Company regi$tration number 149755B IEngland and Wales) Charity registration number 280428 IEngland and Walès) THE SWEDISH FOLK HIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 THE SWEDISH FOLK HIGH SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Trustèès P Sanders N Wescombe E Ingvarssc C Olsson S Ritson (Appointed 10 December 20251 (Appointed 10 Dèeèmber 20251 K Yazgan Secretsry A Thatcher Country of Incorporatlon Unite(l Kingdom IEngland and Wales) 1497558 Chartty reglstratlon England and Wales 280428 Regl¥t0￿d offlc Loxdale Locks Hill P(ytslade Easl Sussex BN412LA Audltor W8St & B8rry Limit8d Nile House Nile Street Brighton BN1 1HW Bankgrj Nalwesl Bank PLC Westem Avenue Chaiham M81itirne Chatham ME4 4RT THE SWEDISH FOLK HIGH SCHOOL CONTENTS Page Trustees report Statement ol trusteès responsibilitiès Independent auditor's report Statement of financial activities Stslement ol fin8n¢ial p0511ion 10 ststemtrnt ol ¢ash flows Notès to th8 finanoal statèmants 12-21 THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEAIBER 2025 The tnjslees present their report and finanaal slalements for ihe year ended 31 December 2025. Please refer to Legal and Administrabve Inf0M￿tIOn page for charity ststutory infomiation. The finanri81 stat8ments h8v8 been prepared in ac￿rd￿n￿ the 8cmJnting rMAi¢i9$ $8t out in note 1 to th8 financial statements and comply with th8 chanty's Memorandum and Articles of Association, the Comp3nie5 Act 2006 and Accounting and Reporting by Charities." Slalement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Repo￿"n9 Standard applicable in the UK and Republic ol Ireland IFRS 1021. (effective 1 January 20191. Objectives and activities Thè sd)ool was èstablish￿ for the advancèmènl. promolion arwj furtherance ol public education. The charity's rnain objective is the provision of high-qualily educalional courses for foreign students. The policy continue5 to be to utilise the funds supplied by Folkhogskola Braheskolan and the charitys assets in the most efficient and effective manner for the benerrt of Ihe students. Th& involvemènt ol Folkhogskola Brahèskolan enables thè charty lo concentrat$ on the $dUca￿On of thg stud&nts. Th& charity also sup￿10$ conler•nc• and sports facilil¢•s to the local communjty. The objectives ol The Swedish Folk High Schcd lor the year were io. Get excellent leedback in our Brilish Countyl inspection. Continue lo provid8 high quality edueational ¢ourw for fowign students and lo work on edu¢alional Improvements. Rewrite and redesign our websito and markebng infomiat*Jn ready for ujncarted promtions In 2026. Update and improve the condition ol the buildings lor sludent and staff comfort. Continue lo offer a wide range of Continual Prolessional Development options lor all staff. Do the provisional reports and building surveys needed to siarl ¢he building work on the first stage ol the on-81te residential cenlre. The trustees have paid due regard lo guKl8nce is3ue(I by Ihe Charity Commission in deciding what activities the Charity Should undertake. Thè charitablè company's policy is to eonsult and diseuss wth èmploy￿ matt•ts likaly to affacl ampl0￿*$, interests. Inlorrnation ol matters of con￿rn lo employees is given through regular meetings. inlomation bulletins and reports which seek to achieve a cornrnon awareness on the part ol all employees of the financial and economic factors affecting the performance ol the charity. Applications for employment by disa￿ed persons am ah¥ays fully considered, bearing in mind the aptitudes of the applicant concemed. In the event of members ol stsff becoming disabled, every effclrt is made to ensure that their employment within the charitsble company continues and Ihal the appropnate Iraining is arranged. It is the policy ol the charitable company that the training. career developmenl and promotion of disabled persons should, as far as possible. be identical to that of other employees. strategic report The description undèr hoadings 'Achievèments and pèrfonnancè. and 'Financial revievl meèt thè company law requirements for the Iruslees to Fwesent a Strateg￿ report. THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2025 A¢hl•vom•nts and pèrfomianc• 2025 started off w811 with Loxdale welcorning alrnost the same amount of Swedish student5 as in 2024. How8v8r, the nurnber ol South American adult and teenage students was down. It was mostly down to the Chilean market. However, the winter course was lively and. in additional to the Chilean. Panamanian and Peruvians. we welcomed Unjguay students lor ihe first time. Loxdale received excellent leedback Irom the group leaders and students. All have rebooked for Winter 2026. The Uruguay agency is also booking a September 2026 group. The closed courses ol teenagers contirbued thr(xJghout lh8 Spring alon95ide our 8dtAIt prograrnm8s. The St￿11 of teaching adults in t)ne building and leenagers in the other (x)ntinues to wort well. The Swedish students who study at Loxdale C£￿tinUe to be from all soaal backgrounds including immigrants to Sweden, those with mild depression. autism or Aspergerfs. those with an incomplete secondary education. university sludents and mature students. Some