Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Registered Charity Number: 310018
MERCHANT TAYLORS’ EDUCATIONAL TRUST
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 31 AUGUST 2025
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
INDEX
| Trustees’ Report | 3 |
|---|---|
| Objectives and Activities | 3 |
| Achievements and Performance | 4 |
| Financial Review | 4 |
| Future Plans | 5 |
| Structure, Governance and Management | 6 |
| Reference and Administrative Details | 7 |
| Statement of the Trustees’ Responsibilities | 8 |
| Independent Auditor’s Report | 9 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Accounting Policies | 15 |
| Notes to the Financial Statements | 17 |
2
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
The Trustees submit their report and financial statements for the year ended 31 August 2025. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (FRS102), Second Edition, applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard, applicable in the UK and Republic of Ireland.
OBJECTIVES AND ACTIVITIES
Charitable Objects
The overarching object of the Charity, as noted in its Deed of Trust (1967), is as follows:
- The Trust Property shall be held and applied for or towards or for the benefit or in furtherance of such charitable purposes, charitable institutions or charitable foundations (whether educational or otherwise) in such manner and in such proportions as the Trustees may from time to time determine and both capital and income without distinction shall be so applicable.
While this remains unchanged, the objects to which the Charity pays special regard were reviewed in 2021 by the Trustees, as the Deed of Trust permits. By Deed of Variation dated 22 March 2021, they are now as follows:
-
a) The advancement of education through the provision of support to the MTET Schools (Merchant Taylors’ School and St John’s School).
-
b) The advancement of education through the provision of scholarships, bursaries, prizes or other awards or grants to pupils attending any of the MTET Schools who are in need of financial assistance.
-
c) The advancement of education through the provision of scholarships, prizes, maintenance allowances or grants to any former pupil of any of the MTET Schools tenable at any university, college of education, or other institution of further (including professional and vocational) education.
In planning their activities for the year, the Trustees have complied with their duties in section 17(5) of the Charities Act 2011 and have considered the Charity Commission’s guidance on public benefit, and in particular its supplementary guidance on advancing education and fee charging.
Aims
The Trustees aim to provide financial support to the MTET Schools commensurate with the resources at their disposal and the objects of the funds under their control; and supporting initiatives in the education sector more generally in which they have an interest and to which they are able to apply their expertise and their contacts to advantage.
Objectives
The Charity’s objectives for the year were to maximise income and to continue support for the MTET Schools in the context of the broader educational interests of MTET and the Merchant Taylors’ Company (referred to below as MTC).
3
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
Activities
The Trustees disbursed £252,810 to Merchant Taylors’ School Northwood (“MTSN”) for bursaries, with the intention that such bursaries be provided to students who would not otherwise be able to be educated at the school. A further £9,000 was awarded in leaving prizes to students leaving MTSN to embark on university study.
A sum of £33,705 was disbursed to The Merchant Taylors’ Foundation (registered charity number 1161568), to fund bursaries at other schools. Additional grants of £29,340 were made to develop educational outcomes in Science, Technology, Engineering and Maths (STEM) and Design subjects.
Public Benefit
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.
The Charity’s activities as outlined above, and in particular its provision of bursaries to the MTET Schools and (through its donation to The Merchant Taylors’ Foundation) a broader group of educational establishments, aim to further the public benefit enshrined in its charitable objects.
ACHIEVEMENTS AND PERFORMANCE
Investment performance
The investment income for the Charity amounted to £240,675 (2024: £282,584).
FINANCIAL REVIEW
Investment powers and policy
The Trustees’ investment policy is that income should be maximised as far as possible whilst seeking to ensure capital growth. The Charity has adopted its investment manager Rathbones’ policy of responsible investment. Through a holistic appraisal of investment, opportunity and risk, Rathbones aim to take an informed and active approach to responsible investment by incorporating a thorough consideration of environmental, social and governance (ESG) factors and continuing meaningful engagement with the companies in which they invest.
The investments are managed on a discretionary basis on a medium risk profile. The portfolio has a balanced mandate meaning the investments are managed for a combination of capital and growth. Performance is measured against a primary benchmark measured with reference to a composite index from other funds, and a secondary benchmark over the longer term of CPI + 4%.
