Trustees’ report For the year ended 31 August 2021
## Stowe-School Limited
(Limited by Guarantee}
Financial statements 31 August 2021 together with Trustees’ and Auditor’s reports.
Registered number: 187251 Charity number: 310639
1 Stowe School Limited
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## Trustees’ report (continued) For the year ended 31 August 2024
## Directors
Simon Charles Creedy Smith BA, FCA The Reverend Canon Peter Michael Ackroyd MA, MBA, MA, PhD’ Jonathan Michael Arundel! Bewes BA, FCA
Patrick Sradshaw BA Her Honour Judge Rebecca Brown BA Julie. Christine Brunskill BSe; RICS Elizabeth de Burgh Sidley BA, FRICS Rupert Fordham BA (Cantab) John Philip Cardain Frost BSc, MRICS Richard Greaves BA Joanne-Elizabeth Hastie-Smith Sunjeewa JayawardenaBSc,MBA Andrea Karen Johnson BSc, PGCE: Mairi Johnstone LLB, DipLP, BSc, MBA, GradCG Catriona Helen tleyd-MA (Cantab) Alexander Muirhead : Andrew Reekes MA, MReS Vanessa Stanley BSe-(Eng) ACGI, M Ed. | Lady Stringer BSc, MB, BS, LRCP, MRCS | Christopher John Tate BA, MIMC | Company Secretary | Michael Porter BA, MSc | Registered and Principal office
Stowe School Stowe
Buckingham MK18 SEH
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Independent Auditors Saffery Champress LLP 71 Queen Victoria Street London ECAV ABE
## Bankers
Barclays Bank Plc Wytham Court. 11 West Way Oxford OX2 QB
it
2 Stowe School Limited
Trustees’ report (continued) For the year ended 31 August 2021
## Financial Statements
The Directors, who are also-referred to as Governors and who are also Charity Trustees as defined in the Charities Act 2013, present their-annual report-and audited financial staterients for the year ended 31 August 2021,
The financial: statements comply with the Companies Act 2006, Charities.Act 2011, the Memorandum and Articles of Associationpreparing aiid Accountingand Reporting by Charities: Statement of Recommended Practice applicable to charities {FRS102}. their accounts in accordance with Financia! Reporting. Standards applicable in the UK and Republic of Ireland
## Statement of Directors’ responsibilities
The Directors are responsible for preparing the Trustees’. Report, Including .the Strategic: Report and the financial statements,.in accordance with applicable law and United Kingdom Accounting Standards (United kingdom Generally Accepted: Accounting Practice}; viewCompanyincludingof thelawstaterequires of affairsthe Directorsof the charitableto preparecompany financial.andstatements forof the incoming each financialresourcesyear,andwhichapplication give a.trueof resources,and fair the Directorsthe income. andare required expenditureto: of the charitable company for that year. In preparing these financial statements,
- select suitable accounting policies and theh apply them consistently;
- observe the methods and principlesin the Charities SORP;
« make judgements and accounting estimates that are reasonable and prudent; * disclosedstate whether applicable Accounting Standards have been followed, subject.to.any. material departures and explained in the financial statements;and # prepare the financial statements on the going concern basis unless company will continue in. business, jt is inappropriate to. presume. that the Thethe Directors areresponsible for keeping proper accounting recordsthat disclose -with reasonable accuracy at any time the financia! position of the charitable company and enable themto ensure that the financial statements comply with reasonableCompaniessteps Actfor2006.the preventionThey are alsoandresponsibledetection offor-safeguarding fraud and other the irregularities. assetsof the charitable company and-for taking Thethe Directors are responsiblefor the mainténance andintegrity of-the corporate-and financial information included on charity's. website. Legislation in thé United Kingdom governing the preparation .and dissemination of financial statements may differ from fegislation in other jurisdictions. In so far'as-the Directors are aware, there.is no relevarit audit information of which thé charitable company’s: auditors are, unaware and the Directors have taken all steps that they ought to have taken to make themselves aware of any raiavant audit information anc to establish that the auditors are aware of that information.
## STRUCTURE, GOVERNANCEAND MANAGEMENT
## Constitution
The company is limited by guarantee and governed by the provisions in the Articles of Association adopted by Special Resolution on 6 October 2020; these replaced the Memorandum ang Articles of Association, dated 20 January 2923 (as altered by Special Resolution on.25 September 1951). Each of the seven Members has undertaken to contribute an amountthe assets notbeing exceedinginsufficient£1 (oheto cover the pound) towards company’sthe assetsdebts of theand liabilities. company in the event of the same being wound up and
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3 Stowe School Limited
| Trustees’ report (continued), For the year ended 31 August 2021
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Stowe School Limited'is amember of the Allied Schools group of independent schools; all of which were founded by the Martyrs’ Memorial and Church of England Trust (MMT). On 26 September 2013, the Allied Schools signed a new Management Agreement with MMT by which the members of the group agreed to the.appointmentof the Allied Schools : Agency Limited to oversee the performance of the schools and to monitor their adherence tothe foundational religious principles oh behaif of MMT.
## Charitable Status
The company is.a registered charity with registered charity number 310639.
## Governing Body
The Directors constitute the Governing Body and are elected by the Governing. Body, except that two Directors are ominated by the MMTifthe total does not. exceed twelve, three if the number exceeds twelve but daes not exceed aighteen and four if the number exceeds eighteen. The Directors nominated by the MMT are The Reverend Peter Ackroyd; Mr Bewes,Mrs Hastie-Smith and Mrs Johnstone.
The Directors of the company serving since 1September 2020 were as follows:
Simon Charles Creedy Smith BA, FCA
‘The Reverend Canon Peter Michael Ackroyd MA, MBA, MA, PhD Jonathar’ Michael Arundell Bewes BA, FCA
Patrick. Bradshaw BA (appointed 5 fanuary 2021)
Her Honour.Judge Rebecca Brown BA (appointed.5 January 2021)
Julie Christine Brunskill BSc, RICS Elizabeth de Burgh Sidley BA, FRICS
David Watson Cheyne MA (Cantab) (resigned 18 June 2021) Rupert Fordham BA {Cantab) {appointed.5 January.2021) John Philip Cardain Frost 8Se MRICS
Professor Guy Goodwin FMedSci (resigned 4 September.2021) Richard Greaves BA (appointed 5 January 2021)
Joanne Elizabeth Hastie-Smith
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Sunjeewa Jayawardena BSc, MBA (appointed 5 January 2021) Mairi Johnstone (iB, DipLP, 8Sc, MBA, GradCG (appointed 23 February 2021)
Andrea Karen Johnson'BSc, PGCE
Catriona Helen Lloyd MA {Cantab) Alexander Muirhéad {appointed 5 January 2021) Elizabeth Philips OBE,-BA, MA, AKC {resigned 18 June 2021) Andrew Reekes, MA, MReS (appairited5.[December][2020}]
Vanessa Stanley BSc (Eng) ACGI, M Ed Lady Stringer BSc, MB, BS, LRCP, MRCS Christopher John Tate BA, MIMC
Jn accordance with the Articles of Association, Mr] Bewes, Miss E de Burgh Sidley, MrJ Frost, Mr R Greaves, Mrs HastieSmith, Mrs C Lloyd and Mr‘C Tate retire by rotation and being eligible offer themselves for re-election.
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Trustees’ report (continued)
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For the year ended 31 August 2021
## Induction and Training of Directors
When new Directors are appointed, care is taken te ensure that the appropriate skills and expertenice. reievant to the Governing Bady are representéd, Each new Director isprovided with an information pack anda fist of refevant training courses, some of which they are expected to-attend: They are inducted into the workings of Stowe School Limited through a visit programme, discussion and an introductory pack. Alt Directors raceiye information on governor training update courses.
## Governance
The Directors are responsible for the overall management and control.of Stowe School Limited and meet four times a year. The work of implementing riost of their policies is carried out by carnmittees appointed by the Directors for that purpose {Executive; Education; Estates; Finance; Marketing & Admissions, Nomination & Remuneration and Prep School}, which usually meet in the weeks preceding meetings of the full Governing Body. These. committees perform detailed reviews within their areas of responsibility. The day to day running of Stowe School Limited is delegated to the Head.of Stawe School and the.Executive Leadership Team (ELT), who are considered the key management personnel of the charity.
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|Head|of|Stowe School|Dr Anthony Wallersteiner|
|Senior Deputy Head|Mark Wellington|
|Deputy Head|Pastoral|Liam|Capley|
|Deputy Head Academic|Dr Julie|Potter|
|Designated|Safeguarding|Lead|(DSL)|Michael|Rickner:|;|
|Finance|Mark|Greaves|
|Operations: &|Estates’|Mark|Kerrigan|
|Strategic|Development|&|Furidraising|‘Colin Dudgeon|
|MarketingHead|and Admissions|Tori Roddy|
|of Peaple|Jaime-Chahal|
|Head|of Swanbourne House|Jarie Thorpe|
|Head|of Winchester Hause|Antonia.Lee|
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The Head and members of the ELT attend meetings of the above committees, as appropriate.
## Key Management Personne! Remuneration
The pay of the Head of Stowe School is reviewed annually by the Nomination & Remuneration Committee. The pay of ‘Cominittee:the remaining members of the ELTis reviewed annuaily by the Head and agreed by the Nomination & Remuneration Pay is subject to. performance and market forces. All Directors. give freely of their time and no Direétor vemuneration was paid in-the year. Details of Directors’ expenses and related party transactions are-disclosed in the financial statements.
Directors are required to disclose all relevant interests inv accordance with our policy andwithdraw from decisions where a conflict of interest arises..
## The Stowe Group of Schools.
On 5 January 2021, the mergers of Swanbourne House School (“SHS”) and. Winchester House School {"WHS”") (together preparatory“the Prep Schools”) with Stowe School was completed. Stowe School has taken on all the assets and liabilitiesof both now schdals, Both schools have a long tradition of sending. pupils to Stowe School, The Stowe group of schools a offers an educatianal pathway for over 1,400 children from 3-18 years old. It allows member schools to benefit from that wealth of shared expertiseand enables both preparatory schools to benefit from the many facilities and opportunities the Stowe group provides, It dlso-provides opportunities for sharing strategic leadership, resources for professional development and id@as.as well ‘as delivering cost éfficiencies across the group. Six new. Governors, three from each preparatory school, were appointed to the Governing Body atthe time of the mergers.
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Trustees’ report (continued) For the year ended31 August 2021
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: of boarding schools for fee-paying boarding schools for fee-paying schools for fee-paying for fee-paying fee-paying and supported supported pupils, offering a combination combination of[[high]][[academic]][[standards]] and outstariding pasteral care, with first class facilities and infrastructure that that provide an efficient efficient and cost : effective education; « delivering a-sich provision in sport, music, art, drama and other activities in an inspiring, sustainable : environment;andand * working in partnership with The National Trust and The Stowe House Preservation Trust to iiake the internationally significant Stowe Jandscaped Gardens and Mansion accessible ta members of the public, as a means of widening access and sharing the heritage and history of stowe with a diverse audience, which in turn contributes to achieving the. charity's primary abject of education. TheDirectors have referred to the guidance contained in the. Charity Commission's genéral guidance on public benefit, : and in particular to its supp!ementary public benefit guidanceon adyancing education, when reviewing the future aims i and objectives.
