Registered number.. 00133676 Charity number.- 30911S THE ABBEY SCHOOL, READING IA Company Limited by Guarantee} ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 THE ABBEY SCHOOL, READING IA Company Limited by Guarantgel CONTENTS Pag8 Refer¢n¢e and Administrative Detalls of the Company Chairman's Statement Governors, Report Independent Auditors, Report Consolldated Statement of Financlal Aetlvities 5-16 17-20 21 Consolidated and charity balance sheets Company 8alance Sheet Consolldated Statement of Cash Flows 22-23 24-25 26 Notes fomiing part of the financial statèments 27-45 THE AB8EY SCHOOL, READING IA Company Limited by Guarantèe) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025 Govemors Mrs E A Harrison BA IHons} MBA1,2.3/4,5,7 Mrs J Butler FCA1.3.4 Mrs S Colebrook Bsc PGCE (resigned 31 August 2025)2,8 Mr S Dimmick LLB3.4,6 Mr M Emmanuel (resigned 2 Deeember 202411 Ms R Field BA2 Ms J Jolly 2 Dr H Kemp BM Bch Msc PhD FRCA9 MrA Pgach4 Mr N Burrows lappoinlerl 23 September 202413 Mr C Singer Bsc FIAI.4 Mrs E Wesl LLB2 Mr R Brown Bsc (Honsl ACA lappointed 23 September 202411 Mr H Maclennan MA lappointed 23 September 202412 Mr K Thiruppalhy FRCS {ENGI, MPhil, MS. MBA, 8Sc {Honsl Iresiyned 2 December 2024} Member of the Finan￿ and General PurpDSes Committee Member of the Education Committee Member of the Governance Commirtee Member of the Transition working group Lead GovernoT for Marketing, Admission. Development and Engagement Lead Governor for Risk. Audit, and Compliance Lead Governor for Human Resources 8 Lead Goveinor for Child Protection g Lead Goveinor fof Health & Safety Nominae mambers of tha Council The Bishop of Oxford- Vacancy Th& Governors are also Directors of the Cornpany and Trustee5 of the Charity. OFFICERS Head Dr Sarah Tullis MA. MLitl, DPhil Head of Junior School Mrs Beccy Newton BA Ihons) QTS NPQEL Head of Flnance and Resources Mrs Nadine Doble Bsc Icardifry. ACMA ADDRESSES Senior S¢hool 17 Kendrick Road Reading RG1 SDZ Junior School (Years 1-6} 30 Chrisl¢hurch Road Reading RG2 7AR Junior School (Nursery arbd Reception) 2 Vicaraue Road Reading RG2 7AJ Page 1 THE ABBEY SCHOOL, READING IA Company Limited by Guarantgel REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS GOVERNORS AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Company register number 00133876 Charity registered numbEr 30911S Registered oftice 17 Kendrick Road Reading Berkshire RG1 5DZ Independ9nt auditors James Cowper Kreston Audit Chartered Accounlanls and Slalulory Auditors Apex Forbury Road Reading RG1 8LS 8ankefS HSBC UK Bank plc 26 Broad Street Reading RG128U Solicitors Blandy & Blandy LLP 1 Friar Street Reading RG1 1DA Investment advisers Charles Stanley & Comp?ny Ltd 55 Bishopsgale London EC2N 3AS Insurance brokers Marsh 8rokers Ltd School Division Capttal House I-S Perrymounl Road Ha￿ardS Heath, Wesl Sussex RH18 3SY Page 2 THE ABBEY SCHOOL, READING IA Ctsmpany Umited by Guaranteo) REPORT OF THE CHAIR OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2026 This has been a year of Challenge and change for The Abbey School. And challenge to which everyone in the school has responded characlerislically, with thoughtful enthusiasm, serious endeavour and delighL The year began with our search for a new Head for our whole school, in succession to Will le Fleming, whose generous offer to move to part lime leadership of the school for the year meant we were in a position to Sel up an innovative period of transition. We received a number of compelling applications and were delighted lo be able to appoint our Head ol the Senior School, Dr Sarah Tullis, lo the role. We were very sad lo lose Will le Fleming, who h85 moved lo be Founding Master of Thomas's College, but, os the year progfessed, we were able lo see what an excellent Head Sarah was to be. It was a surprise when Nisha Kaura dec￿ed to move to lake up the headship of Queen's College Preparatory School in central Lond(yn, but as with Will, we wished her well in her new role. And we wère delighted lo appoint Beccy New¢on as our new Head in our Junior School where she has made a brilliant start lo her new role. Like all independent schools, with some few exceptions in Ihe London area. a number of factors have affected our numbers this year.. the introduction 01200/0 VAT on school fees, falling birth rates, increase in energy costs and consequent pressure on family budgets are just Some of them. For the first lime we have had lo make some drfficull choices which led lo our decision lo slop offering the IB qualifications in the Sixlh Form and therefore to redesign our Senior curriculum. which is now based on A level study with Exlended Project Qualification {EPQI in addition and elemonts of service within our communities, shorter intense study, and the Duk& of Edinburgh award (where we have always been strongl. We have an exctting new programme which remains academically demanding and rewarding bul engages in a very contemporary manner with sluden15' own preferences. Our requirement therefore for fewer te2ching stsff, across the whole school, led lo a busy Spring term of consullalions and decisions to make sure we were staffed al the best possible level for our new currtculum and our revised number of students. Unsurprisingly, however, our other activities have gone from strength to strength. Our external academic results, at A level and at GCSE, remain ex￿lIent. Our students delight us, one another, their families. and oui community with their creativity, their musical talent, and their sporting prowess. And, as every year, we wish all our leavers well 0$ they move on to the next stage of their progress in higher education or in major apprentI￿ships. Our staff, in the elassrtsoms and in