2025-08-31-accounts

Downe House Trust

Annual report and financial statements

for the year ended 31 August 2025

Registered Charity Number: 309091

Downe House Trust

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

Contents Pages Trustee and advisors Report of the Trustee 3 - 5 Independent auditor’s report 6 - 8 Statement of financial activities Balance sheet 10 Notes to the financial statements 11 - 17

Downe House Trust

1

Trustee and advisors

Trustee

Downe House School was the sole Trustee (a company limited by guarantee) through the year and at the date the financial statements were approved.

The Trustees, Governors and Directors of Downe House School on 4 December 2025 are:

Mrs SK McNair Scott (Chair) Mr TM Boucher Mr NJD Woods Mr JJ Smith Ms EJ Clarke Mr WJF Landale Mr ST Williams Mr MJ Brennan Mrs SE Coiley Mr JJ Farrell (appointed 4 December 2025) Mr WAM Chuter (appointed 4 December 2025) Mr MK Ridley (resigned 4 December 2025) Mrs VJ Richards (Exelby) (resigned 4 December 2025) Ms CE Ross (resigned 4 December 2025)

2

Downe House Trust

Ms CE Ross (resigned 4 December 2025)

Headmistress of Downe House School

Mrs E McKendrick BA

Secretary of Downe House School

Mr EFP Valletta

Address

Downe House School Downe House Hermitage Road Cold Ash Thatcham Berkshire RG18 9JJ

Independent Auditors

HaysMac LLP 10 Queen Street Place London EC4R 1AG

Solicitors

Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH

Bankers

Lloyds Bank plc 5 Bridge Street Newbury Berkshire RG14 5BQ

Downe House Trust

3

Report of the Trustee for the year ended 31 August 2025

The Trustee presents the annual report and the audited financial statements for the year ended 31 August 2025.

The information with respect to the Trustee and advisors set out on page 1 forms part of this report. The financial statements comply with the Statement of Recommended Practice “Accounting and Reporting by Charities (FRS 102)” (Second Edition).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status and Administration

The Trust was established as Downe House School by Trust Deed on 1 January 1944. On 2 August 1993, the Charity Commission approved a scheme whereby the operating activities of the School were transferred to Downe House School, a charitable company limited by guarantee, and the property used by the School was retained by the Trust, which changed its name to the Cold Ash Trust on that date. During the year ended 31 August 2001 the Trustee resolved to change the name of the Trust to Downe House Trust. The change of name was effected by the Charity Commission on 15 October 2001.

Induction and training of Trustees

All new Trustees of Downe House School undertake an induction process the detailed content of which depends on the individual's knowledge of the School and professional experience. Trustees are encouraged to attend seminars arranged by AGBIS (Association of Governing Bodies of Independent Schools) and other such bodies.

The Trustees, Organisational Structure and decision making

The sole Trustee is Downe House School, a company limited by guarantee. The strategic direction of the Trust is set by the Trustees of Downe House School (“the Governing Body”) who approve the plans and budgets presented by the Headmistress and management team. The day to day running of the Trust is delegated to the Headmistress and management team of Downe House School.

The Trustees of Downe House School have a number of committees of which the most significant to the Downe House Trust are:

Finance and General Purposes Committee

The members of this Committee meet at least three times a year to submit reports and recommendations to the Board of Trustees on the following matters:

• i. To formulate business plans and annual budgets, in accordance with the School’s aims and objectives, for consideration by the Board of Trustees and to monitor their execution once approved.

• ii. To recommend an annual programme of capital expenditure to the Board of Trustees.

• iii. To recommend the level of fees for the forthcoming year to the Board of Trustees.

• iv. To determine appropriate financial controls and procedures.

• v. To propose policy objectives to the Board of Trustees on:

• a. Charging and fee remissions

• b. Salaries

• c. Bursaries

• d. Contracts

• e. Investments

Downe House Trust

4

Report of the Trustee for the year ended 31 August 2025 (continued)

Estates Sub-Committee

The members of this Sub-Committee meet at least three times a year to submit reports and recommendations to the Board of Trustees and/or the Finance and General Purposes Committee on the following matters:

• i. The overall development of the School’s buildings and properties.

• ii. The planning, design and management of current and future construction projects.

• iii. The annual maintenance and improvement programme for the School’s buildings, including Health and Safety issues.

• iv. Any other buildings or property related matters referred to the Sub-Committee by the Board of Governors or the Finance and General Purposes Committee.

