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2025-08-31-accounts

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ROYAL ALEXANDRA AND ALBERT SCHOOL

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

REGISTERED CHARITY NO: 311945

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

CONTENTS

Page(s)
Report of the Trustees 2-18
Independent Auditors’ Report 19-23
Consolidated Statement of Financial Activities 24-25
Balance Sheet 26
Consolidated Cash Flow Statement 27
Notes to the Financial Statements 28-50
Reference and Administrative Details 51-54

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ROYAL ALEXANDRA AND ALBERT SCHOOL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

The Board of Management presents its annual report and the consolidated audited financial statements for the year ended 31 August 2025 and confirms they comply with the requirements of the Royal Alexandra and Albert School Act 1949, the Charities Act 2011 and United Kingdom Generally Accepted Accounting Practice (UK GAAP) comprising FRS 102 and the Charities SORP 2015 (FRS 102). In preparing these financial statements the Trustees confirm that they have had regard to the Charity Commission guidance on public benefit in the Charities Act 2011.

The reference and administrative details set out on pages 51 to 54 form part of this report.

CHAIRMAN’S STATEMENT

Patron

On 18[th] September 2024 the School was honoured to welcome Her Royal Highness, the Duchess of Gloucester, for her thirteenth visit to the school and her first as Patron of the Royal Alexandra and Albert School Foundation. Over the past 50 years, The Duchess has shown extraordinary dedication to the Foundation and our school, in her role as President, and we are truly privileged to also formally welcome her as our Patron.

During her visit, The Duchess spent time engaging with students, who shared their personal experiences at the school. Her Royal Highness’ genuine warmth and keen interest in students’ lives have been a defining feature of her visits. Several students enjoyed speaking with The Duchess, creating memories they will cherish for years to come.

To mark the occasion, Her Royal Highness unveiled a commemorative plaque celebrating her recent appointment as Patron and her remarkable 50 years of service.

Foundationers

There are currently 104 Foundationers on roll, comprising 58 Full Boarders and 46 Flexi Boarders. This level aligns with the Foundation’s policy of reserving 10% of places and ensures resources are focused on providing the best possible experience. The Foundation is also supporting 2 Ukrainian students (Sept 2024: 5), representing 1.9% of the total Foundationer cohort (Sept 2024: 5.3%).

Ofsted Inspection 2025

The Boarding function of the School was inspected by Ofsted in June 2025 and was graded as Outstanding in all 3 of the inspection categories. This was an excellent result and one the School should be proud of. The report stated that “The boarding school provides highly effective services that consistently exceed the standards of good. The actions of the school contribute to significantly improved outcomes and positive experiences for children and young people”.

There is so much to celebrate at the School and the attitudes and commitment of the staff and students continue to impress.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

Finance

The Foundation activities resulted in a surplus before investment gains, of £90k, for the year compared to a loss of £28k in 2023/24. Once adjusted for the unrealised investment income of £690k, the surplus in the year was £780k. As at 31[st] August 2025, total assets amounted to £37,533,000.

The Foundation continues to face challenging financial circumstances as it is impacted by macro and micro economic factors. Pupil numbers in boarding particularly, remain lower than our targeted levels, in line with broader market trends influenced by current economic conditions, cost of living pressures and uncertainty. These, together with reductions in external funding available for bursaries, have resulted in significant challenges in maintaining income. The financial crisis in the state education sector has also resulted in pressure for the Foundation to provide support, most notably for capital expenses on educational buildings.

Following a review undertaken by independent external consultants, at the request of the Trustees, the Foundation and School have initiated Project Gatton. The project aims to assess and implement measures to support the future financial sustainability of the School, including its capacity to maintain and, where possible, enhance its buildings and infrastructure. This is expected to be progressed through a combination of revenue-enhancement and cost-management initiatives, alongside the exploration of potential external funding opportunities, including from Surrey County Council and the Department for Education.

The governance structure of the Foundation and School is proving a particular challenge in securing Government funding, although there has now been a successful Condition Improvement Funding (CIF) bid. The project value is £498,473 and is for Fire precaution works. The project kicked off during Autumn 2025.

Fundraising

The School launched a £300,000 fundraising campaign to refurbish the Sports Hall. Donations received were largely from a small number of very generous donors and £40,000 was raised. A significantly reduced refurbishment program was completed over the Summer which included resolving damp issues and a complete fresh, brighter internal look and feel. The changing rooms will also be refurbished with additional external lighting and new benches. The second phase of this project will be completed by December 2025.

Estate

During the Summer of 2025, the Dining Hall underwent a full refurbishment. The project team involved the community in choosing the final look and feel of the Dining Hall and it was ready for students when school re-opened in September 2025. The catering outsourcer generously contributed to the fit-out cost in return for a long-term catering contract. Construction and installation of new railings in the main car park was completed to protect pedestrians from vehicle movement. There were also a large number of smaller projects completed in the School and Boarding Village over the Summer.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

Trustees

I would like to thank Charles Wates and Gary Griffin, who resigned during the year, for their contributions to the Foundation.

Andrew Hodgkin

Chairman

18/12/2025

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

BACKGROUND

The Royal Alexandra and Albert School was founded in 1758 and re-incorporated as an educational charity in 1949 under the Royal Alexandra and Albert School Act (12 & 13 Geo 6 c.xviii) “the 1949 Act” and amendments thereto. Throughout this report the charity is referred to as “the Foundation”, the name by which it is commonly known.

The 1949 Act amalgamated the then Royal Alexandra School and Royal Albert School, made provisions for the amalgamation of the property and funds of the two schools, incorporated a management structure, and defined the objects of the new school. The main objects, laid down by the Act, are:

The arrangements since the original incorporation evolved over the decades such that the Foundation funds the boarding facilities and pastoral care with the education being provided by the Voluntary Aided School, Royal Alexandra and Albert School (“the School”), a state funded maintained school. The Foundation owns the land and buildings in which the School is located and appoints the majority of the School’s governors. The Foundation’s Board of Management has delegated the day to day management of boarding to the School’s Governing Body.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The core purpose of the Foundation is to accommodate and educate “Foundationers”. These are pupils who would benefit from a boarding education and whose parents or guardians are unable to afford such boarding charges. Generally, Foundationers have lost one or both parents, have a chronically ill parent, have been abandoned or abused or the parent can no longer meet their daily needs. Approximately 10% of the available boarding places are reserved for Foundationers.

Bursaries are given to fund or part fund boarding charges for Foundationers. All awards are means tested and range from full costs to more modest amounts, depending upon the circumstances of the child. Most of the Foundation’s awards are made in conjunction with other trusts and benevolent funds; we are grateful for the continuing support of many institutions, in particular: Royal National Children’s SpringBoard Foundation, Buttle Trust, Emmott Foundation, Northern Counties Children’s Benevolent Society, St Marylebone Educational Foundation, Wispers Trust, Sue Thomson Foundation, The NFL Trust and Anonymous Donors. During the year the fees for one pupil were funded by a Local Education Authority.

The Foundation aims to provide the School with an environment in which all its pupils, including the Foundationers, will achieve their full academic, social and spiritual potential in order to become valued members of society. In order to achieve this, the Foundation seeks to ensure the provision of firstclass educational facilities, high quality boarding accommodation and an excellent range of cocurricular activities.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT (continued)

Boarding fees are charged in respect of the provision and use of boarding accommodation, pastoral care, food and co-curricular programme. The termly boarding charges for the last two years were:

Academic year 2024/25 Academic year 2023/24
£ £
Boarding – junior and secondary 6,500 6,130
Boarding – sixth form 6,790 6,400
Flexi boarding – secondary 2,460 2,320
Flexi boarding – junior 1,880 1,760

Grants are provided to the School by the Foundation. Such grants are paid from unrestricted donations, investment income or property income. The annual grant is paid to provide additional support to Foundationers and for occasional special projects.

The Foundation and School are situated in the heart of an historic landscape created by ‘Capability’ Brown. The Foundation has established a subsidiary charity to be responsible for the restoration and conservation of the historic parkland in which it is located both for the benefit of the general public and for the advancement of education including that of pupils at the School.

The key elements of the Foundation’s strategy for the 24/25 financial year were:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT (continued)

The Foundation measures the success of its strategy through:

The performance against these measures is commented on throughout this report.

A REVIEW OF OUR ACHIEVEMENTS AND PERFORMANCE

Those who benefited from the Charity’s work were:

BURSARIES

During the academic year, in total 104 (September 2024: 98) students were supported by the Foundation, other charities and local authorities. At September 2025, the Foundation supported 54 (September 2024: 48) boarding students with bursaries and continued working with the Heads of local schools in Merstham (the third most deprived ward in Surrey) to identify students who would benefit from flexi-boarding. As at September 2025, 45 (September 2024: 39) such students were being supported.

