2024-12-31-accounts

ESCP EUROPE BUSINESS SCHOOL Annual Report and Financial Statements

31 December 2024

Contents
Introduction	1
Company Information	3
Trustees’ Report, including Strategic Report	4
Trustees’ responsibilities statement	17
Independent auditors’ report to the members of ESCP Europe Business School	18
Consolidated and Institution Statement of Comprehensive Income	20
Consolidated and School Statement of Changes in Reserves	21
Consolidated and School Statement of Financial Position	22
Consolidated Statement of Cash Flows	23
Statement of Principal Accounting Policies	24
Notes to the Financial Statements	29

Introduction

This report and financial statements reflect the activities of ESCP Europe Business School, the London Campus of ESCP. ESCP Europe Business School legally refers to the company registered at Companies House under company number 1876779 and the name “ESCP Europe-Business School”. The commercial name of the entity is ESCP Business School since late 2019.

The ESCP London Campus (or the “Charity”) is a part of EESC ESCP Europe (the “School” and/ or “EESC’’), which is both a leading school of international management and a major European Higher Education institution. EESC ESCP Europe was founded in Paris in 1819 and has since educated generations of leaders, contributing to its fine reputation today. Six campuses in Berlin, London, Madrid, Paris, Turin and Warsaw are the stepping stones that allow students to experience this European approach to management. Over the past 200 years, generations of entrepreneurs and managers have been trained in the firm belief that the business world can positively feed into society. This conviction and EESC ESCP Europe’s values - excellence, singularity, creativity and plurality - guide the School’s mission and build its pedagogical vision daily.

Each year, EESC ESCP Europe welcomes over 11,000 students and 6,000 managers from 136 different nationalities. Its strength lies in its many business training programmes, both general and specialised (Bachelor, Master, MBA, Executive MBA, PhD and Executive Education), all of which include a multi-campus experience.

EESC ESCP Europe is multi-accredited, with AACSB, EQUIS, EFMD MBA, EFMD EMBA, and five European Higher Education accreditations. The School goes through numerous accreditation processes each year, guaranteeing the quality of its programmes and supporting its commitment to continuous improvement.

In 2019, the Charity was registered as a Higher Education provider in the Office for Students Register of Higher Education Providers. Since then, the charity has been following the OfS Accounts Direction, setting out the information that providers are required to include in their audited financial statements. In May 2024, ESCP London Campus was granted the authority by the Office for Students (OfS) to confer Taught awards for an initial period of three years, effective on 2 September 2024.

The portfolio of educational offerings includes the following programmes:

• Master in Management (MiM)

• Specialised Masters (multiple full-time programmes)

• MBA in International Management

• EMBA Programme (Executive MBA)

• Bachelor (BSc.) in Management

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Annual Report and Financial Statements for the year ending 31 December 2024

Introduction

EESC ESCP Europe is committed to providing executive education alongside its degree programmes, offering custom and open enrolment programmes annually across its campuses.

The School’s excellence in higher education is consistently recognised in international rankings. The Financial Times ranks flagship programmes such as the Master in Management (MIM) and Master in Finance (MIF) among the top six globally, while EESC ESCP Europe is among the top five business schools across its six campus countries.

In the 2024 rankings, EESC ESCP Europe further strengthened its position in the UK, placing among the top two for the EMBA, MIF, and MIM. Additionally, the Financial Times European Business Schools Rankings placed the School fifth in Europe in December 2024. The MSc in Marketing and Creativity (MMK) maintained its fourth worldwide position in the QS Business Masters Rankings 2024 (Marketing category) for the third consecutive year.

In 2024, ESCP London Campus was shortlisted for the UK Business School of the Year award by Times Higher Education. Additionally, it received recognition in two categories at the Independent Higher Education Awards: Advancing International Education and Empowering Student Voice, winning the latter.

The School has 150 academic alliances in Europe and the world in 50 countries. There are more than 85,000 alumni active in over 190 countries.

Research is a major priority at EESC ESCP Europe. The team of 200 international Faculty members are constantly striving to create new knowledge. The aim is to bring new insights to the global academic community and provide innovative content for teaching and business practice.

Until 31 December 2017, EESC ESCP Europe was part of the Chambre of Commerce and d’Industrie of Paris Region Ile-de-France (the CCIR). From January 2018, the parent company and sole member of the Charity is the EESC ESCP Europe.

EESC ESCP Europe (located at 2, rue Armand Moisant - 75015 - Paris - France), is an institution with a specific legal status and form named EESC (Etablissement d’Enseignement Supérieur Consulaire) since the 1st of January, 2018. EESC ESCP Europe is a French autonomous non-profit legal person, subsidiary of the CCIR which is its shareholder at 99.99% and which controls the majority of the voting rights at EESC ESCP Europe’s Board. Therefore, CCIR remains the ultimate parent entity. The CCIR itself is a French administrative public body

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Company Information

Trustees

David Gold (Chairman) (*)

Cecile Andre-Leruste Rodney Eastwood Laurent Feniou Thomas Jeanjean

Leon Laulusa

Joelle Lellouche Laurence Milsted () Nathalie Pierre () Damien Savary

(*) Member of the Audit & Risk Committee

The Etablissement d’Enseignement Superieur Consulaire ESCP Europe (« EESC ESCP Europe ») is the sole member of the Charity. Membership is explained in note 14 to the financial statements.

Registered office: Registration number: Website:

527 Finchley Road, Hampstead, London NW3 7BG SIRET 824 644 587 00027 www.escp.eu

Principal professional advisers

Bankers

Barclays Bank Plc, Oxford City Office, PO Box 333, Oxford OX1 3HS

Solicitors

Beachcroft LLP, 100 Fetter Lane, London EC4A 1BN

Insurer

Zurich Municipal, Zurich House, 2 Gladiator Way, Farnborough, Hampshire GU14 6GB

Chartered accountants and statutory auditors

PricewaterhouseCoopers LLP, 1 Embankment Place, London, WC2N 6RH

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Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

The Trustees present their Trustees report, which incorporates the requirements of the Directors’ report and Strategic Report for the year ended 31 December 2024, together with the group’s audited financial statements for the year. Pages 5 to 9 incorporate the requirements of the strategic report.

Reference and administrative information

The Charity, a company limited by guarantee, was founded in 1985 and is registered with the Charity Commission in England and Wales under Charity number 293027. The Trustees and address of the Charity are listed on page 3. Particulars of the Charity’s professional advisers are also given on page 3.

The Charity was established in the UK with the support of the CCIR in pursuit of its mission of providing education and training in Business Management. It is the London Campus of a sixcampus school, with the other centres being Berlin, Madrid, Paris, Torino and Warsaw. Since 2 January 2018, the immediate parent company and sole member of the Charity is the EESC ESCP Europe, owned by the Charity’s ultimate parent company, the Chambre de Commerce et d’Industrie Paris Region Ile-de-France (the “CCIR”). The EESC ESCP Europe provides rent-free facilities to the Charity.

Structure, governance and management

This section of the Trustees’ report, along with the responsibility statement on page 17, incorporates the requirements of the statements of corporate governance and internal controls required by the OfS Accounts Direction. This covers the year covered by the financial statements and the period up to the date of approval of the audited financial statements.

Governing Document

The Charity is governed by its Memorandum and Articles of Association.

Governing Body

The Charity is governed by its Trustees.

Recruitment of Trustees

The Charity’s Trustees are appointed following a Trustees’ recruitment policy defined by the Charity’s Governance Committee. Trustees are selected based on their knowledge in a specific field, and the Trustee skill register is reviewed on a regular basis.

Organisational Management

The Trustees of the Charity are legally responsible for the overall management and control of the Charity. The Trustees hold Boards of Trustees four times a year and an Annual General Meeting to approve the annual report and financial statements. ESCP Europe Corporate Services Limited (the “Trading”) holds separate Boards of Directors three times a year.

The Audit and Risk Committee meets at least twice a year to review the annual report and financial statements, the accounting systems, the internal controls and audits thereof, and other significant issues.

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The Reward and Remuneration Committee meets once a year to review the framework for the remuneration and terms and conditions of employment of the key management personnel of the Charity. In line with good practice, a range of benchmarking assesses the current positioning of our key management’s pay in the market, including independent higher education institutions and business schools. It ensures that the reward policy of the Charity is appropriate to attract and motivate those individuals to achieve the long-term targets of the Charity.

The Governance Committee meets twice a year to discuss any governance-related matter and to ensure Board effectiveness.

The Charity operates within the national (UK) framework for higher education provision. Prior to 2019, regulatory control was exercised by a national quality assurance agency: the QAA. The Charity successfully met all QAA requirements as an alternative/private provider and, in 2019, registered as a higher education provider with the newly established Office for Students (OfS) under the new regulatory framework for higher education management in the UK. In 2020, the Charity undertook the initial stages of the Full Degree Awarding Powers (DAP) review process, which was granted in May 2024 for an initial period of three years, effective on 2 September 2024.