## Group Structure and Relationships
Stowe School Limited now coniprises.the assets and liabilities of-all three schoals in one charitable body with one set of Governors, Thes¢ financial statements are the accounts for the group and comprise a full year for Stowe School and eight months from January 2021 fot the-Prep Schools. Stowe Schoo! Limitedhas a whoily:owned non-charitable trading subsidiary, Stowe Enterprises Limited, which operates: the. Schoo} shap and makes available the facilities of the School to the public and-varidus organisations for events, educational and leisure purposes. Stowe Enterprises Limited now owns the trading subsidiary[of][Winchester][House] School and operates across the Stowe group.of schools. Stowe School Limited, in conjunction with its partners on theStawe site, being The National Trust.and The Stowe. House Preservation Trust Limited, assists in the restoration of Stowe (Stowe House and Stoweé- Landscape Garden) and the improvement of the visitor experience. Stowe House is open to the public on over 200 days ina normal year.
Stowe Schoo! Limited works closely with The Stowe School Foundation (SSF), a separate charity. The Trustees of SSF can apply the capital and income.of the trust, both for the provision ofeducational resource and facilities.at the School and for scholarshipsavid bursaries, as. well as the provision of any other finaricial support to Stowe School Limited’as-the Trustees may from time to time decide. SSF has three ex officio Trustees, between two and six‘nominated Trustees, appcintedby Stowe School Limited, and up to four co-opted Trustees appointed by-the Trustees.
## ‘OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES
## Charity’s-objects and aims
The-primary objects-of the charity as set out inits Articles of Association are to provide education in accordance with the Protestant principles of the Church of England..The main aim of the charity isto provide public-benefit through the usé ofthe Stowe group of schools for the provision of education (which-includes an understanding of culture and heritage} ‘to its pupils.
To achieve thig aim the charity seeks to maintain the Stowé group of sctiools’ reputation as a°centre of excellence in education, culture and:heritage at a local, regional and national level by:
- ¢ Maintainingand promoting the Stowe group ofschoolsas ane of Britain's best, national co-educational group of boarding schools for fee-paying boarding schools for fee-paying schools for fee-paying for fee-paying fee-paying and supported supported pupils, offering a combination combination of[[high]][[academic]][[standards]] and outstariding pasteral care, with first class facilities and infrastructure that that provide an efficient efficient and cost effective education;
- « delivering a-sich provision in sport, music, art, drama and other activities in an inspiring, sustainable environment;andand
## Strategies and objectives forthe year
The main strategies and objectives for the charity to.achieve the aims have included:
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Trustees’ report (continued). Forthe year ended 31 August 2021
## Strategies-for Education
- Promote a supportive, secure and nurturing environment that ptaces a high premium-on the emotional, physical and mental well-being of every Stoic by providing the-highest standards of pastoral care and.a culture of responsibility, tolerance, attachmentand inclusiveness with equality of opportunity forall.
- * Promote the highest standards ofteaching'in the curriculum as well réadihg, as fostering curiosity, love of subject, wider al! creativity, intellectual risk-taking and the pursuit ofindividual or specialised-talents in the belief that pupils have the capacity-to respond to and benefit fram greater stretching and higher expectations.
- * Steady recruitment to maintain a full school with @ pupil roil of up to 900 pupils at’ Stowe School with applications exceeding capacity and .an appropriate balance between UK and overseas students, whilst Safeguarding Stowe:as a co-educational, predominantly boarding school.
- ‘Steady recruitment.for the Prep Schools with a.pupil roll‘of over-600 pupils.
## Main objectives.for the year
- 2021 targets for A levels: 75% A*B grades: for GCSE: 50% 7-9 or A*A grades.
- ‘* ~~ Developing the theme of Change Makers to mairitain the group’s reputation for innovation by building’ on previous themes such as Growth Mindset, Marginal Gains, Effective Teaching and Learning and the. Learning Power Approach. The group emphasises: character virtues ‘such .as grit, resilience, determination and perseverance.
- rangeFor theof PrepscholarshipsSchools toand achieveexhibitionsentrytoto Senior pupils’ Schools.first choice of a wide range of secondary schools arid a wide
## Strategies for Sport, Music, Art and Drama
- Provide a rich diet of cultural-activities that mixes. classroom and academic achievement with personal cultural development through sport, music, art arid drama supported by a wide range of activities such as concerts, plays, exhibitions, lectures, trips and weekend activities.
- Promote the belief that ability comes in many forms and that pupils need to be supported to discover and enjoy success no.matter where their talents tie.
Main objectives for the year
- = Maintaining a wide variety of sport, music, art and drama available to all,
- *® =©Developing-a cultural programme to ‘attract pupils to drama and musical productions, in support of the curriculum.
## Strategies for Heritage and Restoration
- inParticipate, through an effective partnershipwith The National Trust and The Stowe House Preservation Trust, the heritage restoration of Stowe while protectingthe interests ofthe School.
## Main objectives for the year
- Working withThe Stowe House Preservation Trust to plan the restoration of the State Dining Roam.
- Completing thé restoration of the Temple Rocm (the State Crawirig Room),
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| Trustees’ report (continued) For-the year ended 31 August 2021 Strategiesfor Public Benefit The ‘following strategies are designed to ensure that Public Benefit remains intrinsic[to][ all][of][ the][ Charity’s][activities:]
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- s Promote scholarships and bursaries to allow access for pupils from all backgrounds.
- « Promote participation:with State Schools, © Provide access to Stowe’s heritage, inpartnership with The National Trust'and The Stowe House Preservation Trust.
- Promote good citizenship through participationin external activities.and initiatives.
- « Provide access to.school facilities to the local community.
- e Provide access for the public to music, drt, sport, drama.and science activities at Stowe,
## Main objectives for the year
- ‘® =Propressing educational initiatives with SilverstoneUTC, local State Schools and the University of Buckingham.
- « Promoting participation in Service@Stowe, CCF, Duke of Edinburgh Award scheme-and ‘green team’. Providing high level bursaries te deserving applicants who would otherwise not beable to attend Stowe School. for Fundraising Fundraising
- « Build and sustain the Campaign for Stowe to generate. funds each year to.augment operating surpluses and to enable the steady implementation of the Development Plan.and of-Change 100.
## Strategies for Fundraising Fundraising
## Main objectives for the year
- [bursaries:]
- « Generating, through the Campaign for Stowe, funds of[a][minimum][ of][£2][ million][ per][ annum][ towards] and scholarships; planning future:fundraising initiatives in the’areas of Sport and other masterplans..
- * Continued pursuit of Change 100 - Stowe’s ambitious mission to generate an endowment of £100 millian:-that will provide means-tested bursarial support to. change the lives of talented and deserving children from much less-advantaged backgrounds, whose world can be transformed through an education at Stowe. The aim of Change 100 is to provide full-fundingfor 100 pupils at the School, every year[in][ perpetuity.]
- e Fundraising tforspecific projects forthe Prep Schools.
- The remainderof the Trustees’ Report also constitutes the Strategic Repart for the purposes of the Companies Act 2006.
- i i i ‘STRATEGIC REPORT : ACHIEVEMENTS AND PERFORMANCE ' The-principal activity of theCompany continued to be the:provision of education in a boarding and day school for pupils 842 (2020: 821) pupils. The Prep §choo!s averaged 548 pupils in
- aged 3 to 18. This academic year Stawe School averaged the eight months to31 August 2021. The year énded-31 August 2021 was influenced by COVID-19 resulting in the closure ofall three schools during the lent term andthe implementation of the successful Stewe Distance Learning programme and other-virtual learning platforms. The-merger-wiand integra **t** ionh of the Prep Schools in January 2021 was a-major achievernent in the year.
## 8 Stowe Schoo! Limited
Trustees’ report (continued)
For the year ended 31 August 2621 Public Benefit
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Scholarships and bursaries are. promoted in. recruitment literature, on Stowe. School's website and through. advertising. Scholarships at Stowe School are awarded at entry at 13+-and 16+ for academic; musical, artistic, sporting. merit. or all round
Scholarships at Stowe School are awarded with a fixed remission.of fees.of between 5% and 25%. Scholarships supplemented by means-tested: bursaries. may be
Bursaries are awarded on the basisof financial need and principally be to those pupits whe for financial reasons might ‘not awards able.to come to the Stowe group of schools or who: might not be ableto remain to complete their education. Bursary: are made.on the basis of full financial digciosure and are'reviewable annually, At least two fully funded places are available each year, subject to financial need - during 2021 there were 5 (2020: 6) fully funded places. at Stowe School. wideningCommunity programmes operatedby staff and pupils are.encouraged, with emphasis on the elderly and disabled and on support to local schools and the local community. Covid-19 restricted the ambition of the normal outreach programme, and programme of drama and-music preductions open to the local community outside charities. but monies were raised for The School's partnérship with Silverstone UTC, announced in July. 2017: continues-¢o flourish and to provide enhanced educational and co-curricular opportunities for pupils at both educational establishments. The.partnership is intended ta demonstrate the best that can be achieved by independent and state schools working tagether. The partnership invelves reciprocal governor arrangements, teaching and sharing best practice and facilities.
No StoweEd conference, normally attended by both state arid independent schools, was possible'this year.
The Head continues to chair Street Chifd, which works in conflict and post-conflict countries and has helped over 200,000 children to attend schools.
The. Schooi iavited laca! clubs to use its sports facilities and equiprnent at subsidised rates where permissible and encouraged staff to coach sport in the community.
Stowe House attracts the wider and local community to.enjoy its, heritage, through being opeh.to the public corporate, for weddings, commercial and charitable events, although less events than norma! were allowed summer to take place over the and Stowe House remained closed for long periods over the summer because of the pandemic.
## Fee Support
Stowe School, together with SSF and. other outside Trusts, Supported 306 (2020: 230) pupils, through the provision of Scholarships and bursaries during. the year. Stowe School and SSF allocated -£2,034,773 (2020: £1,930,763) being 7.7% (2020: 7.9%) of fee income, to:scholarships forand bursaries. Includéd-in this total are means-tested bursaries; awarded in additionto scholarships, which allow access full pupils from all backgrounds, with 89 (2020: 84} pupils receiving such awards. 9 (2020:6) of these benefited fron a remission of fees. External trusts also béovided funds of £17,453 (2020: £33,489) towards individual pupils’ fees:
The Prep Schools continue to offer bursaries and allowances totalling £557,045.
Education
## Academic Stondards
This summer's A Level results saw Stoics achieving-87% A*B grades (2020: 77%). 143 grades were awarded at A* (2020: 81). The GCSE results saw Stoics achieving 56%at grade 7 or above at GCSE level,
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## Trustees’ report (continued)
For the year ended 31 August 2021
The Prep Schools had all their top year leavers accepted into their first choice of a wide range of senior schools and.SHS exceeded their PSB objectives with 100% achieving Level[5][in][ eight][ or][ more][ subjects,][ 95%][at][ Level][6][ and][ 20%][at][ Level][ 7.] SHS achieved.8 scholarship and exhibition awards to senior schools, while WHS achieved 12.
## Pastoral Gare
all staff and volunteersto share The groupiscommitted.to safeguarding and promotingthewelfare ofpupils and expects in this commitment. The Designated Safeguarding tead (DSL) for Stawe School is, Michael Rickner, who is.supported by Louise Springall, Schoo! Counselldr,as the Deputy DSL, end there are DSLs at both Prep Schools. The group's policy for Safeguarding and Child Protection accords with the requirements of the relevant Safeguarding Children Board. It appliesto all school employees, governors and to any volunteers working in the Schooi.
There are processes of safeguarding induction and training in. place, involving staff, governors, volunteers. and contractors, which.aim to ensuré that this policy and safeguarding procedures are known and understood by, those ‘within the School community.
A programme of:cantinuous improvements to the boarding houses in all three schools is expected to continue next year.