In addition to the bursaries granted, the Headmaster remits boarding charges in cases of occasional hardship. During the year 5 students (2024: 2) benefited from Headmaster remission.

The value of means tested bursaries and Headmaster remission in the year amounted to £1,066,829 (2024: £914,067) and represented 10.1% (2024: 8.2%) of gross fees. A number of students in receipt of bursaries also received pocket money bursaries, uniform bursaries and assistance with both UK and overseas school trips and the cost of music and riding lessons.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

BURSARIES (continued)

The School offers scholarships to full boarder pupils who are high achievers in music and sport. Leadership scholarships are also available to Sixth Form applicants. During the year, the School awarded 16 scholarships together worth a total of £25,417 (2024: 23 scholarships worth £47,255).

FOUNDATIONER EDUCATION

Key stage 4 :

The Average Progress 8 Score was 5.27 for Foundation Students, as well as the whole cohort. 58.33% of Foundation students achieved a grade 4 or more in English Language. 66.66% of Foundation students achieved a grade 4 or more in Mathematics. 25% of Foundation students achieved grade 4 or higher in all their GCSE subjects. 20% of the Foundation students are also SEN. 33% of Foundation students have remained at RAA for their sixth form education. One Foundation student has returned to Year 11 to improve their grades.

Key stage 5:

For the A Level students, there was a total of 20 A-Level and equivalent results achieved by this cohort of 7 students, with a 95% were pass rate (A-Level A-E and BTEC 100% pass rate). 60% of entries (ALevel and BTEC) were awarded high grades (A–C or Merit/Distinction). All Foundation students have progressed onto University with 6 students getting their ‘Firm UCAS choice’ and 1 student via clearing. The destinations and courses are as follows:

University of Cardiff- Software Engineering University of Kent- Law Nottingham Trent University- Accounting and Finance; Criminal Justice University of Leicester- Law (x 2 students) Manchester Metropolitan University- Filmmaking

Foundation life at RAAS:

RAA prides itself on offering an inclusive all-round education with a curriculum that extends beyond the classroom. The Foundation provides an extensive co-curricular programme forming part of the everyday experience for pupils. Activities begin at 4pm and, dependent on the activity, can finish anywhere between 5pm and 9pm. The range of activities on offer is wide and designed to appeal to pupils of all ages and tastes. The Foundation has its own indoor swimming pool and riding stables, as well as grass pitches, floodlit netball courts, astroturf pitch and sprint track. Foundationers are prioritised for extra-curricular activities to ensure that they can access the full range of activities on offer. At Co-curricular clubs for this term, Foundationers have an overall attendance of 77% and 72% of the Foundation students have signed up to at least one club.

In addition to the co-curricular programme, the Foundation pays for all Foundationers to go on educational school trips, and on recreational trips up to a set limit each year. The Foundation will also fund riding lessons or music lessons for pupils where it is considered beneficial to their all-round education. Foundation students are supported by the pastoral team with chaplains, counselling, mentoring, tutoring and other initiatives offered to support their progress and social, emotional and mental health.

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ROYAL ALEXANDRA AND ALBERT SCHOOL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

SCHOOL GRANT

The grant paid to the School in the year to 31 August 2025 amounted to £350,000 (2024: £341,350).

PROPERTY MATTERS AND BUILDING DEVELOPMENT

All property assets are held in the Foundation Fund. The Foundation Fund charged a rental for the year ended 31 August 2025 of £2,154,661 (2024: £2,091,904) to the Boarding Fund in respect of the usage of the boarding estate. The rental charge is calculated on a basis of current market property yields and is accounted for as a transfer between funds.

Boarding House Refurbishment

The quality of our boarding accommodation is a key selling point in attracting new pupils to our school. In a shrinking market, it is critical we maintain our product to a good standard.

This year saw the final completion stage of the last student bedroom refurbishment in Alexandra House and the last student bathrooms in Alexandra House and Gatton6, setting a new standard at RAAS for these important areas for Boarder wellbeing.

Dining Hall

The Dining Hall which feeds more than 1000 students on a daily basis, was completely gutted and refurbished over the Summer. After years of delay, there were significant Health and Safety issues related to some dated equipment, plumbing and electrics. This was the primary driver for the refurbishment, but this space is also a key opportunity for students, staff and our marketing offer.

The new Dining Hall opened in September 2025 when the new term began.

Energy Efficiency

With changes in the global price of energy, in recent years, greater focus has been brought on how energy consumption and costs can be reduced across the estate. The GSHP Project was funded by a 20-year green energy loan facility from Lloyds Bank which will be repaid from fuel savings, together with RHI funding. Further details of the loan facilities are given in note 15 to the financial statements. There have been some problems with water quality directly from the GSHP system and continuing mitigating actions have been needed to maintain appropriate health and safety levels. Consequently, an urgent Capital Support Bid to the Department of Education is being submitted in November 2025 for £1.05m to finally resolve these issues.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

FUNDRAISING, DONATIONS AND LEGACIES

The Charity is a public benefit entity. Throughout its long existence as a charity, it has received constant and generous support from its subscribers and regular donors. Under its constitution all persons who make significant contributions are entitled to become members of the Court of Governors (the equivalent of shareholders) with power to appoint the Board of Management.

In September 2024 the School launched a £300,000 fundraising campaign to refurbish the school’s sports. The project raised £40,000 and so a significantly reduced project was undertaken which was completed over the Summer.

Several regular small donations were received from the donors who give primarily to support Foundationers.

A legacy of £114k was also received during the year from the estate of a past student.

FINANCIAL REVIEW

Net surplus for the year ended 31 August 2025 was £780k (2024: £1,051m surplus). This is stated after recognising realised and unrealised investment gains of £690k (2024: £1.08m gains). The result of the year, before investment movements, was a surplus of £90k (2024: £28k deficit).

This year saw a 5.7% decrease in boarding fee income, due to reduced numbers in boarding students. There was also a decrease in external lettings due to the dining hall project, however stable income, investment income, and OFGEM Renewable Heat Incentive Scheme all increased. In addition, there was an unexpected legacy of £114k. Overall, the decrease in income of 5.1% is largely due to the decrease in boarding income. Educational lets and riding income are shown within Other Educational Income. Property income comprises income from Gatton Park Lettings Limited, which was down due to the dining hall project over the summer.

Expenditure on charitable activities decreased by 6.2%, reflecting the reductions in expenses linked to the reduced boarder numbers. Funds continue to be spent to maintain facilities across the estate, with the most significant investments being in the boarding house refurbishment programme.

Investment returns

Foundationers are principally funded through the investment income generated by the investment portfolio. The table below indicates the quarterly return on investments achieved by Investec Wealth & Investment Limited (“Investec”) up to June 2025 and then by Rathbones Investment Management for the final quarter and compares the actual return with the benchmark.

2024 2025 2025 2025
Quarterly Dec Mar Jun Sept
Actual return(net of fees) 1.95% -2.36% 8.24% 6.12%
Benchmark return 2.21% 0.57% 4.40% 6.61%

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

Balance sheet

Of the £867k of fixed asset additions recognised in the year, £777k related to the dining hall project and £50k to replacing gym equipment.

Net current assets increased by £518k over the year, largely driven by the increase in fixed assets.

There was a decrease in creditors due within one year, due to the summer projects being reduced to the dining hall project only. There was a reduction of £492k in creditors due after one year, largely due to the decrease in boarding charges in advance.

As a result of the surplus for the year, notably including the £690k gain on investments, total net assets increased from £36.8m to £37.5m.

RESERVES AND FUNDING OF FUTURE WORK

With the exception of £53k (2024: £40k) of assets attributable to restricted funds, the Foundation’s assets are unrestricted as to their deployment and use. The value and liquidity of the assets attributable to each fund are sufficient to meet the related obligations.

The Board of Management believes that the free unrestricted funds of £12.7m (being unrestricted funds of £37.5m net of tangible assets of £24.8m), which is wholly represented by investments, are essential to finance the Charity’s support of Foundationers. Free unrestricted funds have increased by £1.7m since last year. The designated fund comprises a surplus on the boarding fund which will be utilised to fund the future development and maintenance of the boarding estate.

The reserves policy is reviewed annually by the Board of Management.

GATTON PARK LETTINGS LIMITED

Gatton Park Lettings Limited is a wholly-owned subsidiary of the Foundation whose principal activity is the letting of the conference facilities and non-educational boarding facilities plus other trading activities of the School. Turnover for the year ended 31 August 2025 was £10,971 (2024: £101,584). Lettings occupancy was down due to the dining hall project over the summer. The whole of the taxable profits of Gatton Park Lettings Limited are donated as a charitable donation to the Foundation.

