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2025-07-31-accounts

THE HAWTHORNS EDUCATIONAL TRUST LIMITED

(a Registered Charity and Company Limited by Guarantee)

and its subsidiary company operating as

The Hawthorns School

GOVERNORS' ANNUAL REPORT AND AUDITED CONSOLIDATED ACCOUNTS

For the 11 months ended 31 July 2025

Company Registration Number-00949504 Charity Commission Registration-Number-312067

www.hawthorns.com

The Hawthorns Educational Trust Limited

CONTENTS

Page
Governors' Annual Report (incorporating a Group Strategic Report 3
Independent Auditors Report 8
Consolidated Statement of Financial Activities 11
Consolidated Balance Sheet 12
Company Balance Sheet 13
Consolidated Cashflow Statement 14
Notes to the Accounts 15

The Hawthorns Educational Trust Limited

GOVERNORS' ANNUAL REPORT (incorporating a Group Strategic Report) Period Ended 31 July 2025

The Governors (who are also directors of the Charity for the purposes of the Companies Act) present their Annual Report, together with the Audited Accounts of The Hawthorns Educational Trust Limited (the Company) for the period ended 31 July 2025, which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The accounts comply with the Charities Act 2011, the Companies Act 2006, the School's Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Hawthorns School was founded in 1926. The Hawthorns School Educational Trust Limited (the Trust) is a company limited by guarantee, number 00949504, and was registered at Companies House on 7 March 1969.The Trust is a registered charity, number 312067, registered at the Charity Commission on 7 May 1970. The charity is governed by its Memorandum and Articles of Association dated 7 May 1970. The charity operates The Hawthorns School, an independent nursery and preparatory school for boys and girls aged 6 months to 13, in Bletchingley, Surrey.

Governors

The Governors, who are the directors of the Group for the purposes of company law, and are the charity trustees, for the purposes of charity law, during the year and since, were as follows:

Mr BJC Dyer (retired 15 July 2025) Mr RJ Buckingham (retired 22 January 2025) Mr MJ Dockery * Mr RHC Kirkland (retired 22 January 2025) Mr HJW Oliver (retired 22 January 2025) Mrs SE Raja * ** Mr SJO Roche (retired 22 January 2025) Mr DWJ Searle (retired 28 October 2025) Mr MB Tinker (retired 22 January 2025) Mrs BS Lee (retired 22 January 2025) Mrs C Black-Nyaga * (appointed 22 January 2025) Mr DJW Chalmers * (appointed 22 January 2025) Mr MR Mear (appointed 22 January 2025 and retired 11 September 2025) Mrs ML Whenman * (appointed 22 January 2025) Mrs J Stewart * (appointed 13 March 2025)

** Parent of current pupil at date of signing these accounts.

3

The Hawthorns Educational Trust Limited GROUP GOVERNORS’ ANNUAL REPORT (incorporating a Group Strategic Report) Period Ended 31 July 2025

Governing body

Governors are elected by the governing body. At each annual general meeting the nearest number to one third of the total Governors retire and are eligible for re-election. The Governors to retire each year are those who have been longest in office since their last election.

In order to maintain a broad skill mix, Governors are selected from a wide range of professions and, in the event of particular skills being lost due to retirement; individuals with the requisite skills are approached to offer themselves for election to the governing body.

Governors derive no financial benefit from their office other than as shown in the notes to the accounts, but are reimbursed for any travel or administrative expenses.

Governor induction and training

Governor induction, following appointment, comprises the review of a portfolio of documentation covering all aspects of the Group, including the most recent audited accounts, the Memorandum and Articles of Association, copies of Board Meeting Minutes, School Prospectus, recent newsletters to parents, staff lists with responsibilities, governance documentation with subcommittee details and a copy of the Charity Commission publication, 'The Essential Trustee'.

Governors are expected to attend subcommittee meetings (depending on their skills; see subcommittee details below) as required and to attend termly Board Meetings. Governors are encouraged to visit the School during term time, to meet the pupils, Headmaster, Bursar and Senior Leadership Team.

Training, after appointment, is provided by comprehensive mailing of information relevant to the School's day to day activities and by a formal training session held each year at a board meeting. The Chairman of Governors attends an outside training course run by IAPS (Independent Association of Preparatory Schools) during the first year of office. Governors are encouraged to visit the Charity Commission website for up to date information.

