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2021-08-31-accounts

BADMINTON SCHOOL LIMITED

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

Company Number: 257012 Charity Number: 311738

BADMINTON SCHOOL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

CONTENTS
Page
Message from the Chair 1
Governors’ Report 2 – 12
Reference and Administrative Details 13-14
Statement of Governors’ Responsibilities 15
Independent Auditor’s report 16- 18
Statement of Financial Activities 19
Balance sheets 20
Cash flow statement 21
Notes to the financial statements 22-40

BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

MESSAGE FROM THE CHAIR

The academic year 2020-21 continued to present all at Badminton and elsewhere with the uncertainty created by the ongoing COVID-19 pandemic. This report shows how we were able to remain agile in overcoming those challenges, both in terms of maintaining the quality of our educational provision and minimising the financial impact of the pandemic in order to continue to move forward with purpose and optimism.

The need to continue to remain responsive and provide excellence on campus, as well as remotely, as the health of the local community and government guidelines required, was a challenge, but one that was well met by the School. Our technological solutions continued to develop in order to provide an excellent remote learning provision to all our pupils during Spring Term 2021 and at other times for individuals as their travel or health needs evolved. For that, and for the way that we also kept pastoral care front and centre, I would like to pay tribute to the dedication and professionalism of all of our teaching and support staff.

Academically, Badminton continues to go from strength to strength. Whilst it is true that the reality of teacher assessed grades means that the results for 2021 on page 3 should be read in that context (and hence we have provided two years of comparative data), our comparative results against the very best independent schools in the South West and nationally continue to show an upward trend. In the Sunday Times “Parent Power” survey published in November 2021, based on blended A Level and GCSE results, we rose from 104[th] to 77[th] place nationally and were placed 4[th] in the South West (and top amongst all independent Bristol schools).

Operationally, we have reacted expeditiously on announcement of each lockdown and when travel constraints had an impact on our community to make appropriate operational adjustments and to value engineer provision accordingly, thus delivering a dynamic range of effective cost saving measures and efficiencies. Whilst significant, these savings did not in themselves compensate for the reduced fee income, the largest segment of which was overseas boarding during the Summer term. For that reason, the financial results for the year only yielded a small surplus. In cash terms, we did not require a further drawdown on our revolving credit facility with Barclays and met our banking covenants. Further, although we had already paused all major capital expenditure prior to the full impact of the pandemic becoming clear, we continued to maintain the estate and were able to undertake several minor projects, such as a refurbishment of the Junior School Library.

The pandemic will continue to represent a key operational, financial and educational challenge for Badminton in the near term, but at time of writing there is continued optimism with vaccination rates increasing, isolation times reducing and the health impact of infections also reducing. Looking forward, Badminton International Ltd has now been created to explore opportunities to introduce Badminton to a wider cohort of students by partnering with selected educational providers internationally. To date investment funds have been received to mature this programme but no binding agreement has yet been agreed, noting that the School remains keen to explore new opportunities of the right quality.

The significant achievements of the School in this academic year are a testament to the strength of community of staff, students and governors and in particular, the leadership of the Head. The student roll for September 2021 was another record, we expect to deliver another exciting learning and community space for all connected with Badminton and can look forward with excitement and optimism to the opportunities that lie ahead.

J D Lewis Chair of Governors 18 March 2022 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The Governing Board (“Board”) of Badminton School (“the School”) presents its annual report under the Companies Act 2006 and the Charities Act 2011 together with the audited accounts for the year ended 31 August 2021.

OBJECTS, AIMS AND OBJECTIVES

Charitable Objects

The principal charitable objective of the School is the management and organisation of a girls’ senior and junior boarding and day school at its site in Westbury-on-Trym, Bristol. The formal Objects of the Charity include the creation and administration of bursaries and scholarships for the encouragement of study and learning.

Vision, Aims and Objectives

Within these Charitable Objects, the Board has developed a vision for Badminton School, which encapsulates the aspiration that “Badminton provides the best preparation for girls living and working in a global society”.

The School’s aims are:

The Governing Board is committed to maintaining and enhancing the academic success of the School within the context of the aims set out above. In reviewing the aims and objectives of the School, the Board has given careful consideration to the Charity Commission’s general guidance on public benefit and its supplementary guidance on advancing education and on fee charging. In particular, the Board has considered how planned activities will contribute to the School’s aims and objectives.

The Governing Board sets fees at a level that will ensure the financial viability of the School and which is consistent with the Board’s aim that the School should be a recognised leader in girls’ education.

PERFORMANCE

School Roll

The average number of pupils on roll during 2020-21 was 505 (2019-20: 496). At September 2021 the School roll number was 539. The Executive Leadership Team are confident about recruitment and interest in the School remains strong. In the year under review, over one quarter of the pupils in the School benefited from financial support and an increasing percentage of this support is subject to means-testing. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

Academic Excellence

Academic excellence is achieved through a holistic approach to teaching and learning, which encourages methods that are challenging and fun. The great resources and passion of the staff, coupled with their knowledge of each pupil, allows each girl to thrive academically and socially.

The emphasis is on the development of skills to support independent learning and encouragement for pupils to take a lead with new approaches. Sports and creative skills are integral to the curriculum, giving pupils a broad outlook and skill set.

Due to the pandemic, all examination results in England over Summer 2021 were generated as Teacher Assessed Grades. This meant that they were produced according to guidelines issued by the Department of Education but generated by prior student classroom and test performances during the year (not external exams). These were then assessed and ranked by teachers, with rigorous methodologies and cross checks applied.

A Level results

2021 2020 2019 2018
Candidates 56 50 51 42
Entries 188 155 160 133
% of candidates with 3+ A*/Agrades 73.2% 50.0% 37.3% 38.1%
% of candidates with AAB or better 80.3% 58.0% 58.8% 50.0%
Entriesgraded A*/A 78.7% 67.1% 55.6% 56.4%
Entriesgraded A*/C 96.8% 100.0% 92.5% 88.0%

GCSE Results

2021 2020 2019 2018
Candidates 48 44 49 43
Entries 469 444 499 425
% of candidates with all A*/9-8grades 22.9% 31.8% 28.6% 9.3%
% of candidates with all A*A/9-7grades 47.9% 56.8% 46.9% 48.8%
Entriesgraded A*/9-8 56.1% 70.3% 63.1% 67.5%
Entriesgraded A*-C/9-4 99.8% 100.0% 96.4% 99.3%

These results placed Badminton in 77[th] place (prior year: 104[th] ) in the prestigious Sunday Times “Parent Power” ranking of top UK Independent Schools, published in November 2021, and in fourth place overall in the South West Region, a performance of which we are justifiably proud.

Away from the classroom, girls have enjoyed a variety of options and continue to excel in Public Speaking, Creative Writing, Languages, Sport, Music, Art, Debating, Drama and Duke of Edinburgh awards. The School’s Science Outreach programme also remains extensive, and Badminton also acts as the South West hub for the Classical Association and hosts their regular lectures. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

Pastoral care

The size of the School coupled with emphasis on excellent pastoral care creates a supportive environment in which each pupil has the confidence to develop into the person that they want to be. During times of remote provision, wellbeing surveys, on-line tutor chats or catch up with Boarding House staff remained an important feature to ensure retention of strong understanding across our community. There is no scope for anonymity and the respectful relationships ensure not only that the pupils are mutually supportive, but also that staff and pupils work collaboratively to tackle issues; a key example would be the new, whole school pastoral system based on 8 pillars of ‘self and surroundings’ which was initiated by the Head Girls and developed by staff. The combination of small form groups and boarding in a progression of age group areas coupled with the mixed age competitive Houses allows strong friendship within and across year groups. During the School day, there is no differentiation between day and boarding pupils.