The ESCP London Campus has a Senior Management Board (“SMB”, led by the Campus Dean) providing strategic and operational control of the business and administration side of the Campus within the parameters of the EESC ESCP Europe governance model. SMB is supported by several subsidiary committees and local governance mechanisms, some of which are subsidiary committees to federal organs.

With respect to supervisory control and governance, the London Board of Trustees (with EESC representation) operates with the addendum of a Corporate Services Board, an Audit & Risk Committee, a Reward & Remuneration Committee and a Governance Committee (see above).

Risk Management and internal control

The Trustees receive and consider reports from the OfS as they affect the Charity’s business and monitor adherence to the regulatory requirements, which includes compliance with the OfS’s ongoing conditions of registration.

The Trustees of the Charity are responsible for the management of the risks faced by the Charity. Detailed risk considerations are delegated to the Audit and Risk Committee, which is assisted by the senior management. Risks are identified and assessed, and controls are reviewed throughout the year. A formal review of the Charity’s risks and their mitigation is undertaken on a termly basis at the Trustee meetings and in a more detailed manner twice a year at the Audit and Risk Committee meetings. Through the risk management processes established for the Charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

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Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Amongst the major risks and uncertainties which the Trustees seek to mitigate at all times, the Trustees try to ensure that:

• business continuity is ensured through appropriate levels of activity, recruitment and commercial performance;

• statutory obligations are met, and compliance actions are undertaken; and

• financial plans and targets are suitably framed and executed.

The Board of Trustees is also committed to ensuring that the Charity:

• continues to recruit and retain high-quality academics to achieve its research aims and teaching goals;

• manages realistically its enrolment targets;

• delivers the courses to which it is publicly committed and at an appropriate standard; and

• • maintains its estate and facilities suitably, considering immediate actions to ensure compliance with all regulatory health and safety requirements and expansion needs in the light of the anticipated growth of the student cohorts in the medium and long term.

Mitigation of these risks is through regular management team meetings and termly Trustees’ meetings typified by reports on:

• student experience and student satisfaction: assessed at periodic intervals through minuted meetings with students’ representatives and implementation and analysis of students’ satisfaction surveys;

• student recruitment: monitored on a monthly basis by the Admissions team, feeding back reporting to the School’s local and federal management and allowing live updates of all financial forecasts;

• staffing requirements: fully understood through termly Professional Resources Committees (“PRCs”) reporting to the SMB;

• progress against financial objectives: subject a quarterly exhaustive reporting submitted to the federal centre assessing performance against budget and campus set targets; and

• estate emergency and maintenance plan: reviewed through regular discussions held with the Freeholder to allow the Campus to communicate and address the needs of the student population and the development of its estate.

The key elements of the Charity’s system of risk identification and management include:

• the integration of planning, risk, KPIs and other performance indicators to provide an efficient reporting and control mechanism;

• the management of risk at a strategic level to ensure that a full picture of risks is available and that significant risks are escalated to the appropriate level;

• business continuity and emergency management, ensuring plans are in place which would address any disaster and emergency situation;

• ensuring that all risks have appropriate ownership so that risks can be controlled appropriately and

• report at least twice a year to the Audit and Risk Committee, which assures the Board of the effectiveness of internal control and risk management arrangements.

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System of internal control and financial statements

In accordance with the Scheme of Reserved and Delegated matters, the Board is responsible for the administration and management of the Charity, including ensuring an effective system of internal control and adopting audited financial statements for each financial year.

The Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the Charity’s financial position and enable it to ensure that the financial statements are prepared in accordance with relevant accounting standards.

The system of internal control is based on an ongoing process designed to identify the principal business, operational, compliance and financial risks; to evaluate the nature and extent of those risks; and to manage them efficiently and effectively. This process was in place for the year that ended 31 December 2024, and up to the date of the approval of the financial statements and in accordance with OfS guidance, there were no significant control weaknesses that should be disclosed.

The key elements of the Charity’s system of internal control include:

• short-term and medium-term planning processes, supplemented by detailed annual income, expenditure, capital and cash flow budgets;

• regular reviews of financial results involving variance reporting and updates of forecast out-turns;

• the attendance of the Charity’s external auditors at each meeting of the Audit and Risk Committee, where through their work, they share their views on areas for improvements in internal control;

• defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to appraisal and review according to approval limits set by the Board; and

• an internal financial control manual updated every year, detailing financial controls and procedures.

Any system of internal control or risk management is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable but not absolute assurance against material misstatement or loss.

Having reviewed all available evidence, the Trustees have satisfied themselves with the adequacy of internal controls for the period 1st January 2024 to the date of signing of the financial statements.

Charitable Objects

The Charity’s Objects, as set out in its Memorandum and Articles of Association, are the advancement of education in the science and practice of professional management in a European context. The Charity seeks to provide education and research in professional management and related subjects and to publish the useful results of such activity for public benefit. The Charity wholly owns ESCP Europe Corporate Services Limited, the objects of which are to carry on business as providers of executive education and training. The subsidiary’s performance for 2024 is given in note 3 to the financial statements.

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Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Strategy

In early 2022, a new 2022-2025 Strategic Plan was rolled out to support the development of all ESCP sister campuses around the themes of Choices and Experiences. A bottom-up approach was taken to develop this strategy, involving the entire ESCP community, with a mission to inspire and educate responsible leaders of the future. This initiative would provide students with greater access to digital and international campus experiences, as well as increased exposure to companies.

With the ambition to support the Federal Strategic Plan as defined above, the London Campus developed its Strategic Plan in 2022 on the following priorities: stabilised growth, integration into the UK business ecosystem and creation of social and environmental impact.

Stabilised growth

Stabilised growth includes identifying and measuring key success factors in different aspects of the business, particularly market positioning, talent attraction, retention, and development. This strategy requires student numbers to grow steadily while the quality of education is maintained and improved. The key feature of this strategy is to move beyond educational experience and enhance the lifetime interaction between students/alumni and the School.

Integration into the UK Business Ecosystem

The strategy aims to establish the ESCP brand within the UK academic and business environments. Degree Awarding Powers, granted in 2024, was one of the key priorities under this strategy. Further important initiatives include a) the establishment of a UK visa route in local and Federal programmes to enable students to apply for the Graduate Visa and work in the UK after graduation; b) the addition of Year 3 Bachelor in Management students to the London Campus; c) further integration into the local rankings; and d) the enhancement of the Executive Education, Corporate Relations and Career Services divisions which will aim to build/ strengthen partnerships with UK-based businesses.

Creation of Social and Environmental Impact

The strategy includes a range of initiatives that create and develop ideas and solutions that have a positive impact on social and environmental sustainability. The Charity’s Sustainability Committee will identify sustainability opportunities and challenges. Other initiatives will seek to inspire and educate future leaders in line with the School’s first priority of taking part in the Experience of our 21st-century challenges.

These will include a) putting sustainability and ESG at the heart of our Campus model by ensuring sustainability literacy for all (professors, students, staff), b) driving research, scholarships and entrepreneurship for societal impact, and c) reframing ESCPs own processes and setting up a dedicated stakeholder council such as Green Deal targets (setting a target of 55% CO2 reduction by 2030, based on an external carbon assessment), Facility Management & Green IT, Green Travel & purchasing policy and staff training on ESG matters; and d) social diversity.

Specialisations

Within the context of the ESCP system of campuses, awards and specialisations, the London Campus will continue to offer specialisations in:

• Marketing & Creativity;

• Digital Transformation;

• Banking, Finance & Investment;

• Responsible Leadership;

• Luxury Management;

• Energy Transition;

• Consultancy & Professional Services; and

• Healthcare and Pharma

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Principal activities of the year

Full-Time Degree Education

In 2024, the London Campus successfully delivered face-to-face teaching as part of 12 full-time degree awards to ~1,400 students.

The programmes included:

• the MBA, BSc, and MSc in Management (as Federal rotational programmes);

• the MSc in Marketing and Creativity, MSc in Energy Management and MSc in Digital Transformation Management and Leadership (as local MSc programmes with one term or semester on a sister campus); and

• the MSc in Finance, MSc in International Business Law and Management, and MSc in Biopharmaceutical Management, plus three additional visiting Masters.

Part-Time Degree Education

During 2024, the provision of Executive Masters part-time degree education continued to be driven by the EMBA programme. It benefited from the boost generated by the continuation of the London online and blended Executive Master in the Future of Energies (“EMFE”).

In addition to Charity’s degree-based education, the Charity and its Trading subsidiary delivered customised educational programmes, responded to a number of RFPs and pursued the offer of short modular courses, master classes, and company consultancy projects.

External links

In the year 2024, the School has been an active member of the UK’s Chartered Association of Business Schools (CABS), the French Chamber of Commerce in Great Britain (CCFGB) and Independent Higher Education (IHE).