The Trustees review this investment policy annually and no changes were made to it this financial year.
Total return
In April 2021 the Trustees resolved to adopt a total return policy for the MTET funds held in the managed portfolio from 1 September 2021.
Trustees established the original value of the endowments as £4,057,442 through review of historic accounts, with £2,212,815 being the value of endowments gifted in September 2017 and £1,844,627
4
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
being the value of the other, extant endowments in 2011.
Prior to the April 2021 resolution the capital returns on the Trust’s endowed assets were credited to the Trust’s endowment funds and all income returns to the related restricted funds.
The Trustees have decided to transfer 3.5% of the asset value to the restricted funds for application based on the expected long-term return within the investment manager’s mandate. This withdrawal rate will be reviewed regularly.
Financial reserves
The Trustees’ policy is to hold 3 to 6 months expenditure (£113,000 - £227,000) in cash in unrestricted funds. Although the year end balance was below this amount, (£54,668) the Trustees do not feel that they are exposed to operational risks of the sort that would require or be ameliorated by emergency expenditure. A reserve is retained in order that there should be a capacity to respond to urgent and/or compelling cases for support. The Trustees believe that the current reserves policy would be sufficient to cover this eventuality, given the nature and size of the awards made historically, and the size of the capital balance which is expendable at Trustees’ discretion.
Risk management
The Trustees consider, at their meetings, any risks to which the Charity may be exposed. These were identified during the year along with mitigation activity and lead responsibilities. The major financial risk to which the Charity itself is exposed is a diminution in the value of, and yield from, its investments. Investments in financial instruments are monitored closely, with regular scrutiny of investment managers’ performance taking place, assisted by the Merchant Taylors’ Company’s Investment Committee, on which one Trustee sits.
Fundraising
The Trustees take seriously their responsibilities under the Charities (Protection and Social Investment) Act 2016 and have considered the implications for fundraising activities. There have been no complaints received in the year in relation to fundraising.
The Charity is a charitable trust supported by The Merchant Taylors’ Company.
The Charity does not work with commercial participators or engage professional fundraisers.
A review of the final position at the end of the reporting period
The Charity’s Endowment Funds stood at £6,083,935 (2024: £5,976,852), the Restricted Fund stood at £1,227,221 (2024: £1,289,104) and the Unrestricted Fund at £1,839,236 (2024: £1,816,277).
FUTURE PLANS
The Trustees plan to support the MTET Schools and participate in relevant activity of the MTC’s Education Strategy, including that which relates to the provision of educational opportunities for disadvantaged young people.
The Trustees also plan to continue working with both the MTET Schools and MTC to identify and update risks and ensure that responsibilities and activities relating to risk mitigation are clear and coherent across all parties.
5
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Charity is governed by a Trust Deed dated 31 August 1967.
Endowment funds
The Charity holds a Bursary and Scholarship Trust and an MTET Prize Fund, whose sole objects are to support the provision of awards to pupils and former pupils of MTSN. An allocation of the unapplied total return is disbursed each year for that purpose, subject to satisfactory reports concerning MTSN’s overall programme of support for boys in need of financial assistance towards their education.
Appointment of Trustees
The Trustees are appointed by the Court of the Merchant Taylors’ Company, with regard paid to the particular skills and expertise that the Charity has need of at the relevant time.
Induction and training of Trustees
Trustees are offered at least one opportunity each year to receive training from the Charity’s legal and accountancy advisers, either on a dedicated training day or by joining sessions offered by those advisers to their clients. The latter have tended to be favoured in recent years, as they offer a range of perspectives and the opportunity to share insights and establish contacts in the wider sector.
Trustees have access to the governing documents; previous minutes, plans, and other documentation; and to Charity Commission guidance. They are also supported by a well-qualified and experienced staff employed by Bradestrete Services Limited, a subsidiary of the Merchant Taylors’ Company.
Management personnel
The Trust does not employ management personnel but receives the services of Bradestrete Services Limited, to provide all administrative functions.
