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2025-08-31-accounts

The Shaw Trust Limited Annual report and financial statements For the year ended 31 August 2025

Company No. 01744121 Charity No. in England and Wales 287785 Charity No. in Scotland SC039856

The Shaw Trust Limited

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Reference and administrative information

The Shaw Trust Limited Registered in the United Kingdom Company number 01744121 Charity number: England and Wales 287785 Charity number: Scotland SC039856 Registered office Black Country House Rounds Green Road Oldbury B69 2DG

Directors

Company Secretary Independent Auditor

O Benzecry (Chair) P M Baldwin A Coutinho A Hassall I Hughes C S Nicholson K C Ntumba O Oyesanya S M Pegge S D Shaw J Stewart C A Swabey C A McKinley Crowe U.K. LLP 2[nd] Floor 55 Ludgate Hill London EC4M 7JW

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Index
Chair’s Statement 3
Strategic Report 5
Directors’ Report 21
Independent Auditor’s Report 29
Consolidated Statement of Financial Activities 34
Group and Charity Balance Sheets 36
Group Statement of Cash Flows 38
Notes to the Financial Statements 40

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Annual report and financial statements for the year ended 31 August 2025

Chair’s Statement

This has been a year where the need for Shaw Trust’s work has never felt more important or urgent. Over the past year our services have supported more than 270,000 people to access and stay in good work. This includes young people navigating the care system, those who are NEET or at risk of disengaging from education and training, and those facing barriers to employment, particularly where their mental health is concerned.

As a charity, our sole motivation is helping these individuals achieve their full potential through the pathways we provide, and we continue to invest back into impact, multiplying the effect of every pound spent. We have invested in becoming the ‘single front door’ to find the right pathway for people, integrating services around their needs, and by continuously driving insight and innovation.

Our employment support services continue to set the standard. We launched our first Connect to Work service in West London, delivering strong outcomes for the communities there. As a recognised IPS Centre of Excellence, we have continued to grow our IPS contracts, including those directly commissioned by the health service. Our IPS impact report published in February 2025 highlighted the difference our approach makes. The MSK Trailblazer with the West London Alliance to address economic inactivity associated with physical health by combining employment coaching with rapid access to NHS physiotherapy has demonstrated yet another pathway with the potential to scale.

Our local partnerships have grown in depth and reach. This year we channeled nearly £10m through 46 voluntary sector organisations and small and medium-sized enterprises. This strengthens local capacity and roots our support in the communities we serve. This approach was recognised with an 'outstanding' rating in the Supply Chain Partnership Standard - the first organisation to receive this new accreditation.

In September 2025, we moved from acting as a sponsor for Shaw Education Trust (SET) to being a strategic partner of a newly independent organisation. As the original sponsor, we have been pleased to play an important role in the development of SET over the last 11 years to create an education trust that could drive real change across schools and local communities. This is a significant milestone, reflecting the role Shaw Trust has played in supporting SET’s growth and the wider impact we aim to have by backing ambitious, values led organisations. There will be no impact on Unrestricted Reserves, for which we continue to improve a position of financial strength, but next year’s accounts will show a demerger of the two organisations, with their £207m of Restricted Reserves going into their own Group accounts.

We are also continuing to develop our Foundation as an important engine of innovation and impact. We have invested in the team and improved our ability to invest our charitable funds where need is greatest, testing new approaches and sharing learning to inform future policy. New services have been launched in Ealing, Harrow, and Somerset to help young people leaving care into employment, education, and training. Our pilot with Fortis Academy in Birmingham supported 30 young people with special educational needs to access work placements: a step too often out of reach for this group. Looking forward we are mobilising an innovation trial to create a service supporting NEET young people with health conditions who are not well served by current services. This trial will generate an evidence base to share with national and local government. Our full Impact Report is available here.

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Annual report and financial statements for the year ended 31 August 2025

None of this happens without the people who make it possible. Our thanks to those we serve, your commitment and the progression you make is why we do what we do. We are grateful to our commissioners and employer partners for the trust you have in us, and our deep appreciation to our colleagues, volunteers, and partners for all you do to make a difference every day.

Olly Benzecry Chair of the Board of Trustees 14 May 2026

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Strategic Report

The directors present their strategic report for The Shaw Trust Limited (‘Shaw Trust’) for the year ended 31 August 2025.

1. Charity Overview, Principal Activities and Objectives

Our Mission

Shaw Trust aims to provide pathways for individuals facing barriers to work to achieve their full potential.

Our Strategy

To deliver our mission we will:

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Annual report and financial statements for the year ended 31 August 2025

responsibility. We will look to create more opportunities for interns and apprentices from all backgrounds wherever possible as part of our commitment to social mobility.

The Market and Objectives and Performance for the Year

Shaw Trust provides a range of services through our impact areas of:

Supported by a range of additional services and programmes including Community and Retail Operations and Justice Rehabilitation.

Careers and Skills

The market remains dynamic, with a growing need for Shaw Trust services. We remain agile following the launch of Skills England in July 2024, the transfer of the skills agenda from the Department for Education (DfE) to Department for Work and Pensions (DWP) and the ongoing evolution in governmental policy e.g. the recently announced Independent Report into Young People and Work, to be led by the Right Honourable Alan Milburn.

Shaw Trust is well positioned to meet this demand, as we consolidate our offer through Local Skills Improvement Plans that are informed by commissioners and employer needs in the region. These plans address local skills shortages, using apprenticeships, supported internships and other skills programmes, while at the same time developing our Business-to-Business relationships and capabilities.

This year we have:

1 Note: though Shaw Trust consider this data accurate, it has not been officially published by the Department for Education.

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Children’s Homes

Demand for our services is significant, with mobilisation of new homes and growth into new regions both achieved and planned. Our particular focus is however on deepening existing services, helping young people in our care achieve the best employment, education and training outcomes during care and post-care. Achievements of note include:

Education

The Shaw Education Trust continued to operate 31 academies and one specialist college for almost 12,000 pupils aged 2 to 25 years. During the year control over Newfriars College ceased and the activities of Newfriars College are treated as a discontinued activity in these accounts.

All our schools deliver bespoke curricula which gives every young person the knowledge and skills they need for their futures. We continue to foster creativity, innovation, depth, and breadth in pupil/student learning by firing imaginations and fueling intellectual diversity.

During the year nine schools were Ofsted inspected with all receiving a rating of ‘Good’ or above.

Work, Wellbeing and Health

Work, Wellbeing and Health (WWH) delivers comprehensive support to individuals managing a range of mental and physical health conditions across a wide range of contracts.

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This support is grounded in the biopsychosocial model, which considers the complex interplay between biological, psychological, and social factors in health and wellbeing. Our approach to support enables individuals to improve their well-being and ability to overcome challenges they face at home and at work.

The individuals we support often present with complex needs, including severe mental health conditions, long-term physical health issues, learning disabilities, substance use challenges and other co-occurring conditions.

This division delivers a diverse portfolio of services designed to support individuals with health-related barriers to employment and independent living. These services include:

In addition to direct employment support, the division facilitates progression towards work through structured pathways such as work placements, supported internships, volunteering opportunities, and personalised guidance on independent living aids. These services are delivered through five dedicated social enterprise sites, as well as via the Accessibility service and the Living Made Easy service.

The division also includes a team of qualified clinical practitioners who provide specialist support to individuals managing their health conditions. This includes clinical assessments and the delivery of targeted interventions, such as counselling, to enable individuals to better manage their conditions and improve their overall wellbeing.

In the year, demand for our services continued to grow, with over 50,000 individuals accessing support. This growth was accompanied by the launch of several new initiatives, including:

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Key achievements include:

Other Services

Community and Retail Operations successfully acquired nine charity retail shops and a warehouse from Trussell Trust in November 2024. During the year, we operated a diverse network of 33 sites and piloted an online eBay store. Our shops and wider enterprise sites serve local communities by offering quality second-hand goods tailored to their varied needs, with different pricing options to ensure accessibility, as well as providing day opportunities, supported internships and work experience opportunities. Our warehouse helps generate additional revenue through donated goods, while our online platform enables us to reach a wider audience with specialised items that are not suitable for sale in-store.

Shaw Trust also works in the Justice sector, being committed to empowering individuals to make positive contributions to society and break the cycle of reoffending. During the year, this work included the delivery of the Education provision in HMYOI Feltham A and delivery of the Creating Future Opportunities (CFO) Evolution contract.

CFO was designed to enhance social inclusion among offenders and ex-offenders, particularly those considered most challenging to support within the justice system. We provide assistance to individuals preparing for life beyond incarceration,

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The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

including helping them disengage from crime, access training, and secure employment. Through our contracts, we supported over 3,052 new participants, delivering over 18,186 activities, leading to 638 education and training outcomes (accredited and non-accredited) and facilitated employment opportunities for more than 95 individuals.

The HMYOI Feltham Education contract delivers on-site education, training, career guidance, and resettlement support for young male offenders aged 15-18. This year, we worked with over 324 learners at Feltham, lower than the previous year due to a reduction in the number of children in custody. This resulted in more than 735 accredited achievements, including 29 GCSEs and 1 AS Level which combined consisted of 101 exam papers - the highest total in the Youth Estate.

Future plans

Careers and Skills

Children’s Homes

Recent publications have highlighted the challenges of the market such as the Children’s Wellbeing and Schools Bill (2025), Keeping Children Safe, Helping Families Thrive (2024), DfE’s Stable Homes, Built on Love Strategy (2023) and Josh MacAlister’s Independent Review of Children’s Social Care (2022).

In response, we will continue to build on our success to fix the system by targeting double-digit growth each year for the next three years, primarily through deployment of our award-winning strategic partnership model. We will also continue to work with the Shaw Trust Foundation and local authorities to expand our supported work experience and other post-care leaver support programmes. This will be achieved while we maintain our exceptional, above market average quality.

Education

As of 1 September 2025, The Shaw Education Trust (SET) ceased being controlled by Shaw Trust and has become an independent Company. SET currently forms the majority of the restricted funds of the Group.

Work, Wellbeing and Health

The rollout of Connect to Work remains ongoing, with dozens of contracts either in tendering or to commence. Winning and mobilisation of these contracts provides a significant opportunity for the organisation to grow and enter new geographies where

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cross-layering of our services can be developed. We will continue to grow and strengthen all service lines at the same time, in recognition of the strong demand for our services.

Other Services

For Community and Retail Operations the focus is on embedding operational excellence while benefiting from economies of scale following the onboarding of the new shops. For Justice, the goal is to win a significant foothold in the Commissioned Rehabilitative Services upcoming tender in order to grow into new services and geographies for our Justice division.

Our Values and Differentiators

Our values define who we are and how we work. They shape how we support each other, our participants, and how we make a difference together.

Our approach to our mission is defined by four differentiators that set us apart:

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2. Financial Performance

Net Income and Expenditure

. Financial Performance
et Income and Expenditure
Incoming resources
Net income before other recognised gains and losses
Depreciation and amortisation
Donations and asset transfers in SET
Adjusted net income before other recognised gains
and losses		 Year to
31 August
2025
£m
Year to
31 August
2024
£m
291.1
315.8
2.1
27.0
9.7
9.1
-
(21.9)
11.8
14.2

Incoming resources

The incoming resources for the Group have decreased by £24.7m year-on-year, to £291.1m. This has mainly been driven by SET, who had increased revenue in the prior year through additional academies with associated one-off donations of property (2024: £21.9m), in addition to the timing fluctuations of contracts ending in the current year and new contract mobilisations.

Total expenditure

During the year our total expenditure remained at £289.1m. Although there was a reduction in the level of charitable activity within contracts during the year we have maintained our cost base to ensure we are ready for the continued growth of our contracts within the Charity in the next few years.

Net movement in funds

Total funds have decreased by £0.8m (2024: increased £27.8m). This is after the deconsolidation of Newfriars College in the year which reduces restricted funds by £3.4m. Deconsolidation of Newfriars College occurred as at 31 March 2025 when the Shaw Education Trust was no longer deemed to have control of the entity.

Movement in Funds Unrestricted
Restricted		 Total
£m £m £m
The Shaw Trust Group operations 2.4 (0.3) 2.1
Net Movement in Funds (before pensions impact) 2.4 (0.3) 2.1
Deconsolidation of Newfriars College - (3.4) (3.4)
Actuarial gains and Net finance return on defined 0.2 0.3 0.5
benefit pension scheme
Net Movement in Funds 2.6 (3.4) (0.8)

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Balance Sheet

At the end of the financial year overall consolidated funds stood at £243.8m compared to £244.6m in the prior year.

Total current assets were £83.4m as at 31 August 2025, an increase from £76.8m in the prior year but are still mainly a reflection of standard movements in the working capital position with a significant proportion of the accrued income being invoiced in September 2025. Short-term creditors remained level at £39.7m (2024: £39.8m). The Group’s overall cash position decreased by £4.3m in the year to £27.3m, reflecting the result for the year, capital spend and the removal of Newfriars College cash balances.