The London campus is also home to two business-facing research centres/institutes receiving external support and funding from companies, including L’Oréal. These are the Creativity Marketing Centre (CMC) and the Energy Management Centre (EMC).

Research

As an educational charity and an academic institution, the London Campus endeavours to publish books, academic articles and case studies that receive attention from academics, practitioners and the general public. Highlights for 2024 include:

Publications in listed Peer-Reviewed-Journals:

• 11 publications in world-leading journals;

• 11 articles in internationally excellent journals;

• 6 articles in other peer-reviewed journals; and

• Several articles in professional and academic magazines (e.g., CIPD, World Economic Forum, LSE Business Review, The European: Climate Change Review).

Additionally, in excess of 35 conference and workshop presentations from London faculty members took place in 2024 at national and international academic conferences. Other research-related outputs include:

• 6 book chapter publications;

• 3 impact papers;

• Guest editorships and positions on editorial boards;

• Reviews and service to scientific communities;

• More than 18 appearances in media and posts in blogs and social media; and

• 2 awards: best reviewer and best paper award.

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Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Sustainability

The London Campus continues to improve within this area with the strong support of the Social Impact and Sustainability (ESG) Committee members and its delivery body, the ESCP London Green Office, which manages the approved projects across the Campus.

In early 2024, a student representative from AGORA, ESCP’s elected student union, joined the London ESG Committee to represent students at the decision-making level. The Committee has determined that a student representative from AGORA will continue to represent students at the Committee meetings as part of the London Campus’ efforts to work collaboratively with students to deliver sustainability-related initiatives in an effort to minimise the waste generated on Campus.

Local resource

Since 2004, the operations of the London Campus have been concentrated on a site located in North West London, providing ~4,500 sq.m. The EESC ESCP Europe holds the building freehold. Over the years, the site has undergone several developments, including two extensions and the addition of a new student wing and two temporary classrooms, both completed in 2023. In 2024, additional capacity was created with the conversion of the former library into a classroom and the reconfiguration of an existing classroom, resulting in 130 new seats. A London Estate Masterplan has been produced and will aim to deliver increased study space, teaching space, and infrastructure upgrades and meet all security standards by 2030.

There has been a progressive expansion in the workforce of the Charity to reflect and support its growth. At the end of 2024, full-time faculty numbers are at 27, providing the core of academic support to students. This group is supplemented by over 90 affiliates and visiting faculty. More details on staffing increases are provided in Note 6.

Just over 60 professional services staff members provide resource support and leadership in areas such as finance, HR, marketing, data planning, IT, student services, communications, and events.

With respect to its financial resources, the Charity generated in 2024 annual consolidated revenues of c. £17.1m (2023: £14.5m) without any annual operating subsidy received from the EESC ESCP Europe (excluding rent-free subsidy). While the Charity largely self-funded its operations during the year, it also received from EESC ESCP Europe a £1.0m loan to fund parts of the latest Estate developments and a short-term cash advance of £1.5m to address a shortfall due to cyclical activities.The Charity generated a consolidated loss of £0.4m (2023: £2.8m surplus) at the end of the year. At year-end, the Charity closes the year with consolidated positive funds at £0.2m (2023: £0.5m). More information is provided in the going concern statement.

Public benefit statement

The Trustees have considered the guidance on public benefit published by the Charity Commission. The Trustees believe that increasing the skills, knowledge and understanding of good business management practices provides public benefit since the subject itself is of educational merit, and its dissemination through the student body will then enhance society as a whole.

The Trustees have considered ensuring that ongoing public benefit is a part of the work of the Charity and recognise that scholarship awards are essential in helping to ensure that students who would otherwise not be able to afford the fees can access the education offered by the Charity. Student applications for scholarship awards are available to all those who meet the general entry requirements of the School and are made based on means. Scholarships are available on the school’s website. The great majority of scholarships are offered to students at Group level. Those in the Charity’s financial statements as a scholarship expenditure are for

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those scholarships granted by the London entity (2024: £166k / 2023: £131k). The London Campus offers a number of access opportunity scholarships as well as various financial discounts, payment plans and other commercial incentives, allowing students to access higher education at a lower cost and to spread the payment of their tuition fees in exceptional circumstances.

This year, ESCP London Campus also became part of The UAE Government Scholarship list for UAE nationals and The British Columbia (Canada) Government Scholarship list.

In 2024, the donation from the EESC ESCP Europe to the Charity was limited to providing rentfree facilities, allowing the Charity to provide education at a lower cost than would otherwise be possible. This has been shown as a donation and detailed in note 3.

The Charity welcomes students from all backgrounds. Entrance interviews are undertaken to ensure that students can cope with the pace of learning and benefit from the education provided. An individual’s gender, ethnicity, race, religion or disability are not part of the recruitment process. The Charity acts as an equal opportunity organisation and is committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. London Campus students regularly engage with local charities and businesses to support various causes (environmentally-friendly sustainability actions, provision of clothing and food to local homeless shelters), seeking to increase the impact of the Charity on its neighbouring community.

The Charity will make reasonable adjustments to meet the needs of staff or students who are or become disabled. The Charity is committed to safeguarding and promoting the welfare of its students and expects all staff to share this commitment.

Public Events

In 2024, ESCP London Campus organised and participated in a range of high-calibre events open to the School’s students, alumni community and external guests. These included:

• The Annual London Campus Student Gala;

• 100+ events organised online and in person by both the School and its student societies, including but not limited to Finance Banking Trek, Alumnights, London Universities Sports Leagues (LUSL), Crypto Society Event, book clubs, dance, and chess tournaments; and religious and cultural celebrations;

• Alumni webinars and events, including the Alumni Summer Soiree and DAP celebration at the Parliament:

• Several events during the Intercampus Entrepreneurship Festival (November), which gathered more than 200 participants, students, professionals and alumni, and the summer Jean-Baptiste Say Entrepreneurship Festival;

• Various student challenges and competitions, including the L’Oréal Big Picture Project, #GetActive BUCS British Universities and College Sports, and more;

• C-Suite Series: The European Way, an invited talk with CEOs on the nature of European management practices;

• The Social Impact Festival, exploring the intertwined and complex relationships of social and environmental sustainability to harness the power of interdisciplinary and co-creative collaborations needed for transformational change and impact;

• TEDxESCPLondon Student Speaker Contest

• Energy Management Centre Invited Talks series;

• London Campus Student Awards 2024;

• Student Societies Fair;

• The 8th Alumni & Friends Summer Soirée;

• The Class of 2023 MSc Graduation Ceremony, held for the first time in London for all three London MSc programmes;

• Campus-based Careers Fair; and

• Themed welcome events and parties organised by both the School and student societies to enable students to connect both within and across programmes.

• At the beginning of the 2023/24 academic year, the School also hosted the Inside Out Project team, taking over 300 portraits of students, staff and faculty over two fun days. This large-scale community event resulted in 135+ portraits on walls around the campus.

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Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Blue Factory Start-Up Incubator

In 2024, the London Campus launched its local Blue Factory team and has made significant strides in enhancing its resources, relationships, and opportunities for student entrepreneurs.

Key achievements include the development of comprehensive marketing resources, such as pitch decks, startup guides, and an ecosystem map of London, providing valuable tools for Federal Blue Factory teams. Additionally, we launched the Blue Factory Podcast Studio, managed by the Student Society, to connect students with entrepreneurial thought leaders, fostering learning and networking. Our focus on brand awareness has led to collaborations with key stakeholders like London & Partners and local councils, strengthening our presence in London’s entrepreneurial ecosystem.

On campus, we have established a strong relationship with Programme Directors and introduced initiatives such as the Innovation Challenge with Camden Council, where students tackled real-world problems. To further enhance student engagement, we created the Blue Factory Student Society with 40 active members. The society plays a crucial role in connecting students with alumni, VCs, and universities while supporting the Blue Factory’s broader goals. We’ve also brought on alumni mentors and entrepreneurial advisors through a joint initiative with the Careers team, ensuring meaningful connections and expert guidance for students.

On the commercial front, the Blue Factory piloted service offerings like pitch deck creation, business planning, and financial modelling while also developing schemes such as the Seed Programme and Innovation Funding Programme.

Cooperation with external organisations

In 2024, ESCP London Campus continued to partner with a number of recognised bodies, including:

• City St George’s University of London;

• Cranfield University;

• Frankfurt School of Finance and Management;

• The Industry and Parliament Trust;

• The Chartered Association of Business Schools;

• The French Chamber of Commerce in Great Britain; and

• The Franco-British Council.

Related Parties

Related parties include ESCP Europe Corporate Services Limited (the “Trading”), the EESC ESCP Europe, and the other ESCP campuses.

In 2024, the Charity paid c. £1.2m in costs pertaining to the Federal centre (Executive VicePresident, Corporate Relations & Executive Education, Profit-Sharing) (2023: £0.7m). These costs are integrated into the company’s statement of comprehensive income and are not recharged to the EESC ESCP Europe.