The PSHCE and tutor programmes are designed to enable the girls to develop the skills to manage their own physical and emotional wellbeing effectively, as well as building wider life skills. Development of RSE programme has been a focus and parents from the parents’ association were supportive in their review of provision.

There is an induction programme at the start of each Year to integrate new girls with existing ones and an ‘outduction’ programme in Upper Sixth covering topics such as managing student finance, how to register with a GP, basic car and home maintenance.

After school care for Day Pupils is provided free of charge and they are able to stay for supper with the Boarders for a nominal charge. Occasional and flexi boarding are also options for Day Pupils and the School acts as a supportive extension of their family home.

The School has continued to develop a series of “strands” inextricably linking the Junior and Senior Schools. Strong academic links now exist in the Spanish, German and French Departments and Music and PE. These links have been forged not only through shared teaching staff which means that academic expertise is enjoyed by pupils across the School, but more coherent schemes of work have also been fostered as there is a greater appreciation of what is studied at the different ages. In addition, the Languages department have done work in the Junior School where pupils there have been able to enjoy access to Language Clubs and this has further developed work done to forge closer relationships between the Junior and Senior Schools. More specifically, work on Character Strengths and co-curricular approaches, such as the Badminton Baccalaureate, give stronger golden threads that weave the Juniors and Seniors closer and create coherence in experience, whilst still giving scope for growth and development. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

Developing the School

The Junior Library was subject to a successful refurbishment project in the Summer of 2021, matching more closely to the experience in. The Senior Library refurbished the year before. Although planning consent was received in May 2019 for “The Hub” project and in March 2020 for the refurbishment of the Lodge which will serve as the main entrance and reception for the School, the Hub specification needed review and so was resubmitted, and we have received a positive response at the time of writing with intention to break ground immediately. The Hub, which will be located next to the Astro pitch to the right of the main drive, will serve as a space both for teaching groups and for self-determined learning as well as a valuable co-curricular break out space. At lunch time it will be a café for Sixth Form pupils and will be a valuable resource for parents and other visitors to the site for events.

Public Benefit

Bursaries

The Board has confirmed its commitment to the provision of continued means-tested bursary funding for pupils who would otherwise find the cost of an independent school education unaffordable.

Bursaries are awarded on the basis of a family’s financial circumstances. The School has limited resources from which it can offer bursaries. Nevertheless, a range of factors are considered in making the awards and the School does not apply a simple family income threshold to determine whether an award may be made. In considering the financial need of an applicant, the size of family and the level of income and capital are taken into account, as a result the number and size of bursaries can vary considerably. In all cases the level of a bursary is determined by the extent of financial need and therefore applicants are required to complete an application form, which provides details of their income and capital. Annual reassessments are made with an updated statement of financial circumstances submitted in all cases. Parents who consider that they may need to apply for bursary support are encouraged to discuss the matter at an early stage, as bursary funds are limited.

In 2020-21, more funds than ever were made available for means-tested bursaries. 58 pupils benefited financially from a total of £497k means-tested bursary awards (2019-20: £437k). This represented 5% of the total Gross fee income for the year (2019-20 4.6%).

Grant-Making and Social Investment Policy

Badminton School is proud to accept pupils with a wide range of academic ability and from a variety of social backgrounds. Although the School is not highly selective, admission from 11+ does require pupils to sit academic examination papers, alongside their extended interview, to ensure that the pupil has the potential to benefit from a Badminton education. Children wishing to enter the Junior School will also spend a day with their peer group to assess their potential.

These measures help to ensure that the School will be able to educate and develop a prospective pupil to the best of that pupil’s potential and in line with the general standards achieved by her peers. They help the School to satisfy itself, and parents, that a potential pupil will cope with the pace of learning and benefit fully from the education that the School provides. The School’s Admissions Policy sets out 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

its admissions procedure in detail and is supported by its policy on bursaries and scholarships. An individual’s economic status, ethnicity, race, religion or disability are not relevant to the School’s admissions procedures.

Access to Facilities

Notwithstanding the impact of the pandemic, the School, via its commercial subsidiary, was able to facilitate public access to its leisure facilities. The swimming pool was used by eight local swim schools. Prior to the lockdown in March our facilities had been used by a wider range of local clubs and organisations than ever, including Mavericks Netball Club, Redland Ladies Hockey Club, Clifton Robinsons Hockey Club and England Hockey. Whilst use of the facilities was curtailed in the summer, we hope to restore the breadth and range of our community use as soon as lockdown restrictions are lifted.

Charities (UK and Overseas)

Pupils take an active involvement in charitable fundraising activities through the School’s ‘Philanthropy Team’ which is pupil and staff lead; it is regarded as a fundamental part of School life and includes participation in a number of national fundraising days and international initiatives.

FINANCIAL REVIEW

Financial Results and Position

The operating surplus for the year to 31 August 2021, being net income before investment gains less income from donations and legacies and related fundraising costs, was £235k (2020: deficit of (£660k). The School offered Covid-related fee discounts of £850k, this figure partially offset by Job Retention Scheme income of £149k.

After donations and legacies and investment gains, the retained surplus for the year was £338k (2020: deficit of £598k) and this amount will be transferred to Reserves. The School generated a net cash inflow from operations of £2,122k (2020: £965k). After capital expenditure of £778k (2020: £422k) and bank loan repayments of £180k (2020: £184k), the School generated a net increase in cash and cash equivalents of £1,081k (2020: £262k). The Board therefore consider the financial affairs of the School to be satisfactory and that this will continue in the foreseeable future.

Financial support

In the year ended 31 August 2021, means-tested awards with a value of £497k 2020: £437k) (including awards of £83k (2020: £113k) from restricted funds) were made. A total of 58 pupils benefited from these awards. These awards helped to widen access to the School. The Governors intend to continue to allocate a significant budget to the provision of means-tested bursary support available to prospective applicants to the School. The financial support available ranges from 5% to 100% of fees, depending on need.

Reserves Policy

The School’s total unrestricted reserves as at 31 August 2021 amounted to £6,153k (2020: £5,787k), which the School considers sufficient to meet its day-to-day requirements and to support its future capital plans. Restricted reserves at 31 August 2021 (excluding the Endowment Fund, unchanged at £30k) amounted to £1,005k (2020: £1,033k) and includes restricted fixed assets of £737k (2020: £766k), with the remainder providing funds principally for bursary and prize funds as set out in the note to the accounts. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The Governors’ Reserves Policy is to produce sufficient surpluses of unrestricted funds each year to maintain and replace its fixed assets and to improve continually the facilities provided by the School to its pupils. To ensure an annual surplus (subject to exceptional losses such as those caused by Covid-19) the School prepares a detailed income and expenditure budget including contingencies for the risk of lost income or additional expenditure that have been identified. Termly accounts are prepared and SLT, F&GP and the Board monitor results closely. External borrowing is used as and when necessary to assist in funding developments. Restricted funds are to be held in cash or investments. In implementing this policy, it is the Governors’ intention to hold such reserves to enable the School’s day-to-day working capital requirements to be met by the careful management of its short-term liquid resources. In practice this is likely to require the holding of additional reserves to fund future capital expenditure to the extent it is not funded by bank borrowings.