Related parties and connected organisations

The Trust’s relationship with Downe House School is disclosed above.

Risk Assessment

In the light of the Corporate Governance guidance contained within the Statement of Recommended Practice “Accounting and Reporting by Charities (FRS 102)” (Second Edition) the Trustee has examined the major risks faced by the Trust. A system of controls has been put in place to monitor and mitigate, where possible, the major risks identified and their impact on the Trust. Risks are identified and assessed and controls are established throughout the year. A formal review of the Trust’s risk management process is undertaken on a termly basis.

OBJECTIVES AND ACTIVITIES

Object

The object of the Downe House Trust is the provision and conduct at or near Cold Ash, near Newbury, of a day or day and boarding school for girls.

Aims, objectives and strategy for the year

The Trust provides, and intends to continue to provide, the 110 acre site and properties used by Downe House School.

The Trust seeks to demonstrate the full Public Benefit that it provides, having regard to the general guidance on Public Benefit from the Charity Commission and where possible enhance that benefit. Further details are disclosed in the Annual report and financial statements of Downe House School.

Downe House Trust

5

Report of the Trustee for the year ended 31 August 2025 (continued)

ACHIEVEMENTS AND PERFORMANCE

Review

The Trust continues to provide the properties used by Downe House School.

The Downe House Trust 21st Century Appeal was launched in October 2001. The aim of the Appeal was to raise money for a number of capital projects. Following completion of the construction of the Sports Pavilion in April 2003, construction of the Performing Arts Centre was completed in August 2004. Construction of an all-weather pitch was commenced in June 2008 and was completed in November 2008. For details of the income received by the Appeal fund during the year and the year end fund balances see note 8. During the year the Appeal fund received donations of £220 (2024: £220), in line with expectations. Major fundraising is now undertaken by the Downe House Foundation, charity number 1159259.

The buildings strategy of the Trust is monitored by the Estates Sub-Committee of Downe House School and the Finance and General Purposes Committee of Downe House School.

The Trustees of Downe House School consider a wide range of factors that may affect the achievement of the Trust’s objectives as part of their risk assessment procedures described on page 3. Some of these factors such as economic conditions, the Charities Act 2011 and other legislation are outside the control of the Trust.

Investment Performance

Investment performance is reviewed regularly and investments have performed adequately in the year. The Trustee has revalued the investment assets at the year end to market value, increasing net assets by £Nil (2024: £Nil).

FINANCIAL REVIEW

Investment Powers and Policy

The Trust has the powers to invest in its own name and to delegate these powers to professional investment managers. Investments are held to create income and capital growth pending utilisation on specific objects or to match liabilities as appropriate.

Reserves policy

The Trust’s tangible assets are all held for use by the School. Investments are held to create income and capital growth pending utilisation on specific objects or to match liabilities as appropriate. As described in note 9 the Trust’s unrestricted reserves are fully represented by tangible fixed assets and associated liabilities. There are no free funds beyond the extent of these assets and commitments. The Trustee considers that the existing level of reserves is appropriate for the needs of the Trust. This policy is reviewed at least annually.

Funds summary at 31 August (note 9):

Total funds £10,285,000 (2024: £12,273,000) Restricted funds £426,000 (2024: £478,000) Unrestricted funds £9,859,000 (2024: £11,795,000)

Financial results

Full results are shown in the financial statements and notes thereto on pages 9 to 17. The net outgoing resources for the year were £1,988,000 (2024: £2,435,000). Total income was £646,000 (2024: £647,000). Total expenditure was £2,634,000 (2024: £3,082,000).

Downe House Trust

6

Report of the Trustee for the year ended 31 August 2025 (continued)

Going Concern

Downe House School, the Trustee, has a clear understanding of the strategy and business plan of the Trust, including the Trust’s projected funding requirements for at least the next 12 months. Downe House School will not seek the repayment of amounts advanced to the Trust by the School unless adequate alternative financing has been secured by the Trust.

PLANS FOR FUTURE PERIODS

The Trust intends to provide the site and properties used by Downe House School.

TRUSTEE’S RESPONSIBILITIES STATEMENT

The Trustee is responsible for preparing the Trustee’s Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year. Under that law the Trustee has prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under that law the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these financial statements, the Trustee is required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

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

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

The Trustee is responsible for keeping accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision of the trust deed. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement on disclosure of information to the auditors

So far as the Trustee is aware, there is no relevant audit information of which the charity’s auditors are unaware.