b¢Jsiness and operations, remain the strong foundations upon which the school depends. The enthusiasm with which they approach their role, the delight they take In our students. achievements, the way in which Ih&y really know all our girls and work with them lo ensuie all is well, all these Ihings aro exemplary. And behind the scenes our team of dedicated governors give generously ol their lime and their thinking lo ensure The Abbey face5 the future with strong ambition and delerminalion. We all face the same headwind5 but I know that many other schools look at The Abbey and envy Dur resilience, our imagination and our success. Two of our longest serving governors, Michael Emmanuel and Sue Colebrook, came to the end of their appointments this year. I thank them both profoundly for everything they contributed to the school they love. l am full of admiration for our senior leaders within the school. They have responded brilliantly to the challenges of the year and I l¢Jok forn￿ard lo wodfing w((h them all in the years ahead. The Abbey is in good hands. It ￿MainS a place where girls le8rn and grow. a place where they leam about themselves, about one another and where they learn how lo do more than they ever suspected they might. They learn how our Abbey values of courage. honesly and kindness thread through everything we do. They know that they are each valued for who they are now and for whalever journey they tske through lrfe. The students are our greatest asset and our best ambassadors and we lake huge piide in each one. Page 3 THE ABBEY SCHOOL. READING {A Company Lirnited by Guarantee) REPORT OF THE CHAIR OF THE GOVERNORS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Liz Harrison Chair of Governors The Abbey School Date.. Page 4 THE ABBEY SCHOOL. READING IA Company Limitèd by Guarantee) GOVERNORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2025 The Govemors of The Abbey School, Reading present their annual report for the year ended 31 August 2025 under the Companies Act 2006 and the Chartlies Act 2011. together with the audited accounts for the year, and confirm that the latter comply wrth the requirements of the Act, the Trust Deed and th8 Charities Stalem¢nl of Recommended Practice ISORP}. REFERENCE AND ADMINISTRATIVE INFORMATION The Abbey School, Reading is a Company Limited by Guarantee and was registered on 31 January 1914. The Company registration number is 133676. It is also a Charty, registration number 309115. The Governors. Officers, Key Addre85es and Advisers are set out on Pages 2 and 3. The company has a wholly owned subsidiary, Abbey Commercial Enterprises Limited. the School's trading arm. The school is an adive member of the Headmasters and Headmistresses Conference, the Girls, Schools Association, the Independent Association of Prep Schools. the Association of the Goveming Bodies of Independent Schools and the Independent Schools, Bursars Association. STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng Documgnt The School is governed by ils Memorandum and Articles of Association. dated 4 December 2006 as amended by special resolution dated 7 December 2015. Governing Body The Govemars are all Directors of the company and appoint new Govemors either to fill a casual vacancy or by way of additions lo the board. The total number of Governors shall be not less than twelve and not more than Iwenly-four. Of these, as far as is pradicable. one Governor shall be the nominee of The Bishop ol Oxford, one an alumna of the school. and one a parent of a child at the school. The nominee positions are T81ified at a full Governors, meeting. Each Governor, other than the nominees, is elected for four years and retiring Govemot5 can stand for re-election for Dne further lemi al the next Annual General Meeting, arEd al the Governors diserelion when the interests of the schoDI, this may be further extended. Those who held office during the year are listed on Page 2. Organisational management The membèis of the Governing Body are legally responsible for the overall management and control of the School. The Governing Body rneels al least three times a year. Much of the preparation for these meetings is undertaken by the Finall￿ and General Purposes Committee IF&GP Committee) which meets before each Governors. meeting. The Chairman of the F&GP Committee is Mrs J Butler. The other principal committees are-. Education Committee chaired during the year by Mrs S Coletsrook, Governance Committee chaired during the year by Mr S Dimmick In addition to thes@ committees there are working groups on Engagement & Development and Leadership Transition, and Governors support the school by taking the lead on Risk, Auclit and Compliance I'RAC'}, Child Protection and Safeguarding. Hurnan Resources and Health & Safety. Committee member5 and Lead Govemors are listed on Page 2. The day lo day running of the School is delegated lo the Head who is assisted in this by other members of the Leadership Committee. which comprises the Junior Schc)ol, Senior School and Business & Operations Leadership Team5. The Whole School Team. led by the Head, is drawn from these groups and cmrdinales Page 5 THE AB8EY SCHOOL, READING IA Company Limited by Guarant&el GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2025 Tnatter5 relating lo whole school development. Recrultment and Training of Govèrnors The Governance Committee Considers polenli81 new Governors for eligibility, competence. Sp￿•all$l skills and availability. New Governors are given an induction into the workings ol the School, ineluding its policies and prDceduTes, and are given a tailored induction pack. Training and bespoke courses are regularfy offered lo all Govemors. Corporate Governanco The Govorning Body