The School does not have any free reserves. This is attributable to the definition of free reserves by the Charities SORP specifically excluding fixed assets that are financed by long-term liabilities due to the assets being required by the charity in order to deliver its aims. The Governors' policy is to invest to keep the School at the forefront of the independent school sector. This is partly financed by current borrowing, which is the most cost-effective method of funding fixed assets consistent with the School's cash flow profile. The Governors are satisfied the current level of reserves meets the School’s requirements and Reserves Policy .

Principal Financial Management Policies

The following is a summary of the principal financial management policies:

Impact of Charitable Status on Finances

Parents of pupils at the School have an assurance, as the School is a registered charity, that all the income of the School must be applied for educational purposes. The Board of Governors remains confident that the School brings substantial benefits to its pupils and to the local and wider community through the education that it offers.

Fundraising Practices

The Governors are aware of the Charities (Protection and Social Investment) Act 2016 and recognise the importance of meeting the highest standards of practice and care in relation to fundraising activities. The School is registered with the Fundraising Regulator and their fundraising code of practice. Any submission made by a member of the general public to the Fundraising Preference Service (provided by the Fundraising Regulator) would be made notifiable to Badminton School. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The School only raises funds from Old Badmintonians, parents, staff and those with a personal connection to the School and does not undertake fundraising campaigns to the public. The origin of unsolicited donations and legacies would be considered. No complaints were received in the year relating to the School’s fundraising activities.

Investment Policy

The Governors’ investment powers are governed by the Memorandum and Articles of Association which requires all investments to be held in such funds as the Governors see fit, in accordance with English law. The investment objectives are to maintain a steady income stream from the investment assets, which were valued at £238k at the balance sheet date, to contribute towards bursaries. Governors are satisfied that the investments have performed in line with expectations in 2020-21, taking into account market conditions.

Freehold Land and Building s

The movements in fixed assets are shown in Note 8 to the Accounts.

CONNECTED AND RELATED CHARITIES

The following related entities have not been incorporated in these financial statements as their activities are not under the control of the Governors of Badminton School:

PLANS FOR FUTURE PERIODS

The Board of Governors intends to continue its current strategy of maintaining the School’s position in a highly competitive marketplace by investing to provide a high-quality education for the School’s pupils. The Board’s detailed direction to the Executive Leadership Team for the next academic year remains essentially unchanged. However, the Board has begun a full review of its strategy to ensure the School’s vision, its educational and pastoral offer, and its impact on our community remains relevant and valued over the next decade.

The exceptional academic success enjoyed during 2020-21 and prior years is evidence of the value added by a Badminton education. This continued success in the classroom, balanced by fine extracurricular activities, remains a high priority. Badminton continues to look for opportunities to enrich the educational experience and to future proof the School as a business. Exploratory conversations around several educational partnerships are in progress.

The School plans to continue its initiatives to widen accessibility. The policy on bursaries and scholarships is a central plank of this policy. The importance of the letting of the School’s first-class facilities to other schools as well as community groups, clubs and other charities remains of immense importance in the School’s aspirations to demonstrate real public benefit.

The Board acknowledges the importance of providing sufficient resources for the continuing routine reactive and preventative maintenance of the buildings, fixtures, fittings and grounds of Badminton School including the Grade II Listed Northcote House. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

During the coming five years this will remain a high priority. Badminton has never constructed new buildings unless there is a strong educational justification. The plans for the Hub and the Lodge have been reinvigorated further to a Covid-related delay and are projects which will bring real improvements to the facilities available to pupils and to the wider community.

The Board of Governors systematically review the School’s Risk Register annually, both in the sub-committees and at Full Board level. The risks, divided into six categories according to the committee which oversees them (Strategic, Other Board Level Risks, Finance & General Purposes, Education & Welfare, Risk, Regulation & Compliance and Property) are therefore reviewed in detail by the committees in the Autumn Term and the Board every Spring. The School’s Senior Leadership review the risks prior to presentation to committees.

The ongoing risks and uncertainties presented by the Covid pandemic have formed a particular focus of this risk-based approach and the Board has worked closely with the School’s leadership team on mitigation measures where possible and in fostering a culture of transparency and regular communications with pupils, parents, staff and all other stakeholders.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks identified, which face the School, include the following:

EXTERNAL UNCERTAINTIES

Mitigating strategies

FINANCIAL RISKS

Mitigating strategies:

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

Through the risk management processes, the Governors are satisfied that the major risks have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The School operates through a limited company (No. 257012) with an authorised share capital of fifty £1.00 shares of which 26 have been issued. All 26 shares are held by Badminton Trust. None of the Governors had any interest in the shares.

Governing Document

The School’s governing document is its Memorandum and Articles of Association dated 10 June 1931, as amended by Special Resolution passed on 6 April 1949.

Recruitment and appointment of Trustees and governors’ interests

The Board of Governors is self-appointing and service on the Board is for a set term. Governors are required to retire by rotation on a three-year cycle. Governors may be re-elected on completion of their term to provide continuity. The Trustees are constantly seeking to recruit and appoint high calibre volunteer Trustees to provide a broad spectrum of experience and skills. The Board seeks to have representation from professions such as the law, finance and construction, from a general business or commercial background, from former pupils and parents as well as the education sector.

The Board of Governors have carried out a detailed skills audit and self-evaluation and identified areas of need for targeted recruitment of new governors. New Governors are formally inducted into their role, including Board Policy and Procedures through a series of formal briefings by the Chair of Governors, Heads of the Senior and Junior Schools and the Clerk to the Governors. All Governors are encouraged to attend AGBIS seminars and other appropriate events throughout the year to maintain an up-to-date knowledge of their role.

Decision making

The Board of Governors will routinely discuss and agree issues without a vote but in the case of financial or contentious issues the Chair will call for a vote with the resolution being carried by a simple majority. Within the School the Head has executive authority although the Director of Finance and Operations (DFO), in respect of financial matters, remains answerable to the Finance and General Purposes Committee, acting on behalf of the Full Board.

Organisational structure of the Charity

The Trustees, also known as the Board of Governors, provide strategic leadership to the School. They formally meet three times a year with the Head and the DFO in attendance. The School’s DFO also serves as the Clerk to the Governors. The Main Board is supported by a series of sub-committees, which also generally meet three times a year providing written reports to the Board.

