Reglstered number: 00587487 Charity number: 307793 MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) GOVERNORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) CONTENTS Page Reference and Admlnlstrative Details of the Company, ils Govemors and Advisers Governors. Report Independent Audllor's Report on the Financial Statements Statement of Financlal Actlvltles 10-13 14 Balance Sheet 15 Statement of Cash Flows 16 Notes to the Financial Statements 17-32
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 Governors Mr S J Hodson, Chairman Mr S F Cloke Mr T N M Lawson Mrs A H Pelch Mrs S R Reeves Mr P W Smallwood Mr H R F Somersel Mrs C A Wilson Company registered numbor 00587487 Charity reglstered number 307793 Reglstered office Marlborough House School Trust Limited, High Street, Hawkhursl, Cranbrook, TN18 4PY Head Mr E Newton Company Secretary Mr E Newton Independent audltor Crowe U.K. LLP. Riverside House, 40 - 46 High Slreel. Maidstone, Kent, ME14 1JH Page 1
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guaranlee) GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Governors present their Annual Report together with the audited financial slalements lor 1 st September 2022 10 31 st August 2023. The Governors confirm that the Annual Report and linaneial statements ol the School comply with the Current slalulory requirements, the requirements ol the company's governing document and the provisions ol the Slalemenl ol Recommended Practice ISORPI, applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicabl8 in the UK and Republic ol Ireland IFRS 1021. Marlborough House School Ilhe 'School"l is registered with the Department lor Children, Schools and Families as School Number 88616005. 11 is registered as Charity Number 307793, and holds the Company Registration nutnber 587487, with the liabilily ol ils members limited lo £1 each by guarantee. Within the insurance policies that the School holds is an extension that indemnifies the Trustees againsl any acts that result in action against them. None ol the Direclors ol the School (the "Directors.) has any beneficial interest in the Company. The Registered Ollice and principal address ol the Company is at Marlborough House School, High Street, Hawkhur51, Kent TN18 4PY. STRUCTURE, GOVERNANCE AND MANAGEMENT Status of the company Marlborough House School was founded in 1874 and was incorporated on 18th July 1957 under the Companies Acts 1948 as Marlborough House School Trust Limited, a Charilable Company limited by guarantee. Governlng body The School is governed by ils Memorandum and Articles of Association. The DSre¢lors, who are also the Charity Trustees and the School Governors, who served during the year are shown below.. Mr S J H(xlson (Chairman) Mr S F Cloke Mr T N M Lawson Mrs A Pelch Dr R Ralnavel (Resigned, 28th June 20241 Mrs S R Reeves Mr O A Reynolds (Resigned, 1 sl Decembar 20231 Mr P W Smallwood Mr H R F Somersel Mrs J M Webb (Resigned, 1st December 20231 Mrs C A Wilson Board of Govemors The Directors are required under the Articles lo serve as Governors ol the School. They are 81ecled al a lull Governors, Meeting on the basis ol nominations received, aller an appropriate recruilmenl process is undertaken from existing Governors and the Head taking independent advice as appropriate in order lo ensure a suilable cross section ol expertise, personal competence, specialist skills and local availability. Governors Serve lor an initial term of live years and are eligible to sland for re election lor luriher live year terms. Page 2
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) GOVERNORS, REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Governor tralnlng New Governors are inducted inlo the workings ol the School and th8 Company as a Regislered Charily, including Board Policy and Procedures, through a program arranged by the Head. Training Days and Extraordinary Meetings are scheduled periodically lo provide updates lor Ihe Directors and lo consider strategic planning and governance issues. New Governors arg encouraged lo allend the Association ol Governing Bodies in Independent Schools IAGBISI New Governors Course and all Governors have the optK)rtunily to allend AGBIS briefing8 and specialist courses run by exlernal organisalions. Organisational management The Governors, acting as Directors, delerrnine the general policies ol the School and review ils overall management and control. The day lo day management of the School is delegated lo the key management personnel, comprising the Head and the other members of the School's Senior Leadership Team. The Governors meet as a Board al least three limes a year. The work ol implerllenling m0510l the Board's policies is carried out by Commillees ol the Board comprising 4-5 Board members: th8 Finance and Properly Committee Ispecilically lo review the budgets, annual accounts and reports), the Education and Welfare Commillee and the Health and Salely Committee. Each Committee meets ai least three limes a year prior to the Main Board meetings. Each Committee operates under specific terms ol reference agreed by the Board ol Governors and has its decisions reported lo and ralilied by the lull Board. The Head allends all meetings ol the lull Board and all meetings ol the Board Commillees. Group structure and relatlonships The School is an active member ol the Independent Association ol Prep Schools I"IAPS"l and Ihe Boarding School Agsocialion I'BSA'I lor the promotion and maintenance of preparatory school standards generally and also lakes part in peer group studies lor the evaluation ol quality and performance irnprovemenl melhods. The School actively seeks to engage with local Charities, community and voluntary groups in ¢onlinuing endeavours lo widen public access lo ils lacililieg, lo oplimise the educational use ol ils cultural and sporting facilities and to awaken in the pupils an awareness of the wider social context of the education they receive at the School. OBJECTIVES AND ACTIVITIES The principal object ol the Company, in accordance with ils Memorandum and Articles of Association, is the education ol children at the Independent Preparatory School of Marlborough House, Hawkhursl, Kent. In the furtherance ol this object, the Directors, as the Charity Trustees, have cornplied with the duly in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub seGlor guidance concerning the operation of the public benefit requirement under that Act. Principal Actlvlty Marlborough House School Trugt's principal activity is the provision of a Preparatory School in Hawkhursl for girls and boys aged from 2 to 13. In conducting its business, the School is one ol the biggest local employers wilh many members ol ils stall resident within the immediate vicinity. The School uses the services ol local businesses and suppliers wherever possible. Total pupil numbers stood al 202 with an additional 46 in Nursery giving a lolal school role o124812022- 2351 in the Summer term 2023. Strategic Aim and Effect The Board's overall strategic aim is lo satisfy the requirements ol public benefit by operating Marlborough House School as a charitable Independent Preparatory School. While the larnilies ol most ol the School's pupils pay lull lees, the Board aims lo sel these lees at a level which enables the School lo provide bursaries on a means- lesled basis to Ihe families ol a number of pupils who otherwise would not be 8ble to allend the School. Page 3
