**Registered number: 00610514 Charity number: 307914**
**Babington House School Limited (A company limited by guarantee)**
**Trustees' report and financial statements For the year ended 31 August 2025**
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Contents**
||Page|
|---|---|
|**Reference and administrative details of the charitable company, its Trustees and**|1|
|**advisers**||
|**Trustees' report**|2 - 7|
|**Independent auditors' report on the financial statements**|8 - 11|
|**Statement of financial activities**|12|
|**Balance sheet**|13|
|**Statement of cash flows**|14|
|**Notes to the financial statements**|15 - 31|
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Reference and administrative details of the charitable company, its Trustees and advisers For the year ended 31 August 2025**
|**Trustees**|Mr C Turner|
|---|---|
||Mr W Magill|
||Ms H Porter-Aslet|
||Mr J Frankish|
||Mr M Hannibal (resigned 24 July 2025)|
||Mrs E Channon (resigned 24 November 2025)|
||Mr G Scotchbrook|
||Mr B Roberts|
||Ms K Paterson (appointed 21 November 2025)|
|**Company registered**
**number**
00610514
**Charity registered**
**number**
307914
**Registered office**
Babington House School
Grange Drive
Chislehurst
Kent
BR7 5ES
**Independent auditors**
Kreston Reeves Audit LLP
Statutory Auditor
Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG
**Bankers**
Lloyds Bank plc
Edinburgh
BX2 1LB||
Page 1
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Trustees' report For the year ended 31 August 2025**
The Trustees present their annual report together with the audited financial statements of the charitable company for the year 1 September 2024 to 31 August 2025. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Directors confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Objectives and activities**
Vision:
Inspire. Challenge. Nurture.
Mission:
The School knows each child as an individual, fostering a sense of belonging within a supportive, diverse community. Building on traditional foundations, we seek opportunities that go beyond the ordinary, enabling us all to achieve success in an ever-changing world.
## **a. Policies and objectives**
The object of the Company is the provision of education and associated facilities.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Strategies for achieving objectives**
The School's aims are set out in its Mission Statement.
## **c. Activities undertaken to achieve objectives**
In practice the objectives are achieved via the provision of co-educational day schooling for pupils from 3 years old until 18.
## **d. Social investment policies**
Although Babington House is primarily a fee paying school, a number of scholarship awards are available to talented and bursary awards to disadvantaged children from the local community. The number of scholarship and bursary places is currently 36 (2024: 48) and scholarships and bursary provision paid for from School funds during the year under report amounted to £210,110 (2024: £299,411).
We are also very proud that the school offers a small number of full scholarships to Sixth Form pupils who had previously attended large state schools in under deprived areas of SE London. These pupils join our community and make the most of the opportunities here, helping to create a vibrant and diverse community.
## **e. Facilities**
There have been several refurbishment projects over the summer holiday with a refreshed entrance, headteachers office and Marketing & Admissions Suite. A new ICT suite has also been provided with 2 Year 1 classrooms being refurbished using natural materials which research shows has a beneficial impact on learning. As the school demographic shifts, the focus in the next 5 years is on enhancing the curriculum and providing more specialist spaces for learning.
Page 2
**Babington House School Limited (A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 August 2025**
## **Strategic report**
## **Achievements and performance**
## **a. Main achievements of the charitable company**
The school is one of the highest achieving schools in the London Borough of Bromley. The Board will seek to ensure that educational standards are upheld in line with the Mission Statement so that this position is maintained.
## **b. Key performance indicators**
Though the school does not, of course, measure its success solely in terms of the academic performance of its pupils, the Board is pleased to report that this year's A Level and GCSE examinations results published in 2025 were remarkable and well above National averages.
## **GCSE Results 2025**
Babington House students achieved a fantastic array of GCSE results in 2025, successfully securing Sixth Form places to study both academic and creative subjects at A Level. In Mathematics, Business, History, Physics and MFL subjects, over 50% of students were awarded the highest 9-7 grades. In History and Physics, 57% of grades were awarded 9-7, whilst in Business Studies 64% of students achieved these top grades. Students taking German GCSE achieved 100% 9-7 grades whilst in Spanish a fantastic 57% of students also celebrated these highest grades. In Mathematics, our Year 11 students were awarded 52% the top 9-7 grades and those students that took Further Maths GCSE achieved a fantastic 57% in 9-7 grades.