have a range of mentsl health issues. and the school continued to provid8 rnonthly counselling sessions. sUp￿)rting them through regular meetings and tutorials and individualising 5UPPOrt whgn negded. Th6 Summer courses went very w611 with wonderful sludents. However, student numbers were severely down. MosUy caused by difficultses at one agency who had p￿bOoked groups and cancelled thern at short notice due to their few student numbers. Most of the EFL industry had fewer summer student numbers. One of the possible reasons are effect5 of Ihe Trump administrat￿ and their trade partner uncetsinty. Th6 EL Gazètte showèd that L0xd3￿ English Cènlrè 1$ in thé Top S Summèr Coursès 2025 in lèms of quality. During the summer, we were able to $upport 2 students from Ukraine %*ho had fled the war and needed English tuitbon. Loxdale Managed ¢0 recruit all the staff they needed and had a very succes8fv1 summer regarding staffing and 8C8demic work. All Ihe groups have re-booked for Summer 2026. Thg 8rili$h Council inspection wnl very well and due to oyr high Bri￿'sh Coun¢il $core$, Loxdalg wa$ told that we ar• now in th8 top 5% 01 all En91ish lan9ua9è téachin9 wovidèrs in thè UK. Wa were 8wBrd8d usè ol thè EL Gazette Centre ol Excell6nc6 logo. A priority of Ihe school for 2025 was to do some essential work ¢0 Ihe school and lacilib'es. The￿ were several 1005e tiles overhanging 8 walkway and an internal water leak which rneant thal we had to have this fixed. Once the roofers gol up ther8, il showed that many more were 8tt8ched to rotling timber and we h8d to do f8r more ext8nsiv8 work than wa'd plannad and bu¢J9èt8d on. The Auturnn terrn went well, albeit wth lower Swedish sbjdent numbers. Perrnission was given by Ihe Board to start phase one of our plan5 for a gocxy quality onsile residenty'al oentre. We want to double the nurnber of bedroorns Irorn S to 10 to seixjre regular accommodation in(x)rne. Most of the bedrooms would also h8V8 ensuit8 faalities. After appoiniing lh8 architecl, there were a number of surv8yS that have lo be done to ensure that Ihis is p0S￿ble. 0[￿ this was confirvned, we interviewed 4 building companies and appointed our preferred option. Planning pemission was given in November 2025 and the actual building work started 8 December 2025. Loxdale ha5 taken out a bank loan to pay for the building work. This was approved in N¢)vember 2025. The Swedish Folk High School continues to be a commitled member ol the English UK Speaal Interest Group for Young Learners and has improved its procedures and policies for working wilh vulnerable adults and children. Anna Thatcher, Principal is on the Board and organises training sessions for this group. Anna Thatcher is still involved with Suss8x Safeguarding, a dedicated Safe9U8rdin9 Group for18nguage schools in Brighton. The charity conb'nues to welcome requests from various chanties and members of the local communty to use the sports hall and conference lacilitses at discounted rales. THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2025 Flnanclal r•vl•w Th8 stst&m8nt of Financial Activities show5 a net defi￿t of £65.964 12024.. £49,280 defirytl, tot81 reserves stsnd 81 £1,008,45212024.. £1,074,416) and free reserves at £nil12024.. £35,192). The principal sources of income are the educalwjnal grant from Folkhogskola 8raheskolan supplemented by conference. rental, the Summer School. non•Swedish students. and dosed group income. The expenditure during the year continued to be applied to stsff costs and the premise5 running costs. supporting the objects'vgs. The present level of funding is consi¢Jere(l adequate lo support the continuation of The Swedish Folk High School and the Iruslees consider that the financial position of the charity is satisfactory. The total nurnber ol student weeks Iswedes, Summer and Intemational sludentsl. 025 3,313 024 ,658 023 .449 022 ,725 021 1.471 20 ,343 The Prinapal and Accounts Manager C￿lInUe io work together to react to maintsin cashflow for the school. As in 2024, the Board ¢onfirned thai their parent ¢omp8ny. Fc4kuniv#rsitetei, is in a strong finan¢i818ituatiorn and this should sèrv8 as A 9U8rant6é. Th&r& 1$ no thrèat lo Loxdal&'$ eontinuod woth (trvèr thè naxt yaar. The Iruslees plan to increase free reserves to support th8 future development of th6 chadty. Organisalional contrds include an annual review ol the controls over key financlal systems. The Iru5tees have as5es5ed the major risks lo which the d)arit8ble ¢(NnP8ny is exposed arnd ar? s8li$fi8d th81 syst¢m$ aro in pla¢9 to mitigatg ¢xw$ur& to Ihe major risks. Plans for future periods The main plan for 2026 is to finish the first stsge ol our ￿sidential Cen￿ by InC￿aS1ng the number of bedroorns trom 5 to 10 and improving lacililies from new kilchen and ensuiles. Other plans indude increasing the number ol students, esp8Ci811y Ihe internalion81 $tudent5. We have a well b(K)ked diary of dosed4Jroup cours95 throughoul the Wintor and Spring. Summer 2026 btM)kin9s have also started to (x)me in and l(x)k more promising than 2025. Structur•, govèrnaneè and manag•m•nt The charitabl8 cornpany is a company limited by guarantee and 1$ therefore governed by its Mgrnorandurn and