Key executives, professional advisers and contact information:

Headmaster Mr A E Floyd Bursar and Company Secretary Mr P I Walker Senior Leadership Team Mr A Duggan Miss S C Fowler Ms A M Gallagher Mr M W Goldhawk Mrs K-A Kirkman Mr A J Morris Mr R Skottowe

Address and Registered Office The Hawthorns Educational Trust Limited T/A The Hawthorns School Pendell Court Bletchingley, Surrey RH1 4QJ

4

The Hawthorns Educational Trust Limited GROUP GOVERNORS’ ANNUAL REPORT (incorporating a Group Strategic Report) Period Ended 31 July 2025

Bankers Lloyds Bank plc 1 London Road Redhill Surrey RHl lND Auditors Moore Kingston Smith LLP 6[th] Floor, 9 Appold Street London EC2A 2AP School Website www.hawthorns.com Email office@hawthorns.com

Organisational management

The Governors determine the general policy of the Trust. The key management personnel of the School are the Governors, the Headmaster, the Bursar and the Senior Leadership Team. The Governors meet, as a body, at least once each term. Various subcommittees meet to deal with matters during the year as required.

The remuneration of the Headmaster and the Bursar is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the School's success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The objects are set out in the Memorandum of Association as the education of girls and boys. It is the aim of the Trust, as an independent educational establishment, to lay academic, physical and moral foundations of the highest quality. These foundations will equip the School's pupils with self- confidence and a desire to contribute to the wider community and, in preparing them for the next stage of their education, will enable them to face and overcome the many challenges of life ahead.

In setting objectives and planning activities, the Governors have given due consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on feecharging.

STRATEGIC REVIEW

Achievements and Performance

The School enjoyed a successful academic year with 31% of leavers being awarded scholarships to join their senior school.

In the School, Pupils have continued to enjoy success in a wide variety of sports, activities, and creative pursuits. The all-round education that the Hawthorns seeks to deliver continues to result in high levels of pupil success.

Efforts continue to ensure that no suitable pupil is denied an education at the School on the grounds of affordability. Accordingly, the Governors are pleased to offer means-tested bursaries (assisted places) to parents with limited income. During the period bursary awards were made to 8 pupils (2024: 8) and their value was £79,818 (2024: £89,011).

With effect from 31 December 2024, Caterham School became the sole member of The Hawthorns Educational Trust Ltd. Significant recent external events, including the imposition of VAT on school fees, the removal of business rates relief and increases in costs of employing staff resulted in significant challenges best met from a position of financial and collaborative strength. This has been achieved by joining the Caterham Family of Schools.

5

The Hawthorns Educational Trust Limited GROUP GOVERNORS’ ANNUAL REPORT (incorporating a Group Strategic Report) Period Ended 31 July 2025

Financial Review

The Trust received total income of £8,381,082 (2024: £8,484,264) and the consolidated net incoming resources for the year amounted to £502,842 (2024: net incoming resources of £15,363). Total funds carried forward were £7,579,441 which includes £25,000 of restricted funds (2024: £7,076,599 which included £25,000 of restricted funds). The balance of £7,554,441 is held as unrestricted funds (2024: £7,051,599).

Capital expenditure has been undertaken to make improvements to the School facilities. This amounted to £285,856 during the year (2024: £627,904). There is a plan of continuous upgrading of the School's facilities to keep pace with the requirements of a leading nursery and preparatory school.

Change of financial year end

To align with Caterham School, the financial year end was changed from August to July and so the financial statements have been prepared for the 11 months ended 31 July 2025.

This change has affected the Net Income for the period which was £502,842. For the year ended 31 August 2025 the Net Income was £79,469. The difference is because the school carries ongoing costs in August, whilst income is much reduced due to the holidays. Trade debtors increased significantly compared to August 2024 because invoices are raised the end of July and many are paid during August. Camp Hawthorns is much lower than the year ended 31 August 2024 as a significant proportion of that income occurs in August.

Investment in subsidiary

The Trust owns 100% of the shares of its subsidiary company, The Hawthorns (Pendell Court) Limited, which in turn owns the freehold of the premises occupied by the Trust. The accounts consolidate the financial statements of both companies.

The subsidiary is a non-trading company and the latest un-audited accounts have been made up to 5 April 2025 and it is these accounts that have been used in the consolidation. Both companies are incorporated in the United Kingdom and registered in England and Wales.

Reserves policy

All unrestricted funds are used to finance building development projects and generally improve the overall facilities of the School. Donations towards specific projects are included within restricted funds. Donations to The Hawthorns Foundation are allocated to restricted funds. General donations are allocated to unrestricted funds. The Governors have assessed the assets available and the obligations of the Trust and have concluded that the assets are sufficient to meet its obligations, based on current operations and pupil numbers.