THE GATTON TRUST LIMITED (“GATTON TRUST”)

The Foundation is the sole member of Gatton Trust, a charitable company whose objectives are to conserve the historic landscape and buildings within Gatton Park; provide access for the public to the parkland and provide an education centre for the benefit of the public and the School.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

THE GATTON TRUST LIMITED (continued)

Restoration work on the Old World Garden has continued throughout this year. Repairs have been made to the pond’s inflow and outflow systems, ensuring proper function. Clearance efforts around the garden have also progressed.

Tree removal has continued in line with our woodland management plan to address ash dieback. This year’s work focused on the area from the rock garden to the boathouse at the eastern end of the lake, with other woodland sections scheduled for management in the coming years.

The cabin building, heavily used by our education team and for events, is now in poor condition. Its replacement will be necessary within the next 18 months.

During this year 17,441 (2024: 17,173) visits were made to the park as part of our events, activities and educational work. The Park forms the grounds of Royal Alexandra and Albert School and is home to 138 resident staff and their families, and 298 boarding pupils (1,000 school pupils in total). In school holidays the site is let to other residential groups. Parts of the park are accessible as part of the North Downs Way.

The biggest event, Gatton Country Fair, was affected by poor weather with 1,033 adults and 651 children people attending (2024: 950 adults and 396 children).

Volunteering is essential for our charitable activity to continue at the level we achieve. Volunteers help with every aspect of our work, from governance by our trustees, gardening and parkland conservation, supporting our school visits and family activities, running events, office work and fundraising. There are 137 volunteers (2024: 125) who regularly support the work of the Trust. In total they provided 9,742 volunteer hours (2024: 8,184).

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

GOVERNANCE OF THE FOUNDATION AND SCHOOL

The governing bodies consist of:

The Board of Management

The Board of Management and the Governing Body establish and control such committees as are deemed necessary for the respective management of the Foundation and the School. A full list of the members of the Board of Management and its sub-committees is included on pages 51-54.

Compliance with Charity Governance Code

The Foundation recognises the principles set out in the Charity Governance Code and seeks to comply fully. A Governance Review in 2021 highlighted where compliance could be improved and the Foundation has worked on these areas.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

GOVERNANCE OF THE FOUNDATION AND SCHOOL (continued)

The principles are:

  1. Organisational Purpose - The Board is clear about the charity’s aims and ensures that they are being delivered effectively and sustainably

  2. Every charity is headed by an effective Board that provides strategic leadership in line with the charity’s aims and objectives

  3. The Board acts with integrity. It adopts values, applies ethical principles to decisions and creates a welcoming and supportive culture which helps achieve the charity’s purposes. The Board is aware of the significance of the public’s confidence and trust in charities. It reflects the charity’s ethics and values in everything it does. Trustees undertake their duties with this in mind.

  4. The Board makes sure that its decision-making processes are informed, rigorous and timely, and that effective delegation, control and risk assessment and management systems are set up and monitored.

  5. The Board works as an effective team, using an appropriate balance of skills experience, backgrounds and knowledge to make informed decisions.

  6. Equality, Diversity and inclusion - The Board has a clear, agreed and effective approach to supporting equality, diversity and inclusion throughout the organisation and in its own practice. This supports good governance and the delivery of the organisation’s charitable purposes.

  7. Openness and accountability - The Board leads the organisation in being transparent and accountable

As set out in the Objectives section of this report the sole purpose of the Foundation is for the benefit and assistance of Foundationers. Regular reporting on the progress and impact of the Foundations work on Foundationers together with financial reporting to ensure the charitable objectives are being delivered and can be for the foreseeable future.

The Board of Management sets the strategic leadership and trustees have been appointed to ensure a wide range of skills and experience are available to contribute to this leadership. There is a Code of Conduct which Trustees are required to sign and role descriptions for trustees and the chair ensure conduct and expectations are clear and transparent.

Risks are recorded in a risk register and formally reviewed by the Board twice a year. Detailed papers are prepared to support discussions and ensure that all trustees have the opportunity to evaluate and challenge decisions. The F&GP Committee meets at least once a term and receives regular reports on the financial position of the Foundation as well as the annual report of the auditors.

It is recognised that there is further work and cultural change required to improve the diversity of executive and non-executive members and this remains an ongoing process.

The Court holds the Board to account and receives the Annual Report and progress report on Foundationers.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

GOVERNANCE OF THE FOUNDATION AND SCHOOL (continued)

Policies and Procedures Adopted for the Induction and Training of Trustees

The members of the Board of Management (also referred to as Trustees) have high level and relevant education, legal, estates, marketing, banking, finance and charity expertise. New Trustees, upon appointment, follow an induction which includes an explanation of their role as Trustee. They are also provided with detailed information regarding the Foundation and the School. Relevant ongoing training is provided periodically.

Membership of the Board of Management

The members of the Board of Management who served during the financial year and up to the date of signing these financial statements were:

Andrew Hodgkin appointed 26 March 2024, Chair from 2 August 2024
Cindy Black Honorary Treasurer appointed 26 March 2024
Edward Winter appointed as Comptroller 2 August 2024
John Billingham
Nishma Acharya
Ononuju Irukwu
Elizabeth Tadd
Dan Mewett appointed 24 September 2024
Kanika Sachdeva appointed 24 September 2024
Ryan Ramsey resigned 25 March 2025
Gary Griffin resigned 5 May 2025
Charles Wates BSc MRICS resigned 26 June 2025

All Trustees give their time freely and no remuneration or expenses were paid in the year (2024: £124.40) in travel expenses. No Trustee or person connected with a Trustee received any benefit from means tested bursaries during the year.

The Foundation Secretary and Bursar, Elizabeth Lowe, is Secretary to the Board of Management, the Governing Body and a number of sub-committees.

The Senior Leadership Team

The day to day management of the School is the responsibility of the Headmaster, and the Senior Leadership team (“SLT”). During the past year the SLT comprised the Headmaster, the Bursar and Foundation Secretary, Deputy Head (Curriculum, Teaching and Learning), Deputy Head (Boarding, Cocurricular & Community), Deputy Head (Achievement, Standards & Inclusion), Assistant Heads (Director of Learning for KS3, KS4 and KS5), Assistant Heads (Director of Standards for KS3 and KS4) Assistant Head (Head of Juniors).

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

GOVERNANCE OF THE FOUNDATION AND SCHOOL (continued)

Effective 1st September 2025 a new leadership structure has been introduced, with the Headmaster moving to an Executive Head role, the introduction of a Head of School position and a restructure of deputy heads from three to two.

INVESTMENT POWERS

The Foundation’s investment powers are set out in the 1949 Act. However, the Charity Commission has confirmed that the Foundation may exercise the wider powers of investment conferred by the Trustee Act 2000. The Foundation’s portfolio of investments is overseen by the Investment Committee. The investment policy is to manage the portfolio for total return but to ensure that over time the real capital value of the portfolio is maintained. There is no specific income target. The investment objective for any year is to produce an investment return in excess of a customised benchmark which, in particular, measures performance for gilts against FTSE Government All Stocks, corporate bonds against Merrill Lynch Non Gilt All Stocks, fixed interest stocks against the FTA Government All Stocks Index, UK Equities against the FTSE All Share index, overseas equities against the FTA World ex UK index and commercial property against IPD Quarterly. All securities are held on behalf of the Foundation by a nominee company which is a wholly-owned subsidiary of Rathbones.

PRINCIPAL RISKS AND UNCERTAINITIES

As part of its normal procedures, the Board assesses the major risks and uncertainties to which the Foundation is exposed, in particular those related to the operations and finances of the Foundation. The assessment comprises:

The monitoring of financial and other areas of performance ensures that the Board is continually appraised of progress and the risks the Foundation faces.

The principal risks and uncertainties facing the entity are summarised as:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

PRINCIPAL RISKS AND UNCERTAINITIES (continued)

Liability insurance

The Foundation maintains liability insurance for its Trustees and officers, as well as for the Directors, Trustees, and officers of its subsidiary undertakings. This qualifies as a third-party indemnity provision under the Companies Act 2006. The insurance was in force throughout the financial year and remains in place at the date of approval of the consolidated financial statements.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustees are required to:

17

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ROYAL ALEXANDRA AND ALBERT SCHOOL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES (Continued)

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the Foundation website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who is a Trustee at the date of approval of this report confirms that:

(a) so far as the Trustee is aware, there is no relevant audit information of which the Foundation’s auditors are unaware; and

(b) they have taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the Foundation’s auditors are aware of that information.