## **A Level Results 2025**
In 2025 Babington House Sixth Form students achieved a wealth of outstanding A Level results, securing top university places at a range of Russell Group Universities. Students studying English Literature produced a set of fantastic A Level results, with 75% of students achieving the highest A* and A grades, whilst in Mathematics 67% of students also achieved A* and A grades. In the creative subjects, our first cohort of A Level Fine Art students achieved an outstanding 67% A*-A grades with A Level Textiles students securing 100% of the highest grades. All our students successfully secured places at University to study a wide range of subjects reflecting their unique interests and talents. Our 2025 destinations include a range of Russell Group Universities including Manchester, Sheffield, Southampton, Cardiff, and for one of our students with a particularly creative flair, a place at the University for the Creative Arts. Our students have chosen a fantastic array of degree subjects to study including Medicine, Law, Engineering with a Placement Year, Banking and International Finance with a Professional Placement, Economics, Forensic Psychology, Business Management, Electrical and Electronic Engineering and History.
Page 3
**Babington House School Limited (A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 August 2025**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **c. Review of activities**
## **Charities and community work**
The school raises a considerable amount for various charities through its fundraising initiatives. These include; Bromley Food Bank, St Christopher’s Hospice, Bromley Homeless Charity, and Bromley Brighter Beginnings. The School also has a weekly group that participate in the community group at the local train station, Friends of Elmstead Woods, as well as a group of students that regularly visit a local care home.
## **Educational Trips and Outings**
We have trips to the New Forest, Sayers Croft, Bore Place, Hindleap Warren and the regular ski trip to the Italian Alps.
## **Drama Sport and co-curricular**
We enjoy a lot of competitive sport, Under 14 and Under 16 levels. We have represented Kent the SE Region for Swimming and Athletics. We have rock climbing and bouldering facilities on site, and we compete very well against other schools in our football too. This year has seen the introduction of a Ski Race Team, with some students qualifying for the Schools’ National Championships. The carol services and prize giving award ceremonies are always very well received by parents. We have enjoyed World Book Week and range of other cross curricular initiatives. The very well-produced whole school drama production of DNA was enjoyed by all.
## **d. Factors relevant to achieve objectives**
The school aims to enable its students to meet the challenges of the 21st Century and to create a learning environment which caters for the needs of each individual and promotes active learning and individual success.
The School was last inspected November 2023 in which the School was judged to have met all of the ISI criteria.
The School continues to encourage its pupils to develop a sense of social responsibility and an understanding of the plight of others less fortunate than themselves. Fund raising schemes have enabled pupils to raise funds for nominated charities and good causes, and in so doing learn more about the activities of the charities and causes in question. The school have a very active PTA (BHFSA) who also support the school in raising funds.
## **e. Fundraising activities and income generation**
The School has had funds donated to it by the Babington House School Friends Association which is a voluntary group of parents who meet to organise social events to raise money for the School. Meetings are attended by members of the Senior Leadership Team. The charitable objectives of the BHSFA are as follows:
- To advance the education of pupils in the school in particular by developing effective relationships between the staff, parents and others associated with the school.
- Engaging in activities or providing facilities or equipment which support the school and advance the education of the pupils.
No complaints have been received in respect of fund-raising activities.
Page 4
**Babington House School Limited (A company limited by guarantee)**
**Trustees' report (continued) For the year ended 31 August 2025**
**Strategic report (continued)**
## **Achievements and performance (continued)**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
Reserves are held by the School to cope with unexpected events such as falls in income or exceptional items of expenditure. This is important to ensure the School has sufficient reserves while it takes remedial action if necessary, thereby creating stability.
Total funds for the charity at 31 August 2025 amounted to £7,809,462 (2024: £7,263,106). Restricted funds of the charity at 31 August 2025 were £nil (2024: £nil).
Unrestricted funds of the charity at 31 August 2025 were £7,809,462 (2024: £7,263,106), however this includes tangible fixed assets of £8,930,775 (2024: £8,951,780) and a mortgage debt attached to the property of £1,695,193 (2024: £2,132,180). Free reserves, excluding any secured balances, amounted to £573,880 (2024: £6,519).