The day-to-day running of the School is delegated to the Executive Leadership Team (ELT), made up of the Head, Senior Deputy and the DFO. The ELT utilises a Senior Leadership Team (SLT), made up of Deputy Heads to assist in the leadership of the School. The DFO has the additional responsibility of acting as the finance director responsible to the Board through the Finance and General Purposes Committee. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The work of the Board of Governors is carried out via sub-committees, which are Education & Welfare, Finance & General Purposes, Risk, Regulatory & Compliance, Property and also the Staff Council. The Board also carries out work via the Development Committee and the Health and Safety Committee. As well as the SLT, the Headmistress appoints Middle Leaders and Heads of Department throughout the school structure to assist in the running of the organisation. Wherever sensible and appropriate and in order to encourage financial ownership and responsibility, Heads of Department manage their own budgets which are formally delegated by the Headmistress through the DFO. All other staff members report to the relevant member of the SMT, or a relevant Middle Leader who sits under a senior manager as part of the organisational structure.

Relationship to Other Charities

Badminton School actively supports the attainment of the highest standards in the independent schools sector through membership of organisations such as the Boarding Schools’ Association (BSA), the Girls’ School Association (GSA), the Independent Association of Prep Schools (IAPS), the Association of Governing Bodies of Independent Schools (AGBIS) and the Independent Schools Bursars’ Association (ISBA). The School cooperates with many local charities in their ongoing endeavours to widen public access to the environment and facilities of the School.

Remuneration of Key Management Personnel

The Governors consider that they, together with the Executive Leadership Team, comprise the Key Management Personnel. All Trustees give of their time freely and no remuneration was paid in the year.

The pay and remuneration of the Senior Leadership Team is set by the Head, in consultation with the Chair and Vice-Chair of Governors and the Chair of F&GP, whilst the remuneration of the Head is set by the Chair and Vice-Chair of Governors and kept under annual review.

The Board intends to be in the upper quartile for pay for senior roles in the independent school sector. The Governors have given delegated authority to the Headmistress to pay higher salaries for exceptional candidates where this is in the interest of the School.

Volunteers

Badminton School benefits from the assistance of volunteer parents who provide social and informational support for each other and the wider Badminton Community. This voluntary organisation known as “ Involved ” fulfils the role of a Parent Teacher Association found in many other schools. There are other volunteers such as leaders of Duke of Edinburgh expeditions and confirmation classes who are willingly give up their expert time. The Board thanks these volunteers for their invaluable support and hard work. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

Subsidiary Entities

The School has two fully owned trading subsidiaries. Badminton Enterprises Limited was incorporated on 16 December 2015 as a company limited by share capital registered in England and Wales, company number 09919323, and is established to generate income from the letting of School facilities. The Company pays all of its profits to Badminton School Limited under the gift aid scheme for reinvestment in the School. This includes the letting of the Sports facilities, swimming pool, the all-weather pitch and the School’s facilities for holiday sports camps and holiday language schools for overseas students.

Badminton School International Limited was incorporated on 8 May 2019 as a company limited by share capital registered in England and Wales, company number 11985814, with the intention to develop new revenue streams through partnerships overseas. 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Name of Charity Badminton School Limited Trading Name Badminton School The Trustees/Board of Governors Mr I Ray BSc (Hons), LLD (Hons), Barrister at Law – Chairman (ew) (fgp) (p) (sc) (d) (Resigned 2 July 2021) Mr J D Lewis MDA BSc MInstRE (p) Chairman (from 2 July 2021) Dr M Chamberlain BA (Hons), MA, PhD (fgp) (sc) (d) Mr J Chippendale BSc (Joint Hons) (ew) Mr A Couper BSc, FIA (fgp) Mrs K Crosse MA Cert Ed (Appointed 11 September 2021) Mr R Egelman (Appointed 11 September 2021) Miss H Jackson (rrc) Ms A Jarratt BA (Hons) FCA (fgp) (p) Mrs A Joseph LLB (rrc) (d) Mr M Keogh MBA (Appointed 11 September 2021) Ms S J Mumford LLB (Hons) (rrc) (Resigned 2 July 2021) Dr S Otton MA MBBChir FRCP FRCPath (ew) Ms A Symington (Appointed 11 September 2021) Mr D Thomas (ew) Mrs L Thomas LLB (Hons) (p) Miss A Wallace MA, MPhil (Cantab), PGCE (Oxon) Mrs A Webb (ew) (d) Ms H Wheelhouse ACA (fgp) (rrc) (Resigned 2 July 2021)

(d) Development Committee

(sc) Staff Council 

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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS (Continued)

Head Mrs R Tear BSc Hons, MA, PGCE, PGDip

Director of Finance and Operations		 Mrs A C Sheehan (Resigned 30 Sep 2020)
Director of Finance and Operations
(Interim) Mr JRC Sharp MA (Cantab) ACA (Resigned 1 July 2021)
Director of Finance and Operations Mr M R Waymouth MA MCGI Cert IoD CMgr FCMI

Charity Registration Number		 311738
Company Registration Number 257012

Registered Office		 Badminton School
Westbury-on-Trym

Independent Auditors		 Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG

Bankers		 Barclays
4 Queen Street
Bath BA1 1HE

Solicitors		 Veale Wasbrough Vizards LLP
Narrow Quay House
Narrow Quay
Bristol BS1 4QA
Insurance Brokers Gallagher
6thFloor
Temple Circus House
Temple Way
Bristol BS1 6HG 
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BADMINTON SCHOOL LIMITED GOVERNOR’S REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2021

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the School and of the surplus or deficit of the School for that period. In preparing those financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the School and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the governing document, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

The Governors confirm that the Accounts comply with relevant requirements of the Governing Document and with current statutory requirements. The Governors confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regards to the Charity Commission’s general guidance on public benefit.

PROVISION OF INFORMATION TO AUDITORS

The Governors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the Governors have confirmed that they have taken all of the steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

A resolution proposing the appointment of auditors will be tabled at the Annual General Meeting.

In approving the Governors’ Report, the Governors also approve the Strategic Report in their capacity as company directors.

On behalf of the Board

J D Lewis Chair of Governors 18 March 2022 

15

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BADMINTON SCHOOL LIMITED

Opinion

We have audited the financial statements of Badminton School Limited for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Governor’s Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

16

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BADMINTON SCHOOL LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governor’s Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the governor’s responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

17

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BADMINTON SCHOOL LIMITED

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the independent school regulations, safeguarding regulations, health and safety requirements, GDPR, employment law and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011 and consider other factors such as payroll tax.

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

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

Use of our report

This report is made solely to the 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.

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place

London EC4R 1AG

Date: 

18

BADMINTON SCHOOL LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2021

Restricted and
Unrestricted Endowment Total Total
Funds Funds 2021 2020
Notes £’000 £’000 £’000 £’000
INCOME FROM:
Charitable activities
Fees receivable 2 9,315 - 9,315 8,524
Extras – optional subjects 320 - 320 250
Other educational income 88 - 88 124
Other trading activities
Lettings 121 - 121 95
Investments - - 1
Donations and legacies - 62 62 85
Grant income 149 - 149 511
----------------------- ------------------- --------------------- ---------------------
TOTAL INCOME 9,993 62 10,055 9,590
----------------------- ------------------- --------------------- ---------------------
EXPENDITURE ON:
Raising funds 4 7 - 7 4
Charitable activities
School operating costs 4 9,620 131 9,751 10,161
--------------------- ------------------- --------------------- ---------------------
TOTAL EXPENDITURE 9,627 131 9,758 10,165
--------------------- ------------------- --------------------- ---------------------
NET
SURPLUR/(DEFICIT)		 BEFORE 366 (69) 297 (575)
INVESTMENT GAINS
Investment gains / (losses) 9 - 41 41 (23)
--------------------- ------------------- -------------------- --------------------
NET INCOME 366 (28) 338 (598)
Fund balances brought forward 5,787 1,033 6,850 7,448
----------------------- ------------------- ----------------------- -----------------------
FUND BALANCES CARRIED FORWARD 16,17 £6,153 £1,005 £7,188 £6,850
============ ========== ============ ============

All of the School’s activities relate to continuing operations.