Decision-making and delegation
The Trustees are drawn from members of the Merchant Taylors’ Company and selected for their particular skills. Decisions as to expenditure for agreed budget may be delegated to the Chairman of Trustees or to MTC staff (employed by Bradestrete Services Ltd), but other expenditure will usually be referred to all Trustees for approval.
6
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
REFERENCE AND ADMINISTRATIVE DETAILS
CHARITY NAME: Merchant Taylors’ Educational Trust REGISTERED CHARITY NUMBER: 310018 (registered with the Charity Commission for England and Wales) ADDRESS: Merchant Taylors’ Hall 30 Threadneedle Street London, EC2R 8JB TRUSTEES: Lady Harding Mr C P Hare Mr M A L Robb Mr P H Watkins Mr D J Jackson
CHIEF EXECUTIVE OFFICER: Brigadier C M B Coles CBE (appointed 14 July 2025) Rear Admiral J R H Clink CBE (resigned 14 July 2025) BANKERS: Royal Bank of Scotland PLC 62 Threadneedle Street London, EC2R 8LA INVESTMENT MANAGERS: Rathbone Investment Management Ltd 8 Finsbury Circus London, EC2M 7AZ AUDITOR: Saffery LLP 71 Queen Victoria Street London, EC4V 4BE SOLICITORS: Charles Russell Speechlys LLP 5 Fleet Place London, EC4M 7RD
7
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2025
STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of 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 Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP (FRS102) Second Edition;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable 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 Charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011’s applicable accounting regulations. They are 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 as to disclosure of information to auditors
The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. All of the Trustees have confirmed that they have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
Auditors
The Trustees have appointed Saffery LLP, Statutory Auditors, as auditors to the Charity.
By order of the Trustees (If we type or otherwise electronically sign our names, we confirm that we intend to authenticate this document by so doing):
Lady Annie Harding Peter Howard Watkins Trustee Trustee
Date: 08 May 2026
Date: 08 May 2026
8
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERCHANT TAYLORS’ EDUCATIONAL TRUST FOR THE YEAR ENDED 31 AUGUST 2025
Opinion
We have audited the financial statements of Merchant Taylors’ Educational Trust for the year ended 31 August 2025 which comprise the Statement of Financial Activities, Balance Sheet, and notes to the financial statements, including 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 incoming resources and application of resources 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 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 annual report, other than the financial statements and our auditor’s report thereon. 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
9
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERCHANT TAYLORS’ EDUCATIONAL TRUST FOR THE YEAR ENDED 31 AUGUST 2025
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.
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:
-
the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
-
the charity has not kept sufficient accounting records; or
-
the charity’s 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
As explained more fully in the Trustees’ Responsibilities Statement set out on page 8, 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.
Auditors’ responsibilities for the audit of the financial statements
We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
10
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERCHANT TAYLORS’ EDUCATIONAL TRUST FOR THE YEAR ENDED 31 AUGUST 2025
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with informed management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with informed management, and updating our understanding of the sector in which the charity operate.
Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees 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 and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.
11
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERCHANT TAYLORS’ EDUCATIONAL TRUST FOR THE YEAR ENDED 31 AUGUST 2025
(If I type or otherwise electronically sign my name, I confirm that I intend to authenticate this document by so doing):
Saffery LLP Statutory Auditors 71 Queen Victoria Street London EC4V 4BE
Date: 11 May 2026
Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
12
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
STATEMENT OF FINACIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025
| Unrestricted | Restricted | Endowment | Total | Total | ||
|---|---|---|---|---|---|---|