There is no future cash flow associated with the receipt of advance fees. This along with the preparation of detailed budgets showing a positive cash flow enables the Trustees to conclude that there is no material uncertainty relating to going concern in this regard. Trustees aim to maintain at least three months of operational costs as cash balances which at 31 August 2025 would amount to £1,992,072 (2024: £1,819,073) compared with the actual cash balance of £2,258,546 (2024: £2,221,282).
## **c. Principal risks and uncertainties**
In consultation with key management the Directors continue to keep the School's activities under review, particularly with regard to any major risks that may arise from time to time. It monitors the effectiveness of the system of internal control and other viable means, including insurance cover where appropriate, by which those risks already identified can be best mitigated. The Directors, Senior Leadership Team and all staff work hard to ensure the school maintains its high quality and holds firm to its core values. They also strive to make sure there is a whole school appreciation of the importance of pupil recruitment. There is also a culture of embracing change and diversification, where this is set to improve the school, such as;
1. Selectivity and academic drive in general and the introduction of an 11+ entrance test.
2. The school sets its own educational direction, tactics and strategic direction and is courageous in maintaining an outstanding provision which is professionally determined and rigorously maintained.
## **d. Principal funding**
The principal funding source to enable the School to operate in its normal course of business remains the fees paid by parents. The School does not have any endowments.
Page 5
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Trustees' report (continued) For the year ended 31 August 2025**
## **e. Review of the year**
During the year under review the School recorded a surplus of income over expenditure of £546,356 (2024: £759,210).
During the year there was a material write off of assets under construction, resulting in a loss on write off of £320,049. The school engaged a project management company and architects in 2021 to devise a master plan which had 2 phases. The first phase was a standalone classroom which was completed in 2021 and the second phase was a large building project valued at £5.2m. Project management, architects, survey fees etc were paid up to planning application stage. There was no indication the planning would be refused so the school continued to invest in the project. The planning permission was eventually denied and the subsequent appeal was rejected. This amount written off represents the expenditure on the project to date.
## **Structure, governance and management**
## **a. Constitution**
Babington House School Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
## **b. Methods of appointment or election of Trustees**
New Directors are recruited by approaching individuals whose area of expertise is considered will help the school pursue its endeavours. The school also seeks the active involvement of parents. After meeting existing Directors under the guidance of the Chairman, applicants are either accepted or rejected. Suitable induction training is arranged.
## **c. Organisational structure and decision-making policies**
The Directors, with the help of the Headteacher, are responsible for the overall direction of the school. The running of the school is the responsibility of the Headteacher, with the help of his Senior Leadership Team.
## **d. Policies adopted for the induction and training of Trustees**
Suitable induction training is arranged for each new Director appointed.
## **e. Pay policy for key management personnel**
The Headteacher's pay and remuneration is set by the Chairman of the Governors, other Governors and advisors following appraisal. The rest of the Senior Leadership Team have their pay and remuneration recommended to the Pay Committee by the Headteacher following appraisals.
## **f. Related party relationships**
There are relationships with some of the Directors who have children in attendance at the school. School fees are charged to these Directors in line with all pupils on an arm's length basis.
## **g. Financial risk management**
The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 6
**Babington House School Limited (A company limited by guarantee)**
## **Trustees' report (continued) For the year ended 31 August 2025**
## **Plans for future periods**
The School looks to achieve a full Roll and has two form entry from Reception class through to Year 11.
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the charitable company 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 United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
## **Auditors**
The Trustees have appointed Kreston Reeves Audit LLP as auditor for the year ending 31st August 2025.