There are no other gains or losses other than those set out above. The notes on pages 22 to 40 form part of these accounts.

Comparative figures for unrestricted and restricted movements are shown in note 23. 

19

Company number: 257012

BADMINTON SCHOOL LIMITED

CONSOLIDATED AND CHARITY BALANCE SHEETS AT 31 AUGUST 2021

GROUP GROUP CHARITY CHARITY
2021 2020 2021 2020
Notes £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 8 11,964 11,985 11,964 11,985
Investments 9 238 196 238 196
----------------------- ----------------------- ----------------------- -----------------------
12,202 12,181 12,202 12,181
CURRENT ASSETS
Debtors 10 322 529 286 538
Cash at bank and in hand 3,291 2,210 3,258 2,127
---------------------- ---------------------- ---------------------- ----------------------
3,613 2,739 3,544 2,665
CREDITORS: Amounts falling
due within one year 11 (3,545) (2,932) (3,542) (2,929)
----------------------- ----------------------- ----------------------- -----------------------
NET
CURRENT		 ASSETS / 68 (193) 2 (264)
(LIABILITIES)
----------------------- ----------------------- ----------------------- -----------------------
TOTAL ASSETS LESS CURRENT 12,270 11,988 12,204 11,917
LIABILITIES
CREDITORS: Amounts falling 12 (5,082) (5,138) (5,082) (5,138)
due after one year
------------------------ ------------------------ ------------------------ ------------------------
NET ASSETS 7,188 6,850 7,122 6,779
============= ============= ============= =============
FUNDS AND CAPITAL
Share capital 15 - - - -
Endowment funds 16,17 30 30 30 30
Restricted funds 16,17 1,005 1,033 1,005 1,033
Unrestricted funds 17 6,153 5,787 6,087 5,716
----------------------- ----------------------- ----------------------- -----------------------
TOTAL FUNDS £7,188 £6,850 £7,122 £6,779
============ ============ ============ ============

The financial statements were approved and authorised for issue by the Board of Governors on 18 March 2022 and were signed below on its behalf by:

J D Lewis A Jarratt
Chair of Governors Governor

The notes on pages 22 to 40 form part of these accounts. The parent charity’s surplus for the year was £301k (2020: deficit of £388k). 

20

BADMINTON SCHOOL LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

2021 2020
Note £’000 £’000
Net cash inflow from operations:
Net cash provided by operations A 2,122 965
Cash flows from investing activities:
Income from investments - 1
Interest paid (83) (98)
Payments to acquire tangible fixed assets (778) (422)
-------------------- --------------------
Net cash used in investing activities (861) (519)
Cash flows from financing activities:
New bank loan finance - -
Bank loan repayments (180) (184)
-------------------- --------------------
Net cash provided by financing activities (180) (184)
--------------------- ---------------------
Change in cash and cash equivalents in the reporting period B 1,081 262
Net cash and cash equivalents at beginning of period 2,210 1,948
---------------------- ----------------------
Net cash and cash equivalents at end of period B £3,291 £2,210
=========== ===========
A. RECONCILIATION OF NET INCOME TO 2021 2020
NET CASH INFLOW FROM OPERATIONS £ £
Net income 338 (598)
Interest payable 83 98
Interest receivable - (1)
Investment losses / (gains) (41) 23
Depreciation of tangible fixed assets 799 911
Decrease / (increase) in debtors 206 (58)
(Decrease) / increase in creditors 737 590
--------------------- ---------------------
Net cash inflow from operations £2,122 £965
=========== ===========
B
ANALYSIS OF CHANGES IN DEBT
At At
1 September 31 August
2020 Cash flows Other changes 2021
£’000 £’000 £’000 £’000
GROUP
Cash at bank and in hand 2,210 1,081 - 3,291
Bank loans – current (184) 180 (180) (184)
Bank loans – repayable after one year (3,617) - 180 (3,437)
----------------------- -------------------- --------------------- -----------------------
£(1,591) £1,261 - (£330)
============ ========== =========== ============ 
21

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) Second Edition.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 August 2021 and the comparative information presented in these financial statements for the year ended 31 August 2020. The financial statements are drawn up under the historical cost convention except that investments are carried at market value.

The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 10 June 1931 (company number: 00257012) and registered as a charity (charity number: 311738).

Preparation of accounts on a going concern basis

The Governors consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives Governors confidence the charity remains a going concern for the foreseeable future.

Group financial statements

These financial statements consolidate the results of the School and its wholly-owned subsidiary Badminton Enterprises Limited on a line by line basis. In accordance with Section 408 of the Companies Act 2006, no separate Statement of Financial Activities is presented for Badminton School Limited.

The school has not consolidated the results of its wholly-owned subsidiary Badminton School International Limited on the basis this is not material for the purpose of giving a true and fair view. Further details can be found in note 3.

The Charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement within the consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Governors are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

22

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

Income recognition

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contribution received from restricted funds, are accounted for in the period in which the service is provided.

Income from donations and legacies is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Grant income relates to the Government’s Coronavirus Job Retention Grant (CJRG) and is recognised under the accruals basis in line with staff costs .

Investment income is accounted for on an accruals basis.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is allocated to expense headings on a direct cost basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Expenditure on raising funds consist of interest payable on bank borrowings and discounts under the Fees in Advance Scheme.

All costs associated with the provision of education are allocated to charitable activities.

Governance costs comprise the costs of running the School, including strategic planning for its future development, external audit, and all other costs of complying with constitutional and statutory requirements.

Intra-group sales and charges are excluded from trading income and expenditure.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised with the exception of investments, which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. 

23

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

Tangible fixed assets

Freehold land and buildings, major extensions and improvements are all capitalised. Expenditure relating to other items costing £1,000 or more with a useful life in excess of one year will also be capitalised.

Depreciation is provided on all tangible fixed assets retained for use by the School, other than freehold land, at rates calculated to spread each asset’s cost, less its estimated residual value, evenly over its expected useful economic life, which for each class of asset has been agreed as follows:-

Assets in the course of construction nil Freehold buildings 50 years Improvements to property 10 – 20 years IT infrastructure 8 – 10 years Furniture and equipment 6 – 10 years Motor vehicles 8 years Computers 4 years All weather pitch 6 – 25 years

Investments

Investments are a form of basic financial instruments and are initially shown in the financial statements at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.

Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Fees in Advance Scheme

The School operates a Fees in Advance Scheme under which parents may pay in advance, in part or in full, for education that is to be provided in future years. Amounts received in advance are shown as liabilities until they are either taken to income in the term to which they are applied or else refunded. 