Plans for Future Periods

The School continually plans ahead and examines ways in which it could adapt to all future challenges. Plans focus on ensuring the School is in the best position to offer an excellent education at an affordable price. The strategic alliance with the Caterham Family of Schools has opened up significant opportunities which will benefit the School’s pupils and their education.

The School has been active in ensuring that all new families are welcomed and enjoy a Hawthorns education for their child. The School’s marketing and admission policy has ensured that the School represents the ethnicity of the local area. The School sees that this year 24% of its intake comes from ethnically diverse families. The EDI committees (staff and parents) review and monitor ways in which the School can learn and become more inclusive.

Principal Risks and Uncertainties

The Governors assess the major risks to which the School is exposed, particularly relating to its operations and finances, on a regular basis. The most significant risk is considered to be a possible fall in the number of pupils attending the School, especially in with high cost of living landscape, the imposition of VAT on and other costs affecting school fees and a declining birth rate.

6

The Hawthorns Educational Trust Limited GROUP GOVERNORS’ ANNUAL REPORT (incorporating a Group Strategic Report) Period Ended 31 July 2025

STATEMENT OF GOVERNORS' RESPONSIBILITIES

The Governors, who are also the directors of The Hawthorns Educational Trust Limited for the purposes of company law, are responsible for preparing the Governors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Trust and its subsidiary and of the incoming resources and application of resources, including the income and expenditure, of the group for that year. In preparing those financial statements, the Governors are required to:

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

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the Governors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

This report, incorporating the Strategic Report, was approved by the Board of Governors on 27 November 2025 and signed on behalf of the Board.

Mr D Chalmers

Chair of Governors

7

The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR’S REPORT Period ended 31 July 2025

Opinion

We have audited the financial statements of The Hawthorns Educational Trust Limited (the ‘charitable company’) and its subsidiary (the ‘group’) for the period ended 31 July 2025. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have 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 governors’ 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 doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

8

The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR’S REPORT Period ended 31 July 2025

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

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

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 7 , the Governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors 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 governors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

9

The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR’S REPORT Period ended 31 July 2025

Our approach was as follows:

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

mM povket

Neil Finlayson

for and on behalf of Moore Kingston Smith LLP Statutory Auditors

Dated: 18 December 2025

10

The Hawthorns Educational Trust Limited CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Including Income and Expenditure Account) Period Ended 31 July 2025

Notes
Income from:
Donations and legacies
Charitable activities
Fees receivable
3
Other educational income
3
Other trading activities
Sports centre
4
Investments
Bank interest
Other income
5
Total income
Expenditure on:
Raising funds
Sports centre
Charitable activities
Education
Total expenditure
6
Net movement in funds
Reconciliation of funds
Fund balance at 1 September 2024
Fund balance at 31 July 2025
Unrestricted
funds
£
2,225
7,193,848
604,417
544,294
26,724
9,574
8,381,082
583,354
7,294,886
7,878,240
502,842
7,051,599
7,554,441
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
25,000
25,000
Total
11 month
period
ended
2025
£
2,225
7,193,848
604,417
544,294
26,724
9,574
8,381,082
583,354
7,294,886
7,878,240
502,842
7,076,599
7,579,441
Total
Year
ended
2024
£
495
7,381,964
397,127
658,985
5,497
10,196
8,454,264
659,537
7,779,364
8,438,901
15,363
7,061,236
7,076,599

This statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. All activities are classed as continuing.

There are no recognised gains or losses other than those reported on the Statement of Financial Activities.

The notes on pages 15 to 26 form part of these financial statements.

11

The Hawthorns Educational Trust Limited CONSOLIDATED BALANCE SHEET

As at 31 July 2025

As at 31 July 2025 As at 31 July 2025 As at 31 August 2024 As at 31 August 2024
Notes £ £ £ £
FIXED ASSETS
Tangible fixed assets 10 9,694,183 9,834,998
CURRENT ASSETS
Debtors 12 2,723,951 1,778,461
Cash at bank and in hand 1,659,059 2,017,712
Total current assets 4,383,010 3,796,173
Creditors - Amounts falling due within one
year 13 (3,980,173) (3,652,997)
NET CURRENT ASSETS 402,837 143,176
10,097,020 9,978,174
Long term liabilities
Creditors - Amounts falling due after more
than one year 14 (2,517,579) (2,901,575)
TOTAL NET ASSETS 7,579,441 7,076,599
Represented by:
Unrestricted funds 17 7,554,441 7,051,599
Restricted funds 16 25,000 25,000
TOTAL NET ASSETS 7,579,441 7,076,599

These accounts were approved by the Board on 27 November 2025

….................................................... Mr D Chalmers

Company number 00949504

The notes on pages 15 to 26 form part of these financial statements.