Overall, working capital remained positive and in line with our key KPIs.

The decrease in tangible fixed assets of £8.5m was mainly driven by £4.9m of capital additions offset by £9.7m of depreciation charges and £2.9m removal of Newfriars College assets.

On 1 September 2025, SET moved out of the Group when Shaw Trust relinquished being the controlling Member. SET funds are all within restricted funds in the Group financial statements and post year end the restricted funds will therefore reduce by £207.1m.

Reserves policy

The reserves policy is based on the level of Free Reserves, being the total unrestricted funds less any designated funds. Due to the long-term nature of many of the contracts and associated assets and liabilities, the Trustees concluded that the measure should focus on reserves able to be used freely for the charity’s purpose.

The Trust’s Free Reserves are held in order to manage the risks to which the charity is exposed to in the course of its activities. The Trustees ensure that the charity is in a responsible and secure financial position to provide reliable services for our beneficiaries, to absorb unforeseen setbacks in the event of a significant financial downturn and to take advantage of opportunities that are in line with our charitable mission.

Reserves are underpinned by liquid cash balances, providing working capital funding for day-to-day operating costs, supporting the delivery of the Charity’s objectives in an efficient and cost-effective way.

The reserves policy is reviewed annually by the Trustees to take account of changes to the environment in which the Trust operates, and any other internal or external risk factors that might impact on the level of reserves required.

As of 31 August 2025, the Charity had Free Reserves of £33.3m (31 August 2024: £28.9m) as follows:

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Annual report and financial statements for the year ended 31 August 2025

At 31 Aug At 31 Aug
2025 2024
£m £m
Total Reserves 243.8 244.6
Less: Restricted funds (207.9) (211.3)
Less: Designated funds (relating to the (2.6) (4.4)
Foundation and fixed asset commitments)
Free Reserves 33.3 28.9

The current target is to maintain reserves in the range of two – four months of costs (being approximately £25m – £49m). The increase in Free Reserves is predominantly a reflection of the strong operating performance and demand for Shaw Trust’s services.

In addition to the suggested level of Free Reserves, the Charity’s policy stipulates a minimum level of cash holding requirement to meet the following scenarios, including:

Detailed review of the risk and stress testing has been undertaken to assess the risk of a significant contract loss and the mitigation steps available to management. The Trustees have considered the level of cash reserves required and consider it appropriate given the current resources and activities of the Charity.

Investment powers, policy and performance

Our investment managers are selected on the basis of reputation and adherence to environmental, social and governance issues. The investments are governed by investment policies which are reviewed by Trustees and the portfolio is designed to balance the objective of maximising investment returns against the risk and liquidity of the investments. The investment objective is to generate a return of CPI plus 3% over a time period of at least 10 years. In year performance has achieved a return of more than CPI plus 3%. Investment performance is monitored and reviewed against a number of benchmarks set by the Finance Committee.

The Charity’s long-term policy for its reserves is to balance the security of its funds available for investment with the need for liquidity to meet its obligations as they fall due, while obtaining the best yield that can be generated given the Charity’s risk appetite.

Pension Schemes

The principal pension scheme available to employees of Shaw Trust is a defined contribution scheme, administered by Standard Life. Contributions to this plan during the year totaled £2.5m (2024: £2.7m).

The Trust also participates in several active final salary pension schemes through its multi academy trust subsidiary. The two principal pension schemes are the Teachers' Pension Scheme England and Wales (TPS) for academic and related

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staff; and a number of Local Government Pension Schemes (LGPS) for non-teaching staff. Both are multi-employer defined benefit schemes and therefore accounted for as a defined benefit scheme. Contributions to these schemes during the year totaled £10.9m (2024: £9.8m).

In addition, the Group retains a funding obligation to several smaller final salary schemes, all of which are closed to new entrants. These are detailed in note 24 - Pension Commitments.

The final salary schemes remain subject to a formal triennial funding valuation, with the most recent completed being as at 31 March 2023. This showed a funding surplus of £6.4m, and in the majority of schemes future contributions were nil or had reduced.

Separate annual valuations of the schemes are carried out in accordance with ‘FRS 102: Employee Benefits’ in which different funding assumptions are applied. The FRS 102 valuation of the Charity’s pension schemes at 31 August 2025 showed an overall funding deficit of £0.6m (2024: deficit £3.8m).

In accordance with FRS 102, the surplus on individual schemes is not recognised as an asset, on the basis that future economic benefits are not deemed available to the Group.

The Charity monitors the size of the pension deficit and feels that there is sufficient income and cash flow in future years to service the requirement of these schemes. In addition, a significant review of pension exposure and risk is ongoing and continued during the year.

The Charity has exercised its agreement to exit the Gloucestershire Pension Fund following the end of the contract. This final salary scheme had been closed to new and existing members following a detailed review and consultation with members during 2020 and at the time a long-term repayment plan agreed with the provider. This transaction had no detriment to benefits for scheme members and significantly reduced the balance sheet risk and exposure to valuation fluctuations arising from future changes of actuarial assumptions.

3. Principal Risks and Uncertainties

Our approach to risk management

Risk is an accepted and necessary part of carrying on our business and we rely upon our risk management processes to appropriately balance risks against rewards. The Board of Trustees has overall responsibility for risk management and internal control, and the executive management team ensure that risk management plans are effectively communicated throughout the organisation.

The Board of Trustees review the Risk Appetite Statement on a minimum of an annual basis, and the risks and control effectiveness on a rolling quarterly cycle. The objectives of this review are:

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external stakeholders.

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improvement. In the case of the latter, the Audit and Risk Committee monitors a time-based log of improvement actions, agreed by the management and the auditors, to ensure that they are implemented.

The Group’s financial risk management objectives and policies are to:

Liquidity risk is managed by carefully forecasting and monitoring the short- term and long-term cash flows and ensuring the Charity has sufficient reserves and liquid investments to cover foreseeable requirements.

Credit risk on amounts owed to the Charity by its customers is low, being mostly Government departments and local authorities. Credit risk also arises from cash deposits with banks, and only independently rated parties with a minimum rating of ‘A’ are accepted.

Interest rate cash flow control risks are mitigated as the Charity is able to place surplus funds on short-term deposits.

The Group has, to date, financed the majority of its operations through its reserves and has not required significant external funding. Loan balances at 31 August 2025 of £0.1m (2024: £0.2m) included the external funding held in Forth Sector.

While the Group does have significant concentrations of debt due from the UK central and local Government, the risk is not considered to be significant because of the credit rating of the institutions and the statutory nature of the majority of services provided (i.e., in the event of local authority insolvency statutory services will continue to be funded).

Principal Risks

The assessment of risks is linked to the Group strategy, and the following have been identified as key risks. The Group is taking appropriate steps to monitor them:

Risk
description		 Potential impact Mitigation
A failure in the
welfare,
safeguarding or
duty of care of our
beneficiaries.
We regularly work with
vulnerable client groups, and a
failure could result in potential
loss of business or have an
adverse effect on performance.		 We maintain comprehensive safeguarding
and related policies and procedures, including
whistleblowing safeguards. We ensure that all
staff are subject to robust pre-employment
vetting, including Disclosure and Barring
Service checks. All staff receive the
appropriate safeguarding training.

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Annual report and financial statements for the year ended 31 August 2025

Risk
description		 Potential impact Mitigation
Significant staff
induction and
turnover affects
costs and
operational
quality.		 The inability to recruit sufficient
staff to meet operational need
has the potential to hinder
service delivery. Poor staff
retention could also affect our
ability to deliver high quality
services. Inability to deliver
service could result in loss of
contracts or have an adverse
effect on financial performance.		 We seek to ensure pay and conditions
remain attractive and competitive in the
sector. We also undertake an organisational
development programme to ensure that staff
attain and maintain the skills to develop and
perform.
We have invested in new recruitment
specialists to ensure that we can meet
operational staffing requirements.
Failure to win or
poor mobilisation
of key contracts.		 Failure to win bids or mobilise
them well could restrict growth
opportunities, resulting in
onerous contracts and therefore
have an adverse effect on
financial performance.		 To win contracts, we focus on high quality
service delivery under our existing contracts.
We demonstrate value for money and
maintain a strong central bidding team in a
high demand sector.
To mobilise contracts well, we have a
dedicated operational excellence team, clear
mobilisation project governance,
supersession and succession plans in place
to support capacity and carefully forecast FTE
and other group needs to ensure required
resource is in place.
Environmental
headwinds.		 Significant reductions in public
sector funding and changes in
government policies could
impact on renewal or terms of
existing contracts. Any cuts in
local authority funding could
have an adverse effect on
financial performance.		 We seek to develop innovative service
delivery models and solutions within available
funding parameters, maintain good
relationships across central and local
government, and communicate our success
stories through case studies and proactive
public relations. Our services are also
statutory services so less vulnerable to the
impact of local authority spending pressures.
A failure to
achieve revenue
targets due to
commissioner
delays.		 The margin between costs and
income is reduced, affecting the
scope and scale of the Trust’s
strategic ambition and
objectives.		 We continuously review and adjust structures,
costs-to-achieve, investments and other costs
to ensure the Trust is appropriately scaled
relative to revenue.
Additionally, we consider bids that sit outside
the Risk Appetite Statement case-by-case to
determine opportunities to increase revenue.
Organisational
capacity
inadequate to
deliver plan
effectively and
assure robustness
or resilience.
Strategic objectives and KPIs are
not delivered to plan as a result
of pace/extent of growth or
change.
We maintain standardised Business
Development and Investment processes to
ensure the right resources are allocated to
maximise the right opportunities and
manage/mitigate risks effectively.
We operate a number of investment and
development roadmaps as part of our
Strategic Planning team, alongside a
multi-year investment programme.
Major information As a provider of public services,
we have to handle sensitive and		 We ensure that all our staff receive
information security training and run staff

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Annual report and financial statements for the year ended 31 August 2025

Risk
description		 Potential impact Mitigation
security breach. confidential data. An information
security breach, whether by
accident or malicious attack,
could result in the potential loss
of contracts, have an adverse
effect on financial performance
and lead to reputational damage
in bidding for future work.		 awareness campaigns in line with
organisational policy to promote data security.
We employ experienced personnel
specialising in information assurance and
security, run penetration tests, and operate in
accordance with the ISO27001 certification,
which is subject to regular external
assessment.
Loss of critical IT
systems due to
cyber event or
otherwise.		 Business continuity is put at risk
as operations fail to function,
meaning an inability to deliver
services and additional costs are
incurred reinstating operability.
We target Business Continuity Plans and
Serious Incident Response Plans at both
Group and team level in preparation for IT or
other events. This is done on a ‘when’, not ‘if’
basis. These are reinforced as part of regular
tabletop exercises and other external
assessments to improve readiness. We follow
and consider a range of other guidelines and
frameworks, including Cyber Essentials Plus
or the previously mentioned ISO27001.

4. Section 172(1) Statement

General confirmation of the Board of Trustees and Directors’ duties:

The Board of Trustees has a clear framework for determining the matters within its remit and has approved Terms of Reference for the matters delegated to its committees. Certain financial and strategic thresholds have been determined to identify matters requiring Board of Trustees consideration and approval.

S172(1) (A) “The likely consequences of any decision in the long term”

The Board of Trustees completely understand the importance of the Charity and the long-term impact of its decision on beneficiaries, participants and communities. The Board of Trustees has developed proper strategies and processes to follow for any decision which can have long-term impacts.

S172(1) (B) “The interests of the company’s employees”

The Board of Trustees recognise that Shaw Trust employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining, and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.

S172(1) (C) “The need to foster the company’s business relationships with suppliers, customers and others”

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, governments, and commissioners. Shaw Trust seeks the promotion and application of certain general principles in such relationships. The Charity supports the government strategy to support SMEs via doing business with

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Annual report and financial statements for the year ended 31 August 2025

them and paying promptly. The Charity recognises the importance of its supply chain partners to deliver its targets and achieve strategic goals. Certain rules and procedures have been developed to maintain the good relationship with them.

Moreover, the Board of Trustees receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged.

S172(1) (D) “The impact of the company’s operations on the community and the environment”

The Board of Trustees receives information on these topics to provide relevant information for specific Board decisions e.g., working from home, green energy, and carbon footprint policies.

S172(1) (E) “The desirability of the company maintaining a reputation for high standards of business conduct”

The Board of Trustees periodically reviews and approves clear frameworks to ensure that its high standards are maintained both within its businesses and the business relationships we maintain. This complements the way the Board of Trustees is informed and monitors compliance with relevant governance standards.