is mindful of the principles and recommended practice sel out the Charity Governance Code for larger chanlies, and believes that il applies, much evidenced in this annual report. the specified principles of organisalional purpose, leadership, integrity, decision making, risk and eonlrol, board effectiveness. diversity, openness and accountability- A$ part of an oveoll approach to managing potential CO￿￿¢t8 of tnleresl, The Abbey has a Govemor conflict of inleiesl policy and al the start of each Governor meeting everyone in attendance is required tg declare any interest that rnay be in wnllicl with an agenda or decision item. Senior members of staff Tesponsible for decision making, including the appointment of staff Dr contracltsrs. are Co￿Sponding1Y required lo sign an anrsual declaration regarding potential conflicts of inlewsl. Risk Management The Governing Body is responsible for ensuring that the risks faced by the Charty are properly assessed. 11 is aware of the importance of protecting the business as far as possible frtsm operational and reputational damage, as well as from the Tisks of unpredictable crisis and disaster. Risks are examined each year when updating the Risk Register and in the process of slralegic planning. The generic key conlrgls used by the Sohool lo manage risk include". Annual review of the Risk Reg1Ster, in detail by the lead Governor on Risk Audit and Compliance. and rèviewed by Council Formal agendas and minutes lo support decisions on all Committee and Governing Body aclivil¢es Terms of Reference for all Commillees Comprehensive strategic planning, budgeting and management accounting Established organisalional and goveman¢e structure and lines of feporting Fomal written policies Velling procedL>res as required by law lor the protection of vulnerable people Clear hierarchical aulhorisalion and approval levels The above structure formalises the risk management processes established for the Charity. Through these processes, the Governors identfy the majgr risks lo which the Charity is exposed and review the systems and procedures established lo mallage them. Nevertheles5, 11 is recognised Ihat such systems can provide only reasonable bul not absolute assurance that major risks have been adequately addressed and can be managed. Pay policy for s8nlor staff The pay of senior staff is reviewed annually, and includes cgmparisons with other independent schools. Being located in the South East, where there are significant Costs in fel8tion lo housing. The Abbey keeps abreast of pay and employment conditions elsewhere. Page 6 THE ABBEY SCHOOL. READING IA Company Lifflited by Guarantee) GOVERNORS, REPORT (CONTINUED> FOR THE YEAR ENDED 31 AUGUST 2025 Volunteers There is no shortage of volunteer support thioughout the School, from parents a8SiStin9 in reading classes in the Junior School, in the library and on school IrTPS lo as515ting in the second-hand unifomi shop. Former pupils, Governors and othèr interested adults have also given freely of their lime. All of this is very much valued by the School. Governors lake this opportunty to record how much they appreciate the eonlinuing and valuable support ol volunteers ID the School. OBJECTIVES AND AIMS Charltahle Objectives The objects of the S¢hor)l afe sel out in the Memorandum of Association. The main object is summarised as the running of a School lo provide a general eduealion which includes religious instruction in the doctrines and dutiès ot the Church of England. The school educated during the year some 900 gi￿$ al no cost lo the slate. The Charlty's Aims As an educational charity for girls a9ed >18, The Abbey School provides an outstanding real-wortd education for girls that equips them ID achieve academic excellence and to live with confidenea, purpose artd joy. Working in partnership with families. the School 5UPPOrts each individual student to expand Iheir hO￿OnS. discover their passion5 and fulfil Iheir potential. The School offers remarkable extTa Net currènt113billtie$ {1,900,9521 11,380,e661 Total assets less current liabilities 20,837,587 23,009,508 Creditors.. 4rn0unls falling due after more than one year 18 (4,611.9791 16,138.0081 Total net assets 16,225,608 16.871,500 Charlty funds Restricted funds Restricted funds Unrestricted fund5 20 276,291 293,371 20 276.291 293,371 Designated funds General funds 20 20 1,084.330 14,864,987 1,084,330 15,493,799 Tol?[ unreslricled funds 29 15,949.317 16,578,129 Total funds 16,225,608 16,871,50D The Companys nel movement in funds for the year was £1645.892112024- £326.2991. The Governofs acknowledge their re5ponsibililies for complying w(fh the requirements of the Act with respect lo accounting records and preparalion of financial slalemenls. Page 24 THE AB8EY SCHOOL, READING {A Company Llmited by Guarantee} REGISTERED NUMBER: 00133676 COMPANY BALANCE SHEET (CONTINUED} AS AT 31 AUGUST 2025 The financial slalemenls were approved and aulhorised for issue by the Govemors and signed on their behalf by.. E A Harrison BA (Honsj MBA JP Chair of Trustees Date.. MFS J Butler FCA 2é 1 2o2f The notes on pages 27 to 45 form part of these financial stalemenls. Page 25 THE ABBEY SCHOOL, READING IA Company Limited by Guaranteel CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025 As reslaled 2024 2025 Ca$h flows from operatlng activities Nel cash used in operating adivities 189,1441 3,949.094 Cash flows from Investlng actlvltles Dividends and intere51 on investment portfolio Purchase of tangible fixed assets Purchase of investment5 Re¢eipls from sale of investments 130,025 1108.0801 1188.8081 220,805 90.151 1655,4771 1397,2311 379,164 Net cash provided byllused in) investing activities 53,962 1583.3931 Cash flows from financ5ng actlwltles