## Culture - Sport, Music.and Drama:and other activities
Thé group maintained its reputation in-a wide range of sports and other extra-curricular activities, with pupils encouraged to ‘také part in school, county and national, competitions. Full details of Stowe School's sporting and extra-curricular ‘achievements ca be found on the Stowe website: www.stowe.co.uk: There are links. from there to. the Prep School websites.
The arts and sciences programme, which normally features strongly in the calendar, was restricted this year because of Covid-19 reducing the number of Prep School sciehce-events, music concerts and drama productions.
## Heritage/Restoration
On 7 March 2018 Stowe School Limited agreed the Asset Exchange with The National Trust. This exchange of various leasehold interests in land.and buildings is enabling The National Trust'to restore the Western Garden to its 18 Century condition and Stowe School has built a replacement golf course and will use the Home Farm development[in][the][ future,] Stowe House was open to the public less than norma! during the year because of Covid-19, The School provides support on the historical archives and supports The Stowe House Preservation Trust Limited.
Stowe School has worked with The Stowe House Preservation Trust as it continues to develop future plans: The Stowe House Preservation Trust continues to plan to restore the State Dining Room and continues toseek funding[to][ complete] the future phases of the restoration project. Rather than beginning this project as-originally planned, the.decision was taken te renovatethe Temple Room (the State Drawing Roam).
## Fundraising
The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implicationson their fundraising activities. Stowe. School is supported by SSF while the Prep Scheols carry out their own fundraising. The charity does not carry aut any fundraising activity in order to raise funds from the general public. The charity does not work directly with commercial sponsors or engage professional fundraisers. The Trustees are not aware.of any complaints. made in respect, of fundraising during the year.
The fecus.of SSF, supported by Stowe School, has continued to be on the generation of voluntary funding from alumni, patrons of the School.and supporters of independent education. During the SSF year to 31 duly 2021, funds:of some £2.9 million (2020: £3.3 million) were raised: These included £250k towards the Sixth Form Centre, £143k for general facilities and projects and £2:5m ofendowment and capita! funds for scholarships and bursaries to support those. who might nat be able to attend or remain at Stowe. Charitable donations of cash and assets and grants totalling-£295,760 (2020:
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Trustees’ report (continued) For the year ended 31 August 2021 £238,565)were were receivedby Stowe School during the year. The| costs of the Campaign Office of £516,566 (2020; £525,128) borne by the School. ThePrep intentionSchools. going, forward is that SSF will change its charitable objectsso that it supports both Stowe School and the
## SECTION 172 (1) STATEMENT
Thein Stowe graup of schaols-(“the group”) depends on the:trust and confidenceof its stakeholders to operate sustainably the long term: The welfare of the group’s pupils is of primary concern and the.group seeks to put their interests at the forefront of everythingit does. The group invests in its employees arid supports the communities iri which it operates. The group seeks bursaries andin itsto facilities. generate. appropriate operating surpluses to maintain its: investment: in both. scholarships and The Trustees of Stowe School Limited have acted in accordance-with their duties codified in law, which include their duty tobenefit actin the way in which they consider, in good faith, would be most likely to promote the successof the School for the Section ofits stakeholders asa whole, having regard to the matters set out in-section 172 (1) of the Companies Act 2006. The 172 considerations are embedded in decision making at Governing Body level and throughout the organisation. stakeholders, which.the Trustees have considered, are set out below. ,
## Having regard to the likely consequences of any decision in the long term
The Governing Body. is. mindful that its strategic decisions have long-term implications for the business and its séction-onstakeholders and these are carefuily assessed by the-group’s various committees.and by the Governing Body (See the Structure, Governance and Management on Pages'3 to 6 of the annual report}. This is particutarly the case in settingof the business.the group's budget for-the year when the Board balances the néed for affordable education with the capital needs.
## Having regard:to the interests of the group’s employees
The Governing Body has regard to the interests‘of the Schoal’s employees and it recognisés the importance of effective: employee engagement in thesuccessful functioning of the group. Governors. engage with employees both formally through the variaus Governor committees and informally, for-example, through dinners held prior te Governing Body meetings:
> The group hasa number of effective workforce engagement mechanisms.in place:
- ¢ inciudingEmployeestermlyare kept traininginformeddays. of performance andstrategy through regular briefings from the Head and ELT, * The Head provides termly updates to the Governing Body.on staffing matters and staff matters are discussed-at the weekly ELT meeting in term time.
- Employees can channel views through an employee representative body and through. annual employee surveys:
- *® The-Pay and Conditions Committee allows pay and reward matters to be. discussed-and reviewed.
The Governing Body considers that, taken together, these arrangements.celiver an éffectivé means of ensuring stays-alert to the views of the workforce: the Board
## Disabled Employees
The group is committed to equal opportunities for-all. it is the policy af the group that no job applicant or employee receives less favourable treatment on the grounds of disability. If an employee becomes disabled during the course or of his her employment, every effort is‘made to find suitable alternative employinent within the group and re-training is givenif this is necessary. Stowe Schooi Limited continues to train and encourage the career development of disabled. persons in its employment.
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Trustees’ report (continued) d For the the year ended 34 August 2021
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For the the year ended 34 August 2021
Having regard to the need to foster the group's business relationships with customers; suppliers and others.
## Customers
As a large fee-paying school, the Governing Body regularly reviews the academicand financial performance of thegroup and its pupils and. the affordability of its fee structure. Tne Heads of each-school inthe gtoup communicate regularly with both parents and pupils..in addition, pupil and parental surveys ere regularly commissioned.
## Suppliers.
The group-deals with hundreds.of different suppliers. and major contracts are reviewed and put out te tender where appropriate and are signed off by appropriate members. of ELT and- Governors. The Schao! reports its payment practices every six months. The repor **t** a 31 August 2021 showed that 76 per cent of invoices were paid within 30 days and the average time taken to pay invoices was 25 days.
## The wider community
The group is very mindful of its responsibilitiesto the wider community and of its relationships with its partners, including SHPT, the National Trust, the UTC at Silverstone and the Stowe. Golf Club. members as well as the local community.
## Regulators
The group is regulated both by theGovernment, through Ofsted and ISi,.and the Charity Commission. The Goverhing ‘Body considers its reporting and dealings with the Regulators as ofthe.utmost impertance.
Having regard to the impact of the Company’s cperations on the conimunity and the environment
A summary of its Streamlined Energy.and Carbon report is et out below under Environmental Reporting. Having regard to the dedirability of the Company maintaining'a reputationfor high standards of business conduct
## Corporate governance
Details of the Company's corporate governance are set-out on pages3 to6 of the annual. report.
## Political donations
No donations were made for political purposes (2020:.£nil}.
{2 Stowe School Limited
Trustees’ report (continued)
For the year ended 31 August. 2021
## ENVIRONMENTAL REPORTING
Under the Energy and:Carbon Report Regulations 2018, the Company is required to report on its envirénmental impacts. Thebusinesskey environimental impacts for the Company.aregas, kerosene.and electricity use across the site and the use of been and personal vehicles. Energy usage has been caiculated-using.consumption in the year. Transport mileage has estimated from recorded mileage for group vehicles and from mileage claims forpersonal vehicies. The group considers. energy efficiency as part of its evaluation of projects: The Company has continued to repiace lights with LED fittings.
Comparison year on yearis affected by Covid-19 and the merger with the Prep Schools from 1 January 2024,
UK. Greenhouse gas emissions and energy usé data for the period 1. September 2020 to 31 August 2021
|Scope Tand 2GHG emissich data|||||||
|---|---|---|---|---|---|---|
|||||Tonnes CO,e|||
|Emissions
from
Scope 1{Fuel combustion in buildings)||2021
location-
based
229|2020
.location-
based
ff)|Variance
2021
focation:
market-
based
based
0%
229|Variance
2020
market-
market-based
based
0
0%||
|Scope. 1 (Fue! combustion in vehicles)||32|19|65%
32|19|65%.|
|Scope1(Fuel cornbustion inmobile and.static plant)||1,909|‘1,793|6%,
1,909|1,799|6%|
|Scope2 {Electricity}||668|591|13%
97|64|50%|
|Total||2,838|2,409|__
2,266|1,882||
|Company's chosen intensity metric;|tCO,e/Pupil||||||
|||2021|2020|2021||2022|
|||location-|locatian-|market-.|2020|‘Location|
|||based|based|based|market-based|ys Market|
|Emissions reportedperunit ofthroughput
2.483
2.943
1,969
2,301
26%
IR
OL 2|||||||
|Scope 3 Global.GHG emission datafor period:|||||||
|Emissionirom
2021
2020
Variance
OAT
2020 Variance,
Business travel (air, rail and’vehicies)
5
7
-33%
a|||||||
|Underlying ‘energy data for period||||°|||
|Energy use(kWh)
Electricity||||2021
3,145,973|2020°
2,536,632|Variance
24%|
|‘Natural Gas
Transport Fuel||||1,252,770
152,585|fe
108,023|0%
41%|
|Mobileand Static PlantFuel
Total||||7,886,152
7,434,918
si a
12,437,481
10,079;572
—||6%
23%|
Market-baséd emissions include procured green energy. As shown above, Stowe School procured green electricity, which reduced their scope 2 emissions by 571 TCO2e-and resulted in anintensity metric of 1.969 TCO2e per pupil.
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13 Stowe School Limited
| :
:
: : : :
i
## Trustees’ report (continued)
For the year ended 31 August 2021
## FINANCIAL REVIEW AND RESULTS FOR THE YEAR
Financial Results The financial: results for the year were impacted again by COVID-19 and the loss of income mentioned below was ‘compensated by the reduction in expenditure and the Government's Furlough Scheme. The bigger impact on the financiai ; results were the charitable mergers with the Prep Schools and the £3.97 of net assets acquired as a result, net of merger : costs. Thé Prep Schoo! results include 8 moriths’ figures frem January 2021, making comparisons with last year less : meaningful. i The net income for net income for income for for the year was year was was £4,697 ;084 ;084 (2020: £223,395), £223,395), after including voluntary income including voluntary income voluntary income income of £3,973,058 (the vast vast
The net income for net income for income for for the year was year was was £4,697 ;084 ;084 (2020: £223,395), £223,395), after including voluntary income including voluntary income voluntary income income of £3,973,058 (the vast vast majorityof which was non-cash) arising-from the transfer ofassetsof the Prep Schools (2020: Enil} and of £922,812 other voluntary income (2020: £1,876,738). £530,889 (2020: £1,612,372) of the other voluntary income was from the Government's Furlough Scheme used to reimburse staff costs and £233,508 (2020: £218,096) came from SSF and was used for the development of new facilities and enhancement of existing ones: Investment gains of£96,221 (2020: losses £111,634) have been transferred to the Restricted Funds, which reflects the net movement‘inthe compositicn fee fund. Actuarial gains on defined benefit pension schemes resulted in a transfer of £208 (2020: loss £1,797) to the unrestricted General Fund in relation to the pension deficit re-measurementdue to changes in assumptions.
This resulted in £4,512,580 (2020: £343,884) being allocated.[to][ the][unrestricted][General][Fund][and][a][profit][of][£184,713] (2020: toss £122,286) to the Restricted Fund, which includes £98,505 of restricted funds resulting from the mergers with the Prep Schools.