This report was approved by the Board of Trustees and signed on its behalf by:

Olly Benzecry Chair 14 May 2026

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Directors’ Report

The Board of Trustees (‘the Trustees’), who are also the Directors of the Charity, present their report and the audited financial statements of the Charity for the year ended 31 August 2025. This report contains the statutory information disclosed in addition to that set out in the Strategic Report.

Review of the business

The financial results of the Group are detailed in the income statement on page 34. The financial position of the Group remains strong with total reserves of £243.8m. Further information on the business performance is detailed on pages 6 to 15 of the Strategic Report.

Legal Structure and Governance

The company is legally constituted under its Memorandum and Articles of Association dated 3 August 1983 and amendments thereto.

The Trustees in office during the year, and at the date of signing these financial statements, are set out on page 23. The Trustees have overall responsibility for the governance of the Charity which it discharges through three main duties:

As part of this, the Trustees ensure that there is a robust system of internal control and risk management, as well as an appropriate reporting and oversight structure to ensure that the Executive Management Team to whom the Trustees have delegated the daily management of the Charity are performing to the standards expected.

The Trustees meets quarterly and, while the matters discussed at those meetings will vary, the general themes of discussions are strategy, charitable purpose and impact, review of performance, developments in the Charity’s external operating environment and major internal change programmes.

The following committees of the Board of Trustees discharge specific aspects of their responsibilities:

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The Trustees have delegated the daily management of the Charity to the Group Chief Executive and the Executive Management Team. The current Chief Executive, Chris Luck CB MBE DL, was appointed in May 2019, and joined the Charity after a distinguished career in the armed forces.

The Charity manages its activities through five operational divisions and service delivery within each is managed by dedicated business unit teams.

Operational staff are supported by Finance, People and Performance, Business Development, Information Services and Communications teams.

As part of their succession planning, the Trustees have a system of Trustee evaluation to identify potential gaps in their individual skills and of the Trustees as a whole. Evaluation is carried out annually by the Trustees. Trustees are recruited in an open process, targeted towards any skills needs identified by the Trustee evaluation process, ensuring that we obtain the right balance of experience and expertise.

New Trustees can be co-opted by the members to fill a vacancy at any time during the period. Co-opted Trustees, if they wish to continue, seek re-election at the first Annual General Meeting after their appointment.

Every new Trustee receives a copy of The Charity’s Memorandum and Articles of Association; a summary of how it operates to achieve its charitable objects, with particular attention to its core areas of operations; a copy of the Charity’s latest reports and financial statements; a copy of the Code of Practice adopted by the Trustees; details of the Charity’s Executive Management Team and their respective roles, Terms of Reference and reporting lines; details of Board meetings; and the Board papers made available for meetings. As well as induction, Trustees are able to undertake training in specific areas of the Charity’s operations through visits and presentations.

The Charity takes into consideration the principles contained within the Charity Governance Code when reviewing and updating its governance function.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

23

Committee Membership and Executive Management Team

Trustees

Gregory Allen ♦ (resigned 26 February 2025) Paul Baldwin * ~ Olly Benzecry Chairman Diane Côté * ~ (resigned 7 November 2024) Audrey Coutinho * ^ Deborah Dorman ♦ (resigned 26 February 2026) Annamarie Hassall MBE (resigned 24 February 2025, reappointed 20 October 2025) ♦ Ian Hughes MBE (appointed 24 March 2025) ^ ♦ Carl Nicholson ^ ~ Cedric Ntumba (appointed 24 March 2025) ^ ~ Dr Mike Nussbaum ^ ♦ (resigned 14 May 2025) Lara Oyesanya ^ ♦ Kalm Paul-Christian ^ (resigned 26 February 2025) Stephen Pegge OBE ~ Steve Shaw * ♦ James Stewart OBE ~ Christine Swabey *

Executive Management Team

Group Chief Executive Officer Chris Luck CB MBE DL

Chief Executive Officer – The Shaw Education Trust

Jo Morgan (resigned 28 March 2025), Kerry Inscker Acting (from 29 March 2025)

Chief Financial Officer James Robertson

Chief Commercial Officer

Richard Clifton

Chief Operating Officer Shelley Southon

Chief Corporate and Risk Officer

Scott Miller

Chief People Officer

Mark Earl

Chief Impact Officer Julie Leonard (from 16 September 2024)

Company Secretary Carol McKinley

The Shaw Trust Limited

24

Annual report and financial statements for the year ended 31 August 2025

Disabled employees

The Charity is committed to employment policies which follow best practice, based on equal opportunities for all employees, irrespective of age, religion, sex, race, colour, disability, sexuality, or marital status. The Charity gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. To this end, the Charity was delighted to be awarded Disability Confident Leader Status in 2018.

Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the Charity.

If members of staff become disabled, the Charity continues employment, either in the same or an alternative position, with appropriate retraining being given if necessary.

Employee involvement

The Charity systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests.

Employee involvement in the Charity is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Charity plays a major role in maintaining and growing its position.

The Charity encourages the involvement of employees through a forum where employees are represented by elected colleagues on a regional basis who meet regularly with the Executive Management Team.

Directors’ indemnities

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Charity also purchased and maintained throughout the financial year Directors’ and Officers’ liability insurance in respect of itself and its directors.

Fundraising compliance statement

The Charities (Protection and Social Investment) Act 2016 requires charities such as ours to include a statement of our fundraising. We believe that, under current regulations and best practice, we comply with the Fundraising Regulator’s Code of Fundraising Practice and adhere to Charity Commission guidance for the organisation as a whole.

The Charity does not proactively fundraise. Fundraising income is received largely through legacy donations as well as some personal donations. Some of the legacy income is facilitated through a third party. We did not receive any fundraising complaints during the reporting year.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

25

Statement on going concern

The Charity prepares a detailed annual budget and three-year business plan that indicates a positive cash position and operational profitability for the duration of the plan. This plan has been approved by the Trustees and the Charity’s principal lenders.

The Executive Management Team continues to closely monitor significant risks, and modelling of sensitivities have indicated the Charity has sufficient liquid resources to meet its obligations as they fall due.

The Charity has produced a comprehensive risk assessment framework and monitors and reports on this on a quarterly basis. It continues to drive for performance, carefully manages costs and looks for further opportunities to develop. It seeks to mitigate any ongoing risk by ensuring that it continues to be lean and fit for purpose, responds to the changing environments and markets in which it operates.

The Trustees have reviewed the Charity’s forecasts, sensitivity analysis and projections and its reserves, and the systems of financial control and risk management. As a result of this review, the Trustees have a reasonable expectation that the Charity can manage these risks and has adequate resources to continue in operation for the foreseeable future, being a period of at least 12 months from the approval of the financial statements. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Streamlined Energy and Carbon Reporting

Shaw Trust maintains scopes one (1), two (2) and three (3) emissions, which includes natural gas. Shaw Trust also maintains transport emissions inclusive of company owned/operated vehicles and employee owned/operated vehicles (whereby mileage is claimed as a business expense). Electricity is procured from a renewable source and is therefore zero emissions.

Shaw Trust previously devised a strategy to reduce overall carbon footprint including:

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

26

Shaw Trust have a longstanding commitment to tackling climate change. Calculated carbon footprint for the current financial year is 1,143.34 tCO2e , whilst energy consumption was 4,553,35 MWh.

Methodology

We have reported all emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. Reporting of calculated emissions is in line with the GHG Protocol Corporate Accounting and Reporting Standard and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2024.

The reporting period is the financial year 2024/25, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.

2024/2025 Emissions

Shaw Trust
The Shaw
Education Trust
kWh
kWh
Energy consumption (kWh)
4,553,335
41,965,966
2024/2025 Emissions
Tonnes CO2 equivalent (tCO2e):
tCO2e
tCO2e
Scope 1 emissions
Natural gas heating
359
6,320
Owned transport
385
148
Scope 2 emissions
Purchased electricity
-
1,434
Scope 3 emissions
Business travel – employee mileage
and T&D losses
399
103
Optional (Train travel)
36
-
Total (Scope 1+2+3 Mandatory)
1,143
8,005
tCO2e/employee
tCO2e/pupil
Scope 1, 2 and 3 carbon intensity
0.44
0.67

The Shaw Education Trust emissions and energy consumption have been separately disclosed above due to the sector difference including the recommended intensity ratio per pupil. Further details can be found in the Trustees report of The Shaw Education Trust annual report and financial statements for the year ended 31 August 2025.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

27

Efficiency Measures Taken

During the year, the Charity has continued to develop energy efficiency initiatives to reduce environmental impact and improve long term sustainability across its estate.

Actions taken include upgrading to LED lighting where possible within the estate and in several academies; installation of improved building management systems to reduce unnecessary consumption include PIR sensors where possible and installing EV charging across some of the academy sites.

Statement of Trustees’ responsibilities in respect of the financial statements

The Trustees (who are also directors of The Shaw Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulation.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). 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 the affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable 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 charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Shaw Trust Limited

28

Annual report and financial statements for the year ended 31 August 2025

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditors

In so far as the Trustees are aware:

Public Benefit

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Olly Benzecry Chair 14 May 2026

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

29

Independent Auditor’s Report to the Members and the Trustees of The Shaw Trust Limited

Opinion

We have audited the financial statements of The Shaw Trust Limited (the “charitable company”) and its subsidiaries (the “group”) for the year ended 31 August 2025 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

30

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.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

The Shaw Trust Limited

31

Annual report and financial statements for the year ended 31 August 2025

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 27, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists and component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

32

the charitable company and group operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charities SORP (FRS 102), and tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the group’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We also considered the opportunities and incentives that may exist within the group for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management and revenue recognition in relation to grants and contracts. Our audit procedures to respond to these risks included enquiries of management, internal audit, legal counsel and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and revenue, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

33

Julia Poulter

Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

26[th] May 2026

The Shaw Trust Limited

34

Annual report and financial statements for the year ended 31 August 2025

The Shaw Trust Limited consolidated statement of financial activities

(incorporating an income and expenditure account)

For the year ended 31 August 2025

Note
Income and endowments from:
Donations and capital grants
1b
Charitable activities
1a
Other trading activities
1c
Income on investments,
interest, and dividends
Other income
Group incoming resources
Expenditure on:
Raising funds
2a
Charitable activities
2b
Total resources expended
Net income / (expenditure)
before gains on investments
4
Gains/(losses) on fixed asset
investments
10
Transfers between funds
Net income / (expenditure) before
taxation
Taxation
21
Group net income / (expenditure)
before other recognised gains
and losses
Loss on disposal of subsidiaries
and discontinued activities
Actuarial gains on defined benefit
pension schemes
24
Net movement in funds
Fund balances brought
forward
Fund balances carried forward
20		 Continuing operations
£’000
Discontinued operations
£’000
Total
funds
2025
£’000
Unrestricted
Funds
Restricted
Funds
Unrestricted
Funds
Restricted
Funds
Total
214
5,416
-
-
5,630
138,844
137,638
-
4,345
280,827
3,465
-
-
-
3,465
123
591
-
-
714
438
-
-
-
438
143,084
143,645
-
4,345
291,074
(4,058)
-
-
-
(4,058)
(136,927)
(144,346)
-
(3,738)
(285,011)
(140,985)
(144,346)
-
(3,738)
(289,069)
2,099
(701)
-
607
2,005
311
(110)
-
-
201
101
(101)
-
-
-
2,511
(912)
-
607
2,206
(81)
-
-
-
(81)
2,430
(912)
-
607
2,125
-
-
-
(3,380)
(3,380)
224
244
-
-
468
2,654
(668)
-
(2,773)
(787)
33,246
208,548
-
2,773
244,567
35,900
207,880
-
-
243,780

The Shaw Trust Limited

35

Annual report and financial statements for the year ended 31 August 2025

The Shaw Trust Limited consolidated statement of financial activities

(incorporating an income and expenditure account)

For the year ended 31 August 2024

Note
Income and endowments from:
Donations and capital grants
1b
Charitable activities
1a
Other trading activities
1c
Income on investments,
interest, and dividends
Other income
Net assets taken on with mergers
and transfers
25
Group incoming resources
1
Expenditure on:
Raising funds
2a
Charitable activities
2b
Total resources expended
Net income / (expenditure)
before gains on investments
Gains on fixed asset investments
10
Transfers between funds
Net income / (expenditure)
before taxation
Taxation
21
Group net income /
(expenditure) before other
recognised gains and losses
Gain / (loss) on disposal of
subsidiaries and discontinued
activities
Actuarial gains on defined benefit
pension schemes
Net movement in funds
Fund balances brought
forward
Fund balances carried forward
20		 Continuing operations
£’000
Discontinued operations
£’000
Total
funds
2024
£’000
Unrestricted
Funds
Restricted
Funds
Unrestricted
Funds
Restricted
Funds
Total
351
5,015
-
188
5,554
152,523
123,788
2,034
5,942
284,287
2,175
720
-
-
2,895
730
-
-
-
730
371
-
-
-
371
-
21,917
-
-
21,917
156,150
151,440
2,034
6,130
315,754
(2,493)
-
-
-
(2,493)
(147,423)
(131,303)
(2,050)
(5,859)
(286,635)
(149,916)
(131,303)
(2,050)
(5,859)
(289,128)
6,234
20,137
(16)
271
26,626
375
-
-
-
375
1,639
(201)
(1,816)
378
-
8,248
19,936
(1,832)
649
27,001
(4)
-
(15)
-
(19)
8,244
19,936
(1,847)
649
26,982
-
-
453
(221)
232
21
307
-
263
591
8,265
20,243
(1,394)
691
27,805
24,981
188,305
1,394
2,082
216,762
33,246
208,548
-
2,773
244,567