Receipt of new bank loan Repayments of borrowing Interest paid 1,000,000 11,152,0431 1232.2891 1321.2631 1434,6721 Net cash (used inllprovided by finan¢ing activitie5 11,473,306> 333,039 Change in cash and cash equivalents In the year Cash and eash equivalents al the beginning of Ihe year 11,508,488) 3,698.740 2,984.675 1714,0651 Cash and cash equivalents al thg end of the year 1,476.187 2.984,675 The notes on pages 27 10 45 fomi part of these finaneiaS statements Page 26 THE ABBEY SCHOOL, READING A Company L5mlt8d by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 General information The Abbey School, Reading is a charitable company limited by guarantee Irègislered number 00133676 and charity number 3091151, incorporated in England and Wales under the Companie5 Act 2006 and the Charities Act 2011. The addre55 of the registered office is given within the Govemors, Offi￿r$ and Advisors s&¢lion on pag& 1 and 2. counting policies 2.1 Basis of prgparation of financial statements The financial slalemenls have been prepared in accordance with the Charities SORP IFRS 102} Aeeounling and Reporting by CharFties.' Slalement of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financi£l Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 leffeelive 1 January 20191, the Financial Reporting Standard applicable iri the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Abbey School, Reading meeis the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless othernise st81ed in the relovanl accounting policy. The Consolidated Slalemenl of Financial Aclivi118s ISOFAI and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Company has taken advantage of the exemption allowed under section 408 01 the Companies Act 2006 and has not presented its own Slatemgnl of Financial Aclivilses in thes8 financial slalements. 2.2 Basls of consolidatlon The group accounts consolidate the accounts of The Abbey School, Reading and its $Lsbsidiary undertaking, Abbey Commercial Enterprises Limited on a line by linè basis. The accounts are made up lo 31 August 2025. No separate slalement of financial aelivilies or income and expenditure has been presented for the charitable company alone as permitted by the Companies Act 20ts6 and the. 2016 Charities SORP. The results of the subsidiary undertsking for the year are diselosed in note 15 of the accounts. FRS102 allows qualifytng entities certain disclosure exemptions. The charily. only, has taken advanla9e of the exemptions for the following disclosufe requirement.. Section 7 "Slatemenl of Cash Flows". presentation of an entity onty Slalemenl of Cash Flow and related notes and disclosures-, and from tho financial instruments disclosures, required under FRS 102 para 11.40 10 11.48A and para 12.26 10 12.29, as the informalion is provided in the Group financial disclosures. Page 27 THE ABBEY SCHOOL, READING (A Company Limited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Account5ng pollcSes Icontlnuedl 2.3 Going concern The Governors keep the School's financial slalus under close review. The most signift¢ant maller likely lo affect the School's financial position is student ntjmbers, and careful PTojeclion5 of income and expenditure are considered in the Context of economic fa¢tors and potential demographic change. Supported by a strong asset base. a gross operating surplus, and a positive cash flow, Ihe Govemors note that the School can service, wilhoul exceeding, the arrangemonls established wilh its bankeis, and conclude that the it will be able lo meet ils liabilities as they fall due. 2.4 Incoming resources All incoming resources are included in the statement of financial activities when the charitable company is legally enlilled lo the income and the amount can be quantified with reasonable accura¢y. 2.5 Fees and similar income Fees receivable, cherges for services and vse of premlses are accounted lor in the pertod in which the service is providèrj. Fees receivable are staled after deducting allowanees, scholarships and other rernissions granted by the school. Means tested bursaries which provide financial assistance lo parents, are treated as expend¥lure from the designated fund within the statement of financial aclivilies. Fees received for education lo be provided in future years are carried fonNard as advance fee Scheme payments and fees received in advance in the balance Sheet, These fees are released to the slalemenl of financial aclivilies over the period in whi¢h the school provides the Se￿1¢e5 in future years. 2.6 Donatlon$ DonatiDns received lor the general purposes of the School are credited lo unrestricted funds. Donations subjed to specific wishes of the donors are cTrdiled lo the relevant restridod fvnd. 2.7 Resour¢e8 expended Expenditure is recognised once there is a legal or constructive obligation lo transfer economi¢ benefit lo a third party, il is probable that a transfer of economic benefits will be required in selllement and the amount of the obliyalion can be measured reliably. ExpendilLFre is classified by activity. The costs of each activity are made up of the lolal of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly lo that aclimty. Shared costs which wntribute lo mole than one activily and support Costs which are not attributable lo a single activity a￿ apportioned between those activities on a basis consiglenl with the use of resources. Central staff cosls are all¢xaled on the ba51s of lime Spent, and depreciation charges allocated on the portion of the asset's use. Expendiiure on raising funds includes all expenditure incurred by the Group lo raise funds for ils harilabl8 purposes and includes costs of all fundraising gcliwlies events and nonwchatilablè trading. Expenditure on charitable adivrties is incurred on directly undertaking Ihe activities which further the Group's objectives, as well as any associated support costs. Page 28 THE A88EY SCHOOL, READING {A Company Llmitgd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accounting pollclgs Icontlnuedl 2.7 Resources expended Icontinuedl Resources expended are accounted for on an accrual basis. Resources expended are allocated lo specific activities wilhoul the need for apportionment. The irrecoverable element of VAT is included within the item of expense lo which il relates. Expenditure in respect ol the other support costs of the School includes recruitment eosts and general office costs including governan￿ costs. 