Articlgs of Association. The trustees, who are also the directors for the purpose of company law, and vtho seNed during the year and up to the date of signature ol the financial statements We￿.. P Sanders N Wescombe E Ingvarsson C Olsson S Ritson K Yazgan IAppoinied 10 December 20251 {Apw)int8d 10 D8C8mber 20251 None of the trustees has any beneficial interest in the company. AJI ol the trustees a￿ members of the company and guarantee lo contribute £1 in the event of a winding up. THE SWEDISH FOLK HIGH SCHOOL TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2025 The eompanrfs Memorandum & Artides state that one-third of the ¢Jirectors must resign each year but each can be eligible for re-election should helshe and the Board wish it. In accordance with the charity's pri￿dU￿S. new tnjstees. with an interest in the marketing and success of the harity are norninated by Stiftelsgn Braheskdan. They are inducted ar￿ supported by the Ch8irrn8n. Two ngw mamb8rs ol the board startèd at th8 ènd of 2025. The trustees meet at least four tsmes a year to manage the charivs aflairs. At these meetings the current situation is discussed, along with the marketing pwss. finanoal position. major maintenance issues and funding. The Principal makes the day-to-day decisions in running the school and meets with one or more of the Board to discuss rnarkeling and major financi81 decisions at various times. Key m8n8gement r8muner8bon is sgt by the Trustegs. The ¢harity rtr¢eiv$s grant in¢om$ from Folkhogskola Braheskolan on a monthly basb. The Iruslees consider that the major risk to which the charity Is exposed is a ￿duCts.0￿ in grant funding. However, the increase in the number of international students. dosed course income and the development ol the surnrner young learner courses are COns￿ered svfficient lo mrtigate this risk. Audltor In accordance with the cornpanls artides. a resolution proposing that West & Bery Limited be reappointed as auditor ol the company wll be pul al a General Meeting. Dl¥clo¥ure of Inforrnatlon to audllor Each ol the trustees has confim)ed thal the￿ is no inforniat￿ of which they are aware which is relevant to the audit. bul of which the auditor is unaware. They have further confirmed thal they have taken appropriaie steps to identify such relevant infomalion and to eslablish Ihal the aud¢tor is aware of such information. The trustees report was approved by Ihe Board of Trustees. 0108O/rro P Sanders Trustee C OIs50n Trust Dale.. 6 Mar 2026 THE SWEDISH FOLK HIGH SCHOOL STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEAIBER 2025 The trustees, who are also the ¢Jirectots of The Swedish Folk High sch￿)1 lor the purpose of company law, are responsible lor preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom GenerallyAccepted Accounting Practicel. Company18w requires the tnJstee5 to prep8rg finanoal statements for e8ch fin8nryal year which give 8 true and fair view of the State of affairs of the chanty and ol the in(x)ming resourc85 and application of resourcès, in¢lLJding thè incomè and 6xpenditur8, of the chantabl8 company lot that y*ar. In preparing these financial ststements. Ihe Irustees are required to.. . select suitable auounting polioes and then apply them consistently- observe the methods and principles in Ihe Charibes SORP.. make judgements and esb'mates Ihat are reasonable and prudent., 5t8t8 wheth8r applicab18 UK Accounting Standards have begn fdlowed. subigct to any rnatgrial d8partures disclosed and explained in the financial slalemenls." and prepare the financial slalemenls on the going concem basis unless it is inappropriatè to presume that the charity will continue in operab'on. The Iruslees are responsible for keeping adequate accounting re(ords that disclose with reasonable accuracy at any time the financial posilion of the charity and enable Ihem to ensure thal the financial statemenis comply with the Cornpanie5 Act 2006. They are also responsi￿9 for 5aleguarding the asseis of ihe charity and hence for taking rèason8blè stèps lor thè pwvèntion and d¢t¢¢li¢)n of fraud and olhor irragulariti$$. THE SWEDISH FOLK HIGH SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH FOLK HIGH SCHOOL Oplnlon We have audited the ￿n￿n￿al statements of The Swedish Folk High Sth(x)r (the 'charity'l for the year 8nd8d 31 De￿rnber 2025 which comprise the staternent of ffinancial activitie5, the statement of financial posib"on, the statement of cash flows and Ihe notes lo the financial statements, induding a summary of significant accounting policies. The financial reporting framework that has been applied in Iheir p￿paratIOn is applicable law and United Kingdom Accounting Standards. induding Financial ReFM)rting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom GenerallyAc£epted Accounting Practice). In our opiniori, the financial 5tatements'. give a true and fair view of the state of the charitable CoMpan￿S affairs as at 31 December 2025 and of its incoming resources and application of resourcés. inc4uding its incJ)me and expenditure. for the year then ended.. have boen propèrty prepared in acccwdance wilh Unrt8d Kingdom Generally Accept8d AcC¢￿nting Practice., and have been prepared in a¢¢or