The statement of comprehensive income showing the local performance is presented on page 42.

In addition to the related parties mentioned above, there are two further related parties.

ESCP Europe Foundation

The ESCP Europe Foundation was created by ESCP Alumni in 2005 and is a Frenchregistered charity. The Foundation supports the School in sustaining its academic excellence and leadership, particularly in key strategic areas such as promoting social diversity and entrepreneurship, developing projects aiming at increasing competitiveness and innovation in France and abroad and implementing innovative teaching methods.

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To achieve its ambitions and financial targets, the Foundation seeks to raise contributions from corporate sources and Alumni via several fundraising campaigns. In 2024, the Foundation raised over £249k (2023: £230k ) through the Charity on behalf of other campuses. All sums not specifically attributed to the London Campus were paid back to the Foundation in late December 2024. These sums are not recognised in the finance statements as the Charity acts as an agent.

The ESCP Europe Alumni Association

The ESCP Europe Alumni Association is a separate legal entity from the London Campus itself. It is independent of the Charity and therefore is not consolidated into these financial statements. From a global population of c. 60,000 alumni in 200+ countries, there are some 2,600+ alumni in the UK. The London Campus engages with them regularly through receptions, conferences, invitations to talk to students and support them in finding internships and company projects.

Performance of the Charity

The quality of the School’s higher education is recognised annually in the Financial Times Business Education Rankings, with a strong performance in all programme categories and an overall placement of 5th in the 2024 European Business School league table.

Capitalising on the improved rankings of the School in Europe during the year, the Charity consolidated its growth in terms of academic and financial performance, with London Campus remaining one of the favoured destination campuses of ESCP students.

The European Bachelor in Management was taught on Campus from the beginning of the new academic year with a new record number of students hitting our grounds, on a full-time basis, from early September 2024 with 502 students (2023: 389 students), all being taught to face-toface, with combined revenues of £4.2m.

Executive Masters and Bespoke Executive Education, following the repositioning of the portfolio of Executive Masters and new contracts from returning clients, brought their combined annual income to £2.4m (2023: £1.6m).

The Charity’s Trading subsidiary, ESCP Europe Corporate Services Limited, produced an operating surplus for the year of £0.4m (2023: £0.3m) before a gift-aided donation of the same amount to the Charity at year end. The success of our 2024 collaborations will also positively impact 2025 with contract renewals.

Having considered the consolidated financial loss derived by the Charity of £0.4m (2023: £2.8m surplus) and the positive equity of £0.2m (2023: £0.5m) at the end of the year, the Trustees will rely on the letter of financial support from the EESC ESCP Europe to conclude that the Charity is a going concern for the period of 12 to 18 months after the date of signing of the financial statements.

The Trustees remain satisfied with the results of the Charity in 2024 in that context and upon consideration of the levels of free cash flows over the next 12 to 18 months as well as the ongoing possibility for the Charity to access financing from the Federal Centre to meet its liabilities should the need arise.

13

Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Development objectives

In line with its strategic priorities described above, the Charity will continue developing and executing its academic and business plans. Significant development objectives for 2025 will include:

• The development of a long-term Campus strategy;

• Further integration within the UK higher education and ecosystem;

• The launch of the London Apprenticeship program;

• The strengthening of executive education and corporate activity pertaining to the Charity (Launch of a new Executive Master) and its trading entity; and

• The modernisation and extension of Campus facilities, alongside significant estate maintenance activities (as commissioned by the EESC).

The Charity continues to aim to:

• strengthen recruitment for its full programme suite;

• build up a first-class Faculty and Affiliate Faculty;

• consolidate the London Campus areas of research expertise;

• encourage new areas of enquiry linked closely to its degree/specialisation offer; and

• • promote and advance teaching excellence in alignment with the learning goals and mission of the School.

Reserves policy

Since the end of 2015, the Charity does not hold any restricted funds in its financial statements. Total unrestricted funds at the end of the current year were £0.2m (2023: £0.5m).

As of 31 December 2024, the level of donation from the EESC remains limited to the provision of the free-rent facility of £565k, consistent with the rateable value of the site.

In 2024, further assurance that the Charity is a going concern was provided to the Board of Trustees which assessed the forecast, the availability of financing and cash flow for the next 18 months. A 5-year plan (2025-2029) providing a longitudinal view of the expected cash flows during the period showed further growth in its results and funds position thanks to the London campus being sought after by students and new specialisations added to the local portfolio.

The Charity intends to create a Reserve policy in 2024.

Key management personnel and remuneration policy

The SMB constitutes the grouping of key management personnel of the London Campus.

This group comprises the Dean of Campus, Directors of Professional Services, and a Senior Faculty Representative. The number of people included within key management in 2024 was 6 (2023: 6).

Within this group, Directors are subject to annual pay review via the Charity’s Reward and Remuneration Committee (RRC). A number of criteria are used for setting or revising compensation, such as, but not limited to, the nature of the role and responsibilities of each individual, average salaries for comparable positions across the sector, and the trend in pay in recent years. Annual performance reviews may result in the award of performancebased bonuses, salary increments, and/or grade modifications. Note 6 provides details of the remuneration components of the UK Dean.

The senior faculty representatives are subject to the faculty performance evaluations applicable to all faculty, with the exception of the Campus Dean. This process is governed locally by the Campus Faculty Advisory Committee (CFAC).

14 Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Financial review and results for the year

On a consolidated basis, the total revenues of the Charity in 2024 increased from £14.5m in 2023 to £17.1m in 2024. This was primarily due to higher numbers of students in the BIM and MIM and improvement from Executive Education activities, which increased by £0.8m, reaching £2.4m in 2024 (2023: £1.6m).

The level of operational donation from the EESC, excluding rent, amounted to £nil, with the provision of rent-free premises from the EESC recognised as a gift in kind of £565k (2023: £550k).

The evolution of the EESC subsidies between 2024 and 2023 is reported in note 3 to the financial statements.

The expenditure for the year totalled £17.4m for 2024 (2023: £11.7m / £15.4m without the pension provision release). The key drivers of this increase are mainly related to larger cohorts of students with a combination of a) a higher academic wage and operative expenses bill, b) increased Federal costs, and c) enhancement of the premises and its facilities to maximise the site capacity.

These activities will continue strengthening the London campus’s position in supporting higher student numbers with excellence.

The net consolidated result for the year is a net loss of £0.4m (2023: £2.8m surplus). ESCP Europe Corporate Services Limited generated a surplus of £0.4m (2023: £0.3m), which was then transferred as a gift-aided donation to the Charity.

Going concern

The Board has carefully assessed whether the Charity is a going concern in reference to its financial position, performance and the availability of financing as outlined in the financial review. Particular note has been taken to ensure the assessment is proportionate to the size and level of financial risk and complexity of the organisation. In addition to analysing the current financial position, the Charity prepared a 5-year plan (2025-2029) highlighting the progressive growth in funds, using realistic headcount and investment assumptions for the period. The Trustees’ position also relies on the existence of a letter of financial support provided by the EESC.

As of 31 December 2024, the Charity has net consolidated current liabilities of £2.6m (2023: £0.9m), a positive balance of cash of £2.3m (2023: £2m) and a level of level of borrowing from EESC ESCP Europe of £1.6m (Estate development related). Long-term liabilities are nil, other than borrowing.

Sources of income for the year ahead will be secured through 1/ a growing flow of students recruited at the Federal level and sent to the London Campus, 2/ a sustained recruitment of students for the local masters, and 3/ an increased activity of the executive education. Further investment in the estate will be funded by EESC ESCP Europe. On that basis, the cash flow forecast for the next 18 months reveals positive cash balances throughout the period.

The statement of the Board’s responsibilities, the description of the organisation’s management, and the review of internal controls summarise the arrangements the Charity has in place for identifying and managing risk.

Taking the above into account, the Trustees have a reasonable expectation that adequate resources exist to continue operations for the foreseeable future and the going concern basis continues to be appropriate for preparing the annual financial statements.

15

Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ Report, including Strategic Report

Independent Auditors

Each of the persons who is a trustee at the date of approval of this report confirm that:

• so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware; and

• the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Approved by the Board of Trustees on 25th March 2025 and signed on behalf of the Board.

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David Gold
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Chairman of the Board of Trustees

30 May 2025

16

Annual Report and Financial Statements for the year ending 31 December 2024

Trustees’ responsibilities statement

The Trustees (who are also directors of ESCP Europe-Business School for the purposes of company law) are responsible for preparing the Trustees’ 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 the expenditure, of the Charity and the group and of their income and expenditure, gains and losses, and changes in reserves for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition);

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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. 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 Trustees are responsible for the maintenance and integrity of 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.