| Note | fund | fund | fund | 2025 | 2024 | |
| £ | £ | £ | £ | £ | ||
| Income and endowments from: | ||||||
| Donations and legacies | 2 | 95,000 | - | - | 95,000 | 75,000 |
| Other income | 134 | 682 | - | 816 | 2,598 | |
| Investments | 39,663 | 34,104 | 166,908 | 240,675 | 282,584 | |
| Total return allocated to income | - | 209,190 | (209,190) | - | - | |
| Total income | 134,797 | 243,976 | (42,282) | 336,491 | 360,182 | |
| Expenditure on: | ||||||
| Raising funds | ||||||
| Investment management costs | 5,469 | 4,702 | 23,012 | 33,183 | 36,524 | |
| Charitable activities | ||||||
| Grants | 3 | 63,045 | 261,810 | - | 324,855 | 287,850 |
| Grant related support costs | 4 | 26,179 | 132,675 | - | 158,854 | 156,531 |
| Total expenditure | 94,693 | 399,187 | 23,012 | 516,892 | 480,905 | |
| Net gains on investments | 41,314 | 35,523 | 173,858 | 250,695 | 771,630 | |
| Foreign exchange movements | (352) | (302) | (1,481) | (2,135) | (1,433) | |
| Total investment gains | 40,962 | 35,221 | 172,377 | 248,560 | 770,197 | |
| Net income/(expenditure) | 81,066 | (119,990) | 107,083 | 68,159 | 649,474 | |
| Transfers between funds | (58,107) | 58,107 | - | - | - | |
| Net movement in funds | 22,959 | (61,883) | 107,083 | 68,159 | 649,474 | |
| Fund balances at 1 September 2024 | 1,816,277 | 1,289,104 | 5,976,852 | 9,082,233 | 8,432,759 | |
| Fund balances at 31 August 2025 | 1,839,236 | 1,227,221 | 6,083,935 | 9,150,392 | 9,082,233 |
The notes on pages 15 to 24 form part of these financial statements.
13
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
BALANCE SHEET AS AT 31 AUGUST 2025
| Note | 2025 | 2024 | |||||
|---|---|---|---|---|---|---|---|
| £’000 | £’000 | £’000 | £’000 | ||||
| Fixed assets | |||||||
| Investments | 5 | 9,122,249 | 8,966,822 | ||||
| Current assets | |||||||
| Debtors | 6 | 6,414 | 6,415 | ||||
| Cash | 54,668 | 143,252 | |||||
| 61,082 | 149,667 | ||||||
| Creditors: amounts | 7 | 32,939 | 34,256 | ||||
| falling due within one | |||||||
| year | |||||||
| Net current assets | 28,143 | 115,411 | |||||
| Total net assets | 8 | 9,150,392 | 9,082,233 | ||||
| Funds | |||||||
| Endowment funds | 9 | 6,083,935 | 5,976,852 | ||||
| Restricted funds | 10 | 1,227,221 | 1,289,104 | ||||
| Unrestricted funds | 11 | 1,839,236 | 1,816,277 | ||||
| 9,150,392 | 9,082,233 |
These financial statements were approved by the Trustees on . 08 May 2026
(If we type or otherwise electronically sign our names, we confirm that we intend to authenticate this document by so doing):
Lady Annie Harding Peter Howard Watkins Trustee Trustee
The notes on pages 15 to 24 form part of these financial statements.
14
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
1. Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP) and Financial Reporting Standard 102 (FRS 102) and applicable law. The Trustees have taken advantage of the exemption for micro entities under FRS 102 and, accordingly, have not prepared a statement of cash flows. The particular policies adopted by the Trustees are described below.
Basis of accounting
The financial statements have been prepared under the historical cost convention with the exception of fixed asset investments which are stated at market value. The Charity is a public benefit entity. The Trustees are satisfied that the Charity is a going concern and have prepared these financial statements on that basis. The financial statements have been prepared to give a true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the SORP rather than the Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) which has been withdrawn.
Investments and investment income
Investment income from dividends, bank balances and fixed interest securities is accounted for when received.
Listed investments are valued at mid-market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.
Total return
The Trustees resolved to adopt a total return policy for the funds held in the managed portfolio from 1 September 2021.
Prior to the resolution the capital returns on the Trust’s endowed assets were credited to the Trust’s endowment funds and all income returns to the related restricted funds.
The Trustees have decided to transfer 3.5% of the asset value to the restricted funds for application based on the expected long-term return within the investment manager’s mandate. This withdrawal rate will be reviewed regularly.
Income
Donations and legacies are accounted for by all entities when they are entitled to the income and when the amount concerned can be quantified with sufficient certainty. Amounts received for general purposes are credited to the unrestricted funds of the receiving entity, whilst amounts subject to specific wishes or stipulations are credited to the appropriate restricted or endowment fund.