INDEPENDENT AUDITORS

A resolution proposing that Moore Kingston Smith LLP be re-appointed as auditors will be put to the forthcoming meeting of the Board of Management.

On behalf of the Board:

A Hodgkin Chairman

18/12/2025

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ROYAL ALEXANDRA AND ALBERT SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ROYAL ALEXANDRA AND ALBERT SCHOOL

OPINION

We have audited the financial statements of Royal Alexandra and Albert School for the year ended 31 August 2025 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheet, the Group 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 FRS 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained in the Annual 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.

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Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ROYAL ALEXANDRA AND ALBERT SCHOOL

OTHER INFORMATION (continued)

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees’ responsibilities statement set out on page 17-18, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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ROYAL ALEXANDRA AND ALBERT SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ROYAL ALEXANDRA AND ALBERT SCHOOL

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (continued)

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ROYAL ALEXANDRA AND ALBERT SCHOOL

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

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Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ROYAL ALEXANDRA AND ALBERT SCHOOL

USE OF OUR REPORT

This report is made solely to the charity's Trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity's Trustees as a body, for our audit work, for this report, or for the opinion we have formed.

19/12/2025

Moore Kingston Smith LLP Statutory Auditor

Betchworth House 57 – 65 Station Road Redhill Surrey RH1 1DL

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

23

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025


INCOME FROM
Charitable activities
Boarding charges
5
Other educational income
5
Donations and legacies
Grants from government
and other public bodies
4
Donations and other
voluntary income
4
Legacy income
4
Trading activities
Property income
Park conservation and
environmental education
Investments
6
Other income
Total income
EXPENDITURE ON
Charitable activities
School and grant making
Raising funds
Fundraising and
development
Investment management
costs
Property letting expenses
Total expenditure
7,8
Net income/(expenditure)
before gains/losses on
investments		 Unrestricted Funds
Foundation
Fund
Boarding
School
Fund
£’000
£’000
-
9,458
350
214
-
-
11
200
115
-
10
-
142
-
444
-
-
339
1,072
10,211
(2,221)
(8,923)
-
-
(41)
-
(59)
-
(2,321)
(8,923)
(1,249)
1,288		 Restricted
Funds
£’000
-
-
37
1
-
-
28
-
-
66
(15)
-
-
-
(15)
51		 2025
£’000
9,458
564
37
212
115
10
170
444
339
11,349
(11,159)
-
(41)
(59)
(11,259)
90		 2024
£’000
10,026
575
40
294
-
101
144
418
360
11,958
(11,904)
-
(39)
(44)
(11,987)
(29)

24

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025 (continued)


Net income/(expenditure)
before gains/losses on
investments
Realised and Unrealised
gain/(loss) on investments
12
Net income/(expenditure)
after gains/losses on
investments
Transfers between funds
- Market rental charged
by Foundation Fund to
Boarding Fund
- Foundation Bursaries
transferred to Boarding
School Fund
- Additions and
improvements to land
and buildings
Other recognised gains and
losses
Actuarial gains/ (losses) on
the defined benefit pension
scheme
NET MOVEMENT IN FUNDS
Reconciliation of Funds
FUND BALANCES brought
forward at 1 September
FUND BALANCES carried
forward at 31 August		 Unrestricted Funds
Foundation
Fund
Boarding
School
Fund
£’000
£’000
(1,249)
1,288
690
-
(559)
1,288
2,155
(2,155)
(1,136)
1,137
37
-
-
-
497
270
33,897
2,816
34,394
3,086		 Restricted
Funds
£’000
51
-
51
-
(1)
(37)
-
13
40
53		 2025
£’000
90
690
780
-
-
-
-
780
36,753
37,533		 2024
£’000
(29)
1,080
1,051
-
-
-
-
1,051
35,702
36,753

All income arises from the continuing activities of the Group. There are no recognised gains or losses other than those dealt within the Consolidated Statement of Financial Activities. There are no material differences between the net income /(expenditure) and the fund balances carried forward stated above and their historical cost equivalents.

The financial statements have been prepared in line with FRS 102.

25

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2025

Note
FIXED ASSETS
Tangible assets
11
Investments
12
Total fixed assets
CURRENT ASSETS
Debtors
13
Term deposit
Cash at bank and in hand
Total current assets
Creditors: Amounts falling due
within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: Amounts falling due
after one year
15
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY
Restricted income funds
16,19
Unrestricted income funds
Designated funds
18
Revaluation reserve
Total unrestricted income funds
16,17
TOTAL CHARITY FUNDS		 At 31 August 2025
Group
Foundation
£’000
£’000
25,144
25,135
12,284
12,284
37,428
37,419
478
480
7,681
7,681
1,284
1,055
9,443
9,216
(2,923)
(2,915)
6,520
6,301
43,948
43,720
(6,415)
(6,415)
37,533
37,305
53
12
29,004
28,976
3,242
3,083
5,234
5,234
37,480
37,293
37,533
37,305		 At 31 August 2024
Group
Foundation
£’000
£’000
25,737
25,736
11,358
11,358
37,095
37,094
1,376
1,276
4,771
4,771
3,270
3,040
9,417
9,087
(3,415)
(3,392)
6,002
5,695
43,097
42,789
(6,344)
(6,344)
36,753
36,445
40
11
28,545
28,384
2,934
2,816
5,234
5,234
36,713
36,434
36,753
36,445		 At 31 August 2024
Group
Foundation
£’000
£’000
25,737
25,736
11,358
11,358
37,095
37,094
1,376
1,276
4,771
4,771
3,270
3,040
9,417
9,087
(3,415)
(3,392)
6,002
5,695
43,097
42,789
(6,344)
(6,344)
36,753
36,445
40
11
28,545
28,384
2,934
2,816
5,234
5,234
36,713
36,434
36,753
36,445
37,094
1,276
4,771
3,040
9,087
(3,392)
5,695
42,789
(6,344)
36,445
11
28,384
2,816
5,234
36,434
36,445

The financial statements on pages 24 to 50 were approved by the Board of Management on 18/12/2025 and signed on their behalf:

A Hodgkin Chairman

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Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025 31 AUGUST 2025
Year ended 31 August 2025 Year ended 31 August 2024
Note £’000
£’000		 £’000 £’000
CASH FLOWS FROM OPERATING
ACTIVITIES
Net cash inflow from operating activities 22 2,033 1,901
Interest paid (231) (242)
Net cash generated from operating
activities		 1,802 1,659
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends and interest from investments 444 418
Purchase of:
Investments (1,708) (2,315)
Fixed assets (867) (284)
Proceeds from:
Sale of investments 1.466 2,101
Sale of fixed assets 12 -
Increase/(Decrease) in short term deposits
and investment adjustments		 14 (10)
Net cash used in investing activities (639) (90)
CASH FLOWS FROM FINANCING
ACTIVITIES
New Borrowing:
Lloyds Bank loans - -
Repayment of Borrowing:
Lloyds Bank loans (239) (296)
Net cash (used in)/generated from
financing activities		 (239) (296)
CHANGE IN CASH AND CASH
EQUIVALENTS IN THE YEAR 924 1,273
Cash and cash equivalents at the beginning
of the year		 8,041 6,768
Cash and cash equivalents at the
end of the year		 8,965 8,041

27

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. GENERAL INFORMATION

Royal Alexandra and Albert School is a charity registered in the United Kingdom (registered charity number 311945). The charity’s registered office and operational address is: Royal Alexandra and Albert School, Foundation Office, Gatton Park, Reigate, Surrey, RH2 0TW.

2. ACCOUNTING CONVENTION

The financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP (FRS 102)), and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency at the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The consolidated financial statements incorporate those of the Foundation and of its subsidiary undertakings, Gatton Park Lettings Limited (company registration number 03227685) and The Gatton Trust Limited (company registration number 4216691, registered charity number 1101467), (together the “Group”). Both subsidiaries make up their financial statements to 31 August and are consolidated on a line by line basis. As permitted, a separate income and expenditure account dealing with the results of the parent charity only has not been prepared.

The charity is a qualifying entity for the purposes of FRS 102 as it is the ultimate parent of publicly available consolidated financial statements. The charity has taken advantage of the following exemptions in its individual financial statements:(i) Under FRS 102 paragraph 1.12 (b), from preparing a statement of cash flows

(ii) Certain disclosure requirements of section 11 in respect of financial instruments (iii) Disclosure of the charity’s key management personnel compensation

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention, as modified by the inclusion of freehold buildings at deemed cost and certain financial assets and liabilities measured at fair value. The principal accounting policies applied in the preparation of these financial statements, consistently applied to all the years presented, are set out below.