The auditors, Kreston Reeves Audit LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
**Mr C Turner**
Trustee Date:
Page 7
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Independent auditors' report to the Members of Babington House School Limited**
## **Opinion**
We have audited the financial statements of Babington House School Limited (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 8
**Babington House School Limited**
**(A company limited by guarantee)**
## **Independent auditors' report to the Members of Babington House School Limited (continued)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 9
**Babington House School Limited**
**(A company limited by guarantee)**
## **Independent auditors' report to the Members of Babington House School Limited (continued)**
## **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:
## _Capability of the audit in detecting irregularities, including fraud_
Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to safeguarding, health and safety, employment law, general data protection regulations and anti-bribery. 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 preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and 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 management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
- Assessment of identified fraud risk factors; and
- Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and
- Challenging assumptions and judgements made by management in its significant accounting estimates; and
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
- Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
- Reading minutes of meetings of those charged with governance; and
- Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
Page 10
**Babington House School Limited**
**(A company limited by guarantee)**
## **Independent auditors' report to the Members of Babington House School Limited (continued)**
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Graham Hunt BA FCA (Senior statutory auditor)**
for and on behalf of **Kreston Reeves Audit LLP** Statutory Auditor Horsham
Date:
Page 11
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Statement of financial activities (incorporating income and expenditure account) For the year ended 31 August 2025**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Investments
5
**Total income**
**Expenditure on:**
Charitable activities
6
Other expenditure
7
**Total expenditure**
**Net income**
Transfers between funds
17
**Net movement in funds**
9
**Reconciliation of funds:**
Total funds brought forward
17
Net movement in funds
**Total funds carried forward**
17|**Unrestricted**
**funds**
**2025**
**£**
**32,723**
**8,311,205**
**70,209**
**8,414,137**
**7,632,144**
**320,049**
**7,952,193**
**461,944**
**84,412**
**546,356**
**7,263,106**
**546,356**
**7,809,462**|**Restricted**
**funds**
**2025**
**£**
**100,506**
**-**
**-**
**100,506**
**16,094**
**-**
**16,094**
**84,412**
**(84,412)**
**-**
**-**
**-**
**-**|**Total**
**funds**
**2025**
**£**
**133,229**
**8,311,205**
**70,209**
**8,514,643**
**7,648,238**
**320,049**
**7,968,287**
**546,356**
**-**
**546,356**
**7,263,106**
**546,356**
**7,809,462**|Total
funds
2024
£
7,102
8,139,048
66,763
8,212,913
7,453,756
(53)
7,453,703
759,210
-
759,210
6,503,896
759,210
7,263,106|
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 15 to 31 form part of these financial statements.
Page 12
**Babington House School Limited**
## **(A company limited by guarantee) Registered number: 00610514**
## **Balance sheet As at 31 August 2025**
|**Note**
**Fixed assets**
Tangible assets
13
**Current assets**
Debtors
14
Cash at bank and in hand
21
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
16
**Total net assets**
**Charity funds**
Designated funds
17
General funds
17
Total unrestricted funds
17
**Total funds**|**304,906**
**2,258,546**
**2,563,452**
**(1,998,445)**
**-**
**7,809,462**|**2025**
**£**
**8,930,775**
**8,930,775**
**565,007**
**9,495,782**
**(1,686,320)**
**7,809,462**
**7,809,462**
**7,809,462**|190,016
2,221,282
2,411,298
(1,748,081)
2,654,181
4,608,925|2024
£
8,951,780
8,951,780
663,217
9,614,997
(2,351,891)
7,263,106
7,263,106
7,263,106|
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................ **Mr C Turner** Trustee Date:
The notes on pages 15 to 31 form part of these financial statements.
Page 13
**Babington House School Limited (A company limited by guarantee)**
|**Statement of cash flows**
**For the year ended 31 August 2025**
**Note**
**Cash flows from operating activities**
Net cash used in operating activities
20
**Cash flows from investing activities**
Dividends, interest and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
Repayments of borrowing
Interest paid
**Net cash used in financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
21
**Cash and cash equivalents at the end of the year**
21
The notes on pages 15 to 31 form part of these financial statements|**2025**
**£**
**1,073,198**
**70,209**
**-**
**(599,148)**
**(528,939)**
**(436,987)**
**(70,008)**
**(506,995)**
**37,264**
**2,221,282**
**2,258,546**|2024
£
1,936,498
66,763
4,962
(635,852)
**(564,127)**
(236,807)
(91,150)
**(327,957)**
**1,044,414**
1,176,868
2,221,282|
|---|---|---|
Page 14
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **1. General information**
Babington House School Limited is a charitable company limited by guarantee and registered in England and Wales, registration number 00610514, and registered charity number 307914. The registered office is Babington House School, Grange Drive, Chislehurst, Kent, BR7 5ES.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Babington House School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
## **2.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Income**
All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
School fees receivable are charges billed for services for the school year ended 31 August, less applicable discounts and bursaries, and are reported net of applicable VAT. Fees received for education for future years are carried forward as deferred income.