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Limlted by Guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 In addition, the Board's slralegi¢ aim lor the School is lor il to offer an oulward-looking, secure and inclusive 8nvironmenl lor the whole School cowmunily, using high quality resources and facilities and providing an gXC8llenl all round education lor the School's pupils. To help achieve ils objectives, th8 Board aims to ensure that the School is as close lo capacity as possible, maintains a high "teacher to pupil. ratio and tailors ils leaching and pastoral care services lo suit pupils, individual needs. Objectives for the Year The Board's main objectives lor the School during the year under review were- lo support the Head's drive and passion lo build on recent successes to develop the whole School community le.g with events organised lor slafl, Pupils land Ihelr families) and alumni lo allendl; lo continue to develop the School's strategy, focused on continued educational improvement and modernisalion of the curriculum, as well as reviewing and agreeing new short and medium linancial and slafling plans- lo WO with the Head, and the Senior Leadership Team, to continue lo improve the School's facilities., lo continue lo edu¢ale pupils at the School lo a very high standard, ensuring all pupils reach Ihelr full potential in all aspects ol School life and are well prepared lor their move inlo senior school., lo continue lo provide bursaries and other financial support lo the families ol pupils who would OtheSe not be able lo allend the School., lo continue lo work collaboratively with local charities. community and voluntary organisations and educational bodies to provide access lo the School's lacililies. Grant making policies During the financial year under review, the School has maintained ils means lesled bursary support lor 7 pupils 12022.. 5 pupils) al a cost 01 £36,73812022.. £32,708) through ils own bursary scheme. This support is available on a needs basis as determined by the members ol the Finance and Property Committee following discussion8 with th9 Head. The School's approach lo awarding bursaries is kept under regular review by the Board with a locus on providing means-lesled support to families who need il most. STAFF Volunteers The Friends of Marlborough House School continue lo help with the School's charitable fundraising and CLJltural aclivilies, with members devoting considerable lime and resources on a voluntary basis. The Board is very appreciative ol their work on behalf ol the School. Page 4
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Remunerallon of Employees The remuneralion ol the Head is set by the Board. The remuneration ol other members of the Senior Leadership Team and all other slafl is determined by the Head in accordance with the whole School remuneration policy and budget, which is set annually by the Board following a recommendation by the Finance and Property Cotnmittee. In selling this policy and budget, reference is made to comparisons with other schools lo ensure that the School is sensitive lo the broader issues of pay and employment conditions elsewhere. Stall costs are, by a long way, the largest single element of the School's regular charitable expenditure and the Board believes that successful delivery ol the School's charitable vision and purpose is very signilicanily dependent on the skills, expertlsg and pertormance of the key management personnel and all other members ol th8 School's slafl. REVIEW OF ACTIVITIES Achievernents and Performance In January 2023 the School was delighted to have been able lo share the details of its lalesl lull insp8clion report undertaken by the Independent Schools Inspectorate I'ISI"). The School was rated "Excellent" in all areas with pupils ol all abilities said to be able lo "employ highly efleclive study skills which enable them lo make rapid progrèss in all subjects. and which allow them to °develop oulslanding alliludes lo learning, demonslraling inilialive, independence and a willingness to work collaboratively" The full report is available on the ISI websit8. The slafl Academic Committee continues lo monitor leaching and learning and look at various topics, such as ICT provision, dillerenlialion and assessment and reporting. This year the School made a conscious decision lo support a number of local charities as well as some nalional ones. Donations were made as follows.. Red Cross, Earthquake Appeal= £333.65. Children in Need.. £402.02, Hands ol Hope.. £107.62, Nourish.. £107.61 KSS Air Ambulance £103.20, Comic Reliel.. £466.91, Red Cross. Sudan Appeal= £133.81, Porchlighi.. £32.10 and various lood donations lo the Local Food Bank. The development ol facilities continued. The extension to the Art and DT Centre of Excellence was completed and became lully operational lor use in the Autumn term 2022 and has become a valuable new facility lor use by the whole School community. During the 2023 Easter break, the School's all-weather sports pitch was resurfaced, providing an excellent new facility lor sports lo be played throughout the year. FUTURE DEVELOPMENTS The implemenlalion ol the Head's initial school improvement strategy has given rise to posilwe educational resulis lor pupils and increased confidence for slafl and parents, while recent physical irllprovements lo the School's buildings and other facilities (including the completion of the relurbishmenl and expansion ol the Art and DT buildings, the resurfacing and improvement ol the all-weather sports pitch and the painting ol the outside of the Old Gym) are providing benefits lor pupils and stall. The ISI Inspection Report on the School published in January 2023, which rated the School "Excellent. in all areas, was an outstanding reflection on the dedication of OLJr stall. The lolal number ol pupils enrolled in the 2023 Summer term increased by over 50/0 compared lo the Summer term 012022, and there continues lo be a drive lo increase pupil numbers, while controlling the operating costs of the School. There are many challenges currently lacing the independent schools sector, however, most notably the slated policies ol the new UK Governtnenl lo introduce VAT lor a similar levyl on school lees and lo remove the current partial business rales relief applying lo independent schools. If implemented, these policies are likely lo add further to the cost pressures al private schools and lo impact on the allordabilily of an independent school education lor many children. Against this background, the Board has been giving, and is continuing to give, active consideration lo the School's overall strategic position. Page 5