2.8 Scholarship$ and bursaries Scholarships and bursaries, along with temporary finaftcial assistance are charged to the statem&nt of financial activrties in the year in which they are grant8d. 2.9 Tangible fixed assets and depreclation Tangible fixed assets are initially recognised al 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 lo bring a tangible fixed asset into ils intended working condition should be inclijded in the m&asurement of cost. Depreciation is provided on all tangible fixed assets eX￿p1 land whi¢h is Considered lo be ol negligible value, and is charged so as lo allocate the cost of tangible fixed assets less their residual value over their eslimaled useful lives, using the straighl-line melho¢J. Depreciation is provided on thè followng basis". Freehold building Freehold improvements Motor vehicles Other equipment Computer equipment 20A per annL¢m on cost 10Y. per annum on cost 25D/o per annum on cost 10Q/o per annum on cost 330/0 per annum on cost Items costing less than £5,000 ale written off as an expense as acquired. 2.101nvestments Fixed asset inveslmenls are a form of financial instrument and ale initially recognised al th&ir transaction cost and Skjbsequently measured at fair value al the Balance Shaèt dale, unless the value cannot be measured reliably in which case it is measured al cost less impairment. Investment gains and 105ses, whether realised or unrealised, are combined and presented as 'GainsllLossesl o investments, in the Consolidated Slalemenl of Financial Activities. Investments in subsidiaries are valued at cost less provision for impairment. 2.11 Debtors Trade and other debtors are recognised al the settlement arnount. Prepayments are valued al Ihe amounl prepaid. 2.12 Cash at bank and in hand Cash at bank and in hand includes cash and short-lem) highly liquid investments with a short malurily of three months or less from the dale of acquisition or opening of the deposit or similar ae¢ounl. Page 29 THE ABBEY SCHOOL, READING IA Company Limlted by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 A¢counting policle$ Icontinuedl 2.13 Liabilttles and provisions Liabilitie5 are recognised when there is an obligation at the Balance Sheet dale as a resuEt of a past event. it is probable that a transfer of economic benefil will be required in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised al the amount that the Company anlicipates il will pay to settle the debt of Ihe amount il has received as advanced payments for the goods or services il must Provide. Provisions are measured al the best estimate of the amounts requ1red lo settle the obligation. 2.14 Financlal instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financi81 instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value with the exception DI bank loans which are subsequently me8sured al amort15ed cost using the effective inleTesl method. 2.15 Operating leases Rentals paid under operating leases are charged lo the Consolidated Statement of Financial Activities on a slraighl-line basis over the lease lemi. 2.16 Pensions The charitable company conlribules into sepaTate defined contribution schemes lor leaching ancl non-teaching staff for which the ¢onlribulions are charged in the slalement of financiol activities in the year in which they are pay8bl8. 2.17 Advance fees scheme Amounts received under the school's Advance Fees Scheme contracts for education not yel ulilised lo settle schoDI fees are recorded a5 cuirenl liabilities where the education will be provided 12 months from the reporting dale and as long-lerm liabilities where the education was lo be provided in subsequent years. 2.18 Parents. dgposlts The GoveTnOTS have reviewecl the contract term5 under which pupil fee dep0511s are held by the school. Although under normal circumstances these will be repaid over futurè years when the pupils complete their edLJcalion at the school, pupils can leave al earfier dales. The school doès not therefore have an unconditional right to relain the individual deposits foT at least 12 months after the balance sheet dale and. in line with the requirements in FRS 102. the balance of the deposits held al 31 August 2025 have been included wsthin current liabilities. The prior year pupil fee deposits balance has been similafly represented. 