The Shaw Trust Limited

36

Annual report and financial statements for the year ended 31 August 2025

Group and Charity Balance Sheets Company No. 01744121 For the year ended 31 August 2025

Company No. 01744121
For the year ended 31 August 2025
Note Group
Charity
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
7
Tangible assets
8
Investments in subsidiaries
9
Investments in financial securities
10
Total fixed assets
Current assets
Stocks
12
Debtors: Due within one year
13
Debtors: Due over one year
14
Short-term investments
10
Cash at bank and in hand
Total current assets
Creditors - amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors - amounts falling due after one year
16b
Provision for liabilities and charges
17
Net assets before pension liability
Pension liability
24
Net assets after pension liability
Funds
Designated funds
18
General funds
18
Total unrestricted funds
Pension liability
Restricted funds
Total restricted funds
19
Total Funds
20		 87
148
50
94
199,889
208,363
2,088
3,037
-
-
22,568
17,568
8,710
8,419
5,717
5,317
208,686
216,930
30,423
26,016
134
202
134
201
48,018
37,358
16,398
13,553
178
302
-
-
7,760
7,340
109
107
27,342
31,637
9,264
8,557
83,432
76,839
25,905
22,418
(39,724)
(39,805)
(21,399)
(18,012)
43,708
37,034
4,506
4,406
252,394
253,964
34,929
30,422
(227)
(365)
-
-
(7,817)
(5,226)
(4,476)
(2,359)
244,350
248,373
30,453
28,063
(570)
(3,806)
-
-
243,780
244,567
30,453
28,063
2,588
4,414
1,360
3,169
33,312
28,832
27,635
22,729
35,900
33,246
28,995
25,898
(570)
(3,806)
-
-
208,450
215,127
1,458
2,165
207,880
211,321
1,458
2,165
243,780
244,567
30,453
28,063

The Shaw Trust Limited

37

Annual report and financial statements for the year ended 31 August 2025

The Group statement of cashflows, basis of preparation, principal accounting policies and the notes to the financial accounts below are an integral part of these financial statements.

The Parent Charity has taken the exemption from preparing a separate statement of financial activities as permitted under Section 408 of Companies Act 2006. The Parent Charity’s total income for the year amounted to £74,784k (2024: £81,483k) and net movement in funds for the year was an increase of £2,390k (2024: decrease of £9,869k).

The financial statements were approved by the Board of Directors on 14 May 2026 and were signed on its behalf by:

Olly Benzecry Chair

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

38

Consolidated statement of cash flows

For the year ended 31 August 2025

Year ended Year ended Year ended Year ended
31 August 31 August 31 August 31 August
Note 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Net cash generated from operating
activities		 a) 2,601 17,831
Cash flow from investing activities
Cash disposed of with subsidiary
undertakings		 (1,957) -
Purchase of tangible assets 8 (4,922) (6,957)
Purchase of intangible assets 7 - (62)
Net purchase of investments (420) 135
Cash from investments - (95)
Cash from disposal of fixed
assets		 - 423
Investment income received 626 730
Net cash expended from investing activities (6,673) (5,826)
Cash flow from financing activities
Interest and charges paid (8) (22)
Repayment of loans (215) (451)
Net cash used in financing activities (223) (472)
Net (decrease) / increase in cash and
equivalents		 cash (4,295) 11,532
Cash and cash equivalents at the beginning of
the period at 1 September		 31,637 20,105
Cash and cash equivalents at 31 August 27,342 31,637

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

39

a) Reconciliation of net incoming resources before other recognised gains to net cash inflow from operating activities

Year ended Year ended
31 August
2025		 31 August
2024
£'000 £'000
Net incoming resources before other recognised gains 2,125 26,982
Donation of net assets arising on acquisition - (20,747)
Pensions - adjustment to net incoming resources (2,220) (1,829)
Investment income received (714) (730)
Bank charges and interest paid 8 22
Taxation 81 -
Depreciation charge on fixed assets 9,660 8,955
Amortisation of goodwill 61 185
Net loss on disposal of tangible fixed assets 862 351
Net loss on disposal of intangible fixed assets - 204
Net gain on disposal of investments (201) (143)
Decrease in stock 68 88
(Increase) / decrease in debtors (10,705) 4,824
(Decrease) / increase in creditors (625) 789
Increase / (decrease) in deferred income 1,610 (447)
Increase / (decrease) in provisions for liabilities and charges 2,591 (673)
Net cash inflow from operating activities 2,601 17,831

b) Analysis of changes in net debt

1 September
2024		 Cash Flow
(Continuing
Activities)		 Discontinued
Activities		 31 August
2025
£'000 £'000 £'000 £'000
Cash at bank and in hand 31,637 (2,338) (1,957) 27,342
Total cash and cash equivalents 31,637 (2,338) (1,957) 27,342
Loans due within one year (224) 2 50 (172)
Loans due after more than oneyear (365) 213 10 (142)
Total 31,048 (2,123) (1,897) 27,028

The Shaw Trust Limited

40

Annual report and financial statements for the year ended 31 August 2025

Notes to the Financial Statements

Basis of preparation

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain tangible fixed assets and fixed asset investments.

General information

The Shaw Trust Limited (“the Charity”) is domiciled in England and Wales with registration number 01744121. The address of its registered office is Black Country House, Rounds Green Road, Oldbury, B69 2DG.

The principal activity of the Charity during the period is to co-create and deliver high quality employability programmes and complementary services for people with complex needs, challenging life circumstances or other barriers that impact on access to work.

Basis of consolidation

The consolidated financial statements include the activities of the Charity and its subsidiary undertakings (note 9) made up to 31 August 2025. Intra-Group transactions and profits are eliminated on consolidation. The results, assets and liabilities of the subsidiary undertakings are combined with those of the Charity in the results of the Group on a line-by-line basis.

During the year, following a change in operational and management structure, Shaw Education Trust was deemed to no longer control Newfriars College and it has therefore been deconsolidated out of the Group.

FRS 102 Exemptions

FRS 102 allows a qualifying entity, certain disclosure exemptions, subject to certain conditions which have been complied with, including notification of, and no objection to, the use of exemptions by the Charity’s Trustees.

The Charity has taken advantage of the following exemptions:

Functional currency

The Group financial statements are presented in pound sterling and rounded to thousands. The Charity’s functional and presentation currency is the pound sterling.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

41

Notes to the Financial Statements

Principal accounting policies

The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounting in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and the Companies Act 2006.

Incoming Resources

All incoming resources are recognised in the Statement of Financial Activities when there is an entitlement to the funds, the receipt is probable, and the amount can be measured reliably.

Contract income

Where the outcome of a transaction involving the rendering of services via contracts can be estimated reliably, the revenue is recognised by reference to the stage of completion at the end of the reporting period. This is reviewed and, when necessary, revised based on the estimates of revenue and costs as the contract progresses.

Stage of completion is determined using the method that measures most reliably the work performed and assumes use of the straight-line basis unless there is evidence that some other method better represents the stage of completion.

Deferred income

Where income is received for a specific period and that period straddles the Charity’s year end, the appropriate portion of income is deferred and carried forward to the following year, or where income is received in advance of the services being delivered.

Donations and other income

All donations and other income are included in the Statement of Financial Activities and accounted for according to the date of receipt.

Other income is recognised when there is entitlement to the funds, any performance conditions attached to the item of income have been met, and where it is probable that the income will be received, and the amount can be measured reliably.

Where assets and liabilities are received on the transfer of an existing academy into the academy trust, the transferred net assets are measured at fair value and recognised in the balance sheet at the point when the risks and rewards of ownership pass to the academy trust. An equal amount of income is recognised for the transfer of an existing academy into the academy trust within donations and capital grant income to the net assets acquired.

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Annual report and financial statements for the year ended 31 August 2025

Sales and trading activities

Income from the Retail trading division (charity shops) and sales made as part of the Charity’s other trading operations are recognised on point of sale for both donated and purchased goods.

Donated services from volunteers

Donated services from our volunteers are not included within the financial statements.

The services of volunteers are critical to the Charity, particularly in relation to the operation of our retail shops.

These ventures would not be able to continue without the support and time given by our network of volunteers.

Donated goods for resale

The Charity receives donated goods for resale in its network of charity shops. Income is recognised at point of sale as the Trustees consider it to be impractical to recognise such gifts on receipt due to the large number of small value items received.

Grants/fees

All revenue grants receivable from the Government agencies and local authorities relating to the period are included in the Statement of Financial Activities. All grants that relate to specific capital expenditure are disclosed as income in the year in which they are receivable and disclosed as restricted funds.

Resources expended

All expenditure is included on an accruals basis and is recognised when:

Costs have been attributed to one of the functional categories of resources expended in the Statement of Financial Activities:

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43

Apportionment of costs

Costs have been allocated directly to a business heading wherever possible using relevant cost drivers for each support cost department. Support costs that have not been directly allocated to a business heading in this way have been attributed to a business heading based on the results of an activity-based costing exercise undertaken for the organisation as a whole.

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Irrecoverable VAT

Any irrecoverable VAT is charged to the Statement of Financial Activities or capitalised as part of the cost of the related asset, where appropriate.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation.

Land and buildings transferred as part of the Academies Programme to Shaw Education Trust are reflected within freehold or long leasehold fixed assets at the point of transfer. They are recorded at valuation at the point of transfer and are depreciated from that date.

Where freehold land and buildings are purchased for use by specific services, the difference between the cost and estimated residual value (excluding land) is depreciated on a straight-line basis over the service contract’s life.

Long leasehold properties are amortised over the remaining life of the lease. Short leasehold improvements and charity shop fixed assets are depreciated over a period up to the first break clause on individual leases, or over five years if sooner. Assets under construction are not depreciated until they are completed and brought into use.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual values, on a straight-line basis over their expected useful economic life as follows:

Fixed assets costing less than £3,000 for non-computer equipment and less than £250 for computer equipment are charged against profit on the date of purchase.

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Intangible fixed assets – goodwill and computer software

Goodwill represents the excess of the cost of a business combination over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is included in Intangible Assets. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses.

Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life.

During 2017/18 Shaw Trust acquired Ixion Holdings (Contracts) Limited and Prospects Group 2011 Limited and the intangible fixed assets include goodwill arising on the purchase.

In determining the period of amortisation, management considered the length of the current contracts, the performance of the business and the likelihood of securing additional future business and concluded that five years was a reasonable time over which to amortise the goodwill arising on these acquisitions.

All goodwill has been fully amortised.

Computer software 25% (or over the lifetime of the contract if more appropriate).

Assets costing less than £3,000 are not capitalised.

Donated fixed assets

All donated fixed assets are included in the financial statements at a reasonable estimate of their market value at the date of receipt.

Investments in financial securities

Fixed asset investments are investments held in listed companies, government and corporate bonds and other investments. These investments are stated at mid-price market value at the period-end.

Unrealised gains/(losses) are derived from the movement in market value during the year and are recorded in the Statement of Financial Activities.

Investments are carried at ‘fair value’ and therefore stated at market value as at the balance sheet date. Changes in fair value are recognised in the income and expenditure section of the Statement of Financial Activities.

Investments in subsidiaries jointly controlled entities and associates

These investments are held at cost less impairment.

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45

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Current asset investments

Current asset investments comprise cash held on term deposits with qualifying financial institutions.

Basic financial instruments

The Group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of Financial Instruments.

Financial Assets: Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities: Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Stocks

Stocks are valued at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow-moving and defective stocks.

Designated funds

Designated funds are those which have been set aside at the discretion of the Trustees for a specific purpose. These funds relate to specific fixed assets or contracts and commitments set aside for Shaw Trust Foundation’s activities.

Unrestricted funds

Unrestricted funds comprise accumulated surpluses and deficits on general funds They are available for use at the discretion of the Trustees in furtherance of the objectives of the Charity.

Restricted funds

These are funds where the purpose for which they can be used has been specifically restricted by the donor, contractual agreement, or the law.