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlled by Guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 FINANCIAL REVIEW The Directors report a deficit before depreciation, revaluation ol fixed assets and Ios8 on sale of fixed assets for the year ended 31 st August 2023 01 £31,30812022 deficit.. £255,456). Total income Ibefore revaluation ol fixed asselsl was £3,562,831 12022.. £3.175,8411, which was 12.2 1. higher than the previous year. Total expenditure Ibefore depreciation and loss on Sale of fixed asselsl was £3,614,139 12022: £3,431,297), which was 5.3W. higher than the pr8vious year. During the year, the Governors decided that one of the School's properties was no longer required lor educational purposes, and prepared il for potential sale. The properly has therefore been designated as an Investment Properly al 31 sl August 2023, which has resulted in a gain on revaluation ol fixed assets during the year ended 31 sl August 2023 01 £755,065. A number of i18ms on the fixed assets register which related lo properties sold In prior years have been identified during the year. In addition, the existing value ol the all weather sports pitch was written off upon its resurfacing during the year. Together these items resulted in a loss on sale ol fixed assets recorded during the year ended 31 sl August 2023 01 £172,959. Aller deducting depreciation of £190,705 12022'.£186,7851, and including the revaluation of fixed assets and deducting the loss on sale ol fixed assets, a net increase in funds of £340,093 12022 delicit.. £434,078) was recorded for Ihe year ended 31 sl August 2023. Capital expenditure during the year lolalled E172.771 12022- £600,687). This was spent on lixlures and fillings, which included resurfacing ol the all-wealher sports lacililies. Inveslwenl powers are sel oul in tho Mèmorandum and Articles ol Association. These permit the Directors to invest the monies of the Trusl not immediately required lor its purposes in such inveslmenls, securities or property as may b8 thought lil, except lor monies subject lo lor representing property subject tol the jurisdiction ol the Charity Commissioners lor England and Wales or the Secretary ol Slate for Children, Schools and Farnilies, which may only be invested as may lor the lime being be prescribed by law. During the year investment income lolalled £21912022.. £232). RESERVES POLICY Al 31 st Augusl 2023, unreslricled funds {aller excluding thos8 funds which have been designated lor specific purposes) stood al £5,172,328 131 sl August 2022.. £4,829,923). The School aims lo increase ils unrestricted funds each year by budgeling lor a modest post depreciation surplus lo be achieved and through careful financial management. This objective was not achieved during the year under review iri terms ol underlying financial performance. Al 31 st August 2023, free reserves laller deducting the carrying value ol fixed assets which are all held lor the School's usel. as defined by the Charity Commission, stood al a delicil of £847131 sl August 2022- surplus ol £729,080). Al 31 st August 2023, the School had total cash 01 £969 12022.. £167,6101. Aller deducting outstanding loans. fees paid in advance, deposils and amounts received under the advance lee payment scheme, underlying nel debt stood al £908,069 12022.. £740,884). Maintaining cash balances in addition lo the commilled debt and overdrall bank facilities that the School has in place, providos the School with financial security, as, in the event ol a sudden significant drop in lee income, which could be caused by a substantial reduction in pupil numbers. il would enable the School's current activities lo be continued, while consideration was given to ways in which operating costs could be reduced or additional funds raised lo ensure that the School's finances were suslainabSe. The School's clear objective, which will only b8 likely lo be achieved il enrolled pupil numbers show growth, is lo rebuild ils cash balances and unrestricted resgrves. Page 6
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlled by Guarantee) GOVERNORS. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 During the year ended 31 sl August 2023, the School did not lak8 part in or lead an active program ol fundraising. PRINCIPAL RISKS AND UNCERTAINTIES The Board, through ils Committees and with assistance from the School's Senior Leadership Team, keeps th8 School's activities under regular review, with particular regard lo any risks which may arise. The Board discusses such risks and lakes steps which aim lo minimise the probability ol occurrence and th8 8xl8nt ol the impact that any ol them may have on the continued success ol the School. The Board considers Ihal the principal risks which could impact the School include the following- a substantial reduction in pupil numbers. This coukl be caused, inler alia, by: a decline in the allordabilily of school fees generally across the independent schools sector. meaning that fewer pupils allend independent preparatory schools. due, lor instance, lo a diffi¢ull economic environment, or changes in legislation or charity regulations. and specific laclors which could allecl the School, such a8 a failure lo recruit high quality staff, increased competition from nearby schools and the unlikely event ol severe repulalional damage lo the School being caused by actions or events involving the School's staff andlor pupils., catastrophic events, which could cause significant damage to Ihe School's premises, including, for instance, flood or lire., {iiil personal health and safely risks, including a major accident involving the School's pupils andlor stall, either on the School's premises or when away from the School on trips organised by the School., and significant financial fraud. The School maintains a Risk Management Register, which identifies the major risks lo which the School is subjecl and describes the Control Procedures, including internal controls and other viable means, such as insurance cover, used lo reduce the likelihood ol each event occurring andlor to miligale ils ellecl. The School's Senior Leadership Team is responsible lor ensuring that the risks identified are