Going concern

The results for the year, before investment portfolio movements, show a surplus of £90k. The investment portfolio movement of £690k provided the surplus and increase in net funds in the year. Whilst there were decreases in boarding income and other income, these were offset by decreased operational costs. As inflationary pressures ease, lower pupil numbers remain the key driver of financial pressure going forward. The Executive and Trustees are reviewing and evaluating the operating model, and the state boarding market, in order to establish a sustainable strategic approach over the medium term. Having made appropriate enquiries, the Trustees are satisfied that the Foundation has adequate resources to continue for the foreseeable future being at least twelve months from the date of approval of the financial statements. For this reason, the Trustees have continued to adopt the going concern basis when preparing the financial statements.

28

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Incoming resources

All incoming resources are included in the consolidated statement of financial activities when the charity is legally entitled to them, receipt is probable and the amount can be quantified with reasonable accuracy.

Boarding charges

Parental and local authority contributions represent the boarding charges paid by parents or local authorities as appropriate and are recognised when service is provided.

Boarding charges in advance

The charity offers a boarding charges in advance scheme where the cost of boarding charges can be reduced by making an advance lump sum payment. The scheme may be used to provide advance payments towards boarding charges for any set number of terms during the pupil’s potential time at the School, from a minimum of 3 terms up to a maximum of 15 terms. The minimum amount accepted by way of payment into the scheme is an amount calculated to generate termly payments of £500 per term, and the maximum is an amount calculated to generate the termly boarding charges at the time of entering the scheme. The commutation given is charged to the consolidated statement of financial activities and the remaining lump sum is deferred and recognised within current liabilities and released as the terms are used up.

Boarding charge deposits

Upon joining the School, a boarding charge deposit is taken for each pupil, which is returnable on the pupil leaving the school. These deposits are included within current liabilities since there is the potential for pupils to leave at any stage.

Bursaries

Bursaries are accounted for when the boarding charges to which they relate are recognised. Bursaries funded by grant giving trusts are included within donations in the Boarding School Fund. Foundation bursaries represent the boarding charges of bursary children funded by the Foundation. The Foundation bursaries are shown as a transfer between funds on the face of the Consolidated Statement of Financial Activities.

Donations and other voluntary income

Donations and other voluntary income represent income from donors, whether individual or corporate, and grants from charitable trusts. Such income is accounted for when receivable and quantifiable. Gifts in kind are valued at market value at the date of receipt.

Grants from government and other public bodies

Grants from government and other public bodies are accounted for when the charity is entitled to the funds. Where entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the incoming resources are recognised when there is sufficient evidence that conditions will be met.

29

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Legacies

Legacies are recognised when a charity has entitlement to the income, it is probable that it will be received and it can be measured reliably. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution.

Income from investments

Interest is accounted for when receivable. Dividend income is accounted for when the right to receive payment has been established.

Property and park conservation income

Property lettings and park conservation income is accounted for in the period in which it is receivable.

Other income

Other income consists of income received from insurance claims and contributions received towards administrative costs. Income is recognised when receivable and quantifiable.

Expenditure

Costs of charitable activities include direct expenditure incurred through operational activities including grants paid directly relating to the objects of the charity. Grants are recognised in the period in which they are payable. Expenditure is accounted for on an accruals basis as a liability arises. This includes attributable VAT which cannot be recovered.

Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but are not directly incurred in the performance of charitable activities. Support costs include a proportion of the Foundation staff and office costs apportioned on the basis of staff time. Governance costs and support costs relating to charitable activities include the audit fee and legal and tax advice. The allocation of support and governance costs is analysed in note 8.

Taxation

The Foundation and The Gatton Trust Limited are registered charities and, as such, exempt from taxation which applies both to capital gains and to the income arising and expended on its charitable activities.

Gatton Park Lettings Limited donates its entire distributable profits to the Foundation, its holding company, and expects to continue to do this for the foreseeable future thereby mitigating any potential tax liability.

30

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Operating Leases

The charity held only operating leases in the financial year. Operating leases cover leases of equipment and vehicles; where the title to the equipment remains with the lessor. The lease rentals payable are charged to the statement of financial activities on a straight line basis over the term of the leases.

Transfers between funds

Transfers are made from and within unrestricted funds in line with charitable objectives. A market rental charge of £2,154,661 for the use of the shared properties has been accounted for as a transfer to the Foundation Fund from the Boarding Fund. The cost of Foundation funded bursaries has been transferred to the Boarding School Fund from the Foundation Fund. The cost of fixed asset additions funded by DfE capital grants have been transferred from the Foundation Fund to restricted funds.

Related party transactions

The charity discloses all transactions with related parties including those within the same group.

Financial instruments

The charity applies Section 11 of FRS 102 in respect of financial instruments. Basic financial instruments include trade and other receivables, trade and other creditors, cash and bank and investments. Basic financial instruments are initially recognised at transaction value. Investments are recognised at fair value through profit and loss and the remaining assets are held at amortised cost. Liabilities are all held at amortised cost.

Tangible assets and depreciation

Tangible fixed assets, costing £2,000 or more, are stated at historic cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is recognised so as to write off the cost of the assets, less their residual values, over their expected useful lives on the following bases:

Freehold Land No depreciation
Freehold Buildings 4% straight line
Freehold Buildings (listed) 2% straight line
Motor Vehicles 50% in the financial year of acquisition, 25% straight line thereafter
Furniture, Equipment 20% straight line
& Horses

Depreciation is charged for a full year in the year of acquisition. The useful economic lives and residual value of fixed assets are reviewed at the end of each accounting period.

31

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Freehold land and buildings were professionally revalued at 31 March 2013 to depreciated replacement cost with the revaluation surplus being taken to the revaluation reserve. On transition to FRS 102, the charity elected to take the revalued amount as deemed cost.

Projects in progress at the financial year end are carried forward to the accounting period of completion of the project whereupon they are transferred to an appropriate asset category. Depreciation is not charged on projects until they have been completed.

Investments and investment management

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Investments include short term deposits.

The charity does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

The investment management costs are expensed separately to the Consolidated Statement of Financial Activities and are recognised on an accruals basis.

Realised and unrealised gains and losses

All gains and losses are taken to the Consolidated Statement of Financial Activities as they arise. Realised gains and losses are calculated as the difference between sales proceeds and opening carrying value or purchase value of fixed assets or fixed asset investments 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.

Cash at bank and in hand

Cash at bank and in hand is held to meet short term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short term highly liquid investments. A cash equivalent will normally have a short maturity of three months or less from date of acquisition.

Unrestricted funds

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Board in furtherance of the objects of the Foundation. The unrestricted funds comprise the Foundation Fund and a designated fund, the Boarding School Fund, the aims and purposes of which are set out in Note 19.

32

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Restricted funds

These are funds for which the donor has specifically restricted the purpose for which the funds may be used. Income received that has specific restrictions placed upon its use is credited to restricted income within the SOFA on an entitlement basis. Unspent balances are carried forward within the relevant restricted fund.

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. It is the opinion of the Trustees that there are no estimates and assumptions that have a significant risk of causing a material adjustment of the carrying amounts of assets and liabilities within the next financial year, other than those addressed below.

4. DONATIONS AND LEGACIES

Grants, donations and legacy income comprise:
Grants from government and other public bodies
Donations and other voluntary income
Legacy income
Capital grants
Income grants and donations		 2025
£’000
37
212
115
364
37
327
364		 2024
£’000
40
294
-
334
40
294
334

Grants from government and other public bodies comprise grants from the Department for Education (“DfE”) of £36,563 towards capital projects (2024: £39,549).

33

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

4. DONATIONS AND LEGACIES (continued)

Donations and other voluntary income include the following grants of £1,000 or more.

