as tour directors and this is disclosed in note 14.

Total donations received from Trustees/Honorary Presidents during 2025 amounted to £35,400 (2024: £nil).

Page 49