managed appropriately, with reference lo the Control Procedures. The Risk Management Register is considered in detail by the Head and Iwo Governors on al least an annual basis and then reviewed by the Board as appropriate. In addition, the Board ovgrsees compliance with current legislation and the regulatory requirements ol the ISI, as well as regularly reviewing and considering the ellectiveness ol the School's Policies, which cover a wide range ol mallers which are important lor the succegslul management ol the School. Tho School is confident that it can lake and maintain whatever steps are needed lo ensure a sale environment lor pupils, stall and visitors lo tho School. At any lime, the School will always aim to be ready to adapt its premises in order lo provide the best educational experience whilst being mindful ol complying with Government rules and guidance. The School considers that in the near term, the threat posed lo independent fee paying schools Ihal will be posed by a new Government in the UK deciding lo require that VAT, or an equivalent levy, is charged on all lees that are paid lor a child's education, is a very real concern. A paper, considering the likely irNpacl of this change in the law being enacted as well as any other changes in laxalion that might have an impact on the School, has been reviewed and discussed by the 8oard and the potential lo miligale any impacts has been discussed. This maller is being kepl under close review. Page 7
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee} GOVERNORS, REPORT {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2023 GOING CONCERN Accounting standards require the Governors lo consider the appropriateness of the going concern basis when preparing the financial slalemenls. The Governors have arranged for the preparation of cashllow lorecasls lor the next 12 months and beyond based on current expectations ol pupil numbers, lees and expectations ol pupil numbers, lees and expenditures. Thesa lorecasls also include the partial repayment ol the GBILS and Societe Generale loan lacililies described in note 16 01 the financial slalemenls and include assumptions about the availability and repayment ol an additional £600,000 loan facility entered inlo during the year ended 31 st August 2023 and drawn down aller the end ol the financial year, as well as the sale ol certain fixed assets. These loan facilities were pul in place lo finance the relurbishmenl ol the all-wealher sport8 lacilllies and lo provide addilional working capital. Taking into consideration all ol the alx)ve factors, the Governors have a reasonable expectation that the School has adequate resources lo continue in operational existence lor the foreseeable future. The School therefore conlinues lo adopt the going concern basls in preparing its financial stalemenls. GOVERNORS, RESPONSIBILITIES STATEMENT The Governors (who are also directors ol Marlborough House School Trust Limited lor the purposes ol company lawl are responsible lor preparing the Governors, report and the financial slalemenls in accordan with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Praclicel. Company law requires the Governors lo prepare linan¢lal statements for each financial year. Under company law the Governors musl not approve the financial statements unless they are satisfied that they give a Irue and lair view ol the slate ol allairs ol the School and ol the incoming resources and application of resources, including Ihe income and expenditure. of the School lor that period. In preparing these financial slalemenls, Ihe Governors are required lo.. select suitable accounling policies and then apply them ¢onsislenlly', observe the methods and principles in the Charities SORP- make judgments and accounting eslimales that are reasonable and prudent., slate wheiher applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls- prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presum8 that the School will conlinue in operation. The Governors are responsible lor keeping adequate accounting records that are sullicienl lo show and explain the School's transactions and disclose with reasonable ac¢uracy al any lime the financial posilion ol the School and enable them lo ensure Ihal the financial slalemenls comply with the Companies Act 2006. They are also responsible lor safeguarding the assets of the School and hence lor taking reasonable steps lor th8 prevention and deleclion ol fraud and other irregularities. Page 8
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023
DISCLOSURE OF INFORMATION TO AUDITOR
Each of the persons who are Governors at the time when this Governors' report is approved has confirmed that:
so tar as that Governor is aware, there is no relevant audit information of which the School's auditor is unaware, and
that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any relevant audit information and to establish that the School's auditor is aware of that information
Approve e mem ard of Governors o[r:}_] and signed on their behalf by: d by or th the bo Aho — c Mr SJ ( (Chair of Trustees) '1-----
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MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlled by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARLBOROUGH HOUSE SCHOOL TRUST LIMITED Opinion We have audited the financial slalements ol Marlborough House School Trusl Limited (the 'charilable companll lor the Year ended 31 August 2023 which comprise the Slalemenl ol Financial Aclivilies, the Balance Sheet, the Slalemenl ol Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic ol Ireland, (United Kingdom Generally Accepted Accounting Praclicel. In oijr opinion the financial slalements= give a true and lair view ol the slal@ ol the charitable companls affairs as al 31 August 2023 and ol its incoming resources and application ol resources, including ils income and expenditure for the Year then ended- have been properly prepared in ac¢ordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements ol the Companies Act 2006. Basls lor oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities lor the audit of the financial slalemenls section ol our report. We are independent ol the charitable company in accordance with the ethical requirements that are relevant lo our audit ol the financial slalemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sullicienl and appropriate lo provide a basis lor our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Governors. use ol the going concern basis ol accounting in the preparation ol the financial statèments is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability lo continue as a going Concern for a period ol al least twelve months from when the financial slalemenls are aulhorised lor issue. Our responsibilities and the reswnsibililies of the Governors with respect lo going concem are described in the relevant sections of this report. Page 10