2025
£’000
Royal National Children’s Springboard Foundation 65
The Frank Buttle Trust UK 40
Anonymous Donor 30
The NFL Trust 24
WFET 15
Sue Thomson Foundation 13
The Emmott Foundation 7
St Marylebone Educational Foundation 6
Wispers Trust 5
Northern Counties Children’s Benevolent Society 7
The Forces Trust 2

5. INCOME FROM CHARITABLE ACTIVITIES

Contributions
towards boarding
charges:
Parental
Bursaries
Local Authorities
Total contributions
Other educational
income		 Foundation
Fund
£’000
-
-
-
-
350
350		 Boarding
School
Fund
£’000
10,592
(1,138)
4
9,458
214
9,672		 Restricted
Funds
£’000
-
-
-
-
-
-		 2025
£’000
10,592
(1,138)
4
9,458
564
10,022		 2024
£’000
11,019
(1,047)
54
10,026
575
10,601

34

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

6. INVESTMENT INCOME

The Group’s investment income arises as follows:

Dividends and interest
Interest receivable net of charges paid		 2025
£’000
284
160
444		 2024
£’000
272
146
418

7. TOTAL EXPENDITURE BY ACTIVITY TYPE

Current year
School and grant making
Fundraising and development
Investment management
Property lettings
Comparative year
School and grant making
Fundraising and development
Investment management
Property lettings		 Direct
costs
£’000
9,118
-
41
49
9,208
Direct
costs
£’000
9,890
-
39
33
9,962		 Support and
governance
costs
£’000
2,042
-
-
11
2,053
Support and
governance
costs
£’000
2,014
-
-
11
2,025		 2025
£’000
11,160
-
41
60
11,261
2024
£’000
11,904
-
39
44
11,987

8. ALLOCATION OF SUPPORT AND GOVERNANCE COSTS

Support and governance costs are allocated on the basis of staff time as follows:

Current year
Management
Professional fees
Staff costs
Other costs
Governance costs		 School
and grant
making
£’000
226
11
1,118
421
266
2,042		 Property
lettings
£’000
-
-
11
-
-
11		 2025
£’000
226
11
1,129
421
266
2,053

35

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

8. ALLOCATION OF SUPPORT AND GOVERNANCE COSTS (continued)

Comparative year
Management
Professional fees
Staff costs
Other costs
Governance costs		 School
and grant
making
£’000
343
47
1,036
434
154
2,014		 Property
lettings
£’000
-
-
11
-
-
11		 2024
£’000
343
47
1,047
434
154
2,025

9. NET EXPENDITURE FOR THE YEAR

ET EXPENDITURE FOR THE YEAR
2025 2024
Net expenditure is stated after charging: £’000 £’000
Depreciation 1,418 1,442
Operating lease rentals 69 230
Bank charges and interest payable 261 275
Auditors’ remuneration
-
Fees		 33 32
-
Other Services		 1 1

10. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES

The average monthly number of employees (including senior leadership) employed by the Group during the year was:

Management
Welfare
Maintenance		 2025
28
87
24
139		 2024
28
92
24
144

The average monthly number of employees (including senior leadership) employed by the Group during the year, calculated as full-time equivalents was:

Management
Welfare
Maintenance		 2025
25
42
18
85		 2024
24
49
18
91

36

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

10. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES (continued)

Total compensation for all staff:
Wages and salaries
Social security costs
Pension costs – defined benefits
Pension costs – defined contributions
Termination benefits
Total compensation for key management:
Salaries
Benefits in kind
Pension costs
Termination benefits
Aggregate emoluments
Personnel with employee benefits (excluding
employer pension costs) between:
£60,001 to £70,000
£70,001 to £80,000
£100,001 to £110,000
£110,001 to £120,000
£130,000 to £140,000
£160,001 to £170,000		 2025
£’000
3,224
299
4
167
14
3,708
2025
£’000
472
34
63
14
583
2025
2
1
-
-
1
1		 2024
£’000
3,088
239
3
154
16
3,500
2024
£’000
460
26
48
16
550
2024
1
-
1
1
-
-

A payment of £241,726 was made to the school in respect of staff costs incurred by the school for boarding related duties for the year ended 31 August 2025 (2024: £247,682). This is not part of staff costs disclosed above.

No member of the Board of Management received remuneration in the current year. No expenses were paid in the year. Termination benefits of £13,548 were paid to staff during the year (2024: £16,300).

The Foundation has a composite insurance policy which provides professional indemnity insurance cover for the Officers, Governors, Council Members and Trustees. The cost of the cover relating to the Trustees is inseparable from the cost of the total cover. The Charity Commission has made an order to authorise the provision of indemnity insurance for the Trustees.

37

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

11. TANGIBLE FIXED ASSETS

Group
COST
1 September 2024
Additions
Transfer
Disposals
31 August 2025
ACCUMULATED
DEPRECIATION
1 September 2024
Charge for year
Disposals
31 August 2025
NET BOOK VALUE
31 August 2024
31 August 2025
Foundation
COST
1 September 2024
Additions
Transfer
Disposals
31 August 2025
ACCUMULATED
DEPRECIATION
1 September 2024
Charge for year
Disposals
31 August 2025
NET BOOK VALUE
31 August 2024
31 August 2025		 Freehold
land and
buildings
£’000
38,028
-
777
(39)
38,766
(12,413)
(1,346)
3
(13,756)
25,615
25,010
Freehold
land and
buildings
£’000
38,028
-
777
(39)
38,766
(12,413)
(1,346)
3
(13,756)
25,615
25,010		 Projects in
progress
£’000
-
777
(777)
-
-
-
-
-
-
-
-
Projects in
progress
£’000
-
777
(777)
-
-
-
-
-
-
-
-		 Furniture,
equipment
and horses
£’000
1,996
62
-
(72)
1,986
(1,888)
(55)
72
(1,871)
108
115
Furniture,
equipment
and horses
£’000
1,992
50
-
(72)
1,970
(1,884)
(51)
72
(1,863)
108
107		 Motor
vehicles
£’000
237
28
-
(6)
259
(223)
(23)
6
(240)
14
19
Motor
vehicles
£’000
226
26
-
(6)
246
(213)
(21)
6
(228)
13
18		 Total
£’000
40,261
867
-
(117)
41,011
(14,524)
(1,424)
81
(15,867)
25,737
25,144
Total
£’000
40,246
853
-
(117)
40,982
(14,510)
(1,418)
81
(15,847)
25,736
25,135

38

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

11. TANGIBLE FIXED ASSETS

Freehold land and buildings were revalued at 31 March 2013 using the Depreciated Replacement Cost method of valuation by Richard Greenaway FRICS of Stanley Hicks. This method of valuation is used where there is no active market for the asset or no useful relevant evidence of recent sale transactions due to the specialised nature of the asset. The valuation which is incorporated in the figures below valued freehold land and buildings at 31 March 2013 at £24 million. Under FRS 102 the revalued amount or freehold buildings now equals deemed cost.

Borrowings from Lloyds Bank Plc, details of which are given in note 15, are secured against all property.

12. INVESTMENTS

Investments comprise:
UK Fixed Interest
Overseas Fixed Interest
Equities and Unit Trusts
Short term deposits
Group total investments
Investment in subsidiaries
Foundation total investments		 2025
£’000
541
676
10,433
11,650
634
12,284
-
12,284		 2024
£’000
961
263
9,543
10,767
591
11,358
-
11,358

The Trustees believe that the carrying value of the investments is supported by underlying assets and/or future cash flows.

UK Listed Investments
At 1 September
Additions
Disposal proceeds
Adjustments
Realised & unrealised gain on investment
Market value at 31 August
Historical cost at 31 August		 2025
£’000
11,209
1,708
(1,466)
-
690
12,141
8,971		 2024
£’000
9,916
2,315
(2,101)
-
1,079
11,209
8,742

Stocks and money held in the portfolio managed by Rathbones are held to the order of Lloyds Bank plc as security for the loan facilities. Details in note 15.

39

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

12. INVESTMENTS (continued)

NVESTMENTS (continued)
2025 2024
£ £
Investment in subsidiary at cost 101 101

Gatton Park Lettings Limited

The Foundation controls the ordinary share capital of Gatton Park Lettings Limited, a company incorporated in England and Wales (company registration number 03227685). The principal activity of Gatton Park Lettings Limited is the commercial letting of Gatton Hall and other site facilities. The whole of Gatton Park Lettings Limited’s taxable profits are donated under gift aid to the Foundation.

Turnover
Expenditure
Operating profit donated to the Foundation
Assets
Liabilities
Funds		 2025
£’000
11
(4)
7
11
(4)
7		 2024
£’000
102
(9)
93
117
(24)
93

The Gatton Trust Limited

The Foundation is the only member of The Gatton Trust Limited, a charitable company limited by guarantee and incorporated in England and Wales (company registration number 4216691, registered charity number 1101467). The principal activities of the company are the restoration and conservation of Gatton Park and the provision of access for the public to the parkland and the provision of educational resources.

Turnover
Expenditure
Operating surplus/(deficit)
Assets
Liabilities
Funds		 2025
£’000
173
(168)
5
243
(21)
222		 2024
£’000
193
(155)
38
239
(23)
216

Gatton Estates Limited

The Foundation controls the ordinary share capital of Gatton Estates Limited, a company incorporated in England and Wales (company registration number 12469691). The company was incorporated on 18 February 2020 and is yet to commence trading. It has adopted the exemption from preparing accounts under section 394A of the Act for the financial year ended 31 August 2025.