School fees receivable increased. from £22,102,879 in 2020 to £28,896,512 in 2021. Of these, some £5: million retate[to] the Prep Schoolsfor the eight months since completion of the mergers. School fees receivablefor the year were severely reduced by the reductions offered as a consequence of the Government-imposed lockdown.in the Lent Term. , Resources expended during the year were £30,565,838 (2020: £24,997,310). This is before taking into accountthe receipt of the Government's Furlough Scheme-grant. £6.1 million of this increase relates to the Prep Schools expenditure. Resources expendedfor Stowe School only decreased by 4.7% on 2020. In addition, the group has invested £3.3'million (2020: £535,330} in capital expenditure, of which £3.2 million was forStowe School and £0.2 million was for the Prep Schools. Cash and bank-balances at-32 August 2021 stood at £11,070,241 (2020; £8,451,204), The increase resulted from the reduction in budgeted capital expenditure after the lockdown. The Company entered into aRevolving Credit Facility {RCF) for 5 years, from 36 June 2017; there had been no drawdown.on the RCFas.at 31 August 2021 and plansto extend the RCE for a further 5 years are being actively pursued.
Total funds at 31 August 2021 were £53,787,131 (2020: £49,089,839) ofwhich £53,360,402 (2020: £48,847,822} were unrestricted. Of the total funds, £3.5 million related to. the Prep Schools.
The financial results for the year are reported in the Statement of Financial Activities.
Through its subsidiary, Stowe Enterprises. Limited (SEL), Stowe Schdol Limited makes available its sporting-and other amenities for use.by the public. SEL produced a turnover for the year ended 31 December 2020 of £835,129 (2039: £1,919,466) and a: profit before donation of £141,778.(2019: £610,564), The results were adversely affected by Covid-19. ‘Consolidated-group financial statements have not been prepared as it is considered that they would be of no real value, in viewof the insignificant overall effect ofincluding the results of SEL.
44 Stowe School Limited
Trustees’ report (continued)
For the year ended 31 August.2021
## Reserves Policy
The financial statements show that at 31 August 2021, the unrestricted funds totalled £53,360,402 (2020: £48,347,822) and restricted funds £426,729 (2020: £242,017).
Total unrestricted reserves include a funding deficit of £154,094 {2020: £196,177) calculated under FRS102-in respect of the notional funding deficit on the defined benefit pension plan for non-teaching staff, The Directors believe that this notional funding calculation, which can vary- between surplus and deficit, depending on.the assumptions used at each year end, has no material effect on the Company’s.cash flows manageable out of future income. in the short term and that in the longer terri its effects are The Company's unrestricted reserves are substantially represented by tarigible fixed assets and are not readily available for spending. Excluding the FRS102 pension reserve and revaluation reserve above, the general unrestricted reserves were £53,514,496(2020: £49,043,999), ofwhich £54,674,413 {2020: £48, 774,432) is represented by fixed assets.
TheDevelopment deficit on free reserves at 31 August 2022 of £1,987,426 (2020: surplus £269,567}Isconsistent with the longer term. to deficit is. mainly the Plan cash result flows, whichof the charitableare updated mergers. and reviewedWhilst theby DirectorsDirectors. on consider a regularthat basis.higher The positive change free from reservessurplus: would be desirable, they recognise the demands of capital expenditure to equip the group with up to date facilities and tolevelmaintain the high standard of educational services provided. Therefore achievingthe desired pasitive free reserves. remains a fonger term objective. The policy is managed prudently by ensuring that sufficient liquid assets are available. investment policy and objectives
The Company’s Articles of Association empower it to invest and deal.with the monies of the Company not immediately required as it thinks fit,
Composition fee. funds for Stowe School orily (rot the Prep Schools) aré held under trust drid acministered by Stowe Schoal Limited.
- FUTURE PLANS : The key objectives for the group for the following year are consistent with those stated above, with particular eriphasis on: @ 2022 ta rgets for Az: 80% A*B grades; for GCSE:.55% 7-9 grades: * All Prep School children being accepted into their-first choice of senior schools *« Developingthe themesof the Learning Power. Approach and Change Makers * Working with The Stowe House Preservation Trust to plan fer therestoration of the State Dining Room ¢ Generating, through the Campaign for Stewe, money towards bursaries (including Change 100) and scholarships and for specific projects; including Design, Technology and Engineering and sports facilities
- e Continued integration of Swanbourne House and WincheHou **s** e terSchools into the Stowe.group of schools.
Principal Risks and Uncertainties The Governing Body is responsible for the management of the risks faced by the group and reviews the major risks and groupmeasuresfrom forcarryingmitigation:asout itspartcharitable of an ‘annualobjects process.permanently.The majorIndividual risks are consideredcommittees to beare responsiblethase that wouldfar reviewing prevent and. the currentlymonitoringidentifiedthe managementmajor risks,ofdetailedrisk in theirbelow, particularhas been orarea.is.beingThe addressedGovernors aéarefollows:satisfied that the mitigation of the
+5 Stowe School. Limited
## Trustees’ report (continued)
For the year ended 31 August 2021
|Failuretogovern effectively|Governing Body, Nomination&Remuneration Committee|
|---|---|
|Failureto delivereducational objectives|Educationand PrepSchoolCommittee|
|Failuretosafeguard pupilwelfare|Governing Body, Educationand EstatesCommittees|
|Regulatorynon-compliance|All Committees|
|Fire in Stowe House/PrepSchools|EstatesCommittee|
|Impactofeconomicand political climate|GoverningBodyand FinanceCommittee|
|Major fraud orfinancialmismanagement|FinanceCommittee|
|Major operational failure|Governing Body and AllCommittees|
|Reputational risk|GoverningBodyand AllCommittees|
|Temporaryclosure oftheSchools|GoverningBody and FinanceCommittee|
|In assessing the risks, the impact on group activity, disruption, injury or propertydamage, loss of income, reputation,
managementfocus,missedopportunityandstrategicdirectionchangeareallconsidered.Risksarerecordedina register,
the controls and mitigation plans considered andassessed as totheir impactand likelihood ofmaterialising. Risks are
classed as key, medium concern or manageable. The risk register is updated termly by the ELT and reviewed by
,||
|Committeesatleastannually.||
## Auditors
Saffery Champness LLP has expressed their willingness to remain in office as auditors of the Company.
This report, including the Strategic Report, was approved by the Board on 18 March 2022.
Michael Porter, Company Secretary
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46 Stowe School Limited
## Stowe: School Limited. Independent auditor's report to the members For the year ended 31 August 2021
Opinion Wethe have auditedthe financial statements ofStowe School Limited for thé year ended 31 August 2021, which:comprise statement of firancial activities, balance sheet, cash flow statement 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 Financia! Reporting Standard applicable in the UK and Republic of Ireland (United Kingdorn Generally Accepted Accounting Practice). In our opinion the financial statements:
- cd give a true end fair view of the charitable company’s stateof affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- . have been properly prepared in:accordance with United Kingdom Generally Accepted Accounting Practice; and . have been prepared in accordance with the Companies Act 2006..
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs {UK)):and applicable flaw. Our statementsresponsibilities under those standards are further describedin the Auditor's responsibilitiesfor the auditof the financial section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfitled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate ta 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 cencern basis of accounting in the preparation of the financial statements is appropriate:
Based on the work we have pérformed, we have notidentified any material uncertainties relating to events.or conditions that, individually or ¢olléctively, may cast significant doubt on thecharitable company's ability to continue asa going concern for a period of at least twelve months from-when thefinancial statements are authorised for issue,
Oursectionsresponsibilities of this. report. and the responsibilities of the trustees with respect to going concern are describedin the relevant
## Other information
The trustees are responsible for the ether 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 nat cover the other information and, except.to the extent otherwise explicitly stated in-our report, we: do notexpress.any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistentbe with the financial statements.orour knowledge obtained inthe course of the audit or otherwise @ppears to to materially misstated. If we identify such material inconsistencies or-apparent material misstatements, we are required determine.whettier this gives risé.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. Opinions on other matters prescribed by the Companies Act 2006. In our opinion, based on the work undertaken in the courseof the audit: s the information given in the Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are préparad is consistent with the financial ‘statements; and ° the Trusteés’ Annual Report which includes the Directors’ Report and the Strategic Report has been-prepared in accordance with applicable legal requirements. .
17 Stowe School Limited
ij
; independent Auditoi’s report to the Members (continued) d Matters on whichwe whichwewe are required to'report by exception required to'report by exception to'report by exception by exception exception : In the light of the knowledge and and understandingofof the charitable charitable company.and
:
,: :
: ; : :
~
: ; : : ; :
Matters on whichwe whichwewe are required to'report by exception required to'report by exception to'report by exception by exception exception In the light of the knowledge and and understandingofof the charitable charitable company.and its environment obtained in the course of the aucit, we have not identified material misstatements in the Trustees” Annual Report and Strategic Report.
We have nothing to report in respect of the following matters where the CompaniesAct 2006 requires us to report to youif, in our cpinion: . adequate accounting records have not been kept, or returns adequate for our audit have hot been received from branches riot visited by us; or
. the financial statements are notin agreement with the accounting records.and returns; or ® certain disclosures of trustees’ remuneration specified by law are not made; or ® we have ot received all the information-and explanations we require for our audit.
## Responsibilities of trustees
As explained more fully in theTrustees’ Responsibilities Statement set out on page 3, the trustees (whoare also directors of the charitable company for the purposes of company law) are responsible for the préparation 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 respansible for assessing. the charitable company’s ability to continue as a going concern, disclosing,as applicable, matters relatedta going concern and using the going concern basis of accounting unless the trustees either intend toliquidate the charitable company or to ‘cease operations, or have no realistic alternativeto do's.
Auditor's responsibilities for the audit of the financial statements We have been appointedas auditors: Under the Companies Act 2006 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. R@asonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs {UK} will always detect 4 fnaterial misstatemént 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 ofnon-compliance with laws: and regulations. We design procedures in line with. our responsibilities, cutlined 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.
identifying and assessing risks related to irregularities: We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, inciuding through discussions with the trustees, discussions within our audit team planning meeting, updating our recerd of internal controls and ensuiing these controls operated as intended. We evaluated ‘possible incentives ancopportunities for fraudulent manipulation of the financial statements. We identified laws and. regulations that are of significance in the context of the charitable. company by discussions with trustees and updating our understandingof the sector in which. the.charitable company operates. Laws and regulations ofdirect significance in the context of the charitable company include The Companies-Act-2006, and guidance issued by the Charity Commission for England and Wales.
Further the charitable company is subject to other laws and regulations where the. consequences[of][non-compliance][or][disclosures][ inthe][ financial][statements,][through][significant][fine,][litigation][or] could have a material effect[on][ amounts] restrictions on the charitable comparty’s Operations. We identified the most significant laws and regulations to be the independent School Standards as found in the Education and Skills Act 2008 and guidance issued by theDepartment for Education.