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llrnlled by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (CONTINUED) Other information The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report Ihereon. The Governors are responsible lor the other information contained within the Annual Rgporl. Our opinion on the financial statements does not cover the other information and, except lo the extent olherwise explicitly slated in our report. we do not express any form ol assurance conclusion Ihereon. Our responsibility is lo read the othèr information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalements or our knowledge obtained in the course ol the audit, or othenNise appears lo be materially misstated. 11 we identify such material inconsistencies or apparent material tnisslatements, we are required lo determine whether this gives rise to a material misslalemenl in the financial slalemenls themselves. 11, based on the work we have performed, we conclude that there is a malerial misstal8menl of this other information, we are required lo report that lacl. We have nothing to report in this regard. Oplnlon on other matt8rs pre$¢rlbed by the Companies Act 2006 In our opinion. based on the work undertaken in the ¢ourse ol the audit: the information given in the Governors. Report including the Slralegic Report for the financial Year lor which the financial statements are prepared is consislenl with the financial slatemenls. the Governors, Report and the Strategic Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light ol our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misslalemenls in the Governors. Report including the Strategic Report. We have nothing to report in respect ol the following mallers in relation lo which Companies Act 2006 requires us lo report to you il, in our opinion- adequate accounting records have not be8n kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial slalements are not in agreement with the accounting records and returns. or certain disclosures ol Governors. remuneration specified by law are not made., or we have not received all the information and explanations we require lor our audit. Re$ponslbllltles of trustees As explained more lully in the Governors, Responsibilities Statement, Ihe Governors Iwho are also the directors of the charitable company lor Ihe purposes ol company lawl are responsible lor the preparation ol the financial slalemenls and lor being satisfied Ihal they give a true and lair view. and for such internal control as the Governors determine is necessary lo enable the preparation of financial statements that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial slalements, the Governors are responsible for assessing the charilable company's ability lo continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concern basis ol accounting unless the Governors either intend to liquidate the charitable company or lo ease operations, or have no realistic allernalive bul to do so. Page11
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlted by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARLBOROUGH HOUSE SCHOOL TRUST LIMITED ICONTINUEDI Auditor's responsibilities for the audlt of the financial statements Our objectives are lo obtain reasonable assurance about whether the linan¢ial statgmenls as a whole are free from material misslalement, whether due lo fraud or error, and lo issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level ol assurance, bul is not a guarantee that an audil conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material il, individually or in the aggregate, they could reasonably be expected to influence the economic decisions ol users taken on the basis ol these financial slalemenls. Irregularitieg, including fraud, are instances ol non-compliance with laws and regulations. We design proceduros in line with our responsibilities, outlined above, lo delecl material misslatemenls in respect of irregularities, including fraud. The exlenl to which our procedures are capable ol delecling irregularilies, including fraud is detailed below- We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, foGusing on those laws and regulations that have a direct ellect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and SORP 2015. We identified the greatest risk ol material impact on Ihe financial statements from irregularities, including fraud, to be the override ol controls by management. Our audit procedures lo respond lo these risks included.. onquiry of management about the Group's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances ol non-compliance., examining supporting documents lor all material balances, transactions and disclosures- enquiry ol management and review and inspection ol relevant correspondence. ovalualion ol the selection and application ol accounting policies related lo subjective measurements and complex transactions- analytical procedures to identify any unusual or unexpected relationships. lesling the appropriateness of journal entries recordèd in the general ledger and other adjuslmenls made in the preparation ol the financial slalemenls., and review ol accounting eslimales lor biases. Owing lo the inherent limitations ol an audit, there is an Ljnavoidable risk that we may not have detecled some material misslalemenls in the financial slalemenls. even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected lo delecl non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case ol misslatemenl resulting from fraud as this may invofve sophislicaled schemes designed lo avoid deleclion, including deliberate failure to record transactions, collusion or the provision ol intentional misrepresenlalions. A further description ol our responsibilities lor the audit ol the financial statements is localod on the Financial Reporting Council's website al.. www.lrc.or -uklaudilorsres onsibilities. This description forms part of our Audilorfs Heport. Page 12
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (CONTINUED)
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Ian Weekes (Senior Statutory Auditor)
for and on behalf of Crowe U.K. LLP
Statutory Auditor
Riverside House
40 - 46 High Street
Maidstone
Kent
ME141JH
Date: 30 July 2024
Page 13