17

Annual Report and Financial Statements for the year ending 31 December 2024

Independent auditors’ report to the members of ESCP Europe-Business School (the “School’’)

Report on the audit of the financial statements

Opinion

In our opinion, ESCP Europe-Business School’s group financial statements and School financial

statements (the “financial statements”):

• give a true and fair view of the state of the group’s and of the School’s affairs as at 31 December 2024 and of the group’s and of the School’s income and expenditure, gains and losses and changes in reserves, and of the group’s cash flows for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 1o2 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law);

• have been properly prepared in accordance with the requirements of the Office for Students’ Accounts Direction (OfS 2019.41); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise the Consolidated and School Statement of Financial Position as at 31 December 2024; the Consolidated and School Statement of Comprehensive Income, the Consolidated and School Statement of Changes in Reserves, and the Consolidated Statement of Cash Flows for the year then ended; the Statement of Principal Accounting Policies; and the notes to 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 ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the School’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group’s and School’s ability to continue as a going concern.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

18 Annual Report and Financial Statements for the year ending 31 December 2024

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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Trustees’ Report and the Strategic Report included within it, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also to report certain opinions and matters as described below.

Trustees’ Report and Strategic Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and the Trustees’ Report for the year ended 31 December 2024 is consistent with the financial statements and have been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the group and School and their environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic Report and the Trustees’ Report.

Responsibilities for the financial statements and the audit

Responsibilities of the Trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the School for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the School’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 intends to liquidate the group or the School or to cease operations, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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

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

Based on our understanding of the group and its industry, we identified that the principal risks of noncompliance with laws and regulations related to the initial and ongoing conditions of registration of the Office for Students, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and the Office for Students’ Accounts Direction (OfS 2019.41). We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting of inappropriate journals to increase revenue. Audit procedures performed by the engagement team included:

19

Annual Report and Financial Statements for the year ending 31 December 2024

• Discussions with management, including consideration of any known or suspected instances of non-compliance with laws and regulations and fraud;

• Identification and testing journal entries meeting certain risk criteria, in particular any journal entries posted with unusual account combinations;

• Challenging assumptions and judgements made by management in significant accounting estimates;

• Design of audit procedures to incorporate unpredictability into our testing; and

• • Review of financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

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

Use of this report

This report, including the opinions, has been prepared for and only for the School’s members as a body in accordance with ,Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Opinions on other matters prescribed in the Office for Students’ Accounts Direction (OfS 2019.41)

In our opinion, in all material respects:

• funds from whatever source administered by the School for specific purposes have been properly applied to those purposes and, if relevant, managed in accordance with relevant legislation;

Under the Office for Students’ Accounts Direction, we are required to report to you, if we have anything to report in respect of the following matter:

• The School’s grant and fee income, as disclosed in note 5 to the financial statements, has been materially misstated.We have no matters to report arising from this responsibility.

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the School, or returns adequate for our audit have not been received from branches not visited by us; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• • the School financial statements are not in agreement with the accounting records and returns.

• We have no exceptions to report arising from this responsibility.

David Hagger (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

30 May 2025

20 Annual Report and Financial Statements for the year ending 31 December 2024

Consolidated and School Statement of Comprehensive Income

For the year ended 31 December 2024

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2024 2023
Notes Consolidated School Consolidated School
£ £ £ £
Income
Tuition fees and education contracts 1 14,741,490 14,741,490 12,621,518 12,621,518
Research grants and contracts 2 35,121 35,121 52,714 52,714
Other income 3 2,251,907 1,931,942 1,744,224 1,615,915
Investment income 4 46,253 45,503 120,767 120,188
Total income 17,074,771 16,754,056 14,539,223 14,410,336
Expenditure
Staff costs 6 8,392,917 8,392,917 7,376,996 7,376,996
Movement on USS provision 6 - - (3,777,959) (3,777,959)
Other operating expenses 8 8,352,053 8,041,331 6,856,165 6,730,491
Release of EESC pension debtor for the year - - 793,361 793,361
Depreciation and amortisation 9 538,135 538,135 308,894 308,894
Interest and other finance costs 7 158,082 148,089 159,979 156,766
Total expenditure 17,441,187 17,120,472 11,717,436 11,588,548
(Deficit)/Surplus before tax (366,416) (366,416) 2,821,788 2,821,788
Taxation 9 - - - -
(Deficit)/Surplus for the year (366,416) (366,416) 2,821,788 2,821,788
Total comprehensive income for the year (366,416) (366,416) 2,821,788 2,821,788
Represented by:Unrestricted comprehensive income for the year (366,416) (366,416) 2,821,788 2,821,788
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All items of income and expenditure relate to continuing activities. The accompanying notes and policies on pages 25 to 42 form part of these financial statements.

21

Annual Report and Financial Statements for the year ending 31 December 2024

Consolidated and School Statement of Changes in Reserves

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Consolidated Income and expenditure reserve
General fund Pension funding Total
£ £ £
Balance at 1 January 2023 412,614 (2,705,598) (2,292,984)
Surplus for the year 116,190 2,705,598 2,821,788
Total comprehensive income for the year 116,190 2,705,598 2,821,788
Balance at 31 December 2023/ 1 January 2024 528,804 - 528,804
Deficit for the year (366,416) - (366,416)
Total comprehensive expense for the year (366,416) - (366,416)
Balance at 31 December 2024 162,388 - 162,388
School Income and expenditure reserve Total
General fund Pension funding
£ £ £
Balance at 1 January 2023 412,613 (2,705,598) (2,292,985)
Surplus for the year 116,190 2,705,598 2,821,788
Total comprehensive income for the year 116,190 2,705,598 2,821,788
Balance at 31 December 2023 / 1 January 2024 528,803 - 528,803
Deficit for the year (366,416) - 366.416
Total comprehensive income for the year (366,416) - (366,416)
Balance at 31 December 2024 162,387 - 162,387
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22 Annual Report and Financial Statements for the year ending 31 December 2024

Consolidated and School Statement of Financial Position

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As at 31 December 2024 As at 31 December 2023
Notes Consolidated School Consolidated School
£ £ £ £
Fixed assets
Tangible assets 9 4,338,680 4,338,680 2,415,488 2,415,488
Investment in subsidiaries 10 - 1 - 1
4,338,680 4,338,681 2,415,488 2,415,489
Current assets
Trade and other receivables 11 2,282,252 2,470,134 2,402,124 2,573,197
Cash and cash equivalents 15 2,320,341 1,645,779 2,355,471 2,038,802
4,602,593 4,115,915 4,757,595 4,611,999
Less: Creditors;
Amounts falling due within one year 12 (7,203,885) (6,717,207) (5,644,281) (5,498,687)
Net current liabilities (2,601,292) (2,601,294) (886,686) (886,688)
Total assets less current liabilities 1,737,388 1,737,387 1,528,802 1,528,801
Creditors: amounts falling due after more than one year 13 (1,575,000) (1,575,000) (999,998) (999,998)
Total net assets 162,388 162,387 528,804 528,803
Unrestricted Reserves
Income and expenditure reserve - unrestricted 162,388 162,387 528,804 528,803
Total Reserves 162,388 162,387 528,804 528,803
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The financial statements of ESCP Europe Business School, registered number 1876779, on pages 20 to 44, were approved and authorised for issue by the Directors on 25th of March 2025.

Signed on behalf of the Board of Directors

Trustee/Director

David Gold

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Trustee/Director
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Leon Laulusa

30 May 2025

30 May 2025

23

Annual Report and Financial Statements for the year ending 31 December 2024

Consolidated Statement of Cash Flows For the year ended 31 December 2024

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Notes 2024 2023
£ £
Cash flow from operating activities
(Deficit)/Surplus for the year before tax (366,416) 2,821,788
Adjustment for non-cash items
Depreciation 9 538,135 308,894
Decrease in debtors 11 141,872 121,438
Increase/(decrease) in creditors 12 1,332,923 (75,356)
Increase/(decrease) in pension provision - (3,650,554)
Adjustment for investing or financing activities
Investment income 4 (46,253) (120,767)
Interest payable 7 64,907 11,584
Cash flows from operating activities 1,665,168 (582,974)
Taxation - -
Net cash inflow / (outflow) from operating activities 1,665,168 (582,974)
Cash flows from investing activities
Investment income 4 46,253 120,767
Payments made to acquire tangible assets 9 (2,391,693) (1,835,781)
(2,345,440) (1,715,013)
Cash flows from financing activities
Interest paid 7 (64,907) (11,584)
Receipts from loan facility 950,000 1,200,000
Repayments of loan facility (239,950) (78,585)
645,143 1,109,832
Decrease in cash and cash equivalents in the year (35,129) (1,188,154)
Cash and cash equivalents at beginning of the year 15 2,355,470 3,543,625
Cash and cash equivalents at end of the year 15 2,320,341 2,355,470
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24 Annual Report and Financial Statements for the year ending 31 December 2024

Statement of Principal Accounting Policies

ESCP Europe Business School is a private company limited by guarantee. It was incorporated on 11 January 1985 and registered with the Charity Commission in England and Wales under Charity number 293027. The registered address of the School is listed on page 3.