-48 Stowe. Schoal Limited
Independent Auditor's report to the Members (continued)
## 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 charitable company’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 charitable company’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 non-compliance 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 is available on the Financial Reporting Council’s website at: www.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
4 as, Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP 71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE
Date: aoe wal « : GB Apil 2022
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
19 Stowe School Limited
. : : ; : . ,
) : . :
5
; f
:
## Statement of Financial Activities. (incorporating an income and expenditure account)
## For the year ended 31 August 2021
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||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|General|Restricted|
|Fund|Funds|2021|‘2020|
|Notes|£|£|£|£|
|Income|froin:|
|Charitable Activities|
|School fees receivable|1|28,896,512|-|28,896,512|22,201,879|
|Ajcillary trading income|2|190,761|-|1,190,761,|643,162|
|Other|trading activities|
|Non-ancillary|trading income|(covenants)|12|141,778|-|141,778.|610,564|
|Otheractivities|3|23,583|-|23,583.|17,151|
|Investments|
|Bank and other interest|4|1,725|27,472|29,197|82,845|
|Voluntary sources|
|Grants and.donatians|Sa|900,980|11,832|912,812|1,876,738|
|Charitable acquisition|doriations|5p|«3,874,553|98,505|3,973,058|.|
|Total incoming resources|35,029,892|137,809|35,167,701.|25,332,339|
|Expenditure|an:|
|Raising|funds|
|Financing|costs|?|46,421|49,318|95,739|111,803|
|Fundraising and Development|516,566|-|516,566|525,128|
|Total deductible|costs|562,987|49,318|612,305|636,931|
|Charitable|activities|
|Education|29,954,533|-_.|29,954,533-|24,360,379|
|Total expenditure|6.|30,517,520|49,318|30,566,838|24,997,310|
|4,512,372|88,493,|4,600,863|335,029|
|Net Investment|gains/(lasses)|16|-|96,221|||96;224|(111,634)|
|Net income|4,512,372|184,712|4,697,084|223,395|
|Other recognised gains|and|losses:|
|Actuarial gains/(loss}|on|defined: benefit|
|pension schemes|22|208|-|208|(1,797)|
|Net|movement in funds|4,512,580|184,712|4,697,292|221,598|
|Reconciliation of funds:|
|Total funds brought|farward|18|48,847,822|242,017|49,089,839|AB,|868,241|
|Total funds cartied forward|18|53,360,402.|426,729|53,787,131|_|49,089,839|
|All operations|of the|Company|continued|throughout both years and|no operations|were discontinued|in|either year.|in|
|2021,|the Prep|Schools’|operations|were|acquiredby means|of Charitable. Mergers, whereby the Prep|Schools’|assets|are|
|included|as charitable donations net of costs and the Prep Schools’|results are included for the|eight months from January|
|2021;|All|recognised|gains|and|losses|during|the.|year|are included|within|the|Statement|of|Financial|Activities.|The|
|accompanying notes|are an integral|part|of this Statement of Financial|Activities.|
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20 Stowe Scheol Limited
Balance.sheet As at 31 August 2021
||Notes||2021||2020||
|---|---|---|---|---|---|---|
||||£||£||
|Fixed Assets|||||||
|Tangible assets|g||54,674,413.||48,774,432||
|Investment in subsidiary undertakings:|11||164,200||164,300||
|Composition fee-fund investments|16||2,404,700||2,594,087||
||||57,243,313||51,532,819||
|CurrentAssets|||||||
|Stocks|‘13||178,280||204,077||
|Property held for sale
‘Debtors|5b)
14||221,667
9,401,683||-
7,199,716||
|Cash and deposits|||11,070,241||8,451,204||
|||||||||
|Creditors: amounts fallingduewithinoneyear|15||20,871,871
(22,804,765)||-15,854;997
{16,677,908)||
|NetCurrent Liabilities|||(1,932,894)||{822,911}||
|TotalAssetslessCurrent Liabilities|||55,310,419||50,709,908||
|Long-term Liabilities|||||||
|Creditors payable afterone year|||||||
|Coriposition fees.|16||(1,339,266)||(1,399,231)||
|Otherereditors|17||(29,928)||(24,661)||
||||(1,369,194).||(1,423,892)||
|Netassets and liabilities excluding pension liability|||53,941,225||49,286,016||
|Defined benefit pensionscheme liability|22||(254,094)||(196,177)||
|Netassets|||53,787,131||49,089,839||
|||,|||||
|The fundsofthe charity|||||||
|Unrestricted funds:|||||||
|General reserve
Pension reserve|22||53,514,496
(154,094)||49,043,999.
(196,177)|||
||||53,360,402||48,847,822||
|Restrictedfunds|||||||
|General reserve|18||188,794||78,462||
|Revaluation reserve|18||237,935||163,555||
||||426,729||-242,017||
|Totalfunds|18||53,787,131||49,089,839||
|21 Stowe School Limited|||||;||
Balance sheet (continued)
As at 31 August 2021
The financial statements on pages 20 to 42 were approved by the board of Trustees on 18 March 2022 and signed on their behalf
by:
C>> >a ee ee am"
> C>> a ee ee am" 7 Simon Creedy Smith Jonathan Bewes Trustee Trustee
## Company number 187251
The accompanying notes are an integral part of this balance sheet.
22
Stowe School Limited
For the year ended 31 August'2021
## Cash flow statement
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|||||||||
|---|---|---|---|---|---|---|---|
|Notes|2021.|2020|
|£|£|
|Net cash inflow|from operating|activities|20.|5,305,479|3,018,703|
|Cashflows|from|investing activities|
|Interest received|52,|780|44,583|
|Additions to compasition fee investments|{778,237}|(495,366)|
|Realisation|of composition|fee investments|"1,063,844|1,339,897|
|Donations and grants|received|381,923|264,366|
|Cash|acquired on charitable.acquisitions|660,994|-|
|Merger casts|(752,562)|-|
|Payments for tangible fixed assets|(3,315,184}|{1,291,287}|
|Proceeds frorn sale|oftangible fixed ‘assets|:|12,440|
|Net cash outflow from|investing activities|(2,686,442)|(125,367)|
|Change|in cash and cash equivalents|in the|reporting|year|2,619;037|2,893,336|
|CashCash|and|cash|equivalents|at the|beginningof the reporting year|8,451,204|5,557,868|
|and|cash equivalents|at the end|of the reporting year|11,070,241.|8,451,204|
|Net cash movement|21|2,619,037|2,893,336|
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23 Stowe School Limited
For the year ended 37 August 2021
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## Notes to the financial statements
## Accounting policies
: The accounts have been prepared in accordance with. Accounting-and. Reporting by Charities: the Statement of l ‘Recommended Practice applicable ta charities preparing their accounts in accordance with the Financial Reporting ; Standards applicable in the UX and Republic: of Ireland (FRS102), Charities SORP (FRS 102), the Finaricial Reporting ‘ Standard applicable in theUK and Republic of jreland (FRS 102), the Charities Act 2011, and the Companies Act 2006. : Stowe School Limited meets the definition of a public benefit entity under FRS102. The accountsare drawn up on the historical cost basis ofaccounting, as niodified by the revaluation of investment properties and other investments. The accounts include a Statement of Financial Activities (SoFA} rather than a profit and loss account. The. financial ; information ig presented for Stowe School Limited as anindividual undertaking and not for the group. The Directors have takerddvantage of the SORP and’ of the Companies Act 2006 ($405(2)} exemption not to prepare graup financial statements as they considerthe effects of any changes would not be materialto the fina ncial statementsofStowe School Limited. : Having reviewed the funding facilities available to the Company, togéttier with the expected ongoing demand for places : and the Company's future projected cash flows, the Directors have a reasonable expectation that the Company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. The-functionai currency is pounds sterling.
The following accounting policies have been applied consistently in deafing with items, which are considered material in relation to.the Company's financial statements.
a) Income and expenditure
School fees arid operating expenses are included in the financial statements on an accruals basis..-Registration fees are credited to income in the yearin which they arereceiyed. Ail income and expenditure in¢luded in the financial statements is from continuing operations.
- b): Investment income
Investment income is principally from bank balances afd is accounted for on an accruals basis.
‘c) income from voluntary sources Income from voluntary sources (donations)isaccounted for as and when éntitlement arises, the amount can be-reliably quantified and the economic benefit to the Company isconsidered probable. Donationsare accou nted for asunrestricted income and credited to-General Funds, as they relate te specific[in][ year][ projects,][ and][ Trustees][ do][ not.consider][ setting][ up] separate restricted funds for each ordject. Doriations of tarigible assets are capitalised at the estimated value as at the date of donation. Other donations -are accounted forwithinthe SoFA, Donations from chartiable mergers are accounted for within the SoFA as the fair value of net assets Gonated less. any relevant therger costs incurred.
- a). Grants
Grants are credited to income when receivable, irrespective of when the related.expenditure is incurred.
e) Expenditure
Expenditure ls accrued as soon as a liabilityis considered probable, discounted'to present value for jonger-term liabilities. Expenditure attributable to:more than one cost category in.the SoFA is appartioned tothem onthe basis ofthe estiniated amount attributable to each activity in the year, either by refereiice to staff-time or the use of the underlying assets, as
24 Stowe School. Limited
## Notes to the financial staterrients (continued)
appropriate. Irrecoverable VAT is included with the item ofexpenditure to which it relates. Repairs. and maintenance expenditure is charged as an operating expense inthe year in which it-is incurrad.
Ff} Governance costs Governance costs are these incurred in complyiiig with statutory requirements and governance matters.
9} Tangible assets and depreciation thereofExpenditure relatingto the acquisition of and extensionsto freehold land and buildings together with the initial equipping is capitalised and is stated in the financial statements at cost tess depreciation. The Directors are aware that the realisable value is considerably greater than the original cost Jess depreciation.
Tangible assets are stated at cost lass: accumulated depreciation and any provision for impairment. Depreciation is provided on tangible assets other than land and historic buildings (thé cost of which is notsignificant) on the first full month of use, so as to. write off their cost by equal instalments over the expected: uséful lives of the assets-concerned. The estimated useful lives are- considered to be as fallows:
**----- Start of picture text -----**
|||||||||
|---|---|---|---|---|---|---|---|
|Astroturf facility|10 years|Centra!|heating|20 years.|
|Technology equipment|4to|10 years|Freehold|buildings|15 to 50 years|
|Furniture,|fixtures|and fittings|5 to 25|years|Motor vehicles|4.to|7 years|
|Piant and equipment|5 to|25years|Property improvements|51050 years:|
**----- End of picture text -----**
Assets costing under £1,000 are not capitalised.
Land and buildings are reviewed annually for impairmenit..Assets in the course of construction are not depreciated until they are brought into-use.
## h) Heriiagé assets
Stowe School acquired’ Stowe House in 1923; the House is leased to the Stowe House Preservation Trust with a cotérminous leaseback to Stowe School for 99 years. effective from 1 January 2000. The House isoccupied by the School as an operational asset. Stowe House is included in the balante: sheet at cost. The Schoo} considers that its owned paintings, statues and busts on dispiay-and in archive are operational assets.
i) investments and investment properties
Investments are shown at market value, less any provision for diminution in value. Gains and-losses are included in the SoFA. Investments fn subsidiary undertakings are shown at-cost, less any provision for permanent diminution in value.
i} Stocks Stocks are stated at the lawer-of cost and net realisable value.
k) Debtors
Debtors iA respect of schoo] fees are recognised at the point of issuing invoices for the following term. {f the pupil withdraws before the start ofterm, the fees are still due for settlement.
Trade and other debtors are recognised at the settlement amount due after any trade discount offéred. Propaymients are valued at the amount prepaid net of any trade discounts due.
25 Stowe School Limited
Accounting policies fcontinued)
i from the date the date date of acquisition or opening of the deposit account.or similar account. acquisition or opening of the deposit account.or similar account. opening of the deposit account.or similar account. of the deposit account.or similar account. the deposit account.or similar account. deposit account.or similar account. similar account. account. m) Deferred income Deferred income represents income after scholarships, bursaries and discounts awarded for the first term ofthe following : academic'year and therefore relates to the fol lowing financial year. : a”) Cradifors and provisions i: Creditorsprobably resultand provisionsin the transferare recognisedof funds towhere a third thepartycharity and has thea presentamount due obligation to settleresultingthe obligationfrom a can-bepast eventmeasuredthat willor : estimated reliably. Creditors and provisions are normally recognised at their settlement: amount after allowing for any : trade discounts due.
; i :
.
## Notes to the financial siatements (continued)
## 1) Cosh at bank end in hand
Cash at bank and if hand includes cash and short-term, highly Hiquid investments with a short maturity of one year or léss from the date the date date of acquisition or opening of the deposit account.or similar account. acquisition or opening of the deposit account.or similar account. opening of the deposit account.or similar account. of the deposit account.or similar account. the deposit account.or similar account. deposit account.or similar account. similar account. account.