24

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

Fund accounting

Unrestricted funds are donations and other income receivable or generated for the objects of the charity.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Taxation

The company is a registered charity and, as such, its charitable income is exempt from tax, so long as its income is applied for charitable purposes only.

Operating lease commitments

Rentals in respect of assets held under operating leases are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.

Employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Pensions

Following the withdrawal from the Teachers’ Pensions scheme on 31[st] Aug 2020, the School now offer a Defined Contribution scheme for Teachers that is specific to Badminton. The name of the scheme is the ‘Aviva Pension Trust for Independent Schools’ (APTIS).

For non-teaching members of staff, the School operated a group occupational pension scheme until 30 September 2001. After that date the School commenced a group personal pension plan and a stakeholder scheme was also available. The assets of these schemes are held separately from those of the School being invested in insurance companies. 

25

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

2. FEES RECEIVABLE 2021 2020
£ £
Gross fees receivable 11,290 9,440
Less: Allowances (1,300) (345)
Bursaries (497) (437)
Scholarships (261) (247)
---------------------- ----------------------
9,232 8,411
Add back bursaries and scholarships funded by restricted funds 83 113
---------------------- ----------------------
£9,315 £8,524
=========== ===========

3. INCOME FROM SUBSIDIARY’S TRADING ACTIVITES

The Charity owns the whole of the share capital of Badminton Enterprises Limited, a company registered in the United Kingdom with number 9919323, which was incorporated on 16 December 2015. The company’s principal activities are the letting of School facilities including the swimming pool, the allweather hockey pitch and providing the School’s facilities for holiday sports camps and holiday language schools for overseas students. The company pays all of its profits to Badminton School Limited under the Gift Aid scheme. The company intends to distribute its profits to the parent charity during the 2021 financial year.

Its trading results for the year, as extracted from the audited accounts, are summarised below:

2021 2020
£’000 £’000
Turnover 121 95
Cost of Sales (10) (3)
--------------------- ---------------------
Gross Profit 111 92
Administrative Expenses (45) (21)
--------------------- ---------------------
Net Profit 66 71
Profit on ordinary activities before taxation 66 71
Taxation
--------------------- ---------------------
Profit for the financial period £66 £71
=========== ===========
Distributions
Gift Aid to Badminton School (71) (258)
Reserves brought forward and carried forward 66 71
=========== ===========

At 31 August 2021 the company had assets of £71k, liabilities of £5k and share capital of £1. 

26

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The Charity owns the whole of the share capital of Badminton School International Limited, a company registered in the United Kingdom with number 11985814, which was incorporated on 8 May 2019.

The company’s principal activities are to explore opportunities for educational consultancy, potential for partnerships with capital investors in the educational area to share Badminton’s expertise and brand, and to raise capital for the Badminton Trust. The Board agreed a Memorandum of Understanding (dated 8 January 2021) with an international partner to develop a Project Agreement to open the first of a number of schools overseas following a period of consultancy to develop the project.

Its trading results for the year, as extracted from the audited accounts, are summarised below:

2021 2020
£’000 £’000
Turnover 70 -
Administrative Expenses (47) -
---------------- -------------------
Profit for the financial period £23 -
======== ==========
4. ANALYSIS OF Staff Other
EXPENDITURE Costs Depreciation Costs Total
2021 2021 2021 2021
£’000 £’000 £’000 £’000
Raising funds
Trading costs - - 7 7
Fundraising costs - - - -
Charitable activities
Finance - - 100 100
Marketing 170 - 295 465
Teaching costs 4,242 134 129 4,505
Welfare costs 1,099 - 94 1,193
Premises costs 269 634 856 1,759
Grants, awards and prizes - 29 102 131
Support costs 742 2 831 1,575
Governance costs - - 23 23
--------------------- ------------------- -------------------- --------------------
£6,522 £799 £2,437 £9,758
============ ========== ========== =========== 
27

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

4. ANALYSIS OF EXPENDITURE (CONTINUED)

Comparative analysis of total expenditure

ANALYSIS OF Staff Other
EXPENDITURE Costs Depreciation Costs Total
2020 2020 2020 2020
£’000 £’000 £’000 £’000
Raising funds
Trading costs - - 2 2
Fundraising costs - - 2 2
Charitable activities
Finance - - 217 217
Marketing - - 232 232
Teaching costs 5,283 179 119 5,581
Welfare costs 760 - 114 874
Premises costs 281 700 725 1,706
Grants, awards and prizes - 29 162 191
Support costs 669 3 660 1,332
Governance costs - - 28 28
--------------------- ------------------- ---------------------- --------------------
£6,993 £911 £2,261 £10,165
============ ========== ============ ===========
GOVERANCE COSTS 2021 2020
£’000 £,000
Governors’ training and expenses - 2
Auditors remuneration – audit 18 18
Auditors’ remuneration – other 5 5
Other - 3
-------------------- --------------------
£23 £28
========== ==========

During the year 2021 Governors received reimbursement for travel expenses totalling £nil (2020: six Governors totalling £206), £nil for training and subscriptions (2020: £994), £nil for accommodation and subsistence (2020: £313), and £247 for sundry costs (2020: £nil).

The company has purchased indemnity insurance on behalf of the Governors. The level of cover received is £5,000,000. It is not possible to identify the cost of this cover as the premium is not separately analysed by the Company’s insurance brokers. 

28

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

5. STAFF COSTS 2021 2020
£’000 £’000
Salaries and wages 5,275 5,574
Social Security costs 483 501
Pension costs 752 906
Redundancy and termination payments - -
Other costs 12 12
----------------------- -----------------------
£6,522 £6,993
============ ============
The average number of employees during the year was as follows: 2021 2020
Number Number
Teaching staff 108 115
Support and administration 121 119
-------------- --------------
229 234
======= =======

The number of employees whose emoluments exceeded £60,000 (excluding pensions) are as follows:

2021 2020
Number Number
£70,001 - £80,000 0 1
£80,001 - £90,000 0 0
£141,000 - £150,000 1 1
======= =======

The key management personnel of the School include the Governors who are not remunerated. The total employee benefits of the key management personnel of the School were £400,769 (2020: £375,029).

6. INTEREST PAYABLE 2021 2020
£’000 £’000
Revolving credit facility 64 74
Bank loans 17 22
Bank charges 2 2
-------------- --------------
83 98
======== ======== 
29

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

7. SURPLUS ON ORDINARY ACTIVITIES FOR THE YEAR 2021 2020
£’000 £’000
The surplus on ordinary activities for the year is stated
after charging:
Depreciation of owned assets 799 911
Operating lease rentals 34 19
Auditor’s remuneration excluding VAT: - -
Audit – School 14 13
Audit – trading subsidiary 2 2
Audit – International 1 -
Non-audit services 6 4
======== ========

8. TANGIBLE FIXED ASSETS – GROUP AND CHARITY

Freehold Assets in the All Furniture
land and Course of weather fittings &
buildings Construction pitch equipment Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 September 2020 18,446 175 471 5,142 24,234
Additions 266 217 11 284 778
Disposals (5) - - - (5)
Transfer 174 (175) - 1 -
------------------------- ------------------------- --------------------- ------------------------ -------------------------
At 31 August 2021 18,881 217 482 5,427 25,007
------------------------- ------------------------- --------------------- ------------------------ -------------------------
Depreciation
At 1 September 2020 7,598 - 436 4,215 12,249
Charge 521 - 17 261 799
Disposals (5) - - - (5)
------------------------ ------------------------ --------------------- ------------------------- ------------------------
At 31 August 2021 8,114 - 453 4,476 13,043
------------------------ ------------------------ --------------------- ------------------------- ------------------------
Net Book Value
At 31 August 2021 £10,767 £217 £29 £951 £11,964
============= =========== =========== ============ =============
At 31 August 2020 £10,848 £176 £35 £926 £11,985
============= =========== =========== ============ =============

All the above assets are held for direct charitable purposes. 