Investment income is recognised on receipt.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to
Page 15
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **2. Accounting policies (continued)**
## **2.4 Expenditure (continued)**
more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives, as well as any associated support costs.
Any VAT which cannot be recovered is included within expenditure.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
Land - not depreciated - Freehold property 2% straight-line - Building enhancements 5% straight-line - Fixtures and fittings 25-33% straight-line - Computer equipment 33% straight-line
Assets under construction and certain additions to freehold land and buildings are not depreciated until they are brought into use.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.
## **2.6 Impairment of fixed assets**
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **2.7 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.8 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 16
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **2. Accounting policies (continued)**
## **2.9 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Deposits are all classed as potentially repayable within one year.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.10 Financial instruments**
The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transactionprice 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Page 17
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **2. Accounting policies (continued)**
## **2.10 Financial instruments (continued)**
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled.
## **2.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2.12 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.
## **2.13 Pensions**
The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2.14 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 18
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **3. Income from donations and legacies**
|**Unrestricted**
**funds**
**2025**
**£**
Donations
32,723
Total 2024
7,102|**Restricted**
**funds**
**2025**
**£**
100,506
-|**Total**
**funds**
**2025**
**£**
**133,229**
7,102|Total
funds
2024
£
7,102|
|---|---|---|---|
|||||
## **4. Income from charitable activities**
|**Unrestricted**
**funds**
**2025**
**£**
Net fees
7,996,028
Disbursements
136,784
Registration fees
24,250
Other income
154,143
8,311,205
Total 2024
8,139,048
**Net fees**
Gross fees
Bursaries and scholarships
Discounts|**Total**
**funds**
**2025**
**£**
**7,996,028**
**136,784**
**24,250**
**154,143**
**8,311,205**
8,139,048
**2025**
**£**
**8,496,453**
**(212,524)**
**(287,901)**
**7,996,028**|Total
funds
2024
£
7,707,079
333,725
20,700
77,544|
|---|---|---|
|||8,139,048|
|||2024
£
8,268,958
(278,992)
(282,887)|
|||7,707,079|
Page 19
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **5. Investment income**
|**Unrestricted**
**funds**
**2025**
**£**
Interest receivable
70,209
Total 2024
66,763|**Total**
**funds**
**2025**
**£**
**70,209**
66,763|Total
funds
2024
£
66,763|
|---|---|---|
||||
## **6. Analysis of expenditure on charitable activities Summary by fund type**
|**Unrestricted**
**funds**
**2025**
**Restricted**
**funds**
**2025**
**£**
**£**
Provision of education
7,632,144
16,094
Total 2024
7,453,756
-
**Other expenditure**
**Unrestricted**
**funds**
**2025**
**£**
Loss/(gain) on disposal of fixed assets
320,049
Total 2024
(53)|**Total**
**2025**
**£**
**7,648,238**
7,453,756
**Total**
**funds**
**2025**
**£**
**320,049**
(53)|Total
2024
£
7,453,756|
|---|---|---|
|||Total
funds
2024
£
(53|
||||
## **7. Other expenditure**
The loss on disposal of fixed assets during the year of £320,049 relates to the write off of assets under construction following the rejection by Bromley Council of the planning application and appeal.