Direct charitable expenditure
Direct charitable expenditure includes all expenditure directly related to the objects of the Charity. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate
15
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
all costs related to the category. Expenditure is allocated to expense headings either on a direct cost basis, or apportioned according to management estimates of time spent or space occupied, as appropriate. Governance costs comprise external audit costs and costs incurred in relation to constitutional and statutory requirements.
Grants payable are charged in the year in which the offer is conveyed to the recipient.
Funds
Notes 9 to 11 list all funds, which are categorised as follows:
Endowment funds: These have the principal purpose of generating income.
Restricted funds: These funds were donated or created for specific purposes and may be used only for those purposes.
Unrestricted funds: These are held for more general donations by the charity.
Taxation
The Charity is a registered charity and recognised as charitable by HMRC, and its income is not therefore liable to taxation as it is applied to wholly charitable purposes.
Financial instruments
The Charity has financial assets and financial liabilities only of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Critical accounting judgement and estimates
The preparation of the financial statements in accordance with FRS102 requires the Trustees to make estimates and assumptions concerning the future. The estimates and assumptions that could have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include accruals and revenue recognition. The accounting in these areas of the accounts requires management to use judgement. In relation to accruals this is with regards to a best estimate of costs that will be incurred based on contractual requirements. For revenue recognition management apply judgements in concluding on the point at which revenue should be recognised.
16
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
| 2 Income | ||
|---|---|---|
| Donations | ||
| 2025 | 2024 | |
| £ | £ | |
| Unrestricted | ||
| Merchant Taylors’ Company | 95,000 | 75,000 |
| 95,000 | 75,000 | |
| 3Grants | ||
| 2025 | 2024 | |
| £ | £ | |
| Grants paid from restricted funds | ||
| Merchant Taylors’ School Bursaries | 252,810 | 246,750 |
| Merchant Taylors’ School Prizes | 9,000 | 9,000 |
| 261,810 | 255,750 | |
| Grants paid from unrestricted funds | ||
| Merchant Taylors’ Foundation | 33,705 | 32,100 |
| Individual grants | 29,340 | - |
| 63,045 | 32,100 | |
| Total Grants paid | 324,855 | 287,850 |
| 4Grant related support costs | ||
| 2025 | 2024 | |
| £ | £ | |
| Administration costs | 107,951 | 100,805 |
| Event costs | 19,096 | 7,545 |
| Insurance | 461 | 466 |
| Governance costs : | ||
| Audit fee | 14,586 | 13,179 |
| Legal & professional fees | 16,760 | 34,536 |
| Total | 158,854 | 156,531 |
Trustees received no remuneration (2024: £nil) and were not reimbursed for any of their expenses in the year (2024: £nil). The Charity had no employees during the current or prior year.
17
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
| 5 | Fixed asset investments | ||
|---|---|---|---|
| 2025 | 2024 | ||
| £ | £ | ||
| Valuation at start of year | 8,731,819 | 7,995,057 | |
| Additions | 1,011,953 | 1,800,990 | |
| Disposals | (1,148,686) | (1,835,857) | |
| Market value gains | 250,695 | 771,629 | |
| Valuation at end of year | 8,845,781 | 8,731,819 | |
| Cash held at start of year | 235,003 | 225,224 | |
| Movement | 41,465 | 9,779 | |
| Cash held at end of year | 276,468 | 235,003 | |