12

The Hawthorns Educational Trust Limited COMPANY BALANCE SHEET

As at 31 July 2025

As at 31 July 2025 As at 31 July 2025 As at 31 August 2024 As at 31 August 2024
Notes £ £ £ £
FIXED ASSETS
Tangible fixed assets 10 9,584,183 9,724,998
Investment in subsidiary 11 71,534 71,534
9,655,717 9,796,532
CURRENT ASSETS
Debtors 12 2,723,927 1,778,437
Cash at bank and in hand 1,659,059 2,017,712
Total current assets 4,382,986 3,796,149
Creditors - Amounts falling due within one
year 13 (3,979,933) (3,652,757)
NET CURRENT ASSETS 403,053 143,392
10,058,770 9,939,924
Long term liabilities
Creditors - Amounts falling due after more
than one year 14 (2,517,579) (2,901,575)
TOTAL NET ASSETS 7,541,191 7,038,349
Represented by:
Unrestricted funds 17 7,516,191 7,013,349
Restricted funds 16 25,000 25,000
TOTAL NET ASSETS 7,541,191 7,038,349

These accounts were approved by the Board on 27 November 2025

….................................................... Mr D Chalmers

Company number 00949504

The notes on pages 15 to 26 form part of these financial statements.

13

The Hawthorns Educational Trust Limited CONSOLIDATED CASHFLOW STATEMENT

Period Ended 31 July 2025

£
£
Cash flows from operating activities:
Net income/expenditure for the period
502,842
Adjustments for:
Depreciation
426,671
Interest payable
176,775
Interest receivable
(26,724)
Decrease/(Increase) in debtors
(945,490)
(Decrease)/Increase in creditors
5,960
Net cash provided by operating activities
(362,808)
Cash flows from investing activities
Purchase of fixed assets
(285,856)
Bank interest received
26,724
Net cash used in investing activities
(259,132)
Cash flows from financing activities
Cash inflows from new borrowing
-
Repayments of borrowing
(62,780)
Interest payable
(176,775)
Net cash provided by financing activities
(239,555)
Change in cash and cash equivalents in the year
(358,653)
Cash and cash equivalents at the beginning of the
period
2,017,712
Cash and cash equivalents at the end of the period
1,659,059
Analysis of cash and cash equivalents
Cash at bank and in hand
1,659,059
Bank loans due within one year
(253,656)
Bank loans due after one year
(2,344,161)
Total cash and cash equivalents
(938,758)
31 July 2025
11 month period ended
£
£
15,363
443,978
184,043
(5,497)
117,779
440,421
1,180,724
(627,904)
5,497
(622,407)
443,076
(69,270)
(184,043)
189,763
763,443
1,254,269
2,017,712
2,017,712
(67,520)
(2,593,077)
(642,885)
31 August 2024
Year ended
£
£
15,363
443,978
184,043
(5,497)
117,779
440,421
1,180,724
(627,904)
5,497
(622,407)
443,076
(69,270)
(184,043)
189,763
763,443
1,254,269
2,017,712
2,017,712
(67,520)
(2,593,077)
(642,885)
31 August 2024
Year ended
763,443
1,254,269
2,017,712
2,017,712
(67,520)
(2,593,077)
(642,885)

The notes on pages 15 to 26 form part of these financial statements.

14

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

1 STATUTORY INFORMATION

The charity is a charitable company, limited by guarantee, registered in England and Wales. The registered office, company number and charity number are detailed in the Governors' annual report.

2 ACCOUNTING POLICIES

Basis of preparation

The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities' Statement of Recommended Practice (SORP (FRS102) and Financial Reporting Standard 102.

The charitable company meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy.

After reviewing the charity's forecasts and projections, the Governors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its accounts.

Currency

The Group presents its accounts in sterling and figures are rounded to the nearest £.

Group accounts

The accounts consolidate the results of the charity and its wholly owned subsidiary The Hawthorns (Pendell Court) Limited on a line by line basis. A separate Statement of Financial Activities (including income and expenditure account) for the charity has not been presented as the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The subsidiary is a non trading company. Its latest un-audited accounts have been made up to 5 April 2025 and it is these accounts that have been used in the consolidation.