Page 20
**Babington House School Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **8. Analysis of expenditure by activities**
|Provision of education
Total 2024|**Activities**
**undertaken**
**directly**
**2025**
**£**
4,231,851
4,117,974|**Support**
**costs**
**2025**
**£**
3,416,387
3,335,782|**Total**
**funds**
**2025**
**£**
**7,648,238**
7,453,756|Total
funds
2024
£
7,453,756|
|---|---|---|---|---|
||||||
## **Analysis of direct costs**
|Staff costs
Examination fees
Education requisites
School trips
Non-payroll staff costs
Total 2024|**Provision of**
**education**
**2025**
**£**
3,953,455
23,261
128,704
29,878
96,553
4,231,851
4,117,974|**Total**
**funds**
**2025**
**£**
**3,953,455**
**23,261**
**128,704**
**29,878**
**96,553**
**4,231,851**
4,117,974|Total
funds
2024
£
3,731,213
21,073
117,963
179,992
67,733|
|---|---|---|---|
||||4,117,974|
|||||
Page 21
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Depreciation
Legal and professional fees
Advertising
Catering
Utility charges
Motor and travel costs
Printing, postage and stationery
Debt collection costs
Staff training and recruitment
Telephone
Computer costs
Bad debt cost
School activities
Premises
Insurance
Interest
Other
Charitable donations
Governance costs
Total 2024|**Provision of**
**education**
**2025**
**£**
1,369,885
300,104
119,637
81,621
384,322
72,212
112,101
36,938
13,886
57,209
22,613
170,771
2,671
92,573
396,484
47,272
70,008
46,048
120
19,912
3,416,387
3,335,782|**Total**
**funds**
**2025**
**£**
**1,369,885**
**300,104**
**119,637**
**81,621**
**384,322**
**72,212**
**112,101**
**36,938**
**13,886**
**57,209**
**22,613**
**170,771**
**2,671**
**92,573**
**396,484**
**47,272**
**70,008**
**46,048**
**120**
**19,912**
**3,416,387**
3,335,782|Total
funds
2024
£
1,133,462
333,747
124,959
94,070
356,055
78,574
183,663
85,814
16,545
72,729
26,341
150,452
22,897
125,693
341,951
44,320
91,150
40,472
108
12,780|
|---|---|---|---|
||||3,335,782|
|||||
Governance costs includes audit fees of £14,250 (2024 - £9,900) and non-audit fees of £2,500 (2024: £2,880). The non-audit fees for 2025 are payable to a fellow group entity of Kreston Reeves Audit LLP.
Page 22
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **9. Net movement in funds**
||**2025**|2024|
|---|---|---|
||**£**|£|
|The net movement in funds is stated after charging/(crediting):|||
|Fees payable for the audit of the charity's financial statements|**14,250**|12,780|
|Depreciation of owned tangible fixed assets|**300,104**|333,747|
|Loss/(profit) on disposal of tangible fixed assets|**320,049**|(53)|
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2025**
**£**
**4,150,654**
**463,906**
**708,780**
**5,323,340**|2024
£
3,834,727
382,903
647,045|
|---|---|---|
||||
|||4,864,675|
The average number of persons employed by the charitable company during the year was as follows:
|Teaching staff
Classroom support
Administration|**2025**
**No.**
**54**
**70**
**19**
**143**|2024
No.
54
52
19|
|---|---|---|
||||
|||125|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2025**|2024|
|---|---|---|
||**No.**|No.|
|In the band £60,001 - £70,000|**2**|3|
|In the band £80,001 - £90,000|**3**|3|
|In the band £110,001 - £120,000|**1**|-|
|In the band £130,001 - £140,000|**-**|1|
The key management personnel of the charitable company comprise the Headmaster, Interim Headmaster (2025 only), Bursar, Head of Seniors, Head of Prep, Designated Safeguarding Lead, Director of Studies and Deputy Head of Prep. The total employee benefits including employer's national insurance and pension costs of the key management personnel were £732,359 (2024: £531,213).
Page 23
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2024 - £NIL).
During the year, no Trustee expenses have been incurred (2024 - £NIL).
## **12. Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
## **13. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2024
Additions
Disposals
Transfers between classes
At 31 August 2025
**Depreciation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
At 31 August 2024|**Freehold**
**land and**
**buildings**
**Assets**
**under**
**construction**
**£**
**£**
**9,078,414**
**318,654**
**309,356**
**15,967**
**-**
**(320,049)**
**14,572**
**(14,572)**
**9,402,342**
**-**
**725,835**
**-**
**136,877**
**-**
**862,712**
**-**
**8,539,630**
**-**
8,352,579
318,654|**Fixtures and**
**fittings**
**£**
**801,092**
**167,481**
**-**
**-**
**968,573**
**673,353**
**61,156**
**734,509**
**234,064**
127,739|**Computer**
**equipment**
**£**
**580,559**
**106,344**
**-**
**-**
**686,903**
**427,751**
**102,071**
**529,822**
**157,081**
152,808|**Total**
**£**
**10,778,719**
**599,148**
**(320,049)**
**-**
**11,057,818**
**1,826,939**
**300,104**
**2,127,043**
**8,930,775**
8,951,780|
|---|---|---|---|---|
Included in freehold land and buildings is freehold land at a deemed cost of £2,325,000 (2024 - £2,325,000), which is not depreciated.