The amounts in the funds represent the monies still remaining for future expenditure or funds represented by fixed assets.

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Annual report and financial statements for the year ended 31 August 2025

Provisions

Provisions are recognised when the Charity has a legal or constructive financial obligation that can be reliably estimated and for which there is an expectation that payment will be made.

Pension costs

The Charity operates insured defined contribution pensions for eligible employees. All applicable pension costs are charged in the Statement of Financial Activities as incurred.

In addition to the core Shaw Trust defined contribution pension scheme, the Charity operates a number of defined benefit pension arrangements, which are detailed in note 24 to the Financial Statements.

The actuarial valuations are obtained annually and are updated at each balance sheet date.

The amounts charged to net income/(expenditure) are the current service costs and the costs of scheme introductions, benefit changes, settlements, and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations.

The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

The costs to the Charity of funding the schemes are accounted for in accordance with FRS 102. The contributions paid by the Charity to the defined contribution schemes are charged as resources expended in the year in which they are payable, in accordance with the rules on accounting for defined contribution pension schemes as set out in FRS 102.

Related party transactions

All related party transactions are disclosed in note 26.

Tax and deferred tax

The Charity is a registered charity and is exempt from taxation on its income and gains to the extent that they are applied to its charitable purposes.

Current tax arising in non-charitable subsidiaries is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

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Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Deferred tax liabilities are presented in creditors and deferred tax assets within debtors.

Statement on going concern

The Charity continues to adopt the going concern basis in preparing its financial statements.

The Charity prepares a detailed annual budget and three-year business plan which indicates a positive cash position and operational profitability for the duration of the plan. This plan has been approved by the Trustees.

Having reviewed the Charity’s and Group’s forecasts and its current reserves, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operation for the foreseeable future.

Key accounting estimates and assumptions

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates 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 carry amounts of assets and liabilities within the next financial year are below.

Provision is made for dilapidations, asset retirement obligations and contingencies. These provisions require management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, timing of the cash flows and discount rates used to establish net present value of the obligations require management judgement.

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Annual report and financial statements for the year ended 31 August 2025

(v) Defined benefit pension scheme (note 24)

The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including life expectancy, salary increases, asset valuation and the corporate bond discount rate. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Key accounting judgements

Assessing whether the Group controls SET requires judgement. SET is a wholly owned subsidiary of The Shaw Trust Limited, who is also the sponsor company. Through the SET Articles of Association, The Shaw Trust Limited can appoint members and Trustees to the Shaw Education Trust Board, thereby giving control to the decision making and authority for the work of the academy trust. The Group considers that these powers demonstrate that the Group controls SET.

During the year, following a change in operational and management structure, Shaw Education Trust was deemed to no longer control Newfriars College and it has therefore been deconsolidated out of the Group. This is with effect from 31 March 2025, when a change in Directors of the College took place. Newfriars College is therefore shown as a disposal in the restricted funds.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

49

Notes to the financial statements

1. Total incoming resources/material funders

1a. Analysis of income from charitable activities

2025 2024
£’000 £’000
Careers and Skills 37,870 43,786
Work, Wellbeing and Health 52,441 51,069
Children’s Homes 43,046 38,685
Education 135,358 123,047
Other Services 12,112 27,700
Total income from charitable activities 280,827 284,287

The Trustees consider material funders to be those contributing over 10% of income.

The principal funders are Department for Work and Pensions (DWP), from which a total of £21.7m (2024: £41.8m) was earned, and Department for Education (DfE), from which a total of £107.2m (2024: £111.1m) was earned.

1b. Analysis of income from donations and capital grants

2025 2024
£’000 £’000
SCA Grant (restricted) 3,483 3,976
Capital grants (restricted) 1,907 1,227
Other donations (restricted) 26 -
Other donations (unrestricted) 214 351
Total income from donations and capital grants 5,630 5,554

The fair value of net assets acquired from business combinations are treated as a donation (see note 25).

1c. Analysis of income from other trading activities

2025 2024
£’000 £’000
Charity shops 3,465 2,895
Total income from other trading activities 3,465 2,895

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Annual report and financial statements for the year ended 31 August 2025

2. Analysis of total resources expended

2a. Analysis of expenditure on raising funds

2025 2024
Support
Direct costs costs Total Direct costs Total
£’000 £’000 £’000 £’000 £’000
Charity shops 3,589 445 4,034 2,473 2,473
Investment management fees 24 - 24 20 20
Total expenditure on raising
funds		 3,613 445 4,058 2,493 2,493

2b. Analysis of expenditure on charitable activities

2025 2024
Activities Activities
undertaken Support undertaken Support
directly costs Total directly costs Total
£’000 £’000 £’000 £’000 £’000 £’000
Careers and Skills 32,957 5,516 38,473 40,358 5,251 45,609
Work, Wellbeing and 41,711 6,998 48,709 39,291 5,657 44,948
Health
Children’s Homes 37,647 5,268 42,915 32,877 3,532 36,409
Education 110,124 30,735 140,859 98,451 31,612 130,063
Other Services 12,326 1,729 14,055 26,767 2,839 29,606
Total expenditure on
charitable activities		 234,765 50,246 285,011 237,744 48,891 286,635

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Annual report and financial statements for the year ended 31 August 2025

2. Analysis of total resources expended (continued)

2c. Analysis of support costs

Raising Careers Work, Children’s Education Other 2025 2024
funds and Skills Wellbeing Homes Services Total Total
and Health
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Management 162 1,791 1,746 1,195 - 508 5,402 5,217
Corporate 22 1,264 1,838 844 1,105 341 5,414 5,280
Governance
Finance 96 725 992 955 - 313 3,081 2,539
Information 88 950 1,321 1,083 2,768 309 6,519 5,791
Technology
Human Resources 58 595 809 1,088 - 193 2,743 2,067
Communications and 19 191 292 103 - 65 670 11
Marketing
Academy support staff - - - - 10,014 - 10,014 9,849
costs
Other academy - - - - 6,508 - 6,508 6,419
support costs
Academy premises - - - - 10,340 - 10,340 11,718
expenses
Total support costs 445 5,516 6,998 5,268 30,735 1,729 50,691 48,891

Support costs are allocated to activities where directly attributable or on a basis appropriate to the type of cost, such as by activity staff numbers, revenue, and number of transactions.

3. Finance costs

3. Finance costs
2025 2024
£'000 £'000
Interest on loans 8 22
Net interest income on defined benefit pension schemes (note 24) (354) (369)
Total (346) (347)

These charges have been reported in the Statement of Financial Activities under Charitable Activities.

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Annual report and financial statements for the year ended 31 August 2025

4. Net income / (expenditure) before gains on investments

. Net income / (expenditure) before gains on investments
2025 2024
The net income / (expenditure) before gains on investments are stated
after charging:		 £'000 £'000
Amortisation charge for the year on intangible owned assets 61 185
Depreciation charge for the year on tangible owned assets 9,660 8,955
Auditors' remuneration: audit services
- Parent Charity and consolidated financial services 97 98
- Audit of the Charity's subsidiaries 167 161
Auditors' remuneration: other services
- services relating to taxation 6 1
- all other services 20 21
Operating leases:
- others 661 653
- property 5,053 4,873
Net loss on disposal of fixed assets 862 351

5. Employees

The average monthly number of persons employed during the year was:

Group Group Charity Charity
2025 2024 2025 2024
No. No. No. No.
Charitable purposes 4,919 5,065 1,602 1,743
Retail 79 59 79 59
Total 4,998 5,124 1,681 1,802

Employee costs for the above persons during the year were:

Group Group Charity Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Wages and salaries 162,366 158,129 49,108 47,367
Social security costs 18,083 15,698 5,368 4,613
Contribution to defined contribution pension 13,931 12,500 1,416 1,413
schemes
Operating costs of defined benefit pension 4,952 5,317 - 93
schemes (note 24)
Total 199,332 191,644 55,892 53,486

Included in the above figures is a Group figure of £1,320k (2024: £826k) for redundancies, of which £114k (2024: £155k) was unpaid and accrued or provided as at the year end.

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53

5. Employees (continued)

The number of employees who received employee benefits (excluding employer pension costs) totaling more than £60,000 fell within the following bandings:

Group Group
2025 2024
No. No.
£60,001 - £70,000 136 112
£70,001 - £80,000 57 48
£80,001 - £90,000 28 26
£90,001 - £100,000 17 19
£100,001 - £110,000 13 15
£110,001 - £120,000 9 6
£120,001 - £130,000 3 1
£130,000 - £140,000 2 4
£140,001 - £150,000 5 4
£150,001 - £160,000 1 1
£160,001 - £170,000 2 -
£170,001 - £180,000 1 -
£180,001 - £190,000 1 -
£220,001 - £230,000 1 -
£230,001 - £240,000 - 1
£270,001 - £280,000 1 -
£280,001 - £290,000 - 1
£300,001 - £310,000 1 -

6. Trustees’ and executive management team’s remuneration

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54

7. Intangible assets

Computer software Group Charity
£'000 £'000
Cost
At 1 September 2024 7,830 7,403
Disposals (5,579) (5,304)
At 31 August 2025 2,251 2,099
Accumulated Amortisation
At 1 September 2024 7,682 7,309
Charge for the year 61 44
Disposals (5,579) (5,304)
At 31 August 2025 2,164 2,049
Net book value
At 31 August 2025 87 50
At 1 September 2024 148 94

8. Tangible assets

Group Freehold Long leasehold Assets Equipment Fixtures Total
land and Property under and and fittings
buildings construction vehicles
£'000 £'000 £'000 £'000 £'000 £'000
Cost or valuation
At 1 September 2024 51,123 200,523 780 943 20,509 273,878
Additions 188 2,256 1,107 50 1,321 4,922
Disposals - (2,169) - (3,342) (6,939) (12,450)
Deconsolidation (3,091) (459) - (96) (316) (3,962)
Reclassifications - 563 (495) 2,806 (2,874) -
At 31 August 2025 48,220 200,714 1,392 361 11,701 262,388
Accumulated depreciation
At 1 September 2024 17,968 30,955 - 805 15,787 65,515
Charge for the year 1,083 6,219 - 79 2,279 9,660
Disposals - (1,330) - (3,342) (6,916) (11,588)
Deconsolidation (548) (232) (66) (242) (1,088)
Reclassifications - 17 - 2,772 (2,789) -
At 31 August 2025 18,503 35,629 - 248 8,119 62,499
At 31 August 2025 29,717 165,085 1,392 113 3,582 199,889
At 1 September 2024 33,155 169,568 780 138 4,722 208,363

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Annual report and financial statements for the year ended 31 August 2025

8. Tangible assets (continued)

Equipment
Charity Long leasehold and Fixtures
Property vehicles and fittings Total
£'000 £'000 £'000 £'000
Cost or valuation
At 1 September 2024 3,152 543 8,079 11,774
Additions - - 614 614
Disposals (1,086) (509) (5,804) (7,399)
At 31 August 2025 2,066 34 2,889 4,989
Accumulated depreciation
At 1 September 2024 1,249 543 6,945 8,737
Charge for the year 43 - 814 857
Disposals (403) (509) (5,781) (6,693)
At 31 August 2025 889 34 1,978 2,901
Net book value
At 31 August 2025 1,177 - 911 2,088
At 1 September 2024 1,903 - 1,134 3,037

Land and buildings transferred to Shaw Education Trust (SET) as part of the Academies Programme are reflected within freehold or long leasehold fixed assets at the point of transfer.

The land and buildings transferred as part of the Academies Programme are subject to the provisions of the individual academy funding agreements and the master funding agreement.

These provisions may include preventing the entity from selling the land and buildings. Upon termination of a funding agreement, whether as a result of the Secretary of State for Education or SET serving notice, the assets relating to that agreement will return to the Secretary of State.

The value of the land and buildings to which these academy agreements apply is: £186,738k (2024: £193,905k).

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.

The value of the transferred assets has been recognised in the Statement of Financial Activities as net assets taken on with mergers and transfers.

Tangible fixed assets of Forth Sector with a net book value of £1.8m (2024: £1.9m) are pledged as security against capital grant funding totalling £1.0m (2024: £1.0m) and against loans totalling £0.1m (2024: £0.2m).

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Annual report and financial statements for the year ended 31 August 2025

9. Investments in subsidiary undertakings

Charity interests in group undertakings

Charity interests in group undertakings
2025
£'000
At 1 September 2024 25,555
Additions 5,000
At 31 August 2025 30,555
Amortisation
At 1 September 2024 (7,987)
Impairment -
At 31 August 2025 (7,987)
Net book value
At 31 August 2025 22,568
At 1 September 2024 17,568

The Charity made a further investment in Ixion Holdings (Contracts) Limited in the year, recapitalising its investment with an injection of 5,000,000 shares.

The Charity had the following wholly owned subsidiaries as at 31 August 2025.