Basis of preparation

With effect from 1 January 2024, the Consolidated and School financial statements have been prepared in accordance with the United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education (2019 edition). This change follows the grant of Degree Awarding Powers by the Office for Students (OfS) in May 2024, positioning ESCP Europe Business School alongside other UK higher education institutions. The transition enhances the relevance, understandability, and comparability of financial statements by aligning with sector standards and OfS reporting requirements. There has been no change to total income, total expenditure and the surplus reported for the year ended 31 December 2023 and no change to net assets as at 31 December 2023 and 31 December 2022, as result of this change. They have also been prepared in accordance with the current Accounts Direction issued by the Office for Students (OfS), the Terms and Conditions of Funding for Higher Education Institutions issued by the Office for Students (OfS 2019.41), and and the Companies Act 2006.

The Charity is a public benefit entity as defined by FRS102.

The functional currency of the charity is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates. The presentation currency is pounds sterling.

ESCP Europe Business School meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements, which are presented alongside the consolidated financial statements. In particular, no School Statement of Cash Flows is presented.

Basis of Consolidation

The group financial statements consolidate the financial statements of the Charity and its subsidiary undertaking, ESCP Europe Corporate Services Limited drawn up to 31 December every year. Where necessary, adjustments are made to the subsidiary’s financial statements to bring the accounting policies used in line with those used by the Group. All intra-group transactions, balances, income, and expenses are eliminated during consolidation.

These financial statements include the results of the subsidiary ESCP Europe Corporate Services Limited. The results of this subsidiary are consolidated on a line-by-line basis.

Going Concern

After making enquiries, the Trustees have a reasonable expectation that the Charity has access to adequate resources to continue its activity for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements for the period of 12 to 18 months after the date of signing of the financial statements. The Trustees’ position is relies on the existence of a letter of financial support provided by the the EESC ESCP Europe at the time of the sign-off of the statutory financial statements. More information on the going concern assumption is given on page 15 in the Trustees’ report.

25

Annual Report and Financial Statements for the year ending 31 December 2024

Statement of Principal Accounting Policies

New accounting standards issued not yet effective

In March 2024, the Financial Reporting Council (FRC) issued amendments to FRS 102 (the Financial Reporting Standard applicable in the UK and Republic of Ireland). These amendments will be effective for accounting periods beginning on or after 1 January 2026. The amendments amongst other things, particularly in relation to revenue recognition and lease accounting.

Further guidance is expected to be released in early 2025, and a new Statement of Recommended Practice for Further & Higher Education (FEHE SORP) will be published in August 2025.

The School will assess the impact of these amendments in the upcoming months and intends to apply them for the financial year commencing 1 January 2026.

Income Recognition

Donations

In 2024, the EESC donation was limited to providing rent-free facilities to the Charity, where the trustees use the rateable value determined by the Valuation Office Agency. In 2024, this was estimated at £565k (2023: £550k) and recorded as a donation in the statement of comprehensive income (Note 3), with a matching expenditure recorded within other operating expenses.

Tuition fees and education contracts income

Fees receivable and charges for services are accounted for in the period in which the service is provided. Income is deferred when it is received in advance for services to be provided in following periods.

Other income

Other income regroups the income pertaining to our trading entity (2024: £1.2m), rent-free donation and incomes.

Expenditure

Expenditure is accounted for on an accrual basis. Other expenses encompass costs not directly attributable to particular functional activity categories and are apportioned over the relevant categories based on management estimates of the amount attributable to that activity in the year, either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Foreign currency translation

Foreign currency exchange conversion is made at the rate ruling at the time of the transaction, or for balance sheet items at the average rate of the previous month using HMRC’s website.

Employment benefits

Short-term employment benefits such as salaries and compensated absences are recognised as expenses in the year in which the employees render service to the School.

Any unused benefits are accrued and measured as the additional amount The School expects to pay as a result of the unused entitlement.

26 Annual Report and Financial Statements for the year ending 31 December 2024

Statement of Principal Accounting Policies

Pension scheme

The Charity participates in the Universities Superannuation Scheme. The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The Charity is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the Charity, therefore, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme.

The latest actuarial valuation was carried out as at March 2023 and was completed in December 2023 for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. It did not include deficit recovery contributions from 1 January 2024. The next triennial valuation would start 31 March 2026 with results announced in 2027.At 31 December 2024 the Charity had 123 active institutional members participating in the scheme (2023: 100). The contribution rate payable by the institution was 14.5%.

Tangible fixed assets

The freehold of the premises occupied by the Charity is owned by the EESC-ESCP Europe.

Tangible fixed assets are stated at cost less depreciation. The rates of depreciation of capital assets are as follows:

Building Improvements

Leasehold improvements	▶	straight line over ten years for fxtures and fttings
Freehold improvements	▶	straight-line over twenty-fve years or remaining
		life of the lease, whichever is shorter, for structural
		upgrade (roofs, facades)
IT equipment	▶	straight-line over three years
Offce furniture and equipment	▶	straight-line over fve years for general

The Charity performs impairment reviews of its assets annually. An impairment loss is recognised when the recoverable amount of an asset, which is the higher of the asset’s fair value less costs to sell and its value in use, is less than its carrying amount.

Operating leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis. See note 17.

27

Annual Report and Financial Statements for the year ending 31 December 2024

Statement of Principal Accounting Policies

Tax

As a registered charity, the Charity is exempt from corporation tax under the Corporation Tax Act 2010 or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes. No corporation tax charge has arisen in the Charity’s subsidiary due to its ability to off-set its liability against previous year losses (2023: £nil).

Financial assets

Basic financial assets include trade and other receivables, as well as cash and cash equivalents. These assets are initially recognised at transaction price. Trade and other receivables are subsequently carried at amortised cost using the effective interest rate method, which is the transaction price less for any amounts settled and any impairment losses.

These assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of comprehensive income.

Financial liabilities

Basic financial liabilities include trade and other payables and intra-group loans. These liabilities 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 payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

Financial liabilities are de-recognised when the liability is discharged, cancelled, or expires.

Accounting judgement

In the application of the Group’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods of the revision affect both current and future periods.

Income recognition

The Trustees acknowledge that the Charity derives the great majority of its income from student fees for courses and from the donation from the EESC ESCP Europe. In doing so, the main judgement surrounding income recognition relates to the cut-off date, specifically for students whose programmes span across two calendar years. In making this judgement, management uses the student course timetable to allocate revenues to the appropriate accounting period.

28 Annual Report and Financial Statements for the year ending 31 December 2024

Statement of Principal Accounting Policies

Valuation of donated rent-free facilities

With regards to the valuation of the donated gift in kind pertaining to the rent of the site, the Trustees use reference to the rateable value of the site as defined by the Valuation Office Agency as the best estimate of what they would be willing to pay for the use of the site.

USS retirement benefit obligation

The USS scheme is a multi-employer scheme. There is insufficient information to allow the Charity to identify the share of assets and liabilities of the scheme, and so it is accounted for as a defined contribution scheme. The new schedule of contributions, based on the 31 March 2023 valuation, which commenced on 21 December 2023, includes no deficit recovery contributions from 1 January 2024. As there is no requirement to pay deficit funding, there is no longer an estimate.

Accounting estimates

Year-end Federal profit-sharing estimate

For the first time in 2022, the Charity paid Group profit-sharing bonuses to all staff in permanent employment for more than 3 months at the end of 2021. The principles of this payment are determined at the Federal level including the parameters of the bonus calculation.

As part of the 2024 closing, the Federal team instructed the Charity to process a 2024-related profit-sharing accrual for each permanent employee at the end of 2024 with more than 3 months of employment with the Charity. The value of the 2024 accrual at year-end amounted to £0.7m (2023: £0.4m).

29

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

1. Tuition fees and education contracts

	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Masters’ qualifcations	9,334,210	9,334,210	8,341,354	8,341,354
Bachelor in Management	4,207,572	4,207,572	3,377,447	3,377,447
Executive education (part-time)	1,199,708	1,199,708	902,717	902,717
	14,741,490	14,741,490	12,621,518	12,621,518
2. Research grants and	contracts
	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Research grants and contracts	35,121	35,121	52,714	52,714
	35,121	35,121	52,714	52,714
3. Other income
	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Executive education (custom)	1,168,472	-	650,479	-
Seminars and conferences	70,604	-	50,673	-
Recharges to other ESCP campuses	342,257	248,643	280,059	146,147
Recharges to Trading	-	613,895	-	417,013
Rent-free donation	565,000	565,000	550,000	550,000
Gift aid donation	-	401,656	-	289,742
Other income	105,574	102,748	213,013	213,013
	2,251,907	1,931,942	1,744,224	1,615,915

30 Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

4. Investment income

	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Other investment income	46,253	45,503	120,767	120,188
	46,253	45,503	120,767	120,188
5. Grant and Fee income
	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Fee income from non-qualifying courses	1,239,076	-	701,153	-
Fee income for taught awards	14,741,490	14,741,490	12,621,518	12,621,518
	15,980,566	14,741,490	13,322,671	12,621,518
6. Staff costs
	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Staff Costs :
Salaries	6,875,035	6,875,035	5,808,592	5,808,592
Social security costs	814,729	814,729	722,873	722,873
Other pension costs	703,153	703,153	845,530	845,530
	8,392,917	8,392,917	7,376,996	7,376,996
Movement on USS provision	-	-	(3,777,959)	(3,777,959)
Total	8,392,917	8,392,917	3,599,037	3,599,037
	2024		2023
Total remuneration of the Dean		£		£
Basic salary		107,833		100,739
Additional duties		46,807		26,047
Performance-related pay and other bonuses		29,391		22,006
Pension contributions		15,716		21,472
		199,747		170,264

Salaries are stated gross before deductions of pension contributions made under the Charity’s pension plan. The mentioned performance bonus was awarded in 2024 but is related to 2023. Similarly, the bonus awarded in 2023 was relating to 2022.