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENOITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023 Unrestrlcted funds 2023 Restricted lunds 2023 Tolal fund8 2023 Total lunds 2022 Note Income from: Donations and legacies Charitable activities Other Irading aclivili8S Investments 1,686 3,548,255 12.671 219 1,686 3.548.255 12,671 219 830 3, 156,355 18.424 232 Totsl Income 3,562,831 3,562,831 3,175,841 Expendlture on: Charitable activities 3,975.490 2,313 3,977,803 3,609,919 Total expendlture 3,975,490 2.313 3.977,803 3,609,919 Net movement In funds before other recognised gainsl(losses) {412,659) (2,313) {414,972) (434,078) Other recognlsed galnslllos$e$)". Gains on revaluation ol fixed assets 755,065 755,065 Net movemenl in tunds 342,406 (2,3131 340,093 (434.078) Reconclllatlon ol funds: Total lunds brought forward Net movement in funds 4,829,923 342,406 2,313 (2,313> 4,832,236 340.093 5,266,314 (434,078) Total funds carrled forward 5,172,329 5,172,329 4,832,236 The Slalement of Financial Acliwties includes all gains and losses recognised in the Yoar. The notes on pages 17 10 32 form part of these financial slalemenls. Page 14
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00587487
BALANCE SHEET AS AT 31 AUGUST 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | |||
| Fixed assets | |||||
| Tangible assets | 12 | 5,173,175 | 5,559,003 | ||
| Investment property | 13 | 950,000 | |||
| 6,123,175 | 5,559,003 | ||||
| Current assets | |||||
| Stocks | 14 | 9,546 | 9,917 | ||
| Debtors | 15 | 59,855 | 83,941 | ||
| Cash at bank and in hand | 25,775 | 167,610 | |||
| 95,176 | 261,468 | ||||
| Creditors: amounts falling due within one | |||||
| year | 16 | (763,119) | (696,568) | ||
| Net current liabilities | (667,943) | (435,100) | |||
| Total assets less current liabilities | 5,455,232 | 5,123,903 | |||
| Creditors: amounts falling due after more | |||||
| than one year | 17 | (282,904) | (291,667) | ||
| Total net assets | 5,172,328 | 4,832,236 | |||
| Charity funds | |||||
| Restricted funds | 18 | 2,313 | |||
| Unrestricted funds | 18 | 5,172,328 | 4,829,923 | ||
| Total funds | 5,172,328 | 4,832,236 |
The Governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Governors on 26 July 2024 and signed on their behalf by:
Mr SJ Hodson
(Chair of Trustees)
Page 15
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Cash flows from operatlng actlvltles Nel cash provided byllused inl in operating activities 2,169 1310,089) Cash flows from Investlng actlvltles Dividends, interests and rents from investments Purchase ol tangible fixed assets Proceeds from sale ol investment propertles Interest paid New loans 219 232 {172,771 } (600.687) 565, 163 (15, 180) 113,5631 130,339 Net cash (used In)Iprovided by investlng acllvltles (55,776) (50,472) Cash flows from flnanclng actlvltles Repayments ol borrowing 1113.034) (397,262) Net cash used in financlng actlvltles 1113,034) {391,2621 Change In cash and cash equlvalenls In the Year Cash and cash equivalents al the beginning ol the Year {166,641) {751,823) 167.610 979.433 Cash and cash equivalents at the end of the Year 969 167,610 The notes on pages 17 10 32 form part ol thes8 financial slatemenls Page 16
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 General Informatlon Marlborough House School is a company limited by guarantee incorporated in England and Wales {company registration number 00587487 and charity number 3077931. The principal activity is that ol an independent school. Ils registered address is al'.- High Street Hawkhurst Cranbrook TN18 4PY Accounting poll¢les 2.1 Basis of preparation ot financial statements The financial slalemenls have been prepared in a¢cordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Sialemenl ol Flecommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 lelleclive 1 January 20191, Ihe Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 and the Companies Act 2006. Accounting slandards require the Governors lo consider the appropriateness ol the going concern basis when preparing th8 financial statements. The Governors have arranged lor the preparation ol cashllow lorecasls lor the next 12 months and beyond based on current expectations ol pupil numbers, lees and expectations of pupil numbers. lees and expenditures. These lorecasls also include the partial repayment ol the CBILS and Sociele Generale loan facilities described in note 16 of the financial statements and include assumptions about the availability and repayment ol an additional £600,000 loan lacilily entered into during the year ended 31 sl August 2023 and drawn down aller the end ol the financial year, as well as the sale ol certain fixed assets. These loan lacililies were pul in place to finance the relurbishmenl ol the all- weather sports facilities and lo provide additional working capital. Taking into consideration all ol the above laclors, Ihe Governors have a reasonable expectation that the School has adequate resources to continue in operational existence lor the foreseeable future. The School therefore continues to adopt the going conc8rn basis in preparing ils financial slalemenls. Marlborough House School Trust Limited meets the definition ol a public benefit enlily under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless olhenNise slated in the relevant accounting policy. Page 17
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Limited by Guaranlee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accountlng pollcies {continued) 2.2 Income All income is recognis8d once the Company has entitlement to th8 income, il is probable that the income will be received and the amounl ol income receivable can be measured reliabty- School lees receivable, less any bursaries or scholarships are bi118d lermly in advance and the income is recognised on the lirsl day ol the new term lo which they relate. Where fees are reiVed in advance ol the relevant period, they are recognised as deferred income. Income re¢eivabl8 lor extras lo the core school fees is billed in arrears on the following term's bill when the amount ol income rgceivable can be tneasured r81iably. Amounts are recognised in the period lo which Ih8y r8lale and held in trade debtors until payment is received. Donations, legacies, grants and other voluntary income are accounted lor when the following Grileria are satisfied,. enlillgmenl has arisen. the amount can be r81iably measured and Ihe economic benefit is considered probable. 2.3 Expenditure Expenditure is recognised once there is a legal or conslruclive obligation lo Iransler economic benelil to a third party. il is probable that a Iransler ol economic benefits will be required in selllemenl and the amount ol the obligation can be measured reliably. Expendiluro is classified by aclivily. The costs ol each activity are made up ol the lolal of direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs allribulable lo a single aclivily are allocated directly lo that activity. Shared costs which contribute to more than one aclivily and support costs which are not allribulable to a single activity are apportioned between those activities on a basis consislenl with the use of resources. Central stall costs are allocated on the basis of lime spent. and depreciation charges allocated on the portion ol the asset's use. Charitable activities and Governance cosls are costs incurred on the Charity's educational operations, including support costs and cosls relating lo the governance ol th8 Charily apportioned lo charitable aclivilies. All expenditure is inclusive ol irrecoverable VAT. 2.4 Interest recelvable Interest on funds held on deposit is included when receivable and th8 amount can be measured reliably by the Company. this is normally upon nolilicalion ol the inl8resl paid or payable by the inslilulion with whom the funds are deposited. 2.5 Tangible fixed assets and deprecialion Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value ol the asset can be measured reliably. Tangible fixed assets are initially recognised al cost. Aller recognition, under the cost model, tangible lixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 18