The Trustee has taken all the steps (such as making enquiries of the auditors and any other steps required by the Trustee's duty to exercise due care, skill and diligence) that it ought to have taken in its duty as a Trustee in order to make it aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Independent Auditors

The auditors, HaysMac LLP, have indicated their willingness to continue in office and a resolution concerning their appointment will be proposed at the Annual General Meeting.

Signed on behalf of the Trustee, Downe House School

Tim Boucher

TM Boucher

Trustee 4 December 2025

Downe House Trust

7

Independent auditor’s report to the members of Downe House Trust

Opinion

We have audited the financial statements of Downe House Trust for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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 charity’s affairs as at 31 August 2025 and of the charity’s net movement in funds 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 Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustee. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Downe House Trust

8

Independent auditor’s report to the members of Downe House Trust (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charity; or

• sufficient accounting records have not been kept; or

• the charity financial statements are not in agreement with the accounting records and returns; or

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Health and Safety and Charity Law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Charities SORP.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

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

• Evaluating management's controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their accounting estimates.

Downe House Trust

9

Independent auditor’s report to the members of Downe House Trust (continued)

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee 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 charity’s trustee as a body for our audit work, for this report, or for the opinions we have formed.

HaysMac LLP, Statutory Auditor 10 Queen Street Place London EC4R 1AG 11/12/2025

HaysMac LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

10

Downe House Trust

Statement of financial activities for the year ended 31 August 2025

		Unrestricted	Restricted	Total	Total
		funds	funds	2025	2024
	Note	£’000	£’000	£’000	£’000
Income from
Donations and Legacies		-	-	-	1
Income from charitable activities
PropertyRental		646	-	646	646
Total Income		646	-	646	647
Expenditure on Charitable activities
Premises - depreciation		(1,025)	(52)	(1,077)	(1,034)
Financing costs	2	(1,553)	-	(1,553)	(2,044)
Governance costs	3	(4)	-	(4)	(4)
Total expenditure		(2,582)	(52)	(2,634)	(3,082)
Net expenditure		(1,936)	(52)	(1,988)	(2,435)
Advance written off by Downe House
School		-	-	-	15,000
Net movement in funds		(1,936)	(52)	(1,988)	12,565
Total funds brought forward	9	11,795	478	12,273	(292)
Total funds carried forward	9	9,859	426	10,285	12,273

All amounts derive from continuing activities.

All gains and losses recognised in the year are included in the statement of financial activities.

There is no difference between the net movement in funds stated above and its historical cost equivalent.

11

Downe House Trust

Balance Sheet as at 31 August 2025

	Note	2025	2024
		£’000	£’000
Fixed assets
Tangible assets	4	26,127	27,252
		26,127	27,252
Current Assets
Debtors	5	13,671	12,379
Investments	6	11	11
Cash at bank and in hand		2	719
		13,684	13,109
Creditors:amounts falling due within one year	7	(27,660)	(26,222)
Net current liabilities		(13,976)	(13,113)
Total assets less current liabilities		12,172	14,139
Creditors:amounts falling due after more than one
year	8	(1,866)	(1,866)
Net assets /(liabilities)		10,285	12,273
Represented by:
Restricted funds	9	426	478
Unrestricted funds	9	9,859	11,795
		10,285	12,273

and signed on behalf of the Trustee, Downe House School, by:

Tim Boucher

TM Boucher Trustee

Downe House Trust

12

Notes to the financial statements for the year ended 31 August 2025

1. Principal accounting policies

The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom including Financial Reporting Standard 102 (FRS 102) and the Charities Act 2011. In preparing the financial statements the Trust has followed best practice as set out in the Statement of Recommended Practice “Accounting and Reporting by Charities (FRS 102)” (Second Edition). The Trust is a Public Benefit Entity. A summary of the more important accounting policies of the Trust, which have been applied consistently, is set out below.

Basis of accounting

The financial statements have been prepared on a going concern and accruals basis under the historical cost convention modified by the revaluation of investments. The functional and presentational currency is £ Sterling. The Trustee considers it appropriate to adopt the going concern basis and has not identified any material uncertainties in the period of at least 12 months from the date of approval of the financial statements. After making enquiries the Trustee has a reasonable expectation that the Trust has adequate resources to continue in operation for the foreseeable future. A letter of support has been provided by Downe House School for the period of 12 months from the date of signing these financial statements. The exemption under s1.12 of FRS 102 has been taken not to disclose full details of the Company’s financial instruments as these details are included within the consolidated financial statements of Downe House School.