## 0) Operating /eases
Assetsheld'u nderoperating leases are. not capitalised. The costs associated with hirerental are charged directly to income as they arise.
## p) Pensions
Stowe School’s professional teaching staff are members of a Superannuation Scheme operated by the Department for Education. This is a multi-employer defined benefit scheme and individual schools are not ableto identify.their share of : the underlying assets and liabilities of the scheme. Other staff are members.of a defined contribution scheme or a multi-employer defined benefit scheme. The amount: | charged to the. statement of financial activities. in respect of pension costs is the contripution payable in the year. : Differences between contributions payable in the year and cantributions actually paid are shown as either accruals or 4 prepayments in the balance’sheet.
## q) Composition fees
Compositionfees represent payments in advance in respect of School fees for pupils, present and future, and, in respect of Stowe School only, are deposited with Stowe School timited, as Trustee, for investment. A transfer tothe SoFAis. made each term in respectof schoo! fees which are then due,
r) Support costs Support costs-are administration and other costs incurred in supportingthe charitable activities.
s} Critical accounting judgement and key sources of estimation uncertainty
{n the application of the charity’s accounting policies, thedirectors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities. that are ‘not.readily apparent from-other sources. The estimates and associated assumptions are based:on historical experience and. other factors that are consideredte be relevant. Actual results may differ from these estimates.
The éstimates and underlying assumptions are. reviewed on an ongoing basis. Revisions.[to][ accounting][estimates.][are] recognised in the year in which the estimate is.revised where the revision affects only that year, or in the year of the. revision and future years where the revision affects both current and future years.
The key judgement inthese accounts relates to the fair vaiues.applied at the date of acquisition.
26 Stowe Schcol Limited
1 School fees receivable
## Notes to the financial statements (continued)
|||2021|2020|
|---|---|---|---|
|||£|£|
|Grossschool|schoolfees|32,029,564|24,468,357|
|Less:|Scholarships, bursaries.and allowances|(3,133,052)|(2,366,478)|
|||28,896,512|22,101,879|
|Dueto the impact ofCOV!D-19, the fees for theLentterm in allthree schoolsfortheperiodofthelackdownwerereduced
to compensate for the pupils not being abie to usethe facilities‘atthe schools. Pupiiswere taught through the Stowe
Distance LearningProgramme
and othervirtual fearningplatforms.
‘|Dueto the impact ofCOV!D-19, the fees for theLentterm in allthree schoolsfortheperiodofthelackdownwerereduced
to compensate for the pupils not being abie to usethe facilities‘atthe schools. Pupiiswere taught through the Stowe
Distance LearningProgramme
and othervirtual fearningplatforms.
‘|Dueto the impact ofCOV!D-19, the fees for theLentterm in allthree schoolsfortheperiodofthelackdownwerereduced
to compensate for the pupils not being abie to usethe facilities‘atthe schools. Pupiiswere taught through the Stowe
Distance LearningProgramme
and othervirtual fearningplatforms.
‘|
|---|---|---|
|2
Ancillarytrading income|||
||2021|2020|
||£|£|
|Pupilextras|834,290|330,892|
|Registrationfees|146,092|115,893:|
|Rentalincome|109,286|66,848|
|Otherincome:|101,094|129,529|
||1,190,761|643,162|
|3
Otheractivities|2021|2020|
||£|£|
|Interestonoverdueaccounts|23,583|17,151|
|4
Bank andotherinterest|2021|2020|
||£|£.|
|Interestanddividendson-Compositionfeeinvestments{note16)|27,463|55,412|
|Bank interestreceivable|294|24,553|
|Interestfror. SEL on schoo! shap stock loan|1,440|2,880|
||29,197|82,845|
|5b}
Charitable acquisitiondonations|||
|5a} Grantsand Donations|2021|2020|
||£|£|
|Donations|381,923|264,366|
|Government FurfoughScheme|530,889|1,612,372|
||912,812|1,876,738|
Charitable acquisition donations represent the assets received from the Prep Schools in January 2021 at fair value, less relevant costs. The breakdown is as follows:
27 = Stowe School Limited
; : :
: : : : : : : ‘
.
## Notes fo the financial statements (continued)
||SHS|WHS|Total|
|---|---|---|---|
|Fixed assets|1,774,629|3,430,679|5,205,308:|
|Cash|153,889|507,105|660,994|
|Netcurrentliabilities|(466,273)|(674,409)|(1,140,682}|
|Less:||||
|Acquisition costs|{33,071}|(719,491)|(752,562)|
||1,429,174|2,543,884:|3,973,058|
The acquisition costs for WHS include £647,386, in-respect of breaking and repayingthe mortgage'on a property belonging to WHS.
Included in net current liabilities for SHS is a surplus residential property heldfor sale at £221,667-which was sold post year end,
## 6 Analysis of total expenditure
||Staff|Other||||
|---|---|---|---|---|---|
||Costs
£|Costs
£|Depreciation:
£.||2021
£|
|Expenditure.on raising funds
Financing costs. (Note 7)|-|95,739|-||95,739|
|Fundraisingand Development|425,805|90;761|.||516,566|
|Total costsofgeneratingfunds|425,805|486,500|-||612,305|
|Charitable activities
Teaching
Welfare
Premises repairsand maintenance
Supportcosts andgovernance|12,441,938
3,270,960
1,951,446
1,986,788|1,085,835
1,601,178
3,802,131
1,193,748|.
478,704
65,834
'1;987,466
88,505||14,006,476
4,937,971
7,741,043
3,269;044|
|Total charitable expenditure|19,651,132.|7,682,892|2,620,509|;|29,954,533|
|Totalexpenditure|20,076,937|7,869,391|2,620,509||30,566,838|
28 Stowe Schooi Limited
## Notes to the financial statements (continued)
||Staff|Other|||
|---|---|---|---|---|
||Costs
£|Costs
£|Depreciation
£|2020
£.|
|Expenditure on raisingfunds|||||
|Financing costs (Note7)
Fundraising
and.Development|-
447,550|411,803
77,578|-|111,803
525,128|
|Total costsofgeneratingfunds|447,550|‘189,381|-|636,931|
|Charitable activities|||||
|Teaching
Welfare|9,562,820
2,768,542|955,620
1,096,396|509,529
67,344|11,027,969
‘3,932,282|
|Prémises repairs and-maintenance|1,688,127|3,043,893|1,852,775|6,584,795|
|Support costs andgovernance|1,511,239|1,192,644|111,450|2,815,333|
|Total charitable expenditure|15,530,728|6,288,553|2,541,098|24,360,379|
|‘Totalexpenditure|15,978,278|6,477,934|2,541,098|24,997,310.|
|Governance included insupport costs:|||||
||||2021|2020|
||||E|£|
|Remunerationpaid to.auditors for audit services|||35,967|19,500|
|Diréctars—trave! and subsistence costs|||2,687|6,855|
|Othergoverriance costs|||4,367|7,231,|
||||43,027|33,586|
The Directors and Company Secretary did not receive any emofuments during the year (2020: £nit) and nore received retirement or other benefits from the School. Travel expenses Were claimed by 17 (2020: 14) individuals, who were. reimbursed directiy or indirectly £2,687 (2020; £6,855).
In addition to-the above audit remuneration, the auditors performed services totaliing £2,760 (2020: £60,000).
29 Stowe School Limited
i {
: :
i
:
:
:
## Notes to the financial statements (continued)
|7
Financingcosts|||
|---|---|---|
||202%|2020|
||£|£|
|Commitmentfeeon rolling credit facility
Movement inpresent valué-ofComposition fees and admin fees{riote16)|35,000
49,305|35,096
66,183.|
|Bankcharges|11,434|8,467|
|Pension Scheme financing costs|-|2,057|
||95,739|111,803|
|8
Staff'costs||.|
|Total staff.costswere:|2021
£|2020
£|
|Salariesandwages|16,580,771|13,043,394|
|Social security costs|1,539,402|4,259:392|
|Otherpension casts,|2,006,938|1,675,492|
||20,127,111|45,978,278|
|Theageregateemployeeremuneration and benefits ofthe keymanagement personne!|||
|were:|1,343,579.|1,237,818|
|Thetotal staffcostsabave include payments relatingto leaving staffof£58,816 (2020: £60,880).|||
||2021|2020|
||Number|Number|
|The averagenumberofemployees of the company during the financialyearwas asfollows:|||
|Teachingandteaching support staff|305.|169|
|Visiting music teachers|45.|30|
|Establishment andadministrative’
staff|384.|318|
||735|51?|
|TheaverageFTE ofemployeesof thecompanyduring
the financial yearwasasfollows:|||
|Teachingandteaching support staff|252|146|
|visiting music teachers|15|6|
|Establishment and-administrative:staff|279|220|
||546|372:|
|Thenumberofstaffinpensionschemeswasas follows:
MoneyPurchase|459|‘302|
|Teachers’ Pensions|121|122|
||580|424|
30 Stowe School Lirnited.
## Noies to the financial statements (continued)
The Staging date for pension auto enrolment was October 2013 and the most recent re-enrolment date was ‘1 November 2019, which required staff who opted out to elect to be enrolied Or-opt out again. The next re-enrolment date isi November 2022.
**----- Start of picture text -----**
|||||||||
|---|---|---|---|---|---|---|---|
|The number|of|employees|whose emoluments exceeded|£60,000|were:|2021|2020|
|Number|Number|
|£60,001|- £70,000|17|16|
|£70,001|-£80,000|1|2|
|£30,002|- £90,000|2|2.|
|£90,001|-£100;000|2|2|
|£130,001|- £140,000|i|1|
|£200,001|- £210,000|1|ws|
|£210,001|- £220,000|7|1.|
|£270,001|-|£280,000|:|1|
|£280,001|- £290,000|1|=|
**----- End of picture text -----**
Stowe School Limited’s pension contributions for the above 25 (2020: 26) employees totalled £276,534 (2020: £297,951), divided between Teachers’ Pensians £242,056 (2020; £263,453) and other schemes £34,498 (2020:.£34,498)}.
Thethe emoluments ofthe highest paid employee reflect the fact-that employer pension contributions of 16.48%of salary to equivalentTeachers’to thePensionscontributions Scheme ceased foregone. with effect from 34 May 2016, at which time the salary wag increased by.an amount
31 Stowe School Limited
:
;
:
i
:
:
## Notes to the financial statements (continued)
## 9 Tangible fixed assets
**----- Start of picture text -----**
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Furniture,|
|‘;|FréeholdProperty|ImprovementsProperty|Equipment.Plant &|EquipmentComputer|FixturesFittings &|VehiclesMotor|‘Total|
|;|
|:Cost|
|1 September|2020|29,050,380|32,615,268|2,339,856|2,076,400|4,100,682|695,176|70,877,762|
|Fair value on acquisition|2,514,124|2,511,562|123,003|1,800|33,164|21,655|5,205,308-|
|Additions|734,810|2,137,509|126/100|48,758|128,620|139,386|3,315;183|
|;|Disposals|-|:|-|~|63,933|~|+|56,893|-|120,826|
|31|August 2021.|32,299,314|37,264,339|2,588,959|2,063,025|4,262,466|"799;324.|79,277,427|
|:|Depreciation|
|1|September 2020|4,887,051|10,369,844|1,990,966|1,629,787|2,763,613|462,069|22,103,330|
|Charge-for Year|644,712|1,349,341|121,711|147,124|265,398|92,227|2,620,510|
|Disposals|~|63,933|-|56,893:|-|120,826|
|34 August 2021|5,534,768:|14,719,185|2,112,677|1,712,975|3,029,011|497,403:|24,603,014|
|Net|Bock|Value|
|31 August 2021|26,767,551|25,545,154|476,282|350,050|1,233,455|301,924|54,674,413|
|“4 September 2020|24,163,429|22,245,424|348,890|446,613|4,337,069|233,107|48,774,432|
**----- End of picture text -----**
The assets acquired fram the Prep Schoolsdre included at their fair value as atJanuary 2021, when the Prep Schools were acquired by means of charitable mergers.