40

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

13. DEBTORS

DEBTORS
Trade debtors
Amounts owed by group
undertakings
Other debtors
Prepayments and
accrued income		 31 August 2025
Group
Foundation
£’000
£’000
58
44
-
17
198
198
222
221
478
480		 31 August 2024
Group
Foundation
£’000
£’000
260
156
-
24
745
745
371
351
1,376
1,276
1,276

Trade debtors are stated after bad debt provision of £315,239 (2024: £398,385). During the year bad debts totalling £52,233 (2024: £49,377) and credits of £15,933 (2024: £8,207) were written off.

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Taxation and social sec.
Other creditors
Amounts owed to group
undertakings
Lloyds loan
Boarding charges in
advance
Boarding charge deposits
Accruals and deferred
income		 31 August 2025
Group
Foundation
£’000
£’000
1,084
1,082
76
76
58
57
-
-
248
248
967
967
138
138
352
347
2,923
2,915		 31 August 2024
Group
Foundation
£’000
£’000
950
948
60
60
163
146
-
-
239
239
1,314
1,314
167
167
522
518
3,415
3,392		 31 August 2024
Group
Foundation
£’000
£’000
950
948
60
60
163
146
-
-
239
239
1,314
1,314
167
167
522
518
3,415
3,392
3,392

Amounts owed to group undertakings are unsecured, interest free and payable on demand.

41

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (continued)

Deferred income comprises boarding charges received in advance of the start of Autumn Term.

At 1 September
Amount released in year
Amount deferred in year
At 31 August		 31 August 2025
Group
Foundation
£’000
£’000
1,314
1,314
(1,314)
(1,314)
967
967
967
967		 31 August 2024
Group
Foundation
£’000
£’000
1,100
1,100
(1,100)
(1,100)
1,314
1,314
1,314
1,314		 31 August 2024
Group
Foundation
£’000
£’000
1,100
1,100
(1,100)
(1,100)
1,314
1,314
1,314
1,314
1,314

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Instalment debts
Due 2 to 5 years
Due after 5 years
Fee Deposits
Due 2 to 5 years
Due after 5 years
Dining Hall
Due 2 to 5 years
Due after 5 years
TOTAL		 31 August 2025
Group
Foundation
£’000
£’000
1,094
1,094
4,110
4,110
5,204
5,204
536
536
378
378
914
914
132
132
165
165
297
297
6,415
6,415		 31 August 2024
Group
Foundation
£’000
£’000
1,051
1,051
4,401
4,401
5,452
5,452
546
546
346
346
892
892
-
-
-
-
-
-
6,344
6,344		 31 August 2024
Group
Foundation
£’000
£’000
1,051
1,051
4,401
4,401
5,452
5,452
546
546
346
346
892
892
-
-
-
-
-
-
6,344
6,344
5,452
546
346
892
-
-
-
6,344

The Foundation’s principal bankers are Lloyds Bank Plc. The Foundation has three loan facilities and no overdraft facilities.

42

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (continued)

The outstanding bank loan of £4,251,315 carried interest-only payments until March 2021, after which it is repayable in monthly instalments over 20 years, finishing in March 2041. Interest is charged at a fixed rate of 3.044% on £4,000,000 of the loan, with the remaining balance subject to a variable rate of 2.31% plus base rate.

A loan of £1,300,000 was drawn in December 2022, the outstanding balance is £1,201,066. The loan is repayable in monthly instalments over 20 years. The interest rate is 2.31% plus base rate.

In granting loan facilities in 2011, Lloyds Bank Plc required a base rate cap agreement to be entered into until January 2024. The interest rate cap is 3.0%. No further base rate cap agreement was entered into in granting the £5.1m or £1.3m loans.

The loans are secured on all property. Stocks and money held in the portfolio managed by Investec are also held to the order of Lloyds Bank Plc.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group
Current year
Fixed assets
Investments
Net current assets
Non-current liabilities
Net assets
Comparative year
Fixed assets
Investments
Net current assets
Non-current liabilities
Net assets		 Unrestricted
funds
£’000
25,144
12,284
3,227
(6,415)
34,240
Unrestricted
funds
£’000
25,735
11,358
3,030
(6,344)
33,779		 Designated
funds
£’000
-
-
3,240
-
3,240
Designated
funds
£’000
-
-
2,934
-
2,934		 Restricted
funds
£’000
-
-
53
-
53
Restricted
funds
£’000
2
-
38
-
40		 Total funds
2025
£’000
25,144
12,284
6,520
(6,415)
37,533
Total funds
2024
£’000
25,737
11,358
6,002
(6,344)
36,753

43

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)

Foundation

Current year
Fixed assets
Investments
Net current assets
Non-current liabilities
Net assets
Comparative year
Fixed assets
Investments
Net current assets
Non-current liabilities
Net assets		 Unrestricted
funds
£’000
25,135
12,284
3,206
(6,415)
34,210
Unrestricted
funds
£’000
25,736
11,358
2,868
(6,344)
33,618		 Designated
funds
£’000
-
-
3,083
-
3,083
Designated
funds
£’000
-
-
2,816
-
2,816		 Restricted
funds
£’000
-
-
12
-
12
Restricted
funds
£’000
-
-
11
-
11		 Total funds
2025
£’000
25,135
12,284
6,301
(6,415)
37,305
Total funds
2024
£’000
25,736
11,358
5,695
(6,344)
36,445

17. GROUP STATEMENT OF FUNDS

Unrestricted funds:
- Foundation Fund
- Boarding School Fund
Restricted funds
Unrestricted funds:
- Foundation Fund
- Boarding School Fund
Restricted funds		 At 1 Sept
2024
£’000
33,897
2,816
40
36,753
At 1 Sept
2023
£’000
32,934
2,750
19
35,702		 Income

£’000
1,037
10,211
101
11,349
Income

£’000
1,082
10,789
87
11,959		 Expenditure
£’000
(1,596)
(8,924)
(50)
(10,569)
Expenditure
£’000
(1,202)
(9,679)
(26)
(10,907)		 Fund
transfers
£’000
1,056
(1,018)
(38)
-
Fund
transfers
£’000
1,084
(1,045)
(40)
-		 At 31 Aug
2025
£’000
34,394
3,085
53
37,532
At 31 Aug
2024
£’000
33,897
2,816
40
36,753

44

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

18. GROUP DESIGNATED FUNDS

Group unrestricted funds include the following designated funds:

Boarding School Fund
Legacy
Foundation designated funds
Gatton Trust – Park Conservation
Group designated funds
Boarding School Fund
John Philip Waddington Legacy
Foundation designated funds
Gatton Trust – Park Conservation
Group designated funds		 At 1 Sept
2024
£’000
2,816
-
2,816
118
2,934
At 1 Sept
2023
£’000
2,750
252
3,002
90
3,092		 New
designations
£’000
10,211
115
10,326
48
10,374
New
designations
£’000
10,790
(252)
10,538
48
10,586		 Utilised
£’000
(9,942)
(115)
(10,057)
(7)
(10,064)
Utilised
£’000
(10,724)
(10,724)
(20)
(10,744)		 At 31 Aug
2025
£’000
3,085
-
3,085
159
3,244
At 31 Aug
2024
£’000
2,816
-
2,816
118
2,934

New designations in Gatton Trust represent unrestricted funds set aside by the Trustees to fund approved expenditure on various projects, all of which involve the reconstruction and conservation of the gardens and parkland.

New designations in the Boarding School Fund represent boarding income for the year while amounts released represent boarding expenditure including other recognised gains/(losses) and net fund transfers to/from the Foundation Fund. The surplus on Boarding School Fund will be used principally to fund the future development and maintenance of the boarding estate.

45

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

19. GROUP RESTRICTED FUNDS

GROUP RESTRICTED FUNDS
At 1 Sept Income/ At 31 Aug
2024 Capital Utilised 2025
£’000 £’000 £’000 £’000
DfE building grants - 37 (37) -
Weir Bridge fund 1 - - 1
Sports Hall Fund 10 31 (34) 7
Williams College - 4 - 4
Foundationer Fund - 1 (1) -
Foundation restricted funds 11 73 (72) 12
Gatton Trust – Park Conservation 29 28 (16) 41
& Education
Group restricted funds 40 101 (88) 53
At 1 Sept Income/ At 31 Aug
2023 Capital Utilised 2024
£’000 £’000 £’000 £’000
DfE building grants - 40 (40) -
Weir Bridge fund 1 - - 1
Sports Hall Fund - 10 - 10
Foundationer Fund - 1 (1) -
Foundation restricted funds 1 51 (41) 11
Gatton Trust – Park Conservation 18 37 (26) 29
& Education
Group restricted funds 19 88 (67) 40

DfE building grants are received to fund specific fixed asset projects. Weir Bridge funds were received for the restoration of the Weir Bridge. The University of Bristol donated £1,000 as a prize fund for the Most Improved Student to be paid out equally over 10 years. Williams College is a prize for the Foundation. Donations to the Foundationer Fund are received specifically to support Foundationers.