Fund accounting

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

Restricted funds are funds subject to specific conditions imposed by the donors.

Property rental

The Trust owns property used by Downe House School for which it received rental payments of £646,000 (2024: £646,000) for the year. Income is recognised on a receivable basis.

Voluntary income

All voluntary income comprises donations which are shown in the Statement of Financial Activities and are accounted for on a receivable basis.

Gains on disposal of fixed assets

On disposal of tangible fixed assets, the profit or loss on disposal is accounted for as the difference between the net sale proceeds and the net carrying amount of the tangible fixed asset. The profit or loss on disposal of tangible fixed assets is recognised in the Statement of Financial Activities for the year in which the disposal occurs.

Expenditure

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.

Overhead and other costs not directly attributable to particular functional categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, by reference to the level of costs in the functional categories.

Downe House Trust

13

Notes to the financial statements for the year ended 31 August 2025 (continued)

1. Principal accounting policies (continued)

Governance costs comprise the costs of complying with constitutional and statutory requirements such as the costs of Board and Committee meetings, external audit and any legal advice for the Trustee.

Tangible fixed assets and depreciation

Freehold land and buildings held on trust are included at cost. Land is not depreciated. Buildings are depreciated at rates calculated to write off the cost less their estimated residual values on a straight line basis over the expected useful economic life of each building. The range of annual rates used for this purpose is between 10 and 50 years. Assets with a cost below £1,000 are not capitalised.

Other tangible fixed assets are stated at cost, less accumulated depreciation, at rates calculated to write off the cost less residual value, of each asset over its expected useful life, as follows:

Equipment and furnishings 12.5% - straight line

Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Investments and investment income

Investments are stated at market value. Any gain or loss on revaluation is included in the statement of financial activities. Investment income is accounted for in the period in which the Trust is entitled to receipt.

Cash Flow Statement

The Trust does not prepare a cash flow statement as its cash flows are included in the cash flow statement of Downe House School.

Concessionary Loans

Public benefit entity concessionary loans are loans made or received between public benefit entities at below the prevailing market rate of interest and are for the purposes of furthering the objectives of the public benefit entity. The loans are measured at the amount received or paid and are recognised in the Statement of Financial Position.

Critical estimates or judgements

Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors including expectations of future events that are believed to be reasonable in the circumstances. The Trustee does not believe that critical judgements have been made that effect the financial statements.

2. Financing costs

	2025	2024
	£’000	£’000
Interest payable on loans and advances from parent undertaking	1,553	2,044

Downe House Trust

14

Notes to the financial statements for the year ended 31 August 2025 (continued)

3. Governance costs

	2025	2024
	£’000	£’000
Auditors’ remuneration for audit services (excluding VAT)	4	4

There were Nil employees (2024: Nil).

4. Tangible assets

	Freehold land	Equipment
	& buildings	& furnishings	Total
	£’000	£’000	£’000
Cost
1 September 2024	40,775	114	40,889
Additions	582	-	582
Adjustments	(630)	-	(630)
31 August 2025	40,727	114	40,841
Accumulated depreciation
1 September 2024	13,523	114	13,637
Charge for the year	1,077	-	1,077
31 August 2025	14,600	114	14,714
Net book value
31 August 2025	26,127	-	26,127
31 August 2024	27,252	-	27,252

Included in freehold land and buildings is land at a cost of £92,473 (2024: £92,473) which is not depreciated.

5. Debtors

	2025	2024
	£’000	£’000
Concessionary loan to parent undertaking	13,671	12,379

This amount is treated as a concessionary loan is unsecured, interest free and repayable on demand.

Downe House Trust

15

Notes to the financial statements for the year ended 31 August 2025 (continued)

6. Investments

	Restricted	Total
	fund	fund
	£’000	£’000
Market value
1 September 2024	11	11
Additions at cost	-	-
31 August 2025	11	11
Cash and short-term deposits	11	11
Historical cost
31 August 2025	11	11
31 August 2024	11	11

7. Creditors: amounts falling due within one year

	2025	2024
	£’000	£’000
Advance from parent undertaking	27,656	26,143
Other creditors and accruals	4	79
	27,660	26,222

Interest is payable to the Trust’s parent undertaking, on the amount due within one year at the rate of 1% over bank base rate. Advances from the parent undertaking are unsecured and repayable on demand and are treated as concessionary loans. In order to strengthen the balance sheet of the Downe House Trust, during the prior year £15,000,000 of the amount due from Downe House Trust was written off by Downe House School.