2.19 Fund accountlng General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of Ihe general objeclsves Df the Group and which have not been designated for other purposes. De51gnaled funds comprise unrestricted funds thal have been sel aside by the GovemoTS for particular purposes. Details Df these reSe￿e5. a5 applicabfe lo the Gharity, are Sel oul in note 20. Page 30 THE A8BEY SCHOOL, READING IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accounting policies Icontlnued} 2.19 Fund accountlng Icontinuedl Reslricled funds are fLsnds where specific conditions imposed by Ihe donor would restrict the use of unspent funds or where the temis of the appeal re51ricl the use of the funds. Investment income. gains and losses are allo¢ated lo the appropriate fund. Critical accounting estimates and areas of Judgement Estimates and judgements are eonlinually evaluated and are based on hisloiical experience and othèr factors. including expe¢lations of future events that are believed to be reasonable under the circumstances. Critical accounting &slim81es and assumptions.. The Company makes eslimales and assumptions conceming the future. The resulting accounting eslimales and assumptions will. by delinilion, seldom equal the related actual results. The estimate5 and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities wilhln the next financial year are discussed below. Significant estimates included wilhin the financial slalemenls include provision for fee debtors, which require a judgement by managemerrt regarding the likelihoDd of recovery. Management review and assess fee debtors on an individual ba￿S and provide for fee debtors as appropriate. Depreciation 1$ another key estimate in the accounts which requires management Judgen￿nI over the useful life of the assets. The policy has beerl Sel out in the notes above. School fees Unrestricted funds 2025 Total funds 2025 Total funds 2024 School fees Teceivable consist of: Gr05s fees Less.. Scholarships and other awards Less.. Other discounts 19,206,134 19,206,134 20,026.172 11,178,288) 11.178,2861 11,023,818) 1520,1561 1520,1561 1265.7961 Net fees recelvable 17.507.692 17.507,692 18,736,558 Add.. Bur5arie$ paid of deS￿nated funds Imeans-lested} 817,326 817.326 673,8D3 Total 2025 18,325,018 18,325,018 19,410.361 Total 2024 19,410,361 19,410.361 Page 31 THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Income from donations Restrl¢ted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Donations 7,522 34,467 41.989 282,213 Total 2L124 252,500 29,713 282,213 Non an¢lllary income Unrestricted funds 202$ Total funds 2025 Totsl funds 2024 Property rentals 53.171 53,171 46,680 Total 2026 53.171 53,171 46,680 Total 2024 46,680 46,680 Income from Investments Unrestrlcted funds 2025 Total funds 2025 Total funds 2024 Bank interest ￿e￿ived UK listed investments 94.279 35,746 94,279 35,746 49,851 4Q),300 Total 2025 130,025 130,025 9D,151 Total 2024 90.151 90,151 Income from investments was designated in the current and pr@vious financial year. Bank interesl received was unrestr¢cled in the current year. Page 32 THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Ancillary income Unrestricted funds 2025 Total funds 2025 Total fijnds 2024 After school Eare Trips income Fees for extra-curricular courses and examinations Fees in lieu of notice Regisliation fees Miscellaneous income 43,260 521,910 821,236 34,900 28,135 129.801 43.260 521.910 821.236 34,900 28,135 129.801 46,893 701,798 852.486 38,454 32,549 113,912 Total 2025 1,579,242 1,579,242 1,786,092 Total 2024 1,786,092 1,786,092 Expènditura on charitable activities Total funds 2025 Total funds 2024 Staff costs 2025 Other Depreciation 2025 2025 Charitable activities Teaching costs Welfare costs Premises costs Support Costs Trip costs Other travel and activities Bursaries Governance costs 9,359,647 107,562 950,599 1,846.206 477,905 1,396,986 1.578,e83 1,162.083 517,014 368,305 817,326 21,400 433,498 294,936 10.132,488 1.$04,548 4.019.126 3.011.020 517,014 368,30S 817,326 21.400 433,498 9,894,292 1,504,323 4,183.590 3,457,562 726,815 484.249 673.803 25,654 448,541 1.489,844 2.731 Finance costs Movement in bad debt provis¢on 68,692 68,692 88,347 12,264,014 6,841.892 1,787,511 20,893.417 21,487,176 Total 2024 12.328,418 7,304,070 1.854,688 21,487,176 Pa9e 33 THE ABBEY SCHOOL, READING IA Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Total expenditure on eharitable 8cliviliès was £20,893,417, 12024-. £21,487.1761 of this £7,522 12024. £1,0001 was restricted, £817,326 12024.. £673.803} was designated and £20,068,569 12024.. £20,487,373) was unrestricted. 10. Expenditure on raising funds UTrre5tricted funds 2025 Total funds 2025 Total funds 2024 Portfolio managomenl costs Tr4on-an¢illary costs Trading expenses 13,290 17,111 4,456 13,290 17,111 4.456 14.110 28,706 4.183 34,857 34,857 46,999 Total expenditure on raising funds was £34,85712024: £46,999) of this £13,29012024.' £14,110) related to designated lunds and £21,567 12024". £32,889) ¥elaled lo unrestricted funds. Auditors. remuneration 2025 2024 Fees payable lo the company's auditor and ils associates - Audit Other seTVIC8S 18,700 3,750 17.850 3,570 12. Slaff costs Group 2025 Group 2024 Company 2025 Company 2024 Wages and salaries Social securty costs Pension eonlrsbulions Other non-payroll stsff costs 9,795.754 10,048,316 1,058.654 984,437 1,118.526 1,120.137 291,080 175,528 ,795,754 10,048,316 1,058,6S4 984,437 1.118,526 1,120,137 291,080 175,528 12,264.014 12,328,418 12.264,014 12,328,418 Page 34 THE ABBEY SCHOOL, READING IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 12. Staff Costs Icontinuedl The average number of persons employed by the Company during the year was as follows.. Group 2025 No. Group 2024 No. Teaching Welfare 223 225 27 16 Premises Support 19 45 45 311 313 Aggregate employee costs of the key management personnel of Ihe school, including salary. benefits, pension contributions and national insurance in the year tolalled £339,24712024'. £366,632). The governors received £Nil remuneration or other benefrt for the year12024-. £Nil). The 8mployerfs liability insurance ol the charitable company in¢lude$ indemnity insurance for the goverriors. The Split between part time anrl full time stsff was as folli)WS.' Full lime 2025 No. Full lime 2024 No. Part lime 2025 No. Part lime 2024 No. Teaching Welfare Premises Support 128 121 23 20 12 25 12 26 20 18 136 146 175 167 Page 35 THE ABBEY SCHOOL, READING {A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 12. Staff costs Icontiftuedl The number of employees whosè employee benef((s (excluding employer pension Costs) excèeded £60,000 was- Group 2025 Group 2024 No. In the band £60.OOD- £69,999 In the band £70,000- £79,999 In Ihe band £80,000- £89,999 In the band £90.1)00- £99.999 In the band £100.000- £109,999 In the band £160.000- £169,999 21 18 The total employer contributions In the year towards pènsion scheme contributions for the above 29 12024.. 