Income

Donations received for the general purposes of the School are credited to unrestricted funds except insofar as they are incapable of financial measurement. Donations for purposes restricted by the wishes of the donor are taken to restricted fuds where these wishes are legally binding on the charity.

School fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees received in advance of education to be provided in future years are held as liabilities until either taken to income in the term when used or else refunded. They are stated after deducting bursaries, scholarships and other fee remissions granted by the school.

Sports centre, rental and investment income are accounted for in the period in which they are receivable. Other incoming resources are accounted for when received.

All income is recognised net of VAT.

Expenditure

Expenditure is accounted for on an accruals basis, with value added tax included within the item of expense to which it relates. Overhead and other costs not directly attributable to a particular functional activity category are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year.

Governance costs comprise the costs of running the charity, including strategic planning for its future development, also internal and external audit, any legal advice for the Governors, and all the costs of complying with constitutional and statutory requirements, such as the cost of board and committee meetings and preparing statutory accounts and satisfying public accountability.

The irrecoverable element of VAT is included with the item of expense to which it relates.

15

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

2 Accounting policies (Continued)

Assets

Fixed assets are shown on the balance sheet at cost less accumulated depreciation. Current assets are shown at the lower of cost and net realisable value.

Depreciation

Depreciation is provided on fixed assets to write off their cost over their estimated useful life as follows:

Freehold and short leasehold property - 2% - 10% straight line Electrical, computer and garden equipment - 20% straight line Fixtures, fittings, tools and equipment - 10% straight line

Pension schemes

Teaching staff are members of the Teachers' Pension Scheme (TPS), a defined benefit scheme administered by the Teachers' Pension Agency. Contributions to the Scheme are charged to the Statement of Financial Activities as they fall due. The Teachers' Pension Scheme is an unfunded scheme. Contributions on a "pay as you go" basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. Actuarial valuations are carried out on a notional set of investments. Under the definitions set out in FRS102, the Teachers' Pension Scheme is a multi-employer pension scheme. The school is unable to identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly, under FRS102 the scheme is accounted for as if it were a defined contribution scheme.

The School also contributes to personal pension schemes for non-teaching staff. Teachers that joined the school from September 2022 are part of this scheme.

Operating lease rentals

Rentals paid in respect of assets held under operating leases are taken to the Statement of Financial Activities as they fall due.

Investments

Investments consist of a shareholding in the group subsidiary and are held at cost.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments. The Governors seek to use short and medium term deposits where possible to maximise the return on monies held at the bank and to manage cash flow.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Debtors

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

Fund accounting

Unrestricted funds comprise those funds which can be used in accordance with the charitable objectives at the discretion of the Governors.

Restricted funds are those funds which can be used in accordance with the specific restrictions imposed by the donor or which have been raised by the charity for a specific purpose. The cost of raising and administering such funds is charged against the funds and the School reimburses the costs from unrestricted funds. The aim and use of each restricted fund is set out further in the notes to the accounts.

16

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

2 Accounting policies (Continued)

Turnover

The turnover of the charity is wholly attributable to the object of the charity as stated in the Governors' Report and is earned entirely within the UK.

Taxation

The charitable company is registered as a charity and all of its income falls within the exemptions under Part 11 of the Corporation Tax Act 2010.

Deferred taxation in the subsidiary company arising on the valuation of the freehold is not provided for as, in the opinion of the directors of the Group, the liability is unlikely to arise.

Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The Governors do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.

3 Income from Charitable Activities

Fees receivable consist of:
School fees
Less: Bursaries, scholarships and discounts
Other educational income
Other fees and income
Income from other trading activities
Sports lettings
Sports coaching
Camp Hawthorns
Other trading
Total sports centre income
Other lettings and activities
Other income
Registration fees
11 months
2025
£
7,605,092
(411,244)
7,193,848
604,417
7,798,265
85,739
323,261
129,809
4,436
543,245
1,049
544,294
9,574
9,574
Year
2024
£
7,806,427
(424,463)
7,381,964
397,127
7,779,091
87,165
355,171
207,260
8,470
658,066
919
658,985
10,196
10,196