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limlled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accountlng policles (contlnued) 2.5 Tanglble tlxed assets and depreclatlon (contlnued) Depreciation is charged so as lo allocate the cost ol tangible fixed assets less their residual value over their estimated useful lives Depreciation is provided on the following bases.. Freehold propety Motor vehicles Fixtures and fittings Computer equipment over 10 50 years Slraighl line over 5 years Reducing balance al 150/. Slraighl line over 3 years 2.6 Investment properties The Trustees. policy was lo revalue the company's investment properties al each reporting date. Governors assessed the value ol the land and buildings based on and independent valuation Carried out in 2023 and updated lor current market prices. No depreciation is provided in respect ol investment properties in accordance with section 16 01 FRS 102 Investment Properly There were no investment properties hekl in the current year. 2.7 Stocks Stocks are vaSued al the lower of cost and nel realisable value aller making due allowance lor obsolete and slow-moving stocks. Cosl includes all direct costs and an appropriate pyoportion ol fixed and variable overheads. 2.8 Debtors Tradè and other debtors are recognised al the settlement amount aller any trade discount ollered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.9 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm highly liquid investments with a short malurily ol three months or less from the dale ol acquisition or opening ol the deposit or similar account. Page 19
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting pollcles (continued) 2.10 Liabllltles and provisions Liabilities are recognised when there is an obligation al the Balance Sheet dale as a result ol a past event, it is probable that a Iransler ol economic benefit will be reqLJired in seiilemenl, and the amount ol the selllemenl can be eslimaled reliably. Liabilities are recognisgd al the amount that the Company anticipates it will pay lo sellle the debt or the amount il has received as advanced payments for the goods or services il musl provide. Provisions are measured al the best estimate ol th8 amounts required lo settle the obligation. Where the ellecl ol the lim8 value ol money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rale that rellecls the risks specific lo the liability. The unwinding ol the discount is recognised in the Sialemenl ol Financial Activities as a finance cost. 2.11 Financlal instruments The Company only has financial assets and financial liabilities of a kind that qualify as basie financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their seiilemenl value with Ihg 8xceplion ol bank loans which are subsequently measured al amorlised cost using the effective inler8sI method. 2.12 Pensions The Company operates a defined contribution pension scheme and the pension charge represents the amounts payabl8 by the Company to the fund in respect ol the Year. 2.13 Fund accounting General funds are unroslricled funds which are availabl8 for use al the discretion ol the Governors in furtherance of the general objeclives of the Charity and which have not been designated lor other purposes. Restricted funds are funds which are lo be used in accordance with specific reslriclions imposed by donors or which have been raised by the Charity for particular purposes. The costs ol raising and administering such funds are charged against the specific fund. The aiffl and use ol each reslricled fund is set out in the notes to the financial stalemenls. Investment income, gains and losses are allocated lo th8 appropriate fund. Page 20
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Critical accountlng estimates and areas of judgment Eslimales and judgments are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed lo be re8sonable under Ihe circumstances. Critical accounting eslimates and assumptions: The Company makes eslimales and assumptions Conrning the lulure. The resulting accounting eslimales and assumptions will, by delinilion, seldom equal the related actual results. The Èstimates and assumption5 that have a significant risk ol causing a material adjuslmenl lo the carrying amounts ol assels and liabilities within the next financial year are discussed below. il Tangible Iix8d assets.. the trustees annually assess both the residual value of these assets and the expected useful lil8 ol such assets which is currently judged lo be up to 50 years, based on experience. ill Recoverability ol trade debtors= the directors annually assess whether a bad debt provision is required lor any bad or doubtful debtor balances. Income from donatlons and lega¢les Unrestricted funds 2023 Total funds 2023 Donations 1,686 1,686 Page 21
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Income from donatlons and legacies (contlnuedl Unrestricted lunds 2022 Total funds 2022 Donations 830 830 Income from charltable activities Unrestrlcted funds 2023 Total funds 2023 Gross fee income Less.. bursaries, scholarships and allowances Other charges to pupils Registration lees 3,777,606 3,777.606 1356,8901 {356.890) 124,589 124,589 2,950 2,950 3,548,255 3,548,255 Unrestricted funds 2022 Tot81 funds 2022 Gross fee income Less.. bursaries, scholarships and allowances Other charges lo pupils Registration le8S 3,336,078 3,336,078 (278.679) (278,679) 96,906 96,906 2,050 2,050 3, 156,355 3,156,355 Page 22
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Income from other tradlng activities Income from fundralslng events Unrestrlcted funds 2023 Total funds 2023 Lellings 12,671 12,671 Unrestricle funds 2022 Total funds 2022 Lellings 18,424 18.424 Investment In¢ome Unrestricted funds 2023 Total funds 2023 Bank interesl 219 219 Unrgstricted funds 2022 Total lunds 2022 Bank interest 232 232 Page 23