261 staff members were £229,35512024.. £220,720). During the year. severanee pay was awarded to 26 employees with payments for compensation and pay in lieu of nolKe lolalling £213.980 12024.. 10 ernployees, £82,357). All of Ihis had been paid by the reporting date12024.' AIII. 13. Taxation The charitable company is a registered charity. and as such is entitled lo tax exemptions on income 8n gains, property applied fof its charitable purposes. Page 36 THE ABBEY SCHOOL, READING {A Cornpany Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 14. Tanglble fixed assets Group and Company Freehold property Motor vehicles Office equipment Total Cost or valuation At 1 September 2024 Additions 35.623.475 74,707 23,338 5,369,358 41,016,171 33,353 108,060 At 31 August 2025 35,698.182 23.338 S.402,711 41,124,231 Depreciatlon At 1 September 2024 Charge fDr the year 13,678,274 1,427,230 23,337 4.622,221 36D.281 18,323.832 1,787,511 At 31 August 2025 15.105.$04 23,337 4.982,502 20,111.343 Net book value Al 31 August 2025 20,592,678 420,209 21.012,888 At 31 Atsgu8t 2024 21,945,201 747,137 22.692.339 15. Fixed a55et investments Group 2025 Group 2024 Company 2025 Company 2024 Listed investments {see below) Investments in subsidiary companies (see below) 1.725,649 1,698,033 1,725,649 1.698,033 1,725,649 1,698,033 1.725.651 1,698,035 Subsidiary undertaking: The Abbey School owns 100% of the ordinary share ¢apilal of Abbey Commercial Enterprises Limited (company number 063348171. This company was incorporated in England and Wales and wa5 established lo carry out Ihe noneducational aclivilies associated with the School. Trading results extracted from its audrted financial statements are shown below.. Page 37 THE ABBEY SCHOOL, READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 2025 2024 Turnover Administration expenses Management Charge from the Abbey School 151,226 14.4561 119.0001 145,682 14,1831 119.0001 Net profil 127.770 122.499 Nel assets 127,774 122,504 All activities havè been consolidale¢t on a line by line basis in the SOFA. Any taxable nel profil is gifted lo the charity. The total expenses include a management charge paid by Abbey Commercial Enterprises ol £19,000 12024. £19.0001, which is eliminated on consolidation. There was no out5t8nding balance with Abbey Commercial Enterprises al the end 01202512024.. £nill Llsted Investments 2025 2024 Al 1 September 2024 Additions Disposals Unrealised Ilossllgain on revaluation for the year Al 31 August 2025 1,689,911 1,570,831 188,808 3g7,231 1220,8051 1379,1641 6,9B2 101.013 1,664.896 1,689,911 Cash held by investment manager Total al 31 August 2025 60,753 1.725.649 8.122 1,698,033 istorical cost of investments 1.541.715 1,484,390 Page 38 THE ABBEY SCHOOL. READING IA Company Lirnited by Guaranteg) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 16. Debtors Group Group As reslaled 2025 2024 Company Company A5 reslaled 2025 2024 Tiade deblofs Other debtors Prepayments 5,226,299 12,865 570,684 5.704,416 3,44S 332,743 5,201,966 12,865 570,884 5.687,269 3,356 332,743 5.809.848 6.040,606 5,785,515 6,023.368 17. Cr¢ditoYs: Amounts falling due within one year Group Group As restated 2025 2024 Company Company As restated 2025 2024 B8nk108ns Trade C￿dItorS Deposits he5d Other laxalion and social security Other creditOfS Accrua15 and deferred income Fees received in advance 194.132 462,351 593,747 1.114.490 660.022 140.325 5,894,14S 466,667 309,549 584,781 246,459 501,460 293,560 7,881,186 194.132 462.3S1 593.747 1,109,559 660.022 135.800 5.894,145 466,667 309,549 584,781 242.156 501,460 289,570 7.881,166 9,059,212 10,283,642 9,049.756 10,275.349 The bank overdiaft. with HSBC, is secured by legal ¢harges Over two freehold properties. Fees in advance comprise5 fees paid early for the ntrxt academic term or. under the Advance loes scheme, the next academic year, Deposits held relate to acceptance deposits which are Considered as owed within one year gtven that only one term's noti￿ is required lo be given by pupils. Page 39 THE ABBEY SCHOOL, READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 18. Creditors: Amounts falllng due after more than ong year Group 2025 Group 2024 Company 2025 Company 2024 Bank loans F¢es receivEd in advance 4.054,336 557,643 4,933.844 1.204.164 4,054,336 557.643 4,933.844 1,204,164 4.611,979 6,138,008 4,611.979 6.138,008 Fees in advance comprises fees paid earfy for future academic term or, under the Advance fees scheme. the next academic year. The loan is repayablè as follows.. Group 2025 Group 2024 Company 2025 Company 2024 Within 1 to 2 years Bank loans 207,529 468,667 207.529 466.667 Within 2 to S years Bank loans 712,538 1,4L)O,000 712.S38 1,400,000 More than S years Bank loans 3,134.269 3,067,177 3,134.269 3,067.177 The bank loan with HSBC is secured by a charge over the School's property and is due to be fefinanced within 5 yoars. 11 is being repaid al a rrionlhly rale which will extend beyond 5 year5. 