4 Income from other trading activities

5 Other income

17

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

6 Analysis of expenditure
Staff costs
£
Cost of raising funds
Lettings (Inc sports centre)
337,792
Total cost of raising funds
337,792
Charitable activities
Teaching
3,991,086
Welfare
-
Premises
207,462
Finance costs
-
Support and governance
466,008
Total charitable expenditure
4,664,556
Total expenditure
5,002,348
Comparative total expenditure
Staff costs
£
Cost of raising funds
Lettings (Inc sports centre)
364,696
Total cost of raising funds
364,696
Charitable activities
Teaching
4,212,426
Welfare
28,371
Premises
210,355
Finance costs
-
Support and governance
476,892
Total charitable expenditure
4,928,044
Total expenditure
5,292,740
Analysis of support and governance costs
Governance costs:
Auditors' remuneration for audit services
Support costs:
Auditors remuneration for non audit services
Support staff wages, NI and pension costs
Other support costs
Depreciation
£
-
-
172,162
-
254,509
-
-
426,671
426,671
Depreciation
£
-
-
179,076
-
264,724
-
-
443,800
443,800
Other
£
245,562
245,562
383,062
606,013
585,582
198,291
430,711
2,203,659
2,449,221
Other
£
294,841
294,841
396,361
615,290
656,217
198,628
541,024
2,407,520
2,702,361
Total
11 months
2025
£
583,354
583,354
4,546,310
606,013
1,047,553
198,291
896,719
7,294,886
7,878,240
Total
2024
£
659,537
659,537
4,787,863
643,661
1,131,296
198,628
1,017,916
7,779,364
8,438,901
2025
£
16,500
-
466,008
414,211
896,719
Total
Year
2024
£
659,537
659,537
4,787,863
643,661
1,131,296
198,628
1,017,916
7,779,364
8,438,901
2024
£
15,000
14,388
476,892
511,636
1,017,916

Net income is stated after charging £67,255 (2024: £42,358) to operating lease rentals included within premises costs.

18

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

7 Comparative Statement of Financial Activities for the year ended 31 August 2024

Income from:
Donations and legacies
Charitable activities
Fees receivable
Other trading activities
Sports centre
Investments
Bank interest
Other income
Total income
Expenditure on:
Raising funds
Sports centre
Charitable activities
Education
Total expenditure
Net income
Transfer between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Fund balances carried forward
Unrestricted
funds
£
495
7,779,091
658,985
5,497
10,196
8,454,264
659,537
7,779,364
8,438,901
15,363
195,479
210,842
6,840,757
7,051,599
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
(195,479)
(195,479)
220,479
25,000
Total
2024
£
495
7,779,091
658,985
5,497
10,196
8,454,264
659,537
7,779,364
8,438,901
15,363
-
15,363
7,061,236
7,076,599

19

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

8 Staff costs

Salaries and wages
Social security costs
Pension costs
11 months
Year
2025
2024
£
£
3,878,805
4,170,433
410,897
393,628
712,646
728,679
5,002,348
5,292,740
Number of employees whose emoluments for the year exceeded
£60,000
No. No.
£60,000 to £69,999 3 3
£70,000 to £79,999 2 2
£90,000 to £99,999 1 -
£150,000 to £159,999 1 1

Contributions totalling £122,509 (2024: £115,826) were made during the period to a pension scheme on behalf of the above employees.

The average monthly headcount was 145 staff (2024: 149 staff) and the average monthly number of full time equivalent employees during the period was:

No.
Teaching and teaching assistants
72
Administration, kitchen, maintenance and sports centre
29
101
2025
£
Aggregate employee benefits of key management personnel
1,011,423
The key management personnel of the school are detailed in the Governors' report.
No.
74
28
102
2024
£
1,049,668

During the year settlement agreement payments totalling £44,806 (2024: £Nil) were payable.

9 Operating surplus

Operating surplus
2025 2024
£ £
Included within the operating surplus for the period are the following:
Charitable activities - Education
Operating lease rentals 67,255 42,538
Governance
Auditors' fees - Audit services 16,500 15,000
Auditors' fees - other services - 14,388

As described in the notes to the accounts, no separate Statement of Financial Activities has been prepared for the School alone. The School contributed a surplus of £502,842 to the surplus of the Group for the period (2024: £29,913 to the surplus).