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Analysls of expenditure on charitable actlvltles Summary byfund type Unrestricted Restrlcted funds funds 2023 2023 Total 2023 Teaching costs Welfare costs Premises Support for schooling Bank interest and charges 2,246,925 471,928 547,496 691,360 17,781 2,313 2,249,238 471,928 547,496 691.360 17,781 3,975,490 2,313 3.977,803 Unreslricted lunds 2022 Total 2022 Teaching costs Welfare costs Premises 2,076,551 434,500 577.587 499,514 21,767 2,076,557 434,500 577,587 499,514 21,767 Support lor schooling Bank int8resl and charges 3,609,919 3,609,919 Audltor's remuneration 2023 2022 Fees payable lo the Company's auditor for the audit ol the Company's annual accounts 16,675 Y4,245 Fees payable lo the Company's auditor in respect of.. All non-audit services not included above 1.000 3,400 Page 24
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 10. Staff cosls 2023 2022 Wages and salaries S[al securily costs Contribution lo defined contribution pension schemes 2,278.142 198,599 219,314 2, 191,452 193,431 234,290 2,696,055 2,619,173 Tho average number of persons employed by the company during the Year was as follows.. 2023 No. 2022 Teaching Domestic Administration 58 59 22 20 90 The number ol employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2023 No. 2022 In the band £60,001 £70.000 In the band £70,001 £80,000 In the band £9Q,001 £100,000 In the band £1 00,001 £110,000 Th8 total r8mun8ralion and benefits received by key management personnel during the year was £325,781 {2022'. £ 367,3351. Page 25
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 11. Governors. remuneration and expenses During the Year, no Governors received any remuneration or other benefits (2022- £NIL). During the Year ended 31st August 2023, expenses tolalling £NIL were reimbursed or paid directly to Governors12022 - £NILI. 12. Tanglble flxed assels Freehold property Motor Flxtures and vehlcles flttlngs Computer equlpment Total Cost or valualion Ai 1 September 2022 Additions Disposals Transfers between classes 7,398.915 96,358 1,026,715 172,771 (6,037) 112,084) 688.043 9,210,031 172,771 1281.498) 1303.936) (275,4611 1291,852) Ai 31 August 2023 6,831,602 96,358 1,181,365 688.043 8,797,368 Depreciation Ai 1 September 2022 Charge lor the Year On disposals Transfers between classes 2.034.189 146,706 1104,1591 {98,075) 96,142 216 844,203 35,669 14,3801 {10,9261 676,494 8,114 3,651,028 190,705 (108.5391 {109,0011 Ai 31 August 2023 1,978.661 96,358 864,566 684,608 3,624,193 Net book value Al 31 August 2023 4,852,941 316,799 3.435 5.173,175 At 37 August2022 5,364, 726 216 182,512 17,549 5,559.003 Page 26
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 13. Inveslment property Freehold Investment property Valuatlon Surplus on revaluation Transfer between classes 755,065 194.935 At 31 Augusl 2023 950,000 Governors assessed the value ol the land and buildings based on an independent valuation carried out in 2023 and updated lor current market prices. 14. Stocks 2023 2022 Finished goods 9,546 9,917 15. Debtors 2023 2022 Due wlthln one year Trade debtors Prepaym&nls and accrued income 50.052 9,803 60.204 23,737 59,855 83,941 Page 27
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Credltors: Amounts falllng due wllhln one year 2023 2022 Bank overdralls Bank loans Trade creditors Fees in advance and deposits Other creditors Accruals and deferred income Advance payment scheme 24,806 126,068 83,046 475.779 9,634 19,499 24,287 loo,000 46,294 453,544 11.207 22,243 63,280 763.119 696,568 A CBILS bank loan of £500,000 was taken out in 2020. Interest is being charged on the loan al 2.34 10 p.a over base ral8. The CBILS loan is repayable in inslalments over 5 years. A Socete Generale bank loan of £130,399 was taken out in 2023 and inl8resl is being charged on the loan al 5.3°/o p.a. The loan is repayable in instalmenls over 5 years. 17. Creditors- Amounts falllng due after more than one year 2023 2022 Bank loans 282,904 291,667 Page 28
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 18. Statement of fund$ lcontlnued) Statement of fund$- prlor Year Balance al I September 2Q21 Balance al 31 August 2022 Income Expenditure Unrestricted funds General Funds - all lurKIs 5,264,001 3,175,841 (3,609,919) 4,829,923 Reslrlcted funds Reslricled Funds 2,313 2,313 Total of funds 5,266,314 3,175,841 (3,609,919) 4,832,236 19. Reconcillailon of net movement In funds to net cash flow from operntlng actlvltles 2023 2022 Nel expendilLJre for the year las per Statement ol Financial Acliviliesl 1414,972) (434,078) Adjustments for: Deprecialion charges Interest paid Dimdends, interests and rents from investments Lossllprolill on the sale ol investment properties Lossllprolill on the disposal of fixed assets Decrease/lincrease} in debtors Increaselldecreasel in creditors Decreasellincrease) in stock 190,705 13,563 (219) 186,785 15,180 (232) (8, 763) 172,959 24,086 15,676 371 (9,047) (60,534) Net cash provlded byl{used In) operatlng actlvltles 2,169 (370,089) Page 30
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAFI ENDED 31 AUGUST 2023 20. Analysls of cash and cash equivalents 2023 2022 Cash in hand Overdraft facility repayable on demand 25.775 {24,806} 167,610 Total cash and cash equivalent5 969 167,610 21. Analysis of changes in net debt A11 September At31 2022 Cash flows August 2023 Cash at bank and in hand Bank overdralis repayable on demand Debt due within l year Debt due aller 1 year 167,610 (141.835) 25,775 124,8061 124,806) (26,0681 (126,068) 8,763 {282,904) {100.000) {291,667} 1224,057) 1183.946) (408,003) 22. Pension commitments The School previously participated in the Teachers, Pension Sch8me I'the TPS'I lor its teaching staff bul exiled the scheme on 1 May 2021. The pension charge lor the year includes contributions payable lo the TPS ol £nil {2022'. £nill and al the year-end £nil12022 - £nill was accrued in r8spgcI ol conlribulions lo this SGheme. The charity also makes contributions lo defined contribution pènsion schemes whose assets are held in an independently administered fund. During the year, contributions 01 £218,538 12022 - £234,290) were made lo the pension scheme with contributions ol £nil12022 - £1,599) outstanding al the balance sheet dale. Page 31
MARLBOROUGH HOUSE SCHOOL TRUST LIMITED (A Company Limiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 23. Operating lease commitments Al 31 August 2023 the Company had commiltnenls lo make future minimum lease payments under non- cancellable operating leases as follows= 2023 2022 Not later than l year Later than 1 year and not later than 5 years 31,646 110.825 4,057 6,867 142,471 10,924 Page 32