19. Flnanclal instruments Group 2025 Group 2r)24 Company 2025 Company 2024 Financial assèts Financial assets measured al fair value 1,725,649 1,698,033 1,725,649 1,898.033 Included within financial instruments hejd at fair value is investments. Page 40 THE ABBEY SCHOOL. READING (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 20. Statemant of tund$ Statement of funds- Current year Balance at 1 Soptembor 2024 Balance at Gainsl 31 August (Lossesl 2025 Transfers Snlout Income Expendlture Unrestrlcted funds Designated funds Designated - The Bursary Fund 1.000,000 35.746 1817,3261 774.598 6,982 1.000,000 Designated donation 84,330 84.330 1.084.330 35,746 1817.3261 774,598 6.982 1,084,330 General funds General unrestrided 15,616,301 20,237,403 120,086,346) 774,5981 14,992.760 Total Unrestricted funds 16,700.631 20.273.149 {20,903,6721 6,982 16,077.090 Restritted funds Reslricled Funds all funds 293,371 7,522 (24,6021 276.291 Total of funds 16,994.002 20,280.671 {20,928,2741 6,982 16,3S3,381 Income from Thè Bursary Fund is used to offer finan¢i81 assistance to individual pupils when necessary. The Governors have decided lo make an annual transfer from the unrestricted funds so that a balan¢e of £1 millton remains earmarked for use on buisaries within this fund. Restricted funds are those received lor specific purposes including donations received for building appeals, various leaching departments and fixed assels. Once the restriction has been fulfilled then transfer from restricted lo unrestricted funds is made. Page 41 THE ABBEY SCHOOL, READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 20. Ststemenl of funds Icontlnuedl Statement of funds - prior year Balance al 1 September 2023 Balance at 31 August 2024 Transfers inloul Gainsl ILossesl Income Expenditure Unrgstrictgd fund$ Designated funds Designated- The Bursary Fund Designated dtsnalion 1,000.000 40,300 1687,9131 546,600 101,013 1,000,000 84.330 84,330 1,084,330 40,300 1687,9131 546,600 101,013 1,084,330 General funds General unrestricted 15.539,785 21,468.38D {20.845,2641 1548,600) 15,616,301 Total Unrestrlcted funds 16.824,11S 21.508,680 121,533,177) 101,013 16,700,631 Restrlcted tunds Reslricled Funds 811 fvnds 41,871 252,500 11.0001 293,371 Total of funds 16,665,986 21.761.180 121,534.177) 101,013 16,994,C)02 Page 42 THE ABBEY SCHOOL, READING {A Company Limitpd by Guarant80} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 21. Analysis of net assets between funds AnaEysi$ of net a$$ets between fund$ - current year R&stricted Unrestricted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Fixed asset investments Current assets Creditors (tue within one year Creditors due in more than one year 21,012,888 21.012.888 1,725,649 1,725,649 7,009,744 7,286,035 19.059,2121 19,059,212) 14,611,979) 14.611.979) 276,291 Total 276,291 16,077,090 16,353.381 Analysis of net assets between funds- prior year Restricted Unrestricted ftjnds funds 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Currènt assets Credrtors due within one year Creditors due in more than one year 22,692,339 22,892,339 1.698,033 1.698,033 8,731.909 9,025,280 110,283,642) 110.283.642) 16,138,008> 16,138.0081 293,371 Total 293,371 16.700,631 16,994,002 Page 43 THE ABBEY SCHOOL, READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 21 Reconcillatlon of net movement in funds to net Cash flow from opgratlng a¢tlvities Group 2025 Group 2024 Net incomelexpendllure for the year las per Statement of Financial Activities) 1640.6211 328,016 Adjustments for: Depreciation (Gainslllosses on investments Dividends and interest Interest payab Ilncreasell decrease in debtors Increasel{decreasel in creditors Increas8llDecreasel of cash al investment manager 1.787.511 1.854,688 16,9821 {101.0131 1130,0251 190,1511 321,263 434,672 62.630 15,471,214} 11,430.2891 7.005,673 152,6311 111,5771 Net cash providèd byl{used inl operating actlvitles 189,1441 3,949,094 23. Analysis of cash and cash equivalents Group 2025 Group 2024 Bank balances included in cash al bank and in hand 1,476,187 2,984.675 Total cash and cash equlvalents 1,476,187 2.984.675 24. Analysis of net debt At1 September At31 2024 Cash flows August 2025 Cash balances Bank loans due in under one year Bank loans due in more than one year 2,984,675 11,508,488 1466,667} 272,535 4,933.8441 879,508 1,476,187 1194,1321 14,054,336) 12,415,836) 1356,445> 12,772,281) Page 44 THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 25, Capitsl commttments Group 2025 Group 2024 Company 2025 Company 2024 At 31 August 2025 Ihe School had the Igllowing capital Gommilmenls.. 140.000 140,000 26. Pension commitments The Company makes conlributions for teaching and non-teaching staff. £1,118.526 (2024.. £1,120,137) was payable for the year. Contributions lolalling £143,53012024.. £142.5221 were unpaid al the year end and are included within creditors. 27. Operating lease commitments Al 31 August 2025 the GTOUP and the Company had commrtmenls to make future minimum tease payments under non-cancellable operating leases as follows.. Company 2025 Company 2024 Due within one year Due betsveen ￿ and five years 10.302 27.472 10,302 37,774 37,774 48,076 28. Prior year adjustments An adjuslmenl of £5,801,850 ha5 been applied lo both trade debtors and deferred income as al 31 Augu81 2024, to recognise the Autumn 2024 lurtion fee invoices that were issued in advance of the academic period. This has no impact oti the Slalemenl of Financial Adivilies. Related party transactlons Transactions with Governors Owing lo the nature of the schcx)I's operations and the composrtion of ils governing body being dfawn from local public and private sector organisalions, il is inevitable that transacliofts will lake place with organis8tions with which a Govemor may have an interest. Al transactions involving these organizalions are in aecordance with the s¢hool's nomal procedures. In Ihe year expenses of £370 were reimbursed lo 2 Governors in relation lo subsislence12024.. £454 10 3 Governors). Paye 45