20

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

10 Tangible Fixed Assets

The Group
Cost
At 1 September 2024
Additions
Disposals
At 31 July 2025
Depreciation
At 1 September 2024
Charge for the period
Eliminated on disposals
At 31 July 2025
Net Book Value
At 31 July 2025
At 31 August 2024
The Company
Cost
At 1 September 2024
Additions
Disposals
At 31 July 2025
Depreciation
At 1 September 2024
Charge for the period
Eliminated on disposals
At 31 July 2025
Net Book Value
At 31 July 2025
At 31 August 2024
Freehold
property
£
13,841,055
141,098
-
13,982,153
4,376,876
325,915
-
4,702,791
9,279,362
9,464,179
£
13,731,055
141,098
-
13,872,153
4,376,876
325,915
-
4,702,791
9,169,362
9,354,179
Electrical,
computer &
garden
Equipment
£
498,131
663
-
498,794
429,185
14,544
-
443,729
55,065
68,946
£
498,131
663
-
498,794
429,185
14,544
-
443,729
55,065
68,946
Fixtures,
fittings,
tools &
equipment
£
940,488
144,095
-
1,084,583
638,615
86,212
-
724,827
359,756
301,873
£
940,488
144,095
-
1,084,583
638,615
86,212
-
724,827
359,756
301,873
Total
£
15,279,674
285,856
-
15,565,530
5,444,676
426,671
-
5,871,347
9,694,183
9,834,998
£
15,169,674
285,856
-
15,455,530
5,444,676
426,671
-
5,871,347
9,584,183
9,724,998

The freehold property shown in the accounts of the company relates to improvements made to the freehold property owned by the subsidiary company and is therefore added to the freehold property in the accounts of the group. The market value of freehold properties is estimated by the Governors to be in exceeds of the book value at the period end.

21

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

11 Investment in subsidiary

Investment in subsidiary
2025 2024
£ £
Investment - Shares at cost 71,534 71,534

The Company owns 100% of the shares of the subsidiary company The Hawthorns (Pendell Court) Limited, company number 700823, which owns the freehold of the premises occupied by the Trust. Both companies are incorporated in the United Kingdom and registered in England and Wales.

The trading results of The Hawthorns (Pendell Court) Limited for the year ended 5 April 2025 are:

Profit for the year
Capital and reserves
Debtors
Trade debtors
Other debtors
Prepayments
Amounts owed by parent undertaking
Amounts owed by subsidiary company
2025
2024
£
£
2,451,427
1,623,511
100,563
14,325
168,461
140,625
3,500
-
-
-
2,723,951
1,778,461
Group
£Nil
109,784
2025
2024
£
£
2,451,403
1,623,487
100,563
14,325
168,461
140,625
3,500
-
-
-
2,723,927
1,778,437
Company
£Nil
109,784
2025
2024
£
£
2,451,403
1,623,487
100,563
14,325
168,461
140,625
3,500
-
-
-
2,723,927
1,778,437
Company
1,778,437

12 Debtors

13 Creditors - Amounts falling due within one year

Bank loans and overdrafts
Fee deposits
Deferred income
Amounts owed to group undertakings
Trade creditors
Social security and other taxation
Other creditors and accruals
2025
2024
£
£
253,656
67,520
294,500
247,600
2,466,400
2,625,173
-
-
104,512
175,966
421,400
93,895
439,705
442,843
3,980,173
3,652,997
Group
2025
2024
£
£
253,656
67,520
294,500
247,600
2,466,400
2,625,173
-
-
104,512
175,966
421,400
93,895
439,465
442,603
3,979,933
3,652,757
Company
2025
2024
£
£
253,656
67,520
294,500
247,600
2,466,400
2,625,173
-
-
104,512
175,966
421,400
93,895
439,465
442,603
3,979,933
3,652,757
Company
3,652,757

22

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

14 Creditors - Amounts falling due after more than one

year

Long terms loans
Deferred income
Loan maturity analysis
Repayable in less than one year (Note 13)
Repayable in 1-2 years
Repayable in 2-5 years
Repayable in over 5 years
2025
2024
£
£
2,344,161
2,593,077
173,418
308,498
2,517,579
2,901,575
253,656
67,520
253,656
250,311
760,968
302,705
1,329,537
2,348,559
2,597,817
2,969,095
Group
2025
2024
£
£
2,344,161
2,593,077
173,418
308,498
2,517,579
2,901,575
253,656
67,520
253,656
250,311
760,968
302,705
1,329,537
2,348,559
2,597,817
2,969,095
Company
2025
2024
£
£
2,344,161
2,593,077
173,418
308,498
2,517,579
2,901,575
253,656
67,520
253,656
250,311
760,968
302,705
1,329,537
2,348,559
2,597,817
2,969,095
Company
2,901,575
67,520
250,311
302,705
2,348,559
2,969,095

Interest on the loan is charged at 2.55% above base rate. The loan is repayable in February 2043.

Total loan repayments during the period amounted to £239,405 (2024: £69,270).

The company also has a Bank overdraft facility. The loans and overdraft are secured by a fixed and floating charge on the Group's freehold property. The overdraft was not being used at the year end.