31

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

The UK Dean’s complex set of responsibilities calls for a particular combination of qualities, including strategic thinking and leadership, people management, problem-solving and decision-making. These demonstrated competencies and the Dean’s effective market value as an experienced HE leader with both U.K. and European experience are factors in determining the UK Dean’s ongoing remuneration.

The UK Dean’s performance objectives for the year are set by the Executive President of the ESCP Group on the advice of the remuneration committee of the Charity at the beginning of the calendar year. The Chair of the Board of Trustees and the the Executive President of the ESCP Group undertake an annual performance review of the UK Dean against the objectives, the results of which are reported to the Remuneration Committee. The Committee uses this information to assess progress against agreed outcomes at the end of the year.

The Dean’s basic salary is 2.25 times (2023: 2.09 times) the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the provider to its staff.

The Dean’s total remuneration, including the taxable and non-taxable benefits noted above, is 4.14 times (2023: 3.53 times) the median total pay of staff. This has been calculated including the midpoint of the non-taxable benefits noted above and the median total remuneration is calculated on a full-time equivalent basis for the total remuneration paid to its staff.

Senior staff pay

Senior staff pay includes the full-time equivalent basic salary of all staff earning in excess of £100,000 including the UK Dean’s salary. It does not include compensation for teaching additional loads, pensions or staff who were employed for part of the year but would have received salary in these bands in a full year.

----- Start of picture text -----
2024 2023
----- End of picture text -----

	2024		2023
	Consolidated	School	Consolidated	School
Basic salary per annum	No.	No.	No.	No.
£100,000 - £104,999	1	1	1	1
£105,000 - £109,999	1	1	0	0
£110,000 - £114,999	-	-	1	1
£115,000 - £119,999	1	1	0	0
£155,000 - £159,999	-	-	0	0
£160,000 – £164,999	0	0	1	1
£170,000 – £174,999	1	1	0	0
	4	4	3	3

32 Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

Average staff numbers (full time equivalent) by major category :	2024	2023
	No.	No.
Academic	44	43
Administration	67	60
Total number of staff	111	103

Key management pay

Key management personnel are members of the Senior Management Team who have the authority and responsibility for planning, directing and controlling the activities of the School. Staff costs includes compensation paid to key management personnel

	2024	2023
	£	£
Key management personnel total remuneration	1,043,261	918,726
	2024	2023
	No.	No.
Key management personnel numbers (full-time equivalent)	6	6

The Trustees did not receive any remuneration nor expenses during the year (2023: £nil).

7. Interest and other finance costs

----- Start of picture text -----
2024 2023
Consolidated School Consolidated School
£ £ £ £
Loan interest 64,907 64,907 11,584 11,584
Exchange differences 93,175 83,182 20,991 17,778
Unwind of discount on USS pension provision - - 127,404 127,404
158,082 148,089 159,979 156,766
----- End of picture text -----

33

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

8. Analysis of other operating expenses by activity

	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Academic and related expenditure	2,730,776	2,477,170	1,923,317	1,846,508
Bought in teaching	808,948	797,327	774,949	770,384
Premises (including catering)	2,564,069	2,532,300	1,817,859	1,968,691
Marketing	1,189,822	1,185,637	1,035,690	1,030,188
Technology	343,179	343,179	374,504	374,504
Other expenses	715,259	705,718	929,847	740,217
	8,352,053	8,041,331	6,856,165	6,730,491

	2024		2023
	Consolidated	School	Consolidated	School
Other operating expenses include:	£	£	£	£
Operating lease rentals
Land and buildings	166,706	166,706	166,706	166,706
Other	52,266	52,266	38,739	38,739
Fees payable to the auditor for the audit of the School’s fnancial statements	49,540	49,540	45,152	40,904
Audit of the fnancial statements of subsidiaries	4,460	-	4,248	-
Taxation compliance services	3,000	-	2,750	-

34 Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

9. Tangible Assets

Property, plant and equipment

Property, plant and equipment
Consolidated and School Building Improvements £ Cost At 1 January 2024 2,704,977 Additions 2,179,328 Disposals (44,241)	IT equipment Offce furniture and equipment Total £ £ £ 555,494 149,113 3,409,584 300,126 3,208 2,482,662 (28,892) (6,681) (79,814)
At 31 December 2024 4,840,064	826,728 145,640 5,812,432
Accumulated depreciation At 1 January 2024 559,894 Charge for the year 421,256 Disposals (29,512)	345,484 88,718 994,096 99,643 17,236 538,135 (22,283) (6,684) (58,479)
At 31 December 2024 951,638	422,844 99,270 1,473,752
Carrying amount
At 31 December 2024 3,888,426	403,884 46,370 4,338,680
At 31 December 2023 2,145,083	210,010 60,395 2,415,488
10. Investment in subsidiary Investment in trading subsidiary
	2024 2023
	School School £ £
	1 1

The Charity’s Trading subsidiary, ESCP Europe Corporate Services Limited, conducts executive education and funded studies. Its company number is 07468929 and it is incorporated in the United Kingdom. The Company’s objects are:

• to carry on business in executive education, training and conductors and commissioners of research;

• to make donations (whether by way of gift aid or otherwise), and/or to provide other forms of support to the Charity; and

• to promote the interests of the Charity in the global corporate business environment.

35

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

11. Trade and other receivables

		2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Amounts falling due within one year:
Trade receivables	1,268,859	915,576	1,626,605	968,436
Prepayments and accrued income	597,260	595,610	516,757	893,705
Other receivables	154,355	47,973	72,280	46,567
Amounts due from subsidiary undertaking	-	323,896	-	201,154
Donation gift-aided by subsidiary undertaking	-	401,656	-	289,742
Amounts due from group undertakings	261,778	185,423	186,482	173,593
	2,282,252	2,470,134	2,402,124	2,573,196

12. Creditors : amounts falling due within one year

		2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Trade creditors	589,083	484,082	348,609	332,571
Taxation and social security	203,043	203,043	179,840	179,840
Other creditors	188,697	123,260	295,448	277,792
Loan from group undertakings	346,736	346,736	211,024	211,024
Accruals and deferred income	5,333,032	5,016,792	4,480,638	4,368,738
Amounts from group undertakings	543,294	543,294	128,720	128,720
	7,203,885	6,717,207	5,644,279	5,498,685

Amounts owed to and from group undertakings relate to normal trading activities and consist of supplier and client invoices. These balances are unsecured, interest-free, and are settled under normal commercial terms.

36 Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

13. Creditors : amounts falling due after more than one year

In October 2023, the Charity requested a seven-year Loan Financing Agreement from its parent company to finance the residential wing refit and roof repairs during the summer of 2023. The loan amount was agreed to be £1,200,000, bearing an interest of 4%. At the end of the year, repayments of £171,429 for the principal of the loan and of £46,857 for the 2024 related interests were made, bringing the balance of the loan to £1,000,000 at year-end.

In June 2024, the Charity embarked on further development by converting the former library into a classroom and reconfiguring an existing classroom. A seven-year Loan Financing Agreement was agreed with its parent company to assist with financing. The loan amount was agreed to be £950,000, bearing an interest of 3.8%. At the end of the year, repayments of £67,857 for the principal of the loan and of £18,050 for the 2024 related interests were made, bringing the balance of the loan to £882,143 at year-end.