Name of subsidiary Company No. Control Status
Shaw Education Trust 9067175 Controlling member Active
(Exempt charity) rights
Prospects Group 2011 Limited 7708678 100% Ordinary shares Active
Ixion Holdings (Contracts) Limited 6886337 100% Ordinary shares Active
Forth Sector SC124791 Sole member Active
(Charity reg: SC016414)
Good Work Partners Limited 15420664 100% Ordinary shares Active
Shaw Trust International Partnerships 5859747 100% Ordinary shares Dormant
Limited
Disabled Living Foundation 1837993 Sole member Dormant
(Charity reg: 290069)
Careers Development Group 1647371 Sole member Dormant

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

57

9. Investments in subsidiary undertakings (continued)

Other subsidiary undertakings of the Group as at 31 August 2025:

Name of subsidiary Company No. Control Status
Prospects Services 03042176 100% Ordinary shares Active
Homes2Inspire Limited 10592680 100% Ordinary shares Active
Forth Sector Development Limited SC372526 100% Ordinary shares Active
Homes2Inspire Services Limited 15420675 100% Ordinary shares Active
Prospects Education Services Limited 09598618 100% Ordinary shares Active
Ixion Social Enterprise Limited 05028081 Sole member Active
Ixion CG Limited 03091483 100% Ordinary shares Active
Prospects Services Midco Limited 07596398 100% Ordinary shares Dormant
Prospects Distribution Services Limited 03656764 100% Ordinary shares Dormant

All subsidiaries, other than those that are dormant, are included in the consolidated financial statements. Newfriars College ceased to be a subsidiary on 31 March 2025 and is included within discontinued activities in the Statement of Financial Activities.

Post year end, applications have been made to Companies House to strike off Ixion Social Enterprise Limited, Ixion CG Limited, Shaw Trust International Partnerships, Careers Development Group and Prospects Distribution Services Limited.

The registered address for all of the above subsidiaries (with the exception of The Shaw Education Trust and Forth Sector) is Black Country House, Rounds Green Road, Oldbury, B69 2DG.

The registered address for The Shaw Education Trust is Kidsgrove Secondary School, Gloucester Road, Kidsgrove, Stoke-on-Trent ST7 4DL.

The registered address for Forth Sector and Forth Sector Development Ltd is Duddingston Yards, Duddingston Park South, Edinburgh, Lothian, EH15 3NT.

Shaw Trust share of:
2025
Forth Sector
Ixion Holdings (Contracts) Limited
Prospects Services
Homes2Inspire Limited
Homes2Inspire Services Limited
Shaw Education Trust
Total		 Total assets
Total liabilities
Gross
incoming
resources
Net surplus /
(deficit) of
income over
expenditure
£'000
£'000
£'000
£'000
2,007
(3,021)
477
7
5,616
(1,520)
4,470
(1,460)
22,875
(2,747)
26,725
1,534
17,889
(15,687)
41,215
215
5,256
(5,224)
6,588
(69)
223,149
(16,092)
137,020
33
276,792
(44,291)
216,495
260

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Annual report and financial statements for the year ended 31 August 2025

Shaw Trust share of:
2024
Forth Sector
Ixion Holdings (Contracts) Limited
Prospects Services
Homes2Inspire Limited
Shaw Education Trust
Total		 Total assets
Total liabilities
Gross incoming
resources
Net surplus /
(deficit) of
income over
expenditure
£'000
£'000
£'000
£'000
2,078
(3,099)
742
(427)
3,166
(2,609)
11,200
(1,550)
24,744
(6,150)
30,789
1,029
17,595
(15,608)
38,685
2,866
226,746
(16,949)
150,782
21,391
274,329
(44,415)
232,198
23,309

Only the material subsidiaries’ results have been disclosed.

Prospects Services and Homes2Inspire Limited are part of the Prospects Group.

10. Investments in financial securities

As a part of the Charity's investment policy, a portion of funds available for investment is held in a broad range of UK and overseas listed equities, Government and corporate bonds and alternative investments, in order to generate capital growth without exposure to undue risk. These funds were held for the medium-term and as a result, and in accordance with accounting guidance, these investments were classified as fixed assets.

The movement on the value of the investments during the year is as follows:

Group Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
At 1 September 2024 8,419 4,949 5,317 4,949
Additions at cost - 3,000 - -
Dividends received 71 52 71 52
Interest received 42 63 41 63
Management charges paid (23) (20) (23) (20)
Net gain on revaluation 201 375 311 273
At 31 August 2025 8,710 8,419 5,717 5,317

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Annual report and financial statements for the year ended 31 August 2025

10. Investments in financial securities (continued)

Value of investments Group Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Investments listed on a UK recognised stock
exchange, or valued by reference to one		 861 756 861 756
Investments listed on a non-UK recognised stock
exchange, or valued by reference to one		 3,154 2,200 3,154 2,200
UK Government and Corporate Bonds 1,002 799 1,002 799
Other investments 3,568 3,510 575 408
Cash and settlements pending 125 1,154 125 1,154
At 31 August 2025 8,710 8,419 5,717 5,317
Short term investments Group Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Unlisted investments in fixed interest bank
accounts		 7,760 7,340 109 107

11. Palmer Gardens

The Shaw Trust Limited is the corporate Trustee of Palmer Gardens, which is a charitable trust, first registered as a charity on 25 March 1977. Under a Scheme dated 21 August 2008, a uniting direction was passed combining The Shaw Trust Limited and Palmer Gardens for accounting purposes. Consequently, the trading results, assets and liabilities of Palmer Gardens are accounted for within the restricted funds of The Shaw Trust Limited. The financial results of Palmer Gardens are shown below.

As at 31 August 2025, Palmer Gardens has a Revenue Fund of £Nil (2024: £Nil) and a Capital Fund of £442,000 (2024: £435,000).

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Annual report and financial statements for the year ended 31 August 2025

11. Palmer Gardens (continued)

The income and expenditure account for the Revenue Fund is set out below:

Revenue Fund 2025 2024
£'000 £'000
Turnover 752 720
Cost of sales (346) (334)
Gross Profit 406 386
Selling and distribution (391) (348)
Administration (90) (92)
Finance (10) (9)
Operating deficit (85) (63)
Support costs (103) (28)
Depreciation (17) 15
Net deficit (205) (76)
Palmer Gardens Revenue Fund brought forward - -
Transfer from capital fund 17 (15)
Donation from Shaw Trust to Palmer Gardens 188 91
Balance of restricted revenue reserve (see note 19) - -

The assets and liabilities for the Capital Fund are set out below:

Capital Fund 2025 2024
£'000 £'000
Fixed assets
Palmer Gardens 442 454
Analysis of net assets:
Current assets – stock 117 115
Current liabilities - creditors Shaw Trust (117) (115)
Net current assets - -
Total assets less current liabilities 442 454
Funds
Restricted capital funds 442 454
Total (see note 19) 442 454

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Annual report and financial statements for the year ended 31 August 2025

12. Stocks

Group Charity
Finished goods 2025 2024 2025 2024
£'000 £'000 £'000 £'000
Plants, shrubs, nursery, and books 116 193 116 192
Shop stock 18 9 18 9
Total 134 202 134 201

13. Debtors – amounts falling due within one year

Group Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Amounts falling due within one year:
Trade debtors 18,164 16,323 3,270 4,784
Amounts due from group undertakings - - - 894
Deferred tax asset 84 41 - -
Other debtors 3,768 2,237 131 193
Prepayments and accrued income 26,002 18,757 12,997 7,682
Total 48,018 37,358 16,398 13,553

14. Debtors – amounts falling due after more than one year

Deferred tax asset
Total debtors greater than one year		 Group
Charity
2025
2024
2025
2024
£'000
£'000
£'000
£'000
178
302
-
-
178
302
-
-

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Annual report and financial statements for the year ended 31 August 2025

15. Deferred taxation

Accelerated capital allowances
Short term timing differences – trading
Analysed as:
Amount due within one year
Amount due after more than one year
Movement in year
Opening balance
Changes in deferred tax
Closing balance		 2025
2024
£’000
£’000
198
199
64
144
262
343
84
41
178
302
262
343
343
393
(81)
(50)
262
343

The amount of the net reversal of deferred tax expected to occur next year relating to the reversal of existing timing differences on tangible fixed assets and the origination of new timing differences on intangible fixed assets is £Nil.

The Group has unrecognised deferred tax assets of £358k (2024: £280k).

16. Creditors - amounts falling due within one year

Group Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Trade creditors 2,729 3,044 1,315 964
Taxation and social security 6,322 6,154 2,211 2,576
Other creditors 4,425 6,361 1,634 1,762
Other loans 172 224 - -
Amounts due to group undertakings - - 2,887 -
Accruals 10,826 10,382 3,364 3,099
Deferred income 15,250 13,640 9,988 9,611
Total 39,724 39,805 21,399 18,012

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

63

16. Creditors - amounts falling due within one year (continued)

Analysis of movement in deferred income

Group Charity
£'000 £'000
At 1 September 2024 13,640 9,611
Deferred in year 14,709 9,629
Released as income in year (13,099) (9,252)
At 31 August 2025 15,250 9,988

Deferred income relates to income from several service contracts where invoicing in advance has been agreed so as to provide funding prior to the periods in which the services are delivered and performance obligations satisfied.

16b. Creditors - amounts falling due after one year

Group Charity Charity
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Amounts falling due after one year:
Other loans 142 365 - -
Other creditors 85 - - -
Total 227 365 - -

Other loans are wholly repayable within five years. Interest is incurred at various rates including an interest-free loan, 1.23% and 2.21% concessionary loans and 5% fixed rate loans.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

64

17. Provision for liabilities and charges

Group Dilapidations Other Total
Provisions
£'000 £'000 £'000
At 1 September 2024 2,353 2,873 5,226
Transfers in (shops) 241 - 241
Created during the Year 413 3,150 3,563
Utilised during the year (222) (991) (1,213)
At 31 August 2025 2,785 5,032 7,817
Charity Dilapidations Other Total
Provisions
£'000 £'000 £'000
At 1 September 2024 1,283 1,076 2,359
Transfers in (shops) 241 - 241
Created during the Year 162 2,487 2,649
Utilised duringtheyear (208) (565) (773)
At 31 August 2025 1,478 2,998 4,476

The dilapidations provision relates to the costs that the Charity will possibly incur in reinstating its leased properties to original condition, accrued over the length of the lease. We have estimated the cost at a historic average cost and used the calculation to estimate the future cost. This rate will be reassessed on an annual basis to keep it up to date. Future costs are uncertain, hence the provision.

The other provisions are provided for Shaw Trust employability contracts taking into account contractual obligation and rates from the most recent inspections. Some contracts are being inspected now, and others will be subject to inspection very soon. The Charity is finalising the details with relevant commissioners.

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Annual report and financial statements for the year ended 31 August 2025

18. Unrestricted funds

Movement in Funds Movement in Funds
At 1
September
2024		 Incoming (Outgoing) Transfer At 31 August
2025
Group £'000 £'000 £'000 £'000 £'000
Designated funds 4,414 - - (1,826) 2,588
General funds 28,832 143,084 (140,531) 1,927 33,312
Total unrestricted funds 33,246 143,084 (140,531) 101 35,900
Movement in Funds Movement in Funds
At 1
September		 Incoming (Outgoing) Transfer At 31 August
2025
2024
Charity £'000 £'000 £'000 £'000 £'000
Designated funds 3,169 - - (1,809) 1,360
General funds 22,729 68,447 (65,423) 1,883 27,636
Total unrestricted funds 25,898 68,447 (65,423) 74 28,996

The designated fund represents the Trust’s fixed assets which are not subject to restriction or linked to the revolving credit facility and commitments set aside for the Shaw Trust Foundation’s activities.