Page 24
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **14. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
**Creditors: Amounts falling due within one year**
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2024
Resources deferred during the year
Amounts released from previous periods|**2025**
**£**
**73,084**
**170,819**
**61,003**
**304,906**
**2025**
**£**
**133,982**
**227,112**
**115,318**
**653,403**
**868,630**
**1,998,445**
**2025**
**£**
**1,224,671**
**956,306**
**(1,224,671)**
**956,306**|2024
£
70,108
26,606
93,302
190,016
2024
£
127,133
148,179
88,131
480,443
904,195
1,748,081
2024
£
359,129
1,185,371
(319,829)
1,224,671|
|---|---|---|
## **15. Creditors: Amounts falling due within one year**
Income has been deferred in respect of school fee income, extra-curricular activity income and school trip income received relating to future financial years.
Page 25
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **16. Creditors: Amounts falling due after more than one year**
|Bank loans
Accruals and deferred income
Included within the above are amounts falling due as follows:
**Between one and two years**
Bank loans
**Between two and five years**
Bank loans
**Over five years**
Bank loans|**2025**
**£**
**1,561,211**
**125,109**
**1,686,320**
**2025**
**£**
**149,974**
**473,439**
**937,798**|2024
£
2,005,047
346,844|
|---|---|---|
||||
|||2,351,891|
|||2024
£
159,914|
|||539,327|
|||1,305,806|
The loan balance comprises one loan (2024: two loans) from Lloyds Bank plc.
The first loan was taken out in March 2021. The loan is secured by a legal charge over the freehold land and buildings and by a debenture over the assets of the charitable company. The loan is being repaid in monthly installments with interest charged at 3.45% for the first 60 months, then at 2.45% above the base rate for the remainder of the loan period. The loan is repayable over 15 years from the first drawdown.
The second loan was taken out in March 2021. The loan was secured by a legal charge over the freehold land and buildings and by debenture over the assets of the charitable company. The loan was being repaid in monthly installments with interest charged at 2.45% above the base rate, over a period of 168 months. The loan was fully repaid in the year.
Page 26
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **17. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Building fund
Old Babingtonians
**General funds**
General funds
**Total Unrestricted funds**
**Restricted funds**
BHSFA donations
**Total of funds**|**Balance at 1**
**September**
**2024**
**£**
**2,596,908**
**57,273**
**2,654,181**
**4,608,925**
**7,263,106**
**-**
**7,263,106**|**Income**
**£**
**-**
**-**
**-**
**8,414,137**
**8,414,137**
**100,506**
**8,514,643**|**Expenditure**
**£**
**-**
**-**
**-**
**(7,952,193)**
**(7,952,193)**
**(16,094)**
**(7,968,287)**|**Transfers**
**in/out**
**£**
**(2,596,908)**
**(57,273)**
**(2,654,181)**
**2,738,593**
**84,412**
**(84,412)**
**-**|**Balance at**
**31 August**
**2025**
**£**
**-**
**-**|
|---|---|---|---|---|---|
||||||**-**|
||||||**7,809,462**|
||||||**7,809,462**|
||||||**-**|
||||||**7,809,462**|
Designated funds represent amount set aside for the upkeep and improvement of the school building.
At the year end, the designated funds were transferred to general funds as all amounts have been applied for their designated purpose and are now included within the cost of tangible fixed assets held as unrestricted funds.
Restricted funds represents monies received from Babington House School Fundraising Association (BHSFA) towards specific projects. Transfers out represent amounts spent on tangible fixed assets held as unrestricted funds.