| Total | 9,122,249 | 8,966,822 | |
| 6 | Debtors | ||
| 2025 | 2024 | ||
| Prepayments and accrued income | 6,414 | 6,415 | |
| 6,414 | 6,415 |
18
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
7 Creditors: amounts falling due within one year
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Trade creditors | 15,203 | 15,893 |
| Other creditors and accruals | 17,736 | 18,363 |
| 32,939 | 34,256 | |
| Balances with connected parties: | ||
| Bradestrete Services Ltd | 15,203 | 15,893 |
8 Allocation of the net assets of the charity
| Fixed assets | Net | ||
|---|---|---|---|
| and investments | Current assets | Total 2025 | |
| £ | £ | £ | |
| Unrestricted funds | 1,811,093 | 28,143 | 1,839,236 |
| Restricted funds | 1,227,221 | - | 1,227,221 |
| Endowment funds | 6,083,935 | - | 6,083,935 |
| 9,122,249 | 28,143 | 9,150,392 | |
| rior year comparative | |||
| Fixed assets | Net | ||
| and investments | Current assets | Total 2024 | |
| £ | £ | £ | |
| Unrestricted funds | 1,700,866 | 115,411 | 1,816,277 |
| Restricted funds | 1,289,104 | - | 1,289,104 |
| Endowment funds | 5,976,852 | - | 5,976,852 |
| 8,966,822 | 115,411 | 9,082,233 |
Prior year comparative
19
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
9 Endowment Funds
| Balance | Incoming | Resources | Investment | Balance | |
|---|---|---|---|---|---|
| 1.9.24 | resources | expended | gains/(losses) | 31.8.25 | |
| £ | £ | £ | £ | £ | |
| Bursary and Scholarships | 5,650,891 | (39,946) | (21,761) | 163,006 | 5,801,635 |
| MTET Prize Fund | 325,961 | (2,336) | (1,251) | 9,371 | 334,598 |
| 5,976,852 | (42,282) | (23,012) | 172,377 | 6,083,935 |
Prior year comparative
| Balance | Incoming | Resources | Investment | Balance | |
|---|---|---|---|---|---|
| 1.9.23 | resources | expended | gains/(losses) | 31.8.24 | |
| £ | £ | £ | £ | £ | |
| Bursary and Scholarships | 5,165,214 | 4,536 | (23,954) | 505,095 | 5,650,891 |
| MTET Prize Fund | 298,080 | 221 | (1,376) | 29,036 | 325,961 |
| 5,463,294 | 4,757 | (25,330) | 534,131 | 5,976,852 |
Fund Details
The Bursary and Scholarships funds comprises various donations that can be used solely for the provision of bursaries or scholarships for the benefit of pupils of Merchant Taylors’ School.
The MTET Prize Fund can only be used to fund prize winners from Merchant Taylors’ School.
20
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
9 Endowment Funds (continued)
Statement of investment total return (trust)
| Bursary | MTET | ||
|---|---|---|---|
| and | Prize | ||
| Scholarship | Fund | Total | |
| £ | £ | £ | |
| Original endowment value | 3,765,216 | 292,225 | 4,057,441 |
| Unapplied total return | 1,885,675 | 33,736 | 1,919,411 |
| Total value at 1 September 2024 | 5,650,891 | 325,961 | 5,976,852 |
| Investment income | 157,835 | 9,073 | 166,908 |
| Market value movement | 163,007 | 9,371 | 172,378 |
| Investment management fees | (21,762) | (1,251) | (23,013) |
| Total return applied to unapplied return | 299,080 | 17,193 | 316,273 |
| Transfer to income | (197,781) | (11,409) | (209,190) |
| Original endowment value | 3,765,216 | 292,225 | 4,057,441 |
| Unapplied total return | 1,986,974 | 39,520 | 2,026,494 |
| Total value at 31 August 2025 | 5,752,190 | 331,745 | 6,083,935 |
Total return
The Trustees adopted total return from 1 September 2021. The original gift value was agreed to be £3,765,216 for the Bursaries endowment and £292,225 for the Prizes endowment. Trustees agreed to withdraw 3.5% of the asset’s value as this best balanced the present and future needs of beneficiaries and was in line with the long-term anticipated return by the investment manager.