30

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

9. INVESTMENTS Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Listed investments
At 1 September 2020 197
219		 197 219
Unrealised gain/(loss) 41
(23)		 41
(23)
------------------- ------------------- ------------------- -------------------
At 31 August 2021 238
196		 238
196
========== ========== ========== ==========
Investment in subsidiary -
-		 1
1
------------------- ------------------- ------------------- -------------------
At 31 August 2021 £238
£196		 £238
£196
========== ========== ========== ==========

The listed investments consist of common investment funds managed by BlackRock Investment Management (UK) Limited. The historic cost of listed investments is £150k (2020: £150k).

Details of the subsidiary are shown in note 3.

10. DEBTORS Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
School fees 107 27 107 27
Other debtors 59 33 21 15
Amounts owed by subsidiary - - 2 28
Prepayments and accrued income 156 469 156 468
------------------- ------------------- ------------------- -------------------
£322 £529 £286 £538
========== ========== ========== ==========

The bad debt expense for the period was £nil (2020: £73k). 

31

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

11. CREDITORS: Amounts falling due within Group Group Charity
one year 2021 2020 2021 2020
£’000 £’000 £’000 £’000
Current instalments due on bank loan 184 184 184
184
(note 12a)
Fees in Advance scheme (note 13) 138 58 138
58
Other school fees received in advance 2,241 1,726 2,241
1,726
Other amounts received in advance (note 285 194 285
194
12b)
Accruals 197 125 195
122
Other creditors 143 161 143
161
Other tax and social security 124 133 124
133
Trade creditors 233 351 233
351
--------------------- --------------------- ---------------------
---------------------
£3,545 £2,932 £3,543
£2,929
=========== =========== ===========
===========
12. CREDITORS: Amounts falling due after 2021 2020
more than one year - GROUP AND CHARITY £’000 £’000
Bank loan (note 12a) 3,437 3,617
Fees in Advance scheme (note 13) 5 -
Other amounts received in advance (note 12b) 1,640 1,521
----------------------- -----------------------
£5,082 £5,138
============
===========
2021 2020
The bank loan is due for repayment as follows: £’000 £’000
Within one to two years 184 184
Within two to five years 753 933
Beyond five years 2,500 2,500
--------------------- ---------------------
Due after one year 3,437 3,617
Repayable within one year 184 184
----------------------- -----------------------
£3,621 £3,801
============ ============

(b) The amount of £285k plus £1,640k due after one year (2020: £194k plus £1,521k) represents deposits for fees paid by parents. The amounts have been allocated between amounts falling due within and over one year based on the dates when the girls are expected to leave the School. 

32

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

13. FEES IN ADVANCE SCHEME – GROUP AND CHARITY

Parents may enter into a contract to pay the School up to the equivalent of seven years’ tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one term’s notice. Assuming pupils will remain in the School, advance fees will be applied as follows.

2021 2020
£’000 £’000
Within one to two years 5 -
Within two to five years - -
----------------- -----------------
Due after one year (note 12) 5 -
Within one year (note 11) 138 58
------------------ ------------------
£143 £58
========== ===========

The balance represents the accrued liability under contracts. The movements during the year were:

2021 2020
£’000 £’000
Balance at 1 September 2020 58 251
New contracts 152 -
Amounts accrued to contracts - 17
Amounts returned - (26)
----------------- -----------------
210 242
Amounts utilised in payment of fees (67) (184)
------------------ ------------------
Balance at 31 August 2021 £143 £58
========= ========= 
33

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

14. ANALYSIS OF DEFERRED INCOME -
GROUP AND CHARITY 2021 2020
£’000 £’000
Fees in advance at 1 September 2020 1,726 1,692
Applied during the year 2,241 1,726
Released during the year (1,726) (1,692)
------------------------ ------------------------
Fees in advance at 31 August 2021 £2,241 £1,726
============ ============
Deposits at 1 September 2020 1,715 1,158
Applied during the year 546 877
Released during the year (336) (392)
----------------------- -----------------------
Deposits at 31 August 2021 £1,925 £1,715
============ ==========
15. SHARE CAPITAL – CHARITY 2021 2020
£ £
Authorised
‘A’ shares of £1 each £50 £50
======== ========
Allotted, issued and fully paid
‘A’ shares of £1 each £26 £26
======== ========

The Company is under the control of Badminton Trust, which owns all the issued shares. 

34

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

16. RESTRICTED AND ENDOWMENT FUNDS

At 1 At
September Unrealised 31 August
2020 Income Expenditure Gains Transfers 2021
£’000 £’000 £’000 £’000 £’000 £’000
Unrestricted Funds
General Fund 5,787 9,993 (9,627) - - 6,153
---------------------- ------------------- ------------------- ---------------------- ---------------------- ----------------------
5,787 9,993 (9,627) - - 6,153
Endowment Funds
Lady Frank Fund 10 - - - - 10
Mark Richmond Music 20 - - - - 20
Award
---------------------- ------------------- ------------------- ---------------------- ---------------------- ----------------------
30 - - - - 30
Restricted Funds
Mark Richmond Music
Award 5 - - - - 5
Ooyevaar Library Fund 7 - (6) - - 1
Sanderson Bursary
Fund 189 23 (42) 41 - 211
Urquhart Travel Fund 22 - (1) - - 21
John James Bursary
Fund 20 30 (40) - - 10
John James Prizes Fund 17 1 (1) - - 17
John James Tools of
The Trade Fund 3 - - - - 3
Annual Fund 3 - (3) - - -
Barry T Jones Fund 1 7 (8) - - -
Bookmark her Future - - - - - -
Thrive Campaign 765 1 (29) - - 737
Other restricted funds
<£500 1 - (1) - - -
---------------------- ------------------- ------------------------- ---------------------- --------------------- ----------------------
1,033 62 (131) 41 - 1,005
----------------------- --------------------- ------------------------- ---------------------- ---------------------- -----------------------
£6,850 £10,055 £(9,758) £41 - £7,188
============ ========== ============= =========== ========== ============ 
35