----- Start of picture text -----
2024 2023
----- End of picture text -----

	Consolidated	School	Consolidated	School
	£	£	£	£
Loan from group undertakings	1,575,000	1,575,000	999,998	999,998
	1,575,000	1,575,000	999,998	999,998

14. Loans

14. Loans
	2024		2023
	Consolidated	School	Consolidated	School
	£	£	£	£
Analysis of unsecured loans from group undertakings:
Due within one year or on demand	346,736	346,736	211,024	211,024
Due between one and two years	307,143	307,143	171,429	171,429
Due between two and fve years	921,429	921,429	514,285	514,285
Due in fve years or more	346,428	346,428	314,284	314,284
Due after more than one year	1,575,000	1,575,000	999,998	999,998
Total loans	1,921,736	1,921,736	1,211,022	1,211,022

37

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

15. Consolidated reconciliation of net debt

----- Start of picture text -----
2024
£
Net debt 1 January 2024 1,144,448
Movement in cash and cash equivalents (35,129)
Movement on loan (710,714)
Net debt 31 December 2024 398,605
Change in net debt (745,843)
Analysis of net debt: 2024 2023
£ £
Cash and cash equivalents 2,320,341 2,355,470
Borrowings: amounts falling due within one year
Unsecured loans (346,736) (211,024)
(346,736) (211,024)
Borrowings: amounts falling due after more than one year
Unsecured loans (1,575,000) (999,998)
(1,575,000) (999,998)
Net debt 398,605 1,144,448
----- End of picture text -----

16. Capital and other commitments

The consolidated of ESCP Europe Business School group and the of ESCP Europe Business School had no capital commitments as of 31 December 2024 (2023: nil).

17. Contingent liabilities

The School has no contingent liabilities as of 31 December 2024 (2023: nil).

18. Lease obligations

18. Lease obligations	18. Lease obligations
Total rentals payable under operating leases:
		2024		2023
Consolidated and School	Land and Buildings	Other leases	Total	Total
	£	£	£	£
Payable during the year	166,706	85,891	252,597	205,445
Future minimum lease payments due:
Not later than 1 year	166,706	85,891	252,597	205,445
Later than 1 year and not later than 5 years	201,436	63,038	264,474	376,015
Later than 5 years	-	-	-	-
Total lease payments due	368,142	148,929	517,071	581,460

38

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

19. Pension Schemes

The School participates in the Universities’ Superannuation Scheme (USS). The schemes was defined-benefit schemes contracted out of the State Second Pension (S2P) until 31 March 2016. With effect from 1 October 2016, the USS changed from a defined benefit only scheme to a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of both schemes are held in separate trustee administered funds.

The total cost charged to the income and expenditure account in respect of USS scheme is £703,153 (2023: £845,530).

The latest available complete actuarial valuation of the Retirement Income Builder (defined benefit) component of USS is at 31st March 2023 (the valuation date), which was carried out using the projected unit method.

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £73.1 billion, and the value of the scheme’s technical provisions was £65.7 billion, indicating a surplus of £7.4 billion and a funding ratio of 111%.

• CPI assumption: Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030;

• Pension increases (subject to a floor of 0%): Benefits with no cap: CPI assumption plus 3bps Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps;

• Discount rate (forward rates): Fixed interest gilt yield curve plus Pre-retirement: 2.5% p.a. and Post retirement: 0.09% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on an analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation.

• Mortality base table: 101% of S2PMA “light” for males and 95% of S3PFA for females; and

• • Future improvements to mortality: CMI_2021 with a smoothing parameter of 7.5, an initial addition of 0.4% pa, 10% w2020 and w2021 parameters, and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females.

A change in contributions was applied from 2024 (Employer: 14.5% - Member: 6.1%) with enhanced benefits.

20. Membership liability

In accordance with Clause (7) of the Charity’s Memorandum of Association, every member of the Charity undertakes to contribute to the assets of the Charity in the event of the same being wound up while he, she or it remains a member or within 12 months afterwards, to pay one pound towards the costs of dissolution and the liabilities incurred by the Charity while he, she or it was a member.

The sole member of the Charity is the EESC ESCP Europe on 31 December 2024.

39

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

21. Related party transactions

School EESC ESCP EUROPE	Income from related party £ 9,932,215	2024 Expenditure to related party £ (862,804)	Balance £ 507,549	due to /(from) related party £ (171,124)	Income from related party £ 9,234,828	2023 Expenditure to related party £ (1,344,924)	Balance due to /(from) related party £ £ 138,915 (485,053)	Balance due to /(from) related party £ £ 138,915 (485,053)
EESC Pension Debtor	-	-	-	-	-	(793,361)	-	-
EESC Loan	-	(64,907)	1,921,736	-	-	(11,584)	-	(1,211,022)
ESCP EUROPE Madrid	157,996	(48,478)	32,725	(1,192)	154,856	-	24,508	-
ESCP EUROPE Berlin	5,362	(21,745)	1,257	-	20,261	(26,926)	3,087	(26,926)
ESCP EUROPE Torino	15,788	(9,249)	700	(13,107)	4,343	(33,357)	7,083	(26,972)
ESCP EUROPE Foundation	364	-	1,063	-	152,082	(1,685)	-	-
ESCP EUROPE Corporate Services Limited	613,895	-	-	(323,896)	417,013	-	-	(201,154 )
ESCP EUROPE Corporate Services Limited - Donation	401,656	-	-	(401,656)	289,742	-	-	(289,742 )
	11,129,276	(1,007,183)	2,465,030	(910,975)	10,273,125	(2,211,837)	173,593	(2,240,869)
		2024				2023
Group	Income from related party	Expenditure to related party	Balance due to / (from) related party		Income from related party	Expenditure to related party	Balance due to /(from) related party
	£	£	£	£	£	£	£	£
EESC ESCP EUROPE	10,008,570	(862,804)	507,549	(247,479)	9,332,008	(1,344,924)	151,804	(74,822)
EESC Pension Debtor	-	-	-	-	-	(793,361)	-	-
EESC Loan	-	(64,907)	1,921,736	-	-	(11,584)	-	(1,211,022)
ESCP EUROPE Madrid	157,996	(102,215)	32,725	(1,192)	154,856	(80,732)	107,470	(26,972)
ESCP EUROPE Berlin	5,362	(21,745)	1,257	-	20,261	(26,926)	3,087	(26,926)
ESCP EUROPE Torino	31,767	(9,249)	700	(13,107)	32,306	(1,685)	7,083	-
ESCP EUROPE Foundation	364	-	1,063	-	152,082	-	-	-
	10,204,059	(1,060,920)	2,465,030	(261,778)	9,691,513	(2,259,212)	269,444	(1,339,742)

EESC ESCP EUROPE, ESCP EUROPE Madrid, ESCP EUROPE Berlin, ESCP EUROPE Corporate Services Limited and ESCP EUROPE Torino are related by virtue of being part of the same group, headed by EESC ESCP Europe. ESCP EUROPE Foundation is related by virtue of common directors/Trustees.

EESC ESCP Europe is the sole member of each ESCP Europe campus.

40 Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

Donations and fees* were received from EESC ESCP Europe during the year as follows:

	2024	2023
	£	£
Provision of rent-free premises	565,000	550,000
Undergraduate programme fee income	4,207,572	3,377,447
Postgraduate programmes – Full-time Masters fee income	5,351,197	4,661,412
Executive education (part-time)	157,158	244,165

• This does not include recharges of costs or teaching.

22. Ultimate parent undertaking

The parent undertaking of the smallest group which includes the Company, and for which group financial statements are prepared, is EESC ESCP Europe, which is also the immediate parent undertaking of the Charity. The registered address of the EESC ESCP Europe is 3 rue Armand Moisant, Paris 75015, France.

The parent undertaking of the largest group which includes the Company and for which group financial statements are prepared is CCIR, which is also the ultimate controlling entity of the Charity. The registered address of the CCIR is 27 Avenue De Friedland, Paris, France, 75008.

41

Annual Report and Financial Statements for the year ending 31 December 2024

Notes to the Financial Statements

23. Alternative performance measures

The Charity presents below the results on a statutory and adjusted basis as it believes it will provide useful supplemental information about the local financial performance of the Charity, and enable comparison of financial results between periods where certain items may vary independent of business performance. Although the board believes the adjusted basis is important in evaluating the Group, it is not intended to be considered in isolation or as a substitute for, or as superior to, financial information on a statutory basis.

Items are adjusted on the basis that they distort the underlying performance of the Charity where they relate to costs pertaining to the Federal centre (defined as costs incurred locally for the benefit of all campuses).

Consolidated and school statement of comprehensive income (including consolidated income and expenditure account).

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2024
Consolidated Federal Local Performance
£ £ £
Income
Tuition fees and education contracts 14,741,490 - 14,741,490
Research grants and contracts 35,121 - 35,121
Other income 2,251,907 - 2,251,907
Investment income 46,253 - 46,253
Total income 17,074,771 - 17,074,771
Expenditure
Staff costs 8,392,917 1,102,456 7,290,461
Other operating expenses 8,352,053 83,859 8,268,194
Depreciation and amortisation 538,135 - 538,135
Interest and other fnance costs 158,082 - 158,082
Total expenditure 17,441,187 1,186,315 16,254,872
(Deficit) / Surplus before tax (366,416) (1,186,315) 819,899
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42 Annual Report and Financial Statements for the year ending 31 December 2024

ESCP EUROPE BUSINESS SCHOOL Annual Report and Financial Statements

31 December 2024

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