Within additions, £866,427 (2020: £169,347) ofassets are under construction, most notably the Design, Technology and Engineering building arid the Golf Clubhouse.
-£233,508 (2020:.£218,096) of donations and grants in the cash flow statement were used to fund capital additions in the year.
## 10° Capital commitments
for at the balance sheet date (2020: £170,318).
There was £412,338 of capital expenditure authorised and contracted
‘41. Investment in subsidiary undertakings in subsidiary undertakings subsidiary undertakings undertakings
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|Investment in subsidiary undertakings in subsidiary undertakings subsidiary undertakings undertakings|2021|2020|
|£|£|
|Stowe Enterprises|Limited|- shares|at cast|100|100|
|Stowe Enterprises|Limited|- interest|bearing|loan|164,000|164,000|
|Stowe|School|Developments Limitéd—|shares|at cost|100|100|
|Stowe|Qatar|Limited|— shares at|cost|-|100|
|164,200|164,300|
|Stowe|Qatar|Limited|was dissolved|duting|the|year.|
**----- End of picture text -----**
.
32 Stowe School Limited
For additional inforriation refer to Note'12.-— Related party transactions.
## Notes to the financial statements (continued)
12 Related party transactions Stoweregistered:inand Schaal LimitedEngland. ownsStowe the School whaleLimitedofthe issued allows ordinary SEL to make shareavailable capital oftheStowe faciliEn **t** erprisesiesof the SchoolLimitedfor (“SEL”), use by athe company public to operate the School shop. SEL prepares its anual accounts.to 31 December, air accounting date which the directors consider to be appropriate for administrative reasons. The taxable profits of SEL are donated to the School each year, 2071; £141,778 (2020: £610,564}. The tast audited accounts of SEL were for the. year ended 31 December 2020. The following information is disclosed in respect of-SEL:
**----- Start of picture text -----**
|||||
|---|---|---|---|
|31|Décember|31 December|
|2020|2019|
|E|£|
|Turnover|835,129|1,919,466|
|Expenditure|(693,351)|(1,308,902)|
|Profit for the financial|year|141,778|‘610,564.|
|Donated|to the school|(141,778)|(610,564)|
|Result for the year|-|-|
|Balance|of capital and reserves.|160,226|629,012|
**----- End of picture text -----**
Stowe School Limited recharged costs to SEL during the year of £304,641 (2020: £221,221). As a result of COVID-19,.SEL were unable to undertake any commercial activities from March 2020 onwards. As a consequence less costs were: incurred. SEL received income froim the School for purchases made in the School shop during the year of £65,908 (2026: £80,544), At the year-end the amount owed by SEL to the Schaal was £78,412 (2020: £45,312).
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|The|total taxable profits.donated-to.the|Ca|mpany were:|2021|2020|
|£|£|
|Stowe|Enterprises Limited|(SEL)|141,778|610,564|
**----- End of picture text -----**
AS part of the acquisition in January 2021 of WHS, WHS" trading company, WHS Trading Limited, was transferred to become a subsidiary of SEL. No results of WHS Trading Limited are tecordedfor 2020 in the above SEL figures, During the year to 31. july 2011 the Company acquired the whoie of the issued ordinary share capital ofStowe School ] Developmentsmade Limited ("SSDL”), a company registered in England. The companyhad no turnover (2019: £10,000) and owedbya lossSSDLbefore to thetax Company of £40,212 was (2020:£41,730profit(2020; £2,969)£21,885).in the year to.31 Decembér 2020. At the year end the.amount _SSDL. owns the whole of-the issued share cagital ofStowe UAE Limited and Stowe China Limited. Stowe UAE received no income in the year to 31 December 2020 (2020: £nil). At the year end the amount owed by Stowe UAE to the Company was £3,399 (2020: £3,399}. Stowe China received no income in the year to 31 December 2020 (2020: énil).. At the year end the amount.owed to the Company by Stowe China was £526 (2020: £513).
33 Stowe School Limited
:
:
; .
.
:
, : ;
## Notes to the financial statements (continued)
During the year, Stowe Qatar, a dormant company, was dissolved and: £3,311 owed by the subsidiaryto its parent. was written off.:
A company controlled by Mr R Greaves,2 Trustee, and his family provided supplies to the group totailing £648 fram January 2021, when fhe became'a Trustee. This company supplied WHS before the acquisition of the Prep Schoois.
|13 Stocks|.
2021|2020|
|---|---|---|
||£|E|
|Rawmaterials.andconsumables|‘178,280|204,077|
|Thereplacement.cost ofstocks isriotconsidered to be materiallydifferentfrom their historical cost.|||
|14 Debtors|||
||2021|2020|
|Debtors inrespectof Schcol fees
Otherdebtors|8,450,187
74,688|6,419,102
‘61,183|
|Prepaymentsandaccruedincome
Amountsowed bysubsidiary undertakings {note 12)|752,740
124,068.|654,973
64,458|
||9,401,683|7,199,716|
## 15 Creditors: amounts falling due within one-year
|15 Creditors: amounts falling due within one-yearamounts falling due within one-yearfalling due within one-yeardue within one-yearwithin one-yearone-year|2021|2020|
|---|---|---|
||£|£|
|Deferredincome|12,515,078|8,835:338|
|School fees paid.onaccount|1,418,713|1,566,834|
|Deposits paid on.account
Tradecreditors|‘3,485,483
2,074,931|3,141,941
464,756|
|Other creditors.|589,246|363,530|
|Taxation-andsocialsecurity|414,636|320,833|
|Accruals
Currentportion ofComposition fees{note16)|‘1,479,179
827,499|953,375
4,031,301|
||22,804,765|16,677,908|
‘Deferred income represents.income relating.to the next financial year (see Note 14— Debtors in respect of School fees).
34 Stowe School Limited
|
## Notes to the financial statements (continued)
## 16 Composition fee fund investments
andComposition fees represent fees paid by parents to Stowe School only up te the equivalentof five years’ feesin advance are held separately from the general funds of the School, with Stowe School Limited as Trustee. The Directors ‘have delegatedthe day to-day management of the investmentsto Smith & Williamson Investment Management LLP.
|Themovementonthe compositionfeefundwas:|2021|2020|
|---|---|---|
|Market
valueat 1September
Composition feesreceivedandinvested:
Compositionfeestransferred or refunded|£
2,594,087
755,309|£
3,550,296
446,264|
||.|e|
|Netincomearisingreinvested
Appliedtoschoolfees
Investmentprofit/floss) during the year|22,927
(1,063,844)
96,221|49,058
{1,339,897}
(111,634)|
|MarketValueat31August|2,404,700|2,594,087|
|HistoricalCost at 34August.|2,141,964|2,400,756|
|lnvestments comprise:|||
|Listedinvestments:
UK Fixed interest:|£|£|
||Shares II Plc
Smith & WilliamsonInvestment Funds|1,054,196
528,835|1,223,734
620,275|
|Uk Equities:JPMorganAssetManagement Ltd|4,583,031
§39,126|4,844,009
654,206|
|ClientMoney|2,122,157
4,963|2,498,215
44,756|
|Total investments|||
|Cash
at.Bank|2,127,120
277,580|2,942,971
54,116|
|TotalCompositionfeefundinvestments|2,404,700|2,594,087|
|Assuming pupils remain.at the School,advance feeswillbeappliedasfollows:|||
|Greater
than five years
Between twoand fiveyears
Between oneandtwoyears|E
126,646
573,435
639,184|E
$1,602.
702,757
614,372|
|In oheyearorless|1,399,266
827,500|4,399,232
1,031,301:|
|NetPresentValue|2,166,766|2,430,532|
35 Stowe Schoo! Limited
. ;
: : : :
.
:
|
## Notes to the financial statements (continued)
17 Other Creditars due in more than.one year
||||||2021.|2020|
|---|---|---|---|---|---|---|
||||||£|£|
|AlliedSchoolsAgencypensiondeficit|deficit (seeNote22).|22).|||17,651|24,661|
|Other(lessthan.2years}|||||12,277|-|
||||||29,928|24,661.|
|18 The funds ofthe Charity|||||||
||Unrestricted
General
Fund|Composition.
Fee
Restricted.|StoweHarvard
Restricted.
Fund|Other
Restricted
Funds|Total
Restricted
‘Funds|Total
Funds|
|||Fund|||||
||£|£|£|£|£|£|
|At1September 2020
Netmovementinfunds|48,847,822
4,512,580|163,555
74,380|78,462
7,677|-
402,655|340,522
86,207|49,089,839
4,697,292|
|At34 August 2021|53,360,402.|237,935|86,139|102,655.|426,729|53,787,131|
|Analysis ofNetAssets|||||||
||£|£|£|£|£|£|
|TangibleFixedAssets
Investments
-CurrentAssets
Creditorsamountsfalling|54,674,413
164,200
‘20,683,077
(21,977,266}|.
2,404,700
=
(827,499)|-
:
86,139.
-|-
-
102,655
~|-
2,404,760
188,794
(827,499)|54,674,413
2,568,900
20,871,871
(22,804,765)|
|due within oneyear
Creditors payableafter:|(29,928)|{1,339,266}|-|-|(1,339,266)|— {1,369,194)|
|oneyear
Provisions|(154,094)|-|-|-|-|(154,094)|
|At31August2021|53,360,402|237,935|86,139|102,655|426,729|53,787,131|
Unrestricted Funds Within the Unrestricted Fundsis a pension reserve of £154,094 (2020: {£196,177} relating toa defined benefit scheme provision (see Note 22). Donations of£62,981 were received for the Prep Schools during the year. These were fully spent during the year and are included in unrestricted funds in-thé above table.
## Restricted Furids (Composition and Stowe Harvard}
Within the Restricted Funds is £86,139 (2020: £78,462} relating to the Stowe Harvard Fund, whose funds are to be used towardsthe costs of the Stowe Harvard Fellowship and a revaluation reserve-of £177,965 (2020: £163,555) which reflects the difference between the market value.of the composition fee investments and the net present value of future fee commitments at 31 August 2021 {see Note 16).
An analysis ofthe Funds of the Charity. for last year can be found at Note 25:
36 Stowe School Limited
## Notes to the financial statements (continued)
Other Restricted Funds These représent the following restricted funds at WHS:
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|£|
|Prize Fund|38|
|Bursary.Fund|33,072|
|Giits|Fund|1,751|
|Development Fund|62,794|
|Total|102,655|
|19|Operating|leases|
|Other Assets|- Total commitments|relating|to|operating|leases:|
|2021|2020.|
|Less|£|£|
|than one year|148,042|108|461|
|Between two and|five years|188,317|148,841|
|During the year £145,640 (2020:|£136,091)|was'sperit on|operating leases.|
|Property Assets — Total commitments|relating|to|operating|leases:|
**----- End of picture text -----**
Stowe House:
The house has. been leased ta The Stowe House Preservation Trust Ltd, a coterminous Jeaseback to Stowe School Ltd for 99 years, effective from 1 January 2000 (rio break Clauses). The arrangements were confirmed under Chafity Order 0149530D dated 10 November 1999.