Movement in Funds
2024 comparatives At 1 September
2023		 Incoming (Outgoing) Transfer At 31 August
2024
Group £'000 £'000 £'000 £'000 £'000
Designated funds 2,616 - - 1,798 4,414
General funds 23,759 159,033 (151,985) (1,975) 28,832
Total unrestricted funds 26,375 159,033 (151,985) (177) 33,246
Movement in Funds
2024 comparatives At 1
September		 Incoming (Outgoing) Transfer At 31 August
2024
2023
Charity £'000 £'000 £'000 £'000 £'000
Designated funds 2,411 - - 758 3,169
General funds 33,331 75,899 (85,578) (923) 22,729
Total unrestricted funds 35,742 75,899 (85,578) (165) 25,898

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Annual report and financial statements for the year ended 31 August 2025

19. Restricted funds

Group and Charity At 1 Incoming (Outgoing) Transfers At 31
September August
2024 2025
£'000 £'000 £'000 £'000 £'000
DIG for Dinner 38 - - (38) -
Doncaster Borough Council
(guarantee)		 250 - - (250) -
Palmer Gardens Fund (Capital) 454 - (17) 5 442
Palmer Gardens Fund (Revenue) - 752 (940) 188 -
Employment Action Centre (Capital) 649 - (649) - -
Disability Action Centre (Capital) 766 - (25) - 741
Shaw Trust Clamp Hill 5 - (5) - -
Foundation – Somerset Partnership - 212 (33) - 179
Foundation – Northamptonshire Children’s - 56 - - 56
Trust
Foundation – West London Alliance - 40 - - 40
Charities Aid Foundation - - (21) 21 -
West London Works - 2,556 (2,556) - -
Thrive 2.0 - 2,453 (2,453) - -
Other 3 - (3) - -
Total Charity 2,165 6,069 (6,702) (74) 1,458
Shaw Education Trust 207,023 137,020 (136,986) - 207,057
Newfriars College 2,774 4,345 (7,119) - -
Forth Sector Group (667) 556 (524) - (635)
Charities Aid Foundation (Ixion) - - 1 (1) -
Somerset Partnership
(Homes2Inspire)		 26 - - (26) -
Total Group 211,321 147,990 (151,330) (101) 207,880

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Annual report and financial statements for the year ended 31 August 2025

19. Restricted funds (continued)

19. Restricted funds (continued)
Group and Charity At 1 Incoming (Outgoing) Transfers At 31
September August
2023 2024
£'000 £'000 £'000 £'000 £'000
DIG for Dinner 38 - - - 38
Doncaster Borough Council
(guarantee)		 250 - - - 250
Palmer Gardens Fund (Capital) 435 - 15 4 454
Palmer Gardens Fund (Revenue) - 720 (811) 91 -
Employment Action Centre (Capital) 669 - (20) - 649
Disability Action Centre (Capital) 790 - (24) - 766
Shaw Trust Clamp Hill 5 - - - 5
Disabled Living Foundation - 108 (108) - -
Charities Aid Foundation - 18 (88) 70 -
Find Your Future - 216 (216) - -
Spark Change - 373 (373) - -
West London Works - 2,494 (2,494) - -
Thrive 2.0 - 1,984 (1,984) -
Other 3 - - - 3
Total Charity 2,190 5,913 (6,103) 165 2,165
Shaw Education Trust 188,406 150,782 (129,391) - 209,797
Forth Sector Group (235) 875 (1,307) - (667)
Charities Aid Foundation (Ixion) - - (11) 11 -
National Lottery Community Fund
(Ixion)		 - - (1) 1 -
Somerset Partnership
(Homes2Inspire)		 26 - - - 26
Total Group 190,387 157,570 (136,813) 177 211,321

The DIG for Dinner project established a sustainable community food growing initiative in a deprived area of County Durham by teaching people how to grow their own food, to produce food locally and to contribute to local food networks. The project provided practical and purposeful activities for people with learning disabilities and mental ill health as well as volunteering opportunities for local people, school children, and community groups. Funding was also received from Rothley Trust and Hadrian Trust.

Doncaster Borough Council guarantee relates to an amount held in relation to a pension scheme. This pension scheme has been exited, and this guarantee is no longer required.

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Annual report and financial statements for the year ended 31 August 2025

19. Restricted funds (continued)

Palmer Gardens is a vocational training centre, and the restricted capital fund relates to the construction of the original training centre and later expansion of the facilities. Depreciation is charged in the normal course of business and is initially charged to unrestricted costs and transferred here to reduce the capital value of the asset.

The Employment Action Centre (EAC) provided, within a multi-functional resource centre, a holistic approach to the employment needs of people living in Middlesbrough who are disabled and disadvantaged. This centre was disposed of in the year.

The Disability Action Centre (DAC) is a highly innovative, multi-function centre, which integrates independent living services with training, employment, and disability consultancy services. The fund relates to the construction of the centre. Depreciation is charged in the normal course of business and is initially charged to unrestricted costs and transferred here to reduce the capital value of the asset.

Shaw Trust Clamp Hill received donations to contribute towards client activities.

Three Foundation funds have been established in the year linked to the operational contracts where an element of the contract funding received must be used on specific projects in conjunction with the contract funder.

West London Works and Thrive 2.0 are employment contracts with specific contract terms and conditions requiring them to be treated as restricted funds, including restrictions on the use of the funding, approval of any changes to the projects and ability to withhold spend.

Charities Aid Foundation - This was a grant awarded in March 2021 from the Covid-19 Support Fund (initially a three-year contract but funds were spent by September 2024). With a particular focus on care, construction, and business sectors it was to fund learning and development post-Covid to support people back into employment. Movement during the year relates to the costs of operational activity and a transfer from unrestricted funds made to remove the resulting operational deficit.

The total funds of the charity subsidiary, Forth Sector, are treated as restricted in the consolidated accounts due to their charitable objectives being narrower in scope. Forth Sector is now making a surplus annually and the deficit funds are expected to be made good over time.

The funds received by The Shaw Education Trust from the Department of Education can only be used to run the organisation and the academies that form part of The Shaw Education Trust.

Newfriars College has been separated from the SET Group and deconsolidated after control of the entity ceased as at 31 March 2025.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

69

20. Analysis of net assets between funds

Designated Unrestricted Restricted Total
funds
2025
Group £'000 £'000 £'000 £'000
Fund balances are represented by:
Intangible fixed assets - 52 35 87
Tangible fixed assets 2,133 5,000 192,756 199,889
Investments in financial securities - 5,717 2,993 8,710
Net current assets 455 30,445 12,808 43,708
Long-term liabilities - (85) (142) (227)
Provisions for liabilities and charges - (7,817) - (7,817)
Pension liability - - (570) (570)
Total net assets at 31 August 2025 2,588 33,312 207,880 243,780
Designated Unrestricted Restricted Total
funds
2025
Charity £'000 £'000 £'000 £'000
Fund balances are represented by:
Intangible fixed assets - 49 - 49
Tangible fixed assets 905 - 1,184 2,089
Investment in subsidiaries - 22,568 - 22,568
Investments in financial securities - 5,717 - 5,717
Net current assets 455 3,777 274 4,506
Provisions for liabilities and charges - (4,476) - (4,476)
Total net assets at 31 August 2025 1,360 27,635 1,458 30,453
2024 Comparison
Designated Unrestricted Restricted Total
funds
2024
Group £'000 £'000 £'000 £'000
Fund balances are represented by:
Intangible fixed assets - 99 49 148
Tangible fixed assets 2,414 5,000 200,949 208,363
Investments in financial securities - 5,317 3,102 8,419
Net current assets 2,000 23,642 11,392 37,034
Long-term liabilities - - (365) (365)
Provisions for liabilities and charges - (5,226) - (5,226)
Pension liability - - (3,806) (3,806)
Total net assets at 31 August 2024 4,414 28,832 211,321 244,567

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Annual report and financial statements for the year ended 31 August 2025

20. Analysis of net assets between funds (continued)

Designated Unrestricted Restricted Total
funds
2024
Charity £'000 £'000 £'000 £'000
Fund balances are represented by:
Intangible fixed assets - 94 - 94
Tangible fixed assets 1,169 - 1,868 3,037
Investment in subsidiaries - 17,568 - 17,568
Investments in financial securities - 5,317 - 5,317
Net current assets 2,000 2,109 297 4,406
Provisions for liabilities and charges - (2,359) - (2,359)
Total net assets at 31 August 2024 3,169 22,729 2,165 28,063

21. Taxation

The Charity has no liability to corporation tax as it satisfies the criteria for its income and gains to be exempt from corporation tax. Members of the Group without charitable status are charged corporation tax on their income and gains.

Deferred tax assets recognised by Group companies are shown in note 15.

Tax charges for the year are:
Total current tax
Deferred tax:
Origination and reversal of timing differences
Adjustment in respect of prior periods
Total deferred tax
Tax on income and expenditure
Tax on other recognised gains and losses
Total tax charge recognised in the SOFA		 2025
£’000
-
36
-
36
36
45
81		 2024
£’000
-
28
-
28
28
(9)
19

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Annual report and financial statements for the year ended 31 August 2025

21. Taxation (continued)

The tax assessed for the year is lower (2024: lower) than the standard rate of corporation tax of 25% (2024: 25%). The differences are explained as follows:

2025 2024
£’000 £’000
Net income before taxation 2,206 27,001
Net income before tax multiplied by the UK Corporation Tax rate of 25% 551 6,750
Effects of:
Charitable income and expenditure not subject to corporation tax (663) (4,468)
Expenses not deductible for tax purposes 115 75
Income not taxable - (1,808)
Qualifying charitable donations (30) (24)
Movement in unprovided deferred tax 63 (448)
Other timing differences - (49)
Tax on income and expenditure 36 28
Timing differences arising on pensions remeasurement gains and
losses		 45 (9)
Total tax charge recognised in the SOFA 81 19

22. Financial commitments

At 31 August 2025 the Group and Charity had future minimum lease payments under non-cancellable operating leases expiring as follows:

Property Other
Group 2025 2024 2025 2024
£'000 £'000 £'000 £'000
Within one year 2,934 2,941 409 443
Between one and five years 5,145 4,547 216 352
After five years 6,297 853 - -
Total 14,376 8,341 625 794
Property Other
Charity 2025 2024 2025 2024
£'000 £'000 £'000 £'000
Within one year 1,177 1,083 32 35
Between one and five years 760 635 15 21
After five years - - - -
Total 1,937 1,718 47 56

Other operating leases relate to motor vehicles and computer equipment.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

72

23. Capital commitments

As at 31 August 2025 the Group had capital commitments of £Nil (2024: £331k).

24. Pension commitments

At 31 August 2025 the Charity and other members of the Group participated in defined benefit pension schemes including the Local Government Pension Scheme (LGPS) and the Teachers' Pension Scheme England and Wales (TPS). The Group exited a Gloucestershire LGPS on 30 September 2024 and is in the process of exiting the Prudential Platinum Pension Schemes. Liability for the Newfriars College LGPS transferred out of the Group on 31 March 2025.

The Group has accounted for its contributions to the TPS as if it were a defined contribution scheme. The Group's academic and related employees of the Shaw Education Trust belong to the TPS, which is a statutory, contributory, defined benefit scheme. The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every four years. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. A copy of the valuation report and supporting documentation is on the Teachers' Pensions website:

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Group is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Group has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The employer's pension costs paid to TPS in the year amounted to £11,342k (2024: £9,660k).

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Annual report and financial statements for the year ended 31 August 2025

24. Pension commitments (continued)

The defined benefit pension schemes for which the Group is able to identify its share of the fair value of the assets and liabilities were:

2025 2024
Total share
of scheme
assets		 Present value
of scheme
liabilities		 Asset
ceiling		 Net
pension
deficit		 Net
pension
deficit
£'000 £'000 £'000 £'000 £'000
Shaw Trust: Prudential Platinum (being - - - - -
exited)
Total Charity - - - - -
Shaw Education Trust: LGPS 99,994 (73,075) (27,489) (570) (3,806)
Prospects Services: Prudential Platinum
(being exited) and LGPS		 2,808 (1,346) (1,462) - -
Total Group 102,802 (74,421) (28,951) (570) (3,806)

The total consolidated cost recognised in the SOFA relating to the above defined benefit plans was:

Group Group
2025 2024
£'000 £'000
Expenditure on charitable activities:
Operating costs 4,952 5,317
Settlements 50 -
Net interest income (354) (369)
Total recognised in resources expended 4,648 4,948
Other recognised gains and losses:
Disposal of operations (Newfriars College) (549) -
Remeasurement gains (468) (591)
Total recognised in the SOFA 3,631 4,357

In addition to the above, estimated fund exit credits totaling £50k (2024: £Nil) have also been recognised in the SOFA.

Operating costs include current and past service costs and administration expenses.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

74

24. Pension commitments (continued)

Remeasurement gains and losses include actuarial gains and losses, return on plan assets (excluding interest), and change in asset ceiling (derecognised surplus).

The Shaw Trust Ltd: Platinum Pension Scheme

At 31 August 2025 Shaw Trust no longer actively participated in any defined benefit pension schemes. The Prudential Platinum defined benefit pension scheme is in the process of being formally exited. A full actuarial valuation of the Scheme was carried out as at 31 March 2021 and has been updated as below by a qualified independent actuary.