15 Advanced Fees Payment Scheme

Parents may enter into a contract to pay the school tuition fees in advance. The money may be returned, subject to specific conditions, upon receipt of one term's notice. Assuming pupils will remain in the School, advance fees will be applied as below:

Due within one year
Due after more than one year
2025
2024
£
£
216,344
291,894
166,808
308,498
383,152
600,392

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

Balance at the beginning of the period
Amounts received during the period
Amounts credited to pupil accounts for fees
Balance at the end of the period
2025
2024
£
£
600,392
174,232
-
597,968
(217,240)
(171,808)
383,152
600,392

23

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

16 Restricted Fund

The Hawthorns Foundation provides a long term fund to assist the School with bursary awards and to provide funds for specific capital projects. Donations are received predominantly from current and former parents and from Old Hawthornians.

The Hawthorns Foundation
Designation of fund
Capital projects fund
Total fund
Balance
At 1 Sep 24
£
25,000
25,000
25,000
Income
£
-
-
-
Expenditure
£
-
-
-
Transfers
£
-
-
-
Balance
At 31 Jul 25
£
25,000
25,000
25,000

The School contributed £Nil (2024: £Nil) towards the running costs of The Hawthorns Foundation.

17 Unrestricted Fund

The Group
The Company
Balance
At 1 Sep 24
£
7,051,599
7,013,349
Income
£
8,381,082
8,381,082
Expenditure
£
(7,878,240)
(7,878,240)
Transfers
£
-
-
Balance
At 31 Jul 25
£
7,554,441
7,516,191

Designated funds represents funds allocated by the Governors for roof repairs. Transfers represent the amounts spent during the period.

24

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

18 Analysis of net assets between funds of the Group

Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
At 31 July 2025
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
At 31 August 2024
Unrestricted
funds
£
9,694,183
4,358,010
(3,980,173)
(2,517,579)
7,554,441
Unrestricted
funds
£
9,834,998
3,771,173
(3,652,997)
(2,901,575)
7,051,599
Restricted
funds
£
-
25,000
-
-
25,000
Restricted
funds
£
-
25,000
-
-
25,000
Total
2025
£
9,694,183
4,383,010
(3,980,173)
(2,517,579)
7,579,441
Total
2024
£
9,834,998
3,796,173
(3,652,997)
(2,901,575)
7,076,599

19 Operating leases

Total lease commitments for assets held under operating leases were as follows:

Payable within one year
Payable between two and five years
2025
£
3,197
238,276
241,473
2024
£
72,873
193,773
266,646

20 Governors' remuneration, reimbursement of expenses and interest in contracts

No remuneration was provided to any Governors during the period. No Governors were reimbursed travel expenditure during the period (2024: £Nil).

Mr B J C Dyer, the former Chair of Governors, was a director of Bradley Dyer Raw Limited which provides advertising production services amounting to £6,997 (2024: £11,772) to the Hawthorns School. These services are provided at preferential rates.

21 Pension costs

The School participates in the Teachers' Pension Scheme (The TPS) for its teaching staff. The pension charge for the period includes contributions payable to the TPS of £419,030 (2024: £479,046) and at the period end £Nil (2024: £Nil) was accrued in respect of contributions to the Scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pension Regulations 2010 (as amended) and The Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

25

The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS

Period Ended 31 July 2025

21 Pension costs (Continued)

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the "greater value" benefits for groups of relevant members.

The employer contribution rate for the TPS is 28.6% and employers are also required to pay a scheme administration levy of 0.08% giving a total employers contribution rate of 28.68%. With effect from 1 September 2024, participants in the TPS are required to take a 3.5% salary cut to remain in the Scheme so that the increase in employer contributions is cost neutral to the School, or alternatively move to the defined contribution scheme as described below.

The School also operates a defined contribution pension scheme for non TPS staff. The pension charge for the period includes contributions payable to this scheme of £217,915 (2024: £249,632) and at the period end £Nil (2024: £Nil) was accrued in respect of contributions to this scheme. Teachers that joined the school from September 2022 are part of this scheme, as the school introduced a phased withdrawal from the Teachers' Pension Scheme.

22 Ultimate controlling party

The sole member of the charitable company The Hawthorns Educational Trust Limited is Caterham School, the ultimate controlling company. Caterham School's registered office is Harestone Valley Road, Caterham, Surrey CR3 6YA, company registration number 5410210 and charity registration number 1109508. Caterham School prepares consolidated accounts which includes The Hawthorns Educational Trust Limited.

23 Capital commitments

Amounts contracted for but not provided for in the financial statements amount to £Nil plus VAT (2024: £51,253 plus VAT).

26