21
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
10 Restricted Funds
| Balance | Incoming | Resources | Resources | Investment | Investment | Transfers | Balance |
|
|---|---|---|---|---|---|---|---|---|
| 1.9.24 | resources | expended | gains/(losses) | 31.8.25 | ||||
| £ | £ | £ | £ | £ | £ |
|||
| MTET Restricted Fund | 1,110,743 | 34,220 | (127,212) | 35,221 | - | 1,052,972 |
||
| Endowment income funds | ||||||||
| Bursary and Scholarships | 564 | 198,316 | (256,987) | - | 58,107 | 0 |
||
| MTET Prize Fund | 177,797 | 11,440 | (14,988) | - | - | 174,249 |
||
| 1,289,104 | 243,976 | (399,187) | 35,221 | 58,107 | 1,227,221 |
|||
| rior year comparative | ||||||||
| Balance | Incoming |
Resources |
Investment | Balance | ||||
| 1.9.23 | resources |
expended |
gains/(losses) | 31.8.24 | ||||
| £ | £ | £ | £ | £ | ||||
| MTET Restricted Fund | 1,139,552 | 40,410 |
(178,356) |
109,137 | 1,110,743 | |||
| Endowment income funds | ||||||||
| Bursary and Scholarships | 16,481 | 182,486 |
(198,403) |
- | 564 | |||
| MTET Prize Fund | 182,167 | 10,531 |
(14,901) |
- | 177,797 | |||
| 1,338,200 | 233,427 |
(391,660) |
109,137 | 1,289,104 |
Prior year comparative
Income accruing to the Endowment Funds is restricted to the purposes described in note 9. The MTET Restricted fund was formed on the transfer of the T3-5 Fund and is limited to expenditure, of any kind, in Merchant Taylors’ School.
22
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
11 Unrestricted Funds
| Balance | Incoming | Resources | Investment | Transfers | Balance | |
|---|---|---|---|---|---|---|
| 1.9.24 | resources | expended | gains/(losses) | 31.8.25 | ||
| £ | £ | £ | £ | £ | £ | |
| General Reserve | 1,816,277 | 134,797 | (94,693) | 40,962 | (58,107) | 1,839,236 |
Prior year comparative
| Balance | Incoming | Resources | Investment | Balance | |
|---|---|---|---|---|---|
| 1.9.23 | resources | expended | gains/(losses) | 31.8.24 | |
| £ | £ | £ | £ | £ | |
| General Reserve | 1,631,265 | 121,998 | (63,915) | 126,929 | 1,816,277 |
12 Related party transactions
Bradestrete Services Limited, a connected party, incurred administration, establishment and management expenses during the year on behalf of this Trust amounting to £107,951 (2024: £100,805).
The Charity received donations from the Merchant Taylors’ Company as detailed in note 2.
The Charity made donations of £261,810 to Merchant Taylors’ School and £33,705 to Merchant Taylors’ Foundation as detailed in note 3.
The Trustees are all members of the Merchant Taylors' Company, which administers this Trust through its subsidiary Bradestrete Services Limited.
The balances due to and from the other entities associated with the Merchant Taylors' Company at 31 August 2025 are disclosed in note 7 to the financial statements.
No trustees have received any remuneration during the year (2024: £nil) nor have they been reimbursed for expenses (2024: £nil).
23
Docusign Envelope ID: FEDDED45-F423-8548-835D-B93614A01E2D
Merchant Taylors’ Educational Trust
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
13 Comparative information
| Unrestricted | Restricted | Endowment | Total | |
|---|---|---|---|---|
| fund | fund | fund | 2024 | |
| £ | £ | £ | £ | |
| Income and endowments from: | ||||
| Donations and legacies | 75,000 | - | - | 75,000 |
| Other income | 428 | 2,170 | - | 2,598 |
| Investments | 46,570 | 40,042 | 195,972 | 282,584 |
| Total return allocated to income | - | 191,215 | (191,215) | - |
| Total income | 121,998 | 233,427 | 4,757 | 360,182 |
| Expenditure on: | ||||
| Raising funds | ||||
| Investment management costs | 6,019 | 5,175 | 25,330 | 36,524 |
| Charitable activities | ||||
| Grants | 32,100 | 255,750 | - | 287,850 |
| Grant related support costs | 25,796 | 130,735 | - | 156,531 |
| Total expenditure | 63,915 | 391,660 | 25,330 | 480,905 |
| Net gains/(losses) on investments | 127,165 | 109,340 | 535,125 | 771,630 |
| Foreign exchange movements | (236) | (203) | (994) | (1,433) |
| Net income/(expenditure) | 185,012 | (49,096) | 513,558 | 649,474 |
| Fund balances at 1 September 2023 | 1,631,265 | 1,338,200 | 5,463,294 | 8,432,759 |
| Fund balances at 31 August 2024 | 1,816,277 | 1,289,104 | 5,976,852 | 9,082,233 |
24