Page 27
**Babington House School Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
## **17. Statement of funds (continued)**
**Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Building fund
Old Babingtonians
**General funds**
General funds
**Total Unrestricted funds**|Balance at
1 September
2023
£
2,596,908
57,273
2,654,181
3,849,715
6,503,896|Income
£
-
-
-
8,212,913
8,212,913|Expenditure
£
-
-
-
(7,453,703)
(7,453,703)|Balance at
31 August
2024
£
2,596,908
57,273|
|---|---|---|---|---|
|||||2,654,181|
|||||4,608,925|
|||||7,263,106|
## **18. Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Restricted funds|**Balance at 1**
**September**
**2024**
**£**
**2,654,181**
**4,608,925**
**-**
**7,263,106**|**Income**
**£**
**-**
**8,414,137**
**100,506**
**8,514,643**|**Expenditure**
**£**
**-**
**(7,952,193)**
**(16,094)**
**(7,968,287)**|**Transfers**
**in/out**
**£**
**(2,654,181)**
**2,738,593**
**(84,412)**
**-**|**Balance at**
**31 August**
**2025**
**£**
**-**
**7,809,462**
**-**|
|---|---|---|---|---|---|
||||||**7,809,462**|
Page 28
**Babington House School Limited**
**(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 August 2025**
**18. Summary of funds (continued)**
## **Summary of funds - prior year**
|Balance at
1 September
2023
£
Designated funds
2,654,181
General funds
3,849,715
6,503,896
**19.**
**Analysis of net assets between funds**
**Analysis of net assets between funds - current year**
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Income
£
Expenditure
£
-
-
8,212,913
(7,453,703)
8,212,913
(7,453,703)
**Unrestricted**
**funds**
**2025**
**£**
8,930,775
2,563,452
(1,998,445)
(1,686,320)
7,809,462
Unrestricted
funds
2024
£
8,951,780
2,411,298
(1,748,081)
(2,351,891)
7,263,106|Balance at
31 August
2024
£
2,654,181
4,608,925
7,263,106
**Total**
**funds**
**2025**
**£**
**8,930,775**
**2,563,452**
**(1,998,445)**
**(1,686,320)**
**7,809,462**
Total
funds
2024
£
8,951,780
2,411,298
(1,748,081)
(2,351,891)
7,263,106|
|---|---|---|
Page 29
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Dividends, interest and rents from investments
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Increase/(decrease) in deferred income
Interest payable
**Net cash provided by operating activities**
**21.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**22.**
**Analysis of changes in net debt**
**At 1**
**September**
**2024**
**Cash flows**
**£**
**£**
Cash at bank and in hand
**2,221,282**
**37,264**
Debt due within 1 year
**(127,133)**
**127,133**
Debt due after 1 year
**(2,005,047)**
**309,854**
**89,102**
**474,251**|**2025**
2024
**£**
£
**546,356**
759,210
**300,104**
333,747
**(70,209)**
(66,763)
**320,049**
(53)
**(114,890)**
38,531
**290,128**
(84,866)
**(268,348)**
865,542
**70,008**
91,150
**1,073,198**
1,936,498
**2025**
2024
**£**
£
**2,258,546**
2,221,282
**2,258,546**
2,221,282
**Other non-**
**cash**
**changes**
**At 31**
**August 2025**
**£**
**£**
**-**
**2,258,546**
**(133,982)**
**(133,982)**
**133,982**
**(1,561,211)**
**-**
**563,353**|
|---|---|
Page 30
**Babington House School Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 August 2025**
## **23. Pension commitments**
## _Teachers' pension scheme_
The charitable company participates in the Teachers' Pension Scheme (England and Wales) (the "TPS") for certain of its teaching staff. The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pensions Regulations 2010 and, from 1 April 2014, the Teachers' Pension Scheme Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The contribution rate for the academic year 2024/25 was 28.68% (2023/24: 23.68%).
## _Defined contribution pension scheme_
The charitable company operates defined contribution pension schemes. The assets of the schemes are held separately from those of the charitable company in independently administered funds.
## _Pension charge_
The pension cost charge for the year comprises contributions payable by the charitable company to the TPS which amounted to £527,732 (2024: £558,105) and contributions payable to the defined contribution scheme of £181,048 (2024: £88,940). At the balance sheet date the amount payable to the schemes totalled £Nil (2024: £Nil).
## **24. Operating lease commitments**
## **Lessee**
At 31 August 2025 the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2025**
**£**
**95,338**
**366,960**
**1,284,236**
**1,746,534**|2024
£
96,829
262,272
426,428|
|---|---|---|
||||
|||785,529|
The following lease payments have been recognised as an expense in the statement of financial activities:
||**2025**|2024|
|---|---|---|
||**£**|£|
|Operating lease rentals|**95,338**|80,024|
## **25. Related party transactions**
The charitable company has not entered into any related party transactions during the year (2024: £Nil), nor are there any outstanding balances owing between related parties and the charitable company at 31 August 2025 (2024: £Nil).
Page 31