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

	2025	2024
	£’000	£’000
Amounts owed to parent undertaking	1,866	1,866

Interest is payable to the Trust’s parent undertaking, on loan advances due after more than one year in excess of £866,000 at the rate of 1% over bank base rate. No interest is paid on the remaining loan advances due after more than one year of £866,000. Advances from the parent undertaking are unsecured and are treated as concessionary loans.

Downe House Trust

16

Notes to the financial statements for the year ended 31 August 2025 (continued)

9. Funds

	Restricted	Unrestricted	Total
	funds	funds	funds
	£’000	£’000	£’000
1 September 2024	478	11,795	12,273
Incoming resources	-	646	646
Resources expended	(52)	(2,582)	(2,634)
31 August 2025	426	9,859	10,285
Represented by:
Tangible fixed assets	615	25,512	26,127
Investments	11	-	11
Net current liabilities	(200)	(13,787)	(13,987)
Long-term liabilities	-	(1,866)	(1,866)
31 August 2025	426	9,859	10,285
	Restricted	Unrestricted	Total
	funds	funds	funds
	£’000	£’000	£’000
1 September 2023	529	(821)	(292)
Incoming resources	1	15,646	15,647
Resources expended	(52)	(3,030)	(3,082)
31 August 2024	478	11,795	12,273
Represented by:
Tangible fixed assets	467	26,785	27,252
Investments	11	-	11
Net current liabilities	-	(13,124)	(13,124)
Long-term liabilities	-	(1,866)	(1,866)
31 August 2024	478	11,795	12,273

The restricted funds relate to three historic building projects.

10. Contingent liabilities

The Trust has guaranteed the bank borrowings of its parent undertaking, sole Trustee and controlling party, Downe House School, up to a maximum of £6,000,000 (2024: £6,000,000) and has given a legal charge over each of the freehold properties of the Trust. At 31 August 2025 the amount of the bank borrowing subject to the guarantee was £Nil (2024: £Nil).

Downe House Trust

17

Notes to the financial statements for the year ended 31 August 2025 (continued)

11. Taxation

The Trust is a registered charity and as such tax exemption applies to the income arising from and expended on charitable activities and to its investment income and gains. Investment income is stated inclusive of tax credits.

The Trust is registered for VAT and, where applicable, expenditure is recorded net of recoverable VAT.

12. Trustee

The Trustee receives no remuneration for its services or reimbursement of expenses. No other key management personnel are employed by the Trust.

13. Related party transactions

During the year the Trust received rental income of £646,000 (2024: £646,000) from Downe House School.

The Trust accrued interest on loans of £1,553,000 (2024: £2,044,000), and £590,000 for capital expenditure and other items (2024: £1,194,000) from Downe House School. Offsetting this in 2025 is the Capital Goods Scheme adjustment of £630,000.

The Trust made loans of £1,292,000 (2024: £nil) to Downe House School.

The net balance at 31 August with Downe House School was £15,851,000 net credit (2024: £15,630,000 net credit).

14. Ultimate parent undertaking and controlling party

Downe House School, a company limited by guarantee and registered in England and Wales, is the sole corporate Trustee and controlling party of the Downe House Trust. The Trust is managed by the Trustees of the School. Group consolidated financial statements are drawn up by the School. Copies of the School’s financial statements can be obtained from the Company Secretary, The Bursary, Downe House School, Cold Ash, Thatcham, Berkshire, RG18 9JJ.

Downe House Trust

18

Notes to the financial statements for the year ended 31 August 2025 (continued)

15. Comparative Statement of financial activities for the year ended 31 August 2024

	Unrestricted	Restricted	Total
	funds	funds	2024
	£’000	£’000	£’000
Income from
Donations and Legacies	-	1	1
Income from charitable activities
PropertyRental	646	-	646
Total Income	646	1	647
Expenditure on Charitable activities
Premises	(982)	(52)	(1,034)
Financing costs	(2,044)	-	(2,044)
Governance costs	(4)	-	(4)
Total expenditure	(3,030)	(52)	(3,082)
Net expenditure	(2,384)	(51)	(2,435)
Advance written off by Downe House
School	15,000	-	15,000
Net movement in funds	12,616	(51)	12,565
Total funds brought forward	(821)	529	(292)
Total funds carried forward	11,795	478	12,273