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

16. RESTRICTED AND ENDOWMENT FUNDS (continued)

Comparative fund movements in year

At 1 At
September Unrealised 31 August
2019 Income Expenditure Losses Transfers 2020
£’000 £’000 £’000 £’000 £’000 £’000
Unrestricted Funds
General Fund 6,257 9,505 (9,975) - - 5,787
---------------------- ------------------- ------------------- ---------------------- ---------------------- ----------------------
6,257 9,505 (9,975) - - 5,787
Endowment Funds
Lady Frank Fund 10 - - - - 10
Mark Richmond Music 20 - - - - 20
Award
---------------------- ------------------- ------------------- ---------------------- ---------------------- ----------------------
30 - - - - 30
Restricted Funds
Mark Richmond Music
Award 5 - - - - 5
Ooyevaar Library Fund 7 - - - - 7
Sanderson Bursary
Fund 279 7 (74) (23) - 189
Urquhart Travel Fund 22 - - - - 22
John James Bursary
Fund 30 30 (40) - - 20
John James Prizes Fund 16 2 (1) - - 17
John James Tools of
the Trade Fund 2 2 (1) - - 3
Annual Fund 3 - - - - 3
Travel Bursary 1 - (1) - - -
Barry T Jones Fund 1 - - - - 1
Bookmark her Future - 44 (44) - - -
Thrive Campaign 794 - (29) - - 765
Other restricted funds
<£500 1 - - - - 1
---------------------- ------------------- ------------------------- ---------------------- --------------------- ----------------------
1,161 85 (190) (23) - 1,033
----------------------- --------------------- ------------------------- ---------------------- ---------------------- -----------------------
£7,448 £9,590 £(10,165) £(23) £- £6,850
============ ========== ============= =========== ========== ============ 
36

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

16. RESTRICTED AND ENDOWMENT FUNDS (continued)

Endowment Funds

The ‘Lady Frank Fund’ is an expendable endowment fund which has been established for educational expenditure in respect of the arts.

The ‘Mark Richmond Music Award’ is an expendable endowment fund which has been established for the support of music at the School.

The capital element of each of these funds is being retained. The balances are treated as restricted.

Restricted Funds

The ‘Ooyevaar Library Fund’ is a fund which is to be expended on books for the library.

The ‘Sanderson Bursary Fund’ is a fund which provides support for parents in financial difficulties.

The ‘Urquhart Fund’ is a fund which has been established for supporting student travel.

The ‘John James Bursary Fund’ has been established in respect of expenditure relating to bursaries.

The ‘John James Prizes and Awards Fund’ has been established for expenditure on general prizes and awards.

The ‘John James Tools of the Trade Fund’ provides one Sixth Form pupil a grant for resources to enhance their chosen studies.

The ‘Boynton Science Award Fund’ was set up to recognise girls with a particular interest in science.

The ‘Annual Fund’ was set up for making purchases of resources that are over and above “the norm” to enhance the lives of the girls and to provide the best education and pastoral experiences.

The ‘Travel Bursary Fund’ provides pupils bursaries towards the cost of school trips.

The ‘Bookmark her Future’ provides provided contributions to the 2020 refurbishment of the Casson library.

The ‘Thrive Campaign’ was set up to receive donations for the purpose of improving sports facilities at Badminton School. These were fully spent in the year and depreciation of £29,188 has been allocated against the fund.

Designated funds

The ‘Building Fund’ designated fund has been set up to receive donations which the School wishes to hold for future capital projects. The balance of the fund has been transferred to the General fund as the fund was expended on the Sports Centre building during the year. 

37

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

17. ANALYSIS OF NET ASSETS Cash Other
BETWEEN FUNDS Fixed assets Investments And cash assets/ Total
equivalents (liabilities) 2021
£’000 £’000 £’000 £’000 £’000
GROUP
Endowment fund - - 30 - 30
Restricted funds 737 - 268 - 1,005
Unrestricted funds 11,227 238 2,993 (8,303) 6,153
------------------------ ------------------------ ---------------------- ----------------------- ---------------------
£11,964 £238 £3,291 £(8,303) £7,188
============ ============ =========== ============ ===========
CHARITY
Endowment fund - - 30 - 30
Restricted funds 737 - 268 - 1,005
Unrestricted funds 11,227 238 2,960 (8,338) 6,087
------------------------ ------------------------ ---------------------- ----------------------- ---------------------
£11,964 £238 £3,258 £(8,338) £7,122
============ ============ =========== ============ ===========

Comparative split of net assets between funds

Cash Other
Fixed assets Investments And cash assets/ Total
equivalents (liabilities) 2020
£’000 £’000 £’000 £’000 £’000
GROUP
Endowment fund - - 30 - 30
Restricted funds 766 - 267 - 1,033
Unrestricted funds 11,219 196 1,913 (7,541) 5,787
------------------------ ------------------------ ---------------------- ----------------------- ---------------------
£11,985 £196 £2,210 £(7,541) £6,850
============ ============ =========== ============ ===========
CHARITY
Endowment fund - - 30 - 30
Restricted funds 766 - 257 - 1,033
Unrestricted funds 11,219 196 1,830 (7,529) 5,716
------------------------ ------------------------ ---------------------- ----------------------- ---------------------
£11,985 £196 £2,127 £(7,529) £6,779
============ ============ =========== ============ =========== 
38

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

18. PENSION COSTS

Aviva Pension Trust for Independent Schools (APTIS)

The School joined the new ‘APTIS’ scheme for its teaching staff in Sept 2020. The pension charge for the year includes Employers contributions payable to Aviva of £582k

Badminton School Group Personal Pension Scheme

Certain non-teaching staff can participate in the above pension scheme, which is a defined contribution scheme.

During the year, the School contributed £170k (2020: £159k) to the scheme.

19. CAPITAL COMMITMENTS

At the year end the company had capital commitments of £nil (2020: £nil).

20. OPERATING LEASE COMMITMENTS – GROUP AND CHARITY

At 31 August 2021, the School had commitments under non-
cancellable operating leases as follows: Plant and machinery
2021 2020
Restated
£’000 £’000
Within one year 11 7
Within two to five years 23 13
---------------- ----------------
£34 £20
======== ========

21. RELATED PARTY TRANSACTIONS

Mr B Ray, Mrs H Wheelhouse, Mr A Couper and Ms S Mumford were trustees of the Badminton Trust during the year, which controls the company as disclosed.

Governors with children at the school pay school fees at normal rates.

Aggregate donations from Governors amounted to £nil (2020: £1,150) in the year. 

39

BADMINTON SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Restricted and
Unrestricted Endowment Total
Funds Funds 2020
Notes £’000 £’000 £’000
INCOME FROM:
Charitable activities
Fees receivable 2 8,524 - 8,524
Extras – optional subjects 250 - 250
Other educational income 124 - 124
Other trading activities
Lettings 95 - 95
Investments 1 - 1
Donations and legacies - 85 85
Grant income 511 - 511
----------------------- ------------------- ---------------------
TOTAL INCOME 9,505 85 9,590
----------------------- ------------------- ---------------------
EXPENDITURE ON:
Raising funds 4 4 - 4
Charitable activities
School operating costs 4 9,971 190 10,161
--------------------- ------------------- ---------------------
TOTAL EXPENDITURE 9,975 190 10,165
--------------------- ------------------- ---------------------
NET DEFICIT BEFORE INVESTMENT (470) (105) (575)
GAINS
Investment gains / (losses) 9 - (23) (23)
--------------------- ------------------- --------------------
NET INCOME (470) (128) (598)
Fund balances brought forward 6,257 1,191 7,448
----------------------- ------------------- -----------------------
FUND BALANCES CARRIED FORWARD 16,17 £5,787 £1,063 £6,850
============ ========== ============ 
40