46

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

20. FINANCIAL COMMITMENTS

The Foundation had the following future minimum lease payments under non-cancellable operating leases for assets, other than land and buildings, payable as follows:

Within one year
Within two to five years
After five years		 2025
£’000
39
77
-
116		 2024
£’000
37
101
12
150

The Foundation had no capital commitments at 31 August 2025 (2024: NIL)

21. CONSOLIDATED CASH FLOWS FROM OPERATING ACTIVITIES

CONSOLIDATED CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the year
Adjustments for:
(Gain) on investments
Interest paid
Investment income
Depreciation charge
Pension adjustment FRS102
Loss on sale of assets
Movements in working capital:
Decrease in debtors
Increase/(decrease) in creditors
Net cash inflow from group operations		 2025
£’000
778
(690)
231
(444)
1,418
-
25
898
(183)
2,033		 2024
£’000
1,051
(1,080)
242
(418)
1,442
-
-
66
598
1,901

47

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

22. ANALYSIS OF CHANGES IN NET DEBT

Other
At 1 Sept Cash non-cash At 31 Aug
2024 flows changes 2025
£’000 £’000 £’000 £’000
Cash and cash equivalents
Cash at bank and in hand 8,041 924 - 8,965
8,041 924 - 8,965
Borrowings
Debt due within one year (239) - (9) (248)
Debt due after one year (5,452) 239 9 (5,204)
(5,691) 239 - (5,452)
Total 2,350 1,163 - 3,513
Other
At 1 Sept Cash non-cash At 31 Aug
2023 flows changes 2024
£’000 £’000 £’000 £’000
Cash and cash equivalents
Cash at bank and in hand 6,768 1,273 - 8,041
6,768 1,273 - 8,041
Borrowings
Debt due within one year (296) - 57 (239)
Debt due after one year (5,691) 296 (57) (5,452)
(5,987) 296 - (5,691)
Total 781 1,569 - 2,350

48

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

23. FINANCIAL INSTRUMENTS
Financial assets held at amortised cost:
Trade debtors
Accrued income
Other debtors
Financial assets held at fair value through profit and loss:
Investments
Financial liabilities held at amortised cost:
Creditors: amounts falling due within one year
Trade creditors
Accruals
Lloyds loans
Other creditors
Creditors: amounts falling due after one year
Lloyds loans
Other creditors		 2025
£’000
58
5
198
261
12,284
1,084
252
248
272
1,856
5,204
1,211
6,415		 2024
£’000
261
114
745
1,120
11,358
950
515
239
390
2,094
5,452
892
6,344

49

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 (continued)

24. RELATED PARTY TRANSACTIONS

The Foundation enjoys a close working relationship with Royal Alexandra and Albert School which is a maintained school funded by Surrey County Council. The Foundation funds the boarding facilities and pastoral care, in partnership with Surrey Education Authority who fund the pupils’ tuition. The Foundation has the power to appoint the majority of the Governing Body to whom day to day management of the boarding at the school and the running of the Co-curricular program is delegated.

The Foundation provides funds to the school towards the running costs and the school recharges the Foundation a portion of staff costs for boarding duties carried out by teaching staff. There are cross charges between the school and the Foundation in relation to shared facilities e.g. utilities, maintenance, insurance, horse care costs and catering costs (free school meals) as well as shared personnel.

2025 2024
£’000 £’000
Grant to School 350 341
Salary reallocation charge 242 248
Recharged by Foundation to School:
Salaries 385 47
Other (net of VAT) 400 264
Recharged by School to Foundation:
Salaries 626 92
Other (net of VAT) 87 64
Purchases from related parties:
Gatton Community Theatre 1 1

During the year, the following key management personnel were customers of the Foundation:

Name Annual transaction value Amount outstanding at 31 Aug 2025
M Thomas £5,981.90 -
L Miller £4,944.60 -£1,849.20
J Czerpak £784.63 -
B Maddox £3,778.80 -

50

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL REFERENCE AND ADMINISTRATIVE DETAILS AS AT 31 AUGUST 2025

Registered Name: Royal Alexandra and Albert School
Charity Number: 311945
Principal Address: Foundation Office
Gatton Park
Reigate
Surrey
RH2 0TW
Tel: 01737 649050
Solicitors: Farrer & Co LLP
66 Lincoln’s Inn Fields
London
WC2A 3LH
Bankers: Lloyds Bank plc
1/5 The Broadway
Crawley
Surrey
RH10 1DU
Investment Advisers: Investec Wealth & Investment Ltd
30 Gresham Street
London
EC2V 7QN
Independent Auditors: Moore Kingston Smith LLP
Chartered Accountants and Statutory Auditors
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL

51

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS AS AT 31 AUGUST 2025 (continued)

PATRON

HRH The Duchess of Gloucester

PRESIDENT

HRH The Duchess of Gloucester

BOARD OF MANAGEMENT

Andrew Hodgkin Cindy Black Edward Winter Nishma Acharya John Billingham Gary Griffin Ononuju Irukwu Elizabeth Tadd Dan Mewett Kanika Sachdeva Ryan Ramsey Charles Wates BSc MRICS

Chair Honorary Treasurer Comptroller

appointed 24 September 2024 appointed 24 September 2024 resigned 25 March 2025 resigned 26 June 2025

MEMBERS OF THE COUNCIL:

The Bishop of Croydon The Lord Lieutenant of the County of Surrey The Rt Hon The Lord Mayor of London The Mayor of Reigate & Banstead The Chairman of Surrey County Council The Director General of Military Training, modern day equivalent position: Commandant, Soldier Academy Cindy Black

ex officio, Honorary Treasurer, Board of Management

Canon Peter Bruinvels David Frank

David Frank ex officio, Chairman Board of Management until 16 July 24 Andrew Hodgkin ex officio, Chairman Board of Management from 2 August 24

William Gillen Ali Henderson Richard Link Dr Julie Llewellyn

52

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS AS AT 31 AUGUST 2025 (continued)

MEMBERS OF THE COUNCIL (continued)

Nick Owen Rebecca Paul MP appointed 27 September 2024 Ryan Ramsey Dame Mary Richardson Dorothy Ross-Tomlin resigned 26 June 2025 Paul Ryder deceased 5 July 2024 Stuart Southall appointed 15 May 2024 Katie Sunley Sally Varah DL Charles Wates appointed 26 June 2025 Richard Wells appointed 1 December 2024 Jonathan White Graham Williams Edward Winter ex officio – Comptroller Board of Management

FINANCE & GENERAL PURPOSES (F&GP) COMMITTEE

Edward Winter Chair until 11 September 2024 Cindy Black ex officio – Honorary Treasurer of Board of Management appointed 26 March 2024 (Chair from 11 September 2024) Andrew Hodgkin Dan Mewett appointed 15 November 2025 Ryan Ramsey resigned 25 March 2025 Morgan Thomas Executive Head Charles Wates resigned 26 June 2025

INVESTMENT COMMITTEE

Andrew Hodgkin Chair Cindy Black Ononuju Irukwu Edward Winter Edward Williams

53

Docusign Envelope ID: 7D083DBE-9455-4DCB-8935-8AADC4E07BFE

ROYAL ALEXANDRA AND ALBERT SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS AS AT 31 AUGUST 2025 (continued)

BURSARY COMMITTEE

Elizabeth Tadd Chair, appointed 7 October 2024 Nishma Acharya John Billingham Kanika Sachdeva appointed 7 October 2024 Jonathan Boyce Chaplain Elizabeth Lowe Bursar Morgan Thomas Executive Head

GATTON TRUST LIMITED

David Frank Chair Peter Dawson Nishma Acharya Maggie Kippen Alan Mortlock Helen Neve Gail Sperrin Nishma Acharya appointed 13 November 2024 Elizabeth Lowe

GATTON PARK LETTINGS LIMITED Covered under the F&GP committee

Charles Wates resigned 25 June 2025 Nishma Acharya appointed 25 June 2025 Elizabeth Lowe

GATTON ESTATES LIMITED Covered under the F&GP committee

Charles Wates resigned 25 June 2025 Edward Winter James Taylor

Only members of the committees have been listed, members ‘in attendance’ have not been included.

Names in italics are Committee members who are not members of the Board of Management

54