The lease charge represents the-rent payable to The Stowe House. Preservation Trust Ltd far the School's occupation of Stowe House. The lease charge is reviewed every five years (next review 2023); the charge for the year is £155,162 (2020: £155,162),
The total minimum lease payments remaining on this lease are £7.7 million, aver the remaining 77 years.
## National Trust:
An agreement was made on 29 March 1990 between both parties land to lease, surrender and develop various premises and at Stowe, Buckinghamshire for-190 years.
The lease charge represents the rent payable to the National Trust for the School's accupation of certain properties. The tease charge is reviewed every five years. The charge forthe year is £13,830 (2020: 13,830).
The total minimum lease payments remaining on this lease at the current rate of charge are £2.2 million, aver the remaining159 years. The exact amount payable.dependson the properties used by the School,
## SHS:
**----- Start of picture text -----**
|
**----- End of picture text -----**
yearsAn agreementwith payments was madestartingon 5. from-1 JanuarySeptember2021 between2021. SHS-and its landlord to lease-various parts af thePrep Sehooi for 27
37° Stowe. School Limited
: ! : ;
| ; : ;
5;
## Notes to the financial statements (continued)
The total minimum lease payments remaining on these leases are £1.4 million, over the: remaining periods of the leases. The exact amount payable depends in part on pupil numbers.
SKS-also rénts two properties: The leases total £32,250 per annum and the charge for the eight) months to 31 August 2021 is £16,400.
20 Reconciliation of het movement in funds to net.cash inflow from operating activities
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|2021|2020|
|£|£|
|Net income|4,697,083|223,395|
|Donations received|(381,923)|(264,356)|
|Fair value of assets on|acquisition|(3,973,058)|-|
|Interest received:|(52,780)|(44,583)|
|Operating surplus|/ loss for the year|289,322|(85,554)|
|Depreciation charges|2,620,510|2,541,098|
|Profit/(Loss)|on|disposal|of fixed assets|-|5,825|
|Unrealised|loss/{gain)|arising on-reyaluation|of investments|{96,221}|‘111,634|
|Decrease|in stacks|25,797|28,979:|
|(Increase)|in. debtors:|(863,662)|(6,209,531)|
|Increase|in creditors|3,371,509|6;667,835|
|(Decrease) in provision|{41,787}|(41,583)|
|Net cash inflow from operating|activities|5,305,479|3,018,703|
**----- End of picture text -----**
**----- Start of picture text -----**
|||||
|---|---|---|---|
|21|Analysis of changes|innet debt.|
|At|1Séptember|At|31August|
|2020|‘Cash flows|2021|
|£|£|£|
|Cash and cash equivalents|
|Cash|8,451,204|2,618,037|11,070,244|
|"8,454,204,|2,619,037|41,070,241,|
|22.|Pensions Schemes|
|Teachers’ Pensions|
**----- End of picture text -----**
Stowe School participates itv the Teachers’ Pension Scheme {"the TPS") for its teaching staff. The pension charge for the yearincludes contributions payable to the TPS of £4,208,739 (2020: £1,071,093) and at the year-end £142,646 (2020: £101,310) was accrued in respect of employer contributions te this scheme.
The TPS is an unfunded, multi-employer defined benefits pension scheme governed by the Teachers’ Pension Scheme Regulations 2014. Members contributeon a “pay as you go" basis with contributionsfrom membersand the emptoyer being credited to the Exchequer: Retirement and other pension benefitsare paid by public funds provided by Parliament. The. employer contribution rate is set following scheme valuations undertaken py the Government Actuary's Department.
The latest actuarial valuation was completed in 2018, which determined the opening balance.of the cost cap fund and also provided an analysis of the cost cap as required by the Public Service Pensions Act 2013. The employers contribution
38 Stowe. School Limited
|
## Notes to the financial statements (continued)
rate for the TPS. increased to 23.6% from 1 September 2019 and the employers. are also required to pay-a scheme administration levy of 0.08% givinga total employer contribution rate of 23.68%.
Both SHS and WHS have exited the TPS.and teachers ofboth schools contribute to their respective schools’ support staff pension schemes. SHS exited in 2021 and the pension charge includes £78,715-in respect of contributions. payable until May.2021,
Support Staff Pensions Stowe School's suppart staff have the opportunity to join either the Pensions Trust Growth Plan Series 4, the Pensions Trust Flexible Retirement Plan or a Standard Life Group Personal Pension Scheme. These Schemes ‘ate defined contribution schemes. The School also participates ina Pensions Trust muiti-employer scheme (i.e. all employers that employed active members before 1 October 2001) which provides benefits to some 950 non-associated participating emptoyers; the.Grewth Plan Series 1, 2 and 3-are defined benefit schemes inthe UK, It.is not possible for the Schcol ta obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore contribution scheme. itaccounts for the-scheme as a defined The scheme fs subject.to'the funding legislation outlined in the-Pension Act 2004 which came into force on 30-December 2005. This, together with documents issued by the Pensions.Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out-the framework for funding defined benefit occupational pension schemes in the UK.
Because Series 3 liabilities do not contribute tawards the deficit {as investments are matched to liabilitiés) the Trustee contributionshas agreed that employers who have only ever had involvement with Series3 were not required to pay any additional from 1 April 2013. The scheme is classified as-a. ‘last-man standing arrangement’, Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable-ta meet their share of the scheme deficit following ‘withdrawal from the scheme. Participating empioyers are legally required to.meet their share of the scheme deficit-on an-annuity purchase basis on withdrawal from the scheme. ‘A-fult actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794,9mi, liabilities of £926.4mn, resulting in a deficit of £131,5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions tothe scheme-as follows:
Deficit contributions: from 1 April 2019 to 34 January 2025 ~ £11,243,000 per annum (payable monthly and increasing. by 3% on each 1 April).
Unless @ concession has béen agreed with the Trustee the term to 31 January 2025. applies. showedNote that the scheme’s previous valuation was carried out withan effective date of30 September 2014. This valuation has assets. of£793.4m, liabilities af £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions in.the scheme as follows: Deficitby contributions: from 1.April 2016 to 30September 2025 - £12,945,440per annum (payable monthiy and increasing by 3%3% oneachon each 12-April). April} and from 4 April 2016 to 30 Septémber 2028 - £54,560 per annum (payable monthily and-increasing The recovery plan contributions are allocated te each participating employer in line with their estimated share of the “Seri@s 1 and Series 2 scheme jiabilitias. The additional contributions required from Stowe School Limited from 1 April 2013 were agreed at £49,507 per ahnum ‘{rising by inflation annually) for 10 years. The additional contributions made in the year totalled £42,830 (2020: £41,583).
Where the scheme js in deficit and where the company has agreed to-a deficit funding arrangement,. the company recognises a liability for this. obligation. The amount recognised is the net present value of the deficit reductian 39 Stowe School Limited
:
: : : ’
‘ i
:
:
:
## Notes to the financial statements (continued)
contributions payable under the agreement that, relates to the deficit. The present value is calculated using an appropriate discount rate. The unwinding of the discount rate is recognised as a finance-cost.
## Prep Schools
Apart from thecontributions to TPS mentioned aboye, all academic and support staff at the Prep Schools participate in defined contribution pension schemes. The pension charge for the year includes, contributions to these schemes of £287,110 (2020; £nil)
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|Net|present value|of Provision|
|2021|2020|
|"|£|
|Net present value of provision|154,094|196;177|
|Reconciliation|of opening|and|closing|Provision|
|2021|2020|
|€|£|
|Provision at start of year|196,177|233,906|
|Unwinding of the discount factor.{interest expense)|S55|2,057|
|Deficit contribution|paid|(42,830)|(41,583)|
|Re-measurements — impact of any change|in assumptions|(208)|1,797|
|Re-measurements — amendments to the contribution schedule|-|-|
|Provision at.end of year|154,094|196,177|
|Income|and|Expenditure|Impact|
|2024|2020|
|£|£|
|interest expense|955.|2,057|
|Re-measurements — impact cf.any change in.assumptions|(208)|1,797|
|Césts recognised|in income.and|expenditure|account|42,830|41,583|
|Re-measurements—|amendments|to the contribution|schedule|>|-|
|(mpact at end.of|the year|43,577|45,437|
**----- End of picture text -----**
23 ~=Legal Charges
The Company entered into.a Revolving Credit Facifity {RCF)-for five years, from 16 June 2017. The RCF is secured by legat charges on Stowe School’s domestic properties. Discussions ta renew the RCF for a further 5-years are on-going and revised terms have been received.
40 Stowe School Limited
## Notes tothe financial statements (continued)
## 24. Statemerit of Financial Activities {incorporatingan income and expénditure account} for prior year
**----- Start of picture text -----**
|||||||||
|---|---|---|---|---|---|---|---|
|General|Restricted|
|Fund|Funds|2020|
|Income from:|Notes|E|£|£|
|Charitable|Activities:|
|School-fees|receivable’|1|22,101,879|-|22,101,879|
|Aticillary trading income|2|643,162|-|643,162|
|Other trading. activities|
|Non-ancillary|trading income|(covenahts)|12|610,564:|-|610,564|
|Other activities|3|17,152|-|17,151.|
|Investments|
|Bank.and|other interest|4|‘27,314|55,531|82,845|
|Voluntary|sources|
|Grants and donations|5|1,876,738|+|1,876,738|
|Total incoming|resources.|25,276,808|55,531|25,332,339|
|Expenditureon:|
|Raising|funds|
|Financing costs|r|45,620|66,183|111,803|
|Fundraising and|Development|525,128|-|525,128|
|Charitable activities|
|Education|
|_|24,360,379|-|24,360,379|
|Total expenditure|6|24,931,127|66,183|24,997,310|
|Net|Investment|losses.|345,681|(10,652)|335,029|
|Net|-|(111,634)|(111,634)|
|income|345,681|(122,286)|223,395|
|Other recognised|gains.and|losses:|
|Actuarial|(loss)/gains on defined|benefit.|pension schemes|22.|(1,797)|-|(1,797)|
|Net movementin funds|343,834|(122;286}|221,598|
|Reconciliation|offunds:|
|Total funds brought forward|18|48,503;938|364,303|48,868,241|
|Total funds|carried|forward|18|48,847,822|242,017|49,089,839|
**----- End of picture text -----**
41 Stowe School Limited
|
:
: .
|
## Notes to the financial statements (continued)
25 The funds-of the Charity for prior year
||Unrestricted
General
Fund|Composition
Fee
Restricted Fund|StoweHarvard
Restricted
Fund|Total
Restricted
Funds|Total
Funds|
|---|---|---|---|---|---|
||&|£|£|£|£|
|At 1 September2019
Netmovement infunds|48,503,938
343,884|285,960
(122,405)|78,343
119|364,303
(122,286)|48,868,241
221,598|
|At31 August2020|48,847,822|163,555|78,462|242,017|49,089,839|
|Analysis ofNetAssets||||||
||£|f|£|£|E|
|TangibleFixed Assets.|48,774,432|-|-|-|48,774,432|
|Investments
CurrentAssets|164,300
15,776,535:|2,594,087
-|5
78,462|2,594,087
78,462|2,758,387
15,854,997|
|Creditors.amounts falling due’,|(15,646,607)|{1,031,301}|-|(1,031,301)|(16,677,908)|
|within oneyear
Crediters payable afteroneyear
Provisions|(24,661)
(196,177)|(1,399,231)
.|-
-|(1,399,231)
-|(1,423,892)
(196,177)|
|At31August2020|48,847,822|163,555|78,462|242,017|49,089,839|
H
42 Stowe School Limited