The principal actuarial assumptions used were:

2025 2024
Expected rate of salary increases N/A N/A
Expected rate of increase of pensions in payments 2.90% 3.20%
Rate of inflation 2.90% 3.00%
Discount rate 6.00% 5.00%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 85.3 85.8
- Women 88.2 88.3
Longevity at 65 for future pensioners:
- Men 87.1 87.1
- Women 89.6 89.8

Reconciliation of scheme assets and liabilities:

Assets Liabilities Asset Total
ceiling
£’000 £’000 £’000 £’000
At 1 September 2024 856 (742) (114) -
Benefits paid (33) 33 - -
Interest income / (expense) 42 (36) - 6
Change in asset ceiling - - 65 65
Remeasurement gains / losses
- Actuarial gain - 123 - 123
- Return on plan assets excluding interest income (144) - - (144)
Settlements – Plan exit (721) 622 49 (50)
At 31 August 2025 - - - -

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

75

24. Pension commitments (continued)

The total actual loss on plan assets (including interest income) for the year was £102k loss (2024: £64k return).

The total cost recognised in the SOFA relating to the Charity's defined benefit plans was:

2025 2024
£'000 £'000
Recognised in total resources expended 44 85
Other recognised gains and losses (44) (56)
Total recognised in the SOFA - 29

In addition to the above, an estimated fund exit credit of £50k (2024: £Nil) has also been recognised in the SOFA.

The Shaw Education Trust: LGPS

The Group's non-teaching employees of The Shaw Education Trust belong to the multi-employer Local Government Pension Scheme (LGPS). The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee administered funds. The Group participated in pension funds for Staffordshire, Greater Manchester, West Midlands, Cheshire, Derbyshire, and Newfriars College. Newfriars College ceased to be a subsidiary during the year. The latest actuarial valuation of the LGPS was as at 31 March 2022 and has been updated to 31 August 2025 by a qualified independent actuary.

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Annual report and financial statements for the year ended 31 August 2025

24. Pension commitments (continued)

The principal actuarial assumptions used were:

2025 2024
Expected rate of salary increases 3.20 - 3.70% 3.15 - 3.65%
Expected rate of increase of pensions in payments 2.70% 2.65%
Rate of inflation 2.70% 2.64 - 2.65%
Discount rate 6.05 - 6.10% 5.00%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 85.1 - 86.1 84.7 - 85.9
- Women 88.2 - 89.1 88.2 - 89.0
Longevity at 65 for future pensioners:
- Men 83.9 - 86.8 83.7 - 86.5
- Women 89.6 - 90.3 89.6 - 90.3

Reconciliation of scheme assets and liabilities:

Assets Liabilities Asset Total
ceiling
£’000 £’000 £’000 £’000
At 1 September 2024 91,216 (87,527) (7,495) (3,806)
Transfer out – Newfriars College (4,139) 4,688 - 549
Current service cost - (4,686) - (4,686)
Interest income / (expense) 4,527 (4,261) - 266
Employer contributions 6,863 - - 6,863
Employee contributions 1,682 (1,682) - -
Benefits paid (1,412) 1,412 - -
Change in asset ceiling - - (19,994) (19,994)
Remeasurement gains / losses
- Actuarial gain - 18,981 - 18,981
- Return on plan assets excluding interest income 1,257 - - 1,257
At 31 August 2025 99,994 (73,075) (27,489) (570)

The major categories of plan assets as a percentage of total plan assets were:

2025 2024
Equities 61% 63%
Corporate bonds 27% 26%
Property 8% 8%
Cash and other liquid assets 4% 4%

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

77

24. Pension commitments (continued)

The total actual return on plan assets (including interest income) for the year was £5,784k (2024: £8,636k).

The total cost recognised in the SOFA relating to the Shaw Education Trust's defined benefit plans was:

2025 2024
£'000 £'000
Recognised in total resources expended 4,420 4,789
Other recognised gains and losses (793) (570)
Total recognised in the SOFA 3,627 4,219

Prospects Services: Platinum Scheme and LGPS

At 31 August 2025 a Group subsidiary, Prospects Services, held defined benefit pension funds with the Local Government Pension Scheme (LGPS) for Northamptonshire and West Midlands. The LGPS is a funded multi-employer defined benefit pension scheme, with the assets held in separate trustee administered funds. A Gloucestershire LGPS was exited on 30 September 2024 and a Prudential Platinum defined benefit pension scheme is in the process of being formally exited.

The latest actuarial valuations of the schemes have been updated to 31 August 2025 by qualified independent actuaries.

The principal actuarial assumptions used were:

The principal actuarial assumptions used were:
2025 2024
Expected rate of salary increases 3.20 - 3.70% 3.15 - 3.65%
Expected rate of increase of pensions in payments 2.70 - 2.90% 2.65 - 3.00%
Rate of inflation 2.70 - 2.90% 2.65 - 3.00%
Discount rate 6.00 - 6.05% 5.00%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 85.3 - 86.3 85.5 - 87.0
- Women 88.2 - 90.1 87.8 - 90.0
Longevity at 65 for future pensioners:
- Men 86.6 - 87.1 86.3 - 87.1
- Women 89.6 - 90.1 90.0 - 90.5

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

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24. Pension commitments (continued)

Reconciliation of scheme assets and liabilities:

Assets Liabilities Asset Total
ceiling
£’000 £’000 £’000 £’000
At 1 September 2024 32,612 (22,591) (10,021) -
Administration expenses (236) - - (236)
Benefits paid (106) 106 - -
Employer contributions 4 - - 4
Employee contributions 12 (12) - -
Current service cost - (30) - (30)
Interest income / (expense) 446 (364) - 82
Change in asset ceiling - - (214) (214)
Remeasurement gains / losses:
- Actuarial gain - 1,337 - 1,337
- Other assumptions - 7 - 7
- Return on plan assets excluding interest income (950) - - (950)
Settlements – Plan exit (28,974) 20,201 8,773 -
At 31 August 2025 2,808 (1,346) (1,462) -

The major categories of plan assets as a percentage of total plan assets were:

2025 2024
Equities 53% 50%
Corporate bonds 30% 18%
Property 14% 11%
Insured annuities 0% 18%
Cash 3% 3%

The total actual loss on plan assets (including interest income) for the year was £504k loss (2024: £2,611k return).

The total cost recognised in the SOFA relating to the Prospects Services defined benefit plans was:

2025 2024
£'000 £'000
Recognised in total resources expended 184 74
Other recognised gains and losses (180) 35
Total recognised in the SOFA 4 109

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

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25. Business combinations

Academy conversions: The Shaw Education Trust (SET)

SET was incorporated as a wholly owned subsidiary on 2 June 2014 as a multi academy trust to affect the sponsorship of three special schools/academies in Staffordshire. SET has grown to operate over thirty academies and a Specialist Independent College across several areas of the UK.

During the year, no schools were acquired by SET (2024: three acquired).

The following table sets out the total fair values of the identifiable assets and liabilities transferred.

2025 2024
£'000 £'000
Tangible fixed assets - 20,747
Cash at bank - 1,606
Current Assets - 65
Liabilities < one year - (477)
Pension liability - (24)
Net assets acquired - 21,917
Acquisition Cost - -
Goodwill arising from acquisition - -

The net assets acquired in the prior year were recorded as a donation received in the Group Statement of Financial Activities.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

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26. Related party transactions

Related party transactions amongst Group entities for the year included staff and central management recharges, Gift Aid profits, cash transfers, loans and balances written off and purchases of goods and services. The transactions in year of each entity with other Group entities are disclosed below.

Intra-Group Transactions Central Purchase Corporate Share Net advances Balance Investment
– year ended 31 August and staff of Gift Aid capital and write offs impairment
2025 recharges services repayments
2025 2025 2025 2025 2025 2025 2025
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Forth Sector (156) - 96 - 34 - -
Forth Sector Development Ltd (3) - (96) - 342 - -
Good Work Partners Ltd (38) - - - 9 78 -
Homes2Inspire Ltd (2,846) 3,553 - - 405 - -
Homes2Inspire Services Ltd (1,809) (3,553) - - 1,053 (100) -
Ixion CG Ltd - - - - - (26) -
Ixion Social Enterprise Ltd - - - - - (751) -
Ixion Holdings (Contracts) Ltd (2,259) 16 - 5,000 950 782 -
Prospects Education Services - - - - (21) 21 -
Ltd
Prospects Group (2011) Ltd - - - - (57) 100 -
Prospects Services (9,680) (13) - - 12,752 (1) -
The Shaw Trust Ltd 16,791 13 - (5,000) (15,483) (103) -
The Shaw Education Trust - (16) - - 16 - -
Total - - - - - - -

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

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26. Related party transactions (continued)

Intra-Group Transactions Central Purchase Corporate Share Net advances Balance Investment
– year ended 31 August
2024		 and staff
recharges		 of
services		 Gift Aid capital and
repayments		 write offs impairment
2024 2024 2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Forth Sector (140) - - - (358) 12 -
Forth Sector Development Ltd (2) - (102) - 24 - -
Good Work Partners Ltd (125) - - 200 (125) - -
Homes2Inspire Ltd (2,639) (2) - - 4,102 5 -
Homes2Inspire Services Ltd - - - 100 (25) - -
Ixion Holdings (Contracts) Ltd (3,682) 46 - 2,000 982 122 -
Optimus Education Ltd (179) 7 - - 210 (44) -
Prospects Education Services - - - - (2) - -
Ltd
Prospects Group (2011) Ltd - - - (100) (2) - -
Prospects Services (10,080) (1) - - 5,058 430 -
The Shaw Trust Ltd 16,847 (28) 102 (2,200) (9,699) (690) (7,987)
Shaw Trust Services Ltd - 6 - - (165) 165 -
The Shaw Education Trust 45 (28) - - - - -
Newfriars College (45) - - - - - -
Total - - - - - - (7,987)

Net advances and repayments includes the net of working capital cash transfers, and VAT, payroll, and supplier payments on behalf of other entities in the Group.

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

82

26. Related party transactions (continued)

The net amount outstanding with other entities within the Group at the year end are:

Intra-Group Balances 2025 2024
£'000 £'000
Forth Sector (2,872) (2,845)
Forth Sector Development Ltd 384 142
Good Work Partners Ltd (1) (51)
Homes2Inspire Ltd (11,693) (12,805)
Homes2Inspire Services Ltd (4,334) 75
Ixion CG Ltd - 26
Ixion Social Enterprise Ltd - 751
Ixion Holdings (Contracts) Ltd 4,501 13
Prospects Education Services Ltd - (8)
Prospects Group (2011) Ltd (57) (6,759)
Prospects Services 13,926 10,869
The Shaw Trust Ltd (2,887) 7,559
The Shaw Trust Ltd - receivables impaired 3,033 3,033
The Shaw Education Trust - 522
Newfriars College - (522)
Total - -

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

83

26. Related party transactions (continued)

The Charity requires all Trustees and the Executive Management Team to complete a Declaration of Interest. The table below shows all the related parties that have been disclosed and the value of both income and expenditure that the Charity has incurred with these bodies during the period ended 31 August 2025. These transactions were as a result of normal business activity. The entities below have key management personnel in common with the Trustees and Executive Management Team of the Group.

Outstanding Outstanding
Value of Value of balance at Value of balance at
Related Party sales expenditure 31 August expenditure 31 August
2025 £ 2025 £ 2025 £ 2024 £ 2024 £
1Business Services Association - 24,322 - 11,582 -
1ERSA (UK) Limited - 19,692 10,380 28,475 12,000
1Social Enterprise Coalition CIC - 3,250 - 5,435 -
2Care Management Associates Ltd - 56,588 25,174 43,697 -
3Horizons Therapeutic Education
Trust		 61,099 - 17,160 - -
4Equals Charity - - - 966 -
4RM Education Ltd - 18,375 22,999 11,476 -
4Ambition Institute - 23,693 - - -
5The National Association of Special
Educational Needs (nasen)		 - 487 - - -

The Shaw Trust Limited Annual report and financial statements for the year ended 31 August 2025

84

27. Financial instruments

Group Charity
Note 2025 2024 2025 2024
£'000 £'000 £'000 £'000
Financial Assets
Trade debtors 13 18,164 16,323 3,270 4,784
Intercompany - - - 893
Other debtors 13 3,768 2,237 131 193
Investment in financial securities 10 16,361 15,652 5,717 5,317
Total Financial Assets 38,293 34,212 9,118 11,187
Financial Liabilities
Trade creditors 16 2,729 3,044 1,315 964
Amounts due to group undertakings 16 - - 2,887 -
Other creditors 16 4,425 6,361 1,634 1,762
Loans 16/16b 314 589 - -
Accruals 16 10,826 10,382 3,364 3,099
Total Financial Liabilities 18,294 20,376 9,200 5,825

28. Post balance sheet events

On 1 September 2025, SET moved out of the Group when Shaw Trust relinquished being the controlling Member. SET funds are all within restricted funds in the Group financial statements and post year end the restricted funds will therefore reduce by £207.1m. During the year ended 31 August 2025 the total income and expenditure of SET was £137.0m and £137.1m respectively.

On 27 February 2026, the DAC was sold to a third party. The DAC capital fund forms part of the restricted funds and the sale will be recognised in the financial statements for the year ended 31 August 2026.